Financial Performance - Revenue for the six months ended June 30, 2025, was HK$452,723,000, a decrease of 1.7% from HK$458,517,000 in the same period of 2024[11]. - Gross profit for the same period was HK$254,621,000, down 8.1% from HK$277,146,000 year-on-year[11]. - Loss for the period attributable to owners of the company was HK$282,484,000, compared to a profit of HK$4,745,000 in the prior year[12]. - Total comprehensive expense for the period was HK$340,955,000, significantly higher than HK$1,215,000 in the previous year[12]. - Basic loss per share for the period was HK$5.06, compared to earnings of HK$0.09 per share in the prior year[12]. - The company reported a loss for the period of HK$282,484,000 for the six months ended June 30, 2025[17]. - The Group recorded a net loss of approximately HK$321.4 million for the six months ended June 30, 2025, a significant increase from a net loss of approximately HK$4.5 million in 2024[157]. Asset and Equity Changes - As of June 30, 2025, non-current assets decreased to HK$730,458,000 from HK$1,030,423,000 as of December 31, 2024, representing a decline of approximately 29.1%[14]. - Current assets totaled HK$422,582,000, down from HK$557,009,000 at the end of 2024, indicating a decrease of about 24.1%[15]. - Total equity attributable to owners decreased to HK$684,994,000 from HK$978,701,000, reflecting a decline of approximately 30.0%[15]. - Total segment assets as of June 30, 2025, were HK$1,133,923,000, a decrease from HK$1,524,600,000 as of December 31, 2024[44]. Impairment and Losses - Impairment losses recognized under the expected credit loss model amounted to HK$159,035,000, compared to HK$25,466,000 in the same period last year[11]. - Impairment loss on intangible assets increased to HK$123,873,000 in 2025 from HK$13,559,000 in 2024, reflecting a substantial rise[51]. - The Group recognized impairment losses of HK$161,282,000 on amounts due from an associate in 2025, compared to HK$22,565,000 in 2024, indicating a significant increase in credit risk[53]. - The impairment loss on goodwill was recorded at HK$88,417,000, reflecting a significant reduction from the carrying amount of HK$253,418,000 at the beginning of the year[75]. Cash Flow and Financing Activities - Net cash generated from operating activities for the six months ended June 30, 2025, was HK$53,014,000, compared to HK$50,434,000 for the same period in 2024, reflecting an increase of 3.1%[18]. - Net cash used in financing activities totaled HK$46,693,000, slightly down from HK$47,628,000 in the previous year, indicating a decrease of 2.0%[20]. - Cash and cash equivalents at the end of the period increased to HK$78,328,000 from HK$68,663,000, representing a growth of 14.4%[20]. - The Group's bank borrowings stood at HK$82,081,000 as of 30 June 2025, a decrease from HK$85,524,000 as of 31 December 2024[104]. Segment Performance - Pharmaceutical business revenue was HK$344,769,000, slightly down from HK$345,390,000, while fitness business revenue decreased to HK$107,954,000 from HK$113,127,000[37]. - The segment results for the pharmaceutical business showed a profit of HK$20,420,000, down from HK$60,478,000, while the fitness business reported a loss of HK$338,711,000 compared to a loss of HK$38,544,000 in the previous year[37]. - The decline in the fitness business was attributed to slower-than-expected recovery and operational difficulties faced by franchise operators in Taiwan[167]. Marketing and Strategic Initiatives - Increased marketing investment in the pharmaceutical segment led to higher distribution and selling expenses, impacting profitability[163]. - The Group plans to enhance marketing efficiency and intensify product research and development efforts in response to market competition[165]. - The Group's fitness business will strengthen digital marketing efforts to enhance brand image and customer acquisition[197]. - A series of initiatives will be launched, including more diverse membership packages and expanded private training courses, to enhance customer acquisition capabilities[197]. Legal Proceedings and Contingent Liabilities - As of June 30, 2025, the Group has contingent liabilities related to the 2019 Legal Proceedings and 2021 Legal Proceedings, with no material progress made during the interim period[128]. - The Group has been defending claims from Active Gains and Mr. PJW regarding a profit guarantee shortfall for the financial years 2017 and 2018, with 10,000 shares in True Cayman transferred to settle part of the amounts due[129]. - The 2019 Legal Proceedings involve a writ of summons regarding the acquisition of a 51% equity interest in TFKT True Holdings, with no trial date set as of the report date[130]. Employee and Compensation Information - Key management personnel compensation totaled HK$1,884,000 for the six months ended June 30, 2025, compared to HK$2,395,000 in the previous year[112]. - The Group had 655 employees, a decrease from 688 employees as of 31 December 2024[190]. - The share incentive plan aims to motivate selected employees and attract talent for the Group's growth and development[200].

Financial Performance - For the six months ended June 30, 2025, the company reported revenue of approximately RMB 8,502,567,000, a decrease of about 33% compared to the same period last year[32]. - Operating profit for the same period was approximately RMB 253,587,000, representing a significant decline of about 59% year-on-year[32]. - Profit attributable to owners of the company was approximately RMB 140,981,000, a substantial decrease of about 62% compared to the previous year[32]. - Earnings per share for the period was approximately RMB 0.27, down about 63% from the same period last year[32]. - Revenue for the six months ended June 30, 2025, was RMB 8,502,567 thousand, a decrease of 33.5% compared to RMB 12,770,676 thousand in 2024[112]. - Gross profit for the same period was RMB 508,699 thousand, down 47.4% from RMB 965,277 thousand in 2024[112]. - Net profit for the period was RMB 143,431 thousand, representing a 66.1% decrease from RMB 423,265 thousand in 2024[112]. - The company reported a total of RMB 1,431,012,000 in other receivables as of June 30, 2025, slightly down from RMB 1,467,616,000 as of December 31, 2024[154]. Assets and Liabilities - Total assets as of June 30, 2025, were RMB 44,346,227,000, while total liabilities were RMB 30,787,101,000[17]. - The company's equity increased to RMB 13,559,126,000 as of June 30, 2025, compared to RMB 13,333,534,000 in the previous year[17]. - The total amount of loans secured by the company is 9.9%, a significant decrease from 36.9% in the same period last year[59]. - The company's debt-to-equity ratio was approximately 2.3 as of June 30, 2025, unchanged from December 31, 2024[59]. - The group's cash and cash equivalents stood at RMB 8,247,942,000 as of June 30, 2025, compared to RMB 8,009,474,000 as of December 31, 2024, indicating an increase of approximately 3%[109]. - Trade and other payables amounted to RMB 15,549,573 thousand, with no amounts due in the 1 to 5 years category[127]. - The total financial liabilities as of June 30, 2025, were RMB 19,624,453 thousand, compared to RMB 19,928,774 thousand as of December 31, 2024, indicating a decrease[128]. Revenue Segments - The construction segment generated revenue of RMB 5,657,138,000, down 34% year-on-year, with operating profit of RMB 166,581,000, a decline of 49%[36]. - The real estate development segment reported revenue of RMB 1,616,348,000, a significant drop of 46%, and operating profit of RMB 105,034,000, down 67% compared to the previous year[38]. - New contracts in the construction business amounted to RMB 5,240,000,000, a decrease of 36% from RMB 8,140,000,000 in the same period last year[37]. - The company confirmed property sales revenue of approximately RMB 1,780,000,000, with a sales area of about 195,859 square meters during the first half of 2025[41]. Strategic Focus and Market Conditions - The company experienced a significant decline in revenue and profit due to the downturn in the industry affecting its construction and property development businesses[32]. - The company aims to lead the construction industry in China towards industrialization, focusing on new strategies and market expansion[3]. - The company is focusing on deepening cooperation with state-owned enterprises and expanding into large construction projects amid increasing competition in the market[37]. - The company plans to focus on quality and efficiency improvements in its construction business to adapt to the changing market conditions[54]. Cash Flow and Financing - The company's operating cash inflow for the six months ended June 30, 2025, was approximately RMB 475.63 million, an increase of RMB 619.68 million compared to the previous year[62]. - The company's financing activities generated a net cash inflow of approximately RMB 232.70 million, an increase of RMB 346.79 million compared to the previous year[62]. - The company has an unused bank credit line of approximately RMB 7 billion as of June 30, 2025[59]. - The group reported a net increase in cash and cash equivalents of RMB 240,993 thousand, compared to a decrease of RMB 533,908 thousand in the prior year[116]. Corporate Governance and Shareholder Information - The board proposed a final dividend of RMB 0.12 per ordinary share for the year ended December 31, 2024, which was approved at the annual general meeting[71]. - The board decided not to declare an interim dividend for the six months ended June 30, 2025, consistent with the previous year[72]. - Major shareholders include Wu Xueqin and Zhu Yicai, each holding 29,304,000 H shares, representing 17.25% of the issued H shares and 5.63% of the total registered capital[88]. - The company has established an ESG committee to oversee the development and review of ESG management policies and strategies[83]. Employee and Operational Metrics - As of June 30, 2025, the group employed 5,866 staff, a decrease from 6,236 staff as of June 30, 2024, while indirect construction personnel numbered approximately 44,946, down from about 62,659[96]. - Employee benefits expenses for the six months ended June 30, 2025, amounted to approximately RMB 1,595,142,000, compared to RMB 2,363,570,000 for the same period in 2024, reflecting a decrease of about 32.4%[96]. - The company has maintained a net cash position with a net cash ratio of 54% as of June 30, 2025, consistent with the previous year[60]. Risk Management - The group has not made any significant changes to its risk management policies since the end of last year[125]. - The group has sufficient financial resources to repay its debts when they become due[128]. - The group’s financial risk management includes market risk, credit risk, and liquidity risk, which are detailed in the interim financial data[124].

否 2025 中期報告 重要提示 不適用 本報告所涉及的未來計劃、發展戰略等前瞻性描述不構成公司對投資者的實質承諾，敬請投資者注意投資風險。 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 否 十、 重大風險提示 公司已在本報告中描述可能存在的相關風險，具體內容詳見本報告「第三節管理層討論與分析」之「七、（一）可能面對的風險」。 十一、 其他 □適用 √ 不適用 一、 本公司董事會及董事、高級管理人員保證半年度報告內容的真實性、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、 公司全體董事出席董事會會議。 三、 本半年度報告未經審計。 四、 公司負責人張小強、主管會計工作負責人卜周慶及會計機構負責人（會計主管人員）韓巧豔聲明：保證半年度報告中財務報告的真實、準 確、完整。 五、 董事會決議通過的本報告期利潤分配預案或公積金轉增股本預案 六、 前瞻性陳述的風險聲明 √ 適用 □不適用 八、 是否存在違反規定決策程序對外提供擔保的情況 否 九、 是否存在半數以上董事無法保證公司所披露半年度報告的真實性、準確性和完整性 目錄 | 第一節 | 釋義 | 2 | | ...

2025 中期 報告 崔明壽先生 （主席） 王宜美先生 （副主席） 胡亮先生 獨立非執行董事： 尹德勝先生 李雪先生 王亞平先生 祁艷女士（於2025年6月27日獲委任） 趙美然女士（於2025年6月26日退任） 行政總裁： 陳博先生 目錄 2 企業資料 4 中期簡明綜合損益表 5 中期簡明綜合全面收益表 6 中期簡明綜合財務狀況表 8 中期簡明綜合權益變動表 9 中期簡明綜合現金流量表 10 中期簡明綜合財務資料附註 22 管理層討論及分析 27 公司管治及其他資料 企業資料 董事會 執行董事： 審核委員會 李雪先生 （主席） 尹德勝先生 王亞平先生 祁艷女士（於2025年6月27日獲委任） 趙美然女士（於2025年6月26日退任） 薪酬委員會 王亞平先生 （主席） 尹德勝先生 李雪先生 祁艷女士（於2025年6月27日獲委任） 趙美然女士（於2025年6月26日退任） 提名委員會 崔明壽先生 （主席） 尹德勝先生 李雪先生 王亞平先生 祁艷女士（於2025年6月27日獲委任） 趙美然女士（於2025年6月26日退任） 公司秘書 陳鄺良先生 授權代表 王宜美先生 陳鄺良先生 香港法律顧問 企業資料 總辦事處 ...

Financial Performance - The unaudited revenue of China Wan Tong Yuan (Holdings) Limited for the six months ended June 30, 2025, was approximately RMB 11,066,000, representing a decrease of RMB 13,071,000 or 54.2% compared to RMB 24,137,000 for the same period in 2024[13]. - The loss attributable to owners of the Company for the Period was RMB 9,389,000, a decrease of RMB 16,666,000 compared to a profit of RMB 7,277,000 for the same period in 2024[14]. - Revenue for the six months ended June 30, 2025, was RMB 11,066,000, a decrease of 54.1% compared to RMB 24,137,000 for the same period in 2024[24]. - Gross profit for the same period was RMB 8,156,000, down 60.4% from RMB 20,570,000 in 2024[24]. - Loss before tax for the six months ended June 30, 2025, was RMB 9,816,000, compared to a profit of RMB 10,727,000 in 2024[24]. - Total comprehensive loss attributable to owners for the period was RMB 9,389,000, compared to a profit of RMB 7,277,000 in the previous year[24]. - Basic loss per share for the six months ended June 30, 2025, was RMB (0.9) cents, compared to earnings of RMB 0.7 cents in 2024[24]. - For the six months ended June 30, 2025, the Group reported a total comprehensive loss of RMB 9.4 million, compared to a profit of RMB 7.3 million for the same period in 2024, resulting in a net loss margin of 84.8%[131]. Revenue Breakdown - The total revenue for the six months ended June 30, 2025, was RMB 11,066,000, with sales of burial plots contributing RMB 6,256,000[41]. - The provision of cemetery maintenance services generated RMB 2,839,000, while the provision of funeral services accounted for RMB 2,000[41]. - Revenue from burial services, which represents 74.3% of total revenue, was RMB 8,225,000 for the six months ended June 30, 2025, down from RMB 17,777,000 for the same period in 2024[105]. - Revenue from funeral services was RMB 2,000 for the six months ended June 30, 2025, a significant drop from RMB 3,534,000 for the same period in 2024[106]. - Revenue from cemetery maintenance services was RMB 2,839,000 for the six months ended June 30, 2025, slightly up from RMB 2,826,000 for the same period in 2024[107]. Cash Flow and Assets - For the six months ended June 30, 2025, the net cash used in operating activities was RMB (7,891,000), a decrease from RMB 9,683,000 in the same period of 2024[28]. - The net cash generated from investing activities was RMB 415,000, compared to a net cash used of RMB (29,444,000) in the prior year[28]. - Cash and cash equivalents at the end of the period amounted to RMB 128,313,000, down from RMB 215,202,000 at the end of June 2024[28]. - Current assets as of June 30, 2025, totaled RMB 209,249,000, a decrease from RMB 223,310,000 as of December 31, 2024[25]. - Net current assets were RMB 191,344,000, down from RMB 202,495,000 at the end of 2024[25]. - Total assets less current liabilities amounted to RMB 298,667,000, compared to RMB 313,806,000 at the end of 2024[26]. - Net assets decreased to RMB 214,116,000 from RMB 228,519,000 at the end of 2024[26]. Expenses and Liabilities - Total other expenses increased significantly to RMB (5,324,000) in 2025 compared to RMB (953,000) in 2024, indicating a rise of over 459%[59]. - Current tax expenses decreased to RMB 2,055,000 in 2025 from RMB 3,147,000 in 2024, a reduction of approximately 34.7%[67]. - The total staff costs remained relatively stable, with a slight decrease to RMB 5,368,000 in 2025 from RMB 5,378,000 in 2024[65]. - Distribution and selling expenses decreased by 9.7% from RMB 5.1 million for the six months ended June 30, 2024, to RMB 4.6 million for the six months ended June 30, 2025[123]. - Administrative expenses increased by 9.4% from RMB 5.7 million for the six months ended June 30, 2024, to RMB 6.2 million for the six months ended June 30, 2025[124]. - Trade payables decreased from RMB 8,762,000 as of December 31, 2024, to RMB 7,075,000 as of June 30, 2025[92]. - Other payables and accrued expenses decreased from RMB 4,323,000 as of December 31, 2024, to RMB 3,366,000 as of June 30, 2025[92]. - Contract liabilities related to burial services amounted to RMB 86,562,000 as of June 30, 2025, down from RMB 87,142,000 as of December 31, 2024[96]. Shareholding and Governance - As of June 30, 2025, Ms. Zhao Ying holds 700,000,000 shares, representing 70% of the total shareholding[174]. - The total number of shares issued as of June 30, 2025, is 1,000,000,000[177]. - Tai Shing International Investment Company Limited is the beneficial owner of 700,000,000 shares, also accounting for 70% of the shareholding[182]. - TMF (Cayman) Ltd. acts as the trustee for the same 700,000,000 shares, maintaining a 70% shareholding[182]. - The Controlling Shareholders have entered into a non-competition deed, ensuring no engagement in competing businesses related to the Group's core burial and funeral services[195]. - No purchases, sales, or redemptions of the Company's listed securities occurred during the reporting period[194][198]. - The Directors are not aware of any competing interests or conflicts of interest involving the Directors or Controlling Shareholders during the reporting period[196][199]. Strategic Outlook - The Group plans to strengthen its market position in Langfang and expand into the Jing-Jin-Ji megalopolis by enhancing funeral services and pursuing strategic alliances and acquisitions[159][164]. - The management anticipates that the second half of 2025 to 2027 will be a crucial period for the Group, with confidence in achieving corporate goals and enhancing shareholder value[155][158]. - The Group is committed to transforming from a single-focus funeral service provider to an integrated operator of funeral and burial services, offering diversified products to cater to different consumer segments[160][164]. - The Group aims to enhance its cemetery operations by upgrading online services and diversifying burial-related services to strengthen its market position[161][165]. - The Group's financial and operational preparations for the JV Cemetery Project are expected to facilitate its expansion in the burial market within Langfang and the Jing-Jin-Ji megalopolis[163][165].

Financial Performance - For the six months ended June 30, 2025, the group's revenue was RMB 178.9 million, representing a year-on-year increase of 10.0%[9]. - The adjusted net loss (non-GAAP) for the same period was RMB 1.4 million, a decrease of 97.5% year-on-year, indicating a near breakeven point[9]. - The overall gross profit for the group was RMB 106.3 million, a slight increase of 0.9% compared to the previous year[10]. - The company reported a total comprehensive loss attributable to equity shareholders of RMB 7,177 thousand for the six months ended June 30, 2025, compared to a loss of RMB 584,384 thousand in the same period of 2024[88]. - The company incurred a loss before tax of RMB 2,898 thousand for the six months ended June 30, 2025, compared to a loss of RMB 578,745 thousand in the same period of 2024, showing significant improvement[88]. Revenue Breakdown - AI software business revenue was RMB 80.6 million, down 21.7% year-on-year, attributed to intensified global competition and rising customer acquisition costs[12]. - AI hardware business revenue increased by 64.8% year-on-year to RMB 98.3 million, driven by strategic market investments and new product launches[12]. - Revenue from AI software solutions decreased to RMB 80,640,000 in the six months ended June 30, 2025, down from RMB 103,025,000 in 2024, representing a decline of approximately 21.7%[102]. - Revenue from smart devices and other accessories increased significantly to RMB 98,274,000 in the six months ended June 30, 2025, compared to RMB 59,645,000 in 2024, marking an increase of approximately 64.7%[102]. - Revenue from the Chinese mainland was RMB 76,373,000 in 2025, down from RMB 91,935,000 in 2024, representing a decline of approximately 17.0%[110]. - Revenue from Germany increased significantly to RMB 18,775,000 in 2025 from RMB 9,848,000 in 2024, marking an increase of about 90.5%[110]. Cost Management - R&D expenses decreased from RMB 55.8 million to RMB 38.0 million, with direct inputs rising from RMB 5.9 million to RMB 12.4 million, indicating improved R&D efficiency[29]. - Sales and marketing expenses decreased from RMB 91.3 million to RMB 68.9 million, primarily due to changes in revenue structure and reduced service fees for AIGC software solutions[30]. - Administrative expenses significantly dropped from RMB 55.9 million to RMB 13.1 million, attributed to the absence of listing expenses in 2025[31]. - Research and development expenses for the six months ended June 30, 2025, were RMB 38,045 thousand, a decrease from RMB 55,814 thousand in the same period of 2024, reflecting cost management efforts[88]. - Sales and marketing expenses also decreased significantly to RMB 68,879,000 in 2025 from RMB 91,291,000 in 2024, a reduction of about 24.6%[108]. Cash and Liquidity - As of June 30, 2025, the company's cash and cash equivalents amounted to approximately RMB 254.0 million, an increase from RMB 156.5 million as of December 31, 2024[34]. - The company's liquidity risk management includes regular monitoring of cash needs and compliance with lending covenants to ensure sufficient cash reserves[47]. - The company’s cash and cash equivalents increased by RMB 97,526,000 during the six months ended June 30, 2025, compared to an increase of RMB 240,145,000 in the same period of 2024[97]. - Cash used in operating activities for the six months ended June 30, 2025, was RMB 56,160,000, compared to RMB 49,174,000 for the same period in 2024, indicating an increase of approximately 14.4%[97]. - Cash and cash equivalents increased to RMB 253,956,000 as of June 30, 2025, from RMB 156,535,000 as of December 31, 2024[131]. Shareholder Information - As of June 30, 2025, the total issued shares amounted to 1,538,500,537, with key shareholders holding significant stakes, including 24.43% by Li Zhifei and 28.14% by Li Yuanyuan[59][61]. - The largest shareholder, W&H Management Limited, holds 42,505,195 shares, representing 2.76% of total shares[64]. - The combined shareholding of Li Zhifei and Li Yuanyuan, along with Lei Xin, is significant due to their joint action since December 1, 2019[68]. - The company has not declared or paid any dividends since its incorporation, indicating a focus on reinvestment rather than shareholder payouts[147]. - The total number of options and potential shares that may be issued under all company plans is calculated to be 10.5% of the weighted average number of issued shares (excluding treasury shares) during the reporting period[74]. Strategic Focus and Future Plans - The company is committed to enhancing operational efficiency through resource optimization and cost control measures, contributing to improved profitability[15]. - The strategic focus remains on exploring new paradigms of human-computer interaction and achieving milestones towards AGI evolution[15]. - The company plans to increase investment in core AI Agent technology to enhance personalized and real-time intelligent experiences by the second half of 2025[23]. - The company is focusing on expanding its Agentic AI ecosystem, with new product categories such as TicSports, TicNote Watch, and TicNote Pods being developed[19]. - The strategic partnership with global players like Google, Qualcomm, and NVIDIA is crucial for the company's future growth and financial goals[22]. Risk Management - The company faced low credit risk primarily from trade receivables and other receivables, as cash and cash equivalents are held with high-rated banks and financial institutions[46]. - Interest rate risk is primarily associated with fixed-rate borrowings, which expose the company to fair value interest rate risk[48]. - The group faces currency risk primarily from receivables, payables, and cash balances denominated in foreign currencies, including USD, EUR, TWD, GBP, HKD, SGD, and AUD[49]. - The company has been recognized as a high-tech enterprise, qualifying for a preferential tax rate of 15% from 2023 to 2025, which may positively impact future profitability[115]. Corporate Governance - The board consists of 2 executive directors and 3 independent non-executive directors as of the reporting period[55]. - The company has complied with all applicable code provisions of the corporate governance code during the reporting period[78]. - The group has no ongoing disclosure obligations under Listing Rules 13.20, 13.21, and 13.22 during the reporting period[53]. - There were no changes in the board members' relevant interests in shares or debentures as of June 30, 2025[60].

Financial Performance - In the first half of 2025, GOME Retail Holdings recorded revenue of RMB 297 million, a 75.74% increase compared to RMB 169 million in the same period of 2024[6]. - The gross profit for the first half of 2025 was RMB 20 million, up 11.11% from RMB 18 million in the previous year[8]. - The net loss attributable to the owners of the parent company was RMB 1,346 million, a significant reduction of 69.63% from RMB 4,432 million in the same period last year[6]. - The group's sales revenue for the reporting period was RMB 297 million, an increase of 75.74% compared to RMB 169 million in the same period last year[21]. - Other income and gains amounted to RMB 716 million, a 219.64% increase from RMB 224 million in the previous year, primarily due to gains from the disposal of subsidiaries and property[23]. - The group reported a total comprehensive loss of RMB 1,397,279 thousand for the six months ended June 30, 2025, compared to a total comprehensive loss of RMB 4,431,909 thousand for the same period in 2024, indicating a significant reduction in losses[61]. - The company reported a net loss attributable to owners of the parent of RMB 1.35 billion for the first half of 2025, compared to RMB 4.43 billion in the same period of 2024, marking a significant improvement[55]. Cost Management - Operating expenses decreased to RMB 512 million from RMB 747 million year-on-year, indicating a cost reduction strategy[8]. - Marketing expenses totaled RMB 130 million, a decrease of 32.64% from RMB 193 million in the previous year, with significant reductions in employee-related costs and advertising expenses[24]. - Management expenses were RMB 383 million, down 30.87% from RMB 554 million in the previous year, largely due to a decrease in depreciation expenses[25]. - Other expenses and losses recorded during the reporting period amounted to RMB 622 million, a decrease from RMB 1,926 million in the same period last year[28]. Debt and Financial Strategy - The group is actively working on debt resolution through various strategies, including debt-to-equity swaps and asset disposals, aiming to complete part of the debt resolution by 2025[12]. - The company has initiated discussions with financial institutions regarding a preliminary debt-to-equity swap agreement for a loan of RMB 550 million[69]. - The company has reached preliminary debt-to-equity swap agreements with two major suppliers totaling approximately RMB 537 million[70]. - The group has a capital commitment of RMB 480 million and is actively negotiating loan terms with relevant banks[46]. - The company is actively negotiating with banks to restructure loans and extend repayment terms to alleviate liquidity pressure[68]. Market and Economic Context - The domestic economy achieved a growth rate of 5.3% in the first half of 2025, slightly exceeding expectations, supported by active macro policies[9]. - The retail sales of consumer goods increased by 5.0% year-on-year, contributing 52% to GDP growth, with home appliances and automotive sectors showing strong performance[9]. - The government has allocated RMB 300 billion in special bonds to support consumption upgrades, doubling the funding scale from the previous year[10]. - The company is optimistic about the recovery of the retail market, driven by policies promoting consumption and the stabilization of the real estate market[10]. Business Development and Innovation - The company has made substantial progress in debt resolution and strategic transformation, focusing on light-asset business expansion and nurturing new growth points[11]. - GOME Retail is accelerating efforts in innovative franchise models and new business projects, achieving notable progress during the reporting period[8]. - The group has established a new automotive experience center, marking its entry into the automotive circulation sector, with the first center opening on April 29, 2025[14]. - The group continues to implement a light-asset franchise model, focusing on sales, revenue, and positive cash flow, with an emphasis on brand authorization and supply chain innovation[13]. Employee and Governance - The group has a total of 476 employees as of June 30, 2025, with ongoing efforts to optimize recruitment and training strategies[20]. - The group has adopted a corporate governance code, ensuring that independent directors constitute at least one-third of the board, enhancing overall governance standards[17]. - The group did not recommend the distribution of interim dividends for the six months ended June 30, 2025[89]. - All directors confirmed compliance with the standard code of conduct throughout the reporting period[135]. Assets and Liabilities - Total liabilities as of June 30, 2025, included secured accounts payable of RMB 339 million and interest-bearing bank and other borrowings of RMB 20.63 billion[52]. - Non-current assets totaled RMB 16.97 billion as of June 30, 2025, down from RMB 17.82 billion at the end of 2024, a decrease of about 4.8%[58]. - The group's cash and cash equivalents at the end of the reporting period were RMB 75 million, an increase from RMB 49 million at the end of 2024[37]. - Inventory at the end of the reporting period was RMB 96 million, a decrease of 20% from RMB 120 million at the end of 2024[38]. - The total assets as of June 30, 2025, were not explicitly stated but can be inferred from the liabilities and equity figures, indicating a challenging financial position[60]. Legal and Compliance - The total amount involved in unresolved litigation cases as of June 30, 2025, is RMB 4.6 billion, down from RMB 5.5 billion as of December 31, 2024[106]. - The group has 1,633 court-ruled cases involving a total amount of RMB 16.2 billion as of June 30, 2025, compared to RMB 14.6 billion as of December 31, 2024[106]. - The audit committee reviewed the company's interim performance and internal controls for the six months ended June 30, 2025[137].

CONTENTS 目錄 2 Corporate Information 公司資料 5 Highlights 摘要 6 Interim Condensed Consolidated Statement of Comprehensive Income 中期簡明綜合全面收益表 8 Interim Condensed Consolidated Statement of Financial Position 中期簡明綜合財務狀況表 Ms. Jin Keli Ms. Xu Yaping INDEPENDENT NON-EXECUTIVE DIRECTORS Mr. Chan Wai Cheung, Admiral Mr. Chan Ka Leung, Kevin Mr. Yin Weizhong (1) (Resigned on 5 June 2025) Mr. Yang Jianpeng (2) AUDIT COMMITTEE Mr. Chan Wai Cheung, Admiral (Chairman) Mr. Chan Ka Leung, Kevin Mr. Yin Weizhong (1) (Resigned o ...

(A sino-foreign joint stock limited company incorporated in the People's Republic of China) ( 於中華人民共和國註冊成立之外商投資股份有限公司 ) (Stock Code 股份代號 : 2880) (A sino-foreign joint stock limited company incorporated in the People's Republic of China) ( 於中華人民共和國註冊成立之外商投資股份有限公司 ) (Stock Code 股份代號 : 2880) 中期報告 Interim Report 2025 Address: Xingang Commercial Building, Jingang Road, Dalian International Logistics Park Zone, Liaoning Province, the PRC (P.C.: 116601) 地址 : 中國遼寧省大連國際物流園區金港路新港商務大廈 ( 郵遞區號 : 116601) Tel 電話 : 86-0411 ...

[Company Information](index=3&type=section&id=Company%20Information) [Board of Directors and Committees](index=3&type=section&id=Board%20of%20Directors%20and%20Committees) The chapter outlines the composition of Yadong Group Holdings Limited's Board of Directors, including executive and independent non-executive directors, and its Audit, Remuneration, and Nomination Committees - The Board of Directors comprises **five executive directors** (including Chairman Mr. Xue Shidong) and **three independent non-executive directors**[4](index=4&type=chunk) - The company has an Audit Committee (chaired by Mr. He Jianchang), a Remuneration Committee (chaired by Mr. Zhu Qi), and a Nomination Committee (chaired by Mr. Xue Shidong)[4](index=4&type=chunk) [Company Secretary and Authorized Representatives](index=3&type=section&id=Company%20Secretary%20and%20Authorized%20Representatives) The company's Company Secretary is Ms. Li Jingyi, and the authorized representatives are Mr. Xue Shidong and Ms. Li Jingyi - The Company Secretary is Ms. Li Jingyi, and the authorized representatives are Mr. Xue Shidong and Ms. Li Jingyi[4](index=4&type=chunk) [Registered Office and Principal Places of Business](index=3&type=section&id=Registered%20Office%20and%20Principal%20Places%20of%20Business) This section details the company's registered offices and principal places of business in the People's Republic of China, Hong Kong, and the Cayman Islands - The principal place of business in the People's Republic of China is located at No. 381, Laodong East Road, Tianning District, Changzhou City, Jiangsu Province[4](index=4&type=chunk) - The principal place of business in Hong Kong is located at 7th Floor, Low Block, Grand Millennium Plaza, 181 Queen's Road Central[4](index=4&type=chunk) - The registered office in the Cayman Islands is located at Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman KY1-1111[5](index=5&type=chunk) [Other Key Information](index=4&type=section&id=Other%20Key%20Information) This section provides information on the company's Hong Kong share registrar, auditor, legal counsel, principal bankers, stock code, and website - The Hong Kong share registrar is Hong Kong Central Securities Registrars Limited[5](index=5&type=chunk) - The auditor is Shinewing (HK) CPA Limited[5](index=5&type=chunk) - The company's stock code is **1795**, and its website is www.yadongtextile.com[5](index=5&type=chunk) [Management Discussion and Analysis](index=5&type=section&id=Management%20Discussion%20and%20Analysis) [Company Profile](index=5&type=section&id=Company%20Profile) Yadong Group Holdings Limited primarily engages in the design, processing, and sale of textile fabric products, categorized into plain weave and corduroy fabrics, serving garment manufacturers and trading companies across China, Japan, and other Asian regions - The Group's core business involves the design, processing, and sale of textile fabric products, including plain weave and corduroy fabrics[7](index=7&type=chunk) - Key customers are garment manufacturers and trading companies, with products sold to China, Japan, and other Asian markets such as Taiwan, Vietnam, Bangladesh, and Indonesia[7](index=7&type=chunk) [Industry Review](index=5&type=section&id=Industry%20Review) In H1 2025, China's economy showed resilience with **GDP growing by 5.3%**, and consumption recovering due to policy stimulus, though traditional apparel categories still face challenges, leading to cautious optimism for H2 consumption - In H1 2025, China's Gross Domestic Product (GDP) increased by approximately **5.3%** year-on-year, higher than the **5.0%** growth in H1 2024[8](index=8&type=chunk) - Total retail sales of consumer goods increased by approximately **5.0%** year-on-year, with catering, automobiles, and health-related categories showing strong performance[8](index=8&type=chunk) - Retail sales of traditional categories such as apparel, footwear, headwear, and knitwear grew by only **3.1%**, continuing to face challenges[8](index=8&type=chunk) [Business Review](index=6&type=section&id=Business%20Review) In H1 2025, driven by China's consumer stimulus policies, the Group achieved growth in revenue, gross profit, and profit, with an improved gross profit margin primarily due to increased customer orders and higher average selling prices H1 2025 Business Performance | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Year-on-Year Growth (%) | | :--- | :--- | :--- | :--- | | Revenue | 489.0 | 481.1 | 1.7% | | Gross Profit | 62.7 | 56.5 | 11.1% | | Profit | 19.8 | 17.8 | 11.0% | | Gross Profit Margin | 12.8% | 11.7% | 1.1 percentage points | - Revenue growth was primarily driven by an increase in customer purchase orders[9](index=9&type=chunk) - The increase in gross profit margin was mainly attributable to a rise in average selling prices[15](index=15&type=chunk) [Outlook and Strategies](index=6&type=section&id=Outlook%20and%20Strategies) The Group is optimistic about the market outlook for H2 2025, planning to enhance product design and development, focus on eco-friendly textile fabrics, and expand production facilities by acquiring land use rights in Vietnam to improve operational efficiency and seize Southeast Asian market opportunities - The Group maintains an **optimistic outlook** for the market in H2 2025, anticipating that sustained recovery in domestic demand will drive the development of the apparel and knitwear industries[10](index=10&type=chunk) - Key business strategies include strengthening product design and development capabilities, with a focus on **eco-friendly textile fabrics**, particularly cotton products made from sustainable raw materials[10](index=10&type=chunk) - A recent acquisition agreement has been entered into to gain indirect control of land in Vietnam, intended for developing new production facilities to diversify manufacturing bases and enhance operational efficiency[12](index=12&type=chunk) [Financial Review](index=7&type=section&id=Financial%20Review) In H1 2025, the Group's revenue, gross profit, and profit all increased, but other income decreased due to lower bank interest; sales and distribution expenses, administrative expenses, finance costs, and income tax expenses all rose, leading to a higher effective income tax rate H1 2025 Key Financial Metrics Changes | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 489.0 | 481.1 | 8.0 | 1.7% | | Cost of Sales | 426.3 | 424.6 | 1.7 | 0.4% | | Gross Profit | 62.7 | 56.5 | 6.2 | 11.1% | | Other Income | 2.8 | 4.8 | (2.0) | (41.7%) | | Selling and Distribution Expenses | 10.1 | 10.0 | 0.1 | 1.0% | | Administrative Expenses | 25.0 | 24.6 | 0.4 | 1.6% | | Finance Costs | 6.8 | 5.6 | 1.2 | 21.4% | | Income Tax Expense | 3.9 | 3.3 | 0.6 | 18.2% | | Profit | 19.8 | 17.8 | 2.0 | 11.0% | - The decrease in other income was mainly due to a reduction in bank interest income from approximately **RMB 1.045 million** to approximately **RMB 54,000**[16](index=16&type=chunk) - The effective income tax rate increased from approximately **15.6%** in H1 2024 to approximately **16.5%** in H1 2025[20](index=20&type=chunk) [Other Financial and Operating Information](index=9&type=section&id=Other%20Financial%20and%20Operating%20Information) In H1 2025, the Group had no significant M&A, capital commitments of approximately **RMB 3.0 million**, and no material contingent liabilities; the gearing ratio decreased to **61.6%**, and the current ratio increased to **1.5 times**; employee numbers rose to **595**, with increased staff costs; post-period, an agreement was signed to acquire a Vietnamese entity for production expansion, and the Board does not recommend an interim dividend - As of June 30, 2025, the Group had **no material acquisitions or disposals** of subsidiaries and associates[22](index=22&type=chunk) - Capital commitments amounted to approximately **RMB 3.0 million**, primarily related to the acquisition of property, plant, and equipment, and the development of a design and research center[23](index=23&type=chunk) H1 2025 Financial Ratios and Employee Information | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Gearing Ratio | 61.6% | 66.1% | Decreased by 4.5 percentage points | | Bank Balances and Cash | RMB 35.4 million | RMB 65.0 million | Decreased | | Current Ratio | 1.5 times | 1.3 times | Increased by 0.2 times | | Number of Full-time Employees | 595 persons | 569 persons | Increased by 26 persons | | Staff Costs | RMB 41.7 million | RMB 35.0 million | Increased by 19.1% | - Subsequent to the reporting period, the Group entered into an acquisition agreement to acquire a Singapore-incorporated company holding a controlling interest in a Vietnamese entity, intended for developing new production facilities[32](index=32&type=chunk) - The Board has resolved **not to recommend** the payment of an interim dividend for the six months ended June 30, 2025[34](index=34&type=chunk) [Other Information](index=12&type=section&id=Other%20Information) [Corporate Governance](index=13&type=section&id=Corporate%20Governance) The Group is committed to maintaining high corporate governance standards, complying with the Corporate Governance Code in Appendix C1 of the Listing Rules, with a deviation where the roles of Chairman and Chief Executive are not segregated, which the Board continuously reviews for effectiveness - The Company complies with all applicable code provisions of the Corporate Governance Code, except for the non-segregation of the roles of Chairman and Chief Executive[35](index=35&type=chunk)[36](index=36&type=chunk) - The Board believes the current management structure achieves effective and efficient overall strategic planning and will continue to review the effectiveness of the corporate governance framework[36](index=36&type=chunk) [Standard Securities Dealing Code](index=13&type=section&id=Standard%20Securities%20Dealing%20Code) The Company has adopted the Standard Securities Dealing Code for Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules, and all directors confirmed compliance during the reporting period - The Company has adopted the Standard Securities Dealing Code for Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules[37](index=37&type=chunk) - All Directors have confirmed compliance with the required standards set out in the Standard Code for the six months ended June 30, 2025[37](index=37&type=chunk) [Changes in Directors' and Senior Management's Information](index=14&type=section&id=Changes%20in%20Directors'%20and%20Senior%20Management's%20Information) There were no changes in the information of the Company's directors and senior management requiring disclosure during the reporting period - There were **no changes** in the information of the Company's directors and senior management requiring disclosure under Rule 13.51B(1) of the Listing Rules[39](index=39&type=chunk) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares, and Debentures](index=14&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares,%20Underlying%20Shares,%20and%20Debentures) As of June 30, 2025, no directors or chief executives of the Company held any disclosable interests or short positions in the shares, underlying shares, or debentures of the Company or any of its associated corporations - As of June 30, 2025, **no directors or chief executives** of the Company held any interests or short positions in the shares, underlying shares, or debentures of the Company or any of its associated corporations that are required to be disclosed under the Securities and Futures Ordinance[40](index=40&type=chunk) [Substantial Shareholders' Interests and Short Positions in Shares and Underlying Shares](index=14&type=section&id=Substantial%20Shareholders'%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares) As of June 30, 2025, Dongyong Holdings Limited held **75%** of the Company's equity, and Mr. Xue Liang, as the sole owner of Dongyong Holdings Limited, is deemed to have the same interest, making him a substantial shareholder of the Company Substantial Shareholders' Shareholding | Shareholder Name | Capacity/Nature of Interest | Total Number of Shares/Underlying Shares Held | Approximate Percentage of the Company's Equity (%) | | :--- | :--- | :--- | :--- | | Dongyong Holdings Limited | Beneficial Interest | 450,000,000(L) | 75% | | Mr. Xue Liang | Interest in Controlled Corporation | 450,000,000(L) | 75% | - Mr. Xue Liang owns **100%** interest in Dongyong Holdings Limited and is therefore deemed to be interested in the shares held by Dongyong Holdings Limited[44](index=44&type=chunk) [Share Option Scheme](index=15&type=section&id=Share%20Option%20Scheme) The Company adopted a share option scheme on October 21, 2020, but no share options have been granted, exercised, lapsed, or cancelled under the scheme from its adoption date to the date of this interim report - The Company adopted a share option scheme on **October 21, 2020**[43](index=43&type=chunk) - From the date of adoption up to the date of this interim report, **no share options** have been granted, exercised, lapsed, or cancelled under the share option scheme[43](index=43&type=chunk) [Directors' Rights to Acquire Shares or Debentures](index=16&type=section&id=Directors'%20Rights%20to%20Acquire%20Shares%20or%20Debentures) For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries entered into any arrangements enabling directors to acquire benefits by acquiring 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 enabling directors to acquire benefits by acquiring shares or debentures of the Company or any other corporation[45](index=45&type=chunk) [Purchase, Sale or Redemption of Listed Securities or Sale of Treasury Shares](index=16&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20Listed%20Securities%20or%20Sale%20of%20Treasury%20Shares) For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities or sold any treasury shares - For the six months ended June 30, 2025, **neither the Company nor any of its subsidiaries** purchased, sold, or redeemed any of the Company's listed securities or sold any treasury shares[46](index=46&type=chunk) [Audit Committee](index=16&type=section&id=Audit%20Committee) The Company's Audit Committee reviewed the Group's unaudited financial results, accounting principles, and practices for the six months ended June 30, 2025, discussed risk management, internal controls, and financial reporting with management, with no disagreements between the Board and the Audit Committee - The Audit Committee has reviewed the Group's **unaudited financial results** and accounting principles for the six months ended June 30, 2025[47](index=47&type=chunk) - The Audit Committee discussed risk management, internal controls, and financial reporting matters with management, and there were **no disagreements** between the Board and the Audit Committee[47](index=47&type=chunk) [Condensed Consolidated Financial Statements](index=16&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=17&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This statement presents Yadong Group's revenue, costs, gross profit, various expenses, profit before tax, income tax expense, and profit for the period, along with other comprehensive income items for the six months ended June 30, 2025 Summary of Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 489,040 | 481,054 | | Gross Profit | 62,746 | 56,500 | | Profit Before Tax | 23,720 | 21,115 | | Income Tax Expense | (3,922) | (3,286) | | Profit for the Period | 19,798 | 17,829 | | Exchange differences arising from translation of overseas operations | 3,928 | (1,741) | | Total comprehensive income for the period attributable to owners of the Company | 23,726 | 16,088 | | Basic and Diluted Earnings Per Share (RMB cents) | 3.30 | 2.97 | [Condensed Consolidated Statement of Financial Position](index=18&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This statement presents Yadong Group's assets, liabilities, and equity as of June 30, 2025, and December 31, 2024, showing a slight increase in non-current assets, decreases in both current assets and current liabilities, and growth in net assets Summary of Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current Assets | 245,453 | 242,082 | | Current Assets | 580,873 | 622,907 | | Current Liabilities | 375,706 | 484,197 | | Non-current Liabilities | 133,630 | 87,529 | | Net Assets | 316,990 | 293,263 | | Share Capital | 5,035 | 5,035 | | Reserves | 311,955 | 288,228 | | **Total Equity** | **316,990** | **293,263** | - Net current assets increased from approximately **RMB 138.7 million** as of December 31, 2024, to approximately **RMB 205.2 million** as of June 30, 2025[51](index=51&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=20&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This statement details the changes in Yadong Group's share capital, share premium, capital reserve, exchange reserve, statutory reserve, and retained profits for the six months ended June 30, 2025, reflecting the impact of profit for the period and exchange differences on total equity Summary of Condensed Consolidated Statement of Changes in Equity | Metric | January 1, 2025 (RMB thousand) | Profit for the Period (RMB thousand) | Exchange Differences (RMB thousand) | Transfer to Statutory Reserve (RMB thousand) | June 30, 2025 (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | | Share Capital | 5,035 | — | — | — | 5,035 | | Share Premium | 25,046 | — | — | — | 25,046 | | Capital Reserve | (4,313) | — | — | — | (4,313) | | Exchange Reserve | (7,048) | — | 3,928 | — | (3,120) | | Statutory Reserve | 20,827 | — | — | 155 | 20,982 | | Retained Profits | 253,717 | 19,798 | — | (155) | 273,360 | | **Total** | **293,264** | **19,798** | **3,928** | **—** | **316,990** | - Total comprehensive income for the period attributable to owners of the Company was **RMB 23,726 thousand** for the six months ended June 30, 2025, an increase from **RMB 16,088 thousand** in the corresponding period of 2024[54](index=54&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=21&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This statement summarizes Yadong Group's cash flows from operating, investing, and financing activities for the six months ended June 30, 2025, showing net cash outflows from operating, investing, and financing activities, resulting in a decrease in cash and cash equivalents at period-end Summary of Condensed Consolidated Statement of Cash Flows | Cash Flow Type | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Net Cash (Used in) Generated from Operating Activities | (20,818) | 10,182 | | Net Cash (Used in) Generated from Investing Activities | (407) | 33,928 | | Net Cash (Used in) Generated from Financing Activities | (10,747) | (76,869) | | Net Decrease in Cash and Cash Equivalents | (31,972) | (32,759) | | Cash and Cash Equivalents at End of Period | 35,356 | 65,738 | - Cash flow from operating activities shifted from a net inflow in H1 2024 to a net outflow of **RMB 20,818 thousand** in H1 2025[56](index=56&type=chunk) - Cash and cash equivalents at the end of the period decreased from **RMB 65,738 thousand** in H1 2024 to **RMB 35,356 thousand** in H1 2025[56](index=56&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=22&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) [Company Information](index=22&type=section&id=Company%20Information%20(Notes)) This note provides Yadong Group Holdings Limited's registration information, listing details, ultimate holding company, principal places of business, and core business scope, clarifying that financial statements are presented in RMB - The Company was incorporated in the Cayman Islands on **September 22, 2016**, and has been listed on the Main Board of the Hong Kong Stock Exchange since **November 18, 2020**[57](index=57&type=chunk) - The ultimate holding company is Dongyong Holdings Limited, wholly and directly owned by Mr. Xue Liang, son of Mr. Xue Shidong, a director of the Company[57](index=57&type=chunk) - The Group is principally engaged in the sale of fabric products and the provision of dyeing and processing services[57](index=57&type=chunk) [Basis of Preparation](index=23&type=section&id=Basis%20of%20Preparation) This note explains that 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 the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited - 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 of the Listing Rules[59](index=59&type=chunk) [Significant Accounting Policies](index=23&type=section&id=Significant%20Accounting%20Policies) This note explains that the condensed consolidated financial statements are prepared on a historical cost basis, consistent with the accounting policies and methods used in the 2024 annual financial statements, and mentions the first-time application of HKFRS amendments in this period, which had no significant impact on financial performance - The condensed consolidated financial statements have been prepared on a **historical cost basis** and are consistent with those adopted in the annual financial statements for the year ended December 31, 2024[60](index=60&type=chunk) - Amendments to Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants were first applied in the current period, but they had **no significant impact** on the Group's financial performance and position[60](index=60&type=chunk)[61](index=61&type=chunk) [Revenue](index=24&type=section&id=Revenue%20(Notes)) This note details the Group's revenue recognition methods and provides an analysis of revenue by major product or service lines (plain weave, corduroy fabrics, dyeing and processing services), showing significant growth in corduroy fabric sales - The Group's revenue is recognized at a point in time, representing amounts received and receivable for the sale of fabric products and the provision of dyeing and processing services, net of sales-related taxes[62](index=62&type=chunk) Revenue by Product/Service Line | Product/Service | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Sale of plain weave fabrics | 338,598 | 361,600 | | Sale of corduroy fabrics | 130,378 | 99,231 | | Provision of dyeing and processing services | 20,064 | 20,223 | | **Total** | **489,040** | **481,054** | - Sales of corduroy fabrics increased from approximately **RMB 99.2 million** in H1 2024 to approximately **RMB 130.4 million** in H1 2025, representing a growth of approximately **31.4%**[62](index=62&type=chunk) [Segment Information](index=24&type=section&id=Segment%20Information) This note indicates that the Group does not present operating segment information due to integrated resources and lack of separate financial data for independent operating segments, while providing revenue analysis by customer geographical location, showing decreased revenue from China but significant growth in Bangladesh and Vietnam markets - The Group does **not present operating segment information** due to integrated resources and the absence of separate financial information for independent operating segments[63](index=63&type=chunk) Revenue from External Customers by Customer Location | Customer Location | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | China | 330,507 | 340,688 | | Bangladesh | 68,539 | 60,122 | | Vietnam | 41,063 | 24,583 | | Japan | 13,385 | 17,643 | | Others | 35,546 | 38,018 | | **Total** | **489,040** | **481,054** | - For the six months ended June 30, 2025, and 2024, **no revenue from a single customer accounted for more than 10%** of the Group's total revenue[67](index=67&type=chunk) [Other Income](index=26&type=section&id=Other%20Income) This note presents the composition of the Group's other income, primarily including bank interest income, net exchange gains, government grants, rental income, and sundry income, with the total amount decreasing year-on-year mainly due to reduced bank interest income and net exchange gains Composition of Other Income | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Bank interest income | 54 | 1,045 | | Net exchange gains | 455 | 2,396 | | Government grants | 56 | 77 | | Rental income | 1,529 | 1,192 | | Sundry income | 722 | 66 | | **Total** | **2,816** | **4,776** | - Total other income decreased from approximately **RMB 4.8 million** in H1 2024 to approximately **RMB 2.8 million** in H1 2025, primarily due to reduced bank interest income and net exchange gains[68](index=68&type=chunk) [Finance Costs](index=26&type=section&id=Finance%20Costs) This note discloses the composition of the Group's finance costs, primarily comprising interest on borrowings and interest on lease liabilities, with the total amount increasing year-on-year Composition of Finance Costs | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest on borrowings | 6,770 | 5,553 | | Interest on lease liabilities | 20 | 82 | | **Total** | **6,790** | **5,635** | - Total finance costs increased from approximately **RMB 5.6 million** in H1 2024 to approximately **RMB 6.8 million** in H1 2025, representing an increase of approximately **20.5%**[69](index=69&type=chunk) [Income Tax Expense](index=27&type=section&id=Income%20Tax%20Expense) This note details the Group's income tax expense, including Hong Kong profits tax and PRC enterprise income tax, explaining tax rate policies across different jurisdictions, particularly the **15%** preferential tax rate enjoyed by PRC subsidiary Yadong (Changzhou) Technology Co., Ltd. after obtaining its High-Tech Enterprise certificate Composition of Income Tax Expense | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Hong Kong profits tax | 3,922 | 3,286 | | PRC enterprise income tax | — | — | | **Total** | **3,922** | **3,286** | - The Group is **not subject to income tax** in the British Virgin Islands and the Cayman Islands[71](index=71&type=chunk) - PRC subsidiary Yadong (Changzhou) Technology Co., Ltd. is subject to enterprise income tax at a preferential rate of **15%** for three years from 2024 to 2026, reduced from the previous **25%**[71](index=71&type=chunk) [Profit for the Period](index=29&type=section&id=Profit%20for%20the%20Period) This note lists the expenses deducted in calculating profit for the period, including total staff costs, auditor's remuneration, amortization of intangible assets, amount of inventories, depreciation of property, plant and equipment, depreciation of investment properties, and depreciation of right-of-use assets Summary of Items Deducted in Profit for the Period | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Total staff costs | 41,683 | 35,006 | | Auditor's remuneration | 153 | 149 | | Amortisation of intangible assets | 29 | 58 | | Amount of inventories recognised as expense | 401,458 | 394,911 | | Depreciation of property, plant and equipment | 11,699 | 9,765 | | Depreciation of investment properties | 767 | 767 | | Depreciation of right-of-use assets | 1,554 | 5,126 | - The increase in total staff costs was primarily due to higher salaries, allowances, and other benefits resulting from the **recruitment of additional full-time employees**[30](index=30&type=chunk)[72](index=72&type=chunk) [Dividends](index=29&type=section&id=Dividends) This note confirms that no interim dividends were declared by the Company for the six months ended June 30, 2025, and 2024 - **No interim dividends** were declared for the six months ended June 30, 2025, and 2024[73](index=73&type=chunk) [Earnings Per Share](index=30&type=section&id=Earnings%20Per%20Share) This note explains the calculation of basic earnings per share and states that diluted earnings per share are the same as basic earnings per share due to the absence of outstanding potentially dilutive ordinary shares - Basic earnings per share are calculated based on the profit for the period attributable to owners of the Company and the weighted average number of ordinary shares outstanding[74](index=74&type=chunk) Earnings Per Share Calculation | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit for the purpose of basic earnings per share (RMB thousand) | 19,798 | 17,829 | | Weighted average number of ordinary shares (thousand shares) | 600,000 | 600,000 | | Basic and Diluted Earnings Per Share (RMB cents) | 3.30 | 2.97 | - As there were **no potentially dilutive ordinary shares** outstanding for the six months ended June 30, 2025, and 2024, diluted earnings per share are the same as basic earnings per share[76](index=76&type=chunk) [Movements in Property, Plant and Equipment](index=31&type=section&id=Movements%20in%20Property,%20Plant%20and%20Equipment) This note discloses the amount of additions to the Group's property, plant, and equipment for the six months ended June 30, 2025 - For the six months ended June 30, 2025, the Group added property, plant, and equipment of approximately **RMB 18.212 million**, an increase from approximately **RMB 14.403 million** in the corresponding period of 2024[77](index=77&type=chunk) [Trade and Bills Receivables](index=31&type=section&id=Trade%20and%20Bills%20Receivables) This note details the composition, impairment, credit terms, aging analysis, and Expected Credit Loss (ECL) assessment methods for the Group's trade and bills receivables, showing a slight increase in total trade receivables Composition of Trade and Bills Receivables | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade receivables | 277,828 | 267,082 | | Bills receivables | 19,947 | 26,035 | | Less: Impairment | (997) | (997) | | **Total** | **296,778** | **292,120** | - The Group grants its trade customers a credit period of up to **90 days**[79](index=79&type=chunk) Aging Analysis of Trade and Bills Receivables | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 30 days | 196,880 | 216,631 | | 31 to 60 days | 55,008 | 44,349 | | 61 to 90 days | 23,030 | 24,295 | | 91 to 180 days | 21,860 | 6,845 | | **Total** | **296,778** | **292,120** | [Prepayments and Other Receivables](index=34&type=section&id=Prepayments%20and%20Other%20Receivables) This note presents the composition of the Group's prepayments and other receivables, including refundable deposits for potential investments, prepayments, other recoverable taxes, and other amounts, with the total decreasing from year-end Composition of Prepayments and Other Receivables | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Refundable deposits for potential investments | 54,416 | 55,690 | | Prepayments | 31,532 | 41,270 | | Other recoverable taxes | 302 | 3,591 | | Others | 7,719 | 9,461 | | **Total** | **93,969** | **110,012** | - Refundable deposits for potential investments represent **US$7.6 million** (approximately **RMB 54.416 million**) paid to an independent third party for potential investments in Southeast Asian business expansion[84](index=84&type=chunk) [Amount Due from a Related Company](index=34&type=section&id=Amount%20Due%20from%20a%20Related%20Company) This note describes the nature of the amount due from a related company as unsecured, interest-free, repayable on demand, and non-trade in nature, with management assessing the credit risk as low and thus no impairment provision recognized - The amount due from a related company is **unsecured, interest-free, repayable on demand, and non-trade in nature**[83](index=83&type=chunk) - Management considers the credit risk of the amount due from a related company to be **low**, hence no impairment provision has been recognized[83](index=83&type=chunk) [Fixed Deposits](index=35&type=section&id=Fixed%20Deposits) This note discloses the amount, term, and fixed annual interest rate of the Group's fixed deposits held with banks in China - As of June 30, 2025, the Group held fixed deposits with banks in China with a one-year term and a fixed annual interest rate of **0.35%**[85](index=85&type=chunk) Fixed Deposits | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Fixed Deposits | 18,814 | 19,465 | [Trade and Bills Payables](index=35&type=section&id=Trade%20and%20Bills%20Payables%20(Notes)) This note presents the composition, aging analysis, and average credit period of the Group's trade and bills payables, with the total amount significantly decreasing from year-end Composition of Trade and Bills Payables | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade payables | 123,954 | 189,756 | | Bills payables | 6,065 | — | | **Total** | **130,019** | **189,756** | Aging Analysis of Trade and Bills Payables | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 30 days | 56,417 | 140,322 | | 31 to 60 days | 25,878 | 28,385 | | 61 to 90 days | 8,917 | 10,990 | | 91 to 180 days | 25,965 | 9,594 | | 181 to 365 days | 12,338 | 301 | | Over 365 days | 504 | 164 | | **Total** | **130,019** | **189,756** | - The average credit period for purchases of goods ranges from **30 to 90 days**[88](index=88&type=chunk) [Contract Liabilities](index=36&type=section&id=Contract%20Liabilities) This note explains that contract liabilities represent customer prepayments received for the sale of fabric products, with the total amount decreasing from year-end - Contract liabilities represent **customer prepayments** received for the sale of fabric products[89](index=89&type=chunk) Contract Liabilities | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Contract Liabilities | 1,460 | 2,124 | [Movements in Borrowings](index=36&type=section&id=Movements%20in%20Borrowings) This note discloses the amounts of borrowings raised and repaid by the Group during the reporting period, along with the weighted average effective annual interest rate of borrowings - During the interim period, the Group raised borrowings of approximately **RMB 123.488 million** and repaid borrowings of approximately **RMB 123.317 million**[90](index=90&type=chunk) - For the six months ended June 30, 2025, the weighted average effective annual interest rate for borrowings was **3.57%**, a decrease from **4.1%** in the corresponding period of 2024[90](index=90&type=chunk) [Pledge of Assets](index=37&type=section&id=Pledge%20of%20Assets) This note lists the Group's pledged assets, including buildings, right-of-use assets, and investment properties, serving as collateral for bank financing, with the total amount slightly decreasing Pledged Assets | Asset Type | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Buildings | 35,904 | 36,621 | | Right-of-use assets | 36,391 | 37,116 | | Investment properties | 44,530 | 45,297 | | **Total** | **116,825** | **119,034** | - The pledged assets serve as collateral for certain bank financing of the Group[91](index=91&type=chunk) [Share-based Payment Transactions](index=37&type=section&id=Share-based%20Payment%20Transactions) This note details the Company's share option scheme adopted in 2020, including its purpose, maximum shares issuable, grant approval requirements, and share subscription price determination principles, with no share options granted during the reporting period - The share option scheme aims to **attract and retain top talent** and drive the Group's business performance[92](index=92&type=chunk) - The share option scheme allows for the grant of share options involving up to **60,000,000 shares**[92](index=92&type=chunk) - For the six months ended June 30, 2025, **no share options** were granted under the share option scheme[93](index=93&type=chunk) [Related Party Transactions](index=39&type=section&id=Related%20Party%20Transactions) This note discloses the Group's transactions and balances with a related party (Changzhou Dongxia Real Estate Agency Co., Ltd.), including receivables, rental expenses, key management personnel compensation, and assets pledged or guaranteed by the related party Balances and Transactions with Related Party Dongxia | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Amount due from a related party (Dongxia) | 2,572 | 16,319 | | Rental expenses paid to a related party (Dongxia) | 1,600 | 3,200 | Key Management Personnel Compensation | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Short-term benefits | 2,067 | 1,996 | | Retirement benefits | 108 | 90 | | **Total** | **2,175** | **2,086** | - Certain right-of-use assets are leased from a related company, and the rental amount payable by the Group under this lease for the six months ended June 30, 2025, was **zero** (2024: **RMB 3.2 million**)[96](index=96&type=chunk) [Capital Commitments](index=41&type=section&id=Capital%20Commitments%20(Notes)) This note discloses the Group's capital expenditures contracted but not yet provided for in the condensed consolidated financial statements as of June 30, 2025, primarily for the acquisition of property, plant, and equipment and construction in progress Capital Commitments | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Capital expenditure contracted but not provided for in the condensed consolidated financial statements | 3,011 | 15,800 | - Capital commitments are primarily related to the acquisition of property, plant, and equipment and construction in progress[97](index=97&type=chunk) [Events After the Reporting Period](index=41&type=section&id=Events%20After%20the%20Reporting%20Period%20(Notes)) This note discloses a significant event after the reporting period: on July 25, 2025, the Group signed an agreement to acquire a Singaporean company, thereby indirectly controlling land use rights owned by a Vietnamese entity, with plans to develop new production facilities - On **July 25, 2025**, the Group entered into a sale and purchase agreement to acquire **100%** of the issued share capital of Brilliant Textile Pte. Ltd. for approximately **US$8.9 million** (approximately **RMB 65.2 million**)[98](index=98&type=chunk) - This acquisition aims to obtain indirect control of land in Vietnam, with plans to develop new production facilities[98](index=98&type=chunk)