香 港 交 易 及 結 算 所 有 限 公 司 及 香 港 聯 合 交 易 所 有 限 公 司（「聯交所」）對 本 公 告 的 內 容 概 不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 就 因 本 公 告 全 部 或 任 何 部 分 內 容 所 產 生 或 因 依 賴 該 等 內 容 而 引 致 的 任 何 損 失 承 擔 任 何 責 任。 TI Cloud Inc. 天潤雲股份有限公司 （於 開 曼 群 島 註 冊 成 立 的 有 限 公 司） （股 份 代 號：2167） 截 至2025年6月30日止六個月 中期業績公告 天潤雲 股 份 有 限 公 司（「本公司」或「天潤雲 」）董 事（「董 事」）會（「董事會」）欣 然 宣 佈 本 公 司 及 其 子 公 司 與 綜 合 聯 屬 實 體（統 稱「本集團」）截 至2025年6月 30日 止 六 個 月（「報告期」）的 未 經 審 核 綜 合 中 期 業 績，連 同2024年同期的比 較 數 字。該 等 中 期 業 績 已 經 本 公 司 審 計 委 員 會（「審計委員會」）審 閱。 於 本 公 ...

[I. Company Overview and Financial Summary](index=1&type=section&id=I.%20Company%20Overview%20and%20Financial%20Summary) [1.1 Financial Summary](index=1&type=section&id=1.1%20Financial%20Summary) For the six months ended June 30, 2025, the company's revenue decreased by 8.3% YoY to RMB 6,465.4 million, while net profit turned positive to RMB 448.2 million Financial Highlights | Indicator | 2025 (RMB in millions) | 2024 (Restated, RMB in millions) | Change | | :--- | :--- | :--- | :--- | | Revenue | 6,465.4 | 7,050.8 | -8.3% | | Gross Profit | 939.3 | 1,192.4 | -21.2% | | Gross Profit Margin | 14.5% | 16.9% | -2.4 p.p. | | Net Profit/(Loss) | 448.2 | (1,544.4) | N/A | | Adjusted Net Profit | 587.6 | 708.4 | -17.0% | | Adjusted Net Profit Margin | 9.1% | 10.0% | -0.9 p.p. | | Profit/(Loss) Attributable to Company Shareholders | 350.3 | (1,646.3) | N/A | | Basic Earnings/(Loss) Per Share (RMB) | 0.25 | (1.16) | N/A | | Proposed Interim Dividend (Per Share, RMB) | 0.062 | 0.03 | 106.7% | | Total Proposed Interim Dividend (RMB in millions) | 87.9 | 42.6 | 106.5% | - The Group's revenue from all four business segments declined year-over-year: **Property Management Services decreased by 0.8%** to RMB 5,328.0 million; **Value-added Services to Owners decreased by 32.7%** to RMB 519.5 million; **City Services decreased by 14.6%** to RMB 577.0 million; and **Extended Value-added Services decreased by 82.4%** to RMB 40.9 million[3](index=3&type=chunk) - The Board of Directors has proposed an interim dividend of **RMB 0.062 per share** (pre-tax) for the six months ended June 30, 2025, to reward shareholders[3](index=3&type=chunk) [II. Chairman's Statement](index=3&type=section&id=II.%20Chairman's%20Statement) [2.1 Macroeconomic and Industry Environment](index=3&type=section&id=2.1%20Macroeconomic%20and%20Industry%20Environment) The property management industry faced challenges amid global geopolitical turmoil and a bottoming real estate market, but policy guidance is steering it toward high-quality development - Global geopolitical instability and escalating Sino-US trade friction persisted, while China's economy remained stable under proactive macroeconomic policies, with a steady recovery in the consumer market[5](index=5&type=chunk) - The real estate market continued to navigate fluctuations with policy support, showing a narrowing decline and positive developments in corporate debt restructuring[5](index=5&type=chunk) - The property management industry faced economic challenges, but policy is guiding it toward standardization and high quality, requiring companies to enhance service, innovate, and leverage technology[5](index=5&type=chunk) [2.2 Business Review and Strategic Direction](index=3&type=section&id=2.2%20Business%20Review%20and%20Strategic%20Direction) The Group achieved a turnaround to profitability in the first half by focusing on service quality, optimizing its business structure, and controlling operational risks - The Group centered its strategy on property owners, refining service quality to meet residents' expectations for "good housing" and "good services"[6](index=6&type=chunk) - By optimizing its business structure, focusing on core operations, managing risks, and improving efficiency, the Group **achieved a turnaround to profitability** in the first half, maintaining stable scale and operations[6](index=6&type=chunk) [III. Business Review and Operational Highlights](index=3&type=section&id=III.%20Business%20Review%20and%20Operational%20Highlights) [3.1 Overall Performance and Scale](index=4&type=section&id=3.1%20Overall%20Performance%20and%20Scale) The Group achieved revenue of RMB 6,465.4 million and net profit of RMB 448.2 million, with a total gross floor area under management reaching 516.7 million square meters Overall Performance | Indicator | Amount (RMB in millions) | | :--- | :--- | | Revenue | 6,465.4 | | Gross Profit | 939.3 | | Net Profit | 448.2 | | Profit Attributable to Company Shareholders | 350.3 | | Basic Earnings Per Share (RMB) | 0.25 | - As of June 30, 2025, the Group's gross floor area (GFA) under management was **516.7 million sq.m.**, with a contracted GFA of **692.3 million sq.m.**, covering various residential and non-residential property types[7](index=7&type=chunk) [3.2 Service Quality Improvement and Standardization](index=4&type=section&id=3.2%20Service%20Quality%20Improvement%20and%20Standardization) The Group enhanced its service system by updating over 100 service standards and releasing a comprehensive residential service product manual - The Group is committed to making service quality its core competency, upgrading its service system and completing revisions to **over 100 service standards**[8](index=8&type=chunk) - The "A-Living Residential Graded Service Product Manual" was released, covering **24 service scenarios** and over **700 service items** to meet diverse needs[8](index=8&type=chunk) - The Group participated in drafting the national "Property Service Customer Satisfaction Evaluation" standard, demonstrating its industry influence[8](index=8&type=chunk) [3.3 Smart and Digital Empowerment](index=5&type=section&id=3.3%20Smart%20and%20Digital%20Empowerment) The Group advanced its digital transformation by applying AI technologies and launching the "Ya AI" intelligent decision-making hub to enhance operational efficiency - Increased investment in intelligent and digital upgrades, applying AI technology to security, parking, quality inspection, and emergency management[9](index=9&type=chunk) - The Group pioneered the localization of the DeepSeek model to build the **"Ya AI" intelligent decision-making hub**, improving operational efficiency and reducing management costs[9](index=9&type=chunk) - A seamless community access solution, "Touch," was launched in collaboration with Alipay and Ele.me, and has been implemented in projects across **more than 100 cities**[9](index=9&type=chunk) [3.4 Market Expansion and Regional Layout Optimization](index=5&type=section&id=3.4%20Market%20Expansion%20and%20Regional%20Layout%20Optimization) The Group adopted a prudent market strategy, focusing on about 50 key cities to enhance project density and divesting from inefficient projects - A proactive yet prudent market strategy was adopted to secure high-quality projects and ensure stable renewals, maintaining a leading market scale[10](index=10&type=chunk) - The Group enhanced clustering effects by focusing on project density in core cities and strategically adjusting its layout to target **approximately 50 key cities** for market expansion[10](index=10&type=chunk) - Expanded advantages in the non-residential market by acquiring premium public building projects while divesting from inefficient and isolated projects[10](index=10&type=chunk) [3.5 Business Structure Adjustment and Synergies](index=6&type=section&id=3.5%20Business%20Structure%20and%20Synergies) The Group is transitioning from a scale-driven to a quality-and-efficiency-driven model, optimizing its industrial structure for sustainable development - The Group is transitioning from a "scale and speed" model to a **"quality and efficiency" model**, continuously adjusting its industrial structure for sustainable development[11](index=11&type=chunk) - Value-added services to owners focused on "local lifestyle" and "asset operation," significantly improving cash flow through an asset-light model and product optimization[11](index=11&type=chunk) - The city services business optimized its project layout based on efficiency, leading to significant cash flow improvement and enhanced operational quality[11](index=11&type=chunk) [3.6 Operational Management and Brand Building](index=6&type=section&id=3.6%20Operational%20Management%20and%20Brand%20Building) The Group enhanced operational efficiency through refined management, strengthened collection of receivables, and consolidated its brand matrix with multiple brands ranked in the industry's top 100 - Continuously improved project operational efficiency through refined management, strengthened collection of receivables, and actively resolved historical outstanding payments[12](index=12&type=chunk) - Strengthened centralized management of engineering services and increased the proportion of centralized procurement for outsourced vendors to leverage economies of scale[12](index=12&type=chunk) - The Group's integration model has resulted in multiple subsidiary brands being ranked among the **top 100 industry brands**, solidifying its brand matrix[12](index=12&type=chunk) [IV. Future Outlook](index=7&type=section&id=IV.%20Future%20Outlook) [4.1 Strategic Transformation and Development Direction](index=7&type=section&id=4.1%20Strategic%20Transformation%20and%20Development%20Direction) The Group will continue its transition to a "quality and efficiency" model, focusing on owner-centric services and optimizing its layout to balance profitability and reputation - The Group will adhere to a long-term, owner-centric approach, strategically optimizing its layout to balance operational efficiency and service quality[13](index=13&type=chunk) - The transformation toward a **"quality and efficiency" enterprise** will continue, enabling self-renewal and breakthroughs in response to global economic uncertainties and intense industry competition[13](index=13&type=chunk) [4.2 Service Quality and Product Upgrades](index=7&type=section&id=4.2%20Service%20Quality%20and%20Product%20Upgrades) The Group will advance its standardization efforts, upgrade its service products to the mid-to-high end, and enhance community culture to build customer loyalty - Continue standardization to improve basic service quality, clarify grading standards, and progressively implement a residential graded standard system[14](index=14&type=chunk) - Accelerate the development of a non-residential standard system and upgrade service products to the **mid-to-high end** to meet market demands[14](index=14&type=chunk) - Strengthen community culture and build a service system that is "commensurate with price and quality" to enhance customer stickiness[14](index=14&type=chunk) [4.3 Digital and Intelligent Transformation](index=8&type=section&id=4.3%20Digital%20and%20Intelligent%20Transformation) The Group will accelerate its digital transformation by embracing new productive forces and leveraging AI to create a "future community living" experience - Accelerate the "digital and intelligent" transformation by embracing new productive forces and applying AI to provide personalized, forward-looking service experiences[15](index=15&type=chunk) - In the second half of the year, the focus will be on advancing the **smart parking system** and promoting the informatization of operations, quality, and management to support data-driven business analysis[15](index=15&type=chunk) [4.4 Business Structure and Regional Layout Optimization](index=8&type=section&id=4.4%20Business%20Structure%20and%20Regional%20Layout%20Optimization) The Group will streamline its city layout from over 200 to 50 key cities, deepening its presence in core regions to create clustering effects - Further optimize business structure and regional layout by streamlining the number of cities and deepening the presence in key regions to create clustering effects[16](index=16&type=chunk) - The residential market expansion layout will be streamlined from over 200 cities to **50 key cities**, with a particular focus on Guangzhou, Shenzhen, and Shanghai[16](index=16&type=chunk) - Inefficient and isolated projects will be divested to concentrate resources in core areas, while member enterprise resources will be integrated to selectively expand high-quality projects[16](index=16&type=chunk) [4.5 Financial Management and Operational Efficiency](index=9&type=section&id=4.5%20Financial%20Management%20and%20Operational%20Efficiency) The Group will focus on its operational fundamentals by strengthening receivables collection, controlling costs through an "expenditure based on revenue" principle, and achieving quality growth - Return to operational fundamentals by continuously strengthening the collection of receivables, controlling the scale of accounts receivable, and divesting inefficient projects to reduce overall operational risk[18](index=18&type=chunk) - Adhere to an **"expenditure based on revenue"** principle, achieving refined management through intelligent and information-based systems to ensure quality growth[18](index=18&type=chunk) - Upgrade the full-cycle cost management model with a focus on quality, restructure the cost procurement organization, and solidify long-term strategic partnerships with high-quality suppliers[18](index=18&type=chunk) [4.6 Organizational Empowerment and Talent Development](index=9&type=section&id=4.6%20Organizational%20Empowerment%20and%20Talent%20Development) The Group will act as an "enabler" by implementing precise empowerment mechanisms, deepening post-investment management, and fostering a symbiotic ecosystem with member enterprises - As an "enabler," the Group will implement precise empowerment mechanisms such as **"one policy for one district, one city, and one enterprise"** to deepen post-investment management and enhance corporate governance[19](index=19&type=chunk) - A platform-based mindset will be used to integrate strategic resources and break down management barriers with digital tools, creating a symbiotic ecosystem for the Group and its member enterprises[19](index=19&type=chunk) - Promote internal reform by streamlining management levels, improving talent quality, and configuring frontline positions in a grid-based manner to unleash team potential[19](index=19&type=chunk) [4.7 Industry Outlook and Core Competitiveness](index=10&type=section&id=4.7%20Industry%20Outlook%20and%20Core%20Competitiveness) The Group will navigate industry cycles by positioning service quality as its core competency, leveraging technology for refined operations, and pursuing a long-term development model - The Group has proactively adjusted its strategy to effectively control operational risks in response to industry cyclical fluctuations and accelerated consolidation[20](index=20&type=chunk) - **Quality will be the core competency**, allowing the Group to move beyond homogeneous competition, ensure profitability, improve efficiency, and strengthen its reputation[20](index=20&type=chunk) - Technology-enabled refined operations will consolidate the Group's leading position in its areas of strength, ensuring stability and pursuing a long-term development model[20](index=20&type=chunk) [V. Condensed Consolidated Financial Statements](index=11&type=section&id=V.%20Condensed%20Consolidated%20Financial%20Statements) [5.1 Condensed Consolidated Statement of Profit or Loss](index=11&type=section&id=5.1%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, the Group's revenue was RMB 6,465,350 thousand, with a net profit of RMB 448,233 thousand Condensed Consolidated Statement of Profit or Loss | Indicator | 2025 (RMB in thousands) | 2024 (Restated, RMB in thousands) | | :--- | :--- | :--- | | Revenue | 6,465,350 | 7,050,750 | | Cost of sales | (5,526,080) | (5,858,330) | | Gross profit | 939,270 | 1,192,420 | | Selling and marketing expenses | (15,619) | (23,603) | | Administrative expenses | (275,176) | (341,183) | | Net impairment losses on financial assets | (104,361) | (2,883,872) | | Other income | 54,986 | 41,705 | | Other losses — net | (11,961) | (32,583) | | Operating profit/(loss) | 587,139 | (2,047,116) | | Finance costs | (17,070) | (19,757) | | Share of post-tax profits of joint ventures and associates | 20,657 | 19,479 | | Profit/(loss) before income tax | 590,726 | (2,047,394) | | Income tax (expense)/credit | (142,493) | 502,997 | | Profit/(loss) for the period | 448,233 | (1,544,397) | | Profit/(loss) attributable to shareholders of the Company | 350,298 | (1,646,253) | | Non-controlling interests | 97,935 | 101,856 | | Basic and diluted earnings/(loss) per share (RMB/share) | 0.25 | (1.16) | [5.2 Condensed Consolidated Statement of Comprehensive Income](index=12&type=section&id=5.2%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group's total comprehensive income for the period was RMB 448,233 thousand Condensed Consolidated Statement of Comprehensive Income | Indicator | 2025 (RMB in thousands) | 2024 (Restated, RMB in thousands) | | :--- | :--- | :--- | | Profit/(loss) for the period | 448,233 | (1,544,397) | | Other comprehensive income | – | – | | Total comprehensive income/(expense) for the period | 448,233 | (1,544,397) | | Attributable to shareholders of the Company | 350,298 | (1,646,253) | | Attributable to non-controlling interests | 97,935 | 101,856 | [5.3 Condensed Consolidated Balance Sheet](index=13&type=section&id=5.3%20Condensed%20Consolidated%20Balance%20Sheet) As of June 30, 2025, the Group's total assets were RMB 20,346,538 thousand, with total equity of RMB 11,524,884 thousand and total liabilities of RMB 8,821,654 thousand Condensed Consolidated Balance Sheet | Indicator | June 30, 2025 (RMB in thousands) | Dec 31, 2024 (Restated, RMB in thousands) | Jan 1, 2024 (Restated, RMB in thousands) | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Total non-current assets | 7,587,879 | 7,686,869 | 7,885,115 | | Total current assets | 12,758,659 | 12,910,880 | 16,533,439 | | **Total assets** | **20,346,538** | **20,597,749** | **24,418,554** | | **Equity** | | | | | Equity attributable to shareholders of the Company | 9,713,560 | 9,452,474 | 12,874,921 | | Non-controlling interests | 1,811,324 | 1,742,622 | 1,635,991 | | **Total equity** | **11,524,884** | **11,195,096** | **14,510,912** | | **Liabilities** | | | | | Total non-current liabilities | 481,729 | 663,919 | 624,433 | | Total current liabilities | 8,339,925 | 8,738,734 | 9,283,209 | | **Total liabilities** | **8,821,654** | **9,402,653** | **9,907,642** | | **Total equity and liabilities** | **20,346,538** | **20,597,749** | **24,418,554** | [VI. Notes to the Condensed Consolidated Financial Statements](index=15&type=section&id=VI.%20Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) [6.1 General Information](index=15&type=section&id=6.1%20General%20Information) A-Living Smart City Services Co., Ltd. was incorporated in China in 1997, listed on the Hong Kong Stock Exchange in 2018, and primarily provides property management and related services - The Company was incorporated in the PRC on June 26, 1997, and was listed on the Hong Kong Stock Exchange on February 9, 2018[28](index=28&type=chunk)[29](index=29&type=chunk) - The Group is principally engaged in providing property management services, related value-added services, and city sanitation and cleaning services in the PRC[29](index=29&type=chunk) [6.2 Basis of Preparation and Business Combination under Common Control](index=15&type=section&id=6.2%20Basis%20of%20Preparation%20and%20Business%20Combination%20under%20Common%20Control) The interim financial information was prepared in accordance with HKAS 34, and prior period financial statements were restated due to a business combination under common control - The interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the HKICPA and the applicable disclosure requirements of Appendix D2 of the Listing Rules[32](index=32&type=chunk) - The Company's acquisition of 100% equity interest in Liaocheng Agile Environmental Protection Technology Co., Ltd. was accounted for as a business combination under common control using merger accounting[33](index=33&type=chunk)[34](index=34&type=chunk) - The condensed consolidated statements of profit or loss, comprehensive income, changes in equity, and cash flows for prior periods have been restated to include the results of the target company[36](index=36&type=chunk) [6.3 Accounting Policies](index=22&type=section&id=6.3%20Accounting%20Policies) The accounting policies adopted are consistent with the previous financial year, except for the treatment of business combinations under common control and estimated income tax - Except for the merger accounting for business combinations of entities under common control and estimated income tax, the accounting policies adopted are consistent with those of the previous financial year[43](index=43&type=chunk) - Certain revised standards became applicable during the current reporting period, but the Group did not change its accounting policies or make retrospective adjustments as a result[45](index=45&type=chunk) - The Group has begun assessing the impact of new or revised standards and does not expect them to have a significant effect on its results or financial position[46](index=46&type=chunk) [6.4 Revenue Breakdown](index=23&type=section&id=6.4%20Revenue%20Breakdown) The Group's revenue is primarily derived from property management services, which contributed RMB 5,328,030 thousand for the six months ended June 30, 2025 Revenue by Category | Revenue Category | Timing of Revenue Recognition | 2025 (RMB in thousands) | 2024 (Restated, RMB in thousands) | | :--- | :--- | :--- | :--- | | Property management services | Over time | 5,328,030 | 5,371,520 | | Value-added services related to property management — Other value-added services | Over time | 527,558 | 867,078 | | Value-added services related to property management — Sales of goods | At a point in time | 32,784 | 136,908 | | City sanitation, cleaning services and others | Over time | 576,978 | 675,244 | | **Total revenue** | | **6,465,350** | **7,050,750** | [6.5 Other Income](index=23&type=section&id=6.5%20Other%20Income) For the six months ended June 30, 2025, the Group's other income totaled RMB 54,986 thousand, mainly from government grants and interest income Other Income by Source | Income Source | 2025 (RMB in thousands) | 2024 (Restated, RMB in thousands) | | :--- | :--- | :--- | | Interest income — from deposits and loans to third parties | 22,763 | 30,250 | | Interest income — from loans to related parties | 259 | 223 | | Government grants | 28,808 | 7,116 | | Tax credits | 1,161 | 2,555 | | Rental income | 445 | 434 | | Others | 1,550 | 1,127 | | **Total** | **54,986** | **41,705** | - Government grants mainly consist of financial subsidies from local governments, and there are no unfulfilled conditions attached to the recognized grants[50](index=50&type=chunk) - Tax credits mainly comprise additional VAT deductions applicable to the Company and certain subsidiaries[50](index=50&type=chunk) [6.6 Other Losses — Net](index=24&type=section&id=6.6%20Other%20Losses%20%E2%80%94%20Net) For the six months ended June 30, 2025, the Group's net other losses narrowed to RMB 11,961 thousand, primarily from fair value losses on investment properties Net Other Losses by Category | Loss Category | 2025 (RMB in thousands) | 2024 (Restated, RMB in thousands) | | :--- | :--- | :--- | | Net fair value gains on financial assets at FVTPL | – | 50 | | Gains on redemption and disposal of financial assets at FVTPL | 1,721 | 15,653 | | Gain/(loss) on disposal of investments accounted for using the equity method | 1 | (28,156) | | Loss on disposal of subsidiaries | (2,689) | (12,655) | | Exchange losses | (365) | (97) | | Fair value losses on investment properties | (6,618) | (6,571) | | Loss on disposal of property, plant and equipment | (3,340) | (750) | | Others | (671) | (57) | | **Total** | **(11,961)** | **(32,583)** | [6.7 Finance Costs](index=24&type=section&id=6.7%20Finance%20Costs) For the six months ended June 30, 2025, the Group's finance costs decreased to RMB 17,070 thousand, mainly comprising interest expenses on borrowings Finance Costs by Category | Cost Category | 2025 (RMB in thousands) | 2024 (Restated, RMB in thousands) | | :--- | :--- | :--- | | Interest expenses on borrowings | 16,320 | 18,154 | | Interest and finance charges paid/payable on lease liabilities | 750 | 1,603 | | **Total** | **17,070** | **19,757** | [6.8 Income Tax](index=25&type=section&id=6.8%20Income%20Tax) For the six months ended June 30, 2025, the Group recorded an income tax expense of RMB 142,493 thousand, compared to a tax credit in the prior period Income Tax Breakdown | Tax Category | 2025 (RMB in thousands) | 2024 (Restated, RMB in thousands) | | :--- | :--- | :--- | | Current income tax — PRC enterprise income tax | 183,034 | 236,899 | | Deferred income tax — PRC enterprise income tax | (40,541) | (739,896) | | **Total** | **142,493** | **(502,997)** | - The applicable enterprise income tax rate for group entities in Mainland China is **25%**[56](index=56&type=chunk) - Guangzhou Yatian Network Technology Co., Ltd. enjoys a preferential income tax rate of **15%** as a high-tech enterprise, and certain subsidiaries in western cities or the Hainan Free Trade Zone also benefit from a 15% rate[56](index=56&type=chunk)[57](index=57&type=chunk) - Certain subsidiaries of the Group are entitled to preferential income tax treatment for small and micro enterprises, with an income tax rate of **20%**[57](index=57&type=chunk) [6.9 Earnings/(Loss) Per Share](index=26&type=section&id=6.9%20Earnings%2F%EF%BC%88Loss%EF%BC%89%20Per%20Share) For the six months ended June 30, 2025, basic earnings per share was RMB 0.25, with no dilutive potential ordinary shares outstanding Earnings Per Share Calculation | Indicator | 2025 (RMB in thousands) | 2024 (Restated, RMB in thousands) | | :--- | :--- | :--- | | Profit/(loss) attributable to shareholders of the Company | 350,298 | (1,646,253) | | Weighted average number of ordinary shares in issue (excluding treasury shares) (in thousands) | 1,419,611 | 1,420,001 | | Basic earnings/(loss) per share (RMB/share) | 0.25 | (1.16) | - For the six months ended June 30, 2025 and 2024, the Company had no potential ordinary shares in issue, and diluted earnings/(loss) per share was equal to basic earnings/(loss) per share[59](index=59&type=chunk) [6.10 Property, Plant and Equipment and Right-of-Use Assets](index=26&type=section&id=6.10%20Property%2C%20Plant%20and%20Equipment%20and%20Right-of-Use%20Assets) As of June 30, 2025, the net carrying amount of property, plant and equipment was RMB 820,280 thousand, and right-of-use assets was RMB 85,132 thousand Asset Breakdown | Asset Category | Net Carrying Amount at June 30, 2025 (RMB in thousands) | Net Carrying Amount at Jan 1, 2025 (Restated, RMB in thousands) | | :--- | :--- | :--- | | Buildings | 333,874 | 336,898 | | Transportation equipment | 98,973 | 103,122 | | Office equipment | 18,963 | 22,378 | | Machinery | 368,470 | 415,231 | | **Subtotal of Property, Plant and Equipment** | **820,280** | **877,629** | | Right-of-use assets | 85,132 | 86,399 | | **Total** | **905,412** | **964,028** | - During the period, additions to property, plant and equipment amounted to **RMB 32,596 thousand**, and additions to right-of-use assets were **RMB 17,128 thousand**[61](index=61&type=chunk) - As of June 30, 2025, certain self-used property, plant and equipment with a net carrying amount of **RMB 318,748 thousand** were pledged as collateral for the Group's borrowings[62](index=62&type=chunk) [6.11 Investment Properties](index=27&type=section&id=6.11%20Investment%20Properties) As of June 30, 2025, the Group's investment properties had a carrying amount of RMB 189,214 thousand, with a revaluation loss of RMB 6,618 thousand recognized during the period Investment Property Movement | Indicator | 2025 (RMB in thousands) | 2024 (Restated, RMB in thousands) | | :--- | :--- | :--- | | Beginning of the period | 195,832 | 262,995 | | Revaluation losses recognized in profit or loss | (6,618) | (6,571) | | **End of the period** | **189,214** | **256,424** | - As of June 30, 2025, all of the Group's investment properties were classified as **Level 3** of the fair value hierarchy, valued based on significant unobservable inputs[67](index=67&type=chunk) - The fair value of investment properties was estimated using the direct comparison method, with the main Level 3 input being market price (**RMB 12,000–28,000 per sq.m.**)[67](index=67&type=chunk)[70](index=70&type=chunk) [6.12 Other Intangible Assets and Goodwill](index=29&type=section&id=6.12%20Other%20Intangible%20Assets%20and%20Goodwill) As of June 30, 2025, the net carrying amount of other intangible assets was RMB 823,817 thousand, and goodwill was RMB 2,543,438 thousand Asset Breakdown | Asset Category | Net Carrying Amount at June 30, 2025 (RMB in thousands) | Net Carrying Amount at Jan 1, 2025 (Restated, RMB in thousands) | | :--- | :--- | :--- | | Computer software | 15,438 | 18,013 | | Trademarks | 3,130 | 3,650 | | Customer relationships and uncompleted contracts | 805,249 | 892,558 | | **Subtotal of Other Intangible Assets** | **823,817** | **914,221** | | Goodwill | 2,543,438 | 2,551,858 | | **Total** | **3,367,255** | **3,466,079** | - Management assessed that no impairment provision for goodwill was recognized for the periods ended June 30, 2025 and 2024[72](index=72&type=chunk) [6.13 Trade and Other Receivables and Prepayments](index=31&type=section&id=6.13%20Trade%20and%20Other%20Receivables%20and%20Prepayments) As of June 30, 2025, the Group's total trade and other receivables and prepayments amounted to RMB 9,970,623 thousand, with the majority of trade receivables aged within one year Receivables and Prepayments Breakdown | Category | June 30, 2025 (RMB in thousands) | Dec 31, 2024 (Restated, RMB in thousands) | | :--- | :--- | :--- | | Trade receivables (net of impairment provision) | 4,766,916 | 4,396,682 | | Other receivables (net of impairment provision) | 3,570,959 | 2,538,790 | | Prepayments (net of impairment provision) | 1,632,748 | 1,450,333 | | **Subtotal** | **9,970,623** | **8,385,805** | | Less: Non-current portion of prepayments | (1,009,504) | (966,256) | | **Current portion** | **8,961,119** | **7,419,549** | Aging Analysis of Trade Receivables | Trade Receivables Aging | June 30, 2025 (RMB in thousands) | Dec 31, 2024 (Restated, RMB in thousands) | | :--- | :--- | :--- | | Within 1 year | 3,469,913 | 3,422,627 | | 1 to 2 years | 1,465,219 | 1,927,848 | | 2 to 3 years | 2,611,470 | 2,416,349 | | 3 years and above | 1,357,533 | 695,352 | | **Total** | **8,904,135** | **8,462,176** | - Trade receivables of **RMB 107,236 thousand** were pledged as collateral for borrowings of subsidiaries[74](index=74&type=chunk) [6.14 Share Capital](index=33&type=section&id=6.14%20Share%20Capital) As of June 30, 2025, the Company's issued and fully paid-up share capital remained unchanged at 1,420,000,800 shares, amounting to RMB 1,420,001 thousand Share Capital Details | Indicator | June 30, 2025 (Number of shares) | Dec 31, 2024 (Number of shares) | June 30, 2025 (RMB in thousands) | Dec 31, 2024 (RMB in thousands) | | :--- | :--- | :--- | :--- | :--- | | Issued and fully paid-up share capital | 1,420,000,800 | 1,420,000,800 | 1,420,001 | 1,420,001 | [6.15 Trade and Other Payables](index=33&type=section&id=6.15%20Trade%20and%20Other%20Payables) As of June 30, 2025, the Group's total trade and other payables amounted to RMB 6,189,036 thousand, with the majority of trade payables aged within one year Payables Breakdown | Category | June 30, 2025 (RMB in thousands) | Dec 31, 2024 (Restated, RMB in thousands) | | :--- | :--- | :--- | | Trade payables — related parties | 150,034 | 156,983 | | Trade payables — third parties | 2,793,399 | 2,831,774 | | Other payables — related parties | 175,106 | 287,244 | | Other payables — third parties | 2,111,793 | 2,287,269 | | Dividends payable | 80,089 | 80,162 | | Accrued payroll | 801,180 | 860,353 | | Other tax payables | 77,435 | 77,125 | | **Total trade and other payables** | **6,189,036** | **6,580,910** | | Less: Non-current portion of other payables | (10,692) | (6,989) | | **Current portion of trade and other payables** | **6,178,344** | **6,573,921** | Aging Analysis of Trade Payables | Trade Payables Aging | June 30, 2025 (RMB in thousands) | Dec 31, 2024 (Restated, RMB in thousands) | | :--- | :--- | :--- | | Within 1 year | 2,409,470 | 2,416,986 | | 1 to 2 years | 308,161 | 364,525 | | 2 to 3 years | 150,101 | 161,611 | | 3 years and above | 75,701 | 45,635 | | **Total** | **2,943,433** | **2,988,757** | [6.16 Dividends](index=34&type=section&id=6.16%20Dividends) The Board proposed an interim dividend of RMB 0.062 per share (pre-tax) for the six months ended June 30, 2025, totaling RMB 87,950 thousand - The Board of Directors proposed an interim dividend of **RMB 0.062 per share** (pre-tax) for the six months ended June 30, 2025[77](index=77&type=chunk) - The total interim dividend of **RMB 87,950 thousand** is subject to approval by shareholders at the upcoming extraordinary general meeting[77](index=77&type=chunk) - This dividend has not been recognized as a liability in the interim condensed consolidated financial statements and will be recognized in equity for the year ending December 31, 2025[77](index=77&type=chunk) [VII. Management Discussion and Analysis](index=35&type=section&id=VII.%20Management%20Discussion%20and%20Analysis) [7.1 Business Review](index=35&type=section&id=7.1%20Business%20Review) In the first half of 2025, the Group focused on operational quality and efficiency, enhancing service quality and strengthening its core business amid a complex environment - The Group focused on operational quality and efficiency, striving to enhance service quality and solidify the foundation of its main business[79](index=79&type=chunk) - Strengthened strategic focus, optimized city and business layouts, promoted high-quality expansion, and implemented an **"expenditure based on revenue"** operational strategy to enhance refined management and collections[79](index=79&type=chunk) - Drove upgrades to its information platform through technological innovation to optimize quality management and operational control, continuously improving business performance[79](index=79&type=chunk) [7.2 Financial Review](index=35&type=section&id=7.2%20Financial%20Review) The Group's revenue decreased by 8.3% YoY to RMB 6,465.4 million in H1 2025, while net profit turned positive to RMB 448.2 million, largely due to a significant reduction in impairment losses on financial assets [7.2.1 Revenue Analysis](index=35&type=section&id=7.2.1%20Revenue%20Analysis) The Group's total revenue for the six months ended June 30, 2025, was RMB 6,465.4 million, a year-over-year decrease of 8.3% Revenue by Business Line | Business Line | 2025 Revenue (RMB in millions) | Revenue Mix | 2024 Revenue (Restated, RMB in millions) | Revenue Mix | Growth Rate | | :--- | :--- | :--- | :--- | :--- | :--- | | Property management services | 5,328.0 | 82.4% | 5,371.5 | 76.2% | -0.8% | | — Residential property projects | 2,289.5 | 35.4% | 2,328.0 | 33.0% | -1.7% | | — Non-residential property projects | 3,038.5 | 47.0% | 3,043.5 | 43.2% | -0.2% | | Value-added services to owners | 519.5 | 8.1% | 771.5 | 10.9% | -32.7% | | City services | 577.0 | 8.9% | 675.3 | 9.6% | -14.6% | | **Subtotal** | **6,424.5** | **99.4%** | **6,818.3** | **96.7%** | **-5.8%** | | Extended value-added services | 40.9 | 0.6% | 232.5 | 3.3% | -82.4% | | — Pre-delivery property management services | 40.7 | 0.6% | 148.7 | 2.1% | -72.6% | | — Other extended value-added services | 0.2 | 0.0% | 83.8 | 1.2% | -99.8% | | **Total** | **6,465.4** | **100.0%** | **7,050.8** | **100.0%** | **-8.3%** | [7.2.2 Property Management Services](index=36&type=section&id=7.2.2%20Property%20Management%20Services) Property management services revenue was RMB 5,328.0 million, with a total GFA under management of 516.7 million square meters as of June 30, 2025 - Revenue from property management services reached **RMB 5,328.0 million**, a decrease of 0.8% from the same period last year[83](index=83&type=chunk) - As of June 30, 2025, the Group's total GFA under management was **516.7 million sq.m.**, with approximately 81.8% from third-party projects[84](index=84&type=chunk) - The number of projects under management was **4,194**, covering 28 provinces and 201 cities, with a total contracted GFA of **692.3 million sq.m.**[86](index=86&type=chunk)[88](index=88&type=chunk) [7.2.3 Value-added Services to Owners](index=38&type=section&id=7.2.3%20Value-added%20Services%20to%20Owners) Revenue from value-added services to owners decreased by 32.7% to RMB 519.5 million, primarily due to adjustments in community retail and a decline in the home decoration business - Revenue from value-added services to owners reached **RMB 519.5 million**, a decrease of 32.7% from the same period in 2024, accounting for about 8.1% of total revenue[89](index=89&type=chunk) - Revenue from living and comprehensive services **decreased by 55.0%**, mainly due to structural adjustments in community retail, changes in the home services business model, and reduced demand for second-hand housing brokerage[89](index=89&type=chunk) - Revenue from home decoration and furnishing services **decreased by 46.3%**, primarily due to the continued downturn in the real estate market[89](index=89&type=chunk) - Revenue from space operation and other services **decreased by 2.5%**, as the occupancy rate and unit price of community advertising spaces declined[91](index=91&type=chunk) - Revenue from institutional value-added services **decreased by 29.9%**, due to changes in institutional client demand and the withdrawal from certain catering services[91](index=91&type=chunk) [7.2.4 City Services](index=39&type=section&id=7.2.4%20City%20Services) City services revenue decreased by 14.6% to RMB 577.0 million as the Group continued to divest projects with poor collection records to ensure operational quality - The city services business continued to replace projects, exiting those with poor collection records to ensure operational quality and receivables collection[90](index=90&type=chunk) - During the period, revenue from city services reached **RMB 577.0 million**, a decrease of 14.6% from the same period in 2024, accounting for about 8.9% of total revenue[90](index=90&type=chunk) [7.2.5 Extended Value-added Services](index=40&type=section&id=7.2.5%20Extended%20Value-added%20Services) Revenue from extended value-added services fell sharply by 82.4% to RMB 40.9 million due to the sluggish real estate market and a strategic reduction in cyclical businesses - Revenue from extended value-added services reached **RMB 40.9 million**, a decrease of 82.4% from the same period last year, accounting for about 0.6% of total revenue[92](index=92&type=chunk) - The decline was mainly due to the sluggish real estate development and sales market, which reduced demand for pre-delivery property management services[92](index=92&type=chunk) - The Group prioritized cash flow by **proactively reducing cyclical businesses** to control risks and enhance operational quality[92](index=92&type=chunk) [7.2.6 Cost of Sales](index=40&type=section&id=7.2.6%20Cost%20of%20Sales) The cost of sales decreased by 5.7% to RMB 5,526.1 million, a smaller decline than revenue due to investments in quality improvement and rigid labor costs - The cost of sales was **RMB 5,526.1 million**, a year-over-year decrease of 5.7%[93](index=93&type=chunk) - The decrease was mainly due to the reduced scale of extended and owner value-added services, but the cost reduction was less than the revenue decline due to increased investment in quality improvement and rigid labor costs[93](index=93&type=chunk) [7.2.7 Gross Profit Analysis](index=41&type=section&id=7.2.7%20Gross%20Profit%20Analysis) The Group's gross profit decreased by 21.2% to RMB 939.3 million, with the gross profit margin declining by 2.4 percentage points to 14.5% Gross Profit by Business Line | Business Line | 2025 Gross Profit (RMB in millions) | 2025 Gross Margin | 2024 Gross Profit (Restated, RMB in millions) | 2024 Gross Margin | Growth Rate | | :--- | :--- | :--- | :--- | :--- | :--- | | Property management services | 732.9 | 13.8% | 879.7 | 16.4% | -16.7% | | Value-added services to owners | 112.9 | 21.7% | 150.7 | 19.5% | -25.1% | | City services | 83.8 | 14.5% | 121.5 | 18.0% | -31.0% | | **Subtotal** | **929.6** | **14.5%** | **1,151.9** | **16.9%** | **-19.3%** | | Extended value-added services | 9.7 | 23.6% | 40.5 | 17.4% | -76.2% | | **Total** | **939.3** | **14.5%** | **1,192.4** | **16.9%** | **-21.2%** | - The gross profit margin for property management services **decreased by 2.6 p.p.**, mainly due to increased investment in service quality and limited room for price increases in non-residential projects[96](index=96&type=chunk) - The gross profit margin for value-added services to owners **increased by 2.2 p.p.**, due to optimized business structure and flexible operational strategies[96](index=96&type=chunk) - The gross profit margin for city services **decreased by 3.5 p.p.** due to the replacement of projects with poor collection records, while the margin for extended value-added services **increased by 6.2 p.p.** from exiting low-efficiency projects[101](index=101&type=chunk) [7.2.8 Selling and Marketing Expenses](index=42&type=section&id=7.2.8%20Selling%20and%20Marketing%20Expenses) Selling and marketing expenses decreased by 34.0% to RMB 15.6 million, representing 0.2% of total revenue - Selling and marketing expenses were **RMB 15.6 million**, a decrease of 34.0% from the same period in 2024, accounting for 0.2% of revenue[97](index=97&type=chunk) [7.2.9 Administrative Expenses](index=42&type=section&id=7.2.9%20Administrative%20Expenses) Administrative expenses decreased by 19.3% to RMB 275.2 million, representing 4.3% of total revenue - Administrative expenses were **RMB 275.2 million**, a decrease of 19.3% from the same period in 2024, accounting for 4.3% of revenue[98](index=98&type=chunk) [7.2.10 Net Impairment Losses on Financial Assets](index=42&type=section&id=7.2.10%20Net%20Impairment%20Losses%20on%20Financial%20Assets) Net impairment losses on financial assets decreased sharply by 96.4% to RMB 104.4 million, as no significant new provisions were made for related party receivables - Net impairment losses on financial assets were **RMB 104.4 million**, a decrease of 96.4% from the same period in 2024[99](index=99&type=chunk) - The decrease was mainly because **no significant new impairment provisions** were made for trade and other receivables from related parties during the period[99](index=99&type=chunk) [7.2.11 Other Income](index=42&type=section&id=7.2.11%20Other%20Income) Other income increased by 31.8% to RMB 55.0 million, primarily due to changes in government grants - Other income was **RMB 55.0 million**, an increase of 31.8% from the same period in 2024, mainly due to changes in government grants[100](index=100&type=chunk) [7.2.12 Income Tax](index=43&type=section&id=7.2.12%20Income%20Tax) The Group recorded an income tax expense of RMB 142.5 million, compared to a tax credit of RMB 503.0 million in the prior period - The income tax expense was **RMB 142.5 million**, compared to an income tax credit of RMB 503.0 million in the same period of 2024[102](index=102&type=chunk) - The income tax rate was **24.1%**, a decrease of 0.5 percentage points from the same period in 2024[102](index=102&type=chunk) [7.2.13 Profit](index=43&type=section&id=7.2.13%20Profit) The Group achieved a net profit of RMB 448.2 million, a significant turnaround from a net loss of RMB 1,544.4 million in the prior period - Net profit was **RMB 448.2 million**, compared to a net loss of RMB 1,544.4 million in the same period of 2024, mainly because no significant new impairment provisions were made for related party receivables[103](index=103&type=chunk) - The net profit margin **increased by 28.8 percentage points** to 6.9% from –21.9% in the same period of 2024[103](index=103&type=chunk) - Adjusted net profit was **RMB 587.6 million**, a decrease of 17.0% from the same period in 2024, with the adjusted net profit margin decreasing by 0.9 percentage points to 9.1%[103](index=103&type=chunk) [7.2.14 Current Assets, Reserves and Capital Structure](index=43&type=section&id=7.2.14%20Current%20Assets%2C%20Reserves%20and%20Capital%20Structure) As of June 30, 2025, the Group's total equity increased by 2.9% to RMB 11,524.9 million, while cash and cash equivalents decreased by 22.4% - Current assets reached **RMB 12,758.7 million**, a decrease of 1.2% from December 31, 2024[104](index=104&type=chunk) - Cash and cash equivalents were **RMB 2,574.7 million**, a decrease of 22.4% from December 31, 2024[104](index=104&type=chunk) - Total equity was **RMB 11,524.9 million**, an increase of 2.9% from December 31, 2024, mainly contributed by the profit realized during the period[104](index=104&type=chunk) [7.2.15 Property, Plant and Equipment](index=44&type=section&id=7.2.15%20Property%2C%20Plant%20and%20Equipment) The net amount of property, plant and equipment decreased by 6.5% to RMB 820.3 million as of June 30, 2025 - The net amount of property, plant and equipment reached **RMB 820.3 million**, a decrease of 6.5% from December 31, 2024[105](index=105&type=chunk) [7.2.16 Other Intangible Assets](index=44&type=section&id=7.2.16%20Other%20Intangible%20Assets) The carrying value of intangible assets decreased by 9.9% to RMB 823.8 million as of June 30, 2025 - The carrying value of intangible assets was **RMB 823.8 million**, a decrease of 9.9% from December 31, 2024[106](index=106&type=chunk) - Intangible assets mainly include the trademark value of member enterprises (RMB 28.9 million), customer relationships and uncompleted contracts (RMB 1,764.0 million), and self-developed and purchased software[106](index=106&type=chunk) [7.2.17 Goodwill](index=44&type=section&id=7.2.17%20Goodwill) Goodwill stood at RMB 2,543.4 million as of June 30, 2025, with no significant impairment risk identified during the period - Goodwill reached **RMB 2,543.4 million**[107](index=107&type=chunk) - During the period, **no significant goodwill impairment risk** was identified[108](index=108&type=chunk) [7.2.18 Financial Assets at Fair Value Through Profit or Loss](index=44&type=section&id=7.2.18%20Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) Financial assets at FVTPL decreased by 48.7% to RMB 1,023.7 million due to the redemption of certain financial products - Financial assets at fair value through profit or loss were **RMB 1,023.7 million**, a decrease of 48.7% from December 31, 2024[109](index=109&type=chunk) - The decrease was mainly due to the **redemption of certain financial products**[109](index=109&type=chunk) [7.2.19 Trade and Other Receivables and Prepayments](index=45&type=section&id=7.2.19%20Trade%20and%20Other%20Receivables%20and%20Prepayments) Total trade and other receivables and prepayments increased by 18.9% to RMB 9,970.6 million, driven by an increase in third-party business transactions - Total trade and other receivables and prepayments amounted to **RMB 9,970.6 million**, an increase of 18.9% from December 31, 2024[110](index=110&type=chunk) - Trade receivables were **RMB 8,904.1 million**, an increase of 5.2% from December 31, 2024, mainly due to the impact of the collection cycle[110](index=110&type=chunk) - Other receivables were **RMB 4,826.3 million**, an increase of 26.6% from December 31, 2024, mainly due to an increase in business transactions with third parties[110](index=110&type=chunk) [7.2.20 Trade and Other Payables](index=45&type=section&id=7.2.20%20Trade%20and%20Other%20Payables) Total trade and other payables decreased by 6.0% to RMB 6,189.0 million due to the settlement of matured payments and cost control measures - Total trade and other payables amounted to **RMB 6,189.0 million**, a decrease of 6.0% from December 31, 2024[111](index=111&type=chunk) - The decrease was mainly due to the **payment of matured amounts and cost control**[111](index=111&type=chunk) [7.2.21 Borrowings](index=45&type=section&id=7.2.21%20Borrowings) As of June 30, 2025, the Group had long-term borrowings of RMB 325.5 million and short-term borrowings of RMB 104.0 million - The Group had long-term borrowings of **RMB 325.5 million**, of which RMB 178.9 million is repayable within one year[112](index=112&type=chunk) - The Group also had short-term borrowings with a maturity of less than one year amounting to **RMB 104.0 million**[112](index=112&type=chunk) [7.2.22 Gearing Ratio](index=45&type=section&id=7.2.22%20Gearing%20Ratio) The Group's gearing ratio was 3.7% as of June 30, 2025 - As of June 30, 2025, the gearing ratio was **3.7%**[113](index=113&type=chunk) [7.2.23 Current and Deferred Income Tax Liabilities](index=45&type=section&id=7.2.23%20Current%20and%20Deferred%20Income%20Tax%20Liabilities) Current income tax liabilities decreased by 3.9% to RMB 447.0 million due to lower taxable income - Current income tax liabilities were **RMB 447.0 million**, a decrease of 3.9% from December 31, 2024, mainly due to a decrease in taxable income[114](index=114&type=chunk) - Deferred income tax liabilities decreased from RMB 246.8 million as of December 31, 2024, to **RMB 220.4 million**[114](index=114&type=chunk) [7.3 Pledge of Assets](index=46&type=section&id=7.3%20Pledge%20of%20Assets) As of June 30, 2025, borrowings totaling RMB 265.8 million were secured by certain of the Group's assets - As of June 30, 2025, long-term borrowings of **RMB 207.9 million** and short-term borrowings of **RMB 57.9 million** were secured by certain of the Group's property, plant and equipment, investment properties, and trade receivables[115](index=115&type=chunk) [7.4 Material Investments Held, and Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=46&type=section&id=7.4%20Material%20Investments%20Held%2C%20and%20Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20Associates%20and%20Joint%20Ventures) The Group had no material investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures during the period - During the period, the Group did not hold any material investments, nor did it have any material acquisitions or disposals of subsidiaries, associates, or joint ventures[116](index=116&type=chunk) [7.5 Contingent Liabilities](index=46&type=section&id=7.5%20Contingent%20Liabilities) The Group had no significant contingent liabilities as of June 30, 2025 - As of June 30, 2025, the Group had no significant contingent liabilities[117](index=117&type=chunk) [7.6 Principal Risks and Uncertainties](index=46&type=section&id=7.6%20Principal%20Risks%20and%20Uncertainties) The Group faces industry risks from macroeconomic changes, rising operational costs, and potential impairment losses, as well as foreign exchange risk [7.6.1 Industry Risks](index=46&type=section&id=7.6.1%20Industry%20Risks) The Group's operations are exposed to risks from China's macroeconomic and real estate environments, rising labor costs, and potential impairment of receivables - The Group's operations are affected by changes in the macroeconomic environment of China's economy and real estate industry, as well as the regulatory environment and measures affecting the property management industry[119](index=119&type=chunk) - The Group's profit margin and operating results may be adversely affected by increases in labor or other operating costs[120](index=120&type=chunk) - Failure to collect property management fees from customers in a timely manner may result in impairment losses on receivables and affect goodwill assessment and operating cash flow[120](index=120&type=chunk) [7.6.2 Foreign Exchange Risk](index=47&type=section&id=7.6.2%20Foreign%20Exchange%20Risk) The Group's foreign exchange risk is limited as its business is primarily in China, with management continuously monitoring exposure and considering hedging strategies - The Group's business is primarily concentrated in China, and apart from bank deposits and financial assets denominated in HKD, USD, and AUD, the Group does not face any other significant direct exchange rate fluctuation risks[121](index=121&type=chunk) - Management will continue to monitor foreign exchange risks and adopt prudent measures to formulate hedging strategies to mitigate exchange risks when appropriate[121](index=121&type=chunk) [7.7 Employees and Remuneration Policies](index=47&type=section&id=7.7%20Employees%20and%20Remuneration%20Policies) As of June 30, 2025, the Group had 81,872 employees, with total staff costs amounting to RMB 2,712.1 million - As of June 30, 2025, the Group had **81,872** employees, and total staff costs for the period were **RMB 2,712.1 million**[122](index=122&type=chunk) - The remuneration plan is determined with reference to market levels, employee performance, and contributions, and provides a comprehensive benefits plan and career development opportunities[122](index=122&type=chunk) [VIII. Material Events After the Reporting Period](index=48&type=section&id=VIII.%20Material%20Events%20After%20the%20Reporting%20Period) [8.1 Interim Dividend](index=48&type=section&id=8.1%20Interim%20Dividend) The Board proposed an interim dividend of RMB 0.062 per share (pre-tax), which is subject to a 10% withholding tax for non-resident enterprise H-shareholders - The Board of Directors proposed to distribute an interim dividend of **RMB 0.062 per share** (pre-tax) for the six months ended June 30, 2025, subject to approval at an extraordinary general meeting[124](index=124&type=chunk) - The interim dividend payable to H-shareholders will be declared in RMB and paid in HKD, with the exchange rate based on the average RMB to HKD exchange rate published by the People's Bank of China for the five business days preceding the EGM[124](index=124&type=chunk) - A **10% enterprise income tax** must be withheld when a PRC domestic enterprise distributes dividends for 2008 and subsequent years to non-resident enterprise H-shareholders[125](index=125&type=chunk) [8.2 Interim Dividend for Southbound Trading Investors](index=50&type=section&id=8.2%20Interim%20Dividend%20for%20Southbound%20Trading%20Investors) Dividends for Southbound Trading investors are paid in RMB, with a 20% personal income tax withheld for individual investors - Cash dividends for Southbound Trading investors are distributed in **RMB**[127](index=127&type=chunk) - For individual investors from mainland China investing in H-shares through Southbound Trading, the H-share company will withhold personal income tax at a rate of **20%**[128](index=128&type=chunk) - For enterprise investors from mainland China, the H-share company will not withhold dividend income tax, which should be self-declared; dividends are exempt from enterprise income tax if the H-shares are held continuously for 12 months[128](index=128&type=chunk) [8.3 Closure of Register of Members](index=51&type=section&id=8.3%20Closure%20of%20Register%20of%20Members) The register of members for H-shares will be closed from December 1 to December 4, 2025, to determine entitlement to the interim dividend - To determine the list of H-shareholders entitled to the interim dividend, the register of members for H-shares will be closed from **Monday, December 1, 2025, to Thursday, December 4, 2025** (both days inclusive)[130](index=130&type=chunk) - All completed share transfer forms, accompanied by the relevant share certificates, must be lodged with the Company's H-share registrar in Hong Kong, Tricor Investor Services Limited, by 4:30 p.m. on Friday, November 28, 2025[130](index=130&type=chunk) [8.4 Despatch of Circular](index=51&type=section&id=8.4%20Despatch%20of%20Circular) A circular containing details of the proposed interim dividend will be published on or before November 20, 2025 - A circular containing information on the proposed interim dividend, along with the notice of the EGM and the proxy form, will be published on the websites of the Hong Kong Stock Exchange and the Company on or before **November 20, 2025**, as additional time is needed for its preparation[131](index=131&type=chunk) [IX. Other Information](index=51&type=section&id=IX.%20Other%20Information) [9.1 Review of Interim Results](index=51&type=section&id=9.1%20Review%20of%20Interim%20Results) The Audit Committee has reviewed the Group's interim financial statements, which were approved by the Board on August 26, 2025 - The Company's Audit Committee has reviewed the Group's financial statements for the period, including discussions with management on accounting principles, internal controls, and financial reporting matters[132](index=132&type=chunk) - The Audit Committee comprises independent non-executive Directors Mr. Wang Gonghu (Chairman), Mr. Weng Guoqiang, and Mr. Lai Kah Ho[132](index=132&type=chunk) - The unaudited interim financial information was approved and authorized for issue by the Board of Directors on **August 26, 2025**[133](index=133&type=chunk) [9.2 Compliance with the Model Code for Securities Transactions by Directors and Supervisors](index=52&type=section&id=9.2%20Compliance%20with%20the%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors%20and%20Supervisors) The Company has adopted a code for securities transactions by directors and supervisors, and all have confirmed compliance during the period - The Company has adopted a code for securities transactions by directors and supervisors with terms no less exacting than the standards set out in the Model Code in Appendix C3 of the Listing Rules[134](index=134&type=chunk) - Specific inquiries were made to all directors and supervisors, and they have confirmed their compliance with the securities dealing code during the period[134](index=134&type=chunk) - The Company has also established written guidelines for securities transactions by employees who may possess unpublished price-sensitive information, which are no less stringent than the Model Code[134](index=134&type=chunk) [9.3 Compliance with the Corporate Governance Code](index=52&type=section&id=9.3%20Compliance%20with%20the%20Corporate%20Governance%20Code) The Board has reviewed the Company's corporate governance practices and confirmed full compliance with the applicable code provisions during the period - The Company has adopted the principles and code provisions contained in the Corporate Governance Code in Part 2 of Appendix C1 of the Listing Rules[135](index=135&type=chunk) - The Board has reviewed the Company's corporate governance practices and is satisfied that the Company has fully complied with all applicable code provisions of the Corporate Governance Code during the period[135](index=135&type=chunk) [9.4 Purchase, Sale or Redemption of the Company's Listed Securities](index=52&type=section&id=9.4%20Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) During the period, the Company repurchased 1,460,250 H-shares for a total consideration of HK$4,214,002.50, which are held as treasury shares - During the period, the Company repurchased a total of **1,460,250 H-shares** on the Hong Kong Stock Exchange for a total consideration of **HK$4,214,002.50**, which are held as treasury shares[136](index=136&type=chunk) - As of June 30, 2025, the Company held a total of **1,460,250 treasury shares**[136](index=136&type=chunk) - Save as disclosed above, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the period[137](index=137&type=chunk) [9.5 Publication of Interim Results and Interim Report](index=53&type=section&id=9.5%20Publication%20of%20Interim%20Results%20and%20Interim%20Report) This announcement is available on the websites of the Company and the Hong Kong Stock Exchange, with the interim report to be published in due course - This announcement is published on the websites of the Company (www.agileliving.com.cn) and the Hong Kong Stock Exchange (www.hkex.com.hk)[138](index=138&type=chunk) - The interim report for the period, containing all information required by the Listing Rules, will be available on the above websites in due course, with printed copies sent to shareholders who have opted to receive them[138](index=138&type=chunk) [9.6 Board of Directors](index=53&type=section&id=9.6%20Board%20of%20Directors) As of the date of this announcement, the Board of Directors consists of seven members, including four executive directors and three independent non-executive directors - As of the date of this announcement, the Board of Directors consists of seven members: Mr. Chan Cheuk Hung (Co-chairman), Mr. Wang Haiyang (Co-chairman), Mr. Li Dalong (President and CEO), Mr. Chan Sze Yeung (Vice President), Mr. Wang Gonghu, Mr. Weng Guoqiang, and Mr. Lai Kah Ho[139](index=139&type=chunk) - Mr. Chan Cheuk Hung, Mr. Wang Haiyang, Mr. Li Dalong, and Mr. Chan Sze Yeung are executive Directors; Mr. Wang Gonghu, Mr. Weng Guoqiang, and Mr. Lai Kah Ho are independent non-executive Directors[139](index=139&type=chunk)[140](index=140&type=chunk)

Company Information This section provides Mokingran Gold Jewelry Group's fundamental company information, including board and committee compositions, with recent changes noted - Board member changes: **Mr. Wang Guoxin** appointed Executive Director from May 16, 2025, Ms. Jiang Liying retired; **Mr. Weng Xin**, **Mr. Ding Xiaodong** appointed Independent Non-executive Directors from May 16, 2025, Mr. Wang Gongyong, Mr. Huang Fangliang retired[9](index=9&type=chunk) - Audit Committee Chairman change: **Mr. Ding Xiaodong** appointed Audit Committee Chairman from May 16, 2025, Mr. Wang Gongyong retired[9](index=9&type=chunk) - Company website: http://www.mokingran.com[10](index=10&type=chunk) - Stock code: **02585**[11](index=11&type=chunk) Management Discussion and Analysis This section reviews Mokingran Gold Jewelry Group's H1 2025 operations, noting a 4.7% revenue increase but a net loss due to rising gold prices, alongside strategic market responses [Industry Review](index=5&type=section&id=Industry%20Review) High gold prices in H1 2025 suppressed jewelry consumption but boosted investment demand, while e-commerce and "Guofeng" trends reshaped the market - High gold prices impact consumption: In H1 2025, the average closing price of Au9999 was over RMB 200/gram higher year-on-year, leading to a **26.0% year-on-year decrease** in gold jewelry consumption[13](index=13&type=chunk) Overview of Domestic Gold Consumption in H1 2025 | Indicator | H1 2025 Consumption (tonnes) | Year-on-Year Change (%) | | :--- | :--- | :--- | | Total Domestic Gold Consumption | 505.205 | -3.54 | | Gold Jewelry Consumption | 199.826 | -26.0 | | Gold Bar and Coin Consumption | 264.242 | +23.69 | | Industrial and Other Gold Consumption | 41.137 | +2.59 | - E-commerce dominance: Young consumers' purchasing power significantly increased through e-commerce and live streaming platforms, removing geographical limitations for gold jewelry sales[15](index=15&type=chunk) - "Guofeng" trend and youth appeal: "Guofeng" style ornaments, combining modern fashion with traditional intangible cultural heritage elements, are favored by young consumers, driving design innovation[16](index=16&type=chunk) [Business Review](index=6&type=section&id=Business%20Review) The Group's H1 2025 revenue grew 4.7% to RMB 10,450.9 million, but a net loss of RMB 64.0 million was recorded, alongside significant overseas expansion and new product launches Total Revenue and Net Loss in H1 2025 | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Year-on-Year Change (%) | | :--- | :--- | :--- | | Total Revenue | 10,450.9 | 9,979.9 | +4.7 | | Net Loss/(Profit) for the Period | (64.0) | 52.3 | From profit to loss | - Sales network: As of June 30, 2025, the offline sales network covered **2,733 stores** (**2,704 franchised stores**, **29 self-operated stores**), with continued expansion of online platforms[17](index=17&type=chunk) - Overseas business expansion: Overseas revenue reached **RMB 144.7 million**, a **285.9% year-on-year increase**, with products sold to North America, Europe, the Middle East, and Southeast Asia[18](index=18&type=chunk) - New product lines launched: Introduced "Blue and White Ancient Charm Series," "Red Oriental Charm Series," and "Golden Palace Fan," among other "Guofeng" new products combining traditional aesthetics with exquisite craftsmanship[19](index=19&type=chunk)[21](index=21&type=chunk)[23](index=23&type=chunk)[25](index=25&type=chunk) [Marketing Strategy Upgrade, Solid Brand Building](index=9&type=section&id=Marketing%20Strategy%20Upgrade%2C%20Solid%20Brand%20Building) In H1 2025, the company upgraded its brand and marketing strategies, enhancing sales and exposure through diverse channels, attracting young consumers, and earning prestigious brand recognitions - Brand upgrade and integrated marketing: Launched brand upgrade strategy and omni-channel integrated marketing, enhancing sales performance and brand exposure through multi-channel promotion[29](index=29&type=chunk) - New media operations: Increased efforts in new media operations and content marketing, effectively boosting young demographic preference and store traffic[29](index=29&type=chunk) - Brand accolades: Included in the "Good Products Shandong" brand directory and retained its position among "China's 500 Most Valuable Brands"[29](index=29&type=chunk) - CCTV program promotion: Featured on China Central Television's "Chinese New Product Night" program in March 2025, promoting brand philosophy[29](index=29&type=chunk) - Corporate social responsibility: Sponsored a group wedding in May 2025, fulfilling corporate social responsibility and increasing brand visibility[31](index=31&type=chunk) [Financial Review, Operating Results and Analysis](index=10&type=section&id=Financial%20Review%2C%20Operating%20Results%20and%20Analysis) H1 2025 saw a 4.7% revenue increase to RMB 10,450.9 million, but a net loss of RMB 64.0 million resulted from higher gold price-related financial instrument losses, despite improved gross profit Overview of Total Revenue in H1 2025 | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Year-on-Year Change (%) | | :--- | :--- | :--- | | Total Revenue | 10,450,919 | 9,979,744 | +4.7 | Revenue by Product and Service in H1 2025 | Product/Service | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Year-on-Year Change (%) | | :--- | :--- | :--- | | Gold Jewelry and Other Gold Products | 10,135,196 | 9,834,885 | +3.1 | | K-Gold Jewelry, Diamond-Set Jewelry and Other Products | 262,860 | 99,925 | +163.2 | | Services | 52,863 | 44,934 | +17.8 | Revenue by Geographical Market in H1 2025 | Geographical Market | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Year-on-Year Change (%) | | :--- | :--- | :--- | | Mainland China | 10,306,178 | 9,942,215 | +3.7 | | Overseas | 144,741 | 37,529 | +285.9 | - Gross profit and gross margin: Gross profit increased by **33.2% year-on-year** to **RMB 822.5 million**, and gross margin improved from **6.2% to 7.9%**, primarily due to rising gold prices and increased overseas sales[41](index=41&type=chunk) - Other expenses and net gains/losses: Recorded a net loss of **RMB 695.9 million**, compared to RMB 347.8 million in the same period last year, primarily due to increased losses from Au (T+D) contracts and gold leases caused by rising gold prices[46](index=46&type=chunk) - Net loss for the period: Recorded a net loss of **RMB 64.0 million**, compared to a net profit of RMB 52.3 million in the same period last year[51](index=51&type=chunk) [Financial Position Review](index=13&type=section&id=Financial%20Position%20Review) As of June 30, 2025, the Group's total assets were RMB 5,122.2 million, with net assets at RMB 2,285.7 million, reflecting shifts in inventory, payables, prepayments, and gold leases Overview of Assets and Liabilities in H1 2025 | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Year-on-Year Change (%) | | :--- | :--- | :--- | | Total Assets | 5,122.2 | 4,934.7 | +3.8 | | Total Liabilities | 2,836.5 | 2,457.0 | +15.4 | | Net Assets | 2,285.7 | 2,477.6 | -7.7 | - Inventory decrease: Inventory was **RMB 2,406.4 million**, a **5.4% year-on-year decrease**, primarily due to a reduction in raw materials[54](index=54&type=chunk) - Prepayments increase: Prepayments, deposits, and other receivables increased by **9.5% year-on-year** to **RMB 592.9 million**, mainly due to the increased value of gold leased to customers caused by rising gold prices[56](index=56&type=chunk) - Cash and cash equivalents increase: Cash and cash equivalents were **RMB 849.3 million**, an increase of **52.7%** from the end of 2024[58](index=58&type=chunk) - Trade payables and bills payable decrease: Decreased by **55.0% year-on-year** to **RMB 177.4 million**, primarily due to reduced use of bills payable for raw material purchases[59](index=59&type=chunk) - Gold leases significantly increase: Gold leases increased by **84.2% year-on-year** to **RMB 661.6 million**, primarily due to increased gold lease commitments and the fair value increase of borrowed gold[62](index=62&type=chunk) - Capital expenditure decrease: Capital expenditure was **RMB 10.8 million**, a significant decrease from RMB 165.1 million as of December 31, 2024[66](index=66&type=chunk) [Employees and Remuneration Policy](index=16&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had 1,833 employees, with remuneration based on performance, and continuous investment in talent development and harmonious labor relations - Employee count: As of June 30, 2025, **1,833 full-time employees** (December 31, 2024: 1,884 employees)[72](index=72&type=chunk) - Remuneration policy: Determined based on scope of duties, industry practice, educational background, experience, and performance, offering basic salary, year-end bonuses, allowances, and in-kind benefits[72](index=72&type=chunk) - Talent development: Continuous investment in recruitment, vocational training (3-6 months), and internal training programs, with regular employee performance reviews[73](index=73&type=chunk) - Labor relations: No strikes or labor disputes with significant business impact occurred during the reporting period[73](index=73&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=16&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital%20Structure) As of June 30, 2025, the Group maintained strong liquidity with RMB 5,122.2 million in total assets, a 1.6x current ratio, and sufficient working capital for future needs - Asset ratio: As of June 30, 2025, interest-bearing borrowings were approximately **RMB 1,511.8 million**, total assets approximately **RMB 5,122.2 million**, and the asset ratio approximately **29.5%** (December 31, 2024: 27.3%)[74](index=74&type=chunk) Net Current Assets and Current Ratio | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Net Current Assets | 1,762.1 | 1,996.5 | | Current Ratio | 1.6 times | 1.9 times | - Cash and cash equivalents: As of June 30, 2025, cash and cash equivalents (including pledged/restricted deposits) were approximately **RMB 1,236.8 million** (December 31, 2024: RMB 1,022.8 million)[75](index=75&type=chunk) - Borrowings increase: Borrowings (including current and non-current portions) were **RMB 1,511.8 million**, primarily for general operating needs[77](index=77&type=chunk) - Sufficiency of working capital: The Directors believe the Group will have sufficient working capital to meet future financing and operating capital needs, based on expected profitability and long-term relationships with major banks[77](index=77&type=chunk) [Outlook](index=17&type=section&id=Outlook) The company anticipates favorable conditions from global economic recovery and stable gold prices, focusing on prudent operations, sales network expansion, product optimization, overseas market development, and gold price risk management - Market opportunities: Anticipates global economic recovery, stabilizing gold prices, and potential structural growth[78](index=78&type=chunk) - Sales network strategy: Consolidate channel penetration and brand upgrading, refine city and market management, deepen e-commerce platform and private domain traffic deployment, and increase penetration among young customer segments[79](index=79&type=chunk) - Product strategy: Optimize product lines, offer customized promotion plans, combine holiday marketing with new product launches, and enhance customer stickiness and loyalty[80](index=80&type=chunk) - Overseas market expansion: Launch international online operation and promotion models, leveraging international social media and shopping platforms, focusing on core markets and gradually expanding[81](index=81&type=chunk) - Gold price risk management: Implement measures to mitigate adverse effects of short-term sharp gold price increases, strengthening internal controls for Au (T+D) business and gold leases[81](index=81&type=chunk) Corporate Governance and Other Information This section details H1 2025 corporate governance compliance, including board and shareholder interests, share award scheme, H-share full circulation, and management changes, reflecting a commitment to high standards [Compliance with Corporate Governance Code](index=19&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The company fully complied with all provisions of the HKEX Listing Rules' Corporate Governance Code in H1 2025, demonstrating a commitment to high standards - Full compliance: For the six months ended June 30, 2025, the company complied with all code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules[83](index=83&type=chunk) [Compliance with the Model Code for Securities Transactions by Directors of Listed Issuers](index=19&type=section&id=Compliance%20with%20the%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors%20of%20Listed%20Issuers) The company adopted the Model Code for directors' securities transactions, with all directors confirming full compliance and no employee breaches during the reporting period - Director compliance: All directors confirmed full compliance with the Model Code during the reporting period[84](index=84&type=chunk) - Employee compliance: No instances of employees breaching the Model Code were found[84](index=84&type=chunk) [Audit Committee and Review of Interim Results and Interim Report](index=19&type=section&id=Audit%20Committee%20and%20Review%20of%20Interim%20Results%20and%20Interim%20Report) The Audit Committee, composed of three INEDs, reviewed H1 2025 interim financial results, confirming compliance and appropriate disclosures, though the statements were unaudited - Committee composition: Composed of three independent non-executive directors: **Mr. Ding Xiaodong (Chairman)**, **Mr. Bai Xianyue**, and **Mr. Weng Xin**[85](index=85&type=chunk) - Review conclusion: The Audit Committee reviewed and deemed the interim financial results compliant with relevant accounting standards, rules, and regulations, with appropriate disclosures[85](index=85&type=chunk) - Unreviewed/unaudited: The condensed consolidated financial statements in this interim report were not reviewed or audited by Deloitte Touche Tohmatsu[85](index=85&type=chunk) [Share Capital](index=19&type=section&id=Share%20Capital) As of June 30, 2025, the company's total share capital was RMB 273,023,466.00, comprising 273,023,466 shares, with no treasury shares held - Total share capital: **RMB 273,023,466.00**[86](index=86&type=chunk) - Share composition: **273,023,466 shares**, comprising **40,000,000 unlisted shares** and **233,023,466 H shares**[86](index=86&type=chunk) - Treasury shares: As of June 30, 2025, the company held no treasury shares[87](index=87&type=chunk) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures](index=20&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures) As of June 30, 2025, executive directors held significant share interests through various ownership forms, with Mr. Wang Zhongshan and Ms. Zhang Xiuqin holding a substantial combined stake Overview of Directors' Shareholdings | Name and Position | Share Description | Nature of Interest | Number of Shares | Approximate Interest Percentage | | :--- | :--- | :--- | :--- | :--- | | Mr. Wang Zhongshan (Executive Director) | H Shares (L) | Beneficial Owner | 64,760,000 | 23.72% | | | | Controlled Corporation Interest | 22,000,000 | 8.06% | | | | Spouse Interest | 78,000,000 | 28.57% | | Ms. Zhang Xiuqin (Executive Director) | H Shares (L) | Beneficial Owner | 60,000,000 | 21.98% | | | | Controlled Corporation Interest | 18,000,000 | 6.59% | | | | Spouse Interest | 86,760,000 | 31.78% | | Mr. Wang Guoxin (Executive Director) | Unlisted Shares (L) | Controlled Corporation Interest | 40,000,000 | 14.65% | - Spouse interests and controlled corporate interests: **Mr. Wang Zhongshan** and **Ms. Zhang Xiuqin** are spouses and indirectly hold shares through employee shareholding platforms (Jinmeng Partnership, Jinyuan Partnership, Jinlong Partnership) and Tianjin Yuanyinmeng (50% owned by **Mr. Wang Guoxin** and **Ms. Wang Na** each)[88](index=88&type=chunk) [Major Shareholders' Interests and Short Positions](index=21&type=section&id=Major%20Shareholders'%20Interests%20and%20Short%20Positions) As of June 30, 2025, Jinmeng Partnership, Ms. Wang Na, and Tianjin Yuanyinmeng were major shareholders, each holding 5% or more of the company's shares Overview of Major Shareholders' Shareholdings | Name and Position | Share Description | Nature of Interest | Number of Shares | Approximate Interest Percentage | | :--- | :--- | :--- | :--- | :--- | | Jinmeng Partnership | H Shares (L) | Beneficial Owner | 22,000,000 | 8.06% | | Ms. Wang Na | Unlisted Shares (L) | Controlled Corporation Interest | 40,000,000 | 14.65% | | Tianjin Yuanyinmeng | Unlisted Shares (L) | Beneficial Owner | 40,000,000 | 14.65% | - Employee shareholding platform: **Jinmeng Partnership** is one of the employee shareholding platforms[92](index=92&type=chunk) - Tianjin Yuanyinmeng: **50% owned by Mr. Wang Guoxin** and **Ms. Wang Na** each[93](index=93&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=21&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) Neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities during the reporting period, holding no treasury shares as of June 30, 2025 - No securities transactions: During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities[94](index=94&type=chunk) - No treasury shares: As of June 30, 2025, the company held no treasury shares[95](index=95&type=chunk) [Pledge of Shares by Controlling Shareholders](index=21&type=section&id=Pledge%20of%20Shares%20by%20Controlling%20Shareholders) No controlling shareholders pledged their shares in the company to secure debts or provide other support during the reporting period - No share pledges: During the reporting period, no controlling shareholders pledged any of their shares in the company[96](index=96&type=chunk) [Company Loan Agreements or Financial Assistance](index=22&type=section&id=Company%20Loan%20Agreements%20or%20Financial%20Assistance) During the reporting period, the company provided no disclosable financial assistance or guarantees to associated companies, nor did it breach any loan agreements - No financial assistance/guarantees: During the reporting period, the company provided no financial assistance or guarantees to associated companies[97](index=97&type=chunk) - No loan agreement breaches: During the reporting period, the company did not enter into any loan agreements involving specific performance covenants by controlling shareholders, and there were no breaches of any loan agreement terms[97](index=97&type=chunk) [Share Scheme](index=22&type=section&id=Share%20Scheme) The company adopted a Share Award Scheme on February 10, 2025, to attract and retain talent, aligning interests with shareholders, with a 10-year term, 10% share limit, and performance-based vesting [Purpose](index=22&type=section&id=Purpose) The Share Award Scheme aims to attract, incentivize, and retain talent through equity, enhancing the incentive mechanism and aligning interests to maximize company value - Attract, incentivize, and retain talent: Provide equity opportunities to attract, incentivize, and retain skilled and experienced personnel[99](index=99&type=chunk) - Improve incentive mechanism: Attract, incentivize, and retain core employees and service providers who contribute significantly to the company's continuous operation, development, and long-term growth[99](index=99&type=chunk) - Align shareholder interests: Closely align the interests of beneficiaries with those of shareholders, investors, and the company, enhancing corporate cohesion and maximizing company value[99](index=99&type=chunk) [Term](index=22&type=section&id=Term) The Share Award Scheme is valid for **ten years**, from February 10, 2025, to February 9, 2035 - Validity period: Valid for **ten (10) years** from the adoption date, until February 9, 2035[98](index=98&type=chunk) [Administration](index=22&type=section&id=Administration) The Share Award Scheme is approved by the general meeting as the highest authority, with the board and/or its delegates serving as the executive body - Highest authority: The general meeting is responsible for reviewing and approving the adoption of the Share Award Scheme[100](index=100&type=chunk) - Executive body: The board and/or its authorized persons are the executive body for the Share Award Scheme within their respective scopes of authority[100](index=100&type=chunk) [Eligible Participants](index=23&type=section&id=Eligible%20Participants) Eligible participants include full-time employees, associated entity participants, and service providers, with disqualification for regulatory breaches; unvested awards are reclaimed upon ineligibility, except for work-related injury or death - Main categories: Employee participants (full-time, excluding connected persons), associated entity participants (excluding connected persons), and service providers and partners (excluding connected persons)[102](index=102&type=chunk) - Disqualification conditions: Publicly censured or penalized by securities regulators in the past 12 months, violating laws and regulations, severely harming company interests, etc[102](index=102&type=chunk) - Award share reclamation conditions: If a participant ceases to be eligible due to reasons such as resignation, expiration or termination of employment contract, reaching statutory retirement age, accidental injury, or death, awarded but unvested shares will be immediately reclaimed[102](index=102&type=chunk)[107](index=107&type=chunk) - Special circumstances: For those injured or deceased due to work-related incidents, awarded but unvested shares will continue to vest[107](index=107&type=chunk) [Scheme Limit and Grant of Awards](index=24&type=section&id=Scheme%20Limit%20and%20Grant%20of%20Awards) The maximum award shares under the scheme is **10% of issued shares** (27,302,346 shares), with specific terms detailed in award letters to beneficiaries - Scheme limit: Shall not exceed **10% of the total issued shares** as of the adoption date (i.e., **27,302,346 shares**)[105](index=105&type=chunk) - Grant method: Specific terms such as grant date, number of award shares, and vesting conditions will be detailed in award letters[105](index=105&type=chunk) [Restrictions](index=24&type=section&id=Restrictions) The Share Award Scheme is limited to "non-connected persons," prohibiting awards to connected persons and during periods of non-approval, prospectus issuance, legal violations, scheme limit breaches, or blackout periods - Non-connected persons restriction: Awards shall not be granted to connected persons of the company[106](index=106&type=chunk) - Prohibited grant situations: Including lack of approval, requirement to issue a prospectus, violation of laws and regulations, exceeding the scheme limit, expiration of the scheme term, authorized persons possessing inside information, or during blackout periods before results announcements[112](index=112&type=chunk) [Awards and Funding Source](index=25&type=section&id=Awards%20and%20Funding%20Source) To fulfill award requirements, the board will direct the trustee to purchase H shares using internal funds or trust cash via on-market or off-market transactions - Purchase method: The board instructs the trustee to purchase H shares through on-market or off-market transactions[109](index=109&type=chunk) - Funding source: The Group's internal funds or cash income from the trust[110](index=110&type=chunk) [Vesting of Awards](index=25&type=section&id=Vesting%20of%20Awards) Awards vest based on company performance and conditions in the award letter, with a board-determined vesting period of at least **12 months**, after which shares are released or sold for cash - Vesting conditions: Subject to the company's performance targets and other vesting conditions specified in the relevant award letter[111](index=111&type=chunk) - Vesting period: Determined by the board, with each vesting period not less than **twelve (12) months**[113](index=113&type=chunk) - Post-vesting treatment: The trustee may release the award shares to selected beneficiaries, or sell them and pay the actual sale price in cash[113](index=113&type=chunk) [Forfeiture of Awards](index=26&type=section&id=Forfeiture%20of%20Awards) Award shares are immediately forfeited and become returned shares held by the trustee if beneficiaries fail to meet vesting conditions - Forfeiture condition: Failure to fulfill vesting conditions[114](index=114&type=chunk) - Treatment: The relevant award shares are immediately forfeited and become returned shares held by the trustee[114](index=114&type=chunk) [Voting Rights and Dividends](index=26&type=section&id=Voting%20Rights%20and%20Dividends) Neither beneficiaries nor the trustee can exercise voting rights for H shares held in trust; dividends from unvested shares are retained by the trustee, while vested shares' dividends go to beneficiaries - Voting rights restriction: Neither selected beneficiaries nor the trustee shall exercise voting rights for H shares held by the trustee[115](index=115&type=chunk) - Dividend treatment: Dividends from unvested and returned shares are retained by the trustee; dividends from vested award shares are received by beneficiaries[115](index=115&type=chunk) [Amendments and Termination](index=26&type=section&id=Amendments%20and%20Termination) Any amendments to the Share Award Scheme require board resolution; the scheme terminates after **ten years** from adoption or an earlier board-determined date - Amendment method: Any amendments or supplements shall be made by board resolution[116](index=116&type=chunk) - Termination conditions: Expiration of **ten (10) years** from the adoption date, or an earlier termination date determined by the board[116](index=116&type=chunk) [Appointment of Trustee](index=26&type=section&id=Appointment%20of%20Trustee) The company appointed an independent professional trustee under a trust deed for the Share Award Scheme, ensuring independence of the trustee and its beneficial owners - Trustee appointment: The company has appointed a professional trustee[117](index=117&type=chunk) - Independence: Both the trustee and its ultimate beneficial owners are independent third parties[117](index=117&type=chunk) [Interim Dividend](index=27&type=section&id=Interim%20Dividend) The Board resolved not to declare an interim dividend for the six months ended June 30, 2025 - No interim dividend: The Board resolved not to declare an interim dividend for the six months ended June 30, 2025[119](index=119&type=chunk) [Changes in Information of Directors and Senior Management](index=27&type=section&id=Changes%20in%20Information%20of%20Directors%20and%20Senior%20Management) The company formed its third Board of Directors on May 16, 2025, comprising executive directors Mr. Wang Zhongshan, Ms. Zhang Xiuqin, Mr. Wang Guoxin, Mr. Wang Zegang, and independent non-executive directors Mr. Bai Xianyue, Mr. Weng Xin, and Mr. Ding Xiaodong - Third Board of Directors established: Established at the annual general meeting on **May 16, 2025**[120](index=120&type=chunk) - Board members: Including **Mr. Wang Zhongshan**, **Ms. Zhang Xiuqin**, **Mr. Wang Guoxin**, **Mr. Wang Zegang** (Executive Directors) and **Mr. Bai Xianyue**, **Mr. Weng Xin**, **Mr. Ding Xiaodong** (Independent Non-executive Directors)[120](index=120&type=chunk) [Other Significant Events During the Reporting Period](index=27&type=section&id=Other%20Significant%20Events%20During%20the%20Reporting%20Period) During the reporting period, the company held EGM and AGM, passing resolutions on a share award scheme, H-share full circulation (164.76 million shares converted), board appointments, and committee revisions - First Extraordinary General Meeting in 2025: Held on **February 10, 2025**, passing special resolutions including the adoption of a share award scheme, amendments to the articles of association, and H-share full circulation[121](index=121&type=chunk)[123](index=123&type=chunk) - H-share full circulation progress: **164,760,000 unlisted shares** were converted to H-shares on **April 25, 2025**, and commenced listing on the HKEX on **April 28, 2025**. The company is processing the full circulation application for the remaining **40,000,000 unlisted shares**[122](index=122&type=chunk)[124](index=124&type=chunk) - Annual General Meeting: Held on **May 16, 2025**, passing special resolutions including the abolition of the supervisory committee, amendments to the company's articles of association, and the appointment of the third Board of Directors[126](index=126&type=chunk)[131](index=131&type=chunk) - Board committee changes: The "Strategy Committee" was renamed "Strategy and Sustainable Development Committee," with its terms of reference revised to include ESG-related responsibilities; the terms of reference for the Audit Committee, Nomination Committee, and Remuneration and Appraisal Committee were also revised[128](index=128&type=chunk)[129](index=129&type=chunk) - Senior management appointments: **Mr. Wang Zhongshan** appointed Chairman of the third Board of Directors, and **Mr. Wang Guoxin** appointed General Manager of the company[132](index=132&type=chunk)[136](index=136&type=chunk) [Significant Events After Reporting Period](index=29&type=section&id=Significant%20Events%20After%20Reporting%20Period) The Board confirmed no significant events after the reporting period beyond those already disclosed in this interim report - No significant events: The Board confirmed no significant events after the reporting period requiring shareholders' attention[134](index=134&type=chunk) [Use of Proceeds](index=29&type=section&id=Use%20of%20Proceeds) The company raised **RMB 420.7 million** net proceeds from its November 2024 listing, utilizing **RMB 11.7 million** by June 30, 2025, with the remainder to be fully deployed by end-2026 - Net proceeds: **HKD 452.5 million** (approximately **RMB 420.7 million**)[135](index=135&type=chunk) Overview of Use of Proceeds | Purpose | Proportion of Proposed Allocation in Prospectus (%) | Proposed Allocation in Prospectus (RMB million) | Actual Use During Reporting Period (RMB million) | Unutilized Amount as of End of Reporting Period (RMB million) | Expected Timetable | | :--- | :--- | :--- | :--- | :--- | :--- | | Production Expansion Plan | 50.0 | 210.4 | 7.5 | 202.9 | To be fully utilized by end of 2026 | | Expansion of Sales Network (Subtotal) | 34.0 | 143.0 | — | 143.0 | To be fully utilized by end of 2026 | | Upgrade Information Technology (Subtotal) | 16.0 | 67.3 | 4.2 | 63.1 | To be fully utilized by end of 2025 | | **Total** | **100** | **420.7** | **11.7** | **409.0** | | - Placement of unutilized proceeds: All remaining net proceeds are deposited in certain licensed financial institutions in China[135](index=135&type=chunk) Consolidated Statement of Profit or Loss and Other Comprehensive Income For H1 2025, the Group reported revenue of RMB 10,450,919 thousand but incurred a net loss of RMB 64,015 thousand, primarily due to increased cost of sales and financial instrument losses Key Data from Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 10,450,919 | 9,979,744 | | Cost of Sales | (9,628,441) | (9,362,238) | | Gross Profit | 822,478 | 617,506 | | Other Income | 8,484 | 10,648 | | Distribution and Selling Expenses | (108,169) | (118,939) | | Research and Development Expenses | (12,332) | (11,258) | | Administrative Expenses | (49,184) | (40,471) | | Other Expenses and Net Gains and Losses | (695,934) | (347,823) | | Finance Costs | (42,390) | (35,432) | | Reversal of/(Impairment Loss) under Expected Credit Loss Model, Net | 5,975 | (238) | | Listing Expenses | — | (7,132) | | (Loss)/Profit Before Tax | (71,072) | 66,861 | | Income Tax Credit/(Expense) | 7,057 | (14,609) | | **(Loss)/Profit and Total Comprehensive (Expense)/Income for the Period** | **(64,015)** | **52,252** | - Basic and diluted (loss)/earnings per share: **RMB (0.26)** (2024: RMB 0.21)[139](index=139&type=chunk) Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets were RMB 5,122,233 thousand, with total liabilities at RMB 2,836,544 thousand, resulting in net assets of RMB 2,285,689 thousand Key Data from Consolidated Statement of Financial Position | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | **Non-current Assets** | 636,770 | 695,753 | | Property, Plant and Equipment | 365,915 | 381,444 | | Deferred Tax Assets | 120,266 | 41,866 | | **Current Assets** | 4,485,463 | 4,238,903 | | Inventories | 2,406,392 | 2,544,284 | | Cash and Cash Equivalents | 849,257 | 556,167 | | **Current Liabilities** | 2,723,364 | 2,242,388 | | Borrowings | 1,427,406 | 1,167,496 | | Gold Leases | 661,604 | 359,087 | | **Non-current Liabilities** | 113,180 | 214,621 | | **Net Assets** | **2,285,689** | **2,477,647** | | **Total Equity** | **2,285,689** | **2,477,647** | Consolidated Statement of Changes in Equity For H1 2025, equity attributable to owners decreased from RMB 2,457,722 thousand to RMB 2,259,688 thousand, driven by period loss, share repurchases, and declared dividends Key Data from Consolidated Statement of Changes in Equity | Indicator | June 30, 2025 (RMB thousand) | January 1, 2025 (RMB thousand) | | :--- | :--- | :--- | | Equity Attributable to Owners of the Company | 2,259,688 | 2,457,722 | | Non-controlling Interests | 26,001 | 19,925 | | **Total Equity** | **2,285,689** | **2,477,647** | - Key change factors: Total (loss)/profit and comprehensive (expense)/income for the period: **RMB (70,091) thousand**; Share repurchases: **RMB (46,036) thousand**; Dividends declared: **RMB (81,907) thousand**[143](index=143&type=chunk) Consolidated Statement of Cash Flows For H1 2025, the Group generated net cash from operating, investing, and financing activities, resulting in an increase of RMB 289,423 thousand in cash and cash equivalents to RMB 849,257 thousand Key Data from Consolidated Statement of Cash Flows | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Net Cash Generated From/(Used In) Operating Activities | 65,606 | (13,685) | | Net Cash Generated From Investing Activities | 95,922 | 65,028 | | Net Cash Generated From Financing Activities | 127,895 | 156,733 | | Net Increase in Cash and Cash Equivalents | 289,423 | 208,076 | | Cash and Cash Equivalents at End of Period | 849,257 | 364,034 | Notes to the Consolidated Financial Statements This section provides detailed notes to the H1 2025 condensed consolidated financial statements, covering company information, accounting policies, revenue, expenses, balance sheet changes, dividends, share capital, financial instruments, and related party transactions [General Information](index=36&type=section&id=General%20Information) Mokingran Gold Jewelry Group Co., Ltd., established in China on September 8, 2000, primarily designs, produces, wholesales, and retails jewelry, with financial statements presented in RMB - Date of establishment: **September 8, 2000**[147](index=147&type=chunk) - Principal activities: Design, production, wholesale, and retail of jewelry[147](index=147&type=chunk) - Functional currency: **RMB**[148](index=148&type=chunk) [Basis of Preparation](index=36&type=section&id=Basis%20of%20Preparation) The condensed consolidated financial statements are prepared on a historical cost basis, excluding financial instruments measured at fair value - Basis of preparation: Historical cost basis, with financial instruments measured at fair value[149](index=149&type=chunk) [Accounting Policies](index=36&type=section&id=Accounting%20Policies) The condensed consolidated financial statements adhere to HKAS 34 and HKEX Listing Rules, with no significant impact from the first-time application of revised HKFRS - Accounting standards: Hong Kong Accounting Standard 34 and Listing Rules[150](index=150&type=chunk) - New standards application: First-time application of revised Hong Kong Financial Reporting Standards, with no significant impact on financial position and performance[151](index=151&type=chunk) [Revenue and Segment Information](index=37&type=section&id=Revenue%20and%20Segment%20Information) The Group operates a single segment in China, primarily deriving revenue from mainland China through sales of gold jewelry, K-gold and diamond-set jewelry, and related services - Single operating segment: The Group has only one operating and reportable segment[152](index=152&type=chunk) - Geographical revenue source: The vast majority of revenue is from mainland China (**98.6%**), with overseas revenue accounting for **1.4%** and growing by **285.9% year-on-year**[152](index=152&type=chunk) Revenue by Type | Goods or Service Type | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Gold Jewelry and Other Gold Products | 10,135,196 | 9,834,885 | | K-Gold Jewelry, Diamond-Set Jewelry and Other Products | 262,860 | 99,925 | | Other Services | 52,863 | 44,934 | | **Total** | **10,450,919** | **9,979,744** | - Revenue recognition timing: **RMB 10,425,104 thousand** recognized at a point in time, and **RMB 25,815 thousand** recognized over a period of time[152](index=152&type=chunk) [Other Income](index=38&type=section&id=Other%20Income) H1 2025 other income was RMB 8,484 thousand, a **19.8% year-on-year decrease**, mainly due to reduced VAT super deduction, with key sources including interest, franchisee income, rent, and government grants Overview of Other Income | Source | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest Income from Bank and Other Deposits | 1,435 | 2,261 | | Other Income from Franchisees and Provincial Agents | 2,896 | 1,533 | | Rental Income | 1,241 | 1,741 | | Government Grants | 2,748 | 2,844 | | VAT Super Deduction | 164 | 2,165 | | Others | — | 104 | | **Total** | **8,484** | **10,648** | - Reason for decrease: Primarily due to reduced VAT super deduction[42](index=42&type=chunk)[154](index=154&type=chunk) [Other Expenses and Net Gains and Losses](index=39&type=section&id=Other%20Expenses%20and%20Net%20Gains%20and%20Losses) H1 2025 saw a significant net loss of RMB 695,934 thousand, primarily driven by increased realized losses from Au (T+D) contracts and unrealized losses from gold leases - Significant increase in net loss: Recorded a net loss of **RMB 695,934 thousand**, compared to RMB 347,823 thousand in the same period last year[155](index=155&type=chunk) Composition of Other Expenses and Net Gains | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net Realized Loss from Au (T+D) Contracts | (588,039) | (298,527) | | Net Unrealized (Loss)/Gain from Gold Leases | (110,765) | 20,440 | | Net Foreign Exchange Gain | 4,597 | 53 | - Reason: Primarily due to increased losses from Au (T+D) contracts and gold leases caused by rising gold prices[46](index=46&type=chunk)[155](index=155&type=chunk) [Reversal of Impairment Loss/(Impairment Loss) under Expected Credit Loss Model, Net](index=40&type=section&id=Reversal%20of%20Impairment%20Loss%2F%28Impairment%20Loss%29%20under%20Expected%20Credit%20Loss%20Model%2C%20Net) H1 2025 saw a net reversal of expected credit loss of RMB 5,975 thousand, primarily from trade and other receivables, contrasting with a net impairment loss in the prior year - Impairment loss reversal: Recorded a net reversal of **RMB 5,975 thousand** (2024: impairment loss of RMB 238 thousand)[157](index=157&type=chunk) Composition of Reversal of Impairment Loss/(Impairment Loss), Net | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Receivables | 4,177 | 424 | | Other Receivables | 1,798 | (662) | | **Total** | **5,975** | **(238)** | [Income Tax (Credit)/Expense](index=40&type=section&id=Income%20Tax%20%28Credit%29%2FExpense) H1 2025 saw an income tax credit of RMB 7,057 thousand, contrasting with an expense in the prior year, with Chinese subsidiaries subject to 25% or 5% preferential tax rates - Income tax change: H1 2025 recorded an income tax credit of **RMB 7,057 thousand** (2024: income tax expense of RMB 14,609 thousand)[158](index=158&type=chunk) - Tax rate: The statutory corporate income tax rate in China is **25%**, with some small low-profit enterprises enjoying a preferential tax rate of **5%**[158](index=158&type=chunk) - Hong Kong tax: Hong Kong subsidiaries recorded losses, thus no Hong Kong tax provision was made[159](index=159&type=chunk) [(Loss)/Profit for the Period](index=41&type=section&id=%28Loss%29%2FProfit%20for%20the%20Period) The Group's (loss)/profit for the period is determined after accounting for depreciation, amortization, and inventory write-downs - Total depreciation and amortization: **RMB 30,706 thousand** (2024: RMB 30,466 thousand), of which **RMB 12,350 thousand** was capitalized in inventory[160](index=160&type=chunk) - Write-down of inventories: **RMB 10,400 thousand** (2024: RMB 2,268 thousand)[160](index=160&type=chunk) [(Loss)/Earnings Per Share](index=41&type=section&id=%28Loss%29%2FEarnings%20Per%20Share) For H1 2025, basic (loss) per share was **RMB 0.26**, compared to basic earnings of RMB 0.21 in the prior year, with no diluted calculation due to no potential ordinary shares Basic (Loss)/Earnings Per Share | Indicator | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Basic (Loss)/Earnings Per Share | (0.26) | 0.21 | - Weighted average number of ordinary shares: **272,091 thousand shares** (2024: 229,067 thousand shares)[160](index=160&type=chunk) - No dilutive effect: Diluted (loss)/earnings per share was not calculated due to the absence of potential ordinary shares[160](index=160&type=chunk) [Dividends](index=42&type=section&id=Dividends) During this interim period, the company declared and paid a final dividend of **RMB 0.3 per share** for FY2024, totaling **RMB 81,907 thousand** - Final dividend: Final dividend of **RMB 0.3 per share** for the year ended December 31, 2024[161](index=161&type=chunk) - Total amount: **RMB 81,907 thousand**[161](index=161&type=chunk) - Payment time: Paid in **July 2025**[161](index=161&type=chunk) [Property, Plant and Equipment and Intangible Assets](index=42&type=section&id=Property%2C%20Plant%20and%20Equipment%20and%20Intangible%20Assets) During this interim period, the Group acquired **RMB 9,135 thousand** in property, plant, and equipment, and **RMB 1,183 thousand** in intangible assets - Acquisition of property, plant and equipment: **RMB 9,135 thousand** (H1 2024: RMB 16,963 thousand)[162](index=162&type=chunk) - Acquisition of intangible assets: **RMB 1,183 thousand** (H1 2024: RMB 88 thousand)[163](index=163&type=chunk) [Inventories](index=42&type=section&id=Inventories) As of June 30, 2025, total inventories were **RMB 2,406,392 thousand**, a **5.4% decrease** from end-2024, mainly due to reduced raw materials Composition of Inventories | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Raw Materials | 619,665 | 960,422 | | Finished Goods | 1,773,871 | 1,552,134 | | **Total** | **2,406,392** | **2,544,284** | - Reason for decrease: Primarily due to a reduction in raw materials[54](index=54&type=chunk) [Trade Receivables](index=43&type=section&id=Trade%20Receivables) As of June 30, 2025, net trade receivables were **RMB 280,389 thousand**, a **1.4% year-on-year increase**, with a typical credit period of 3 to 90 days - Net trade receivables: **RMB 280,389 thousand** (December 31, 2024: RMB 276,379 thousand)[165](index=165&type=chunk) Aging Analysis of Trade Receivables | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 90 days | 125,932 | 237,173 | | 90 to 180 days | 97,854 | 15,430 | | 180 days to 1 year | 38,247 | 22,883 | | 1 to 2 years | 18,356 | 893 | | **Total** | **280,389** | **276,379** | [Trade Payables and Bills Payable](index=44&type=section&id=Trade%20Payables%20and%20Bills%20Payable) As of June 30, 2025, total trade payables and bills payable were **RMB 177,356 thousand**, a **55.0% year-on-year decrease**, mainly due to reduced use of bills payable for raw material purchases - Total trade payables and bills payable: **RMB 177,356 thousand** (December 31, 2024: RMB 394,083 thousand)[167](index=167&type=chunk) Composition of Trade Payables and Bills Payable | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Bills Payable under Supplier Financing Arrangements | 140,000 | 370,000 | | Trade Payables | 37,356 | 24,083 | | **Total** | **177,356** | **394,083** | - Reason for decrease: Primarily due to reduced use of bills payable for raw material purchases[59](index=59&type=chunk) - Maturity: All bills payable have a maturity period of less than one year[168](index=168&type=chunk) [Borrowings](index=44&type=section&id=Borrowings) During this interim period, the Group secured **RMB 800,740 thousand** in new borrowings at fixed interest rates of **3.50% to 6.00%**, repayable within one year - New borrowings amount: **RMB 800,740 thousand** (H1 2024: RMB 904,300 thousand)[169](index=169&type=chunk) - Interest rate and term: Bearing fixed interest rates from **3.50% to 6.00%**, repayable within one year[169](index=169&type=chunk) [Gold Leases](index=45&type=section&id=Gold%20Leases) As of June 30, 2025, gold leases totaled **RMB 661,604 thousand**, an **84.2% year-on-year increase**, driven by higher commitments and fair value, with terms of 3-12 months - Gold lease amount: **RMB 661,604 thousand** (December 31, 2024: RMB 359,087 thousand)[170](index=170&type=chunk) - Reason for increase: Primarily due to increased gold lease commitments and the fair value increase of gold borrowed from banks[62](index=62&type=chunk) - Term and classification: Term of **3 to 12 months**, classified as liabilities measured at fair value through profit or loss[170](index=170&type=chunk) - Fair value measurement: Determined by reference to gold market bid prices in highly liquid markets, classified as Level 2 in the fair value hierarchy[171](index=171&type=chunk) [Share Capital and Treasury Shares](index=45&type=section&id=Share%20Capital%20and%20Treasury%20Shares) As of June 30, 2025, issued share capital was **RMB 273,023 thousand**; the company repurchased **2,798,400 shares** for **RMB 46,036 thousand** as treasury shares during the period - Issued and fully paid share capital: **RMB 273,023 thousand**[172](index=172&type=chunk) - Treasury shares: Repurchased **2,798,400 shares** for a total consideration of **RMB 46,036 thousand**, held as treasury shares[172](index=172&type=chunk) - Initial public offering: Approximately **43,956,000 new shares** issued on **November 29, 2024**, with total proceeds of approximately **RMB 487,156 thousand**[172](index=172&type=chunk) [Fair Value Measurement of Financial Instruments](index=46&type=section&id=Fair%20Value%20Measurement%20of%20Financial%20Instruments) Management believes the carrying amounts of financial assets and liabilities recognized at amortized cost in the consolidated financial statements approximate their fair values - Fair value and carrying amount: The carrying amounts of financial assets and financial liabilities recognized at amortized cost approximate their respective fair values[173](index=173&type=chunk) [Related Party Disclosures](index=46&type=section&id=Related%20Party%20Disclosures) During the reporting period, the Group engaged in related party transactions with controlling shareholders for short-term lease expenses - Related party transactions: Short-term lease expenses with controlling shareholders amounted to **RMB 12 thousand** in H1 2025 (H1 2024: RMB 179 thousand)[174](index=174&type=chunk) Definitions This section provides definitions for key terms used throughout the interim report, ensuring clarity for readers - Glossary: Includes definitions for "Articles of Association," "Audit Committee," "Au (T+D)," "Board," "Corporate Governance Code," "China," "Company," "Controlling Shareholder," "Director," "H Shares," "HKD," "HKEX," "Independent Third Party," "Gold Bar," "K Gold," "Listing Rules," "Model Code," "RMB," "SFO," "Shares," "Shareholder," "Subsidiary," "Tianjin Yuanyinmeng," "Unlisted Shares," etc[175](index=175&type=chunk)[176](index=176&type=chunk)[178](index=178&type=chunk)

[Interim Results Overview](index=1&type=section&id=Interim%20Results%20Overview) [Company Information](index=1&type=section&id=Company%20Information) Realord Group Holdings Limited (stock code: 1196) is a Bermuda-incorporated limited company, presenting its unaudited interim results for the six months ended June 30, 2025 - Company Name: **Realord Group Holdings Limited**[4](index=4&type=chunk) - Stock Code: **1196**[2](index=2&type=chunk) - Reporting Period: Unaudited interim results for the six months ended **June 30, 2025**[4](index=4&type=chunk) [Condensed Consolidated Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, total revenue from continuing operations increased by 6.35% to HK$277,092 thousand, but the loss for the period remained high at HK$496,179 thousand, narrowing from HK$550,961 thousand in the prior year, primarily due to a swing from net other gains to losses and fair value losses on investment properties Key Data from Condensed Consolidated Statement of Profit or Loss (Continuing Operations) | Metric | June 30, 2025 (HK$ thousand) | June 30, 2024 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | 277,092 | 260,543 | 16,549 | 6.35% | | Cost of Sales | (212,245) | (177,544) | (34,701) | 19.54% | | Gross Profit | 64,847 | 82,999 | (18,152) | (21.87%) | | Other Income | 6,795 | 5,950 | 845 | 14.20% | | Net Other Gains and Losses | (90,067) | 76,621 | (166,688) | (217.55%) | | Net Impairment Losses | (54,757) | (81,095) | 26,338 | (32.48%) | | Net Loss from Fair Value Change of Investment Properties | (54,237) | (211,733) | 157,496 | (74.38%) | | Selling and Distribution Expenses | (1,859) | (3,660) | 1,801 | (49.21%) | | Administrative Expenses | (83,035) | (84,380) | 1,345 | (1.59%) | | Finance Costs | (295,977) | (363,806) | 67,829 | (18.64%) | | Loss Before Income Tax | (508,290) | (579,104) | 70,814 | (12.23%) | | Income Tax Credit | 12,111 | 60,458 | (48,347) | (79.97%) | | Loss for the Period from Continuing Operations | (496,179) | (518,646) | 22,467 | (4.33%) | | Loss for the Period from Discontinued Operations | – | (32,315) | 32,315 | (100.00%) | | Loss for the Period | (496,179) | (550,961) | 54,782 | (9.94%) | - Loss for the period attributable to owners of the Company was **HK$479,162 thousand**, a decrease from **HK$515,424 thousand** in the prior year[8](index=8&type=chunk) - Basic and diluted loss per share (continuing and discontinued operations) was **33.251 HK cents**, an improvement from **35.776 HK cents** in the prior year[8](index=8&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group's total comprehensive expense for the period significantly decreased to HK$332,281 thousand from HK$720,341 thousand in the prior year, primarily due to a swing from exchange losses to gains and increased revaluation gains on investment properties Key Data from Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | June 30, 2025 (HK$ thousand) | June 30, 2024 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Loss for the Period | (496,179) | (550,961) | 54,782 | (9.94%) | | Net Revaluation Gain on Property, Plant and Equipment | 5,790 | 1,883 | 3,907 | 207.49% | | Exchange Differences Arising from Translation of Foreign Operations | 158,108 | (171,263) | 329,371 | (192.32%) | | Other Comprehensive Income/(Expense) for the Period | 163,898 | (169,380) | 333,278 | (196.76%) | | Total Comprehensive Expense for the Period | (332,281) | (720,341) | 388,060 | (53.87%) | - Total comprehensive expense for the period attributable to owners of the Company was **HK$322,438 thousand**, a significant decrease from **HK$667,738 thousand** in the prior year[9](index=9&type=chunk) [Condensed Consolidated Statement of Financial Position](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets slightly increased, but net current liabilities shifted from net current assets at year-end, primarily due to increased trade payables and bank borrowings, leading to liquidity pressure; total equity decreased, with growth in non-current liabilities from ultimate holding company loans and bank borrowings Key Data from Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Assets** | | | | | | Non-current Assets | 9,686,631 | 9,494,071 | 192,560 | 2.03% | | Current Assets | 9,832,273 | 9,494,466 | 37,807 | 3.56% | | **Liabilities** | | | | | | Current Liabilities | 10,098,736 | 9,487,649 | 611,087 | 6.44% | | Non-current Liabilities | 5,675,063 | 5,430,078 | 244,985 | 4.51% | | **Equity** | | | | | | Equity Attributable to Owners of the Company | 2,385,877 | 2,701,739 | (315,862) | (11.69%) | | Non-controlling Interests | 1,359,228 | 1,369,071 | (9,843) | (0.72%) | | Total Equity | 3,745,105 | 4,070,810 | (325,705) | (8.00%) | | Net Current (Liabilities)/Assets | (266,463) | 6,817 | (273,280) | (4008.80%) | | Investment Properties | 9,148,131 | 8,971,830 | 176,301 | 1.96% | | Properties Under Development | 5,845,685 | 5,633,874 | 211,811 | 3.76% | | Bank Balances and Cash | 40,043 | 30,690 | 9,353 | 30.48% | | Bank Borrowings (Current) | 7,648,932 | 7,432,244 | 216,688 | 2.92% | | Ultimate Holding Company Loans (Non-current) | 2,787,039 | 2,614,469 | 172,570 | 6.60% | - Net current liabilities were **HK$266,463 thousand**, compared to net current assets of **HK$6,817 thousand** at the end of last year, indicating a deterioration in liquidity[10](index=10&type=chunk) [Notes to the Condensed Consolidated Interim Financial Statements](index=7&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) [Basis of Preparation](index=7&type=section&id=Basis%20of%20Preparation) The condensed consolidated interim financial statements are prepared in accordance with HKAS 34 and Appendix D2 of the Listing Rules, presented in HK dollars, using the historical cost convention, with certain assets and financial instruments measured at revalued or fair value, and are consistent with the 2024 annual consolidated financial statements, except for HKAS 21 amendments, and are unaudited but reviewed by the audit committee - Financial statements are prepared in accordance with **HKAS 34** and **Appendix D2 of the Listing Rules**[12](index=12&type=chunk) - The presentation currency is **HK dollars**, using the historical cost convention, with certain assets measured at revalued or fair value[13](index=13&type=chunk) - The financial statements are unaudited by the auditor but have been reviewed by the Company's audit committee[14](index=14&type=chunk) [Going Concern Basis](index=7&type=section&id=Going%20Concern%20Basis) Despite a loss of HK$496,179 thousand and net current liabilities of HK$266,463 thousand as of June 30, 2025, the Board believes the Group can continue as a going concern, having reviewed cash flow forecasts and implemented measures including negotiating loan renewals, monitoring property development, controlling costs, and securing ongoing financial support from the ultimate holding company - The Group recorded a loss of **HK$496,179 thousand** and net current liabilities of **HK$266,463 thousand** for the six months ended June 30, 2025[15](index=15&type=chunk) - The Board believes the Group can operate on a going concern basis, supported by measures such as negotiating bank loan renewals, monitoring property project development and cost control, and continuous financial support from the ultimate holding company[16](index=16&type=chunk)[17](index=17&type=chunk) - Bank borrowings totaling **HK$7,189,928 thousand** have been renewed with banks, extending maturities to **April 11, 2030**, and **April 11, 2035**, respectively[17](index=17&type=chunk) [Application of New and Revised HKFRSs](index=9&type=section&id=Application%20of%20New%20and%20Revised%20HKFRSs) The Group adopted the amendments to HKAS 21 "Lack of Exchangeability" effective January 1, 2025, which had no significant impact on the condensed consolidated interim financial statements, and has not early applied other new and revised HKFRSs issued but not yet effective, with no significant impact expected upon future adoption - The amendments to **HKAS 21 "Lack of Exchangeability"**, effective January 1, 2025, were adopted with no significant impact[18](index=18&type=chunk)[19](index=19&type=chunk) - The Group has not early applied other new and revised HKFRSs issued but not yet effective, with no significant impact expected upon future adoption[20](index=20&type=chunk) [Revenue](index=10&type=section&id=Revenue) The Group's revenue primarily derives from sales of goods and services, rental income, and interest income, with total revenue of HK$277,092 thousand for the six months ended June 30, 2025, where waste material sales from the environmental protection segment contributed the most, while financial services and Latin America and Caribbean segments saw decreased revenue - Revenue recognition principles cover sales of auto parts, waste materials, corporate finance advisory, citizenship application, securities brokerage commissions, box office ticketing, rental income, margin financing, and money lending interest income[22](index=22&type=chunk) [Disaggregation of Revenue from Contracts with Customers](index=11&type=section&id=Disaggregation%20of%20Revenue%20from%20Contracts%20with%20Customers) In the first half of 2025, the Group's total revenue was HK$277,092 thousand, with the environmental protection segment (waste material sales) contributing the most at HK$211,830 thousand; financial services revenue was HK$43,069 thousand, and Latin America and Caribbean revenue was HK$3,669 thousand, both decreasing from the prior year, while rental and interest income were significant non-contractual revenue sources Disaggregation of Revenue from Continuing Operations (by Type of Goods and Services) | Type of Goods and Services | June 30, 2025 (HK$ thousand) | June 30, 2024 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Sales of Goods – Waste Materials | 211,830 | 136,695 | 75,135 | 54.96% | | Sales of Goods – Auto Parts | – | 1,715 | (1,715) | (100.00%) | | Provision of Services – Financial Services | 8,301 | 49,944 | (41,643) | (83.38%) | | Provision of Services – Citizenship Application and Consultancy Services | 3,669 | 11,433 | (7,764) | (67.91%) | | Provision of Services – Securities Brokerage Commissions | 732 | 781 | (49) | (6.27%) | | Provision of Services – Box Office Ticketing | 1,592 | 1,262 | 330 | 26.15% | | Rental Income | 16,932 | 22,182 | (5,250) | (23.67%) | | Margin Financing Interest Income | 12,699 | 13,450 | (751) | (5.58%) | | Money Lending Business Interest Income | 21,337 | 23,081 | (1,744) | (7.56%) | | **Total** | **277,092** | **260,543** | **16,549** | **6.35%** | - In the first half of 2025, waste material sales revenue significantly increased by **54.96%**, becoming the primary growth driver[23](index=23&type=chunk) - Financial services and citizenship application and consultancy services revenue significantly decreased by **83.38%** and **67.91%**, respectively[23](index=23&type=chunk)[24](index=24&type=chunk) [Segment Information](index=13&type=section&id=Segment%20Information) The Group's operations are divided into seven continuing segments: property, financial services, environmental protection, auto parts, Latin America and Caribbean, and others (including lottery tickets and cinema operations); commercial printing and department store segments were discontinued in the second half of last year, and segment performance assessment excludes bank interest, dividends, fair value changes, exchange gains/losses, corporate expenses, and certain finance costs - The Group currently has seven operating segments: property investment, financial services, environmental protection industry, auto parts distribution, Latin America and Caribbean projects, lottery ticket sales, and cinema operations[25](index=25&type=chunk) - The commercial printing segment and department store segment were discontinued in the second half of last year[25](index=25&type=chunk)[26](index=26&type=chunk) - Segment results do not allocate bank interest income, dividend income, fair value changes, exchange gains/losses, corporate expenses, and certain finance costs[26](index=26&type=chunk) [Segment Revenue and Results](index=15&type=section&id=Segment%20Revenue%20and%20Results) In the first half of 2025, the environmental protection segment was the main contributor to external customer sales, with revenue reaching HK$211,830 thousand, while financial services segment revenue significantly decreased; the property and environmental protection segments recorded segment losses, while the financial services segment achieved a segment profit, and the Group's overall loss before income tax was HK$508,290 thousand Segment Revenue and Results from Continuing Operations | Segment | June 30, 2025 Revenue (HK$ thousand) | June 30, 2024 Revenue (HK$ thousand) | Revenue Change (HK$ thousand) | Revenue Change (%) | June 30, 2025 Results (HK$ thousand) | June 30, 2024 Results (HK$ thousand) | Results Change (HK$ thousand) | Results Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Property | 16,932 | 22,182 | (5,250) | (23.67%) | (199,071) | (378,554) | 179,483 | (47.41%) | | Financial Services | 43,069 | 87,257 | (44,188) | (50.64%) | 18,494 | 30,613 | (12,119) | (39.59%) | | Environmental Protection | 211,830 | 136,694 | 75,136 | 54.97% | (24,955) | (71,327) | 46,372 | (65.01%) | | Auto Parts | – | 1,715 | (1,715) | (100.00%) | (25,075) | (13,044) | (12,031) | 92.24% | | Latin America and Caribbean | 3,669 | 11,433 | (7,764) | (67.91%) | (8,563) | (6,722) | (1,841) | 27.39% | | Others | 1,592 | 1,262 | 330 | 26.15% | (19) | (293) | 274 | (93.52%) | | **Total** | **277,092** | **260,543** | **16,549** | **6.35%** | **(239,189)** | **(439,327)** | **200,138** | **(45.56%)** | - Environmental protection segment revenue significantly increased by **54.97%**, but auto parts segment revenue became zero[29](index=29&type=chunk)[30](index=30&type=chunk) - Property segment loss significantly narrowed, environmental protection segment loss also substantially decreased, but financial services segment profit declined[29](index=29&type=chunk)[30](index=30&type=chunk) [Segment Assets and Liabilities](index=17&type=section&id=Segment%20Assets%20and%20Liabilities) As of June 30, 2025, the property segment held the largest segment assets and liabilities, at HK$15,550,518 thousand and HK$8,719,154 thousand respectively, with the Group's total assets increasing to HK$19,518,904 thousand and total liabilities to HK$15,773,799 thousand Segment Assets and Liabilities (as of June 30, 2025) | Segment | Segment Assets (HK$ thousand) | Segment Liabilities (HK$ thousand) | | :--- | :--- | :--- | | Property | 15,550,518 | 8,719,154 | | Financial Services | 1,059,373 | 113,546 | | Environmental Protection | 319,098 | 125,109 | | Auto Parts | 92,529 | 6,736 | | Latin America and Caribbean | 2,356,936 | 211,920 | | Others | 3,208 | 263 | | **Total** | **19,381,662** | **9,176,728** | | Corporate and Unallocated Assets/Liabilities | 137,242 | 6,597,071 | | **Grand Total** | **19,518,904** | **15,773,799** | - Property segment assets and liabilities dominate within the Group[31](index=31&type=chunk) - Corporate and unallocated liabilities amounted to **HK$6,597,071 thousand**, indicating substantial unallocated liabilities at the Group level[31](index=31&type=chunk) [Other Income](index=18&type=section&id=Other%20Income) In the first half of 2025, the Group's other income increased to HK$6,795 thousand, primarily comprising interest income from credit-impaired loans (HK$3,599 thousand) and income from shared office locations (HK$1,281 thousand), while bank interest income slightly decreased Details of Other Income | Item | June 30, 2025 (HK$ thousand) | June 30, 2024 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Bank Interest Income | 1,033 | 1,173 | (140) | (11.93%) | | Dividend Income | 701 | 607 | 94 | 15.49% | | Government Grants | 124 | 126 | (2) | (1.59%) | | Interest Income from Credit-Impaired Loans | 3,599 | 3,460 | 139 | 4.02% | | Income from Shared Office Locations | 1,281 | – | 1,281 | N/A | | Others | 57 | 584 | (527) | (90.24%) | | **Total** | **6,795** | **5,950** | **845** | **14.20%** | - Income from shared office locations is a new revenue source, contributing **HK$1,281 thousand**[33](index=33&type=chunk) [Net Other Gains and Losses](index=18&type=section&id=Net%20Other%20Gains%20and%20Losses) In the first half of 2025, the Group's net other gains and losses swung from a gain of HK$76,621 thousand in the prior year to a loss of HK$90,067 thousand, primarily due to net exchange losses of HK$91,510 thousand, compared to net exchange gains of HK$77,910 thousand in the prior year Details of Net Other Gains and Losses | Item | June 30, 2025 (HK$ thousand) | June 30, 2024 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Gains from Lease Modifications and Terminations | 29 | 57 | (28) | (49.12%) | | Loss on Disposal of Property, Plant and Equipment | (4) | (2) | (2) | 100.00% | | Net Exchange (Losses)/Gains | (91,510) | 77,910 | (169,420) | (217.45%) | | Recovery of Trade Receivables Previously Written Off by Securities Brokerage | 50 | – | 50 | N/A | | Revaluation Surplus on Property, Plant and Equipment | 901 | – | 901 | N/A | | Unrealised Fair Value Gains/(Losses) on Financial Assets at Fair Value Through Profit or Loss | 467 | (1,344) | 1,811 | (134.75%) | | **Total** | **(90,067)** | **76,621** | **(166,688)** | **(217.55%)** | - Exchange gains and losses swung from a gain of **HK$77,910 thousand** in the prior year to a loss of **HK$91,510 thousand**, which is the main reason for the net loss[34](index=34&type=chunk) - Unrealised fair value of financial assets at fair value through profit or loss swung from a loss to a gain[34](index=34&type=chunk) [Finance Costs](index=19&type=section&id=Finance%20Costs) In the first half of 2025, the Group's finance costs decreased by 18.64% year-on-year to HK$295,977 thousand, primarily due to a significant reduction of HK$68,112 thousand in interest on bank borrowings and overdrafts, while interest on other borrowings and ultimate holding company loans remained largely unchanged Details of Finance Costs | Item | June 30, 2025 (HK$ thousand) | June 30, 2024 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Interest on Bank Borrowings and Overdrafts | 173,360 | 241,472 | (68,112) | (28.20%) | | Interest on Other Borrowings | 17,617 | 12,928 | 4,689 | 36.27% | | Interest on Ultimate Holding Company Loans | 104,685 | 107,231 | (2,546) | (2.37%) | | Interest on Amounts Due to Related Parties | 13 | 1,658 | (1,645) | (99.22%) | | Finance Charges on Lease Liabilities | 302 | 517 | (215) | (41.59%) | | **Total** | **295,977** | **363,806** | **(67,829)** | **(18.64%)** | - The reduction in bank borrowing interest is the primary driver for the decrease in finance costs[35](index=35&type=chunk) [Income Tax Credit for Continuing Operations](index=19&type=section&id=Income%20Tax%20Credit%20for%20Continuing%20Operations) In the first half of 2025, the Group's income tax credit for continuing operations was HK$12,111 thousand, a significant decrease from HK$60,458 thousand in the prior year, mainly due to a substantial decline in deferred tax credits; the Group operates in Hong Kong, China, Japan, and Grenada, but no taxable profits were generated in regions other than Hong Kong during the period Details of Income Tax Credit | Item | June 30, 2025 (HK$ thousand) | June 30, 2024 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Current Tax – Hong Kong | 1,097 | 2,269 | (1,172) | (51.65%) | | Deferred Tax | (13,208) | (62,727) | 49,519 | (78.95%) | | **Income Tax Credit** | **(12,111)** | **(60,458)** | **48,347** | **(79.97%)** | - The significant reduction in deferred tax credit is the main reason for the decrease in total income tax credit[37](index=37&type=chunk) - The Group's tax rates in Hong Kong, China, Japan, and Grenada are **16.5%**, **25%**, **34.6%**, and **28%** respectively, but no taxable profits were generated in China, Japan, and Grenada during the period[37](index=37&type=chunk)[38](index=38&type=chunk)[39](index=39&type=chunk)[40](index=40&type=chunk) [Dividends](index=20&type=section&id=Dividends) For the six months ended June 30, 2025, the Company neither paid nor proposed any dividends to ordinary shareholders, and no such proposal has been made since the end of the reporting period - No dividends were paid or proposed during the period[41](index=41&type=chunk) [Loss Per Share](index=20&type=section&id=Loss%20Per%20Share) As of June 30, 2025, the Group's basic and diluted loss per share from continuing operations was 33.251 HK cents, an improvement from 33.980 HK cents in the prior year, with diluted loss being the same as basic loss due to the anti-dilutive effect of potential ordinary shares; there was no loss from discontinued operations for the period, compared to HK$25,875 thousand in the prior year [Continuing Operations](index=20&type=section&id=Continuing%20Operations) Loss from continuing operations attributable to owners of the Company was HK$479,162 thousand, with basic and diluted loss per share of 33.251 HK cents, and diluted loss being the same as basic loss due to the anti-dilutive effect of potential ordinary shares Loss Per Share Data for Continuing Operations | Metric | June 30, 2025 (HK$ thousand/number of shares) | June 30, 2024 (HK$ thousand/number of shares) | | :--- | :--- | :--- | | Loss from Continuing Operations Attributable to Owners of the Company | (479,162) | (489,549) | | Weighted Average Number of Ordinary Shares for Basic Loss Per Share Calculation | 1,440,709,880 | 1,440,709,880 | | Weighted Average Number of Ordinary Shares for Diluted Loss Per Share Calculation | 1,441,054,631 | 1,440,709,880 | | Basic Loss Per Share (HK cents) | (33.251) | (33.980) | | Diluted Loss Per Share (HK cents) | (33.251) | (33.980) | - Both basic and diluted loss per share from continuing operations have improved[44](index=44&type=chunk) [Discontinued Operations](index=21&type=section&id=Discontinued%20Operations) In the first half of 2025, the loss from discontinued operations attributable to owners of the Company was zero, compared to HK$25,875 thousand in the prior year, resulting in zero basic and diluted loss per share from discontinued operations for the current period Loss Per Share Data for Discontinued Operations | Metric | June 30, 2025 (HK$ thousand/number of shares) | June 30, 2024 (HK$ thousand/number of shares) | | :--- | :--- | :--- | | Loss from Discontinued Operations Attributable to Owners of the Company | – | (25,875) | | Weighted Average Number of Ordinary Shares for Basic Loss Per Share Calculation | 1,440,709,880 | 1,440,709,880 | | Weighted Average Number of Ordinary Shares for Diluted Loss Per Share Calculation | 1,441,054,631 | 1,440,709,880 | | Basic Loss Per Share (HK cents) | – | (1.796) | | Diluted Loss Per Share (HK cents) | – | (1.796) | - There was no loss from discontinued operations in the current period, having no impact on loss per share[45](index=45&type=chunk) [Continuing and Discontinued Operations](index=22&type=section&id=Continuing%20and%20Discontinued%20Operations) The total loss from continuing and discontinued operations attributable to owners of the Company was HK$479,162 thousand, a decrease from HK$515,424 thousand in the prior year, with basic and diluted loss per share both at 33.251 HK cents Loss Per Share Data for Continuing and Discontinued Operations | Metric | June 30, 2025 (HK$ thousand) | June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Loss from Continuing Operations Attributable to Owners of the Company | (479,162) | (489,549) | | Loss from Discontinued Operations Attributable to Owners of the Company | – | (25,875) | | Loss Used to Calculate Basic and Diluted Loss Per Share | (479,162) | (515,424) | | Basic and Diluted Loss Per Share (HK cents) | (33.251) | (35.776) | - Total loss per share decreased year-on-year, reflecting an improvement in overall operating performance[48](index=48&type=chunk) [Investment Properties](index=23&type=section&id=Investment%20Properties) As of June 30, 2025, the carrying amount of the Group's investment properties increased to HK$9,148,131 thousand; a net loss from fair value change of HK$54,237 thousand was recorded for the period, but exchange adjustments generated a gain of HK$255,713 thousand, partially offsetting the loss, and some investment properties are pledged as collateral for bank and other borrowings Details of Investment Property Movements | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | At Beginning/End of Period | 8,971,830 | 9,542,078 | | Additions | 25 | 177 | | Disposals | (25,200) | – | | Net Loss from Fair Value Change | (54,237) | (260,392) | | Exchange Adjustments | 255,713 | (310,033) | | At End/Beginning of Period | 9,148,131 | 8,971,830 | - The net loss from fair value change of investment properties significantly narrowed year-on-year, while exchange adjustments swung from a loss to a gain[50](index=50&type=chunk) - Some investment properties are pledged as collateral for bank and other borrowings[50](index=50&type=chunk) [Trade Receivables / Receivables from Securities Brokerage / Loans Receivable](index=23&type=section&id=Trade%20Receivables%20/%20Receivables%20from%20Securities%20Brokerage%20/%20Loans%20Receivable) As of June 30, 2025, the Group's net trade receivables were HK$329,679 thousand, a slight decrease from year-end, with over one year being the largest aging category; net receivables from securities brokerage were HK$277,714 thousand, and net loans receivable were HK$478,871 thousand, both slightly increasing, and the Group maintains strict control over receivables and regularly reviews overdue balances Details of Net Receivables | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net Trade Receivables | 329,679 | 346,039 | (16,360) | (4.73%) | | Net Receivables from Securities Brokerage | 277,714 | 295,402 | (17,688) | (5.99%) | | Net Loans Receivable | 478,871 | 455,409 | 23,462 | 5.15% | | **Total** | **1,086,264** | **1,096,850** | **(10,586) | (0.97%)** | [Trade Receivables](index=24&type=section&id=Trade%20Receivables) The credit period for trade receivables is generally 1 to 3 months; as of June 30, 2025, trade receivables over 1 year amounted to HK$218,263 thousand, representing a high proportion but a decrease from year-end Aging Analysis of Trade Receivables (Net of Provision for Credit Losses) | Aging | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Current to 30 Days | 67,605 | 57,647 | | 31 to 60 Days | 5,357 | 8,091 | | 61 to 90 Days | 17,246 | 580 | | 91 to 365 Days | 21,208 | 13,716 | | Over 1 Year | 218,263 | 266,005 | | **Total** | **329,679** | **346,039** | - Trade receivables over **1 year** represent the highest proportion but decreased year-on-year[52](index=52&type=chunk) [Receivables from Securities Brokerage](index=24&type=section&id=Receivables%20from%20Securities%20Brokerage) Receivables from securities brokerage primarily include amounts due from cash clients and loans to margin clients, with a typical settlement period of two trading days after the transaction date; loans to margin clients are secured by pledged securities, repayable on demand, and bear interest at commercial rates, with the Board deeming an aging analysis meaningless - Amounts due from cash clients and loans to margin clients are the main components[51](index=51&type=chunk) - Loans to margin clients are secured by pledged securities and bear interest at commercial rates[53](index=53&type=chunk) [Loans Receivable](index=24&type=section&id=Loans%20Receivable) Loans receivable are unsecured, repayable within one year according to agreed repayment dates, and bear interest at commercial rates, with the Board deeming an aging analysis meaningless - Loans receivable are unsecured, repayable within one year, and bear interest at commercial rates[54](index=54&type=chunk) [Trade Payables / Payables from Securities Brokerage](index=25&type=section&id=Trade%20Payables%20/%20Payables%20from%20Securities%20Brokerage) As of June 30, 2025, the Group's trade payables significantly increased to HK$331,041 thousand, with credit terms ranging from 60 to 90 days; payables from securities brokerage were HK$93,531 thousand, primarily comprising amounts due to cash and margin clients, including HK$91,475 thousand held on behalf of clients Details of Payables | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Trade Payables | 331,041 | 174,939 | 156,102 | 89.23% | | Payables from Securities Brokerage | 93,531 | 96,357 | (2,826) | (2.93%) | | **Total** | **424,572** | **271,296** | **153,276** | **56.50%** | - Trade payables significantly increased by **89.23%**, with the largest aging category being over 90 days[55](index=55&type=chunk)[56](index=56&type=chunk) - Among payables from securities brokerage, **HK$91,475 thousand** was cash held on behalf of clients[56](index=56&type=chunk) [Bank Borrowings and Other Borrowings](index=26&type=section&id=Bank%20Borrowings%20and%20Other%20Borrowings) As of June 30, 2025, the Group's total bank borrowings amounted to HK$9,418,954 thousand, mostly secured and repayable within one year; other borrowings totaled HK$271,217 thousand, primarily from financial institutions and independent third parties, also mostly repayable within one year, with Group borrowings mainly secured by investment properties, properties under development, proposed development projects, and subsidiary shares, and guaranteed by the Company, directors, and controlling shareholders [Bank Borrowings](index=26&type=section&id=Bank%20Borrowings) As of June 30, 2025, total bank borrowings were HK$9,418,954 thousand, of which HK$9,410,583 thousand were secured; most borrowings (HK$7,648,932 thousand) are classified as current liabilities, repayable within one year, with interest rates ranging from HIBOR plus 2.1% to 2.5% or 3.35% to 6.2% Details of Bank Borrowings | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Secured Bank Borrowings | 9,410,583 | 9,150,932 | | Unsecured Bank Borrowings | 8,371 | 8,466 | | **Total** | **9,418,954** | **9,159,398** | | Due Within One Year | 7,648,932 | 7,432,244 | | Due After One Year | 1,770,022 | 1,727,154 | - Most bank borrowings are secured and repayable within one year, posing liquidity pressure[57](index=57&type=chunk) - Borrowings are secured by investment properties, leasehold land and buildings, properties under development, and proposed development projects, and guaranteed by the Company, subsidiaries, directors, and controlling shareholders[58](index=58&type=chunk) [Other Borrowings](index=28&type=section&id=Other%20Borrowings) As of June 30, 2025, total other borrowings were HK$271,217 thousand, comprising HK$21,217 thousand from financial institutions (secured), HK$200,000 thousand from independent third parties (secured), and HK$50,000 thousand unsecured; all other borrowings are classified as current liabilities, repayable within one year, with interest rates ranging from prime rate plus 2.5% or a fixed annual rate of 12% Details of Other Borrowings | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Borrowings from Financial Institutions (Secured) | 21,217 | 56,140 | | Other Borrowings (Secured) | 200,000 | 200,000 | | Other Borrowings (Unsecured) | 50,000 | 50,000 | | **Total** | **271,217** | **306,140** | | Due Within One Year | 271,217 | 306,140 | - All other borrowings are repayable within one year, and most are secured[60](index=60&type=chunk) - Secured borrowings are collateralized by investment properties, subsidiary shares, and pledged securities from margin clients, and guaranteed by a director and controlling shareholder of the Company[62](index=62&type=chunk) [Share Capital](index=30&type=section&id=Share%20Capital) As of June 30, 2025, the Company's issued and fully paid share capital increased to HK$144,231 thousand from HK$144,071 thousand at year-end, primarily due to the issuance of 1,600,000 ordinary shares upon the exercise of share options Overview of Share Capital Movements | Item | Number of Issued Ordinary Shares | Share Capital (HK$ thousand) | | :--- | :--- | :--- | | At January 1, 2024, December 31, 2024, and January 1, 2025 | 1,440,709,880 | 144,071 | | Exercise of Share Options | 1,600,000 | 160 | | At June 30, 2025 | 1,442,309,880 | 144,231 | - The increase in share capital primarily resulted from the exercise of share options[63](index=63&type=chunk) [Capital Commitments](index=30&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group's total contracted but unprovided capital commitments amounted to HK$868,830 thousand, primarily for properties under development and investment properties, a decrease from HK$944,999 thousand at year-end Details of Capital Commitments | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Investment Properties | 249,600 | 249,600 | | Properties Under Development | 590,073 | 677,780 | | Leasehold Property Improvements | 29,157 | 17,619 | | **Total** | **868,830** | **944,999** | - Capital commitments for properties under development decreased, but commitments for leasehold property improvements increased[64](index=64&type=chunk) [Discontinued Operations](index=31&type=section&id=Discontinued%20Operations) The Group disposed of its commercial printing and department store businesses in the second half of 2024; the commercial printing segment recorded a loss of HK$5,726 thousand in the first half of 2024, and the department store segment recorded a loss of HK$26,589 thousand, resulting in zero loss from discontinued operations for the current period - The Group disposed of the commercial printing segment on **August 6, 2024**, and 75% of the department store segment on **December 23, 2024**[65](index=65&type=chunk) - Loss from discontinued operations for the current period was **zero**, compared to **HK$32,315 thousand** in the prior year[67](index=67&type=chunk) [Commercial Printing Segment](index=32&type=section&id=Commercial%20Printing%20Segment) The commercial printing segment recorded a loss of HK$5,726 thousand in the first half of 2024, primarily due to higher administrative expenses; this business was disposed of on August 6, 2024 Commercial Printing Segment Results for H1 2024 | Metric | June 30, 2024 (HK$ thousand) | | :--- | :--- | | Revenue | 24,115 | | Cost of Sales | (7,050) | | Gross Profit | 17,065 | | Administrative Expenses | (22,298) | | Loss Before Tax | (5,824) | | Loss for the Period | (5,726) | - Net cash flow from operating activities was **HK$723 thousand**[68](index=68&type=chunk) [Department Store Segment](index=33&type=section&id=Department%20Store%20Segment) The department store segment recorded a loss of HK$26,589 thousand in the first half of 2024, primarily affected by selling and distribution expenses, administrative expenses, and finance costs; 75% of this business was disposed of on December 23, 2024 Department Store Segment Results for H1 2024 | Metric | June 30, 2024 (HK$ thousand) | | :--- | :--- | | Revenue | 64,950 | | Cost of Sales | (29,116) | | Gross Profit | 35,834 | | Selling and Distribution Expenses | (33,871) | | Administrative Expenses | (24,337) | | Finance Costs | (13,683) | | Loss Before Tax | (26,766) | | Loss for the Period | (26,589) | - Net cash flow used in operating activities was **HK$2,373 thousand**, and net cash flow used in financing activities was as high as **HK$87,100 thousand**[69](index=69&type=chunk) [Events After Reporting Period](index=33&type=section&id=Events%20After%20Reporting%20Period) On July 29, 2025, the Group executed loan renewal agreements with a bank, extending bank borrowings totaling HK$7,189,928 thousand to April 11, 2030, and April 11, 2035, respectively - After the reporting period, the Group successfully renewed bank borrowings totaling **HK$7,189,928 thousand**, extending the repayment periods[70](index=70&type=chunk) [Management Discussion and Analysis](index=34&type=section&id=Management%20Discussion%20and%20Analysis) [Overall Financial Review](index=34&type=section&id=Overall%20Financial%20Review) In the first half of 2025, the Group's total revenue increased by 6.4% year-on-year to HK$277.1 million, primarily driven by the environmental protection segment, while net loss from continuing operations narrowed to HK$496.2 million; gross profit decreased, and net other gains and losses swung from a gain to a loss, but fair value losses on investment properties and finance costs significantly decreased, partially offsetting the adverse impacts - The Group's total revenue increased by **6.4%** year-on-year to **HK$277.1 million**, and net loss from continuing operations narrowed to **HK$496.2 million**[72](index=72&type=chunk) [Total Revenue](index=35&type=section&id=Total%20Revenue) Total revenue for the first half of 2025 was HK$277.1 million, a 6.4% year-on-year increase, primarily benefiting from significant growth in environmental protection segment revenue, but partially offset by decreased revenue from the property, financial services, auto parts, and Latin America and Caribbean segments Revenue Analysis by Segment | Segment | H1 2025 (HK$ million) | Share (%) | H1 2024 (HK$ million) | Share (%) | Revenue Increase/(Decrease) (HK$ million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Property Segment | 16.9 | 6.1% | 22.2 | 8.5% | (5.3) | (23.9)% | | Financial Services Segment | 43.1 | 15.6% | 87.3 | 33.5% | (44.2) | (50.6)% | | Environmental Protection Segment | 211.8 | 76.4% | 136.7 | 52.5% | 75.1 | 54.9% | | Auto Parts Segment | – | – | 1.7 | 0.6% | (1.7) | (100.0)% | | Latin America and Caribbean Segment | 3.7 | 1.3% | 11.4 | 4.4% | (7.7) | (67.5)% | | Others | 1.6 | 0.6% | 1.2 | 0.5% | 0.4 | 33.3% | | **Total** | **277.1** | **100.0%** | **260.5** | **100.0%** | **16.6** | **6.4%** | - Environmental protection segment revenue grew by **54.9%**, being the main contributor to total revenue growth[73](index=73&type=chunk) [Gross Profit](index=35&type=section&id=Gross%20Profit) Gross profit for the first half of 2025 was HK$64.8 million, a decrease of HK$18.2 million from HK$83.0 million in the prior year, primarily due to reduced revenue from the property, financial services, and Latin America and Caribbean segments Gross Profit Change | Metric | H1 2025 (HK$ million) | H1 2024 (HK$ million) | Change (HK$ million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Gross Profit | 64.8 | 83.0 | (18.2) | (21.9)% | - The decrease in gross profit was mainly affected by reduced revenue from the property, financial services, and Latin America and Caribbean segments[74](index=74&type=chunk) [Other Income](index=35&type=section&id=Other%20Income) Other income for the first half of 2025 was HK$6.8 million, a slight increase from HK$6.0 million in the prior year, primarily including interest income from credit-impaired loans of HK$3.6 million and bank interest income of HK$1.0 million Main Components of Other Income | Item | H1 2025 (HK$ million) | H1 2024 (HK$ million) | | :--- | :--- | :--- | | Interest Income from Credit-Impaired Loans | 3.6 | 3.5 | | Bank Interest Income | 1.0 | 1.2 | [Net Other Gains and Losses](index=36&type=section&id=Net%20Other%20Gains%20and%20Losses) Net other losses for the first half of 2025 were HK$90.1 million, compared to a gain of HK$76.6 million in the prior year, mainly due to net exchange losses of HK$91.5 million resulting from the appreciation of RMB against HKD, and a swing from unrealised fair value losses to gains on financial assets at fair value through profit or loss Net Other Gains and Losses Change | Item | H1 2025 (HK$ million) | H1 2024 (HK$ million) | | :--- | :--- | :--- | | Net Exchange (Losses)/Gains | (91.5) | 77.9 | | Unrealised Fair Value Gains/(Losses) on Financial Assets at Fair Value Through Profit or Loss | 0.5 | (1.3) | - RMB appreciation leading to exchange losses is the primary reason[76](index=76&type=chunk) [Net Impairment Losses](index=36&type=section&id=Net%20Impairment%20Losses) Net impairment losses for the first half of 2025 were HK$54.8 million, a decrease from HK$81.1 million in the prior year, primarily due to an increase of HK$47.5 million in expected credit losses on trade receivables and an increase of HK$7.1 million in expected credit losses on loans receivable Components of Net Impairment Losses | Item | H1 2025 (HK$ million) | H1 2024 (HK$ million) | | :--- | :--- | :--- | | Increase in Expected Credit Losses on Trade Receivables | 47.5 | 79.2 | | Increase in Expected Credit Losses on Receivables from Securities Brokerage | 0.2 | 0.5 | | Increase in Expected Credit Losses on Loans Receivable | 7.1 | 1.4 | | **Total** | **54.8** | **81.1** | - Increased credit risk for long-outstanding trade receivables in the environmental protection and auto parts segments led to higher impairment losses on trade receivables[78](index=78&type=chunk) [Net Loss from Fair Value Change of Investment Properties](index=36&type=section&id=Net%20Loss%20from%20Fair%20Value%20Change%20of%20Investment%20Properties) Net loss from fair value change of investment properties for the first half of 2025 was HK$54.2 million, a significant narrowing from HK$211.7 million in the prior year, primarily due to the continued stagnation of the Mainland China property market, but with a mitigated degree of deterioration Net Loss from Fair Value Change of Investment Properties | Metric | H1 2025 (HK$ million) | H1 2024 (HK$ million) | | :--- | :--- | :--- | | Net Loss | 54.2 | 211.7 | - The narrowing of losses primarily reflects a mitigated deterioration in the Mainland China property market[79](index=79&type=chunk) [Selling and Distribution Expenses](index=37&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and distribution expenses decreased to HK$1.9 million in the first half of 2025, a reduction of HK$1.8 million from HK$3.7 million in the prior year, mainly because other intangible assets related to customer relationships were fully amortised in February 2024 Selling and Distribution Expenses Change | Metric | H1 2025 (HK$ million) | H1 2024 (HK$ million) | | :--- | :--- | :--- | | Selling and Distribution Expenses | 1.9 | 3.7 | - The full amortisation of customer relationship intangible assets is the main reason for the decrease in expenses[80](index=80&type=chunk) [Administrative Expenses](index=37&type=section&id=Administrative%20Expenses) Administrative expenses decreased to HK$83.0 million in the first half of 2025, a reduction of HK$1.4 million from HK$84.4 million in the prior year, primarily due to a HK$1.3 million decrease in staff costs Administrative Expenses Change | Metric | H1 2025 (HK$ million) | H1 2024 (HK$ million) | | :--- | :--- | :--- | | Administrative Expenses | 83.0 | 84.4 | - Reduced staff costs are the primary reason for the decrease in administrative expenses[81](index=81&type=chunk) [Finance Costs](index=37&type=section&id=Finance%20Costs) Finance costs decreased to HK$296.0 million in the first half of 2025, a reduction of HK$67.8 million from HK$363.8 million in the prior year, primarily due to a HK$68.1 million decrease in interest on bank borrowings resulting from lower interest rates in Mainland China Finance Costs Change | Metric | H1 2025 (HK$ million) | H1 2024 (HK$ million) | | :--- | :--- | :--- | | Finance Costs | 296.0 | 363.8 | - Lower interest rates in Mainland China leading to reduced bank borrowing interest is the main reason for the decrease in finance costs[82](index=82&type=chunk) [Net Loss](index=37&type=section&id=Net%20Loss) Net loss for the first half of 2025 narrowed to HK$496.2 million from HK$551.0 million in the prior year; the narrowing of losses was primarily due to reduced fair value losses on investment properties, net impairment losses, and finance costs, as well as the elimination of losses from discontinued operations, though partially offset by net exchange losses and decreased gross profit Net Loss Change | Metric | H1 2025 (HK$ million) | H1 2024 (HK$ million) | | :--- | :--- | :--- | | Net Loss | 496.2 | 551.0 | - Net exchange losses and decreased gross profit adversely affected performance[83](index=83&type=chunk) - Reduced fair value losses on investment properties, net impairment losses, finance costs, and the elimination of losses from discontinued operations partially mitigated the adverse impacts[84](index=84&type=chunk) [Financial Review by Segment](index=38&type=section&id=Financial%20Review%20by%20Segment) This section provides a detailed review of the financial performance of each of the Group's continuing business segments; property segment rental income decreased but segment loss narrowed, financial services segment revenue and profit both significantly decreased, environmental protection segment revenue significantly grew and loss substantially narrowed, auto parts segment had no revenue and increased loss, Latin America and Caribbean segment revenue decreased and loss increased, and discontinued operations had no loss for the period [Property Segment](index=38&type=section&id=Property%20Segment) In the first half of 2025, property segment rental income was HK$16.9 million, a 23.9% year-on-year decrease, mainly due to fewer tenants at Sincere Shopping Centre; segment loss narrowed to HK$199.1 million, primarily benefiting from reduced fair value losses on investment properties Property Segment Financial Performance | Metric | H1 2025 (HK$ million) | H1 2024 (HK$ million) | | :--- | :--- | :--- | | Rental Income | 16.9 | 22.2 | | Segment Loss | (199.1) | (378.6) | - The decrease in rental income was mainly due to fewer tenants in the shopping center[85](index=85&type=chunk) - The narrowing of segment loss primarily benefited from reduced fair value losses on investment properties[85](index=85&type=chunk) [Financial Services Segment](index=38&type=section&id=Financial%20Services%20Segment) In the first half of 2025, financial services segment revenue was HK$43.1 million, a 50.6% year-on-year decrease, mainly due to reduced interest income from margin financing and money lending businesses, and no financial services income from share placement and underwriting projects during the period; segment profit decreased to HK$18.5 million, primarily affected by lower gross profit and increased provision for expected credit losses Financial Services Segment Financial Performance | Metric | H1 2025 (HK$ million) | H1 2024 (HK$ million) | | :--- | :--- | :--- | | Revenue | 43.1 | 87.3 | | Segment Profit | 18.5 | 30.6 | - The decrease in revenue was mainly due to the absence of financial services income (share placement and underwriting)[86](index=86&type=chunk) - The decline in segment profit was primarily affected by reduced gross profit and increased provision for expected credit losses[86](index=86&type=chunk) [Environmental Protection Segment](index=38&type=section&id=Environmental%20Protection%20Segment) In the first half of 2025, environmental protection segment revenue increased to HK$211.8 million, a significant 54.9% year-on-year growth, mainly due to the expansion of the Group's customer network in Mainland China; segment loss significantly narrowed to HK$25.0 million, primarily benefiting from increased gross profit and reduced provision for expected credit losses Environmental Protection Segment Financial Performance | Metric | H1 2025 (HK$ million) | H1 2024 (HK$ million) | | :--- | :--- | :--- | | Revenue | 211.8 | 136.7 | | Segment Loss | (25.0) | (71.3) | - Revenue growth primarily benefited from the expansion of the customer network in Mainland China[87](index=87&type=chunk) - The narrowing of segment loss was mainly due to increased gross profit and reduced provision for expected credit losses[88](index=88&type=chunk) [Auto Parts Segment](index=39&type=section&id=Auto%20Parts%20Segment) In the first half of 2025, the auto parts segment had no revenue, compared to HK$1.7 million in the prior year, primarily due to the Group's stricter credit control over customers and continuous scaling down of operations; segment loss increased to HK$25.1 million, mainly due to decreased revenue and increased provision for expected credit losses on long-outstanding trade receivables Auto Parts Segment Financial Performance | Metric | H1 2025 (HK$ million) | H1 2024 (HK$ million) | | :--- | :--- | :--- | | Revenue | – | 1.7 | | Segment Loss | (25.1) | (13.0) | - Zero revenue and increased segment loss reflect business contraction and increased credit risk[89](index=89&type=chunk) [Latin America and Caribbean Segment](index=39&type=section&id=Latin%20America%20and%20Caribbean%20Segment) In the first half of 2025, Latin America and Caribbean segment revenue was HK$3.7 million, a 67.5% year-on-year decrease, mainly due to a reduction in the number of citizenship by investment applications approved by the relevant minister in Grenada; segment loss increased to HK$8.6 million, primarily due to decreased revenue, but partially offset by reduced amortisation of other intangible assets related to customer relationships Latin America and Caribbean Segment Financial Performance | Metric | H1 2025 (HK$ million) | H1 2024 (HK$ million) | | :--- | :--- | :--- | | Revenue | 3.7 | 11.4 | | Segment Loss | (8.6) | (6.7) | - The decrease in revenue was mainly due to fewer citizenship by investment applications[90](index=90&type=chunk) - Segment loss increased, but reduced amortisation of customer relationship intangible assets partially mitigated the loss[90](index=90&type=chunk) [Discontinued Operations](index=39&type=section&id=Discontinued%20Operations) The Group disposed of its commercial printing segment on August 6, 2024, and 75% of its department store segment on December 23, 2024; consequently, there was no loss from discontinued operations in the first half of 2025, whereas in the first half of 2024, the commercial printing and department store segments recorded losses of HK$5.7 million and HK$26.6 million, respectively - The commercial printing segment and department store segment were sold in the second half of 2024[91](index=91&type=chunk)[92](index=92&type=chunk) - There was no loss from discontinued operations in the first half of 2025[91](index=91&type=chunk)[92](index=92&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=40&type=section&id=Liquidity,%20Financial%20Resources%20and%20Capital%20Structure) The Group primarily meets its working capital needs through internal cash flow, cash reserves, bank financing, other borrowings, and ultimate holding company credit; as of June 30, 2025, cash and bank balances were HK$40.0 million, and the gearing ratio increased to 534.0%, indicating high leverage, while the Group faces foreign exchange risk but currently does not use hedging instruments, and substantial corporate guarantees and asset pledges are integral to its financing structure - The Group primarily funds its operations through internal cash flow, cash reserves, bank financing, other borrowings, and ultimate holding company credit[93](index=93&type=chunk) [Cash and Bank Balances](index=40&type=section&id=Cash%20and%20Bank%20Balances) As of June 30, 2025, cash and bank balances were HK$40.0 million, an increase from HK$30.7 million at year-end, primarily denominated in HKD and RMB Cash and Bank Balances | Metric | June 30, 2025 (HK$ million) | December 31, 2024 (HK$ million) | | :--- | :--- | :--- | | Cash and Bank Balances | 40.0 | 30.7 | [Gearing Ratio](index=40&type=section&id=Gearing%20Ratio) As of June 30, 2025, the Group's gearing ratio significantly increased to 534.0% from 456.3% at year-end, reflecting high leverage; total interest-bearing borrowings amounted to HK$12,741.4 million, with annual interest rates ranging from 2.65% to 12% Gearing Ratio | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Gearing Ratio | 534.0% | 456.3% | | Interest-Bearing Borrowings (HK$ million) | 12,741.4 | 12,327.8 | | Equity Attributable to Owners of the Company (HK$ million) | 2,385.9 | 2,701.7 | - The gearing ratio significantly increased, indicating the Group's high financial leverage[94](index=94&type=chunk) [Foreign Exchange Risk](index=40&type=section&id=Foreign%20Exchange%20Risk) The Group's transactions are mostly denominated in HKD, USD, JPY, RMB, and XCD, with HKD as the reporting currency; the Group faces foreign exchange risk against HKD for USD, EUR, JPY, RMB, and XCD, but did not use financial hedging instruments as of June 30, 2025 - The Group faces multi-currency foreign exchange risk but currently does not hedge[95](index=95&type=chunk) [Guarantees and Pledges](index=41&type=section&id=Guarantees%20and%20Pledges) The Group's bank borrowings and some other borrowings are backed by multiple guarantees and pledges; the Company provides corporate guarantees of HK$8,680.2 million for subsidiaries and pledges assets such as investment properties and properties under development, while directors and controlling shareholders also provide personal guarantees of HK$9,400.6 million, and other borrowings also involve corporate guarantees, investment property pledges, and directors' personal guarantees - The Company provides **HK$8,680.2 million** in corporate guarantees for subsidiaries[96](index=96&type=chunk) - Bank borrowings are secured by investment properties, leasehold land and buildings, properties under development, and proposed development projects[96](index=96&type=chunk) - Directors and controlling shareholders provide **HK$9,400.6 million** in personal guarantees[96](index=96&type=chunk) - Other borrowings also involve corporate guarantees, investment property pledges, and directors' personal guarantees[97](index=97&type=chunk) [Business Review by Segment](index=42&type=section&id=Business%20Review%20by%20Segment) This section reviews the operational status of the Group's business segments; the property segment saw decreased rental income but narrowed losses, financial services segment revenue and profit both significantly decreased, environmental protection segment revenue significantly grew and losses substantially narrowed, auto parts segment had no revenue and increased losses, Latin America and Caribbean segment revenue decreased and losses increased, and discontinued operations had no loss for the period - The global economy and business performance remain challenging, affected by geopolitical conflicts and global economic uncertainties[98](index=98&type=chunk) [Property Segment](index=42&type=section&id=Property%20Segment) The Group holds five property projects: Realord Garden, Zhangkengjing Property, Realord Science Park, Lai Ying Garden, and Xikeng Property; Sincere Shopping Centre in Realord Garden has 33 tenants, Phase I of Realord Science Park has signed a lease agreement with a hotel operator, with Phase II awaiting government approval, and redevelopment work for Xikeng Property and Lai Ying Garden is ongoing, while the land use change application for Zhangkengjing Property is still under review - The Group holds five property projects with varying development progress[100](index=100&type=chunk) - Redevelopment work for Xikeng Property and Lai Ying Garden is ongoing, and the land use change application for Zhangkengjing Property is still under review[101](index=101&type=chunk) [Financial Services Segment](index=43&type=section&id=Financial%20Services%20Segment) The financial services segment holds SFC Type 1, 4, 6, and 9 licenses and a money lenders license, committed to providing diversified high-quality services to clients in both primary and secondary markets - Holds multiple SFC licenses and a money lenders license, providing diversified financial services[102](index=102&type=chunk) [Environmental Protection Segment](index=43&type=section&id=Environmental%20Protection%20Segment) The environmental protection segment, benefiting from the substantial scale of Realord Environmental Japan, remains the Group's primary revenue source; this segment will focus on seeking new sources of metal waste and expanding new customer bases in Mainland China and Japan - Benefiting from the scale of its Japanese operations, it is the Group's primary revenue source[103](index=103&type=chunk) - Will expand into Mainland China and Japanese markets, seeking new waste material sources and customers[103](index=103&type=chunk) [Auto Parts Segment](index=43&type=section&id=Auto%20Parts%20Segment) The auto parts segment recorded a segment loss in the first half of 2025 due to stricter credit control over customers and continuous scaling down of operations - Segment loss resulted from stricter credit control and reduced operational scale[104](index=104&type=chunk) [Latin America and Caribbean Segment](index=43&type=section&id=Latin%20America%20and%20Caribbean%20Segment) The Latin America and Caribbean segment's main business involves providing citizenship application and consultancy services for investment citizenship programs and developing the Grenada project; the Grenada project entails developing mixed-use properties, attracting foreign investment through the investment citizenship program, where eligible investors can obtain permanent Grenadian citizenship and passports - The main business involves citizenship application and consultancy services for investment citizenship programs, and the development of the Grenada project[105](index=105&type=chunk) - The Grenada project attracts foreign investment through the investment citizenship program, offering permanent citizenship and passports[105](index=105&type=chunk) [Outlook and Corporate Strategy](index=44&type=section&id=Outlook%20and%20Corporate%20Strategy) The Group will continue to focus on developing existing property projects, the financial services segment will develop diversified investment products for stable growth, the environmental protection segment will prudently control costs and expand its customer base, the auto parts segment will closely monitor EV trends and prudently control costs, and the Latin America and Caribbean segment will leverage investment citizenship programs to expand overseas business and seek more investment opportunities and business partners in the Caribbean and Latin American regions [Property Segment](index=44&type=section&id=Property%20Segment) The Group will focus on developing its five existing property projects (Xikeng Property, Lai Ying Garden, Realord Garden, Realord Science Park, and Zhangkengjing Property) to ensure a favorable position in this segment - Will focus on developing the five existing property projects[106](index=106&type=chunk) [Financial Services Segment](index=44&type=section&id=Financial%20Services%20Segment) The financial services segment will continuously develop various investment products to meet market demand and provide diversified high-quality services to clients in the international capital market, with stable business growth expected in the second half of 2025 - Will develop diversified investment products, with stable business growth expected in the second half of the year[107](index=107&type=chunk) [Environmental Protection Segment](index=44&type=section&id=Environmental%20Protection%20Segment) The environmental protection segment will continue to exercise prudence, control operating costs, reduce credit risk, and expand its customer base by enhancing competitive advantages to maximize shareholder returns - Will prudently control costs, reduce credit risk, and expand the customer base[108](index=108&type=chunk) [Auto Parts Segment](index=44&type=section&id=Auto%20Parts%20Segment) With the growth of the electric vehicle market and decreasing demand for gasoline cars, the auto parts segment will exercise extreme prudence in cost control and closely monitor business development - Will prudently control costs and closely monitor electric vehicle market trends[109](index=109&type=chunk) [Latin America and Caribbean Segment](index=45&type=section&id=Latin%20America%20and%20Caribbean%20Segment) The Grenada project offers the Group opportunities for business diversification and overseas expansion; the Group has initiated the Grenada project and plans to leverage the investment citizenship program to seek more investment opportunities and identify strong business partners for project participation in the Caribbean economic zone and Latin America - The Grenada project offers opportunities for business diversification and overseas expansion[110](index=110&type=chunk) - Plans to leverage the investment citizenship program to seek more investment opportunities and business partners in the Caribbean and Latin American regions[110](index=110&type=chunk) [Contingent Liabilities, Commitments and Litigation](index=45&type=section&id=Contingent%20Liabilities,%20Commitments%20and%20Litigation) As of June 30, 2025, the Group had no significant contingent liabilities or litigation, and capital commitments are disclosed in Note 16 - No significant contingent liabilities[111](index=111&type=chunk) - No significant litigation[113](index=113&type=chunk) [Other Information](index=46&type=section&id=Other%20Information) [Significant Investments, Acquisitions and Disposals](index=46&type=section&id=Significant%20Investments,%20Acquisitions%20and%20Disposals) For the six months ended June 30, 2025, the Group held no significant investments, nor were there any significant acquisitions or disposals of subsidiaries and associates - No significant investments, acquisitions, or disposals of subsidiaries and associates during the period[114](index=114&type=chunk) [Events After Reporting Period](index=46&type=section&id=Events%20After%20Reporting%20Period) Except for the bank loan renewals disclosed in Note 18 to the condensed consolidated interim financial statements, no other significant events after the reporting period have occurred as of the date of this announcement - No other significant events after the reporting period, except for bank loan renewals[115](index=115&type=chunk) [Dividends](index=46&type=section&id=Dividends) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - No interim dividend recommended for payment[116](index=116&type=chunk) [Directors' Interests in Competing Business](index=46&type=section&id=Directors'%20Interests%20in%20Competing%20Business) None of the Company's directors or their respective associates have any interests in any business that competes or may compete, directly or indirectly, with the Group's business, or any other conflicts of interest with the Group - Directors and their associates have no competing business interests or conflicts of interest[117](index=117&type=chunk) [Corporate Governance](index=46&type=section&id=Corporate%20Governance) [Corporate Governance Practices](index=46&type=section&id=Corporate%20Governance%20Practices) The Company is committed to adhering to good corporate governance practices and believes it has complied with

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚賴該等內 容而引致的任何損失承擔任何責任。 CHINA SUNTIEN GREEN ENERGY CORPORATION LIMITED* 新天綠色能源股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：00956） 截至2025年6月30日止六個月之中期業績 財務資料摘要 截至2025年6月30日止六個月： 新天綠色能源股份有限公司（「公司」或「本公司」，連同其附屬公司，統稱「本集團」）董事會（「董事會」） 謹此宣佈本集團截至2025年6月30日止六個月期間（「報告期」）之未經審計的中期合併業績。此中期業 績已由董事會審計委員會審閱。 本集團詳細的財務表現請參見本公告附錄所載財務信息。 1 ‧ 營業收入為人民幣109.04億元，較去年同期下降10.16%； ‧ 歸屬於上市公司股東的淨利潤為人民幣14.12億元，較去年同期下降1.23%；及 ‧ 基本每股收益為人民幣0.34元。 管理層討論與分析 一、 報告期內公司所屬行業及主營 ...

Condensed Consolidated Interim Financial Statements [Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) The Group recorded a net loss of HK$26.468 million in H1 2025, a slight improvement from H1 2024, primarily due to significantly reduced finance costs Condensed Consolidated Statement of Profit or Loss (For the six months ended June 30) | Indicator | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 64,308 | 65,050 | (742) | -1.14% | | Cost of Sales | (33,904) | (29,116) | (4,788) | 16.44% | | Other Income and Net Gains | 10,180 | 10,368 | (188) | -1.81% | | Net Unrealized Loss on Securities Trading | (669) | (122) | (547) | 448.36% | | Selling and Distribution Expenses | (34,155) | (33,476) | (679) | 2.03% | | General and Administrative Expenses | (24,126) | (25,091) | 965 | -3.85% | | Other Net Operating Expenses | (23) | – | (23) | - | | Finance Costs | (8,073) | (14,275) | 6,202 | -43.45% | | Loss Before Income Tax | (26,462) | (26,662) | 200 | -0.75% | | Income Tax Expense | (6) | – | (6) | - | | Loss for the Period | (26,468) | (26,662) | 194 | -0.73% | | Loss Attributable to Owners of the Company | (26,684) | (27,260) | 576 | -2.11% | | Basic and Diluted Loss Per Share (HK$) | (0.02) | (0.02) | 0.00 | 0.00% | [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) The Group's H1 2025 total comprehensive loss increased to HK$26.423 million from HK$24.774 million in H1 2024, mainly due to the absence of a property revaluation surplus Condensed Consolidated Statement of Comprehensive Income (For the six months ended June 30) | Indicator | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Loss for the Period | (26,468) | (26,662) | 194 | -0.73% | | Other Comprehensive Income: | | | | | | Exchange Differences Arising from Translation of Foreign Operations | 45 | 5 | 40 | 800.00% | | Surplus on Revaluation of Leasehold Land and Buildings | – | 1,883 | (1,883) | -100.00% | | Total Comprehensive Loss for the Period | (26,423) | (24,774) | (1,649) | 6.66% | | Attributable to Owners of the Company | (25,853) | (25,415) | (438) | 1.72% | | Attributable to Non-controlling Interests | (570) | 641 | (1,211) | -188.92% | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's net assets significantly decreased by **28.60%** to **HK$65.967 million**, primarily due to a substantial increase in net current liabilities Condensed Consolidated Statement of Financial Position (As at June 30, 2025) | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **ASSETS** | | | | | | Non-current Assets | 277,125 | 266,636 | 10,489 | 3.93% | | Current Assets | 73,097 | 77,306 | (4,209) | -5.44% | | **LIABILITIES** | | | | | | Current Liabilities | 268,750 | 81,536 | 187,214 | 229.61% | | Non-current Liabilities | 15,505 | 170,016 | (154,511) | -90.88% | | **EQUITY** | | | | | | Net Assets | 65,967 | 92,390 | (26,423) | -28.60% | | Equity Attributable to Owners of the Company | 20,737 | 46,590 | (25,853) | -55.49% | | Non-controlling Interests | 45,230 | 45,800 | (570) | -1.24% | | Total Equity | 65,967 | 92,390 | (26,423) | -28.60% | | Net Current Liabilities | (195,653) | (4,230) | (191,423) | 4525.37% | - Net current liabilities significantly increased from **HK$4.230 million** as of December 31, 2024, to **HK$195.653 million** as of June 30, 2025, a **4525.37%** increase, indicating a substantial rise in liquidity pressure[6](index=6&type=chunk) [Notes to the Condensed Consolidated Interim Financial Statements](index=6&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) [1. Company Information](index=6&type=section&id=1.%20Company%20Information) The Company is a limited liability company incorporated in Hong Kong, primarily engaged in department store operations, securities trading, and life insurance provision, with Merill Holdings Limited as its direct holding company - The Group's principal activities include operating department stores, trading securities, and providing life insurance, with no change in business nature during the period[8](index=8&type=chunk) - Merill Holdings Limited is the Company's direct holding company, with Dr. Lam Hiu Fung and Ms. So Kiu Wah as ultimate shareholders, holding 70% and 30% equity respectively in Merill Holdings[8](index=8&type=chunk) [2. Basis of Preparation](index=6&type=section&id=2.%20Basis%20of%20Preparation) The condensed consolidated interim financial statements are prepared in accordance with HKAS 34 and the Listing Rules, presented in HK$, with accounting policies consistent with annual statements except for adopted HKFRSs, and management assessing going concern with various measures to improve profitability and liquidity - The condensed consolidated interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the HKICPA and the applicable disclosure requirements of Appendix D2 to the Listing Rules of the Stock Exchange[9](index=9&type=chunk) - The current period's financial information (as comparative data) is extracted from the statutory annual consolidated financial statements for the year ended December 31, 2024, which received an unmodified auditor's report but highlighted material uncertainties regarding going concern[10](index=10&type=chunk) [Going Concern Basis](index=7&type=section&id=Going%20Concern%20Basis) The Group recorded a net loss of HK$26.468 million and had net current liabilities of HK$195.653 million with cash and bank balances of HK$8.926 million in H1 2025, indicating significant going concern uncertainty, despite management's measures and financial support commitments - The Group recorded a net loss of **HK$26.468 million** in H1 2025, with net current liabilities of **HK$195.653 million** and cash and bank balances of **HK$8.926 million**, indicating significant uncertainty regarding its ability to continue as a going concern[11](index=11&type=chunk) - Management has implemented measures to improve profitability and liquidity, including revising marketing strategies, controlling capital and operating expenditures, negotiating rent reductions, and identifying asset realization opportunities[11](index=11&type=chunk) - Dr. Lam and Merill Holdings have committed to providing continuous financial support for at least twelve months, and a related company has provided a loan facility of up to **HK$260 million**, of which **HK$80.392 million** remained undrawn as of June 30, 2025[11](index=11&type=chunk)[12](index=12&type=chunk) [3. Adoption of New and Revised HKFRSs](index=8&type=section&id=3.%20Adoption%20of%20New%20and%20Revised%20HKFRSs) The Group adopted HKAS 21 (Amendment) "Lack of Exchangeability" on January 1, 2025, with no material impact on the interim financial statements, and other new HKFRSs are not expected to have a significant effect - The Group adopted HKAS 21 (Amendment) "Lack of Exchangeability" on January 1, 2025, which had no material impact on the condensed consolidated interim financial statements[14](index=14&type=chunk)[15](index=15&type=chunk) - Several new and revised HKFRSs issued but not yet effective are not expected to have a significant impact on the Group's condensed consolidated interim financial statements[16](index=16&type=chunk)[17](index=17&type=chunk) [4. Segment Information](index=9&type=section&id=4.%20Segment%20Information) The Group reports segment information by operating segments (department store, securities trading, and others) and geographical areas (Hong Kong, UK, and others), with management assessing performance based on adjusted loss before income tax - The Group's operating segments include department store business (providing consumer goods), securities trading (trading Hong Kong and overseas securities), and others (sub-leasing properties and life insurance)[18](index=18&type=chunk)[20](index=20&type=chunk) - Segment results are assessed based on reportable segment profit/(loss), which is an adjusted loss before income tax, excluding certain interest income, unallocated income/(expenses), and finance costs[21](index=21&type=chunk) [(a) Operating Segments](index=10&type=section&id=(a)%20Operating%20Segments) The department store business segment saw a slight revenue decrease but an increased segment loss in H1 2025, while the securities trading segment recorded net unrealized losses despite increased dividend income, and other segments' losses slightly decreased Operating Segment Revenue and Results (For the six months ended June 30) | Segment | 2025 Revenue (HK$ thousand) | 2024 Revenue (HK$ thousand) | 2025 Results (HK$ thousand) | 2024 Results (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | | Department Store Business | 64,263 | 65,293 | (23,709) | (17,309) | | Securities Trading | 376 | (257) | (1,253) | (1,340) | | Others | 15,307 | 16,735 | (3,415) | (3,628) | | Total (after elimination) | 64,899 | 65,812 | (28,377) | (22,277) | Operating Segment Assets and Liabilities (As at June 30, 2025) | Segment | 2025 Assets (HK$ thousand) | 2024 Assets (HK$ thousand) | 2025 Liabilities (HK$ thousand) | 2024 Liabilities (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | | Department Store Business | 117,305 | 116,979 | 103,855 | 109,563 | | Securities Trading | 6,967 | 7,636 | 1,032 | 948 | | Others | 20,326 | 36,165 | 5,395 | 5,194 | | Total (after elimination) | 129,551 | 129,932 | 95,235 | 84,857 | [(b) Geographical Information](index=11&type=section&id=(b)%20Geographical%20Information) The vast majority of the Group's revenue from external customers is generated in Hong Kong, with a small contribution from the UK and no revenue from other regions Revenue by Geographical Information (For the six months ended June 30) | Region | 2025 Revenue (HK$ thousand) | 2024 Revenue (HK$ thousand) | | :--- | :--- | :--- | | Hong Kong | 64,204 | 64,949 | | United Kingdom | 104 | 101 | | Others | – | – | | Total | 64,308 | 65,050 | [5. Revenue, Other Income and Net Gains](index=12&type=section&id=5.%20Revenue,%20Other%20Income%20and%20Net%20Gains) The Group's total revenue slightly decreased, with increased sales of own goods offset by reduced counter sales and consignment income, while other income and net gains remained stable, primarily from imputed interest income from Win Dynamic Revenue Sources (For the six months ended June 30) | Revenue Source | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Sales of goods – own goods | 51,460 | 48,944 | | Income from counter sales and consignment | 12,744 | 16,335 | | Net realized loss on securities trading | – | (330) | | Rental income | 104 | 101 | | Total Revenue | 64,308 | 65,050 | Other Income and Net Gains (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Bank interest income | 194 | 156 | | Imputed interest income from Win Dynamic donation | 9,426 | 9,424 | | Dividends from financial assets at fair value through profit or loss | 376 | 72 | | Net exchange (loss)/gain | (31) | 26 | | Others | 215 | 690 | | Total | 10,180 | 10,368 | - The transaction price for the customer loyalty program provision was **HK$1,014,000** (2024: **HK$1,202,000**), expected to be recognized as revenue within one year[34](index=34&type=chunk) [6. Loss Before Income Tax](index=13&type=section&id=6.%20Loss%20Before%20Income%20Tax) The Group's loss before income tax was primarily influenced by employee benefit expenses, depreciation, inventory provisions, expected credit loss provisions, and leasehold property-related charges, with employee benefits and lease charges increasing while depreciation significantly decreased Major Deductions for Loss Before Income Tax (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Employee benefit expenses (excluding directors' and chief executive's emoluments) | 18,668 | 16,848 | | Depreciation | 9,831 | 16,670 | | Provision for inventories | 389 | 580 | | Provision for expected credit losses on other receivables | 632 | 626 | | Other charges related to leasehold properties | 17,214 | 9,472 | [7. Income Tax Expense](index=14&type=section&id=7.%20Income%20Tax%20Expense) No provision for Hong Kong profits tax was made due to the absence of assessable profits in Hong Kong during the period, while other regions incurred a small amount of assessable profits tax Income Tax Expense (For the six months ended June 30) | Region | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Hong Kong | – | – | | Other Regions | 6 | – | | Total | 6 | – | [8. Loss Per Share Attributable to Owners of the Company](index=14&type=section&id=8.%20Loss%20Per%20Share%20Attributable%20to%20Owners%20of%20the%20Company) For the six months ended June 30, 2025, both basic and diluted loss per share attributable to owners of the Company remained at HK$0.02, consistent with the prior period, due to unchanged ordinary shares in issue and no potential dilutive ordinary shares Loss Per Share (For the six months ended June 30) | Indicator | 2025 (HK$) | 2024 (HK$) | | :--- | :--- | :--- | | Loss Attributable to Owners of the Company | (26,684) | (27,260) | | Weighted Average Number of Ordinary Shares in Issue | 1,313,962,560 | 1,313,962,560 | | Basic and Diluted Loss Per Share | (0.02) | (0.02) | [9. Dividends](index=14&type=section&id=9.%20Dividends) The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2025, consistent with the corresponding period in 2024 - The Board of Directors resolved not to declare an interim dividend for H1 2025 (2024: nil)[40](index=40&type=chunk) [10. Property, Plant and Equipment](index=15&type=section&id=10.%20Property,%20Plant%20and%20Equipment) As of June 30, 2025, the net book value of property, plant and equipment increased to HK$20.947 million, primarily due to additions and lease changes, partially offset by depreciation and disposals Movement in Property, Plant and Equipment (As at June 30, 2025) | Item | Owned Assets (HK$ thousand) | Right-of-use Assets (HK$ thousand) | Total (HK$ thousand) | | :--- | :--- | :--- | :--- | | Net Book Value as at January 1, 2025 | 1,764 | 14,319 | 16,083 | | Additions | 1,397 | 274 | 1,671 | | Lease Changes | – | 13,064 | 13,064 | | Depreciation for the Period | (567) | (9,264) | (9,831) | | Disposals | (38) | – | (38) | | Written Off | (2) | – | (2) | | Net Book Value as at June 30, 2025 | 2,554 | 18,393 | 20,947 | [11. Prepayments, Deposits, Other Receivables and Other Assets](index=15&type=section&id=11.%20Prepayments,%20Deposits,%20Other%20Receivables%20and%20Other%20Assets) These assets primarily comprise amounts receivable from Win Dynamic donation, rental deposits, amounts due from credit card companies, and prepaid deposits for related company loans, with the Win Dynamic donation receivable showing a significant increase Prepayments, Deposits, Other Receivables and Other Assets (As at June 30, 2025) | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Receivable from Win Dynamic donation | 202,527 | 193,101 | | Prepayments, deposits and other receivables | 40,060 | 39,040 | | Other assets | 4,421 | 4,421 | | Provision for expected credit losses | (1,886) | (1,254) | | Total | 245,122 | 235,308 | | Less: Classified as current portion | (20,867) | (16,678) | | Classified as non-current portion | 224,255 | 218,630 | - Amounts receivable from Win Dynamic donation increased from **HK$193.101 million** as of December 31, 2024, to **HK$202.527 million** as of June 30, 2025[42](index=42&type=chunk) [12. Trade Payables](index=16&type=section&id=12.%20Trade%20Payables) As of June 30, 2025, total trade payables were HK$40.310 million, a slight decrease from HK$41.392 million as of December 31, 2024, with a reduction in current to three-month payables and a significant increase in four to six-month payables Ageing Analysis of Trade Payables (As at end of reporting period) | Ageing | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Current to three months | 30,394 | 38,083 | | Four to six months | 7,794 | 1,195 | | Seven to twelve months | 109 | 55 | | Over one year | 2,013 | 2,059 | | Total | 40,310 | 41,392 | [13. Leases](index=16&type=section&id=13.%20Leases) The Group, as a lessee, leases retail stores and warehouses for typical terms of 1 to 3 years, with right-of-use assets and lease liabilities increasing due to additions and lease modifications - The Group leases retail stores and warehouses, with lease terms generally ranging from **1 to 3 years**, and some lease contracts include extension and termination options as well as variable lease payments[45](index=45&type=chunk) [(b) Lease Liabilities](index=17&type=section&id=(b)%20Lease%20Liabilities) Total lease liabilities increased from HK$13.643 million at the end of 2024 to HK$18.169 million as of June 30, 2025, primarily due to lease modifications and additions, partially offset by payments Movement in Lease Liabilities (As at June 30, 2025) | Item | H1 2025 (HK$ thousand) | FY 2024 (HK$ thousand) | | :--- | :--- | :--- | | At beginning of period/year | 13,643 | 11,913 | | Interest accrued during period/year | 1,031 | 1,609 | | Payments | (9,843) | (31,997) | | Additions | 274 | 9,389 | | Lease Changes | 13,064 | 22,729 | | At end of period/year | 18,169 | 13,643 | | Analysed as: Within one year | 9,597 | 7,319 | | Second to fifth year | 8,572 | 6,324 | [14. Bank Borrowings, Other Loans and Loans from Related Companies](index=18&type=section&id=14.%20Bank%20Borrowings,%20Other%20Loans%20and%20Loans%20from%20Related%20Companies) The Group's secured bank borrowings slightly increased, while other unsecured loans bear 2% annual interest, and unsecured related company loans (from Dr. Lam and Ms. So) bear HIBOR plus 5% interest, due March 2026, with approximately HK$179.6 million utilized - Secured bank borrowings amounted to **HK$8.834 million** (December 31, 2024: **HK$8.572 million**), bearing interest at HIBOR plus 1% per annum, and are secured by bank balances and time deposits of **HK$11.103 million**[48](index=48&type=chunk)[49](index=49&type=chunk) - Other loans amounted to **HK$576 thousand** (December 31, 2024: **HK$570 thousand**), are unsecured, bear interest at **2%** per annum, and are not repayable within 12 months after the reporting period[50](index=50&type=chunk)[53](index=53&type=chunk) - Loans from related companies (owned by Dr. Lam and Ms. So) are unsecured, bear interest at HIBOR plus **5%** per annum, and are repayable by March 20, 2026; approximately **HK$179.6 million** was utilized as of June 30, 2025[54](index=54&type=chunk)[89](index=89&type=chunk) [15. Share Capital](index=19&type=section&id=15.%20Share%20Capital) There was no change in the Company's share capital for the six months ended June 30, 2025, remaining at HK$469.977 million, comprising 1,313,962,560 ordinary shares Share Capital (As at June 30, 2025) | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Issued and fully paid: 1,313,962,560 ordinary shares | 469,977 | 469,977 | [16. Litigation](index=20&type=section&id=16.%20Litigation) The Company is involved in a lawsuit with Win Dynamic regarding a deed of gift from 2020, where Win Dynamic pledged approximately HK$260.443 million from share sales to the Company, but later claimed the deed invalid, a claim the Company and Welab Group Holdings Limited dispute, with the litigation ongoing and related amounts recognized as assets - Win Dynamic executed a deed in 2020, pledging approximately **HK$260.443 million** from the sale of the Company's shares as working capital for the Company[57](index=57&type=chunk) - In 2021, Win Dynamic claimed the deed was invalid and immediately cancelled it, citing undue influence, duress, and undervalue transactions, a claim not recognized by the Company's Board of Directors (excluding dissenting directors)[58](index=58&type=chunk)[59](index=59&type=chunk) - Welab and the Company initiated legal proceedings against Win Dynamic and Mr. Ma King Hin in the High Court to enforce the deed and declare its validity; the Company has recognized **HK$200.641 million** (net of expected credit loss provision) as receivable from Win Dynamic donation and **HK$9.426 million** in imputed interest income[60](index=60&type=chunk)[62](index=62&type=chunk)[73](index=73&type=chunk) [17. Commitments and Contingent Liabilities](index=23&type=section&id=17.%20Commitments%20and%20Contingent%20Liabilities) As of the reporting period end, the Group's outstanding commitments primarily consist of irrevocable letters of credit totaling HK$1.536 million Commitments and Contingent Liabilities (As at end of reporting period) | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Irrevocable letters of credit | 1,536 | 1,581 | Management Discussion and Analysis [Interim Results](index=24&type=section&id=Interim%20Results) The Group's principal activities during the review period were operating department stores, trading securities, and providing life insurance - The Group's principal activities during the review period were operating department stores, trading securities, and providing life insurance[76](index=76&type=chunk) [Overall Financial Review](index=24&type=section&id=Overall%20Financial%20Review) The Group's consolidated revenue slightly decreased by **1.2%** in H1 2025, with net loss marginally improving by **0.7%**, while gross profit fell by **15.3%** due to market weakness and promotions, partially offset by a **43.4%** reduction in finance costs Overall Financial Performance (For the six months ended June 30) | Indicator | H1 2025 (HK$ million) | H1 2024 (HK$ million) | Change (HK$ million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Consolidated Revenue | 64.3 | 65.1 | (0.8) | -1.2% | | Net Loss | (26.5) | (26.7) | 0.2 | -0.7% | | Gross Profit | 30.4 | 35.9 | (5.5) | -15.3% | | Finance Costs | 8.1 | 14.3 | (6.2) | -43.4% | - The persistent weak consumer and retail market in Hong Kong led to extended promotional activities and price reductions in the department store business, consequently impacting gross profit[78](index=78&type=chunk) [Revenue](index=24&type=section&id=Revenue) In H1 2025, the Group's revenue was HK$64.3 million, a **1.2%** decrease from the prior year, primarily driven by the department store business Revenue Comparison (For the six months ended June 30) | Item | H1 2025 (HK$ million) | H1 2024 (HK$ million) | Change (HK$ million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | 64.3 | 65.1 | (0.8) | -1.2% | | Department Store Business Revenue | 64.2 | 65.3 | (1.1) | -1.7% | [Other Income and Net Gains](index=24&type=section&id=Other%20Income%20and%20Net%20Gains) Other income and net gains for H1 2025 amounted to HK$10.2 million, a **1.9%** decrease from the prior year, primarily comprising stable imputed interest income from Win Dynamic donation Other Income and Net Gains Comparison (For the six months ended June 30) | Item | H1 2025 (HK$ million) | H1 2024 (HK$ million) | Change (HK$ million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Other Income and Net Gains | 10.2 | 10.4 | (0.2) | -1.9% | | Imputed Interest from Win Dynamic Donation | 9.4 | 9.4 | 0.0 | 0.0% | [Selling and Distribution Expenses](index=25&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and distribution expenses increased by **2.1%** to HK$34.2 million in H1 2025, mainly due to higher employee benefit expenses and short-term lease fees, despite a reduction in depreciation expenses Selling and Distribution Expenses Major Components (For the six months ended June 30) | Item | H1 2025 (HK$ million) | H1 2024 (HK$ million) | Change (HK$ million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Selling and Distribution Expenses | 34.2 | 33.5 | 0.7 | 2.1% | | Depreciation Expenses | 8.1 | 16.4 | (8.3) | -50.6% | | Short-term Lease Fees and Other Occupancy Costs | 15.5 | 7.4 | 8.1 | 109.5% | | Employee Benefit Expenses | 9.4 | 8.3 | 1.1 | 13.3% | [General and Administrative Expenses](index=25&type=section&id=General%20and%20Administrative%20Expenses) General and administrative expenses decreased by **4.0%** to HK$24.1 million in H1 2025, primarily due to the absence of trademark registration fees in the current period, partially offset by increased depreciation expenses related to leased warehouses General and Administrative Expenses Comparison (For the six months ended June 30) | Item | H1 2025 (HK$ million) | H1 2024 (HK$ million) | Change (HK$ million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total General and Administrative Expenses | 24.1 | 25.1 | (1.0) | -4.0% | | Employee Benefit Expenses | 9.3 | 8.5 | 0.8 | 9.4% | | Trademark Registration Fees | 0.0 | 2.3 | (2.3) | -100.0% | [Finance Costs](index=25&type=section&id=Finance%20Costs) Finance costs significantly decreased by **43.4%** to HK$8.1 million in H1 2025, mainly attributable to reduced interest expenses on bank borrowings and loans from related companies Finance Costs Comparison (For the six months ended June 30) | Item | H1 2025 (HK$ million) | H1 2024 (HK$ million) | Change (HK$ million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Finance Costs | 8.1 | 14.3 | (6.2) | -43.4% | | Decrease in Bank Borrowing Interest Expense | - | - | (2.4) | - | | Decrease in Related Company Loan Interest Expense | - | - | (3.9) | - | [Loss Attributable to Owners of the Company](index=25&type=section&id=Loss%20Attributable%20to%20Owners%20of%20the%20Company) The loss attributable to owners of the Company for H1 2025 was HK$26.7 million, a **2.2%** decrease from the prior year, indicating a slight improvement in overall profitability Loss Attributable to Owners of the Company Comparison (For the six months ended June 30) | Item | H1 2025 (HK$ million) | H1 2024 (HK$ million) | Change (HK$ million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Loss Attributable to Owners of the Company | 26.7 | 27.3 | (0.6) | -2.2% | [Business Review](index=26&type=section&id=Business%20Review) [Department Store Business](index=26&type=section&id=Department%20Store%20Business) In H1 2025, department store business revenue decreased by **1.7%** to HK$64.2 million due to a weak Hong Kong consumer market, leading to extended promotions and price reductions, which increased segment loss by **37.0%** to HK$23.7 million, while inventory levels decreased by **14.9%** Department Store Business Performance (For the six months ended June 30) | Indicator | H1 2025 (HK$ million) | H1 2024 (HK$ million) | Change (HK$ million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 64.2 | 65.3 | (1.1) | -1.7% | | Segment Loss | (23.7) | (17.3) | (6.4) | 37.0% | | Inventory Level (Period-end) | 32.0 | 37.6 | (5.6) | -14.9% | - The weak consumer and retail market in Hong Kong led to extended promotional activities and price reductions, adversely affecting the department store business performance[85](index=85&type=chunk) [Securities Trading Business](index=26&type=section&id=Securities%20Trading%20Business) In H1 2025, the securities trading business recorded a net unrealized loss of approximately HK$0.7 million, while dividend income increased from HK$0.07 million to HK$0.4 million, with segment loss remaining at approximately HK$1.3 million, and the Group plans to regularly review and improve its investment portfolio Securities Trading Business Performance (For the six months ended June 30) | Indicator | H1 2025 (HK$ million) | H1 2024 (HK$ million) | | :--- | :--- | :--- | | Net Realized Loss | 0.0 | (0.3) | | Net Unrealized Loss | (0.7) | (0.1) | | Dividend Income | 0.4 | 0.07 | | Segment Loss | (1.3) | (1.3) | - The Group will regularly review and improve its investment portfolio based on market conditions and capital requirements[86](index=86&type=chunk) [Prospects](index=26&type=section&id=Prospects) The Group anticipates continued challenges in the Hong Kong retail sector due to a weak consumer market and growing online shopping trends, but management will continuously monitor and adjust department store business strategies, remaining optimistic with support from Dr. Lam and Merill Holdings - The Hong Kong retail sector is expected to continue facing challenges from a weak consumer and retail market and the increasing preference of retail customers for online shopping[87](index=87&type=chunk) - The Group will continue to monitor and flexibly adjust its department store business operating strategies to navigate the challenging operating environment[87](index=87&type=chunk) - With the support of Dr. Lam and Merill Holdings, the Board of Directors remains optimistic about the Group's prospects[88](index=88&type=chunk) [Liquidity and Financial Resources](index=27&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group's total cash and bank balances, pledged bank balances, and deposits amounted to approximately HK$20.0 million, a decrease from end-2024, facing net current liabilities of HK$195.7 million and a liquidity ratio of 0.27, indicating significant liquidity pressure, with management implementing measures to improve profitability and liquidity and monitoring exchange rate risks Liquidity Position (As at June 30, 2025) | Indicator | June 30, 2025 (HK$ million) | December 31, 2024 (HK$ million) | | :--- | :--- | :--- | | Cash and bank balances, pledged bank balances and deposits | 20.0 | 22.2 | | Pledged portion | 11.1 | 11.2 | | Unpledged cash and bank balances | 8.9 | 10.9 | | Interest-bearing bank borrowings | 8.8 | 8.6 | | Utilized related company loans | 179.6 | 157.6 | | Net current liabilities | 195.7 | 4.2 | | Equity attributable to owners of the Company | 20.7 | 46.6 | | Current Ratio | 0.27 | 0.95 | | Capital to Debt Ratio | 314% | 195% | - Management is implementing measures to improve profitability, control operating costs, and reduce capital expenditures to enhance operational performance and mitigate liquidity risks[91](index=91&type=chunk) - The Group currently has no foreign exchange hedging policy, but management will continue to closely monitor foreign exchange risks[92](index=92&type=chunk) [Employees and Remuneration Policy](index=28&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had 191 employees and offers a diverse remuneration package including basic salary, discretionary bonuses, sales commissions, defined benefit retirement plans, MPF, staff purchase discounts, medical, and training subsidies Number of Employees | Date | Number of Employees | | :--- | :--- | | June 30, 2025 | 191 | | December 31, 2024 | 199 | - The Group provides employee benefits such as basic salary, discretionary bonuses, sales commissions, defined benefit retirement plans, Mandatory Provident Fund schemes, staff purchase discounts, medical, and training subsidies[93](index=93&type=chunk) [Interim Dividend](index=28&type=section&id=Interim%20Dividend) The Board of Directors has resolved not to declare an interim dividend for H1 2025 - The Board of Directors has resolved not to declare an interim dividend for H1 2025[94](index=94&type=chunk) [Directors' Interests in Transactions, Arrangements or Contracts](index=28&type=section&id=Directors'%20Interests%20in%20Transactions,%20Arrangements%20or%20Contracts) Except as disclosed elsewhere in this announcement, no director or their associated entities had a material interest in any significant transaction, arrangement, or contract of the Group during H1 2025 - During H1 2025, no director or their respective associated entities had a material interest, directly or indirectly, in any transaction, arrangement, or contract entered into by the Company or any of its subsidiaries that was significant to the Group's business[95](index=95&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=28&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during H1 2025 - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during H1 2025[96](index=96&type=chunk) [Directors' Interests in Competing Business](index=28&type=section&id=Directors'%20Interests%20in%20Competing%20Business) No director was considered to have an interest in any business that competes or is likely to compete, directly or indirectly, with the Group's business during H1 2025 - During H1 2025, no director was considered to have an interest in any business that competes or is likely to compete, directly or indirectly, with the Group's business[97](index=97&type=chunk) [Litigation](index=29&type=section&id=Litigation) The Group has no other material litigation apart from what is disclosed in Note 16 to the condensed consolidated interim financial statements - The Group has no other material litigation, with details provided in Note 16 to the condensed consolidated interim financial statements[98](index=98&type=chunk) [Commitments and Contingent Liabilities](index=29&type=section&id=Commitments%20and%20Contingent%20Liabilities) The Group has no other material commitments apart from what is disclosed in Note 17 to the condensed consolidated interim financial statements - The Group has no other material commitments, with details provided in Note 17 to the condensed consolidated interim financial statements[99](index=99&type=chunk) [Material Investments, Acquisitions and Disposals of Subsidiaries and Associates](index=29&type=section&id=Material%20Investments,%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%20and%20Associates) The Group did not undertake any material acquisitions or disposals of subsidiaries and associates, nor made any material investments, during H1 2025 - The Group did not undertake any material acquisitions or disposals of subsidiaries and associates, nor made any material investments, during H1 2025[100](index=100&type=chunk) [Standard Code for Securities Transactions](index=29&type=section&id=Standard%20Code%20for%20Securities%20Transactions) The Company has adopted the Standard Code as set out in Appendix C3 of the Listing Rules for directors' securities dealings, and all directors confirmed compliance during H1 2025 - The Company has adopted the Standard Code as set out in Appendix C3 of the Listing Rules, and all directors confirmed compliance with the code during H1 2025[101](index=101&type=chunk) [Corporate Governance](index=29&type=section&id=Corporate%20Governance) The Company complied with the Corporate Governance Code in Appendix C1 of the Listing Rules during H1 2025, except for code provision C.1.5, as one independent non-executive director was unable to attend the general meeting due to business arrangements - The Company complied with the Corporate Governance Code as set out in Appendix C1 of the Listing Rules during H1 2025, with the exception of code provision C.1.5[102](index=102&type=chunk) - Mr. Chung Chun Hung, an independent non-executive director, was unable to attend the Company's relevant general meeting during H1 2025 due to business arrangements[102](index=102&type=chunk) [Audit Committee and Review of Financial Statements](index=30&type=section&id=Audit%20Committee%20and%20Review%20of%20Financial%20Statements) The Audit Committee, comprising three independent non-executive directors, reviewed the Group's accounting principles and practices, and discussed audit, risk management, internal control, and financial reporting matters, including the unaudited condensed consolidated interim financial statements for H1 2025 - The Audit Committee comprises three independent non-executive directors, with Mr. Yu Leung Fai as Chairman[103](index=103&type=chunk) - The Audit Committee has reviewed the accounting principles and practices adopted by the Group and discussed matters concerning audit, risk management, internal control, and financial reporting, including the review of the unaudited condensed consolidated interim financial statements for H1 2025[103](index=103&type=chunk) [Publication of Interim Results and 2025 Interim Report on HKEX and Company Website](index=30&type=section&id=Publication%20of%20Interim%20Results%20and%202025%20Interim%20Report%20on%20HKEX%20and%20Company%20Website) This interim results announcement has been published on the HKEX and the Company's website, with the full 2025 interim report containing all required information to be dispatched to shareholders and published on the respective websites later - This interim results announcement has been published on the HKEX website (www.hkexnews.hk) and the Company's website (www.sincere.com.hk)[104](index=104&type=chunk) - The 2025 interim report, containing all information required by the Listing Rules, will be dispatched to shareholders and published on the HKEX and the Company's websites at a later date[104](index=104&type=chunk) [Acknowledgement](index=30&type=section&id=Acknowledgement) The Board extends its sincere gratitude to all employees for their dedication and loyalty, and to customers, suppliers, business partners, and shareholders for their continuous support during the period - The Board extends its sincere gratitude to all employees for their dedication and loyalty to the Group during the period, and to all customers, suppliers, business partners, and shareholders for their continuous support[105](index=105&type=chunk)

[Report Overview](index=1&type=section&id=Report%20Overview) This section provides an overview of the company's information, disclaimers, and definitions used in the report [Company Information and Disclaimer](index=1&type=section&id=Company%20Information%20and%20Disclaimer) Yancheng Port International Co., Limited, listed on GEM, presents its interim results, emphasizing GEM's high investment risk and the board's responsibility for accuracy - Yancheng Port International Co., Limited (Stock Code: 8310) is incorporated in the Cayman Islands and listed on GEM of HKEX[1](index=1&type=chunk) - The GEM market is positioned for small and medium-sized companies with higher investment risks, and investors should understand potential risks[1](index=1&type=chunk) - The company's directors jointly and individually assume full responsibility for this announcement, confirming accuracy, completeness, and absence of misleading or fraudulent content[2](index=2&type=chunk) [Definitions](index=2&type=section&id=Definitions) This chapter defines key terms used in the report, including company entities, committees, geographical areas, and currency units for clarity - Key entities defined in the report include "the Company" (Yancheng Port International Co., Limited) and "the Group" (the Company and its subsidiaries)[3](index=3&type=chunk) - "The Period" specifically refers to January 1, 2025, to June 30, 2025[4](index=4&type=chunk) - "China/Mainland China" excludes Hong Kong, Macau Special Administrative Regions, and Taiwan[4](index=4&type=chunk) [Financial Highlights](index=4&type=section&id=Financial%20Highlights) This section summarizes the Group's key financial performance indicators for the six months ended June 30, 2025 [Key Financial Performance Indicators](index=4&type=section&id=Key%20Financial%20Performance%20Indicators) For the six months ended June 30, 2025, the Group's total revenue decreased by **25.47% to approximately HK$515 million**, with loss before tax increasing by **48.00% to approximately HK$26.8 million** 2025 H1 Key Financial Data Comparison | Indicator | 2025 H1 (HKD) | 2024 H1 (HKD) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 514,700,000 | 690,500,000 | -25.47% | | Loss Before Tax | (26,800,000) | (18,100,000) | +48.00% | | Loss Attributable to Owners of the Company | (26,900,000) | (17,800,000) | +51.71% | | Loss Per Share | (0.0209) HK cents | (0.0138) HK cents | +51.45% | [Condensed Consolidated Financial Statements](index=5&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the Group's condensed consolidated financial statements, including comprehensive income, financial position, equity changes, and cash flows [Condensed Consolidated Statement of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group's revenue was **HK$514.65 million**, a **25.47% decrease**, with loss for the period expanding to **HK$26.88 million** Condensed Consolidated Statement of Comprehensive Income (For the six months ended June 30) | Indicator (HKD '000) | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | 514,654 | 690,507 | | Cost of Revenue | (513,268) | (689,223) | | Gross Profit | 1,386 | 1,284 | | Other (Losses)/Income | (4,354) | 1,802 | | Administrative Expenses | (13,742) | (9,929) | | Finance Costs | (10,070) | (11,251) | | Loss Before Tax | (26,780) | (18,094) | | Tax | (97) | – | | Loss for the Period | (26,877) | (18,094) | | Exchange Differences on Translation of Overseas Operations | 1,357 | (4,484) | | Total Comprehensive Loss for the Period | (25,520) | (22,578) | | Loss Attributable to Owners of the Company | (26,941) | (17,758) | | Loss Attributable to Non-controlling Interests | 64 | (336) | | Basic and Diluted Loss Per Share (HK cents) | (2.09) | (1.38) | [Condensed Consolidated Statement of Financial Position](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets less current liabilities worsened to **negative HK$230.79 million**, with total deficit attributable to owners increasing to **HK$537.05 million** Condensed Consolidated Statement of Financial Position (HKD '000) | Indicator | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Property, Plant and Equipment | 102,223 | 102,310 | | Right-of-use Assets | 35,527 | 34,719 | | **Current Assets** | | | | Trade and Other Receivables | 510,337 | 169,518 | | Bank Balances and Cash | 5,666 | 4,968 | | **Current Liabilities** | | | | Trade and Other Payables | 763,815 | 365,829 | | Current Portion of Bank and Other Borrowings | 124,418 | 151,946 | | **Net Current Liabilities** | (374,698) | (344,755) | | **Total Assets Less Current Liabilities** | (230,792) | (201,733) | | **Non-current Liabilities** | | | | Non-current Portion of Bank and Other Borrowings | 287,450 | 291,029 | | **Net Liabilities** | (519,669) | (494,149) | | **Total Deficit Attributable to Owners of the Company** | (537,053) | (510,711) | [Condensed Consolidated Statement of Changes in Equity](index=9&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, the total deficit attributable to owners increased from **HK$510.71 million** to **HK$537.05 million**, primarily due to the loss for the period Condensed Consolidated Statement of Changes in Equity (HKD '000) | Indicator | January 1, 2025 (Audited) | Loss for the Period | Exchange Differences on Translation of Overseas Operations | June 30, 2025 (Unaudited) | | :--- | :--- | :--- | :--- | :--- | | Total Deficit Attributable to Owners of the Company | (510,711) | (26,941) | 599 | (537,053) | | Non-controlling Interests | 16,562 | 64 | 758 | 17,384 | | Total Deficit | (494,149) | (26,877) | 1,357 | (519,669) | Condensed Consolidated Statement of Changes in Equity (HKD '000) | Indicator | January 1, 2024 (Audited) | Loss for the Period | Exchange Differences on Translation of Overseas Operations | June 30, 2024 (Unaudited) | | :--- | :--- | :--- | :--- | :--- | | Total Deficit Attributable to Owners of the Company | (465,583) | (17,758) | (3,824) | (487,165) | | Non-controlling Interests | 18,600 | (336) | (660) | 17,604 | | Total Deficit | (446,983) | (18,094) | (4,484) | (469,561) | [Condensed Consolidated Statement of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash used in operating activities was **HK$75.54 million**, while net cash from financing activities turned positive, leading to an increase in cash and cash equivalents Condensed Consolidated Statement of Cash Flows (For the six months ended June 30, HKD '000) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (75,537) | (40,409) | | Net Cash Used in Investing Activities | (610) | (1,990) | | Net Cash From/(Used in) Financing Activities | 76,730 | (91,681) | | Net Increase/(Decrease) in Cash and Cash Equivalents | 583 | (134,080) | | Cash and Cash Equivalents at End of Period | 5,666 | 21,838 | - Net cash from financing activities turned from an outflow of **HK$91.681 million** in the same period of 2024 to an inflow of **HK$76.73 million** in 2025, primarily due to new advances from related companies[15](index=15&type=chunk) [Notes to the Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) This section provides detailed notes to the condensed consolidated financial statements, covering company information, accounting policies, and specific financial items [Company Information and Basis of Preparation](index=11&type=section&id=Company%20Information%20and%20Basis%20of%20Preparation) The Company was incorporated in the Cayman Islands on September 13, 2011, and its interim financial statements are prepared in accordance with HKAS 34 and GEM Listing Rules - The Company was incorporated in the Cayman Islands as an exempted limited liability company on September 13, 2011[16](index=16&type=chunk) - The interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 and the GEM Listing Rules[17](index=17&type=chunk) - The adoption of new/revised Hong Kong Financial Reporting Standards had no significant impact on the Group's results and financial position for the current and prior accounting periods[18](index=18&type=chunk) [Segment Information](index=12&type=section&id=Segment%20Information) The Group primarily operates in trading (petrochemical and soybean products, supply chain management) and petrochemical product storage segments, with H1 2025 trading revenue at **HK$506 million** and storage revenue at **HK$8.5 million** - The Group's main operating segments are trading business (trading of petrochemical and soybean products, provision of supply chain management services) and petrochemical product storage business[20](index=20&type=chunk) Segment Revenue and Results (For the six months ended June 30, HKD '000) | Indicator | Trading Business (2025) | Storage Business (2025) | Trading Business (2024) | Storage Business (2024) | | :--- | :--- | :--- | :--- | :--- | | Revenue (from external customers) | 506,156 | 8,498 | 681,724 | 8,783 | | Segment Results | 709 | (6,904) | (1,435) | (6,554) | - All the Group's revenue from external customers is attributable to China[26](index=26&type=chunk) [Revenue and Other Income/Losses](index=16&type=section&id=Revenue%20and%20Other%20Income%2FLosses) The Group's revenue primarily comes from trading and petrochemical product storage, with other income/losses showing a net exchange loss of **HK$4.36 million** for H1 2025 Revenue Composition (For the six months ended June 30, HKD '000) | Revenue Source | 2025 | 2024 | | :--- | :--- | :--- | | Revenue from Trading Business | 506,156 | 681,724 | | Revenue from Providing Petrochemical Product Storage Services | 8,498 | 8,783 | | **Total Revenue** | **514,654** | **690,507** | Other (Losses)/Income (For the six months ended June 30, HKD '000) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Bank Interest Income | 4 | 46 | | Exchange (Losses)/Gains | (4,362) | 1,753 | | Miscellaneous Income | 4 | 3 | | **Total** | **(4,354)** | **1,802** | [Finance Costs and Key Expenses](index=17&type=section&id=Finance%20Costs%20and%20Key%20Expenses) For H1 2025, finance costs totaled **HK$10.07 million**, mainly from listed credit enhanced guaranteed bonds, with key expenses including cost of inventories and staff costs Finance Costs (For the six months ended June 30, HKD '000) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Interest on Borrowings Repayable Within Five Years | 2,049 | 2,368 | | Interest on Listed Credit Enhanced Guaranteed Bonds | 7,041 | 8,876 | | Interest on Lease Liabilities | 35 | 7 | | Interest on Loan from a Former Associate | 945 | – | | **Total** | **10,070** | **11,251** | Other Key Expenses (For the six months ended June 30, HKD '000) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Cost of Inventories | 505,552 | 681,436 | | Depreciation of Property, Plant and Equipment | 5,982 | 6,044 | | Depreciation of Right-of-use Assets | 501 | 534 | | Staff Costs | 9,661 | 7,259 | [Taxation and Dividends](index=18&type=section&id=Taxation%20and%20Dividends) The Group incurred **HK$97,000** in income tax expense for H1 2025, primarily due to under-provision from prior periods, and no interim dividend is recommended - Hong Kong profits tax is calculated under a two-tiered profits tax rate regime, but the Company or its Hong Kong subsidiaries did not generate assessable profits, hence no income tax[30](index=30&type=chunk) - China corporate income tax is calculated at a rate of **25%**, with an income tax expense of **HK$97,000** for H1 2025, mainly due to under-provision from prior periods[30](index=30&type=chunk)[32](index=32&type=chunk) - The Board does not recommend the payment of any interim dividend for the period (2024: nil)[32](index=32&type=chunk) [Loss Per Share and Property, Plant and Equipment](index=19&type=section&id=Loss%20Per%20Share%20and%20Property%2C%20Plant%20and%20Equipment) Basic loss per share attributable to owners increased to **HK$0.0209** for H1 2025, and the Group acquired property, plant, and equipment worth approximately **HK$0.64 million** during the period Basic Loss Per Share (For the six months ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Loss Attributable to Owners of the Company (HKD '000) | (26,941) | (17,758) | | Weighted Average Number of Ordinary Shares Issued | 1,288,000,000 | 1,288,000,000 | | Basic Loss Per Share (HK cents) | (2.09) | (1.38) | - During the period, the Group acquired items of property, plant and equipment at a cost of approximately **HK$0.64 million** (2024: approximately **HK$0.3 million**)[36](index=36&type=chunk) [Trade and Other Receivables](index=20&type=section&id=Trade%20and%20Other%20Receivables) As of June 30, 2025, trade and other receivables significantly increased to **HK$510.34 million**, with trade receivables (net of loss allowance) at **HK$453.34 million**, primarily concentrated within 90 days Trade and Other Receivables (HKD '000) | Item | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Trade Receivables (Third Parties) | 456,851 | 117,029 | | Less: Loss Allowance | (3,514) | (3,514) | | **Net Trade Receivables** | **453,337** | **113,515** | | Total Other Receivables | 57,000 | 56,003 | | **Total** | **510,337** | **169,518** | Ageing Analysis of Trade Receivables (HKD '000) | Ageing | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Within 90 Days | 449,373 | 107,727 | | Over 365 Days (No Credit Impairment) | 3,964 | 5,788 | | Over 365 Days (Credit Impairment) | 3,514 | 3,514 | - The Group grants credit periods of up to 90 days to trade debtors[38](index=38&type=chunk) [Trade and Other Payables](index=23&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, trade and other payables substantially increased to **HK$763.82 million**, including **HK$435.80 million** due to related companies, which are unsecured, repayable on demand, and interest-free Trade and Other Payables (HKD '000) | Item | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Trade Payables | 284,715 | 10,200 | | Accrued Expenses and Other Payables | 10,852 | 13,450 | | Contract Liabilities | 11,932 | 6,914 | | Amounts Due to Related Companies | 435,804 | 314,960 | | **Total** | **763,815** | **365,829** | Amounts Due to Related Companies (HKD '000) | Related Company | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Dafeng Port Development Group | 208,806 | 101,767 | | Xinyu International Development Co., Ltd. | 10,462 | 790 | | Dafeng Port (Hong Kong) | 216,536 | 212,403 | | **Total** | **435,804** | **314,960** | - Amounts due to related companies are unsecured, repayable on demand, and interest-free[44](index=44&type=chunk) [Bank and Other Borrowings](index=25&type=section&id=Bank%20and%20Other%20Borrowings) As of June 30, 2025, total bank and other borrowings decreased to **HK$411.87 million**, with listed credit enhanced guaranteed bonds and related company loans being major components Total Bank and Other Borrowings (HKD '000) | Item | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Bank Loans | 10,940 | 42,315 | | Loans from a Related Company | 102,537 | 99,650 | | Listed Credit Enhanced Guaranteed Bonds | 244,925 | 242,010 | | Loans from a Former Associate | 33,035 | 32,105 | | Loans from a Third Party | 19,339 | 25,871 | | **Total** | **411,868** | **442,975** | Borrowing Analysis (HKD '000) | Type | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Secured and Guaranteed | 19,339 | 25,871 | | Unsecured | 136,664 | 132,779 | | Unsecured but Guaranteed | 255,865 | 284,325 | | **Total** | **411,868** | **442,975** | [Share Capital and Related Party Transactions](index=26&type=section&id=Share%20Capital%20and%20Related%20Party%20Transactions) The Company's statutory share capital was **HK$100 million** and issued share capital was **HK$12.88 million**, with no changes during the period, and related party transactions included rental payments to Dafeng Port Development Group Share Capital Structure (HKD '000) | Item | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Authorized Share Capital (Ordinary Shares of HK$0.01 each) | 100,000 | 100,000 | | Issued and Fully Paid (Ordinary Shares of HK$0.01 each) | 12,880 | 12,880 | Related Party Transactions (For the six months ended June 30, HKD '000) | Transaction Type | 2025 | 2024 | | :--- | :--- | :--- | | Sales to Yancheng Port Finished Oil Co., Ltd. | 0 | 9,985 | | Rental Expenses: Dafeng Port Development Group | 114 | 105 | [Key Management Personnel Remuneration and Asset Pledges](index=27&type=section&id=Key%20Management%20Personnel%20Remuneration%20and%20Asset%20Pledges) Key management personnel remuneration significantly increased to **HK$2.801 million** for H1 2025, and approximately **HK$19.3 million** of third-party loans are secured by petrochemical storage equipment Key Management Personnel Remuneration (For the six months ended June 30, HKD '000) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Salaries, Allowances and Other Short-term Employee Benefits | 2,385 | 690 | | Contributions to Defined Contribution Plans | 416 | 12 | | **Total** | **2,801** | **702** | Bank and Other Facilities (HKD '000) | Item | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Total Bank and Other Facilities Granted to the Group | 54,700 | 85,056 | | Total Bank and Other Facilities Utilized | 30,279 | 68,186 | - As of June 30, 2025, approximately **HK$19.3 million** of loans from a third party were secured by petrochemical product storage equipment with a total carrying amount of approximately **HK$32.3 million**[49](index=49&type=chunk) [Commitments and Approval of Interim Financial Statements](index=28&type=section&id=Commitments%20and%20Approval%20of%20Interim%20Financial%20Statements) As of June 30, 2025, the Group had capital commitments of approximately **HK$222 million** for property, plant, and equipment construction, and the interim financial statements were approved on August 26, 2025 Capital Commitments (HKD '000) | Item | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Contracted but Not Provided For, Net of Deposits Paid for Construction of Property, Plant and Equipment | 221,763 | 212,862 | - The interim financial statements were approved and authorized for issue by the Board on August 26, 2025[51](index=51&type=chunk) [Management Discussion & Analysis](index=29&type=section&id=Management%20Discussion%20%26%20Analysis) This section provides management's perspective on the Group's financial performance, operational review, and strategic outlook amidst the economic environment [Economic Outlook and Company Strategy](index=29&type=section&id=Economic%20Outlook%20and%20Company%20Strategy) The Group will monitor global economic dynamics, mitigate external impacts, and strategically optimize resources to seize opportunities in Jiangsu Yancheng's integrated development - The global economic situation in H1 2025 was complex and volatile, with weak endogenous growth momentum in the domestic economy[52](index=52&type=chunk) - The Company will continue to closely monitor global economic dynamics to minimize the impact of adverse external factors and ensure stable operations[52](index=52&type=chunk) - Looking ahead, the Company will adopt a prudent operating approach, seize opportunities from the integrated development of Jiangsu Yancheng, rationally reorganize and optimize resources, and cautiously seek investment opportunities[64](index=64&type=chunk) [Business Review](index=29&type=section&id=Business%20Review) The Group's trading business revenue decreased by **25.74% to approximately HK$506 million** due to US-China tariff policies, while petrochemical storage revenue remained stable at approximately **HK$8.5 million** - The Group primarily engages in soybean product trading and petrochemical product storage services[53](index=53&type=chunk)[54](index=54&type=chunk)[55](index=55&type=chunk) Business Revenue Comparison (For the six months ended June 30, HKD) | Business Type | 2025 H1 | 2024 H1 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Trading Business Revenue | 506,200,000 | 681,700,000 | -25.74% | | Petrochemical Product Storage Business Revenue | 8,500,000 | 8,800,000 | -3.25% | - The decrease in trading business revenue was mainly due to the impact of US-China tariff policies, leading to a decline in transaction volume[54](index=54&type=chunk) [Financial Review](index=30&type=section&id=Financial%20Review) The Group's revenue decreased by **25.47% to approximately HK$515 million**, but gross profit margin improved to **0.27%** due to optimized sales channels, though loss for the period expanded to **HK$26.9 million** Financial Performance Comparison (For the six months ended June 30, HKD) | Indicator | 2025 H1 | 2024 H1 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 514,700,000 | 690,500,000 | -25.47% | | Cost of Revenue | 513,300,000 | 689,200,000 | -25.53% | | Gross Profit Margin | 0.27% | 0.19% | +0.08pp | | Finance Costs | 10,100,000 | 11,300,000 | -10.62% | | Loss for the Period | (26,900,000) | (18,100,000) | +48.62% | | Loss Per Share | (0.0209) HK cents | (0.0138) HK cents | +51.45% | - The increase in gross profit margin was mainly due to the Group's proactive development of new sales channels and markets, coupled with optimizing the existing channel structure to enhance bargaining power[56](index=56&type=chunk) [Liquidity and Financial Resources](index=31&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, net current liabilities increased to approximately **HK$374.7 million**, but the liquidity ratio improved to **0.58**, and the gearing ratio improved to **negative 79.3%** Liquidity Indicators Comparison (HKD) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Net Current Liabilities | (374,700,000) | (344,800,000) | | Current Ratio | 0.58 | 0.34 | | Gearing Ratio | -79.3% | -89.6% | | Total Interest-bearing Borrowings | 411,900,000 | 443,000,000 | | Total Deficit | 519,700,000 | 494,100,000 | - The increase in the current ratio was primarily due to the combined effect of increased trade and other receivables, bank balances and cash, and a decrease in the current portion of bank and other borrowings[58](index=58&type=chunk) [Capital Structure and Dividend Policy](index=31&type=section&id=Capital%20Structure%20and%20Dividend%20Policy) The total deficit attributable to owners increased to approximately **HK$537.1 million**, with no change in issued share capital and no interim dividend recommended Capital Structure Comparison (HKD) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Deficit Attributable to Owners of the Company | (537,100,000) | (510,700,000) | - The Company's issued share capital remained unchanged during the period[59](index=59&type=chunk) - The Board does not recommend the payment of any interim dividend for the period (2024: nil)[60](index=60&type=chunk) [Strategic Outlook and Investments](index=32&type=section&id=Strategic%20Outlook%20and%20Investments) The Group uses bank financing for business expansion, with **HK$19.3 million** in third-party loans secured by petrochemical storage equipment, and currently has no significant future investment plans - The Group utilizes bank financing and other borrowings to fund its business expansion[61](index=61&type=chunk) - As of June 30, 2025, approximately **HK$19.3 million** of loans from a third party were secured by petrochemical storage equipment with a total carrying amount of approximately **HK$32.3 million**[61](index=61&type=chunk) - During the period, the Company did not undertake any significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures, and currently has no significant future investment or capital asset plans[62](index=62&type=chunk)[63](index=63&type=chunk) [Operational and Risk Management](index=33&type=section&id=Operational%20and%20Risk%20Management) The Group manages foreign exchange risk through various measures, employs **89 staff** with total costs of approximately **HK$9.7 million**, and has capital commitments of approximately **HK$222 million** for PPE construction - The Group monitors foreign exchange risk by adjusting the timing of foreign currency receipts and payments, matching foreign currency balances, and entering into foreign exchange forward contracts with banks, expecting no significant foreign currency risk[65](index=65&type=chunk) Employees and Remuneration (For the six months ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Number of Employees | 89 | 90 | | Total Staff Costs (HKD) | 9,700,000 | 7,300,000 | - As of June 30, 2025, the Group had capital commitments contracted but not provided for (net of deposits paid) of approximately **HK$222 million**, primarily related to the construction of property, plant and equipment[67](index=67&type=chunk) [Other Information](index=34&type=section&id=Other%20Information) This section covers contingent liabilities, corporate actions, company name change, director changes, post-balance sheet events, and shareholder interests [Contingent Liabilities and Corporate Actions](index=34&type=section&id=Contingent%20Liabilities%20and%20Corporate%20Actions) The Group had no significant contingent liabilities, but a mandatory unconditional cash offer for **24.44%** of issued share capital was completed during the period - As of June 30, 2025, the Group had no significant contingent liabilities[68](index=68&type=chunk) - Dafeng Port (Hong Kong) acquired a **60%** equity interest in Yancheng Port Overseas and made a mandatory unconditional cash offer at **HK$0.48** per share[69](index=69&type=chunk) - During the offer period, a total of **315 million** offer shares were validly accepted, representing approximately **24.44%** of the Company's then-issued share capital[69](index=69&type=chunk) [Company Name Change](index=35&type=section&id=Company%20Name%20Change) The Company's English and Chinese names were officially changed to Yancheng Port International Co., Limited and 盐城港国际股份有限公司, effective March 6, 2025 - The Company's English name has been changed from "Dafeng Port Heshun Technology Company Limited" to "Yancheng Port International Co., Limited"[70](index=70&type=chunk) - The Chinese name has been changed from "大丰港和顺科技股份有限公司" to "盐城港国际股份有限公司"[70](index=70&type=chunk) - The name change became effective on March 6, 2025[70](index=70&type=chunk) [Changes in Directors and Board Committee Composition](index=35&type=section&id=Changes%20in%20Directors%20and%20Board%20Committee%20Composition) The board and committee composition saw multiple changes, including resignations of non-executive directors, appointments of executive and non-executive directors, and changes in chairman roles - Mr. Ji Longtao, Mr. Yang Yuexia, and Mr. Zhang Shukai resigned as non-executive directors, and Mr. Ji Yaosheng was appointed as an executive director and chief executive officer (effective March 21, 2025)[72](index=72&type=chunk) - Mr. Zhao Liang resigned as executive director, chairman of the Board, and other positions; Mr. Zhou Zhengxiong, Mr. Ding Anguang, and Ms. Yuan Xin were appointed as non-executive directors (effective March 31, 2025)[75](index=75&type=chunk) - Ms. Yuan Xin was re-designated as an executive director and vice chairman of the Board (effective May 28, 2025); Mr. Lu Shuai was appointed as an executive director, chairman of the Board, and chairman of the Nomination Committee (effective August 1, 2025)[75](index=75&type=chunk) [Post Balance Sheet Events](index=36&type=section&id=Post%20Balance%20Sheet%20Events) No significant post-balance sheet events occurred after the period and up to the announcement date, other than those disclosed - Save as disclosed in this announcement, there were no significant events after the period and up to the date of this announcement[74](index=74&type=chunk) [Directors' and Chief Executive's Interests](index=37&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests) As of June 30, 2025, no directors or chief executives held disclosable interests or short positions in the Company's shares or related corporations - As of June 30, 2025, no directors or chief executive of the Company had any interests or short positions in the shares, underlying shares, and debentures of the Company or any associated corporation that were required to be disclosed under the SFO or the GEM Listing Rules[76](index=76&type=chunk) [Convertible Securities, Warrants or Similar Rights](index=37&type=section&id=Convertible%20Securities%2C%20Warrants%20or%20Similar%20Rights) As of June 30, 2025, the Group had not issued or granted any convertible securities, warrants, or similar rights - As of June 30, 2025, the Group had not issued or granted any convertible securities, warrants, or other similar rights[77](index=77&type=chunk) [Substantial Shareholders' Interests](index=38&type=section&id=Substantial%20Shareholders'%20Interests) As of June 30, 2025, Yancheng Port Overseas held **57.46%** of the Company's shares, with Dafeng Port (Hong Kong) and its related entities holding a combined **74.97%** Substantial Shareholders' Holdings (As of June 30, 2025) | Shareholder Name | Capacity/Nature of Interest | Number of Shares Held | Approximate Percentage of Company's Issued Share Capital | | :--- | :--- | :--- | :--- | | Yancheng Port Overseas | Beneficial Owner | 740,040,000 (L) | 57.46% | | Dafeng Port (Hong Kong) | Interest of Controlled Corporation + Beneficial Owner | 965,575,000 (L) | 74.97% | | Dafeng Port Development Group | Interest of Controlled Corporation | 965,575,000 (L) | 74.97% | | Jiangsu Yancheng | Interest of Controlled Corporation | 965,575,000 (L) | 74.97% | | Yancheng Municipal People's Government | Interest of Controlled Corporation | 965,575,000 (L) | 74.97% | - Dafeng Port Development Group, Jiangsu Yancheng, and Yancheng Municipal People's Government are deemed to have interests in the Company's shares held by Yancheng Port Overseas and Dafeng Port (Hong Kong)[82](index=82&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=39&type=section&id=Purchase%20Sale%20or%20Redemption%20of%20Listed%20Securities) Neither the Company nor its subsidiaries purchased, sold, or redeemed any of its listed securities during the period - During the period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[81](index=81&type=chunk) [Corporate Governance](index=40&type=section&id=Corporate%20Governance) The Board believes it operates independently despite the controlling shareholder's competing business, and the Company has complied with all Corporate Governance Code provisions - The controlling shareholder, Dafeng Port Development Group, engages in competing businesses involving various goods trading, but the Board believes their business focus differs and does not pose a significant competitive threat to the Group[83](index=83&type=chunk) - The Board believes it operates independently from Dafeng Port Development Group, as directors are prohibited from voting on conflict of interest matters and are fully aware of their fiduciary duties[84](index=84&type=chunk) - The Company has adopted a code of conduct for directors' securities transactions, and no non-compliance was found during the period[86](index=86&type=chunk) - The Company has complied with all code provisions of the Corporate Governance Code during the period and will continue to review and enhance its corporate governance standards[87](index=87&type=chunk) [Board Information](index=42&type=section&id=Board%20Information) This section provides details on the Audit Committee's composition and responsibilities, along with an acknowledgment from the Board Chairman and the current Board composition [Audit Committee](index=42&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors, reviewed the interim financial statements and found them compliant with accounting standards and legal requirements - The Audit Committee was established on August 3, 2013, and comprises three independent non-executive directors: Mr. Liu Hon Kee (Chairman), Mr. Yu Xugang, and Ms. Xu Jingyang[88](index=88&type=chunk) - The Audit Committee's primary responsibilities include providing recommendations on the appointment and removal of external auditors, reviewing financial statements, and overseeing the Group's internal control procedures and risk management system[88](index=88&type=chunk) - The interim financial statements have not been audited by the Company's auditors but have been reviewed by the Audit Committee and are considered to comply with applicable accounting standards, GEM Listing Rules, and legal requirements[88](index=88&type=chunk) [Acknowledgement and Board Composition](index=42&type=section&id=Acknowledgement%20and%20Board%20Composition) Board Chairman Mr. Lu Shuai extends gratitude to all management, staff, business partners, customers, and shareholders, and the Board currently comprises three executive, one non-executive, and three independent non-executive directors - Board Chairman Mr. Lu Shuai, on behalf of the Board, extends gratitude to all management, staff, business partners, customers, and shareholders[89](index=89&type=chunk)[90](index=90&type=chunk) Board Member Composition (As of the date of this announcement) | Category | Name | | :--- | :--- | | Executive Directors | Mr. Lu Shuai (Chairman), Ms. Yuan Xin (Vice Chairman), Mr. Ji Yaosheng | | Non-executive Director | Mr. Ding Anguang | | Independent Non-executive Directors | Mr. Liu Hon Kee, Mr. Yu Xugang, Ms. Xu Jingyang |

截至二零二五年六月三十日止半年度業績 元/股。 報告期內，按國際財務報告準則編製的本公司營業收入約為 4,129,179 萬元，較上年同 期下降約 9.38%。 截至報告期末，按國際財務報告準則編製的本公司股東權益持有人應佔利潤約為 463,102 萬元，較上年同期上升約 32.83%。 截至報告期末，按國際財務報告準則編製的每股基本盈利為 0.88 元，較上年同期上升 0.22 元/股。 在本公告內，除非另有說明，貨幣單位均為人民幣，中華人民共和國（「中國」）法定貨 幣；除非另有說明，本公告內所有財務資料均按照企業會計準則（2006）（「中國會計準 則」）編製。本公告所指「報告期」是指 2025 年 1 月 1 日至 2025 年 6 月 30 日的期間。 一、本公司基本情況簡介 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整 性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而産生或因倚賴該等內容而 引致的任何損失承擔任何責任。 安徽海螺水泥股份有限公司 ANHUI CONCH CEMENT COMPANY LIMITED （在中華人民共和國註冊成立 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準 確性或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部份內容而產 生或因依賴該等內容而引致之任何損失承擔任何責任。 ( 於中華人民共和國註冊成立的股份有限公司 ) (股份代號：1666) 中期業績公告 截至二零二五年六月三十日止六個月 摘要 1 截至二零二五年六月三十日止六個月，本集團銷售收入較二零二四年同期下降約 7.69%。 截至二零二五年六月三十日止六個月，歸屬於本公司所有者之利潤較二零二四年同期 下降約 21.01%。 截至二零二五年六月三十日止六個月，歸屬於本公司所有者之每股收益為人民幣 0.26 元。 董事會決議不派發截至二零二五年六月三十日止六個月之中期股息。 中期業績(未經審核) 北京同仁堂科技發展股份有限公司（「本公司」或「公司」）之董事會 （「董事會」）欣然宣 佈本公司及其子公司（以下合稱「本集團」）截至二零二五年六月三十日止六個月（「報告 期」）未經審核之業績： 簡明合併利潤表(未經審核) | | | | 截至六月三十日止六個月 | | | --- | --- | --- | --- | --- ...

[Financial Highlights](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) NET-A-GO TECHNOLOGY LIMITED reported **73.0%** revenue growth and a shift from loss to profit for H1 2025, with **6.4 HK Cents** basic and diluted EPS - No interim dividend declared for the period[2](index=2&type=chunk) Interim Financial Highlights | Metric | Six Months Ended June 30, 2025 (HKD Thousand) | Prior Period (HKD Thousand) | Change Rate | |---|---|---|---| | Revenue | 180,697 | 104,428 | +73.0% | | Profit/(Loss) attributable to equity holders of the Company from continuing operations | 22,670 | (4,225) | Turned from loss to profit | | Profit/(Loss) attributable to equity holders of the Company | 47,535 | (4,811) | Turned from loss to profit | | Basic and diluted earnings per share (HK Cents) | 6.4 | (0.6) | Turned from loss to profit | [Condensed Consolidated Statement of Comprehensive Income](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) The condensed consolidated statement of comprehensive income shows significant revenue and gross profit growth, with operating profit turning from loss to profit Condensed Consolidated Statement of Comprehensive Income (For the Six Months Ended June 30) | Metric | 2025 (HKD Thousand) | 2024 (HKD Thousand) | Change | Change Rate | |---|---|---|---|---| | Revenue | 180,697 | 104,428 | +76,269 | +73.0% | | Cost of Revenue | (147,258) | (97,334) | (49,924) | +51.3% | | Gross Profit | 33,439 | 7,094 | +26,345 | +371.4% | | Operating Profit/(Loss) | 20,940 | (5,801) | +26,741 | Turned from loss to profit | | Profit/(Loss) from continuing operations for the period | 18,390 | (7,078) | +25,468 | Turned from loss to profit | | Profit/(Loss) from discontinued operations for the period | 24,865 | (586) | +25,451 | Turned from loss to profit | | Profit/(Loss) attributable to equity holders of the Company | 47,535 | (4,811) | +52,346 | Turned from loss to profit | | Basic and diluted EPS (HK Cents) - Continuing operations | 3.1 | (0.5) | +3.6 | Turned from loss to profit | | Basic and diluted EPS (HK Cents) - Discontinued operations | 3.3 | (0.1) | +3.4 | Turned from loss to profit | | Basic and diluted EPS (HK Cents) - Total | 6.4 | (0.6) | +7.0 | Turned from loss to profit | [Condensed Consolidated Statement of Financial Position](index=5&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) Total assets slightly increased by June 30, 2025, driven by current asset growth, while non-current assets decreased, and total equity and liabilities varied Condensed Consolidated Statement of Financial Position (As at June 30, 2025) | Metric | June 30, 2025 (HKD Thousand) | December 31, 2024 (HKD Thousand) | Change | Change Rate | |---|---|---|---|---| | Total Non-current Assets | 307,164 | 388,820 | (81,656) | -21.0% | | Total Current Assets | 675,068 | 588,688 | +86,380 | +14.7% | | Total Assets | 982,232 | 977,508 | +4,724 | +0.5% | | Total Equity | 373,060 | 348,414 | +24,646 | +7.1% | | Total Non-current Liabilities | 83,418 | 182,244 | (98,826) | -54.2% | | Total Current Liabilities | 525,754 | 446,850 | +78,904 | +17.7% | | Total Liabilities | 609,172 | 629,094 | (19,922) | -3.2% | [Condensed Consolidated Statement of Changes in Equity](index=7&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) Total equity increased to **HKD 373,060 thousand** by June 30, 2025, driven by profit and disposal gains, partially offset by share repurchases - Profit for the period **HKD 47,535 thousand** significantly increased equity[8](index=8&type=chunk) - Share repurchases resulted in a reduction in share capital and share premium of **HKD 69,952 thousand**[8](index=8&type=chunk) - Disposal of subsidiaries generated a gain of **HKD 52,404 thousand**[8](index=8&type=chunk) Condensed Consolidated Statement of Changes in Equity (For the Six Months Ended June 30, 2025) | Metric | Balance as at January 1, 2025 (HKD Thousand) | Profit/(Loss) for the period (HKD Thousand) | Other comprehensive loss (HKD Thousand) | Share Repurchases (HKD Thousand) | Disposal of Subsidiaries (HKD Thousand) | Balance as at June 30, 2025 (HKD Thousand) | |---|---|---|---|---|---|---| | Total (Equity attributable to owners of the Company) | 317,820 | 47,535 | (186) | (69,952) | 52,404 | 346,746 | | Total Equity | 348,414 | 43,255 | (186) | (69,952) | 52,404 | 373,060 | [Notes to the Interim Financial Information](index=8&type=section&id=%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E9%99%84%E8%A8%BB) This section details the basis of preparation, accounting policies, segment information, revenue, expenses, taxes, discontinued operations, EPS, receivables, payables, financial assets, and related party transactions [1. General Information](index=8&type=section&id=1.%20%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) NET-A-GO TECHNOLOGY LIMITED, incorporated in the Cayman Islands and listed in Hong Kong, primarily engages in media advertising, environmental protection, and trading - The Company is incorporated in the Cayman Islands with its principal place of business in Hong Kong[9](index=9&type=chunk) - The Company is listed on the Main Board of The Stock Exchange of Hong Kong Limited[10](index=10&type=chunk) - Principal businesses include media advertising and marketing, environmental protection, and trading[10](index=10&type=chunk) [2. Basis of Preparation and Significant Accounting Policies](index=8&type=section&id=2.%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96%E5%8F%8A%E9%87%8D%E5%A4%A7%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) The condensed consolidated interim financial information is prepared under HKAS 34 using historical cost, with new IFRS amendments having no material impact - The condensed consolidated interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting'[11](index=11&type=chunk) - Prepared on a historical cost basis[11](index=11&type=chunk) - The adopted amendments to IFRS had **no material impact** on the Group's financial position and performance for the current and prior periods[12](index=12&type=chunk) [2.1 New Accounting Standards and Accounting Changes](index=9&type=section&id=2.1%20%E6%96%B0%E6%9C%83%E8%A8%88%E6%BA%96%E5%89%87%E5%8F%8A%E6%9C%83%E8%A8%88%E8%AE%8A%E5%8B%95) New IFRS amendments, including IAS 21 and IFRS 21 (Amendments) 'Lack of Exchangeability', were applied with no material impact on financial position or performance - IAS 21 and IFRS 21 (Amendments) 'Lack of Exchangeability' were first applied in this interim period[12](index=12&type=chunk) - The application of new accounting standards had **no material impact** on the Group's financial position and performance for the current and prior periods[12](index=12&type=chunk) [3. Segment Information](index=9&type=section&id=3.%20%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group operates three continuing segments: environmental protection, media advertising, and trading, with property leasing and medical device sales classified as discontinued operations - The Group operates three continuing segments: environmental protection business, media advertising and marketing business, and trading business[13](index=13&type=chunk)[14](index=14&type=chunk) - Property leasing business and medical device sales business have been disposed of and classified as discontinued operations[13](index=13&type=chunk) [3. (a) Segment Revenue and Results Analysis](index=10&type=section&id=3.%20(a)%20%E5%88%86%E9%83%A8%E6%94%B6%E5%85%A5%E5%8F%8A%E6%A5%AD%E7%B8%BE%E5%88%86%E6%9E%90) Segment revenue and results show significant media advertising growth, trading profit from financial assets, declining environmental protection revenue, and substantial discontinued operations profit from disposal - Media advertising and marketing business revenue significantly increased from **HKD 3,791 thousand** to **HKD 128,191 thousand**, achieving **significant growth**[15](index=15&type=chunk) - Profit from trading business primarily derived from gains on financial assets at fair value through profit or loss and disposal gains[15](index=15&type=chunk) Segment Revenue and Results (For the Six Months Ended June 30) | Segment | 2025 Revenue (HKD Thousand) | 2024 Revenue (HKD Thousand) | 2025 Profit/(Loss) (HKD Thousand) | 2024 Profit/(Loss) (HKD Thousand) | |---|---|---|---|---| | Environmental Protection Business | 36,040 | 81,351 | 2,398 | 8,464 | | Media Advertising and Marketing Business | 128,191 | 3,791 | (10,488) | (14,326) | | Trading Business | 16,466 | 19,286 | 29,238 | 2,161 | | Discontinued Operations | 1,176 | 4,324 | 24,865 | (586) | [3. (b) Segment Assets and Liabilities](index=10&type=section&id=3.%20(b)%20%E5%88%86%E9%83%A8%E8%B3%87%E7%94%A2%E5%8F%8A%E8%B2%A0%E5%82%B5) Segment assets and liabilities analysis shows slight environmental protection asset increase, stable media advertising, decreased trading assets and liabilities, and no assets or liabilities for discontinued operations - Assets and liabilities of discontinued operations were **cleared to zero** in the current period[17](index=17&type=chunk) Segment Assets and Liabilities (As at June 30, 2025) | Segment | Assets as at June 30, 2025 (HKD Thousand) | Assets as at December 31, 2024 (HKD Thousand) | Liabilities as at June 30, 2025 (HKD Thousand) | Liabilities as at December 31, 2024 (HKD Thousand) | |---|---|---|---|---| | Environmental Protection Business | 163,142 | 143,780 | 42,012 | 47,386 | | Media Advertising and Marketing Business | 399,789 | 404,575 | 357,996 | 368,887 | | Trading Business | 82,170 | 136,774 | 8,523 | 6,405 | | Discontinued Operations | – | 70,212 | – | 16,288 | [3. (c) Geographical Information](index=11&type=section&id=3.%20(c)%20%E5%9C%B0%E5%8D%80%E8%B3%87%E6%96%99) Continuing operations revenue primarily from China showed significant growth, while Hong Kong revenue slightly decreased, and discontinued operations revenue also mainly came from China - Revenue from continuing operations in China **nearly doubled year-on-year**[18](index=18&type=chunk) - No single customer accounted for more than **10%** of total revenue in the current period[19](index=19&type=chunk) Geographical Segment Revenue (For the Six Months Ended June 30) | Region | 2025 (HKD Thousand) | 2024 (HKD Thousand) | |---|---|---| | Continuing Operations - China | 164,230 | 86,334 | | Continuing Operations - Hong Kong | 16,467 | 18,094 | | Discontinued Operations - China | 1,176 | 4,324 | [4. Revenue](index=12&type=section&id=4.%20%E6%94%B6%E5%85%A5) Total revenue was approximately **HKD 180,697 thousand**, a **73.0%** year-on-year increase, primarily driven by substantial growth in media advertising and marketing revenue - Advertising revenue from media advertising and marketing business was the **primary driver** of revenue growth in the current period[20](index=20&type=chunk) Revenue Breakdown (For the Six Months Ended June 30) | Business Segment | 2025 (HKD Thousand) | 2024 (HKD Thousand) | Change Rate | |---|---|---|---| | Media Advertising and Marketing Business (Advertising revenue) | 128,191 | 3,791 | +3280.0% | | Environmental Protection Business (Service revenue) | 36,040 | 81,351 | -55.7% | | Trading Business (Cosmetics trading) | 16,466 | 19,142 | -14.0% | | Discontinued Operations (Property leasing) | 1,176 | 996 | +18.1% | [Contract Assets from Customer Contracts](index=13&type=section&id=%E5%AE%A2%E6%88%B6%E5%90%88%E7%B4%84%E7%9B%B8%E9%97%9C%E4%B9%8B%E8%B3%87%E7%94%A2) Total contract assets increased to **HKD 46,398 thousand** by June 30, 2025, mainly due to growth in media advertising and marketing business - Non-current contract assets of **HKD 13,706 thousand** originated from an eight-year service contract in the environmental protection business, not yet converted to trade receivables[21](index=21&type=chunk) Contract Assets (HKD Thousand) | Category | June 30, 2025 | December 31, 2024 | |---|---|---| | Environmental Protection Business | 28,806 | 28,806 | | Media Advertising and Marketing Business | 32,779 | 21,081 | | Total Contract Assets (net of loss allowance) | 46,398 | 34,700 | [5. General and Administrative Expenses](index=14&type=section&id=5.%20%E4%B8%80%E8%88%AC%E5%8F%8A%E8%A1%8C%E6%94%BF%E8%B2%BB%E7%94%A8) General and administrative expenses significantly increased to approximately **HKD 27,564 thousand**, primarily due to higher staff costs from media advertising and marketing business expansion - Staff salaries and allowances **significantly increased**, mainly due to the expansion of the media advertising and marketing business[23](index=23&type=chunk) General and Administrative Expenses (For the Six Months Ended June 30) | Item | 2025 (HKD Thousand) | 2024 (HKD Thousand) | Change Rate | |---|---|---|---| | Staff salaries and allowances | 26,250 | 6,554 | +300.5% | | Total | 27,564 | 12,113 | +127.5% | [6. Finance Income – Net](index=14&type=section&id=6.%20%E8%B2%A1%E5%8B%99%E6%94%B6%E5%85%A5%EF%BC%8D%E6%B7%A8%E9%A1%8D) Net finance income turned to a net expense of **HKD 1,742 thousand**, primarily due to a substantial increase in finance costs from shareholder and related party loans - Finance costs primarily include interest expenses on shareholder loans and related party loans, increasing by approximately **249%** year-on-year[24](index=24&type=chunk) Finance Income – Net (For the Six Months Ended June 30) | Item | 2025 (HKD Thousand) | 2024 (HKD Thousand) | |---|---|---| | Finance income | 2,459 | 2,106 | | Finance costs | (4,201) | (1,204) | | Finance income – net | (1,742) | 902 | [7. Income Tax Expense](index=14&type=section&id=7.%20%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Income tax expense decreased to **HKD 808 thousand**, entirely from China corporate income tax, with no Hong Kong profits tax, and mainland China subsidiaries subject to a **25%** tax rate - Hong Kong profits tax is provided at a **16.5%** rate, and mainland China corporate income tax at a **25%** rate[25](index=25&type=chunk) Income Tax Expense (For the Six Months Ended June 30) | Item | 2025 (HKD Thousand) | 2024 (HKD Thousand) | |---|---|---| | China corporate income tax | 808 | 2,179 | [8. Discontinued Operations](index=15&type=section&id=8.%20%E7%B5%82%E6%AD%A2%E7%B6%93%E7%87%9F%E6%A5%AD%E5%8B%99) The Group completed the disposal of its property leasing business and previously sold its medical device sales business, both classified as discontinued operations, with the property leasing disposal generating significant gain - The property leasing business disposal was completed on **June 30, 2025**, for a consideration of approximately **HKD 77,525 thousand**[26](index=26&type=chunk) - The medical device sales business (Youmitai) disposal was completed on **August 1, 2024**, for a consideration of approximately **HKD 24,648 thousand**[28](index=28&type=chunk) [8. (a) Proposed Disposal of Property Leasing Business](index=15&type=section&id=8.%20(a)%20%E6%93%AC%E5%87%BA%E5%94%AE%E7%89%A9%E6%A5%AD%E7%A7%9F%E8%B3%83%E6%A5%AD%E5%8B%99) The Group disposed of its property leasing business for approximately **HKD 77,525 thousand**, completed by **June 30, 2025**, generating a gain of **HKD 24,226 thousand** - A gain of **HKD 24,226 thousand** arose from the disposal of the subsidiary[27](index=27&type=chunk) Property Leasing Disposal Group Results (For the Six Months Ended June 30) | Metric | 2025 (HKD Thousand) | 2024 (HKD Thousand) | |---|---|---| | Revenue | 1,176 | 996 | | Profit after tax from discontinued operations | 639 | 389 | [8. (b) Disposal of Medical Device Sales Business](index=17&type=section&id=8.%20(b)%20%E5%87%BA%E5%94%AE%E9%86%AB%E7%99%82%E5%99%A8%E6%A2%B0%E9%8A%B7%E5%94%AE%E6%A5%AD%E5%8B%99) The Group completed the disposal of **90%** equity in Shanghai Youmitai Medical Technology Co., Ltd. for approximately **HKD 24,648 thousand** on **August 1, 2024**, classified as a discontinued operation Youmitai Results (For the Six Months Ended June 30, 2024) | Metric | 2024 (HKD Thousand) | |---|---| | Revenue | 3,328 | | Loss from discontinued operations for the period | (975) | [9. Dividends](index=18&type=section&id=9.%20%E8%82%A1%E6%81%AF) The Board does not recommend the payment of an interim dividend for the current period, consistent with the prior period - The Directors do not recommend the payment of an **interim dividend** for the interim period[30](index=30&type=chunk) [10. Earnings/(Loss) Per Share](index=18&type=section&id=10.%20%E6%AF%8F%E8%82%A1%E6%BA%A2%E5%88%A9%E2%88%95%EF%BC%88%E虧%E6%90%8D%EF%BC%89) Basic and diluted earnings per share significantly improved to **6.4 HK Cents**, compared to a loss of **0.6 HK Cents** in the prior period Earnings/(Loss) Per Share (For the Six Months Ended June 30) | Metric | 2025 (HKD Thousand/Thousand Shares/HKD) | 2024 (HKD Thousand/Thousand Shares/HKD) | |---|---|---| | Profit/(Loss) attributable to owners of the Company | 47,535 | (4,811) | | Weighted average number of ordinary shares in issue | 746,341 | 769,817 | | Earnings/(Loss) per share | 0.064 | (0.006) | [10. (a) Basic](index=18&type=section&id=10.%20(a)%20%E5%9F%BA%E6%9C%AC) Basic earnings per share, calculated using profit attributable to owners and weighted average ordinary shares, was **HKD 0.064** for the period - Basic earnings per share was **HKD 0.064**, compared to a loss per share of **HKD 0.006** in the prior period[32](index=32&type=chunk) [10. (b) Diluted](index=18&type=section&id=10.%20(b)%20%E6%攤%E8%96%84) Diluted earnings per share equals basic earnings per share as share options had no dilutive effect on loss per share - Diluted earnings per share for the period equals basic earnings per share as share options had **no dilutive effect**[33](index=33&type=chunk) [11. Trade Receivables](index=19&type=section&id=11.%20%E8%B2%A3%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) Total trade receivables increased by **48.6%** to **HKD 209