目 錄 CONTENTS | 財務摘要 | Financial Highlights | 1 | | --- | --- | --- | | 管理層之論述及分析 | Management Discussion and Analysis | 2 | | 中期財務資料的審閱報告 | Report on Review of Interim Financial Information | 30 | | 合併利潤表 | Consolidated Income Statement | 32 | | 合併綜合收益表 | Consolidated Statement of Comprehensive Income | 33 | | 合併資產負債表 | Consolidated Balance Sheet | 34 | | 合併現金流量表 | Consolidated Cash Flow Statement | 36 | | 合併權益變動表 | Consolidated Statement of Changes in Equity | 38 | | 未經審核簡明合併 | Notes to the Unaudited Conde ...

[Company Information](index=3&type=section&id=Company%20Information) This section provides essential corporate details, including board composition, office locations, share registrars, key personnel, and listing information [Board of Directors](index=3&type=section&id=Board%20of%20Directors) This chapter lists the company's board members, including executive and independent non-executive directors, and the chairs of the audit, remuneration, and nomination committees - The Board of Directors includes executive directors Kang Jingwei (CEO and Chairman), Hu Linxiang (CFO), Guo Lihua, and independent non-executive directors Ye Xin, Ma Qiyuan, and Hao Chunyi[7](index=7&type=chunk)[8](index=8&type=chunk) - The Audit Committee is chaired by Hao Chunyi, the Remuneration Committee by Ma Qiyuan, and the Nomination Committee by Ye Xin[7](index=7&type=chunk)[8](index=8&type=chunk) [Registered Office and Principal Places of Business](index=3&type=section&id=Registered%20Office%20and%20Principal%20Places%20of%20Business) This chapter provides the company's registered office address in the Cayman Islands and its principal places of business in Shenzhen, China, and Hong Kong - The registered office is located at Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman KY1-1111, Cayman Islands[7](index=7&type=chunk)[8](index=8&type=chunk) - The principal place of business in China is on the 11th Floor, Microsoft Kexun Building, No. 55 Gaoxin South 9th Road, Nanshan District, Shenzhen[10](index=10&type=chunk) - The principal place of business in Hong Kong is Unit D, 6th Floor, Block 2, Tins Centre, No. 3 Hung Cheung Road, Tuen Mun, New Territories[10](index=10&type=chunk) [Share Registrar and Hong Kong Share Registrar](index=4&type=section&id=Share%20Registrar%20and%20Hong%20Kong%20Share%20Registrar) This chapter specifies the company's principal share registrar in the Cayman Islands and its Hong Kong share registrar - The principal share registrar is Conyers Trust Company (Cayman) Limited[10](index=10&type=chunk)[11](index=11&type=chunk) - The Hong Kong share registrar is Computershare Hong Kong Investor Services Limited[12](index=12&type=chunk)[13](index=13&type=chunk) [Company Secretary, Authorized Representatives, Auditor, Legal Advisers and Principal Bankers](index=4&type=section&id=Company%20Secretary%2C%20Authorized%20Representatives%2C%20Auditor%2C%20Legal%20Advisers%20and%20Principal%20Bankers) This chapter provides information on the company's key functional personnel and external partners, including the company secretary, authorized representatives, auditor, legal advisers, and principal bankers - The Company Secretary is Hu Linxiang, and the Authorized Representatives are Kang Jingwei and Hu Linxiang[10](index=10&type=chunk)[11](index=11&type=chunk) - The Auditor is Shinewing (HK) CPA Limited[10](index=10&type=chunk)[11](index=11&type=chunk) - Legal Advisers include Skadden, Arps, Slate, Meagher & Flom (Hong Kong and US law), AnJie Broad Law Firm (PRC law), and Conyers Dill & Pearman (Cayman) Limited (Cayman Islands law)[12](index=12&type=chunk) - Principal Bankers include Bank of China (Hong Kong) Limited and Standard Chartered Bank (Hong Kong) Limited[12](index=12&type=chunk) [Listing Information and Company Website](index=5&type=section&id=Listing%20Information%20and%20Company%20Website) This chapter provides the company's listing information and official website address - The company's stock code is **00400**, listed on the Stock Exchange[13](index=13&type=chunk) - The company's website is www.ingdangroup.com[13](index=13&type=chunk) [Executive Summary](index=6&type=section&id=Executive%20Summary) This section provides a high-level overview of the company's key financial and operational highlights [Financial Performance Summary](index=6&type=section&id=Financial%20Performance%20Summary) This chapter outlines the company's key financial performance in H1 2025 compared to the same period in 2024, showing significant growth in revenue, gross profit, operating profit, profit for the period, and earnings per share Financial Performance (RMB million) | Indicator | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 6,676.5 | 4,321.4 | 54.5% | | Gross Profit | 585.9 | 457.6 | 28.0% | | Operating Profit | 275.6 | 228.2 | 20.8% | | Profit for the Period | 190.0 | 169.1 | 12.4% | | Profit Attributable to Equity Holders of the Company | 132.1 | 112.7 | 17.2% | | Earnings Per Share (Basic) | 0.086 | 0.082 | 4.9% | | Earnings Per Share (Diluted) | 0.086 | 0.082 | 4.9% | [Management Discussion and Analysis](index=7&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an in-depth analysis of the group's business operations, financial performance, and future strategic direction [Business Review and Outlook](index=7&type=section&id=Business%20Review%20and%20Outlook) This section reviews the Group's overall business and financial performance in AI chips and AIoT, highlighting AI-driven market opportunities and the Group's strategy for integrating AI chip resources, providing application solutions, deepening internal AI operations, and building a unique business closed-loop. It also outlines future development goals through solution-driven innovation, transaction-driven value, and data-driven future - The Group is positioned as an application solution platform group with AI chips as its foundation, with core businesses being Cogobuy Technology (a technical service platform for the chip industry) and IngDan Technology (a platform providing AIoT technology and services)[15](index=15&type=chunk)[16](index=16&type=chunk) - The rapid penetration of AI applications is the core driver of global chip market growth, with generative AI, large models, and multimodal applications accelerating commercialization, leading to a significant increase in demand for high-performance GPUs, AI accelerators, and advanced memory chips in data centers[19](index=19&type=chunk)[21](index=21&type=chunk) - WSTS has revised its forecast for the 2025 global chip market size upwards to **USD728 billion** (a **15.4% year-on-year increase**), with a further **9.9% growth to USD800 billion** expected in 2026[19](index=19&type=chunk)[22](index=22&type=chunk) [Overall Business and Financial Performance of the Group](index=7&type=section&id=Overall%20Business%20and%20Financial%20Performance%20of%20the%20Group) The Group achieved significant revenue and profit growth during the reporting period, driven by strong demand for AI computing power and the gradual recovery of certain markets, particularly in AI chip-related industries - Revenue growth: Revenue for the reporting period was approximately **RMB6,676.5 million**, a **54.5% increase** compared to the same period in 2024[15](index=15&type=chunk)[17](index=17&type=chunk) - Profit growth: Gross profit was approximately **RMB585.9 million** (a **28.0% year-on-year increase**), operating profit was approximately **RMB275.6 million** (a **20.8% year-on-year increase**), and profit after tax was approximately **RMB190.0 million** (a **12.4% year-on-year increase**)[15](index=15&type=chunk)[17](index=17&type=chunk) [Market Environment and Group Strategy](index=8&type=section&id=Market%20Environment%20and%20Group%20Strategy) The global chip market is driven by the rapid penetration of AI applications, with strong demand in cloud computing and AI edge applications. The Group precisely seizes opportunities across the entire chain from AI computing infrastructure to smart terminal applications, building a unique business closed-loop and competitive barrier by integrating AI chip resources, providing efficient application solutions, and intelligent internal operations - Global chip market size: In H1 2025, the global chip market reached **USD346 billion**, a **18.9% year-on-year increase**, with AI-related demand being a significant contributor[19](index=19&type=chunk)[21](index=21&type=chunk) - Group's strategic advantages: Integrates top global AI chip resources, building an AI computing hardware library covering mainstream domestic and international manufacturers, forming a significant supply chain advantage[20](index=20&type=chunk)[23](index=23&type=chunk) - Value leap: Achieved a value leap from "chip selection" to "chip application," providing "out-of-the-box" core technology modules, significantly shortening customer R&D cycles[25](index=25&type=chunk)[27](index=27&type=chunk) - Unique business closed-loop: Built a business closed-loop from "chip trading" to "technology integration," providing efficient supply chain services, in-depth technical solutions, and customized products, strengthening customer stickiness[26](index=26&type=chunk)[29](index=29&type=chunk) [Cogobuy Technology Business](index=10&type=section&id=Cogobuy%20Technology%20Business) Cogobuy Technology, as a core supplier in the AI computing power supply chain, distributes products from over 80 chip original manufacturers and provides chip application technical solutions and supply chain management services. Through self-developed AI technology and intellectual property, it enhances product performance and operational efficiency. Shenzhen Cogobuy's A-share listing guidance application has been accepted, which is expected to bring long-term growth to the Group - Core business: As a core supplier in the AI computing power supply chain, serving numerous AI application fields including computing centers, data centers, and AI servers[31](index=31&type=chunk)[33](index=33&type=chunk) - Distributed products: Distributes products from over **80 core chip companies**, including internationally renowned original manufacturers such as Nvidia, AMD-Xilinx, Intel, and many domestic chip original manufacturers[31](index=31&type=chunk)[33](index=33&type=chunk) - Technological advantages: Possesses multiple independent intellectual property rights, including intelligent algorithm libraries, industry-specific large models, and intelligent hardware design platforms, providing intelligent and automated comprehensive solutions[32](index=32&type=chunk)[35](index=35&type=chunk) - Shenzhen Cogobuy A-share listing: Shenzhen Cogobuy's application for A-share pre-listing guidance has been accepted by the Shenzhen Securities Regulatory Bureau of the China Securities Regulatory Commission, which is expected to bring long-term growth to the Group's business[37](index=37&type=chunk)[39](index=39&type=chunk) [IngDan Technology Business](index=11&type=section&id=IngDan%20Technology%20Business) IngDan Technology focuses on AI servers and the new energy industry, collaborating with Huawei to launch the DeepSeek all-in-one machine, meeting the domestic demand for high-performance AI computing in research institutions. Simultaneously, it actively develops the two-wheeler battery swapping and cascade utilization industry, building a full lifecycle management platform for lithium batteries. The IngDan Industry Academy has trained over 8,000 chip application engineers, contributing to industry talent development and technology promotion - AI server business: Aligns with the domestic substitution strategy, deeply collaborates with Huawei, and leverages the Ascend 910 chip to launch the DeepSeek all-in-one machine, addressing the core computing needs of research customers[38](index=38&type=chunk)[40](index=40&type=chunk) - New energy industry layout: Focuses on the two-wheeler battery swapping and cascade utilization industry, building a full lifecycle data traceability and trusted asset management platform for lithium batteries, providing customized solutions[38](index=38&type=chunk)[41](index=41&type=chunk) - IngDan Industry Academy: Introduces leading global chip application technology, provides technical services and talent training, and has cultivated over **8,000 chip application engineers**, promoting Shenzhen as a center for the chip application industry[44](index=44&type=chunk)[47](index=47&type=chunk) [Future Prospects](index=12&type=section&id=Future%20Prospects) The Group will continue to deepen its strategic goals of "solution-driven innovation and transaction-driven value," upgrading its positioning from "industry connector" to "technology enabler." In the future, it will achieve sustainable growth by optimizing standardized and customized solutions, strengthening the "infrastructure + value-added services" dual engine, leveraging data to build a long-term moat, accelerating AI industry chain expansion, enhancing IngDan Technology's revenue streams, developing an electronic manufacturing ecosystem, increasing customer loyalty, and actively seeking strategic partners and acquisition opportunities - Long-term strategic goal: Steadfastly execute "solution-driven innovation, transaction-driven value," comprehensively advancing the positioning upgrade from "industry connector" to "technology enabler"[45](index=45&type=chunk)[48](index=48&type=chunk) [I. Solution-Driven Innovation: Precisely Addressing Customer Needs](index=12&type=section&id=I.%20Solution-Driven%20Innovation%3A%20Precisely%20Addressing%20Customer%20Needs) The Group will drive business growth by continuously optimizing "standardized solutions" to quickly respond to market demands and deepening self-developed "customized solutions" to establish long-term partnerships with high-growth enterprises, balancing market breadth and customer depth - Dual-track strategy: Optimize "standardized solutions" to respond to market demand, and deepen "customized solutions" in cooperation with high-growth enterprises, balancing market breadth and customer depth[46](index=46&type=chunk)[49](index=49&type=chunk) [II. Transaction-Driven Value: Building a Foundation for Growth](index=13&type=section&id=II.%20Transaction-Driven%20Value%3A%20Building%20a%20Foundation%20for%20Growth) The Group will enhance the conversion efficiency from front-end solutions to actual transactions through a "infrastructure + value-added services" dual engine, accumulating industry and customer data, optimizing product and service design, and consolidating its position as a technology integration platform, laying the foundation for sustainable profitability and stable cash flow - Dual-engine drive: Continuously improve the conversion efficiency from front-end solutions to actual transactions, accumulate industry and customer data, and optimize product and service design[51](index=51&type=chunk)[54](index=54&type=chunk) - Strategic upgrade: Consolidate the strategic upgrade from a chip trading platform to a technology integration platform, laying the foundation for a sustainable profit model and stable cash flow[51](index=51&type=chunk)[54](index=54&type=chunk) [III. Data for Future Success: Building a Long-Term Moat](index=13&type=section&id=III.%20Data%20for%20Future%20Success%3A%20Building%20a%20Long-Term%20Moat) The Group will deepen the self-reinforcing cycle of "ecosystem-data-creation-empowerment" through continuous business expansion and data accumulation, achieving two-way data empowerment to enhance customer efficiency and innovation, and providing market feedback to upstream original manufacturers, thereby building a strong moat - Core competitiveness: No longer limited to single business gross margin, but rather the systemic advantages brought by an efficient "customer acquisition-retention-conversion" closed-loop[52](index=52&type=chunk)[55](index=55&type=chunk) - Two-way data empowerment: Downstream, it helps customers improve efficiency and innovation; upstream, it provides feedback to original manufacturers for a more accurate grasp of market trends and customer needs[52](index=52&type=chunk)[55](index=55&type=chunk) - AI industry chain expansion: Accelerate the expansion of the AI industry chain, with Cogobuy Technology enhancing chip application solution design, and IngDan Technology leveraging big data analysis to accelerate the implementation of AI product applications[53](index=53&type=chunk)[56](index=56&type=chunk) [IV. Enhancing IngDan Technology's Revenue Streams](index=14&type=section&id=IV.%20Enhancing%20IngDan%20Technology%27s%20Revenue%20Streams) IngDan Technology will seize the demand for domestic computing power in the scientific research field, deeply cultivate niche markets, provide high-performance hardware, localized solutions, and full-lifecycle technical maintenance, building an integrated "hardware + software + service" closed-loop. In the short term, it aims to seize market opportunities; in the medium term, expand into the enterprise market; and in the long term, participate in joint R&D. It will also actively develop new energy smart battery cloud business and an iPaaS technology integration platform to serve the AIoT "chip-device-cloud" industry chain - Entry into scientific research market: Seize the demand for domestic computing power in the scientific research field, provide high-performance hardware, localized solutions, and full-lifecycle technical maintenance, building an integrated "hardware + software + service" closed-loop[58](index=58&type=chunk)[60](index=60&type=chunk) - New energy smart battery cloud: Actively focus on the new energy smart battery cloud business, with a key focus on two-wheeler battery cloud services[58](index=58&type=chunk)[61](index=61&type=chunk) - iPaaS platform: Build an iPaaS technology integration platform to serve the AIoT "chip-device-cloud" industry chain, focusing on five major smart hardware fields such as smart cars and digital infrastructure[58](index=58&type=chunk)[61](index=61&type=chunk) - "Chip-device-cloud" industry closed-loop: Cogobuy Technology serves the "chip" segment, while IngDan Technology focuses on "device" and "cloud" services, utilizing big data analysis to provide customized solutions[59](index=59&type=chunk)[62](index=62&type=chunk) [V. Fostering an Ecosystem Serving the Electronics Manufacturing Value Chain](index=15&type=section&id=V.%20Fostering%20an%20Ecosystem%20Serving%20the%20Electronics%20Manufacturing%20Value%20Chain) The Group plans to develop an open, collaborative, and prosperous electronic manufacturing ecosystem by expanding value-added services such as supply chain finance, insurance, and cloud computing, and by leveraging customer and supplier data to provide data-driven services, thereby attracting and retaining customers and driving its long-term business growth - Ecosystem development: Develop an open, collaborative, and prosperous electronic manufacturing ecosystem, expanding into supply chain finance, insurance, and cloud computing services[64](index=64&type=chunk)[67](index=67&type=chunk) - Data monetization: Monetize customer and supplier data to provide marketing, sales, product customization, fulfillment management, and third-party data services[64](index=64&type=chunk)[68](index=68&type=chunk) [VI. Further Enhancing Customer Loyalty and Increasing Per-Customer Purchase Volume](index=15&type=section&id=VI.%20Further%20Enhancing%20Customer%20Loyalty%20and%20Increasing%20Per-Customer%20Purchase%20Volume) The Group will utilize advanced market analysis tools to optimize online and offline platforms, continuously collect and analyze customer data and feedback, provide customized content and product recommendations, and develop new supporting services, enhancing customer service, order fulfillment, and delivery capabilities to increase repeat purchases from new customers and gain deeper insights into customer needs - Enhance customer loyalty: Utilize advanced market analysis tools to provide more efficient and suitable online and offline platforms[65](index=65&type=chunk)[69](index=69&type=chunk) - Customized services: Continuously collect and analyze customer data and feedback, recommend suitable products, or develop customized new products[65](index=65&type=chunk)[69](index=69&type=chunk) - New supporting services: Invest resources to enhance customer service, order fulfillment, and delivery capabilities, improving service reliability and shortening customer response times[71](index=71&type=chunk)[73](index=73&type=chunk) [VII. Advancing Strategic Partnerships and Acquisition Opportunities](index=16&type=section&id=VII.%20Advancing%20Strategic%20Partnerships%20and%20Acquisition%20Opportunities) The Group plans to expand its business through strategic partnerships and acquisitions, investing in, collaborating with, or acquiring enterprises with development potential to optimize business operations, expand its user and revenue base, broaden its geographical footprint, enhance its product and service portfolio, improve technological infrastructure, and strengthen its talent pool, thereby conquering different market segments, enhancing market advantage, and seizing new growth opportunities brought by AI - External expansion: Expand business through strategic partnerships and acquisitions, identifying enterprises with development potential for investment, collaboration, or acquisition[72](index=72&type=chunk)[74](index=74&type=chunk) - Diversified business: Optimize business operations, expand user and revenue base, broaden geographical footprint, enhance product and service portfolio, and conquer different market segments[72](index=72&type=chunk)[74](index=74&type=chunk) [Financial Review](index=17&type=section&id=Financial%20Review) This section provides a detailed review of the Group's financial performance in H1 2025 compared to H1 2024, covering key financial indicators such as revenue, costs, profits, various expenses, taxes, liquidity, capital expenditure, net gearing ratio, and material investments and contingent liabilities [Comparison of H1 2025 with H1 2024](index=17&type=section&id=Comparison%20of%20H1%202025%20with%20H1%202024) The Group achieved overall growth in operating profit, profit for the period, and profit attributable to equity holders of the Company in H1 2025, reflecting business expansion and improved profitability - Operating profit: Approximately **RMB275.6 million**, an increase of approximately **RMB47.4 million** (**20.8%**) year-on-year[81](index=81&type=chunk)[85](index=85&type=chunk) - Profit for the period: Approximately **RMB190.0 million**, an increase of approximately **RMB20.9 million** (**12.4%**) year-on-year[81](index=81&type=chunk)[85](index=85&type=chunk) - Profit attributable to equity holders of the Company: Approximately **RMB132.1 million**, an increase of approximately **RMB19.4 million** (**17.2%**) year-on-year[81](index=81&type=chunk)[85](index=85&type=chunk) [Revenue](index=18&type=section&id=Revenue) The Group's revenue significantly increased during the reporting period, primarily due to increased demand for chips in AI technology-related industries and the gradual recovery of markets for storage and memory module products - Total revenue: Approximately **RMB6,676.5 million**, an increase of approximately **RMB2,355.1 million** (**54.5%**) year-on-year[82](index=82&type=chunk)[86](index=86&type=chunk) - Revenue composition: Includes sales of ICs, other electronic components, AIoT products, and self-developed and semiconductor products of approximately **RMB6,653.4 million**, and revenue from Gravity Financial Services of approximately **RMB23.1 million**[82](index=82&type=chunk)[86](index=86&type=chunk) [Cost of Sales](index=18&type=section&id=Cost%20of%20Sales) Cost of sales increased proportionally with revenue, reflecting the expansion of business volume - Total cost of sales: Approximately **RMB6,090.6 million**, a year-on-year increase of approximately **57.6%**[83](index=83&type=chunk)[87](index=87&type=chunk) [Gross Profit](index=18&type=section&id=Gross%20Profit) The Group's gross profit increased due to revenue growth, but the gross profit margin slightly decreased due to changes in customer mix (higher proportion of sales to large customers) - Total gross profit: Approximately **RMB585.9 million**, a year-on-year increase of approximately **28.0%**[84](index=84&type=chunk)[88](index=88&type=chunk) - Gross profit margin: **8.8%** in H1 2025, compared to **10.6%** in H1 2024, primarily due to changes in customer mix resulting from a higher proportion of sales to large customers[84](index=84&type=chunk)[88](index=88&type=chunk) [Other Income, Gains and Losses](index=19&type=section&id=Other%20Income%2C%20Gains%20and%20Losses) Other income significantly increased, primarily due to an increase in government grants - Total other income: Approximately **RMB14.2 million**, a year-on-year increase of approximately **RMB6.0 million** (**73.2%**)[90](index=90&type=chunk)[94](index=94&type=chunk) - Government grants: Recorded approximately **RMB4.7 million** in government grants in H1 2025, compared to approximately **RMB0.8 million** in H1 2024[90](index=90&type=chunk)[94](index=94&type=chunk) [Selling and Distribution Expenses](index=19&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and distribution expenses increased due to higher sales volume and new customer acquisition activities - Total selling and distribution expenses: Approximately **RMB106.8 million**, a year-on-year increase of approximately **RMB11.4 million** (**12.0%**)[91](index=91&type=chunk)[95](index=95&type=chunk) - Reasons for increase: Primarily due to increased logistics and warehousing costs, and marketing and promotional activities to acquire new customers[91](index=91&type=chunk)[95](index=95&type=chunk) [Research and Development Expenses](index=19&type=section&id=Research%20and%20Development%20Expenses) Research and development expenses continued to increase, reflecting the Group's investment in IC chip distribution, AIoT products, and customized technical solutions for self-developed products - Total R&D expenses: Approximately **RMB47.5 million**, a year-on-year increase of approximately **RMB3.9 million** (**8.9%**)[92](index=92&type=chunk)[96](index=96&type=chunk) - Areas of investment: Primarily for IC chip distribution and application design R&D, AIoT products and technology, and customized technical solutions for self-developed products[92](index=92&type=chunk)[96](index=96&type=chunk) [Administrative and Other Operating Expenses](index=19&type=section&id=Administrative%20and%20Other%20Operating%20Expenses) Administrative and other operating expenses significantly increased, primarily due to higher net exchange losses and other operating expenses resulting from business expansion - Total administrative and other operating expenses: Approximately **RMB170.2 million**, a year-on-year increase of approximately **RMB71.6 million** (**72.6%**)[93](index=93&type=chunk)[97](index=97&type=chunk) - Reasons for increase: Primarily due to increased net exchange losses and other operating expenses such as insurance, office, and travel costs due to business expansion[93](index=93&type=chunk)[97](index=97&type=chunk) [Income Tax](index=20&type=section&id=Income%20Tax) Income tax expense significantly increased, primarily due to higher profit before tax and an increased effective tax rate resulting from a higher proportion of profit contributed by Hong Kong and PRC subsidiaries - Total income tax expense: Approximately **RMB28.6 million**, a year-on-year increase of approximately **RMB19.1 million** (**201.1%**)[99](index=99&type=chunk)[102](index=102&type=chunk) - Effective tax rate: **13.1%** in H1 2025, compared to **5.3%** in H1 2024, primarily due to a higher proportion of profit contributed by Hong Kong and PRC subsidiaries relative to tax-exempt profit from PRC subsidiaries[99](index=99&type=chunk)[102](index=102&type=chunk) [Profit Attributable to Equity Holders of the Company for the Reporting Period](index=20&type=section&id=Profit%20Attributable%20to%20Equity%20Holders%20of%20the%20Company%20for%20the%20Reporting%20Period) Profit attributable to equity holders of the Company increased due to higher operating profit, partially offset by increased income tax expense - Profit attributable to equity holders of the Company: Approximately **RMB132.1 million**, a year-on-year increase of approximately **RMB19.4 million** (**17.2%**)[100](index=100&type=chunk)[103](index=103&type=chunk) [Liquidity and Capital Resources](index=20&type=section&id=Liquidity%20and%20Capital%20Resources) Both the Group's current assets and liabilities increased, with the current ratio slightly decreasing but remaining at a healthy level. Redemption of financial liabilities was exercised by some investors on December 31, 2024 - Current assets: Approximately **RMB9,260.0 million**, primarily comprising cash and bank balances, inventories, and trade and other receivables[101](index=101&type=chunk)[104](index=104&type=chunk) - Current liabilities: Approximately **RMB6,881.8 million**, primarily comprising bank borrowings and trade and other payables[101](index=101&type=chunk)[104](index=104&type=chunk) - Current ratio: **1.35** as of June 30, 2025, a **4.3% decrease** from **1.41** as of December 31, 2024[101](index=101&type=chunk)[104](index=104&type=chunk) - Redeemable financial liabilities: The redemption right was exercised by certain investors on December 31, 2024, with the present value of redeemable financial liabilities being **RMB513.2 million**[105](index=105&type=chunk)[110](index=110&type=chunk) [Capital Expenditure](index=21&type=section&id=Capital%20Expenditure) Capital expenditure significantly increased, primarily due to additions to property, plant and equipment, and intangible assets acquired for self-developed product R&D - Total capital expenditure: Approximately **RMB15.9 million**, a year-on-year increase of approximately **RMB15.3 million**[107](index=107&type=chunk)[112](index=112&type=chunk) - Reasons for increase: Primarily due to a year-on-year increase in additions to property, plant and equipment, and intangible assets acquired for self-developed product R&D[107](index=107&type=chunk)[112](index=112&type=chunk) [Net Gearing Ratio](index=21&type=section&id=Net%20Gearing%20Ratio) The Group's net gearing ratio decreased, primarily due to an increase in equity from share issuance and profit, as well as an increase in cash and cash equivalents, partially offset by an increase in bank borrowings - Net gearing ratio: Approximately **23.4%** as of June 30, 2025, a decrease from **27.8%** as of December 31, 2024[108](index=108&type=chunk)[113](index=113&type=chunk) - Reasons for decrease: Primarily due to an increase in total equity from share issuance and profit, and an increase in cash and cash equivalents[108](index=108&type=chunk)[113](index=113&type=chunk) [Material Investments](index=21&type=section&id=Material%20Investments) The Group did not make any material investments during the reporting period - No material investments: The Group did not make any material investments during the reporting period[109](index=109&type=chunk)[114](index=114&type=chunk) [Material Acquisitions and Disposals](index=22&type=section&id=Material%20Acquisitions%20and%20Disposals) Except as disclosed in this report, the Group did not undertake any material acquisitions or disposals during the reporting period - No material acquisitions or disposals: Except as disclosed in this report, the Group did not undertake any material acquisitions or disposals during the reporting period[116](index=116&type=chunk)[120](index=120&type=chunk) [Plans for Material Investments and Capital Assets in the Future](index=22&type=section&id=Plans%20for%20Material%20Investments%20and%20Capital%20Assets%20in%20the%20Future) Shenzhen Cogobuy's A-share pre-listing guidance application has been accepted, which is expected to have a long-term impact on the Group's business, though its financial data may differ from the Group's consolidated financial statements - Shenzhen Cogobuy A-share listing guidance: Shenzhen Cogobuy's application for A-share pre-listing guidance was accepted for filing on **March 26, 2025**[117](index=117&type=chunk)[121](index=121&type=chunk) - Equity and consolidation: The Group currently holds approximately **72.42%** equity in Shenzhen Cogobuy, and its results will continue to be consolidated into the Group's consolidated financial statements[117](index=117&type=chunk)[123](index=123&type=chunk) [Pledged Assets](index=22&type=section&id=Pledged%20Assets) The Group only has pledged bank deposits as collateral for credit facilities, with no other pledged assets - Pledged bank deposits: Approximately **RMB722.9 million** as of June 30, 2025 (December 31, 2024: approximately **RMB231.5 million**), pledged as collateral for credit facilities from several banks in Hong Kong and China[118](index=118&type=chunk)[124](index=124&type=chunk) [Contingent Liabilities](index=22&type=section&id=Contingent%20Liabilities) Neither the Group nor the Company had any material contingent liabilities at the end of the reporting period - No material contingent liabilities: Neither the Group nor the Company had any material contingent liabilities as of June 30, 2025[119](index=119&type=chunk)[125](index=125&type=chunk) [Exchange Rate Risk](index=23&type=section&id=Exchange%20Rate%20Risk) The Group's foreign currency transactions are translated at exchange rates on the transaction date, and monetary assets and liabilities are translated at exchange rates at the end of the reporting period, with exchange differences recognized in profit or loss or other comprehensive income. Group management closely monitors foreign exchange risk and will consider hedging when necessary - Exchange rate policy: Foreign currency transactions are translated at exchange rates on the transaction date, and monetary assets and liabilities are translated at exchange rates at the end of the reporting period, with exchange gains and losses recognized in profit or loss[126](index=126&type=chunk)[128](index=128&type=chunk)[130](index=130&type=chunk) - Risk management: The Group has not used derivative financial instruments to hedge foreign currency fluctuations; management closely monitors foreign exchange risk and considers hedging[126](index=126&type=chunk)[132](index=132&type=chunk) [Events After the Reporting Period](index=23&type=section&id=Events%20After%20the%20Reporting%20Period) As of the date of this interim report, no significant events affecting the Group have occurred since the end of the reporting period - No significant events: No significant events affecting the Group have occurred since the end of the six months ended June 30, 2025[127](index=127&type=chunk)[133](index=133&type=chunk) [Other Information](index=24&type=section&id=Other%20Information) This section provides additional disclosures regarding directors' and major shareholders' interests, employee information, share schemes, corporate governance, and other relevant matters [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company and its Associated Corporations](index=24&type=section&id=Directors%27%20and%20Chief%20Executive%27s%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20and%20its%20Associated%20Corporations) As of June 30, 2025, this chapter details the interests of the company's directors and chief executive in the company's shares, with Mr. Kang Jingwei holding a majority of shares through his controlled corporation, Envision Global Directors' Interests in Shares | Director Name | Nature of Interest | Number of Shares | Approximate Percentage of Equity | | :--- | :--- | :--- | :--- | | Mr. Kang | Interest in controlled corporation | 650,200,000 | 39.54% | | Mr. Kang | Beneficial owner | 1,800,000 | 0.11% | | Mr. Hu | Beneficial owner | 1,800,000 | 0.11% | | Ms. Guo | Beneficial owner | 600,000 | 0.04% | - Interest in associated corporation: Mr. Kang directly owns **100%** interest in Envision Global[139](index=139&type=chunk)[140](index=140&type=chunk) [Substantial Shareholders' Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company](index=26&type=section&id=Substantial%20Shareholders%27%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company) As of June 30, 2025, this chapter outlines the equity interests of the company's substantial shareholders, including Envision Global, Mr. Kang, Optimum Profuse Technology (HK) Limited, SHEN Bing, Total Dynamic, and Ms. Yao Substantial Shareholders' Interests in Shares | Name/Entity | Nature of Interest | Number of Shares | Approximate Percentage of Equity | | :--- | :--- | :--- | :--- | | Envision Global | Beneficial owner | 650,200,000 | 39.54% | | Mr. Kang | Interest in controlled corporation | 650,200,000 | 39.54% | | Mr. Kang | Beneficial owner | 1,800,000 | 0.11% | | Optimum Profuse Technology (HK) Limited | Beneficial owner | 250,000,000 | 15.20% | | SHEN Bing | Interest in controlled corporation | 250,000,000 | 15.20% | | Total Dynamic | Beneficial owner | 182,888,000 | 11.12% | | Ms. Yao | Interest in controlled corporation | 182,888,000 | 11.12% | [Employees and Remuneration Policy](index=27&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had 565 employees, with remuneration policies based on industry practice, education, experience, and performance, offering benefits such as pensions, training, discretionary bonuses, medical insurance, and share awards - Number of employees: As of June 30, 2025, the Group had **565 employees** (June 30, 2024: 588 employees)[152](index=152&type=chunk)[153](index=153&type=chunk) - Staff costs: Total staff costs for the six months ended June 30, 2025, were approximately **RMB88.8 million** (H1 2024: RMB74.9 million)[152](index=152&type=chunk)[155](index=155&type=chunk) - Remuneration policy: Based on industry practice, educational background, experience, and performance, offering pensions, training, discretionary bonuses, medical insurance, and share awards[152](index=152&type=chunk)[153](index=153&type=chunk) [Share Schemes](index=28&type=section&id=Share%20Schemes) The company has two Restricted Share Unit Schemes, 2014 and 2023, designed to incentivize employees. The 2014 scheme terminated in 2023 with no outstanding awards. The 2023 scheme sets a maximum number of shares that can be granted, with no new share-related restricted share units granted during the reporting period [2014 Restricted Share Unit Scheme](index=28&type=section&id=2014%20Restricted%20Share%20Unit%20Scheme) The 2014 Restricted Share Unit Scheme terminated on June 9, 2023, and as of June 30, 2025, and the date of this report, there are no outstanding share awards - Scheme termination: The 2014 Restricted Share Unit Scheme terminated on **June 9, 2023**[160](index=160&type=chunk)[161](index=161&type=chunk) - No outstanding awards: As of June 30, 2025, and the date of this report, there are no outstanding share awards[160](index=160&type=chunk)[161](index=161&type=chunk) [2023 Restricted Share Unit Scheme](index=30&type=section&id=2023%20Restricted%20Share%20Unit%20Scheme) The 2023 Restricted Share Unit Scheme was adopted on June 9, 2023, aiming to align the interests of eligible participants with those of the company and its shareholders through equity incentives. The scheme sets a maximum number of shares that can be granted, with no new share-related restricted share units granted during the reporting period, but a significant number of shares remain available for future grants - Scheme purpose: To reward, incentivize, and retain eligible participants, aligning their interests with those of the company and shareholders, contributing to the company's long-term growth[168](index=168&type=chunk)[170](index=170&type=chunk) - 2023 Restricted Share Unit Scheme limit: Not exceeding **139,426,273 shares** (representing **10%** of the total issued share capital on the adoption date)[169](index=169&type=chunk)[171](index=171&type=chunk) - Service provider sub-limit: **4,182,788 shares** (representing **3%** of the total issued share capital on the adoption date)[169](index=169&type=chunk)[172](index=172&type=chunk) - Grants during reporting period: No restricted share units involving new shares were granted during the reporting period[169](index=169&type=chunk)[173](index=173&type=chunk) - Maximum number of new shares available for issue: **139,426,273 shares** (representing **10%** of the total issued shares as of June 9, 2023)[176](index=176&type=chunk)[179](index=179&type=chunk) [Corporate Governance](index=32&type=section&id=Corporate%20Governance) The company is committed to maintaining strict corporate governance, generally complying with the Corporate Governance Code during the reporting period, except for the non-segregation of Chairman and CEO roles and the management not providing monthly updates to the Board, which the Board will continuously review and adjust as appropriate - Compliance with Corporate Governance Code: All applicable code provisions were complied with during the reporting period, except for C.2.1 (segregation of Chairman and CEO roles) and D.1.2 (management providing monthly updates)[184](index=184&type=chunk)[185](index=185&type=chunk)[186](index=186&type=chunk) - Chairman and CEO roles: Mr. Kang serves as both Chairman and CEO; the Board believes this arrangement ensures leadership consistency and efficiency and will continue to review it[185](index=185&type=chunk) - Board updates: Management provides business information to the Board quarterly and as needed, rather than monthly[186](index=186&type=chunk) [Directors' Interests in Competing Businesses](index=33&type=section&id=Directors%27%20Interests%20in%20Competing%20Businesses) During the reporting period, the Directors were not aware of any business or interest of any Director or substantial shareholder and their respective associates that competes or may compete with the Group's business or creates a conflict of interest - No competing business or conflict of interest: During the reporting period, the Directors were not aware of any business or interest of any Director or substantial shareholder and their respective associates that competes or may compete with the Group's business or creates a conflict of interest[189](index=189&type=chunk)[191](index=191&type=chunk) [Compliance with the Model Code for Securities Transactions by Directors](index=33&type=section&id=Compliance%20with%20the%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The company has adopted a Model Code to regulate securities transactions by directors and relevant employees, and all directors confirmed compliance with the code during the reporting period, with no non-compliance found among relevant employees - Compliance with Model Code: The company has adopted the Model Code, and all Directors confirmed compliance during the reporting period[190](index=190&type=chunk)[192](index=192&type=chunk) - Compliance by relevant employees: No non-compliance with the Model Code was found among relevant employees[190](index=190&type=chunk)[193](index=193&type=chunk) [Review by Audit Committee](index=33&type=section&id=Review%20by%20Audit%20Committee) The Audit Committee has reviewed the Group's unaudited interim results for the six months ended June 30, 2025, and this report, and discussed accounting policies, internal controls, and risk management with senior management and external auditors - Review scope: Reviewed the Group's unaudited interim results for the six months ended June 30, 2025, and this report[197](index=197&type=chunk)[198](index=198&type=chunk) - Discussion content: Discussed accounting policies, internal controls, and risk management with senior management and external auditors[197](index=197&type=chunk)[198](index=198&type=chunk) [Other Board Committees](index=34&type=section&id=Other%20Board%20Committees) In addition to the Audit Committee, the company has also established a Nomination Committee and a Remuneration Committee - Other committees: The company has established a Nomination Committee and a Remuneration Committee[199](index=199&type=chunk)[201](index=201&type=chunk) [Changes in Directors' Information](index=34&type=section&id=Changes%20in%20Directors%27%20Information) Ms. Guo Lihua was appointed as a member of the company's Nomination Committee on June 30, 2025 - Ms. Guo's appointment: Ms. Guo Lihua was appointed as a member of the company's Nomination Committee, effective from **June 30, 2025**[200](index=200&type=chunk)[202](index=202&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=35&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) On February 7, 2025, the company entered into a subscription agreement with Optimum Profuse Technology (HK) Limited to place 250 million new shares at HKD1.30 per share, with proceeds used for acquiring Shenzhen Cogobuy shares, redemption payments, and general working capital, which have now been fully utilized. The company and its subsidiaries did not purchase, sell, or redeem other listed securities during the reporting period - 2025 Subscription: On **February 7, 2025**, the company entered into an agreement with a subscriber to place **250,000,000 new shares** at **HKD1.30 per share**, totaling **HKD325,000,000**[203](index=203&type=chunk)[206](index=206&type=chunk) - Use of proceeds: Used for acquiring Shenzhen Cogobuy shares, redemption payments, and general working capital, and has been fully utilized[203](index=203&type=chunk)[206](index=206&type=chunk) - No other listed securities transactions: Except as disclosed above, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities on the Hong Kong Stock Exchange[204](index=204&type=chunk)[208](index=208&type=chunk) [Interim Dividend](index=35&type=section&id=Interim%20Dividend) The Board does not recommend the payment of an interim dividend for the reporting period - No interim dividend: The Board does not recommend the payment of an interim dividend for the reporting period (H1 2024: nil)[205](index=205&type=chunk)[209](index=209&type=chunk) [Material Litigation](index=36&type=section&id=Material%20Litigation) As of June 30, 2025, the company was not involved in any material litigation or arbitration, and the Directors were not aware of any outstanding or threatened material litigation or claims - No material litigation: As of June 30, 2025, the company was not involved in any material litigation or arbitration[211](index=211&type=chunk)[212](index=212&type=chunk) [Update on Non-Compliance Matters](index=36&type=section&id=Update%20on%20Non-Compliance%20Matters) As of June 30, 2025, the company had 15 lease agreements with PRC landlords that were not registered with government authorities, potentially incurring fines of up to RMB150,000. However, the Directors believe this non-compliance does not have a material impact on operations or financial position and are committed to timely rectification - Unregistered lease agreements: As of June 30, 2025, **15 lease agreements** with PRC landlords were not registered with relevant government authorities[213](index=213&type=chunk)[215](index=215&type=chunk) - Potential fines: May face fines of up to **RMB150,000**, but the Directors believe it does not constitute a material impact[213](index=213&type=chunk)[215](index=215&type=chunk)[216](index=216&type=chunk) - Commitment to rectify: The company is committed to timely rectifying all non-compliance matters and will provide updates in subsequent reports[214](index=214&type=chunk)[216](index=216&type=chunk) [Review Report on Condensed Consolidated Interim Financial Information](index=37&type=section&id=Review%20Report%20on%20Condensed%20Consolidated%20Interim%20Financial%20Information) This section presents the independent auditor's review report on the Group's condensed consolidated interim financial information [Introduction](index=37&type=section&id=Introduction) The auditor has reviewed the condensed consolidated financial statements of IngDan Innovation and its subsidiaries for the six months ended June 30, 2025, prepared in accordance with Hong Kong Accounting Standard 34 issued by the HKICPA, with the Board responsible for their preparation and presentation - Reviewed subject: Condensed consolidated financial statements of IngDan Innovation and its subsidiaries for the six months ended June 30, 2025[218](index=218&type=chunk)[219](index=219&type=chunk) - Basis of preparation: Prepared in accordance with Appendix D2 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the HKICPA[218](index=218&type=chunk)[219](index=219&type:chunk) [Scope of Review](index=38&type=section&id=Scope%20of%20Review) The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410, primarily involving inquiries and analytical procedures, with a scope narrower than an audit, thus not providing audit assurance or expressing an audit opinion - Review standard: Conducted in accordance with Hong Kong Standard on Review Engagements 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the HKICPA[222](index=222&type=chunk)[223](index=223&type=chunk) - Scope limitation: The scope of a review is substantially less than an audit, and no audit opinion is expressed[222](index=222&type=chunk)[223](index=223&type=chunk) [Conclusion](index=38&type=section&id=Conclusion) Based on the review, the auditor found no material non-compliance with Hong Kong Accounting Standard 34 in the condensed consolidated financial statements - Review conclusion: Nothing has come to the auditor's attention that causes them to believe the condensed consolidated financial statements are not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34[224](index=224&type=chunk)[225](index=225&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=39&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This statement presents the Group's unaudited consolidated profit or loss and other comprehensive income for the six months ended June 30, 2025, including revenue, cost of sales, gross profit, various expenses, finance costs, share of results of associates, income tax expense, profit for the period, and total other comprehensive income (expense), attributed to owners of the company and non-controlling interests Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (RMB thousand) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Revenue | 6,676,479 | 4,321,417 | | Cost of Sales | (6,090,611) | (3,863,822) | | Gross Profit | 585,868 | 457,595 | | Operating Profit | 275,600 | 228,200 | | Profit for the Period | 190,046 | 169,057 | | Profit Attributable to Owners of the Company | 132,075 | 112,688 | | Profit Attributable to Non-controlling Interests | 57,971 | 56,369 | | Other Comprehensive Income (Expense) for the Period | 4,698 | (373,991) | | Total Comprehensive Income (Expense) for the Period | 194,744 | (204,934) | | Earnings Per Share (Basic) | 0.086 | 0.082 | | Earnings Per Share (Diluted) | 0.086 | 0.082 | [Condensed Consolidated Statement of Financial Position](index=41&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This statement presents the Group's condensed consolidated financial position as of June 30, 2025, and December 31, 2024, including non-current assets, current assets, current liabilities, non-current liabilities, net assets, capital and reserves, and total equity Condensed Consolidated Statement of Financial Position (RMB thousand) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Non-current Assets** | | | | Property, Plant and Equipment | 23,729 | 15,600 | | Right-of-Use Assets | 105,214 | 104,904 | | Investment Properties | 192,765 | 207,347 | | Intangible Assets | 242,913 | 298,037 | | Goodwill | 607,007 | 607,007 | | Financial Assets at Fair Value Through Other Comprehensive Income | 1,205,186 | 796,786 | | Loans Receivable | 556,350 | 803,622 | | Interests in Associates | 35,780 | 33,239 | | **Current Assets** | | | | Inventories | 4,877,289 | 3,510,501 | | Trade and Other Receivables | 2,528,221 | 2,380,719 | | Pledged Bank Deposits | 722,863 | 231,458 | | Cash and Cash Equivalents | 903,915 | 608,229 | | **Current Liabilities** | | | | Trade and Other Payables | 4,155,145 | 2,475,227 | | Bank Borrowings | 2,561,178 | 1,885,882 | | **Non-current Liabilities** | | | | Other Financial Liabilities | 513,180 | 384,555 | | **Total Equity** | 4,804,429 | 4,408,884 | [Condensed Consolidated Statement of Changes in Equity](index=43&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This statement presents the Group's condensed consolidated changes in equity for the six months ended June 30, 2025, including the opening balance, profit for the period, other comprehensive income, share issuance, changes in ownership interests in subsidiaries, and share-based payment expenses, and their impact on share capital, share premium, various reserves, and non-controlling interests Condensed Consolidated Statement of Changes in Equity (RMB thousand) | Indicator | January 1, 2025 | June 30, 2025 | | :--- | :--- | :--- | | Share Capital | 1 | 1 | | Share Premium | 2,023,351 | 2,322,250 | | Capital Reserve | 18,923 | 18,923 | | Share-based Compensation Reserve | 28,567 | 28,477 | | Other Reserves | (124,607) | (154,483) | | Treasury Shares | (37,210) | (36,882) | | Exchange Fluctuation Reserve | 50,458 | 11,811 | | Statutory Reserve | 13,891 | 13,891 | | Fair Value Reserve | (1,026,512) | (975,805) | | Retained Profits | 2,899,193 | 3,031,268 | | **Total Attributable to Owners of the Company** | **3,846,055** | **4,259,451** | | Non-controlling Interests | 562,829 | 544,978 | | **Total Equity** | **4,408,884** | **4,804,429** | - Key changes during the period: Profit for the period: **RMB132,075 thousand**; Other comprehensive income for the period: **RMB12,060 thousand**; Share issuance: **RMB298,899 thousand**; Changes in ownership interests in subsidiaries: **RMB(98,336) thousand** [Condensed Consolidated Statement of Cash Flows](index=45&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This statement presents the Group's condensed consolidated cash flows for the six months ended June 30, 2025, including net cash from operating, investing, and financing activities, and the cash and cash equivalents balance at the end of the period Condensed Consolidated Statement of Cash Flows (RMB thousand) | Activity Type | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Cash From Operating Activities | 82,738 | 34,168 | | Net Cash Used in Investing Activities | (479,827) | (23,587) | | Net Cash From Financing Activities | 708,213 | 50,084 | | Net Increase in Cash and Cash Equivalents | 311,124 | 60,665 | | Cash and Cash Equivalents at End of Period | 903,915 | 503,430 | [Notes to the Condensed Consolidated Interim Financial Information](index=47&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Information) This section provides detailed notes and explanations supporting the condensed consolidated interim financial information [General Information](index=47&type=section&id=General%20Information) IngDan Innovation was incorporated in the Cayman Islands on February 1, 2012, and listed on the Hong Kong Stock Exchange on July 18, 2014. The Group primarily engages in the sale of ICs, other electronic components, AIoT products, and self-developed and semiconductor products, as well as providing financial services - Company incorporation and listing: Incorporated in the Cayman Islands on **February 1, 2012**, and listed on the Main Board of the Hong Kong Stock Exchange on **July 18, 2014**[242](index=242&type=chunk)[244](index=244&type=chunk) - Principal business: Sale of ICs, other electronic components, AIoT products, and self-developed and semiconductor products, and provision of Gravity Financial Services[243](index=243&type=chunk)[247](index=247&type=chunk) - Holding company: The immediate and ultimate holding company is Envision Global Investments Limited[242](index=242&type=chunk)[246](index=246&type=chunk) [Basis of Preparation](index=48&type=section&id=Basis%20of%20Preparation) The Group's condensed consolidated interim financial information for the six months ended June 30, 2025, has been prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the HKICPA and the disclosure requirements of Appendix D2 of the Listing Rules of the Stock Exchange - Basis of preparation: Prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" and the applicable disclosure requirements of Appendix D2 of the Listing Rules of the Stock Exchange[249](index=249&type=chunk)[252](index=252&type=chunk) [Accounting Policies](index=48&type=section&id=Accounting%20Policies) The condensed consolidated interim financial information is primarily prepared under the historical cost convention, except for certain financial assets measured at fair value. Revisions to Hong Kong Financial Reporting Standards accounting standards were first applied in this period but did not have a material impact on financial performance and position - Basis of preparation: Primarily prepared under the historical cost convention, with certain financial assets measured at fair value[250](index=250&type=chunk)[253](index=253&type=chunk) - Impact of standard revisions: Revisions to Hong Kong Financial Reporting Standards accounting standards (e.g., amendments to HKAS 21) were applied in this period but did not have a material impact on financial performance and position[251](index=251&type=chunk)[254](index=254&type=chunk) [Revenue](index=49&type=section&id=Revenue) The Group's revenue primarily derives from the sale of ICs, other electronic components, AIoT products, and self-developed and semiconductor products, as well as interest income from Gravity Financial Services. All revenue from customer contracts is recognized at a point in time and primarily originates from the China (including Hong Kong) market Revenue by Source (RMB thousand) | Revenue Source | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Sales of ICs, other electronic components, AIoT products and self-developed and semiconductor products | 6,653,438 | 4,300,831 | | Interest income from Gravity Financial Services | 23,041 | 20,586 | | **Total Revenue** | **6,676,479** | **4,321,417** | - Revenue recognition timing: All revenue from customer contracts is recognized at a point in time[259](index=259&type=chunk)[260](index=260&type=chunk)[262](index=262&type=chunk) - Geographical market: Primarily from China (including Hong Kong)[259](index=259&type=chunk)[260](index=260&type=chunk)[262](index=262&type=chunk) [Segment Information](index=52&type=section&id=Segment%20Information) The Group identifies two reportable segments: Cogobuy Technology and IngDan Technology, which manage the sales of ICs, electronic components, and AIoT products, and self-developed and semiconductor products, financial services, software licensing, and incubator businesses, respectively. Both segments showed revenue and profit growth, but unallocated corporate expenses and finance costs impacted overall profit - Segment breakdown: The Group identifies two reportable segments: Cogobuy Technology and IngDan Technology[263](index=263&type=chunk)[265](index=265&type=chunk)[266](index=266&type=chunk) - Cogobuy Technology business: Sales of ICs, other electronic components, and AIoT products[266](index=266&type=chunk) - IngDan Technology business: Sales of self-developed and semiconductor products, Gravity Financial Services, software licensing operations, and incubator businesses[266](index=266&type=chunk) [Segment Revenue and Results](index=53&type=section&id=Segment%20Revenue%20and%20Results) This chapter details the revenue and profit performance of the Cogobuy Technology and IngDan Technology segments in H1 2025, showing that both segments contributed to the Group's overall performance growth Segment Revenue and Profit (RMB thousand) | Segment | Revenue | Profit | | :--- | :--- | :--- | | Cogobuy Technology | 6,345,756 | 243,798 | | IngDan Technology | 330,723 | 102,305 | | **Total** | **6,676,479** | **346,103** | [Segment Assets and Liabilities](index=55&type=section&id=Segment%20Assets%20and%20Liabilities) This chapter analyzes the assets and liabilities of the Cogobuy Technology and IngDan Technology segments as of June 30, 2025, showing that Cogobuy Technology has significantly larger asset and liability scales than IngDan Technology Segment Assets and Liabilities (RMB thousand) | Segment | Assets | Liabilities | | :--- | :--- | :--- | | Cogobuy Technology | 7,003,828 | 4,087,051 | | IngDan Technology | 3,376,909 | 132,210 | | **Total** | **10,380,737** | **4,219,261** | [Other Income, Gains and Losses](index=57&type=section&id=Other%20Income%2C%20Gains%20and%20Losses) The Group's other income, gains, and losses significantly increased in H1 2025, primarily due to a rise in government grants Other Income, Gains and Losses (RMB thousand) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Bank interest income | 6,723 | 7,266 | | Government grants | 4,740 | 839 | | Other | 2,955 | 59 | | Loss on disposal of investment properties | (225) | — | | **Total** | **14,193** | **8,164** | [Finance Costs](index=57&type=section&id=Finance%20Costs) The Group's finance costs slightly increased in H1 2025, primarily comprising interest on bank borrowings and other financial liabilities Finance Costs (RMB thousand) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Interest on other financial liabilities | 16,331 | 19,676 | | Interest on bank borrowings | 41,040 | 37,221 | | Interest on lease liabilities | 606 | 713 | | Factoring costs | 1,492 | 279 | | **Total** | **59,469** | **57,889** | [Income Tax Expense](index=58&type=section&id=Income%20Tax%20Expense) The Group's income tax expense significantly increased in H1 2025, primarily due to higher profit before tax and an increased effective tax rate Income Tax Expense (RMB thousand) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Current tax | 32,245 | 13,298 | | Deferred tax | (3,662) | (3,770) | | **Total** | **28,583** | **9,528** | - Effective tax rate: **13.1%** in H1 2025, compared to **5.3%** in H1 2024, primarily due to a higher proportion of profit contributed by Hong Kong and PRC subsidiaries relative to tax-exempt profit from PRC subsidiaries[99](index=99&type=chunk)[102](index=102&type=chunk) [Profit for the Period](index=59&type=section&id=Profit%20for%20the%20Period) The Group's profit for the period was achieved after deducting various expenses, with amortization of intangible assets, depreciation, inventory provisions, and trade receivables loss provisions being key influencing factors Profit for the Period (RMB thousand) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Amortization of intangible assets | 60,204 | 86,773 | | Depreciation of property, plant and equipment | 224 | 383 | | Depreciation of right-of-use assets | 11,068 | 12,298 | | Depreciation of investment properties | 3,575 | 1,765 | | Net provision for inventories | 1,670 | 32,399 | | Loss provision for trade receivables | 10,895 | 7,513 | | Research and development expenses | 47,454 | 43,597 | | Amount of inventories recognized as expense | 6,030,407 | 3,795,710 | [Dividends](index=60&type=section&id=Dividends) For the six months ended June 30, 2025, the company did not pay, declare, or propose any dividends - No dividend payment: No dividends were paid, declared, or proposed for the six months ended June 30, 2025[301](index=301&type=chunk)[302](index=302&type=chunk) [Earnings Per Share](index=60&type=section&id=Earnings%20Per%20Share) The Group's basic and diluted earnings per share for the six months ended June 30, 2025, both increased, reflecting an improvement in the company's profitability Earnings Per Share (RMB thousand, except per share amount) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit attributable to owners of the Company for the period | 132,075 | 112,688 | |

Financial Performance - Revenue for the six months ended June 30, 2025, was RMB 2,677,543,000, a decrease of 24.2% compared to RMB 3,533,173,000 for the same period in 2024[11] - Gross profit for the same period was RMB 1,276,962,000, down 23.1% from RMB 1,659,959,000 year-on-year[11] - Operating profit increased significantly by 170.2% to RMB 369,356,000 from RMB 136,687,000 in the previous year[11] - The company recorded a profit of approximately RMB 274.0 million, an increase of 102.8% compared to RMB 135.1 million in the same period of 2024[35] - The company reported a net profit of RMB 273,979 thousand for the six months ended June 30, 2025, compared to RMB 135,115 thousand in 2024, marking an increase of 102.5%[53] - Basic earnings per share increased to RMB 0.13 for the six months ended June 30, 2025, up from RMB 0.06 in the same period of 2024, reflecting a 116.7% growth[104] User Metrics - Monthly average active users decreased by 16.1% to 20,185,000 from 24,045,000 in the same period last year[13] - Monthly average revenue per user declined by 9.8% to RMB 22.1 from RMB 24.5 year-on-year[13] Expenses and Cost Management - The cost of sales decreased by 25.2% to approximately RMB 1,400.6 million from RMB 1,873.2 million in the same period of 2024[22] - Selling and promotional expenses decreased by 23.2% to approximately RMB 990.2 million, accounting for 37.0% of total revenue, compared to 36.5% in the same period of 2024[26] - Administrative expenses decreased by 17.5% to approximately RMB 108.6 million from RMB 131.5 million in the same period of 2024[27] - R&D expenses decreased by 16.6% to approximately RMB 82.7 million from RMB 99.1 million in the same period of 2024[28] - Total expenses for the six months ended June 30, 2025, were RMB 2,612,519,000, compared to RMB 3,392,063,000 in 2024, indicating a reduction of about 23.0%[100] Cash Flow and Liquidity - As of June 30, 2025, the company had cash and cash equivalents of approximately RMB 1,690.2 million, down from RMB 2,195.7 million as of December 31, 2024[39] - Operating cash flow for the six months ended June 30, 2025, was RMB 39,705 thousand, a significant decrease from RMB 132,996 thousand for the same period in 2024, representing a decline of approximately 70.16%[62] - Cash and cash equivalents decreased from RMB 2,195,694 thousand at the beginning of the period to RMB 1,690,185 thousand at the end, a reduction of about 22.98%[64] Investments and Financial Assets - As of June 30, 2025, the company had total investments of RMB 1,566,273 thousand, significantly up from RMB 759,369 thousand as of December 31, 2024[41] - The company believes its investment strategy will continue to provide stable income, considering the acceptable risk levels and liquidity of the financial products[44] - The total financial assets measured at fair value reached RMB 1,391,230,000 as of June 30, 2025, compared to RMB 564,849,000 as of December 31, 2024, indicating a significant increase of 146.5%[119] - The company reported a net gain of RMB 297,206,000 from financial instruments measured at fair value, compared to a loss of RMB 18,527,000 in the previous year[101] Shareholder Information - The company’s founder, Mr. Feng You Sheng, holds 358,798,000 shares, representing approximately 18.52% of the company[142] - The company’s other founder, Mr. Hou Guang Ling, holds 80,409,000 shares, representing approximately 4.15% of the company[142] - Fantastic Live Holdings Limited and Fairy Story Holdings Limited each hold 358,798,000 shares, representing approximately 18.52% of the total shares[145] - Kunlun Group Limited holds 316,679,000 shares, accounting for 16.35% of the total shares[145] Technology and Innovation - The company aims to deepen the application of AI technology across various business scenarios and accelerate localization in overseas markets[15] - The innovative business segment, particularly short drama, has maintained a leading market position despite increasing competition[17] - The company plans to invest more in cutting-edge technologies like AI to ensure sustainable growth in the live social ecosystem[18] Regulatory and Compliance - The company has not made any provisions related to ongoing investigations by local regulatory authorities as of June 30, 2025, indicating a stable outlook despite the investigations[130] - The company has established an audit committee composed of three independent non-executive directors, which has reviewed the interim results and confirmed compliance with applicable accounting principles[186] Share Plans and Options - The company has a stock option plan approved on June 23, 2018, aimed at incentivizing employees and aligning their interests with the company[150] - A total of 60 million stock options were granted under the stock option plan, equivalent to approximately 3.1% of the total issued shares as of the reporting date[153] - The total number of shares available for grant under the 2018 Restricted Share Unit Plan is 100,778,200 shares, accounting for approximately 5.2% of the company's issued share capital as of the interim report date[161]

Financial Performance - Revenue for the first half of 2025 was RMB 777,184,000, a decrease of 3.34% compared to RMB 804,007,000 in the same period of 2024[11] - Profit before tax dropped significantly to RMB 2,663,000, down 97.56% from RMB 108,968,000 year-on-year[11] - The company reported a net loss of RMB 9,033,000 for the period, compared to a profit of RMB 92,304,000 in the previous year, marking a decline of 109.79%[11] - The equity attributable to shareholders was RMB 4,325,000, a decrease of 94.73% from RMB 82,141,000 in the same period last year[11] - The company achieved a gross profit of RMB 246.25 million for the first half of 2025, a year-on-year decrease of 31.53%[34] - The gross profit margin for industrial hazardous waste disposal services was 33.83%, down 11.76 percentage points year-on-year, primarily due to intensified market competition and a decrease in hazardous waste prices by RMB 96 per ton[34] - The company reported a pre-tax profit of RMB 2.66 million, a significant decline of RMB 106.31 million or 97.56% year-on-year[41] - Basic and diluted earnings per share were both RMB 0.24, significantly lower than RMB 4.50 in the previous year[90] - The company reported a profit of RMB 4.33 million for the six months ended June 30, 2025, compared to a loss of RMB 9.03 million attributable to non-controlling interests[95] Assets and Liabilities - Total assets as of June 30, 2025, were RMB 9,805,499,000, reflecting a slight increase of 0.57% from RMB 9,750,378,000 at the end of 2024[12] - Total liabilities increased by 1.06% to RMB 6,155,900,000 from RMB 6,091,454,000 at the end of 2024[12] - The company's total equity was RMB 3,649,599,000 as of June 30, 2025, compared to RMB 3,658,924,000 at the end of 2024[93] - Current liabilities decreased to RMB 1,985,701,000 from RMB 2,271,937,000, indicating improved liquidity[92] - Total loans and borrowings decreased to RMB 2,376,367,000 as of June 30, 2025, from RMB 3,147,865,000 as of December 31, 2024, indicating a reduction of approximately 24.5%[125] Operational Highlights - The company processed approximately 51.87 million tons of industrial hazardous waste during the reporting period, a decrease of about 5.67% year-on-year[16] - The company sold approximately 0.15 million tons of resource utilization products, an increase of about 32.70% year-on-year[16] - The company produced and sold approximately 27.51 million tons of alternative fuels, a significant increase of about 193.60% year-on-year[16] - The industrial hazardous waste disposal service generated revenue of RMB 497.55 million, a decrease of 10.93% year-on-year[32] - The general hazardous waste segment saw revenue of RMB 395.28 million, down 15.74% due to increased market competition and reduced cement production[33] - The oil sludge disposal segment reported revenue of RMB 58.31 million, an increase of 36.05% driven by growth in the Dongying project[33] - The resource comprehensive utilization segment achieved revenue of RMB 94.37 million, a significant increase of 96.24% due to the operation of new projects[33] Strategic Initiatives - The company is focusing on the strategic core of "co-processing in cement kilns + comprehensive resource utilization" to expand project development[15] - The company has strengthened production management collaboration with cement enterprises to optimize production organization and reduce operational costs[16] - The company is advancing the development of projects related to metal resource utilization and medical waste disposal[15] - The company plans to enhance its core competitiveness by focusing on environmental protection and expanding its market presence in hazardous waste treatment[27] - The company aims to strengthen its operational efficiency through cost control measures and improved management practices[28] - The company is committed to advancing its R&D capabilities in pollution control and waste treatment technologies to enhance its competitive edge[29] Cash Flow and Financing - Cash and cash equivalents at the end of the reporting period were RMB 616.03 million, an increase of RMB 267.51 million year-on-year[51] - The net cash inflow from operating activities was RMB 268.21 million, an increase of RMB 22.68 million year-on-year, attributed to improved collection of accounts receivable[53] - The total cash outflow from investing activities was RMB 184.74 million for the six months ended June 30, 2025, a decrease from RMB 338.40 million in the same period of 2024[96] - The company successfully issued RMB 1 billion in unsecured medium-term notes, with the first tranche of RMB 1.5 billion issued on August 7, 2024, and a second tranche of RMB 1 billion issued on April 25, 2025[101] - The company has unutilized bank credit facilities amounting to RMB 3.19 billion, indicating strong liquidity and financing capabilities[100] Shareholder Information - Major shareholders include Hai Luo Group with a 27.11% stake and Hai Luo Cement with a 26.35% stake[66] - The company has no treasury shares or any repurchase, sale, or redemption of its listed securities during the reporting period[75] - The board has resolved not to declare an interim dividend for the six months ending June 30, 2025[65] - The company has no knowledge of any other individuals holding shares or related interests outside of the disclosed board members and executives[71] Related Party Transactions - The company has multiple related party transactions with subsidiaries, including Anhui Conch Group and various environmental technology firms[137][138][139][140][141][142][143][144] - Major related party transactions for the six months ended June 30, 2025, included sales to Conch Cement amounting to RMB 43,353,000[145] - Trade receivables from related parties as of June 30, 2025, totaled RMB 97,674,000, an increase from RMB 82,112,000 as of December 31, 2024[146] - Trade payables to Conch Cement were RMB 55,011,000 as of June 30, 2025, down from RMB 62,425,000 as of December 31, 2024[146] Governance and Compliance - The audit committee, composed of independent non-executive directors, has reviewed the unaudited interim results for the six months ending June 30, 2025[81] - The company has adopted the corporate governance code as per the listing rules and has confirmed compliance during the reporting period[79] - The strategic, sustainable development, and risk management committee is responsible for formulating the group's medium to long-term development strategy[84] - The company has established a board diversity policy to achieve diversity among board members[83]

H股股票代碼: 2238 A股股票代碼: 601238 H Share Stock Code: 2238 A Share Stock Code: 601238 廣州汽車集團股份有限公司 中期報告 2025 Interim Report 目錄 | 3 | 第一節 | 董事長致辭 | | --- | --- | --- | | 9 | 第二節 | 公司簡介及業務概要 | | 18 | 第三節 | 經營情況的討論與分析 | | 35 | 第四節 | 重要事項 | | 58 | 第五節 | 股份變動及股東情況 | | 61 | 第六節 | 董事、監事、高級管理人員情況 | | 64 | 第七節 | 簡明合併中期財務資料 | | 110 | 第八節 | 釋義 | 廣州汽車集團股份有限公司 2025年中期報告 重要提示 2 一、 本公司董事會、監事會及董事、監事、高級管理人員保證本報告內容的真實性、準 確性、完整性，不存在虛假記載、誤導性陳述或重大遺漏，並承擔個別和連帶的法 律責任。 二、 本公司全體董事出席董事會會議。 三、 本公司簡明合併中期財務資料未經審計。本公司審計委員會已審閱本公司截至2025 年6月30日止六 ...

Financial Performance - For the first half of 2025, the company's revenue reached RMB 2,754,574,000, representing a 2.6% increase compared to RMB 2,683,873,000 in 2024[4] - The company's profit before interest, tax, depreciation, and amortization (EBITDA) increased by 39.9% to RMB 688,121,000 from RMB 491,708,000 in 2024[4] - Operating loss for the period was RMB 74,495 thousand, significantly improved from a loss of RMB 258,087 thousand in the previous year[64] - Net loss attributable to shareholders was RMB 163,861 thousand, compared to a net loss of RMB 376,494 thousand for the same period last year[64] - The company reported a basic and diluted loss per share of RMB 0.036, an improvement from RMB 0.082 in the previous year[64] - The company’s total comprehensive loss for the period was RMB 172,266 thousand, compared to RMB 401,042 thousand in the same period of 2024[64] Revenue Breakdown - Aviation business revenue totaled RMB 1,344,510,000, reflecting a 4.6% increase from RMB 1,285,649,000 in 2024[9] - Non-aeronautical business revenue amounted to RMB 1,410,064,000, a slight increase of 0.8% from RMB 1,398,224,000 in the previous year[12] - Revenue from aviation-related services amounted to RMB 1,344,510,000, compared to RMB 1,285,649,000 in 2024, indicating a growth of 4.6%[77] - Non-aviation revenue totaled RMB 1,410,064,000, slightly increasing from RMB 1,398,224,000 in the previous year, which is a growth of 0.1%[77] Operating Expenses - Operating expenses decreased by 4.2% to RMB 2,778,553,000 from RMB 2,900,362,000 in the previous year[4] - The company's aviation security and protection expenses were RMB 427,720,000, down about 2.6% year-on-year, primarily due to cost reduction measures[16] - Repair and maintenance expenses decreased by approximately 5.0% to RMB 424,844,000, attributed to enhanced cost control[17] - Financial costs for the six months ended June 30, 2025, were RMB 144,722,000, a decrease from RMB 151,012,000 in 2024, showing a reduction of 4.3%[80] Cash Flow and Liquidity - The net cash generated from operating activities in the first half of 2025 was RMB 982,758,000, significantly up from RMB 136,046,000 in the same period last year[24] - Cash and cash equivalents as of June 30, 2025, were RMB 2,716,935,000, compared to RMB 1,427,698,000 at the end of 2024[23] - The company reported a net cash increase of RMB 1,289,307,000 for the six months ended June 30, 2025, compared to RMB 1,972,578,000 in the same period of 2024[69] - The company has sufficient bank credit facilities available for daily operations and to meet financial obligations due within the next twelve months[73] Assets and Liabilities - Total assets as of June 30, 2025, amounted to RMB 31,556,376 thousand, an increase from RMB 30,675,358 thousand at the end of 2024[66] - Total liabilities rose to RMB 18,261,557 thousand from RMB 17,219,480 thousand, indicating an increase of 6.1%[67] - The company's asset-liability ratio increased to 57.87% as of June 30, 2025, compared to 56.13% at the end of 2024[24] - The total borrowings as of June 30, 2025, amounted to RMB 10,136,722,000, up from RMB 9,517,913,000 as of December 31, 2024, indicating a growth of about 6.5%[106] Shareholder Information - The total issued share capital as of June 30, 2025, was RMB 4,579,178,977, with 4,579,178,977 shares issued at a par value of RMB 1 per share[38] - The major shareholder, Capital Airport Group Co., Ltd., holds 2,699,814,977 domestic shares, representing 58.96% of the total issued shares[39] - The company has a 58.96% equity stake held by the Capital Airport Group as of June 30, 2025, consistent with the previous year[117] Corporate Governance - The Audit and Risk Management Committee, consisting of four independent non-executive directors, is responsible for overseeing the company's financial reporting and risk management[49] - The company has complied with the Corporate Governance Code, with a minor deviation regarding the attendance of non-executive directors at the annual general meeting held on June 27, 2025[51] - The company strictly adhered to the Securities Trading Code for directors and employees during the six months ending June 30, 2025[52] Management Changes - Mr. Song Kun will be appointed as the executive director and chairman of the board starting June 26, 2025[53] - Mr. Li Yongbing will become the general manager of the company starting June 30, 2025[53] - The company will no longer have a supervisory board starting August 28, 2025, following the resignation of Mr. Liu Chuncheng as supervisor and chairman of the supervisory board[55] - The board currently consists of 10 members, including 2 executive directors, 3 non-executive directors, 1 employee director, and 4 independent non-executive directors[57] Future Plans - The company plans to enhance operational efficiency and improve passenger experience in the second half of 2025[20] - The company will focus on optimizing resource allocation and maximizing value in its duty-free business[21] - The company plans to issue up to RMB 4 billion in medium-term notes and RMB 4 billion in short-term financing bonds, pending approval at the extraordinary general meeting on August 28, 2025[48] Miscellaneous - There were no significant mergers or disposals during the six-month period ending June 30, 2025[26] - The company did not conduct any purchases, sales, or redemptions of its listed securities during the same period[27] - The company has no significant investments or plans for major investments, capital assets, or significant financing as of June 30, 2025[30][31] - The company has no major litigation or arbitration cases as of June 30, 2025[36]

Financial Performance - Total revenue for the six months ended June 30, 2025, was HK$174,000,000, a decrease of 12.6% from HK$199,197,000 in the same period of 2024[17] - Gross profit for the period was HK$35,904,000, down 17.3% from HK$43,468,000 year-on-year[17] - Loss before taxation improved to HK$24,629,000, compared to a loss of HK$39,534,000 in the previous year, indicating a 37.7% reduction in losses[17] - Loss for the period was HK$22,834,000, a significant improvement from HK$40,109,000 in the same period last year, reflecting a 43.0% decrease in losses[17] - Total comprehensive expense for the period was HK$12,267,000, significantly improved from HK$48,489,000 in the previous year[19] - Basic loss per share improved to HK(8.9) cents from HK(15.8) cents year-over-year, indicating a reduction in losses per share[19] Revenue Breakdown - For the six months ended June 30, 2025, total revenue from goods and services was HK$169,206,000, a decrease of 12.3% compared to HK$193,008,000 for the same period in 2024[38] - Revenue from the Manufacturing and Sales Business was HK$157,785,000, down 11.2% from HK$177,671,000 in the previous year[38] - The Music and Entertainment Business generated revenue of HK$1,666,000, a slight decrease from HK$1,814,000 in the prior period[38] - The Trading Business reported revenue of HK$9,755,000, down 28.0% from HK$13,523,000 in the same period last year[45] - Revenue from Hong Kong decreased significantly to HK$39,149,000 from HK$70,384,000, representing a decline of 44.4%[38] - Revenue from the People's Republic of China (PRC) increased slightly to HK$90,774,000, up 2.0% from HK$88,989,000[38] Expenses and Cost Management - Selling and distribution expenses were reduced to HK$10,763,000, a decrease of 15.0% from HK$12,677,000[17] - Administrative and other expenses decreased to HK$52,740,000, down 7.8% from HK$57,078,000[17] - Interest income from lending business decreased to HK$880,000, down 62.8% from HK$2,362,000 in the previous year[17] - Interest expenses on bank borrowings increased from HK$2,202,000 to HK$2,468,000, reflecting a rise of approximately 12.1%[51] Assets and Liabilities - Non-current assets decreased slightly to HK$330,861,000 from HK$331,485,000 as of December 31, 2024[21] - Current assets totaled HK$736,045,000, a decrease from HK$745,608,000 at the end of 2024, primarily due to changes in trade and other receivables[21] - Current liabilities increased to HK$369,946,000 from HK$367,337,000, reflecting a rise in trade and other payables[24] - Total equity decreased to HK$613,523,000 from HK$625,790,000, primarily due to the losses incurred during the period[24] - The Company reported a decrease in bank borrowings to HK$104,904,000 from HK$117,251,000, reflecting a reduction in debt levels[24] Impairment and Reversals - The company reported a net reversal of impairment losses on financial assets of HK$5,046,000, compared to a minimal loss of HK$8,000 in the previous year[17] - For the six months ended June 30, 2025, the net reversal of impairment losses on trade receivables was HK$5,046,000, compared to HK$8,000 in the same period of 2024[100] Cash Flow and Financing - Net cash from operating activities was HK$19,126,000 for the six months ended June 30, 2025, a significant improvement from a net cash used of HK$2,352,000 in the same period of 2024[28] - New bank borrowings raised amounted to HK$76,228,000 for the six months ended June 30, 2025, down from HK$115,596,000 in the same period of 2024[30] - Cash and cash equivalents at the end of the period were HK$76,478,000 as of June 30, 2025, compared to HK$120,175,000 at the end of June 30, 2024[30] Property Development and Investment - The Group's management has decided to suspend further action regarding the compulsory enforcement proceedings for the Qingyuan Land due to the downturn in the property development market in the PRC since late 2023[83] - The Freeze Order on Qingyuan Land has been extended to 12 May 2028 due to Zhongqing's failure to repay the outstanding shareholder's loan[82] - The Group owns a land parcel of approximately 208,000 sq.m. in Qingyuan City, PRC, and is developing the Zhongxing Industrial Park, which includes industrial buildings, commercial buildings, apartments, and dormitories[178] - As of June 30, 2025, approximately 70% of the construction work for the Zhongxing Industrial Park has been completed, with an additional 7% expected to be completed in 2025[179] Legal and Regulatory Matters - The group has received a court extension for the freezing order until May 12, 2028, reflecting ongoing legal proceedings related to shareholder loans[85] - Legal actions have been taken against several borrowers with an aggregate principal amount of approximately HK$27.2 million, with an impairment loss of approximately HK$24.2 million already provided in previous financial years[153] Future Outlook and Strategy - The Group plans to strategically allocate financial resources among all operating segments and expand the loan portfolio prudently in response to evolving market conditions[157] - The Group is actively exploring potential business opportunities related to the Qingyuan Land and will provide updates to shareholders as appropriate[175] - The Group is expanding its sales force both in the PRC and overseas to maximize order acquisition and pursue cooperation opportunities with potential business partners abroad[165][169]

目錄 | | 重要提示 | 2 | | --- | --- | --- | | 第一節 | 釋義 | 3 | | 第二節 | 公司簡介和主要財務指標 | 6 | | 第三節 | 管理層討論與分析 | 13 | | 第四節 | 公司治理、環境和社會 | 35 | | 第五節 | 重要事項 | 39 | | 第六節 | 股份變動及股東情況 | 54 | | 第七節 | 債券相關情況 | 62 | | 第八節 | 財務報告 | 74 | 備查文件目錄 載有董事長親筆簽名的半年度報告文本； 載有法定代表人、主管會計工作負責人、會計機構負責 人簽名並蓋章的會計報表； 報告期內在《上海證券報》和《中國證券報》上公開披露過 的所有公司文件的正本及公告的原稿； 公司章程文本； 在其他證券市場披露的半年度報告。 安徽皖通高速公路股份有限公司 重要提示 無 六. 前瞻性陳述的風險聲明 本公司已在本報告中詳細描述了存在的風險事項，敬請查閱第三節「管理層討論與分析」。本報告中所涉及的 未來計劃、發展戰略等前瞻性描述不構成對投資者的承諾。敬請廣大投資者理性投資，並注意投資風險。 七. 是否存在被控股股東及其他關聯方非經營性佔用資金情況 ...

[Company Information](index=2&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) This chapter outlines the company's fundamental information, including board members, committee compositions, registered office, principal place of business in Hong Kong, legal advisors, auditors, and share registrars - Board members include Executive Directors Yang Ping (Chairman), Qin Yan (President), Liu Haiyan; Non-executive Directors Ge Lu, Li Weiwei, Zhang Junzheng, Fang Xin; and Independent Non-executive Directors Huang Desheng, Yu Handu, Yang Yuchuan, Li Boen[4](index=4&type=chunk) - Key committees are the Audit and Risk Management Committee (Chairman Yu Handu), Remuneration Committee (Chairman Huang Desheng), Nomination Committee (Chairman Yang Ping), and Environmental, Social and Governance Committee (Chairman Yang Ping)[4](index=4&type=chunk) - Auditor: KPMG[5](index=5&type=chunk) [Company Profile](index=4&type=section&id=%E5%85%AC%E5%8F%B8%E7%B0%A1%E4%BB%8B) China Resources Gas is a leading gas utility group primarily engaged in natural gas procurement, pipeline construction and operation, and integrated services, with 275 city gas projects covering 25 provinces, 20.76 billion cubic meters of gas sales, and 61.37 million customers as of H1 2025 - China Resources Gas is the urban gas distribution flagship under China Resources (Holdings) Co., Ltd., one of China's largest state-owned enterprise groups, with core businesses including natural gas procurement and sales, pipeline construction and operation, integrated services, and comprehensive energy solutions[15](index=15&type=chunk)[17](index=17&type=chunk) - Operational Highlights | Indicator | Data | | :--- | :--- | | Total City Gas Projects | 275 | | Covered Provinces | 25 | | Covered City Types | 15 provincial capitals and 76 prefecture-level cities | | Total Gas Sales | Approximately 20.76 billion cubic meters | | Number of Customers | 61.37 million households | | Pipeline Length | 330 thousand kilometers | - The company will leverage favorable operating conditions to expand through organic and inorganic growth, enhance operational efficiency, provide safe and reliable clean energy, and contribute to environmental protection and sustainable development[16](index=16&type=chunk)[20](index=20&type=chunk) [Chairman's Report and Business & Performance Review](index=7&type=section&id=%E4%B8%BB%E5%B8%AD%E5%A0%B1%E5%91%8A%E8%88%87%E6%A5%AD%E5%8B%99%E5%8F%8A%E6%A5%AD%E7%B8%BE%E5%9B%9E%E9%A1%A7) This chapter reviews H1 2025 global economic uncertainties and China's economic resilience amid a weak natural gas market, detailing the Group's efforts in gas source coordination, new user development, integrated services, and energy businesses, while noting decreased revenue and profit but stable cash flow and credit ratings [Half-Year Performance](index=7&type=section&id=%E5%8D%8A%E5%B9%B4%E6%A5%AD%E7%B8%BE) In H1 2025, global economic uncertainties persisted, China's GDP grew by 5.3%, but the domestic natural gas market was weak, with apparent consumption declining by 0.9% - The World Bank projects global economic growth of approximately **2.7%** in 2025[23](index=23&type=chunk)[24](index=24&type=chunk) - China's GDP grew by **5.3%** year-on-year in H1 2025, demonstrating economic resilience[23](index=23&type=chunk)[24](index=24&type=chunk) - Affected by higher temperatures, slow manufacturing PMI recovery, rising European and US natural gas prices, and US tariffs, apparent natural gas consumption was **211.97 billion cubic meters**, a **0.9%** year-on-year decrease[23](index=23&type=chunk)[24](index=24&type=chunk) [Core Business Operations](index=9&type=section&id=%E6%A0%B8%E5%BF%83%E4%B8%9A%E5%8A%A1%E8%BF%90%E8%90%A5) This section details the Group's operations and strategies in natural gas sales, new user development, integrated services, and integrated energy businesses, noting progress in gas source coordination and new projects despite a decline in integrated services revenue and profit [Natural Gas Sales](index=9&type=section&id=%E5%A4%A9%E7%84%B6%E6%B0%A3%E9%8A%B7%E5%94%AE) In H1 2025, total natural gas sales reached 20.76 billion cubic meters, with industrial and commercial sales declining, while residential sales grew by 4.2%, and unconventional resource acquisition doubled - Natural Gas Sales Volume (H1 2025) | Category | Sales Volume (billion cubic meters) | Year-on-Year Change | Proportion | | :--- | :--- | :--- | :--- | | Total Sales | 20.76 | - | - | | Industrial Sales | 9.45 | -2.2% | 45.5% | | Commercial Sales | 4.88 | -2.6% | 23.5% | | Residential Sales | 6.00 | +4.2% | 28.9% | - Gas source coordination scale exceeded **3.5 billion cubic meters**, a **100%** year-on-year increase; **200 million cubic meters** of unconventional resources were acquired; storage capacity increased to **3.75%**[29](index=29&type=chunk)[30](index=30&type=chunk) [New User Development](index=9&type=section&id=%E6%96%B0%E7%94%A8%E6%88%B6%E9%96%8B%E7%99%BC) In H1 2025, the Group developed 831,000 new residential users, comprising 667,000 new housing connections and 164,000 existing housing connections - New Residential User Connections (H1 2025) | User Type | Quantity (thousand households) | | :--- | :--- | | Total | 831 | | New Housing Connections | 667 | | Existing Housing Connections | 164 | [Integrated Services Business](index=10&type=section&id=%E7%B6%9C%E5%90%88%E6%9C%8D%E5%8B%99%E6%A5%AD%E5%8B%99) The Group expanded "Gas Butler" and "Hundred Cities, Ten Thousand Stores" models, covering 41.85 million users, but H1 2025 integrated services revenue decreased by 18.1% to HKD 1.45 billion, with segment profit down 22.6% to HKD 590 million - Continued promotion of grid-based management, covering **41.85 million users**; established "Gas Butler" for home services, with **26.90 million users** on WeChat Work; created "Hundred Cities, Ten Thousand Stores" model[35](index=35&type=chunk)[37](index=37&type=chunk) - Established "Runran Zhenxuan" online store, revitalized offline business halls, expanded brand collaborations, and provided high-quality products and services[35](index=35&type=chunk)[37](index=37&type=chunk) - Integrated Services Financial Performance (H1 2025) | Indicator | Amount (HKD) | Year-on-Year Change | | :--- | :--- | :--- | | Revenue | 1.45 billion | -18.1% | | Segment Profit | 590 million | -22.6% | [Integrated Energy Business Development](index=10&type=section&id=%E7%B6%9C%E5%90%88%E8%83%BD%E6%BA%90%E6%A5%AD%E5%8B%99%E7%99%BC%E5%B1%95) Leveraging its city gas advantages, the Group actively expanded integrated energy businesses, including distributed PV, distributed energy, and transportation charging, with significant new project signings in H1 2025 and accelerated expansion in Hong Kong - Prioritized distributed photovoltaic, distributed energy, and charging business segments to enhance integrated energy solution capabilities[36](index=36&type=chunk)[39](index=39&type=chunk) - Integrated Energy Projects Signed (H1 2025) | Project Type | Quantity (units) | Estimated Installed Capacity | | :--- | :--- | :--- | | Distributed Photovoltaic | 71 | 63 MW | | Distributed Energy | 35 | 127 MW | | Transportation Charging | 107 | 109 MW | - Invested in **15 charging projects** in Hong Kong, with **6 operational** and **9 under construction**, promoting liquid-cooled supercharging stations and integrated solar-storage-charging applications[36](index=36&type=chunk)[40](index=40&type=chunk) [Sustainable Development](index=11&type=section&id=%E5%8F%AF%E6%8C%81%E7%BA%8C%E7%99%BC%E5%B1%95) The Group actively advanced corporate governance, established an ESG Committee on March 28, 2025, and maintained an MSCI ESG rating of A, integrating national carbon peak and neutrality goals into operations - Actively promoted board corporate governance, improved functions, clarified responsibilities, emphasized integrity and compliance, and adhered to laws, regulations, and business ethics[41](index=41&type=chunk)[43](index=43&type=chunk) - On March 28, 2025, the Board resolved to establish an Environmental, Social and Governance Committee to fully implement the ESG sustainable development management system and engage consultants for professional advice[41](index=41&type=chunk)[44](index=44&type=chunk) - Organized anti-corruption and environmental training for board members and management; MSCI maintained the company's **ESG rating at A**; integrated national 2030 carbon peak and 2060 carbon neutrality goals into daily operations[42](index=42&type=chunk)[45](index=45&type=chunk) [Financial Performance Review](index=12&type=section&id=%E8%B4%A2%E5%8A%A1%E8%A1%A8%E7%8E%B0%E5%9B%9E%E9%A1%B1) This section reviews the Group's H1 2025 financial data, including revenue, profit, cash flow, borrowings, and credit ratings, noting a decline in revenue and profit but robust operating cash flow and stable financial health [Key Financial Information](index=12&type=section&id=%E4%B8%BB%E8%A6%81%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99) In H1 2025, Group revenue was HKD 49.79 billion, a 4.4% decrease, with connection business revenue share at 5.6%, and operating cash flow at HKD 3.01 billion, maintaining a stable A2/A-/A- credit rating - Key Financial Data (H1 2025) | Indicator | Amount (HKD) | Year-on-Year Change | | :--- | :--- | :--- | | Revenue | 49.79 billion | -4.4% | | Connection Business Revenue Share | 5.6% | Decreased from 5.8% | | Operating Cash Flow | 3.01 billion | - | - Moody's, S&P, and Fitch maintained the Group's **A2, A-, A- ratings**, ensuring lower financing costs[46](index=46&type=chunk)[49](index=49&type=chunk) [Financial Review](index=13&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) In H1 2025, the Group's unaudited consolidated revenue was HKD 49.79 billion, a 4.4% decrease, with gross profit at HKD 8.52 billion (17.1% margin), and profit attributable to owners at HKD 2.40 billion, a 30.5% decline - Consolidated Financial Performance (H1 2025) | Indicator | Amount (HKD) | H1 2024 (HKD) | Year-on-Year Change | | :--- | :--- | :--- | | Consolidated Revenue | 49.79 billion | 52.08 billion | -4.4% | | Gross Profit | 8.52 billion | 9.67 billion | -11.9% | | Gross Profit Margin | 17.1% | 18.6% | -1.5% | | Profit Attributable to Owners | 2.40 billion | 3.46 billion | -30.5% | [Cash Flow](index=13&type=section&id=%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F) In H1 2025, operating cash flow was HKD 3.01 billion, a decrease from the prior year, with HKD 2.36 billion invested in gas operations, and cash and other deposits totaling HKD 11.24 billion, 98.0% of which was RMB - Cash Flow Highlights (H1 2025) | Indicator | Amount (HKD) | H1 2024 (HKD) | Year-on-Year Change | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 3.01 billion | 4.25 billion | -29.2% | | Capital Expenditure for Gas Operations | 2.36 billion | 2.31 billion | +2.2% | - Cash and other deposits at period-end totaled **HKD 11.24 billion** (December 31, 2024: HKD 7.53 billion), with **98.0%** denominated in RMB[52](index=52&type=chunk)[55](index=55&type=chunk) [Liquidity and Financial Resources](index=14&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%92%8C%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) The Group maintains a prudent financial management policy, with total borrowings of HKD 25.95 billion (70.5% current), an asset-liability ratio of 18.7%, and available credit facilities of HKD 80.11 billion, indicating robust financial health - Total borrowings at period-end were **HKD 25.95 billion** (December 31, 2024: HKD 23.00 billion), with **70.5%** (2024: 62.0%) repayable within one year[56](index=56&type=chunk)[59](index=59&type=chunk) - RMB borrowings accounted for **99.2%**, and JPY borrowings for **0.8%**[56](index=56&type=chunk)[59](index=59&type=chunk) - The asset-liability ratio was **18.7%** (December 31, 2024: 17.4%)[56](index=56&type=chunk)[60](index=60&type=chunk) - Credit facilities totaled **HKD 80.11 billion**, including RMB 51.10 billion, USD 520 million, and HKD 20.00 billion, with **46.3%** of RMB standby facilities utilized[57](index=57&type=chunk)[61](index=61&type=chunk) - Overall financial position and liquidity are robust, with ample operating cash flow[56](index=56&type=chunk)[60](index=60&type=chunk) [Property, Plant and Equipment](index=14&type=section&id=%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%A8%AD%E5%82%99) For the six months ended June 30, 2025, the Group's capital expenditure on property, plant and equipment was HKD 2.73 billion, primarily for construction in progress, a decrease from H1 2024 - Acquisition expenditure in H1 2025 was **HKD 2.73 billion** (H1 2024: HKD 3.20 billion), primarily for construction in progress[58](index=58&type=chunk)[63](index=63&type=chunk) [Contingent Liabilities](index=15&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities[65](index=65&type=chunk)[69](index=69&type=chunk) [Asset Pledges](index=15&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, the Group had no significant asset pledges - As of June 30, 2025, the Group had no significant asset pledges[66](index=66&type=chunk)[70](index=70&type=chunk) [Financial Management and Treasury Policy](index=15&type=section&id=%E8%B2%A1%E5%8B%99%E7%AE%A1%E7%90%86%E5%92%8C%E5%BA%AB%E5%8B%99%E6%94%BF%E7%AD%96) The Group's treasury, managed by Hong Kong headquarters, focuses on mitigating interest rate and foreign exchange risks without engaging in speculative activities, with most assets and liabilities denominated in HKD, USD, and RMB - Financial risk management is handled by the treasury at Hong Kong headquarters, primarily managing interest rate and foreign currency exchange fluctuation risks[67](index=67&type=chunk)[71](index=71&type=chunk) - The Group's policy is not to engage in any speculative activities[67](index=67&type=chunk)[71](index=71&type=chunk) - Most assets and liabilities are denominated in HKD, USD, and RMB, and are not expected to face significant foreign exchange fluctuation risks[67](index=67&type=chunk)[72](index=72&type=chunk) [Investments and Future Outlook](index=12&type=section&id=%E6%8A%95%E8%B5%84%E4%B8%8E%E6%9C%AA%E6%9D%A5%E5%B1%95%E6%9C%9B) This section covers the Group's H1 2025 significant investments in city gas projects and pipelines, and outlines the outlook for H2, emphasizing continued core business strengthening and clean energy expansion for sustainable growth and shareholder returns [Significant Investments, Acquisitions, Disposals, and Investments in Joint Ventures & Associates](index=15&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E3%80%81%E6%94%B6%E8%B3%BC%E5%92%8C%E5%87%BA%E5%94%AE%EF%BC%8C%E6%96%BC%E5%90%88%E8%B3%87%E5%85%AC%E5%8F%B8%E5%8F%8A%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E7%9A%84%E6%8A%95%E8%B3%87) As of June 30, 2025, the Group projected new investments of HKD 90 million in 5 city gas projects and HKD 2.36 billion for pipeline construction, aiming to expand coverage and create synergies, with no other significant transactions during the period - Expected new investments of approximately **HKD 90 million** in **5 city gas projects**[68](index=68&type=chunk)[73](index=73&type=chunk) - Invested **HKD 2.36 billion** in pipeline construction and related facilities to expand gas operations[68](index=68&type=chunk)[74](index=74&type=chunk) - Investment aims to expand the company's coverage in relevant provinces and create cluster synergies with existing city gas projects in centralized procurement, pipeline design and engineering services, and management efficiency[68](index=68&type=chunk)[73](index=73&type=chunk) [Future Significant Investments or Capital Asset Plans](index=16&type=section&id=%E6%9C%AA%E4%BE%86%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E6%88%96%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2%E8%A8%88%E5%8A%83) As of the report date, the Group had no actual plans to acquire any significant investments or capital assets beyond those disclosed and its ordinary course of business - Except as disclosed, as of the report date, the Group had no actual plans to acquire any significant investments or capital assets, other than in the ordinary course of business[75](index=75&type=chunk)[80](index=80&type=chunk) [Development Outlook](index=12&type=section&id=%E7%99%BC%E5%B1%95%E5%B1%95%E6%9C%9B) H2 2025 outlook anticipates global economic pressure and volatile natural gas prices, while domestic economy is expected to stabilize with industrial upgrades and green energy transition, leading to a gradual recovery in natural gas consumption - Global economic growth faces multiple pressures, with natural gas prices expected to remain volatile and market demand growth uncertain[47](index=47&type=chunk)[50](index=50&type=chunk) - Domestic economy is expected to progress steadily, with industrial structure upgrading, deepening green energy transition, and a gradual recovery in natural gas consumption[47](index=47&type=chunk)[50](index=50&type=chunk) - The Group will continue to strengthen its core business, actively respond to national clean energy development, expand integrated services and integrated energy businesses, lay a foundation for sustainable development, and enhance shareholder returns[47](index=47&type=chunk)[50](index=50&type=chunk) [Dividends and Share-Related Matters](index=16&type=section&id=%E8%82%A1%E6%81%AF%E5%8F%8A%E8%82%A1%E4%BB%BD%E7%9B%B8%E5%85%B3%E4%BA%8B%E9%A1%B9) This section covers the interim dividend declaration, share register closure, shareholder's RMB dividend election, and the terminated share repurchase award scheme with its share disposal details [Interim Dividend](index=16&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board declared an interim dividend of HKD 0.30 per share for the six months ended June 30, 2025, payable on October 31, 2025, to shareholders on record as of September 15, 2025 - H1 2025 interim dividend of **HKD 0.30 per share** (H1 2024: HKD 0.25 per share), a **20%** year-on-year increase[78](index=78&type=chunk)[83](index=83&type=chunk) - Dividends will be paid on **October 31, 2025**, with a record date of **September 15, 2025**[78](index=78&type=chunk)[83](index=83&type=chunk) [Closure of Register of Members](index=16&type=section&id=%E6%9A%AB%E5%81%9C%E8%BE%A6%E7%90%86%E8%82%A1%E4%BB%BD%E9%81%8E%E6%88%B6%E7%99%BB%E8%A8%98) To qualify for the interim dividend, the company's register of members will be closed from September 12 to September 15, 2025 - The register of members will be closed from **Friday, September 12, 2025**, to **Monday, September 15, 2025**[79](index=79&type=chunk)[84](index=84&type=chunk) - The deadline for transfer registration is before **4:30 p.m. on Thursday, September 11, 2025**[79](index=79&type=chunk)[84](index=84&type=chunk) [Shareholders' Election](index=17&type=section&id=%E8%82%A1%E6%9D%B1%E4%B9%8B%E9%81%B8%E6%8B%A9%E6%AC%8A) The 2025 interim dividend will be paid in HKD cash unless shareholders elect to receive RMB cash, with an exchange rate of HKD 1.0 to RMB 0.91214, and election forms due by 4:30 p.m. on October 9, 2025 - Shareholders may elect to receive the 2025 interim dividend in either **HKD cash or RMB cash**[85](index=85&type=chunk)[87](index=87&type=chunk)[88](index=88&type=chunk) - The RMB exchange rate is set at **HKD 1.0 to RMB 0.91214**, resulting in **RMB 0.2736408 per share**[85](index=85&type=chunk)[88](index=88&type=chunk) - Shareholders must submit the dividend currency election form before **4:30 p.m. on October 9, 2025**[85](index=85&type=chunk)[88](index=88&type=chunk) - Shareholders should note that RMB cheques cleared in Hong Kong may incur handling fees, delays, or issues with overseas encashment[86](index=86&type=chunk)[89](index=89&type=chunk) [Award Scheme](index=18&type=section&id=%E7%8D%8E%E5%8B%B5%E8%A8%88%E5%8A%83) The company's 2008 Share Repurchase Cash Award Scheme, designed to recognize employee contributions, was terminated on September 25, 2024; in H1 2025, 29,197,100 award shares were sold, leaving a balance of 14,600,284 shares - The scheme aimed to recognize employee contributions, provide incentives, retain and recruit outstanding employees, and offer direct economic benefits[90](index=90&type=chunk)[93](index=93&type=chunk) - The Board resolved to terminate the award scheme on **September 25, 2024**[96](index=96&type=chunk)[97](index=97&type=chunk) - In H1 2025, the company sold **29,197,100 award shares**[97](index=97&type=chunk)[98](index=98&type=chunk) - As of June 30, 2025, the balance of award shares was **14,600,284 shares**[98](index=98&type=chunk) [Other Matters](index=16&type=section&id=%E5%85%B6%E4%BB%96%E4%BA%8B%E9%A1%B9) This section covers post-balance sheet events, the assessment of going concern, employee remuneration policies, and acknowledgements of support from various stakeholders [Post Balance Sheet Events](index=16&type=section&id=%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) The Group had no significant post-balance sheet events from the period-end up to the date of this report - The Group had no significant post-balance sheet events from the period-end up to the date of this report[76](index=76&type=chunk)[81](index=81&type=chunk) [Going Concern](index=16&type=section&id=%E6%8C%81%E7%BA%8C%E7%87%9F%E4%B8%9A%E5%8B%99) The Board believes the Group possesses sufficient working capital for the next twelve months, supported by internal funds and a strong banking record, thus the interim financial report is prepared on a going concern basis - The Board believes the Group has sufficient working capital to meet its needs for the next **12 months**[77](index=77&type=chunk)[82](index=82&type=chunk) - The interim financial report is prepared on a going concern basis[77](index=77&type=chunk)[82](index=82&type=chunk) [Employee Remuneration](index=20&type=section&id=%E7%8D%8E%E5%8B%B5%E5%83%B1%E5%93%A1) As of June 30, 2025, the Group employed approximately 57,162 staff in Hong Kong and mainland China, with remuneration based on performance, experience, and market wages, including bonuses and awards to attract and retain talent - As of June 30, 2025, the Group employed approximately **57,162 staff**[99](index=99&type=chunk)[101](index=101&type=chunk) - Remuneration is based on employee performance, work experience, and market wage levels, with bonuses and awards distributed according to achievements and performance[99](index=99&type=chunk)[101](index=101&type=chunk) - The Group values talent and is committed to attracting, training, and retaining outstanding employees[99](index=99&type=chunk)[101](index=101&type=chunk) [Acknowledgements](index=20&type=section&id=%E8%87%B4%E8%AC%9D) The Board extends sincere gratitude to all business partners, customers, shareholders, and employees for their support and contributions to the Group's business objectives - The Board extends sincere gratitude to business partners, customers, shareholders, and all employees[100](index=100&type=chunk)[102](index=102&type=chunk) - Thanking them for their support and contributions to the Group's business objectives[100](index=100&type=chunk)[102](index=102&type=chunk) [Corporate Governance and Other Information](index=19&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) This chapter details the company's corporate governance structure, directors' and major shareholders' securities interests, share repurchases, account review process, and changes in director information, affirming commitment to transparency and accountability despite two code deviations [Directors' Securities Interests](index=21&type=section&id=%E8%91%A3%E4%BA%8B%E6%89%80%E4%BD%B5%E8%AD%89%E5%88%B8%E6%AC%8A%E7%9B%8A) As of June 30, 2025, company directors and chief executives held interests in the company's and its associated corporations' shares, including specific holdings by Mr. Huang Desheng, Mr. Yang Ping, Ms. Ge Lu, Mr. Zhang Junzheng, and Mr. Fang Xin - Mr. Huang Desheng holds **160,000 shares** of the company, representing **0.0069%**[107](index=107&type=chunk) - Mr. Yang Ping holds **80,000 shares** (0.0062%) of China Resources Medical, and Ms. Ge Lu holds **66,000 shares** (0.0051%) of China Resources Medical[109](index=109&type=chunk) - Ms. Ge Lu holds **2,000 shares** (0.000062%) of China Resources Beer[109](index=109&type=chunk) - Mr. Zhang Junzheng holds **796,000 shares** (0.0154%) of China Resources Power, and Mr. Fang Xin holds **20,000 shares** (0.0004%) of China Resources Power[114](index=114&type=chunk) - Mr. Fang Xin holds **368,255 shares** (0.025%) of China Resources Materials[114](index=114&type=chunk) [Major Shareholders](index=24&type=section&id=%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1) As of June 30, 2025, China Resources Group (Gas) Co., Ltd. was the largest shareholder with 60.84% of shares, while China Resources (Holdings) Co., Ltd. and its subsidiaries were deemed to hold 61.46% interest - China Resources Group (Gas) Co., Ltd. holds **1,407,828,991 shares**, representing **60.84%**[117](index=117&type=chunk) - China Resources (Holdings) Co., Ltd. and its wholly-owned subsidiaries (CRC Bluesky, China Resources Co., Ltd., China Resources (China) Co., Ltd.) are deemed to have an interest in **1,422,298,991 shares**, representing **61.46%**[117](index=117&type=chunk)[119](index=119&type=chunk) [Repurchase, Sale or Redemption of Listed Securities](index=25&type=section&id=%E8%B3%BC%E5%9B%9E%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E7%9A%84%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) For the six months ended June 30, 2025, the company repurchased 273,100 shares on the Stock Exchange for HKD 5,885,666, all of which remain uncancelled, with no other listed securities repurchased, sold, or redeemed during the period - Share Repurchases on the Stock Exchange (H1 2025) | Month | Number of Shares Repurchased | Highest Price (HKD) | Lowest Price (HKD) | Total Consideration (HKD) | Transaction Fees (HKD) | Total Repurchase Amount (HKD) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | May 2025 | 10,000 | 22.0 | 21.9 | 219,700.00 | 349.00 | 220,049.00 | | June 2025 | 263,100 | 21.5 | 21.5 | 5,656,650.00 | 8,967.00 | 5,665,617.00 | | **Total** | **273,100** | - | - | **5,876,350.00** | **9,316.00** | **5,885,666.00** | - The Board believes that share repurchases enhance the long-term value for the company and its shareholders, aligning with overall interests[122](index=122&type=chunk)[125](index=125&type=chunk) - As of June 30, 2025, the company held no treasury shares[123](index=123&type=chunk)[125](index=125&type=chunk) [Review of Accounts](index=25&type=section&id=%E8%B3%AC%E7%9B%AE%E5%AF%A9%E9%96%B1) The interim financial report for the six months ended June 30, 2025, was unaudited but reviewed by the company's Audit and Risk Management Committee, with no disagreements noted - The interim financial report was unaudited[124](index=124&type=chunk)[126](index=126&type=chunk) - It was reviewed by the company's Audit and Risk Management Committee[124](index=124&type=chunk)[126](index=126&type=chunk) - The review found no disagreements[124](index=124&type=chunk)[126](index=126&type=chunk) [Corporate Governance Structure](index=26&type=section&id=%E4%BC%81%E4%B8%9A%E7%AE%A1%E6%B2%BB%E6%9E%B6%E6%9E%84) The Group is committed to maintaining a robust corporate governance structure, managed transparently and accountably, with four Board committees—Audit and Risk Management, Remuneration, Nomination, and ESG—each fulfilling specific functions to enhance efficiency and professionalism [Corporate Governance](index=26&type=section&id=%E4%BC%81%E4%B8%9A%E7%AE%A1%E6%B2%BB) The Group is dedicated to maintaining a robust and reliable corporate governance framework, ensuring transparency, openness, and accountability for shareholders, with ongoing efforts to strengthen policies and four Board committees enhancing functionality - The Group is committed to maintaining an excellent and reliable governance structure, providing a transparent, open, and accountable framework for shareholders[127](index=127&type=chunk)[130](index=130&type=chunk) - It will continue to strengthen corporate governance policies to ensure alignment with current practices and standards[127](index=127&type=chunk)[130](index=130&type=chunk) - The Board has established an Audit and Risk Management Committee, Remuneration Committee, Nomination Committee, and Corporate Governance Committee (now the ESG Committee)[127](index=127&type=chunk)[130](index=130&type=chunk) [Audit and Risk Management Committee](index=26&type=section&id=%E5%AF%A9%E6%A0%B8%E8%88%87%E9%A2%A8%E9%9A%AA%E7%AE%A1%E7%90%86%E5%A7%94%E5%93%A1%E6%9C%83) Comprising three independent non-executive directors and one non-executive director, chaired by Mr. Yu Handu, the Audit and Risk Management Committee provides independent review of financial reporting, internal controls, and risk management, having reviewed the Group's accounting principles and financial statements - The Committee comprises Mr. Yu Handu (Chairman), Mr. Fang Xin, Mr. Huang Desheng, and Mr. Yang Yuchuan[4](index=4&type=chunk)[128](index=128&type=chunk)[131](index=131&type=chunk) - Its primary responsibility is to provide an independent and objective review of the financial reporting process, internal controls, risk management, and the effectiveness of the internal audit function[128](index=128&type=chunk)[131](index=131&type=chunk) - It has reviewed accounting principles and practices with management and discussed internal controls, risk management, and financial reporting matters[128](index=128&type=chunk)[132](index=132&type=chunk) [Remuneration Committee](index=26&type=section&id=%E8%96%AA%E9%85%AC%E5%A7%94%E5%93%A1%E6%9C%83) Comprising three independent non-executive directors and one non-executive director, chaired by Mr. Huang Desheng, the Remuneration Committee advises the Board on remuneration policies and structures for directors and senior management, reviewing and approving compensation based on company objectives - The Committee comprises Mr. Huang Desheng (Chairman), Mr. Zhang Junzheng, Mr. Yu Handu, and Mr. Li Boen[4](index=4&type=chunk)[129](index=129&type=chunk)[133](index=133&type=chunk) - Its primary responsibility is to advise the Board on remuneration policies and structures for directors and senior management, and to review and approve remuneration based on company objectives[129](index=129&type=chunk)[133](index=133&type=chunk) [Nomination Committee](index=27&type=section&id=%E6%8F%90%E5%90%8D%E5%A7%94%E5%93%A1%E6%9C%83) Chaired by Mr. Yang Ping, the Nomination Committee, composed of the Board Chairman, one non-executive director, and three independent non-executive directors, assists the Board in establishing formal, prudent, and transparent procedures for new director appointments and regularly reviews Board structure - The Committee comprises Mr. Yang Ping (Chairman), Ms. Ge Lu, Mr. Huang Desheng, Mr. Yu Handu, and Mr. Yang Yuchuan[4](index=4&type=chunk)[135](index=135&type=chunk)[137](index=137&type=chunk) - Its primary purpose is to assist the Board in establishing formal, prudent, and transparent procedures for appointing new directors[135](index=135&type=chunk)[137](index=137&type=chunk) - Responsibilities include regularly reviewing the Board's structure, size, and composition, and providing recommendations for proposed changes[135](index=135&type=chunk)[137](index=137&type=chunk) [Environmental, Social and Governance Committee](index=27&type=section&id=%E7%92%B0%E5%A2%83%E3%80%81%E7%A4%BE%E6%9C%83%E5%8F%8A%E7%AE%A1%E6%B2%BB%E5%A7%94%E5%93%A1%E6%9C%83) On March 28, 2025, the Corporate Governance Committee was renamed the Environmental, Social and Governance (ESG) Committee, chaired by Mr. Yang Ping, to guide and oversee the company's ESG vision, objectives, strategies, and reporting - On **March 28, 2025**, the Corporate Governance Committee was renamed the ESG Committee, with adjusted functions and responsibilities[136](index=136&type=chunk)[138](index=138&type=chunk) - The Committee comprises Mr. Yang Ping (Chairman), Mr. Li Weiwei, Mr. Huang Desheng, Mr. Yang Yuchuan, and Mr. Li Boen[4](index=4&type=chunk)[136](index=136&type=chunk)[138](index=138&type=chunk) - Its primary functions are to assist the Board in guiding and formulating the company's ESG vision, objectives, strategies, and framework, overseeing their development and implementation, and reviewing, approving, and authorizing the release of ESG reports[136](index=136&type=chunk)[138](index=138&type=chunk) [Code Compliance](index=28&type=section&id=%E5%AE%88%E5%89%87%E9%81%B5%E5%AE%88%E6%83%85%E5%86%B5) The company adopted and complied with all applicable provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules during the period, with two noted deviations regarding formal appointment letters for directors and the Chairman's absence from the AGM [Compliance with Corporate Governance Code](index=28&type=section&id=%E9%81%B5%E5%AE%88%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) The company complied with the Corporate Governance Code in Appendix C1 of the Listing Rules, except for two deviations: no formal appointment letters for directors (though rotation exists) and the Chairman's absence from the 2025 AGM due to other commitments - The company has adopted the Corporate Governance Code set out in Appendix C1 of the Listing Rules[139](index=139&type=chunk)[141](index=141&type=chunk) - Deviation from C.3.3: No formal appointment letters were issued to directors, but directors are subject to retirement by rotation and adhere to relevant duty guidelines[139](index=139&type=chunk)[141](index=141&type=chunk) - Deviation from F.1.3: The Board Chairman was unable to attend the Annual General Meeting held on **May 28, 2025**, due to other work commitments[140](index=140&type=chunk)[142](index=142&type=chunk) [Standard Code for Securities Transactions by Directors](index=29&type=section&id=%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The company adopted the Standard Code for Securities Transactions by Directors as per Appendix C3 of the Listing Rules, and all directors confirmed compliance during the period after specific inquiry - The company has adopted the Standard Code for Securities Transactions by Directors as set out in Appendix C3 of the Listing Rules[143](index=143&type=chunk)[145](index=145&type=chunk) - Following specific inquiry, all directors confirmed compliance with the Standard Code during the period[143](index=143&type=chunk)[145](index=145&type=chunk) [Changes in Directors' Information](index=29&type=section&id=%E8%91%A3%E4%BA%8B%E8%B3%87%E6%96%99%E8%AE%8A%E5%8B%95) Since the 2024 annual report, Mr. Wang Gaoqiang retired as a non-executive director on May 28, 2025; Mr. Li Xiaoshuang resigned as executive director and CFO on June 27, 2025; and Mr. Liu Haiyan was appointed executive director on September 15, 2025 - Mr. Wang Gaoqiang retired as a Non-executive Director and member of the Audit and Risk Management Committee on **May 28, 2025**[146](index=146&type=chunk) - Mr. Li Xiaoshuang resigned as an Executive Director and Chief Financial Officer on **June 27, 2025**[147](index=147&type=chunk) - Mr. Liu Haiyan was appointed as an Executive Director on **September 15, 2025**[147](index=147&type=chunk) [Financial and Business Highlights](index=28&type=section&id=%E8%B2%A1%E5%8B%99%E5%8F%8A%E6%A5%AD%E5%8B%99%E6%91%98%E8%A6%81) This chapter summarizes the Group's key financial and operational data for H1 2025 and H1 2024 in tabular format, including revenue, profit, cash flow, EPS, dividends, balance sheet items, and operational performance metrics - Financial Summary (H1 2025) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Increase/(Decrease) | | :--- | :--- | :--- | :--- | | Revenue | 49,785,016 | 52,075,587 | (4.4%) | | Gross Profit | 8,524,019 | 9,671,182 | (11.9%) | | Operating Profit | 4,296,643 | 5,820,640 | (26.2%) | | Profit for the Period | 3,359,196 | 4,493,418 | (25.2%) | | Profit Attributable to Owners of the Company | 2,402,774 | 3,456,742 | (30.5%) | | Net Cash from Operating Activities | 3,008,942 | 4,252,981 | (29.3%) | | Basic Earnings Per Share (HK cents) | 105 | 152 | (30.9%) | | Proposed/Paid Interim Dividend (HK cents) | 30 | 25 | 20% | - Financial Position Summary (June 30, 2025) | Indicator | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Increase/(Decrease) | | :--- | :--- | :--- | :--- | | **Non-current Assets** | | | | | Property, Plant and Equipment | 64,949,230 | 62,932,934 | | | Interests in Joint Ventures | 17,492,282 | 17,264,301 | | | Interests in Associates | 4,550,595 | 4,417,166 | | | **Current Assets** | | | | | Bank Balances and Cash | 11,242,309 | 7,530,584 | | | Inventories | 928,039 | 1,403,794 | | | Trade and Other Receivables | 18,321,074 | 17,673,735 | | | **Current Liabilities** | | | | | Trade and Other Payables | 30,958,703 | 29,989,960 | | | Bank and Other Borrowings | 17,749,489 | 13,718,688 | | | **Total Assets** | **138,489,941** | **132,482,695** | **4.5%** | | **Total Liabilities** | **71,275,546** | **68,511,719** | | | **Total Equity** | **67,214,395** | **63,970,976** | **5.1%** | - Financial Ratios (H1 2025) | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Gross Profit Margin | 17.1% | 18.6% | | Net Profit Margin (for the period) | 6.7% | 8.6% | | Net Profit Margin (attributable to shareholders) | 4.8% | 6.6% | | Capital Gearing Ratio | 27.9% | 26.4% | | Asset-Liability Ratio | 18.7% | 17.4% | | Return on Equity (annualized) | 11.1% | 16.6% | - Operational Performance Summary (H1 2025) | Indicator | June 30, 2025 | June 30, 2024 | Increase/(Decrease) | | :--- | :--- | :--- | :--- | | Number of Projects | 275 | 276 | (1) | | Connectable Households (millions) | 99.88 | 98.42 | 1.5% | | Residential User Penetration Rate | 61.4% | 59.6% | 1.8 PPT | | Pipeline Length (kilometers) | 329,661 | 316,282 | 4.2% | | Total Connected Users | 61,372,284 | 58,836,112 | 4.3% | | New Connected Households (receipts collected) | 830,759 | 1,031,384 | (19.5%) | [Independent Review Report](index=31&type=section&id=%E7%8D%A8%E7%AB%8B%E5%AF%A9%E9%96%B1%E5%A0%B1%E5%91%8A) KPMG reviewed China Resources Gas Holdings Company Limited's interim financial report for the six months ended June 30, 2025, concluding that nothing indicated the report was not prepared in all material respects in accordance with HKAS 34, though the review scope was less than an audit - The subject of review is the interim financial report of China Resources Gas Holdings Company Limited and its subsidiaries for the six months ended **June 30, 2025**[159](index=159&type=chunk)[161](index=161&type=chunk) - The review was conducted by **KPMG**[159](index=159&type=chunk)[166](index=166&type=chunk) - The review was performed in accordance with Hong Kong Standard on Review Engagements **2410**, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity"[160](index=160&type=chunk)[163](index=163&type=chunk) - The review concluded that nothing has come to attention that causes the auditors to believe the interim financial report is not prepared, in all material respects, in accordance with Hong Kong Accounting Standard **34**, "Interim Financial Reporting"[164](index=164&type=chunk)[165](index=165&type=chunk) - The scope of a review is less than an audit, and therefore no audit opinion is expressed[160](index=160&type=chunk)[163](index=163&type=chunk) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=33&type=section&id=%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E7%B6%9C%E5%90%88%E6%94%B6%E7%9B%8A%E8%A1%A8) This statement presents the Group's consolidated profit or loss and other comprehensive income for the six months ended June 30, 2025, showing revenue of HKD 49.785 billion, gross profit of HKD 8.524 billion, and profit attributable to owners of HKD 2.403 billion, with exchange differences from translation as the main component of other comprehensive income - Profit or Loss Overview (H1 2025) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Revenue | 49,785,016 | 52,075,587 | | Cost of Sales | (41,260,997) | (42,404,405) | | Gross Profit | 8,524,019 | 9,671,182 | | Profit Before Tax | 4,348,718 | 5,716,425 | | Profit for the Period | 3,359,196 | 4,493,418 | | Profit Attributable to Owners of the Company | 2,402,774 | 3,456,742 | | Profit Attributable to Non-controlling Interests | 956,422 | 1,036,676 | - Exchange differences arising from translation were **HKD 1,121,615 thousand** (2024: HKD (492,669) thousand)[169](index=169&type=chunk) - Total comprehensive income for the period was **HKD 4,483,355 thousand** (2024: HKD 4,001,829 thousand)[169](index=169&type=chunk) - Basic earnings per share were **HKD 1.05** (2024: HKD 1.52)[170](index=170&type=chunk) [Consolidated Statement of Financial Position](index=35&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) This statement presents the Group's consolidated financial position as of June 30, 2025, with total assets of HKD 138.49 billion, total liabilities of HKD 71.28 billion, total equity of HKD 67.21 billion, and net current liabilities of HKD 24.64 billion - Assets and Liabilities Overview (June 30, 2025) | Indicator | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Property, Plant and Equipment | 64,949,230 | 62,932,934 | | Interests in Joint Ventures | 17,492,282 | 17,264,301 | | Interests in Associates | 4,550,595 | 4,417,166 | | **Current Assets** | | | | Bank Balances and Cash | 11,242,309 | 7,530,584 | | Inventories | 928,039 | 1,403,794 | | Trade and Other Receivables | 18,321,074 | 17,673,735 | | **Current Liabilities** | | | | Trade and Other Payables | 30,958,703 | 29,989,960 | | Bank and Other Borrowings | 17,749,489 | 13,718,688 | | **Total Assets** | **138,489,941** | **132,482,695** | | **Total Liabilities** | **71,275,546** | **68,511,719** | | **Total Equity** | **67,214,395** | **63,970,976** | - As of June 30, 2025, net current liabilities were **HKD (24,635,542) thousand** (December 31, 2024: HKD (24,369,132) thousand)[173](index=173&type=chunk) [Consolidated Statement of Changes in Equity](index=37&type=section&id=%E7%B6%9C%E5%90%88%E8%82%A1%E6%9C%AC%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) This statement details the Group's consolidated changes in equity for the six months ended June 30, 2025, including profit attributable to owners of HKD 2.403 billion, total comprehensive income of HKD 3.147 billion, share repurchases, award scheme share disposals, dividends paid, and subsidiary capital reductions - Equity Changes Overview (June 30, 2025) | Indicator | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Equity Attributable to Owners of the Company | 43,393,972 | 41,171,967 | | Non-controlling Interests | 23,820,423 | 22,799,009 | | **Total Equity** | **67,214,395** | **63,970,976** | - Profit for the period: **HKD 2,402,774 thousand**[177](index=177&type=chunk) - Total comprehensive income for the period: **HKD 3,146,646 thousand**[177](index=177&type=chunk) - Disposal of shares held under award scheme: **HKD 669,015 thousand**[177](index=177&type=chunk) - Share repurchases: **HKD (5,886) thousand**[177](index=177&type=chunk) - Dividends paid: **HKD (1,587,770) thousand**[177](index=177&type=chunk) - Movement in exchange reserve: **HKD 742,033 thousand**[177](index=177&type=chunk) [Condensed Consolidated Cash Flow Statement](index=40&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) This statement presents the Group's condensed consolidated cash flows for the six months ended June 30, 2025, with net cash from operating activities of HKD 3.009 billion, net cash used in investing activities of HKD 2.148 billion, net cash from financing activities of HKD 2.557 billion, and cash and cash equivalents totaling HKD 10.664 billion at period-end - Cash Flow Overview (H1 2025) | Cash Flow Type | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Net Cash from Operating Activities | 3,008,942 | 4,252,981 | | Net Cash Used in Investing Activities | (2,147,883) | (3,861,284) | | Net Cash from Financing Activities | 2,557,372 | 835,665 | | Net Increase in Cash and Cash Equivalents | 3,418,431 | 1,227,362 | | Cash and Cash Equivalents at Period-End | 10,664,163 | 11,127,977 | - Key investing activities included proceeds from redemption of other deposits of **HKD 9.768 billion**, placement of other deposits of **HKD 10.136 billion**, and payments for property, plant and equipment of **HKD 2.343 billion**[184](index=184&type=chunk) - Key financing activities included new bank and other borrowings of **HKD 11.016 billion** and repayment of bank and other borrowings of **HKD 8.474 billion**[184](index=184&type=chunk) [Notes to the Interim Financial Report](index=42&type=section&id=%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A%E9%99%84%E8%A8%BB) This chapter provides detailed notes to the interim financial report, covering general information, basis of preparation, accounting policy changes, segment revenue and performance, taxation, profit for the period, dividends, EPS calculation, key balance sheet items, share capital, business combinations, fair value measurement of financial instruments, capital commitments, and related party transactions [1. General Information](index=44&type=section&id=1.%20%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) China Resources Gas Holdings Company Limited, a Bermuda-incorporated listed company, is ultimately controlled by China Resources (Holdings) Co., Ltd., a Chinese government-owned entity, primarily engaged in gas fuel sales, connection, and integrated services in China, with its unaudited interim results reviewed by the Audit and Risk Management Committee - The company is a listed entity incorporated in Bermuda[189](index=189&type=chunk)[191](index=191&type=chunk) - Its ultimate holding company is China Resources (Holdings) Co., Ltd., owned and controlled by the Chinese government[189](index=189&type=chunk)[191](index=191&type=chunk) - Its principal activities in China include gas fuel sales and distribution, gas connection, integrated services, design and construction services, and gas station operations[190](index=190&type=chunk)[192](index=192&type=chunk) - The interim results are unaudited but have been reviewed by the company's Audit and Risk Management Committee[190](index=190&type=chunk)[192](index=192&type=chunk) [2. Basis of Preparation](index=44&type=section&id=2.%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) The interim financial report is prepared in accordance with HKAS 34 and the Listing Rules, presented on a going concern basis due to sufficient working capital, and has been reviewed by KPMG - Prepared in accordance with the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Hong Kong Accounting Standard **34**, "Interim Financial Reporting," issued by the Hong Kong Institute of Certified Public Accountants[193](index=193&type=chunk)[198](index=198&type=chunk) - The report contains condensed consolidated financial statements and selected explanatory notes, not including all information required for full financial statements[198](index=198&type=chunk) - The Board believes the Group has sufficient working capital to meet its needs for the next **twelve months**, thus prepared on a going concern basis[201](index=201&type=chunk)[202](index=202&type=chunk) - The interim financial report is unaudited but has been reviewed by **KPMG**[199](index=199&type=chunk) [3. Changes in Accounting Policies](index=46&type=section&id=3.%20%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96%E8%AE%8A%E5%8B%95) The Group applied the revised HKAS 21, "The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability," which had no material impact on current or prior period results or financial position, and no other new standards or interpretations have been adopted yet - Hong Kong Accounting Standard **21**, "The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability" (Revised), has been applied[203](index=203&type=chunk)[205](index=205&type=chunk) - This revision had no material impact on the Group's results or financial position for the current or prior periods[203](index=203&type=chunk)[205](index=205&type=chunk) - The Group has not yet applied any new standards or interpretations that are not yet effective[206](index=206&type=chunk) [4. Revenue and Segment Information](index=46&type=section&id=4.%20%E6%94%B6%E7%9B%8A%E5%8F%8A%E5%88%86%E9%A1%9E%E8%B3%87%E6%96%99) The Group's operating segments include gas fuel sales, connection, integrated services, design, construction, and gas stations; this section provides H1 2025 revenue and performance analysis for each, showing gas fuel sales as the primary revenue source despite a decline in segment results - Operating segments include sales and distribution of gas fuel and related products, gas connection, integrated services, design and construction services, and gas stations[208](index=208&type=chunk)[209](index=209&type=chunk) - Segment Revenue and Performance (H1 2025) | Segment | External Sales (HKD thousands) | Segment Results (HKD thousands) | | :--- | :--- | :--- | | Sales and Distribution of Gas Fuel and Related Products | 44,297,836 | 4,019,596 | | Gas Connection | 2,809,546 | 844,259 | | Integrated Services | 1,445,607 | 589,103 | | Design and Construction Services | 323,240 | 29,903 | | Gas Stations | 908,787 | 78,638 | | **Total** | **49,785,016** | **5,561,499** | - Segment Revenue and Performance (H1 2024) | Segment | External Sales (HKD thousands) | Segment Results (HKD thousands) | | :--- | :--- | :--- | | Sales and Distribution of Gas Fuel and Related Products | 45,923,708 | 4,654,900 | | Gas Connection | 3,016,023 | 1,124,459 | | Integrated Services | 1,765,090 | 761,123 | | Design and Construction Services | 335,500 | 33,961 | | Gas Stations | 1,035,266 | 93,886 | | **Total** | **52,075,587** | **6,668,329** | - Sales and distribution of gas fuel and related products represent the largest asset and liability segment[217](index=217&type=chunk)[218](index=218&type=chunk) [5. Taxation](index=50&type=section&id=5.%20%E7%A8%85%E9%A0%85) Taxation in the consolidated statement of profit or loss primarily comprises China corporate income tax and deferred tax, totaling HKD 990 million in H1 2025, a decrease from HKD 1.223 billion in H1 2024, with no Hong Kong profits tax provision due to no taxable profit - Taxation Components (H1 2025) | Tax Type | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | China Corporate Income Tax | 1,006,938 | 1,357,984 | | Deferred Tax | (17,416) | (134,977) | | **Total** | **989,522** | **1,223,007** | - No provision for Hong Kong profits tax was made as the company and its Hong Kong operating subsidiaries had no assessable profits[220](index=220&type=chunk)[221](index=221&type=chunk) [6. Profit for the Period](index=51&type=section&id=6.%20%E6%9C%9F%E5%85%A7%E6%BA%A2%E5%88%A9) This section details the components of profit for the period, including key deductions such as depreciation, amortization, and finance costs, and significant additions from various interest incomes - Key Items in Profit for the Period Calculation (H1 2025) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | **Deductions:** | | | | Depreciation of Property, Plant and Equipment | 1,570,856 | 1,548,538 | | Amortisation of Other Intangible Assets | 114,195 | 131,096 | | Amortisation of Right-of-Use Assets | 156,022 | 203,590 | | Total Finance Costs | 308,200 | 549,379 | | **Additions:** | | | | Interest Income from Bank and Other Deposits | 37,691 | 149,777 | | Interest Income from Bank and Other Deposits with Fellow Subsidiaries | 22,671 | 2,903 | | Interest Income from Joint Ventures | 29,444 | 32,741 | [7. Dividends](index=52&type=section&id=7.%20%E8%82%A1%E6%81%AF) In H1 2025, the company declared a final dividend of HKD 0.70 per share for 2024, totaling HKD 1.588 billion, and the Board declared an interim dividend of HKD 0.30 per share for H1 2025, totaling approximately HKD 690 million, an increase from HKD 0.25 per share in H1 2024 - The 2024 final dividend of **HKD 0.70 per share**, totaling **HKD 1,587,770 thousand**, was included in other payables as of **June 30, 2025**[225](index=225&type=chunk)[226](index=226&type=chunk) - The Board declared an H1 2025 interim dividend of **HKD 0.30 per share**, totaling approximately **HKD 689,906 thousand** (H1 2024: HKD 0.25 per share, totaling HKD 567,054 thousand)[228](index=228&type=chunk) - Dividends will be paid to shareholders on the company's

[Company Information](index=2&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) This section provides essential company details, including board members, key offices, banking relationships, and auditor information [Board of Directors and Principal Offices](index=2&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83%E5%8F%8A%E4%B8%BB%E8%A6%81%E辦%E4%BA%8B%E8%99%95) This section lists the company's board members, company secretary, registered office, and principal places of business in Hong Kong and China - The company's board members include Executive Directors Mr. Fan Zhixin (Co-Chairman) and Mr. Tian Rui (Co-Chairman), Non-executive Director Mr. Chen Yunwei, and Independent Non-executive Directors Mr. Liang Shuxin, Ms. Shao Qiongqiong, and Ms. Yin Xuhong[1](index=1&type=chunk) - The company's registered office is in the Cayman Islands, its principal place of business in Hong Kong is in Kowloon Bay, and its principal place of business and head office in China is in Yixing City, Jiangsu Province[1](index=1&type=chunk) [Banks, Auditor, and Share Information](index=2&type=section&id=%E9%8A%80%E8%A1%8C%E3%80%81%E6%A0%B8%E6%95%B8%E5%B8%AB%E5%8F%8A%E8%82%A1%E4%BB%BD%E4%BF%A1%E6%81%AF) This section provides basic information on the company's principal bankers, auditor, company website, and stock code - The principal bankers in Hong Kong are Bank of Communications (Hong Kong) Limited and CMB Wing Lung Bank Limited, while in China they are Jiangsu Yixing Rural Commercial Bank and China Construction Bank[2](index=2&type=chunk) - The company's auditor is Tianjian Deyang Certified Public Accountants Limited, its website is www.cnartfin.com.hk, and its stock code is 1572[2](index=2&type=chunk) [Management Discussion and Analysis](index=3&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) This section reviews the group's business performance, financial results, liquidity, and future outlook [Business Review](index=3&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) During the review period, the Group's art and asset pawnbroking business revenue significantly decreased, while art and asset auction business revenue grew substantially but still recorded a loss, and art and asset sales business revenue and profit both increased, becoming the main growth driver - The international and domestic markets continue to face challenges, prompting the Group to adjust its marketing strategies to navigate the unstable environment[3](index=3&type=chunk) [Art and Asset Pawnbroking Business](index=3&type=section&id=%E8%97%9D%E8%A1%93%E5%93%81%E5%8F%8A%E8%B3%87%E7%94%A2%E5%85%B8%E7%95%B6%E6%A5%AD%E5%8B%99) Both revenue and profit from the pawnbroking business significantly decreased, primarily due to lower interest rates and the suspension of new business caused by the relocation of the principal place of business in China; despite this, the Group experienced no defaults during the review period through effective risk management | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 4.0 | 10.9 | -63.3% | | Profit | 2.0 | 8.9 | -77.5% | - The decrease in revenue was primarily due to lower pawnbroking loan interest rates and the suspension of new business from March to May 2025 caused by the relocation of the principal place of business in China[4](index=4&type=chunk) - The Group employed a multi-layered internal approval and risk management system and engaged third-party appraisal agencies, resulting in no defaults in the pawnbroking business during H1 2025[5](index=5&type=chunk) [Art and Asset Auction Business](index=3&type=section&id=%E8%97%9D%E8%A1%93%E5%93%81%E5%8F%8A%E8%B3%87%E7%94%A2%E6%8B%8D%E8%B3%A3%E6%A5%AD%E5%8B%99) Auction business revenue significantly increased by approximately 15.3 times, but the loss slightly expanded due to increased operating costs | Metric | H1 2025 (RMB) | H1 2024 (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 98,000 | 6,000 | +15.3 times | | Loss | 278,000 | 259,000 | +7.3% | - The increase in loss was mainly due to higher operating costs for this business during the period[6](index=6&type=chunk) [Art and Asset Sales Business](index=3&type=section&id=%E8%97%9D%E8%A1%93%E5%93%81%E5%8F%8A%E8%B3%87%E7%94%A2%E9%8A%B7%E5%94%AE%E6%A5%AD%E5%8B%99) The art and asset sales business achieved significant growth in both revenue and profit, becoming the primary driver for the Group's diversified business and profit growth, as the company strengthened its market position by expanding its customer base and optimizing art trading strategies | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 39.2 | 25.8 | +51.9% | | Profit | 1.5 | 1.3 | +15.4% | - The increase in revenue and profit was primarily due to higher revenue from art trading during the review period[7](index=7&type=chunk) - The Group developed this business by identifying potential buyers, providing staff training, expanding its customer base, and acquiring cost-effective artworks such as Zisha pottery and calligraphy and paintings[7](index=7&type=chunk) [Financial Review](index=4&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) The Group's total revenue increased during the review period, but profit before tax and profit for the period significantly decreased due to reduced revenue from the art and asset pawnbroking business and increased central administrative expenses - Total revenue increased by **17.5% year-on-year** to approximately **RMB 43.2 million**, primarily driven by increased art sales revenue from the art and asset sales business[8](index=8&type=chunk) - Profit before tax decreased by **85.2% year-on-year** to approximately **RMB 1.2 million**, and profit for the period decreased by **94.4% year-on-year** to approximately **RMB 0.3 million**[18](index=18&type=chunk)[20](index=20&type=chunk) [Revenue](index=4&type=section&id=%E6%94%B6%E7%9B%8A) During the review period, the Group's total revenue increased by 17.5% year-on-year, primarily driven by the strong performance of the art and asset sales business | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | 43.2 | 36.8 | +17.5% | - The increase in revenue was mainly due to higher art sales revenue from the art and asset sales business[8](index=8&type=chunk) [Other Income](index=4&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) Other income decreased by 33.7% year-on-year, primarily due to a reduction in bank interest income | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Other Income | 0.2 | 0.3 | -33.7% | [Other Gains / (Losses) Net](index=4&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E2%97%95%EF%BC%88%E虧%E6%90%8D%EF%BC%89%E6%B7%A8%E9%A1%8D) The period saw a net other gain of RMB 0.1 million, a turnaround from a net loss of RMB 0.2 million in the same period last year | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | | :--- | :--- | :--- | | Other Gains Net | 0.1 | (0.2) | [Cost of Inventories Sold](index=4&type=section&id=%E5%B7%B2%E5%94%AE%E5%AD%98%E8%B2%A8%E6%88%90%E6%9C%AC) The cost of inventories sold increased year-on-year, reflecting the growth in sales volume of the art and asset sales business | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Cost of Inventories Sold | 35.6 | 23.0 | +54.8% | [Reversal / (Recognition) of Impairment Losses, Net](index=4&type=section&id=%E6%92%A5%E5%9B%9E%E2%97%95%EF%BC%88%E7%A2%BA%E8%AA%8D%EF%BC%89%E6%B8%9B%E5%80%BC%E虧%E6%90%8D%E6%B7%A8%E9%A1%8D) Net impairment losses on pawnbroking loans shifted from recognition last year to a reversal this period, indicating an improvement in asset quality | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Net Impairment Losses | Reversal 13 | Recognition (99) | [Staff Costs](index=4&type=section&id=%E5%93%A1%E5%B7%A5%E6%88%90%E6%9C%AC) Staff costs increased by 31.8% year-on-year, primarily due to an increase in the average number of employees and senior positions | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Staff Costs | 2.9 | 2.2 | +31.8% | [Depreciation of Property, Plant and Equipment](index=4&type=section&id=%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%A8%AD%E5%82%99%E6%8A%98%E8%88%8A) Depreciation of property, plant and equipment remained stable, with no significant additions or disposals during the period | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | | :--- | :--- | :--- | | Depreciation | 0.1 | 0.1 | [Depreciation of Right-of-Use Assets](index=4&type=section&id=%E4%BD%BF%E7%94%A8%E6%AC%8A%E8%B3%87%E7%94%A2%E6%8A%98%E8%88%8A) Depreciation of right-of-use assets remained stable | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | | :--- | :--- | :--- | | Depreciation | 0.3 | 0.3 | [Advertising and Promotion Expenses](index=4&type=section&id=%E5%BB%A3%E5%91%8A%E5%8F%8A%E6%8E%A8%E5%BB%A3%E9%96%8B%E6%94%AF) Advertising and promotion expenses increased, aiming to enhance brand value and promote business activities | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Advertising and Promotion Expenses | 1.5 | 1.2 | +25.0% | [Other Expenses](index=4&type=section&id=%E5%85%B6%E4%BB%96%E9%96%8B%E6%94%AF) Other expenses decreased by 13.0% year-on-year, primarily due to a reduction in legal and professional fees | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Other Expenses | 2.0 | 2.3 | -13.0% | [Profit Before Tax](index=5&type=section&id=%E9%99%A4%E7%A8%85%E5%89%8D%E6%BA%A2%E5%88%A9) Profit before tax significantly decreased by 85.2%, mainly impacted by reduced pawnbroking business revenue and increased central administrative expenses | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Profit Before Tax | 1.2 | 8.1 | -85.2% | [Income Tax Expense](index=5&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Income tax expense decreased by 66.7% year-on-year, primarily due to a reduction in taxable profit | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Income Tax Expense | 0.9 | 2.7 | -66.7% | [Profit for the Period](index=5&type=section&id=%E6%9C%9F%E5%85%A7%E6%BA%A2%E5%88%A9) Profit for the period significantly decreased by 94.4%, reflecting challenges in the pawnbroking business and overall operating cost pressures | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Profit for the Period | 0.3 | 5.4 | -94.4% | [Liquidity, Financial Resources, and Capital Structure](index=5&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E3%80%81%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90%E5%8F%8A%E8%B3%87%E6%9C%AC%E6%9E%B6%E6%A7%8B) The Group's financial position remains robust, primarily funding operations through internal cash flow; despite a decrease in total bank balances and cash, there are no bank borrowings or significant asset pledges, maintaining a low gearing ratio - The Group primarily funds its working capital, capital expenditure, and other capital requirements through internally generated cash flow[21](index=21&type=chunk) - As of June 30, 2025, the Group's total bank balances and cash amounted to approximately **RMB 588.0 million**, a **10.0% decrease** compared to December 31, 2024[22](index=22&type=chunk) - As of June 30, 2025, and December 31, 2024, the Group had no bank borrowings or significant assets pledged[22](index=22&type=chunk) [Net Cash Flow](index=5&type=section&id=%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E6%B7%A8%E9%A1%8D) Net cash used in operating activities significantly increased, while net cash from investing and financing activities decreased, leading to a reduction in cash and cash equivalents at period-end | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (68,273) | (14,927) | | Net Cash From Investing Activities | 462 | 695 | | Net Cash From Financing Activities | 2,248 | 2,638 | - As of June 30, 2025, total bank balances and cash were approximately **RMB 588.0 million**, a **10.0% decrease** from December 31, 2024[22](index=22&type=chunk) [Gearing Ratio](index=6&type=section&id=%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E6%AF%94%E7%8E%87) The gearing ratio slightly increased but remains at a low level, indicating minimal financial leverage risk for the company | Date | Gearing Ratio | | :--- | :--- | | June 30, 2025 | 1.8% | | December 31, 2024 | 1.6% | [Contingent Liabilities](index=6&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of the end of the reporting period, the Group had no significant contingent liabilities or off-balance sheet commitments - As of June 30, 2025, and December 31, 2024, the Group had no significant contingent liabilities or any other off-balance sheet commitments and arrangements[25](index=25&type=chunk) [Capital Expenditure](index=6&type=section&id=%E8%B3%87%E6%9C%AC%E9%96%8B%E6%94%AF) Capital expenditure significantly increased this period, primarily for the acquisition of property, plant and equipment | Metric | H1 2025 (RMB million) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Capital Expenditure for Property, Plant and Equipment | 0.5 | 2 | [Capital Commitments](index=6&type=section&id=%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94) As of the end of the reporting period, the Group had no significant capital commitments - As of June 30, 2025, and December 31, 2024, the Group had no significant capital commitments[27](index=27&type=chunk) [Events After Reporting Period](index=6&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) Subsequent to the reporting period, the company received a statutory demand for payment of approximately HKD 8.45 million in outstanding loans and interest - On August 29, 2025, the company received a statutory demand for payment of approximately **HKD 8,453,639.89** in outstanding loans and interest, failing which the creditor may file a winding-up petition[28](index=28&type=chunk) [Human Resources and Training](index=6&type=section&id=%E4%BA%BA%E5%8A%9B%E8%B3%87%E6%BA%90%E5%8F%8A%E5%9F%B9%E8%A8%93) The Group's employee count slightly increased, with remuneration policies based on performance, qualifications, experience, and market practices, offering various benefits | Date | Number of Employees | | :--- | :--- | | June 30, 2025 | 45 | | December 31, 2024 | 44 | - Employee remuneration policies are determined based on performance, qualifications, experience, and prevailing market practices, including salaries, medical insurance, MPF, and discretionary year-end bonuses[29](index=29&type=chunk) [Foreign Exchange Risk](index=6&type=section&id=%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA) The Group's assets and liabilities are primarily denominated in RMB, and foreign exchange risk is not significant, with continuous monitoring of exchange rate fluctuations - The Group's monetary assets and liabilities are mostly denominated in RMB, and business transactions are primarily conducted in RMB and HKD, thus foreign exchange risk is not significant[30](index=30&type=chunk) - For the six months ended June 30, 2025, the Group did not enter into any foreign exchange hedging arrangements but will regularly review and consider using derivative financial instruments to hedge risks when necessary[30](index=30&type=chunk) [Outlook and Prospects](index=6&type=section&id=%E5%B1%95%E6%9C%9B%E5%8F%8A%E5%89%8D%E6%99%AF) Facing global economic challenges and sluggish domestic consumption in China, the Group will maintain a cautious approach and actively adjust strategies across its business segments, including strengthening auction market promotion, prudent lending, expanding digital financial services, and exploring new AI and EV-related businesses to enhance financial performance - The global economic environment remains challenging, including persistent inflation, geopolitical tensions, and divergent growth trajectories; domestic consumption in China is sluggish, particularly in the high-end luxury goods sector[31](index=31&type=chunk) - The Group will maintain a cautious approach, balancing risk management with strategic opportunities in its core business areas[31](index=31&type=chunk) [Art and Asset Auction Business](index=7&type=section&id=%E8%97%9D%E8%A1%93%E5%93%81%E5%8F%8A%E8%B3%87%E7%94%A2%E6%8B%8D%E8%B3%A3%E6%A5%AD%E5%8B%99_%E5%B1%95%E6%9C%9B) The Group is actively adjusting its auction strategy, intensifying regional and multi-channel market promotion, and exploring the use of advanced technologies such as AI-driven sales strategies to enhance the auction experience and unlock new opportunities - The Group is actively adjusting its auction strategy, intensifying regional and multi-channel market promotion, and maintaining communication with local governments to ensure safe and effective auction activities[32](index=32&type=chunk) - It is actively exploring the use of digital platforms and Artificial Intelligence (AI)-driven sales strategies to enhance the auction experience and unlock new opportunities[32](index=32&type=chunk) [Art and Asset Pawnbroking Business](index=7&type=section&id=%E8%97%9D%E8%A1%93%E5%93%81%E5%8F%8A%E8%B3%87%E7%94%A2%E5%85%B8%E7%95%B6%E6%A5%AD%E5%8B%99_%E5%B1%95%E6%9C%9B) In China's interest rate reduction environment, the Group will adopt a prudent lending strategy, prioritizing capital security, while strengthening its risk assessment framework to address the impact of economic uncertainty on collateral valuation - In a declining interest rate environment, the Group adopts a prudent lending strategy, prioritizing capital security, and cautiously expanding its loan business to eligible customers[33](index=33&type=chunk) - Strengthening the risk assessment framework will be a core focus to enhance loan security and operational efficiency, addressing the impact of economic uncertainty on collateral valuation[33](index=33&type=chunk) [Art and Asset Sales Business](index=7&type=section&id=%E8%97%9D%E8%A1%93%E5%93%81%E5%8F%8A%E8%B3%87%E7%94%A2%E9%8A%B7%E5%94%AE%E6%A5%AD%E5%8B%99_%E5%B1%95%E6%9C%9B) Facing increased competition, the Group will leverage its collector network advantage to generate profit through buying and selling spreads, agency services, and auction commissions; simultaneously, it plans to develop county-level digital economic financial services and a secure digital closed-loop for fresh agricultural product supply chains, and explore new AI and EV-related businesses to drive innovation and growth - The Group will leverage its extensive network of collectors to identify and sell artworks in high market demand, generating profit through the spread between acquisition and selling prices, agency service fees, and auction commissions[34](index=34&type=chunk) - It plans to develop county-level digital economic financial services and build a secure digital closed-loop for fresh agricultural product supply chains to expand its business layout in digital financial services[34](index=34&type=chunk) - The Group will explore cooperation opportunities arising from AI and electric vehicle development to launch new related businesses, significantly enhancing overall financial performance[34](index=34&type=chunk) [Directors' and Chief Executive's Interests and Short Positions in Shares, Related Shares and Debentures](index=8&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E6%9C%80%E9%AB%98%E8%A1%8C%E6%94%BF%E4%BA%BA%E5%93%A1%E6%96%BC%E8%82%A1%E4%BB%BD%E3%80%81%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E5%8F%8A%E5%82%B5%E5%88%B8%E4%B9%8B%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) This section discloses the interests and short positions of directors and the chief executive in the company's shares and related securities [Disclosure of Directors' and Chief Executive's Interests](index=8&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E6%9C%80%E9%AB%98%E8%A1%8C%E6%94%BF%E4%BA%BA%E5%93%A1%E6%AC%8A%E7%9B%8A%E6%8A%AB%E9%9C%B2) As of June 30, 2025, none of the company's directors or chief executive held any interests or short positions in the shares, related shares, or debentures of the company or its associated corporations that are required to be disclosed under the Securities and Futures Ordinance or the Listing Rules - As of June 30, 2025, none of the company's directors or chief executive held any disclosable interests or short positions in the shares, related shares, or debentures of the company or its associated corporations[35](index=35&type=chunk) [Substantial Shareholders' Interests and Short Positions in Shares, Related Shares and Debentures](index=8&type=section&id=%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1%E6%96%BC%E8%82%A1%E4%BB%BD%E5%8F%8A%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E4%B9%8B%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) This section details the interests and short positions of substantial shareholders in the company's shares and related securities [Overview of Substantial Shareholders' Holdings](index=8&type=section&id=%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1%E6%8C%81%E8%82%A1%E6%A6%82%E6%B3%81) As of June 30, 2025, several substantial shareholders, including Hanxin Investment, Jinsha Investment, Ziyu Investment, and Mr. Fan Zhijun and parties acting in concert, held approximately 59.64% long positions and 59.62% short positions in the company's shares | Shareholder Name / Company Name | Nature of Interest / Capacity | Number of Shares (thousand shares) | Approximate Percentage of Holding | | :--- | :--- | :--- | :--- | | Hanxin Investment Limited | Beneficial Owner | 1,000,768 (L) | 59.64% | | | | 1,000,384 (S) | 59.62% | | Jinsha Investment Limited | Interest in Controlled Corporation | 1,000,768 (L) | 59.64% | | | | 1,000,384 (S) | 59.62% | | Ziyu Investment Limited | Interest in Controlled Corporation | 1,000,768 (L) | 59.64% | | | | 1,000,384 (S) | 59.62% | | Mr. Fan Zhijun | Interest in Controlled Corporation and Jointly Held with Other Persons | 1,000,768 (L) | 59.64% | | | | 1,000,384 (S) | 59.62% | - Mr. Fan Zhijun, Ms. Fan Qinzi, Mr. Fan Yajun, Ms. Wu Jian, and Ms. Xu Min collectively control approximately **59.64%** of the share interests through Ziyu Investment, Jinsha Investment, and Hanxin Investment, and have entered into a confirmation of acting in concert[39](index=39&type=chunk) - Winwin International Strategic Investment Funds SPC ("WIS") holds a guaranteed interest in **1,000,384,000 shares** of the company[37](index=37&type=chunk)[39](index=39&type=chunk) [Other Information](index=10&type=section&id=%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) This section covers various corporate governance and operational details, including share option schemes, securities transactions, and audit committee activities [Share Option Scheme](index=10&type=section&id=%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%A8%88%E5%8A%83) The company has a share option scheme to incentivize eligible participants, but no share options were granted, exercised, cancelled, lapsed, and/or remained outstanding for the six months ended June 30, 2025 - The share option scheme was adopted on October 14, 2016, to grant share options to employees, directors, and other eligible participants, and will expire on October 13, 2026[40](index=40&type=chunk) - For the six months ended June 30, 2025, and 2024, no share options under the scheme were granted, exercised, cancelled, lapsed, and/or remained outstanding[41](index=41&type=chunk) [Purchase, Sale or Redemption of the Company's Securities](index=10&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E8%AD%89%E5%88%B8) During the review period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any listed securities - During the review period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[43](index=43&type=chunk) [Audit Committee](index=10&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Audit Committee, composed of three independent non-executive directors, is responsible for reviewing and overseeing the Group's financial reporting process and internal controls, and has reviewed the interim financial statements for the period without objection - The Audit Committee comprises three independent non-executive directors: Mr. Liang Shuxin (Chairman), Ms. Shao Qiongqiong, and Ms. Yin Xuhong[44](index=44&type=chunk) - The Audit Committee has reviewed the Group's unaudited condensed consolidated interim financial statements for the six months ended June 30, 2025, and had no objections to the accounting treatments adopted[44](index=44&type=chunk) [Rights to Purchase Company's Securities](index=10&type=section&id=%E8%B3%BC%E8%B2%B7%E6%9C%AC%E5%85%AC%E5%8F%B8%E8%AD%89%E5%88%B8%E7%9A%84%E6%AC%8A%E5%88%A9) For the six months ended June 30, 2025, neither the company nor any of its subsidiaries entered into any arrangements that would entitle directors to subscribe for the company's securities or benefit from purchasing shares or debentures of the company or any other corporation - For the six months ended June 30, 2025, neither the company nor any of its subsidiaries entered into any arrangements that would entitle directors to subscribe for the company's securities or benefit from purchasing shares or debentures of the company or any other corporation[45](index=45&type=chunk) [Dividends](index=10&type=section&id=%E8%82%A1%E6%81%AF) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 (2024: nil)[46](index=46&type=chunk) [Directors' Securities Transactions](index=10&type=section&id=%E8%91%A3%E4%BA%8B%E7%9A%84%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93) All directors confirmed compliance with the standard code adopted by the company for securities transactions during the review period - Following specific inquiries with all directors, all directors confirmed that they had complied with the required standards of dealing as set out in the standard code for the six months ended June 30, 2025[47](index=47&type=chunk) [Compliance with Corporate Governance Report](index=11&type=section&id=%E9%81%B5%E5%AE%88%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%A0%B1%E5%91%8A) The company has complied with the applicable code provisions of the Corporate Governance Code as set out in Appendix C1 of the Listing Rules during the review period - The company has complied with the applicable code provisions of the Corporate Governance Code as set out in Appendix C1 of the Listing Rules for the six months ended June 30, 2025[48](index=48&type=chunk) [Acknowledgement](index=11&type=section&id=%E9%B3%A5%E8%AC%9D) The Board extends its sincere gratitude to the directors, management, and staff for their contributions and excellent performance during the review period - The Board extends its sincere gratitude to the directors, management, and staff for their contributions and excellent performance during the review period[49](index=49&type=chunk) [Condensed Consolidated Financial Statements](index=12&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section presents the group's condensed consolidated financial statements, including the income statement, balance sheet, equity changes, and cash flow statement [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=12&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) This statement presents the Group's revenue, expenses, profit before tax, income tax expense, and profit for the period, as well as other comprehensive income, showing a significant decrease in profit for the period | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 43,220 | 36,778 | | Profit Before Tax | 1,195 | 8,085 | | Income Tax Expense | (940) | (2,669) | | Profit for the Period Attributable to Owners of the Company | 255 | 5,416 | | Total Comprehensive Income for the Period Attributable to Owners of the Company | 391 | 5,369 | | Basic and Diluted Earnings Per Share (RMB cents) | 0.02 | 0.32 | [Condensed Consolidated Statement of Financial Position](index=13&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) This statement presents the Group's non-current assets, current assets, current liabilities, non-current liabilities, and total equity as of June 30, 2025, showing a slight increase in total assets but a decrease in bank balances and cash | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current Assets | 2,862 | 2,056 | | Current Assets | 1,134,854 | 1,133,123 | | Current Liabilities | 26,594 | 24,714 | | Non-current Liabilities | 452 | 186 | | Total Equity | 1,110,670 | 1,110,279 | - Inventories significantly increased to **RMB 101,000 thousand** (December 31, 2024: RMB 32,000 thousand), primarily comprising Zisha pottery and calligraphy and paintings[53](index=53&type=chunk)[96](index=96&type=chunk) - Bank balances and cash decreased to **RMB 588,009 thousand** (December 31, 2024: RMB 653,570 thousand)[53](index=53&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=14&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) This statement details the changes in the Group's share capital, share premium, statutory reserve, capital reserve, exchange reserve, and retained profits during the review period, reflecting the impact of profit for the period and other comprehensive income on total equity | Metric | June 30, 2025 (RMB thousand) | June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Share Capital | 14,793 | 14,793 | | Share Premium | 199,999 | 199,999 | | Statutory Reserve | 82,944 | 82,521 | | Capital Reserve | 172,301 | 172,301 | | Exchange Reserve | (1,258) | (1,283) | | Retained Profits | 641,891 | 642,952 | | Total | 1,110,670 | 1,111,283 | - Profit for the period was **RMB 255 thousand**, and other comprehensive income for the period was **RMB 136 thousand**, resulting in a total comprehensive income for the period of **RMB 391 thousand**[55](index=55&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=15&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) This statement provides details of the Group's cash flows from operating, investing, and financing activities during the review period, showing a significant increase in net cash used in operating activities, leading to a decrease in cash and cash equivalents | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (68,273) | (14,927) | | Net Cash From Investing Activities | 462 | 695 | | Net Cash From Financing Activities | 2,248 | 2,638 | | Net Decrease in Cash and Cash Equivalents | (65,563) | (11,594) | | Cash and Cash Equivalents at End of Period | 588,009 | 684,226 | - Net cash used in operating activities increased from **RMB 14,927 thousand** to **RMB 68,273 thousand**, primarily due to increased cash outflows from operating activities[57](index=57&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=16&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) This section provides detailed notes to the condensed consolidated financial statements, explaining accounting policies, segment information, and specific financial items [1. General Information and Basis of Preparation](index=16&type=section&id=1.%20%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99%E5%8F%8A%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) This note explains the basis of preparation for the Group's condensed consolidated financial statements, which comply with HKAS 34 and are presented in RMB, and details the structure for exercising control over Hexin Pawnbroking and Hexin Auction through contractual arrangements - The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of Appendix D2 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[59](index=59&type=chunk) - The Group exercises effective control over the economic benefits of Hexin Pawnbroking and Hexin Auction through contractual arrangements and treats them as indirect wholly-owned subsidiaries of the company[61](index=61&type=chunk)[62](index=62&type=chunk)[63](index=63&type=chunk) [2. Significant Accounting Policies Information](index=17&type=section&id=2.%20%E9%87%8D%E8%A6%81%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96%E8%B3%87%E6%96%99) This note states that the condensed consolidated financial statements are prepared on a historical cost basis and indicates that the application of revised HKFRSs during the period had no significant impact on the financial position and performance - The condensed consolidated financial statements are prepared on a historical cost basis, and the accounting policies and methods of computation used are the same as those adopted in the annual financial statements for the year ended December 31, 2024, except for changes in accounting policies resulting from the application of revised Hong Kong Financial Reporting Standards[65](index=65&type=chunk) - The application of a revised HKFRS (HKAS 21 (Amendment) Lack of Exchangeability) during this interim period had no significant impact on the Group's financial position and performance[66](index=66&type=chunk) [3. Revenue and Segment Information](index=17&type=section&id=3.%20%E6%94%B6%E7%9B%8A%E5%8F%8A%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) This note provides a detailed analysis of the Group's revenue and results by business segment, including pawnbroking, auction, and sales businesses, and offers revenue disaggregation information by asset class, geographical location, and major customers - External reportable segment information is analyzed by art and asset pawnbroking business, art and asset auction business, and art and asset sales business, consistent with internal information regularly reviewed by the chief operating decision maker[72](index=72&type=chunk) [Revenue (Notes)](index=17&type=section&id=%E6%94%B6%E7%9B%8A_%E9%99%84%E8%A8%BB) The Group's revenue primarily derives from interest income from the art and asset pawnbroking business, art sales from the art and asset sales business, and auction revenue from the art and asset auction business, with art sales revenue significantly increasing while pawnbroking interest income substantially decreased | Revenue Source | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest Income from Art and Asset Pawnbroking Business | 3,963 | 10,931 | | Art Sales from Art and Asset Sales Business | 39,159 | 25,841 | | Auction Revenue from Art and Asset Auction Business | 98 | 6 | | **Total** | **43,220** | **36,778** | - Interest income from the art and asset pawnbroking business decreased by **63.7% year-on-year**, while art sales revenue from the art and asset sales business increased by **51.5% year-on-year**[67](index=67&type=chunk) [Disaggregation of Revenue from Contracts with Customers for Art and Asset Sales Business](index=18&type=section&id=%E8%97%9D%E8%A1%93%E5%93%81%E5%8F%8A%E8%B3%87%E7%94%A2%E9%8A%B7%E5%94%AE%E6%A5%AD%E5%8B%99%E4%B9%8B%E9%8A%B7%E5%94%AE%E8%97%9D%E8%A1%93%E5%93%81%E5%AE%A2%E6%88%B6%E5%90%88%E7%B4%84%E6%94%B6%E7%9B%8A%E5%88%86%E6%8B%86) Art sales revenue primarily comes from Zisha pottery and calligraphy and paintings, with Zisha pottery sales significantly increasing, and all sales originating from China (excluding Hong Kong) | Asset Class Sold | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Zisha Pottery | 37,124 | 14,115 | | Calligraphy and Paintings | 2,035 | 11,726 | | **Total** | **39,159** | **25,841** | - In H1 2025, Zisha pottery sales increased by **163.0% year-on-year**, while calligraphy and painting sales decreased by **82.6% year-on-year**[70](index=70&type=chunk) - All art sales revenue originated from China (excluding Hong Kong)[70](index=70&type=chunk) [Disaggregation of Revenue from Contracts with Customers for Art and Asset Auction Business](index=18&type=section&id=%E8%97%9D%E8%A1%93%E5%93%81%E5%8F%8A%E8%B3%87%E7%94%A2%E6%8B%8D%E8%B3%A3%E6%A5%AD%E5%8B%99%E4%B9%8B%E6%8B%8D%E8%B3%A3%E6%94%B6%E7%9B%8A%E4%B9%8B%E5%AE%A2%E6%88%B6%E5%90%88%E7%B4%84%E6%94%B6%E7%9B%8A%E5%88%86%E6%8B%86) Auction revenue primarily comes from commercial properties and parking spaces, with all auction revenue originating from China (excluding Hong Kong) | Asset Class Auctioned | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Commercial Properties and Parking Spaces | 98 | – | | Others | – | 6 | | **Total** | **98** | **6** | - In H1 2025, auction revenue primarily came from commercial properties and parking spaces, whereas in H1 2024, it mainly came from other categories[70](index=70&type=chunk) - All auction revenue originated from China (excluding Hong Kong)[70](index=70&type=chunk) [Segment Information](index=19&type=section&id=%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) This section provides a detailed analysis of revenue, results, assets, and liabilities by operating segment, showing that the art and asset sales business was the only segment to achieve profit growth, while the pawnbroking business experienced a significant decline in profit - Segment results refer to the performance of each segment, with other income, other gains/(losses) net, central administrative expenses, and finance costs not allocated[72](index=72&type=chunk) [Segment Revenue and Results](index=19&type=section&id=%E5%88%86%E9%83%A8%E6%94%B6%E7%9B%8A%E5%8F%8A%E6%A5%AD%E7%B8%BE) Segment revenue and results for the art and asset sales business grew significantly, while those for the art and asset pawnbroking business substantially decreased, and the art and asset auction business remained in a loss-making state | Segment | 2025 Revenue (RMB thousand) | 2025 Results (RMB thousand) | 2024 Revenue (RMB thousand) | 2024 Results (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Art and Asset Pawnbroking Business | 3,963 | 1,985 | 10,931 | 8,870 | | Art and Asset Auction Business | 98 | (278) | 6 | (259) | | Art and Asset Sales Business | 39,159 | 1,513 | 25,841 | 1,281 | | **Total** | **43,220** | **3,220** | **36,778** | **9,892** | - The segment results of the art and asset pawnbroking business decreased by **77.6% year-on-year**, while the segment results of the art and asset sales business increased by **18.1% year-on-year**[73](index=73&type=chunk)[75](index=75&type=chunk) [Segment Assets and Liabilities](index=21&type=section&id=%E5%88%86%E9%83%A8%E8%B3%87%E7%94%A2%E5%8F%8A%E8%B2%A0%E5%82%B5) The art and asset pawnbroking business remains the segment with the largest asset scale, while assets of the art and asset sales business significantly increased, and bank balances and cash account for the largest portion of unallocated assets | Segment | 2025 Assets (RMB thousand) | December 31, 2024 Assets (RMB thousand) | | :--- | :--- | :--- | | Art and Asset Pawnbroking Business | 446,719 | 447,500 | | Art and Asset Auction Business | 234 | 347 | | Art and Asset Sales Business | 101,227 | 32,341 | | **Total Segment Assets** | **548,180** | **480,188** | - Segment assets of the art and asset sales business significantly increased by **213.0%**, primarily reflecting an increase in inventories[77](index=77&type=chunk)[79](index=79&type=chunk) - As of June 30, 2025, bank balances and cash within unallocated assets amounted to **RMB 588,009 thousand**[77](index=77&type=chunk) [Other Segment Information](index=23&type=section&id=%E5%85%B6%E4%BB%96%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) Additions to property, plant and equipment and right-of-use assets during the period primarily occurred in the art and asset pawnbroking business, reflecting capital investment in that segment | Metric | Art and Asset Pawnbroking Business (RMB thousand) | Art and Asset Auction Business (RMB thousand) | Art and Asset Sales Business (RMB thousand) | Total (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | 2025 Additions to Property, Plant and Equipment | 503 | – | – | 503 | | 2025 Additions to Right-of-Use Assets | 702 | – | – | 702 | | 2025 Depreciation of Property, Plant and Equipment | 98 | – | – | 98 | | 2025 Depreciation of Right-of-Use Assets | 120 | 113 | 114 | 347 | [Geographical Information](index=24&type=section&id=%E5%9C%B0%E5%8D%80%E8%B3%87%E6%96%99) All of the Group's revenue and designated non-current assets are located in China (excluding Hong Kong) | Region | 2025 Revenue from External Customers (RMB thousand) | 2024 Revenue from External Customers (RMB thousand) | 2025 Designated Non-current Assets (RMB thousand) | 2024 Designated Non-current Assets (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | China, excluding Hong Kong | 43,220 | 36,778 | 1,608 | 933 | - The Group's business operations and major assets are concentrated in mainland China[84](index=84&type=chunk) [Information About Major Customers](index=24&type=section&id=%E6%9C%89%E9%97%9C%E4%B8%BB%E8%A6%81%E5%AE%A2%E6%88%B6%E7%9A%84%E8%B3%87%E6%96%99) During the period, three major customers (Customers A, B, and C) contributed over 10% of total revenue, primarily from the art and asset sales business | Customer | 2025 (RMB thousand) | 2024 (RMB thousand) | Revenue Source | | :--- | :--- | :--- | :--- | | Customer A | 18,142 | – | Art and Asset Sales Business | | Customer B | 9,912 | – | Art and Asset Sales Business | | Customer C | 7,080 | 4,425 | Art and Asset Sales Business | - In H1 2025, Customers A, B, and C contributed significant revenue to the Group, with Customer A being the largest contributor[85](index=85&type=chunk) [4. Reversal / (Recognition) of Impairment Losses, Net](index=25&type=section&id=4.%20%E6%92%A5%E5%9B%9E%E2%97%95%EF%BC%88%E7%A2%BA%E8%AA%8D%EF%BC%89%E6%B8%9B%E5%80%BC%E虧%E6%90%8D%E6%B7%A8%E9%A1%8D) Net impairment losses on pawnbroking loans shifted from recognition last year to a reversal this period, reflecting changes in the assessment of expected credit losses | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Reversal / (Recognition) of Impairment Losses, Net for Customer Loans in Art and Asset Pawnbroking Business | 13 | (99) | - The basis for determining the input data and assumptions for expected credit losses of financial assets is consistent with those used in the preparation of the 2024 annual financial statements[87](index=87&type=chunk) [5. Income Tax Expense](index=25&type=section&id=5.%20%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Income tax expense significantly decreased year-on-year, primarily due to a reduction in taxable profit, with Chinese subsidiaries taxed at 25% and no taxable profit in Hong Kong | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Current Tax | 983 | 2,732 | | Deferred Tax Credit | (43) | (63) | | **Total** | **940** | **2,669** | - The company's subsidiaries established in China were taxed at a rate of **25%** for the six months ended June 30, 2025, and 2024, with no taxable profit in Hong Kong[88](index=88&type=chunk) [6. Profit for the Period](index=26&type=section&id=6.%20%E6%9C%9F%E5%85%A7%E6%BA%A2%E5%88%A9) This note details various income and expenses affecting profit for the period, including staff costs, finance costs, exchange gains/losses, bank interest income, and depreciation | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Total Staff Costs | 2,896 | 2,240 | | Total Finance Costs | 85 | 25 | | Net Exchange (Gains) / Losses | (222) | 74 | | Bank Interest Income | (462) | (697) | | Depreciation of Property, Plant and Equipment | 98 | 120 | | Depreciation of Right-of-Use Assets | 347 | 320 | - Staff costs increased, finance costs significantly rose, while bank interest income decreased[90](index=90&type=chunk) [7. Dividends](index=27&type=section&id=7.%20%E8%82%A1%E6%81%AF) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 (for the six months ended June 30, 2024: nil)[92](index=92&type=chunk) [8. Earnings Per Share](index=27&type=section&id=8.%20%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) Basic and diluted earnings per share significantly decreased this period, consistent with the trend of reduced profit for the period | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit for the Period for Calculating Basic and Diluted Earnings Per Share | 255 | 5,416 | | Weighted Average Number of Ordinary Shares (thousand shares) | 1,690,500 | 1,682,533 | | Basic and Diluted Earnings Per Share (RMB cents) | 0.02 | 0.32 | - As there were no potentially dilutive ordinary shares outstanding during both periods, diluted earnings per share are the same as basic earnings per share[93](index=93&type=chunk) [9. Movements in Property, Plant and Equipment and Right-of-Use Assets](index=28&type=section&id=9.%20%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%A8%AD%E5%82%99%E5%8F%8A%E4%BD%BF%E7%94%A8%E6%AC%8A%E8%B3%87%E7%94%A2%E8%AE%8A%E5%8B%95) Additions to property, plant and equipment significantly increased this period, new right-of-use assets were recognized, and some property, plant and equipment were disposed of | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Acquisition of Property, Plant and Equipment | 503 | 2 | | Additions to Right-of-Use Assets | 702 | – | | Loss on Disposal of Property, Plant and Equipment | 85 | – | - The Group entered into a lease agreement for office premises during the period, recognizing additions to right-of-use assets of **RMB 702,000**[95](index=95&type=chunk) [10. Inventories](index=28&type=section&id=10.%20%E5%AD%98%E8%B2%A8) Total inventories significantly increased, primarily driven by an increase in calligraphy and painting inventories, reflecting the inventory strategy of the art and asset sales business | Category | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Zisha Pottery | 38,500 | 32,000 | | Calligraphy and Paintings | 62,500 | – | | **Total** | **101,000** | **32,000** | - For the six months ended June 30, 2025, the cost of inventories recognized as an expense and included in "Cost of inventories sold" was **RMB 35,600,000**[96](index=96&type=chunk) [11. Loans Receivable](index=29&type=section&id=11.%20%E6%87%89%E6%94%B6%E8%B2%B8%E6%AC%BE) Total loans receivable slightly decreased, primarily from the art and asset pawnbroking business, with loan terms generally within three months, a maximum of six months, and annual interest rates ranging from approximately 6% to 12%; all loans are collateralized by pawnbroked items and are not overdue | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Customer Loans for Art and Asset Pawnbroking | 449,587 | 451,283 | | Less: Impairment Provision | (4,028) | (4,015) | | **Total** | **445,572** | **447,255** | - Loan terms are generally within three months, with a maximum term of six months from the initial grant date, and annual interest rates ranging from approximately **6% to 12%**[98](index=98&type=chunk) - All art and asset pawnbroking loans are collateralized by pawnbroked items (primarily Zisha pottery and calligraphy and paintings) and were not overdue at the end of the reporting period[99](index=99&type=chunk)[100](index=100&type=chunk) [12. Accrued Expenses and Other Payables](index=30&type=section&id=12.%20%E6%87%89%E8%A8%88%E8%B2%BB%E7%94%A8%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) Total accrued expenses and other payables increased, mainly due to new other loans and payables for property, plant and equipment acquisitions, while some amounts due to directors were settled by other lenders on behalf of the Group | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Accrued Expenses | 3,125 | 4,482 | | Loans from a Former Director | 7,316 | 7,243 | | Amount Due to a Director | – | 5,564 | | Amount Due to a Director of a Company Subsidiary | – | 4,897 | | Payables for Acquisition of Property, Plant and Equipment | 503 | – | | Other Loans | 12,618 | – | | **Total** | **25,040** | **23,423** | - Loans from a former director as of June 30, 2025, were unsecured, interest-bearing, and repayable on demand[103](index=103&type=chunk) - New other loans of **RMB 12,618 thousand** were incurred during the period, representing unsecured revolving credit facilities entered into with independent third parties at an annual interest rate of **5%**[103](index=103&type=chunk) [13. Share Capital](index=31&type=section&id=13.%20%E8%82%A1%E6%9C%AC) The company's share capital structure remained stable, with 1,690,500 thousand issued and fully paid shares, each with a par value of HKD 0.01 | Metric | Number of Shares (thousand shares) | Amount (RMB thousand) | | :--- | :--- | :--- | | Authorized Share Capital | 5,000,000 | 43,420 | | Issued and Fully Paid Share Capital | 1,690,500 | 14,793 | - On April 26, 2024, the company completed the issuance of **12,500,000 new ordinary shares** at **HKD 0.12 per share** to an independent third party, with net proceeds of approximately **RMB 1,319,000**[105](index=105&type=chunk) [14. Share-based Payments](index=32&type=section&id=14.%20%E8%82%A1%E4%BB%BD%E5%9F%BA%E7%A4%8E%E4%BB%98%E6%AC%BE) This note details the terms of the share option scheme, including eligible participants, grant limits, exercise price determination, and validity period, reiterating no share option activity during the period - The share option scheme aims to incentivize directors and eligible participants, with the total number not exceeding **10%** of the company's issued shares on the date trading commenced on the Stock Exchange (i.e., **160,000,000 shares**)[108](index=108&type=chunk)[109](index=109&type=chunk) - The exercise price of share options shall not be less than the highest of the closing price on the grant date, the average closing price for the five business days immediately preceding the grant date, and the nominal value of the shares[110](index=110&type=chunk) - For the six months ended June 30, 2025, and 2024, no share options under the scheme were granted, exercised, cancelled, lapsed, and/or remained outstanding[113](index=113&type=chunk) [15. Related Party Disclosures](index=33&type=section&id=15.%20%E9%97%9C%E8%81%AF%E6%96%B9%E6%8A%AB%E9%9C%B2) This note discloses the remuneration of key management personnel during the period, including salaries, allowances, and contributions to retirement benefit plans | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Salaries and Other Benefits | 943 | 647 | | Contributions to Retirement Benefit Plans | 85 | 85 | | **Total** | **1,028** | **732** | - Remuneration for key management personnel is determined with reference to individual performance and market trends[115](index=115&type=chunk) [16. Major Non-Cash Transactions](index=33&type=section&id=16.%20%E4%B8%BB%E8%A6%81%E9%9D%9E%E7%8F%BE%E9%87%91%E4%BA%A4%E6%98%93) A major non-cash transaction occurred during the period, where amounts due to a director and a director of a subsidiary were settled by lenders of other loans on behalf of the Group - As of June 30, 2025, amounts due to a director of **RMB 5,461,000** and to a director of a company subsidiary of **RMB 4,826,000** were settled by lenders of other loans on behalf of the Group[116](index=116&type=chunk)