中 報 2025 | 目錄 | | --- | | | | 4 財務摘要 5 業務摘要 9 管理層討論及分析 28 企業管治╱其他資料 43 中期簡明綜合損益表 44 中期簡明綜合全面收益表 45 中期簡明綜合財務狀況表 47 中期簡明綜合權益變動表 48 中期簡明綜合現金流量表 50 中期簡明綜合財務資料附註 76 釋義 和鉑醫藥控股有限公司 中期報告2025 2 公司資料 董事會 執行董事 王勁松博士 （首席執行官）（主席） 戎一平博士 獨立非執行董事 陳維維女士 Robert Irwin Kamen博士 葉小平博士 Albert R. Collinson博士 審核委員會 陳維維女士 （主席） 葉小平博士 Albert R. Collinson博士 薪酬委員會 Albert R. Collinson博士 （主席） 葉小平博士 王勁松博士 提名委員會 王勁松博士 （主席） Robert Irwin Kamen博士 葉小平博士 陳維維女士 授權代表 王勁松博士 戎一平博士 聯席公司秘書 呂穎一先生 劉毅博士 （自二零二五年六月九日起獲委任） 高一帆女士 （自二零二五年五月二十六日起辭任） 開曼群島註冊辦事處 ...

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。 （於開曼群島註冊成立之有限公司） （股份代號：331） 截至 2 025 年 6 月 3 0 日止年度 全年業績 | | 財 | 務 摘 | 要 | | | | | --- | --- | --- | --- | --- | --- | --- | | 截至 6 月 30 日止年度 | | | | 2025 年 | 2024 年 | 變動 | | | | | | 百萬港元 | 百萬港元 | 百分比 | | 收入 | | | : | 8,159.9 | 8,447.9 | -3.4% | | 毛利 | | | : | 1,053.5 | 1,059.2 | -0.5% | | 本公司股東應佔溢利(i) | | | : | 453.2 | 501.1 | -9.6% | | 每股基本盈利 | | | : | 0.99 港元 | 1.09 港元 | -9.2% | 董事會建議就截至 2025 年 6 月 30 ...

Definitions [Definitions](index=3&type=section&id=%E9%87%8A%E4%B9%89) This section provides definitions of key terms used throughout the report Company Information [Board of Directors and Committees](index=6&type=section&id=%E8%91%A3%E4%BA%8B%E4%BC%9A%E5%8F%8A%E5%A7%94%E5%91%98%E4%BC%9A) This section lists the company's Board of Directors (executive, non-executive, independent non-executive directors) and the composition of the Audit, Remuneration, and Nomination Committees - Board members include **Dr. Huang Shiang** (Chairman and CEO), **Mr. Tu Zanbing**, **Ms. Chai Haijie** as executive directors; **Mr. Huang Ruijin**, **Mr. Peng Wei**, **Ms. Huang Lu** as non-executive directors; and **Dr. Yao Shanglong**, **Dr. Xia Xinping**, **Mr. Gu Huaming** as independent non-executive directors[11](index=11&type=chunk) - The Audit Committee Chairman is **Dr. Xia Xinping**, the Remuneration Committee Chairman is **Mr. Gu Huaming**, and the Nomination Committee Chairman is **Dr. Huang Shiang**[11](index=11&type=chunk) [Corporate Administrative Information](index=6&type=section&id=%E5%85%AC%E5%8F%B8%E8%A1%8C%E6%94%BF%E4%BF%A1%E6%81%AF) This section provides key administrative and contact information, including the company secretary, authorized representatives, legal advisors, auditors, registered office, principal place of business, website, share registrar, and principal bankers - The company secretary is **Ms. Chai Haijie** and **Ms. Li Meiyi** (resigned on August 29, 2025), and authorized representatives are **Ms. Chai Haijie** and **Mr. Tu Zanbing** (appointed on August 29, 2025)[11](index=11&type=chunk) - The auditor is **Ernst & Young**, and Hong Kong legal counsel is Jingtian & Gongcheng LLP[11](index=11&type=chunk) - The company's website is www.kindstar.com.cn, and stock code is **9960**[12](index=12&type=chunk) Business Review and Outlook [Specialized Diagnostic Testing Business Remains Robust](index=8&type=section&id=%E4%B8%93%E7%A7%91%E7%89%B9%E6%A3%80%E4%B8%9A%E5%8A%A1%E4%BF%9D%E6%8C%81%E7%A8%B3%E5%81%A5) In H1 2025, the company optimized operations, strengthened its market position in six core specialized diagnostic testing areas like hematology, neurology, and oncology, and expanded its business through technological innovation and strategic M&A - Hematology diagnostic testing services added over **90** new hospital clients, the pediatric hematology segment added **48** new partner hospitals, and NGS Ig/TCR rearrangement technology products sales grew over **50%**[14](index=14&type=chunk) - The neurology field added **34** new diagnostic projects, **44** new partner referral hospitals, and deepened cooperation with Southern Hospital[14](index=14&type=chunk) - In oncology, **15** new key partners were added, including Peking University Cancer Hospital, with solid tumor large panel testing and solid tumor MRD testing growing over **100%** year-on-year[15](index=15&type=chunk) - The acquisition of Kindstar Medical Guangzhou was completed in January 2025, establishing a comprehensive full-disease course diagnostic system covering solid tumor early screening, early diagnosis, recurrence monitoring, and companion diagnostics[15](index=15&type=chunk)[16](index=16&type=chunk) - **UriFind®** (urothelial carcinoma auxiliary diagnostic reagent kit) sales volume increased by approximately **82%** year-on-year in H1 2025[21](index=21&type=chunk) - The maternal and child specialty team was established to promote growth in pediatric endocrinology referral business[17](index=17&type=chunk) - In cardiovascular diagnostic testing, mass spectrometry platform R&D and testing capabilities improved, with **1** new Class I reagent filing for mass spectrometry testing and **1** new Class II in vitro diagnostic kit approved, and **3** clinical mass spectrometry laboratories co-built[17](index=17&type=chunk) [Scientific Research and Innovation Drive Industry Development](index=10&type=section&id=%E7%A7%91%E7%A0%94%E5%88%9B%E6%96%B0%E9%A9%B1%E5%8A%A8%E8%A1%8C%E4%B8%9A%E5%8F%91%E5%B1%95) In H1 2025, the company significantly increased R&D investment, achieving notable innovations including academic publications, numerous patent applications, and new diagnostic projects, particularly in CAR-T monitoring, leukemia MRD monitoring, and AI-integrated pathology diagnostics - In H1 2025, the Group's R&D department published **33** articles, filed **67** patent applications (**29** of which were authorized), and obtained **24** copyrights[18](index=18&type=chunk) - **56** new R&D diagnostic projects were added, covering molecular biology, flow cytometry, cytogenetics, and pathology diagnostic technologies[18](index=18&type=chunk) - Key developments include CAR-T monitoring and evaluation projects, acute myeloid leukemia MRD monitoring (detection limit improved to **0.1%**), fusion gene quantitative detection (NGS technology for **144** genes), and plans to integrate remote scanning and AI analysis to enhance comprehensive diagnostic capabilities[18](index=18&type=chunk) [Immunome Profiling Products Show Significant Potential](index=10&type=section&id=%E5%85%8D%E7%96%AB%E7%BB%84%E5%BA%93%E4%BA%A7%E5%93%81%E6%BD%9C%E5%8A%9B%E5%87%B8%E6%98%BE) The company's core immunome profiling product, 'LymphoTrack,' continues to expand in hematological malignancy MRD detection, showing significant revenue growth and international quality certification, while health monitoring and immune reconstitution products have deepened market collaborations - The core product **LymphoTrack** (used for hematological malignancy minimal residual disease detection) has covered over **160** institutions in **26** provinces, with revenue growing nearly **30%** compared to H1 2024[19](index=19&type=chunk) - Kindstar Biotech's Ig/TCR project achieved a perfect score in the EuroClonality EQA program, becoming the only laboratory in China to participate and pass with a perfect score[19](index=19&type=chunk) - Health monitoring product **Kangbeice** and immune reconstitution and monitoring product **Fantech** continue to deepen cooperation with renowned enterprises, institutions, and pharmaceutical companies[19](index=19&type=chunk) [Specialized Diagnostic Reagents](index=10&type=section&id=%E7%89%B9%E6%A3%80%E8%AF%95%E5%89%82) The company's specialized diagnostic reagent product line continues to expand, covering NGS capture, multiplex amplification, universal library preparation, single gene mutation, fusion gene, and transplantation series, with significant growth in proprietary product sales and progress in acquired IVD businesses, such as a substantial increase in UriFind® sales - Haixi Bio's product line has developed and transferred over **180** products, covering NGS capture-based, NGS multiplex amplification series, NGS universal library preparation series, single gene mutation detection series, fusion gene detection series, and transplantation series products[20](index=20&type=chunk) - The NGS reagent kits produced by Haixi Bio are compatible with an increasing number of sequencing platforms, and its **74** fusion gene screening projects are at a leading domestic level[20](index=20&type=chunk) - In H1 2025, the Group's proprietary specialized diagnostic reagent business sales increased by over **20%** compared to H1 2024[20](index=20&type=chunk) - **UriFind®** (the first domestically approved reagent kit for auxiliary diagnosis of urothelial carcinoma) completed procurement processes with **11** hospitals and **8** third-party clients, with reagent sales volume increasing by approximately **82%** year-on-year in H1 2024[21](index=21&type=chunk) - The blood-based non-invasive gastric cancer early detection product **Gastromia® (Wei Yijian)** has completed in vitro diagnostic reagent registration clinical research and entered the product registration application phase, with a negative accuracy rate of over **99%**[21](index=21&type=chunk) [Research Services and Contract Research Organization (CRO)](index=11&type=section&id=%E7%A7%91%E7%A0%94%E6%9C%8D%E5%8A%A1%E5%8F%8A%E5%90%88%E7%B4%84%E7%A0%94%E7%A9%B6%E7%B5%84%E7%B9%94%EF%BC%88%E3%80%8CCRO%E3%80%8D%EF%BC%89) Leveraging its R&D innovation and bioinformatics expertise, the company has become a multi-omics research service provider for leading domestic and international biological research institutions and pharmaceutical companies, achieving significant growth in research service revenue and actively expanding into overseas markets and new product lines - Since 2023, the company has been a multi-omics research service provider for domestic and international biological research institutions and pharmaceutical companies, operating **3** PacBio Revio platforms, with **2** serving the domestic market and **1** serving the overseas market[22](index=22&type=chunk) - Fully upgraded to the latest PacBio SPRQ reagents, single-cell output increased by up to **49%**, positioning its total delivery capacity and throughput among the top PacBio service providers nationwide[22](index=22&type=chunk) - The research services segment added nearly **100** new partner hospitals and enterprises in H1, achieving total revenue of nearly **RMB 20 million**[22](index=22&type=chunk) - Preliminary completion of overseas laboratory construction in New Zealand, and domestically, independently developed and

目錄 Contents | 02 公司簡介 | Corporate Profile | | --- | --- | | 03 公司資料 | Corporate Information | | 07 釋義 | Definitions | | 12 管理層討論及分析 | Management Discussion and Analysis | | 44 其他資料 | Other Information | | 56 獨立審閱報告 | Independent Review Report | | 58 簡明綜合損益表 | Condensed Consolidated Statement of Profit | | | or Loss | | 59 簡明綜合全面收益表 | Condensed Consolidated Statement of | | | Comprehensive Income | | 60 簡明綜合財務狀況表 | Condensed Consolidated Statement of | | | Financial Position | | 62 簡明綜合權益變動表 | Condensed Cons ...

| 024 | 公司業務概要 | | --- | --- | | 030 | | 公司治理 062 070 078 084 公司治理、環境和社會 重要事項 股份變動及股東情況 債券相關情況 財務報告及備查文件 目 錄 Contents 關於我們 | 004 | 重要提示 | | --- | --- | | 006 | 釋義 | | 010 | 公司簡介 | | 018 | 業績概覽 | 經營分析與戰略 | 106 | 中期審閱報告 | | --- | --- | | 194 | 備查文件目錄 | | 194 | 證券公司信息披露 | | 195 | 附錄：信息披露索引 | 管理層討論與分析 關於我們 ABOUT US 重要提示 釋義 公司簡介 業績概覽 004 006 010 018 重要提示 釋義 公司簡介 業績概覽 004 006 010 018 關於我們 ABOUT US HUATAI SECURITIES 重要提示 本公司董事會、監事會及董事、監事、高級管理人員保證中期報告內容的真實、準確、完整，不存 在虛假記載、誤導性陳述或重大遺漏，並承擔個別和連帶的法律責任。 未出席董事情況 | 未出席董事職務 ...

Financial Performance - For the six months ended June 30, 2025, the company reported revenue of RMB 743.0 million, a 3.3% increase from RMB 719.5 million in the same period last year[9]. - Adjusted gross profit for the same period was RMB 155.0 million, with an adjusted gross margin of 20.9%, down from 22.5% in the previous year[9][10]. - Adjusted net profit decreased to RMB 70.6 million, a decline of approximately 19.2% compared to RMB 87.3 million in the prior year[11]. - The company recorded a net profit of RMB 168.6 million, significantly up from RMB 23.6 million in the same period last year[10]. - The adjusted net profit margin for the first half of 2025 was 9.5%, down from 12.1% in the previous year[9]. - Adjusted operating profit was approximately RMB 102.5 million, down from RMB 123.0 million in the previous year, a decrease of about RMB 20.5 million attributed to reduced gross profit[16]. - The company reported a profit of RMB 168,620,000 for the six months ended June 30, 2025, compared to RMB 23,568,000 for the same period in 2024, representing a significant increase of 613%[93]. - Total comprehensive income for the period reached RMB 184,745,000, up from RMB 13,591,000 in the previous year, marking an increase of 1,262%[93]. Assets and Liabilities - As of June 30, 2025, total equity was approximately RMB 727.3 million, up from RMB 576.6 million as of December 31, 2024[17]. - Current assets were approximately RMB 1,019.7 million, a decrease of about RMB 79.4 million from RMB 1,099.1 million as of December 31, 2024, mainly due to a reduction in cash and cash equivalents[17]. - Current liabilities decreased significantly to approximately RMB 668.4 million from RMB 1,809.9 million as of December 31, 2024, primarily due to a reduction in convertible bonds[17]. - The company's cash and cash equivalents were approximately RMB 612.4 million as of June 30, 2025, down from RMB 714.1 million as of December 31, 2024[18]. - The total assets as of June 30, 2025, amounted to RMB 2,546,603 thousand, an increase from RMB 2,493,617 thousand as of June 30, 2024, showing a growth of about 2.1%[120][121]. - Total liabilities decreased to RMB 668,445,000 from RMB 1,809,925,000, a reduction of 63.0%[97]. - The net asset value increased to RMB 727,292,000 from RMB 576,623,000, representing an increase of 26.1%[97]. Shareholder Information - As of June 30, 2025, major shareholders hold significant stakes, with Hony Capital Fund V, L.P. owning 123,000,000 shares, representing approximately 89.01% of the company's issued shares[44]. - Hony Group Management Limited and its affiliates collectively hold 161,693,985 shares, accounting for about 117.01% of the company's issued shares[44]. - Liu Lu holds approximately 6.58% of the company's issued share capital through controlled entities[42]. - The company has a remaining share incentive plan authorization of 13,819,400 shares, equivalent to approximately 10% of the issued shares as of the report date[77]. Business Strategy and Operations - The company is focusing on enhancing its core competitiveness in the healthcare sector, particularly in the Yangtze River Delta region[11]. - The company is actively exploring innovative business models and increasing the application of new technologies such as artificial intelligence[11]. - The company aims to improve the quality of medical services while adapting to industry policy changes, including healthcare payment reforms[12]. - The company plans to continue expanding its market presence and investing in new product development to drive future growth[99]. Debt and Financing - The company has extended the maturity dates of convertible bonds with Yufeng Limited and Hony Capital Fund VIII to September 30, 2027, allowing for greater financial flexibility[13]. - The total principal amount of the convertible bonds issued to Hony Fund VIII is approximately HKD 773.9 million, with a similar extension of maturity to September 30, 2027[30]. - The company is focused on utilizing funds from the convertible bonds for future acquisitions and business expansion[46]. - The company has undergone several amendments to the terms of the convertible bonds, reflecting ongoing financial strategy adjustments[46]. Employee and Operational Costs - The total employee benefits expenditure for the six months ended June 30, 2025, was approximately RMB 244.0 million, compared to RMB 215.1 million for the same period in 2024[39]. - Employee costs for the six months ended June 30, 2025, were RMB 243,975 thousand, up from RMB 215,097 thousand in the same period last year, representing an increase of about 13.4%[125]. Regulatory and Compliance - The company is committed to regulatory compliance and standardized management practices in response to intensified market competition[12]. - The company has not used any derivative financial instruments to hedge foreign exchange risks and will consider appropriate hedging measures if necessary[34]. Dividends and Shareholder Returns - The company has decided not to declare any interim dividend for the six months ended June 30, 2025[38]. - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2025, consistent with the previous year[150]. Accounting and Reporting - The company adopted a new accounting policy to use Hong Kong dollars as its functional currency starting January 1, 2025, due to its operations being primarily denominated in HKD[110]. - The review report confirms that no matters were found that would indicate the interim financial report as of June 30, 2025, was not prepared in accordance with International Accounting Standard 34[163].

Financial Performance - Total revenue for the six months ended June 30, 2025, was RMB 829.4 million, an increase of 16.8% compared to RMB 710.4 million for the same period in 2024[12]. - The company recorded a loss of RMB 33.4 million for the six months ended June 30, 2025, a significant reduction of 81.4% from a loss of RMB 179.6 million in the same period of 2024[13]. - Adjusted net loss (non-IFRS) was RMB 28.6 million, down 28.1% from RMB 39.8 million in the prior year[14]. - Adjusted EBITDA (non-IFRS) loss was RMB 3.5 million, a 64.6% improvement from a loss of RMB 9.9 million in the previous year[14]. - Total comprehensive loss for the six months ended June 30, 2025, was RMB 198.6 million, compared to RMB 34.7 million for the same period in 2024, primarily due to changes in the fair value of convertible redeemable preferred shares[51]. Revenue Breakdown - AI-related revenue reached RMB 184.0 million, accounting for 22.2% of total revenue for the period[13]. - Total revenue from MPaaS products increased by 16.4% to RMB 591,412,000 for the six months ended June 30, 2025, driven by growth in QCDN, Kodo, and Dora[30]. - QCDN revenue reached RMB 375,772,000, accounting for 64% of total MPaaS revenue, compared to 68% in the previous year[29]. - APaaS revenue increased by 24.4% to RMB 221,895,000, primarily due to a significant rise in video marketing revenue[33]. - Total revenue from other services for the six months ended June 30, 2025, was RMB 16.1 million, accounting for approximately 1.9% of total revenue[37]. User and Market Insights - As of June 30, 2025, the registered developer user base exceeded 1.6 million[15]. - The number of users for AI large model services exceeded 10,000 by early August 2025, indicating strong market demand[26]. - AI inference computing in China is projected to grow at a compound annual growth rate of 190% from 2024 to 2028, with its scale expected to surpass training computing by 2028[26]. - The global AI audio and video application market is shifting towards commercial implementation, requiring low latency and high concurrency capabilities[25]. Cost and Expenses - Sales cost increased by 20.4% from RMB 558.0 million for the six months ended June 30, 2024, to RMB 671.9 million for the six months ended June 30, 2025, consistent with revenue growth[38]. - R&D expenses rose by 6.9% from RMB 70.7 million for the six months ended June 30, 2024, to RMB 75.6 million for the same period in 2025, driven by increased investment in APaaS and AI-related projects[42]. - Selling and marketing expenses decreased from RMB 56.0 million for the six months ended June 30, 2024, to RMB 49.9 million for the same period in 2025, due to ongoing cost control efforts[43]. - Administrative expenses decreased from RMB 57.0 million for the six months ended June 30, 2024, to RMB 45.0 million for the same period in 2025, reflecting continued cost management[45]. Assets and Liabilities - Non-current assets decreased by 6.4% to RMB 190.6 million from RMB 203.6 million as of December 31, 2024[12]. - Current assets decreased by 11.0% to RMB 888.4 million from RMB 998.7 million as of December 31, 2024[12]. - Current liabilities decreased by 11.9% to RMB 662.5 million from RMB 752.2 million as of December 31, 2024[12]. - Total equity attributable to owners of the parent decreased by 6.8% to RMB 405.7 million from RMB 435.5 million as of December 31, 2024[12]. - The company's debt-to-asset ratio as of June 30, 2025, was 62.4%[52]. Cash Flow and Investments - The net cash flow used in operating activities for the six months ended June 30, 2025, was RMB 89.5 million, primarily due to a pre-tax loss of RMB 33.3 million[54]. - The net cash flow used in investing activities for the same period was RMB 149.7 million, mainly from cash outflows related to fixed deposits[56]. - The net cash flow used in financing activities was RMB 5.6 million, reflecting cash inflows from new borrowings offset by repayments of lease liabilities and other borrowings[58]. - Total capital expenditures for the six months ended June 30, 2025, amounted to RMB 17.3 million[60]. Corporate Governance and Compliance - The company has complied with all applicable Chinese laws and regulations without facing any penalties or enforcement actions during the reporting period[81]. - The audit committee consists of three independent non-executive directors, ensuring compliance with listing rules regarding audit committee composition[94]. - The company has maintained high standards of corporate governance to protect shareholder interests[89]. Shareholder Information - As of June 30, 2025, the total number of issued shares of the company is 1,996,644,474 shares[2]. - The company did not declare any interim dividend for the six months ending June 30, 2025[93]. - The company has adopted a share incentive plan in August 2025 that does not involve issuing new shares[99]. - The company has adopted a pre-IPO share scheme to attract and retain top talent since January 14, 2013[110]. Stock Options and Incentives - The total number of stock options granted under the pre-IPO share option plan is 131,225,193, with 129,798,693 options remaining unexercised as of June 30, 2025[129]. - The maximum number of shares that may be granted or issued under the pre-IPO share option plan is capped at 18,107,143 shares, excluding the impact of capitalized issues[123]. - The exercise price for stock options granted to executives ranges from $0.015 to $0.3000, with the highest number of options (50,400,000) granted to the executive director Chen Yiling at an exercise price of $0.0459[129]. - The company has adopted a post-IPO share option plan approved by shareholders on September 25, 2024, effective from the listing date[131]. - The purpose of the post-IPO share option plan is to incentivize qualified participants for their contributions to the company and to retain outstanding employees[132].

目錄 (於開曼群島註冊成立的有限責任公司) 香港交易所：975 | OTCQX: MOGLF 中期報告 2025 蒙古國巴彥洪戈爾呼赫湖 概述 財務及營運回顧 治理 可持續性 財務報表 詞彙表 MMC | 中期報告 2025 1 | 概述 | 2 | | --- | --- | | 關於我們 | 3 | | 財務及營運回顧 | 5 | | 行業概覽 | 6 | | 經營環境 | 7 | | 二零二五年的展望及業務策略 | 9 | | 業務回顧 | 10 | | 財務回顧 | 19 | | 治理 | 25 | | 可持續性 | 29 | | 財務報表 | 31 | | 獨立審閱報告 | 32 | | 綜合損益表－未經審核 | 33 | | 綜合損益及其他全面收益表－未經審核 | 33 | | 綜合財務狀況表－未經審核 | 34 | | 綜合權益變動表－未經審核 | 35 | | 簡明綜合現金流量表－未經審核 | 36 | | 未經審核中期財務報告附註 | 37 | | 詞彙表 | 47 | 概述 財務及營運回顧 治理 可持續性 財務報表 詞彙表 MMC | 中期報告 2025 2 概述 概述 財務及營運回顧 治 ...

Company Information [Board of Directors and Committees](index=3&type=section&id=Board%20of%20Directors%20and%20Committees) This section lists the company's board members and their roles in the audit, remuneration, and nomination committees, including executive directors, independent non-executive directors, and committee chairpersons - The Board of Directors comprises executive directors Feng Changge (Chairman), Feng Shaolun (Vice Chairman), Liu Fenglei (President), Ma Lintao (Vice President), Cheng Junqiang (Vice President), and independent non-executive directors Wang Nengguang, Liu Guoxun, and Song Jiaheng[3](index=3&type=chunk) - The Audit Committee Chairman is Mr. Wang Nengguang, the Remuneration Committee Chairman is Mr. Song Jiaheng, and the Nomination Committee Chairman is Mr. Feng Changge[3](index=3&type=chunk) [Company Contact and Registration Information](index=3&type=section&id=Company%20Contact%20and%20Registration%20Information) This section provides the company's legal counsel, auditor, principal bankers, registered office, principal place of business, and share registrar information - The Company Secretary is Ms. Wong Wai Yee, and authorized representatives are Mr. Liu Fenglei and Ms. Wong Wai Yee[3](index=3&type=chunk) - The legal counsel is Haiwen & Partners, and the auditor is Beijing Xinghua Dingfeng Certified Public Accountants Co., Ltd[3](index=3&type=chunk) - The company's stock code is **3836**, and its website is www.hexieauto.com[4](index=4&type=chunk) Management Discussion and Analysis [Industry Overview and Outlook](index=5&type=section&id=Industry%20Overview%20and%20Outlook) In the first half of 2025, China's passenger vehicle retail sales increased by 10.8% year-on-year, with new energy vehicle sales growing by 33.3%; the luxury car market faced challenges, experiencing an 11.8% year-on-year decline in sales, while Chinese new energy vehicle brands demonstrated exceptional export performance, growing by 48.0% Overview of China's Passenger Vehicle Market in H1 2025 | Metric | H1 2025 | Y-o-Y Growth | | :--- | :--- | :--- | | Passenger Vehicle Retail Sales | approx. 10.9 million units | 10.8% | | Cumulative NEV Sales | 5.5 million units | 33.3% | - The luxury car market's cumulative sales in H1 2025 were approximately **1.2 million units**, a **11.8% decrease** compared to the same period last year[7](index=7&type=chunk) - China's new energy vehicle exports significantly increased by **48.0%** year-on-year, with BYD's exports growing by **1.3 times**[8](index=8&type=chunk) - Fiscal policies, such as trade-in subsidies and NEV purchase tax incentives, are expected to continue boosting market demand[8](index=8&type=chunk) [Business Review and Outlook](index=6&type=section&id=Business%20Review%20and%20Outlook) In the first half of 2025, the Group achieved a significant 60.6% increase in total sales, driven by strategic overseas market expansion and successful implementation of the '1+2' operating strategy in the domestic market, which also delivered stable operating net profit through focused brand and regional advantages, enhanced synergy, and refined management - Total sales reached **30,666 units** in H1 2025, a significant **60.6% year-on-year increase**[9](index=9&type=chunk) - Sales in Hong Kong and overseas markets reached **15,725 units**, accounting for **51.3%** of total sales and becoming the primary growth driver[9](index=9&type=chunk) - Excluding non-recurring losses of **RMB 32.5 million** related to store closures, adjusted net profit was **RMB 20.7 million**, representing a significant turnaround[9](index=9&type=chunk) [Mainland China Market](index=6&type=section&id=Mainland%20China%20Market) The Mainland China market achieved stable operating net profit through a '1+2' operating strategy (focusing on performance profitability, advantageous brands and regions, and efficient quality) and prudent M&A development; the Group enhanced business synergy, optimized sales pace and model structure, and improved after-sales service gross margin and overall operational efficiency through deep customer demand analysis and refined management - Adjusted operating net profit for the Mainland China market (excluding non-recurring losses related to store closures) was approximately **RMB 17.9 million**[10](index=10&type=chunk) - Adhering to the '1+2' operating strategy, focusing on 3 ultra-luxury brands (Bentley, Rolls-Royce, Ferrari) and 2 luxury brands (BMW, Lexus)[10](index=10&type=chunk) - In H1 2025, the comprehensive gross margin for after-sales services increased from **38.3%** in the same period last year to **39.2%**, a year-on-year increase of approximately **1 percentage point**[12](index=12&type=chunk) - Added **3 Denza brand experience showrooms** to capitalize on the growth opportunities in China's electric vehicle market[13](index=13&type=chunk) [Hong Kong and Overseas Markets](index=8&type=section&id=Hong%20Kong%20and%20Overseas%20Markets) The Group's international new energy vehicle market strategy is showing initial results, establishing a global strategic partnership with BYD, operating 40 4S centers, 36 showrooms, and 6 service centers across Asia-Pacific, Europe, and Africa, with 29 new outlets added in the first half; BYD sales lead in Hong Kong, while Indonesia, Cambodia, and the Philippines markets show significant sales growth, all adopting a 'low-cost, high-efficiency' operating model - Established a global strategic partnership with BYD Company, a leading Chinese automobile manufacturer, for distribution and after-sales services[14](index=14&type=chunk) - As of June 30, 2025, operating **40 4S centers**, **36 showrooms**, and **6 service centers** in Asia, Europe, and Africa, with a total of **29 new outlets** added in the first half[14](index=14&type=chunk) Sales Performance in Hong Kong and Overseas Markets (H1 2025) | Market | Sales (units) | Y-o-Y Growth | | :--- | :--- | :--- | | Hong Kong (BYD) | 4,762 | - | | Indonesia | 2,538 | 226% | | Cambodia | 1,610 | 444% | | Philippines | 1,767 | 89% | - Overseas regions adopt a 'low-cost, high-efficiency' operating model, with lower single-store investment and fewer employees than traditional 4S stores in China[14](index=14&type=chunk) [Future Outlook](index=8&type=section&id=Future%20Outlook) The Group's future systematic deployment will focus on 'framework building, coverage expansion, foundation establishment, refinement, breadth expansion, and deep impact,' aiming to complete global network layout, increase core market density, build localized management and profitability systems, strengthen refined operations, expand NEV-related businesses, and continuously enhance core competitiveness to become the world's largest NEV dealer group - Future plans include rapidly advancing new market development in the Middle East, Africa, and Americas, based on Asia-Pacific and Europe, to complete the global network framework layout[16](index=16&type=chunk) - Continuously building local-demand-oriented management foundations and profitability systems, including talent management, business process standards, used car market business improvement, and integration of derivative business resources like insurance and finance[16](index=16&type=chunk) - Expanding NEV-related businesses such as energy storage, charging solutions, battery repair and recycling, zero-carbon parks, and supporting facilities[16](index=16&type=chunk) - Committed to becoming the world's largest new energy vehicle dealer group[16](index=16&type=chunk) [Financial Review](index=9&type=section&id=Financial%20Review) In the first half of 2025, the Group's total revenue increased by 29.1% to RMB 9,636.6 million, primarily driven by significant growth in automobile and other sales, especially strong performance in Hong Kong and overseas markets; despite a 52.8% increase in gross profit, the period still recorded a loss due to increased selling and distribution expenses and administrative expenses, though the loss significantly narrowed year-on-year - Total revenue for H1 2025 was **RMB 9,636.6 million**, a **29.1% increase** from H1 2024[18](index=18&type=chunk) - Gross profit increased by **52.8%** from **RMB 366.3 million** in H1 2024 to **RMB 559.8 million**, with gross margin improving from **4.9%** to **5.8%**[23](index=23&type=chunk) - Loss attributable to owners of the Company decreased to **RMB 11.8 million**, compared to a loss of **RMB 76.3 million** in H1 2024[31](index=31&type=chunk) [Revenue Analysis](index=9&type=section&id=Revenue%20Analysis) The Group's total revenue in H1 2025 increased by 29.1% to RMB 9,636.6 million; automobile and other sales revenue grew significantly by 36.7%, accounting for 89.0% of total revenue, primarily due to international sales network expansion, while after-sales service and finance lease service revenues decreased; geographically, Hong Kong and overseas revenue surged 5.0 times, comprising 40.5% of total revenue, whereas Mainland China revenue declined by 15.8% Revenue by Type of Goods or Services (RMB million) | Revenue Source | H1 2025 | H1 2024 | Y-o-Y Change | Share of Total Revenue (2025) | | :--- | :--- | :--- | :--- | :--- | | Automobile and Other Sales | 8,577.4 | 6,273.6 | +36.7% | 89.0% | | After-sales Services | 1,044.7 | 1,170.5 | -10.7% | 10.8% | | Finance Lease Services | 14.5 | 22.1 | -34.4% | 0.2% | Revenue by

Financial Performance - Revenue for the six months ended June 30, 2025, was RMB 640,165,000, a decrease of 11.1% compared to RMB 720,643,000 in 2024[15] - Gross profit for the same period was RMB 381,867,000, down 9.1% from RMB 419,946,000 in 2024[15] - The company reported a loss before income tax of RMB 134,713,000, compared to a profit of RMB 68,897,000 in the previous year[15] - The loss for the period attributable to owners of the company was RMB 141,978,000, contrasting with a profit of RMB 52,414,000 in 2024[15] - Basic and diluted loss per share was RMB (6.84) cents, compared to earnings of RMB 2.52 cents per share in 2024[15] - The Group reported a loss of RMB 141.8 million for the period, compared to a profit of RMB 52.4 million for the same period in 2024, primarily due to impairment losses related to trade debts and decreased revenue from the fashion footwear business[34] - For the six months ended June 30, 2025, the Group's total revenue was RMB 640.2 million, a decrease of 11.2% compared to RMB 720.6 million in the same period last year[34] - The net loss for the period was RMB 141,800,000, compared to a profit of RMB 52,594,000 in the same period last year[181] - Total comprehensive expenses for the period amounted to RMB 149,379,000, compared to a comprehensive income of RMB 44,217,000 in 2024[181] Economic Context - China's GDP in the first half of 2025 reached RMB 66,053.6 billion, representing a year-on-year increase of 5.3%[22] - Total retail sales of consumer goods in China were RMB 2,454.58 billion from January to June 2025, reflecting a year-on-year increase of 5.0%[27] - The World Bank has lowered its forecast for global economic growth in 2025 to 2.3% due to geopolitical tensions and trade protectionism[20] - Global economic growth is projected to slow to 2.3% in the second half of 2025, marking a significant downward revision due to rising trade barriers and policy uncertainty[90] - In China, consumption growth is expected to remain weak amid declining confidence and a sluggish real estate sector[94] Retail Strategy and Operations - As of June 30, 2025, the total number of retail outlets was 968, representing a net decrease of 47 outlets since the beginning of the year[35] - The number of proprietary shoe retail outlets was 790, a net decrease of 44 outlets since the beginning of the year[35] - The Group's strategy includes optimizing channel structure and improving single-store performance to enhance operational efficiency in its offline retail network[40] - The offline sales strategy will focus on closing underperforming department stores while maintaining overall retail business stability[41] - The Group continues to optimize its retail network, focusing on improving single-store operational efficiency and maintaining stable store numbers in outlet and shopping center channels[44] - During the reporting period, the Group implemented a "consolidation and transformation" strategy, closing underperforming department stores while retaining high-efficiency stores in core business circles[45] - The Group aims to enhance same-store sales growth and reduce operational costs by concentrating resources on channels with higher growth potential[45] Supply Chain and Inventory Management - In the first half of 2025, the Group optimized inventory management by strictly controlling first order quantities to mitigate inventory backlog risks, maintaining industry-leading inventory turnover efficiency[49] - The Group established a flexible supply chain system, shortening production and replenishment cycles, and improving supply-demand matching efficiency[50] - Future plans include promoting digital upgrades in the supply chain and exploring pre-sale and on-demand production models to further reduce inventory risks[54] Product Development and Innovation - C.banner's brand matrix includes multiple self-owned brands, with a focus on expanding into fashion leisure and sports categories, which account for 60% to 70% of the product line[55][56] - The company will deepen its "hit style strategy" in the second half of 2025, enhancing market competitiveness through innovative designs while maintaining core product quality[57] - Continuous technological innovation and process upgrades are identified as core driving forces for maintaining brand vitality[57] - C.banner has established a closed-loop system of "fast design-trial production-feedback," achieving a 40% reduction in new product development cycles and a 35% increase in product sales through big data analysis[60] - The introduction of 3D digital sample technology has reduced traditional prototyping cost waste by 60%[60] - C.banner aims to expand scenario-based product lines for various life scenarios, including workplace commuting and social leisure[61] - The company focuses on a dual-track product matrix of "classic + limited edition" to maintain brand identity and market enthusiasm[61] Market Positioning and Customer Engagement - C.banner's sports and leisure shoes have become mainstream, appealing to urban consumers aged 18 to 45, who prioritize comfort and individual expression[62] - The company emphasizes a customer-centric shopping experience, featuring professional shopping guides and a family-friendly store design[68] - The company is implementing a dual-market strategy by exploring European and American orders alongside established domestic sales, enhancing product quality and flexibility in production[77] - C.banner is enhancing its omni-channel integration strategy, optimizing operations on platforms like Youzan Mall and increasing content marketing efforts on Douyin and Xiaohongshu[83] - The company has built a three-dimensional live broadcast system to improve user participation and integrate offline services with online shopping[82] - C.banner aims to deepen its presence in the Chinese market, focusing on strategic expansion and enhanced customer experience to unlock further growth opportunities[74] Financial Position and Cash Flow - As of June 30, 2025, the Group had bank balances and cash of RMB483.4 million, an increase from RMB429.7 million as of December 31, 2024[116] - Net cash generated from operating activities was RMB76.6 million, an increase of RMB49.9 million compared to RMB26.7 million in the same period last year[116] - The net current assets of the Group decreased by 21.8% to RMB672.8 million as of June 30, 2025, down from RMB859.9 million as of December 31, 2024[118] - The Group recorded a currency exchange gain of RMB 0.3 million for the six months ended June 30, 2025, compared to a loss of RMB 1.8 million in the same period of the previous year[127] - The Group's gearing ratio was 0.0% as of both December 31, 2024, and June 30, 2025, indicating no debt relative to total assets[129] Corporate Governance and Compliance - The company has adhered to all applicable corporate governance codes as of June 30, 2025[152] - The audit committee has reviewed the accounting principles and policies adopted by the group for the six months ended June 30, 2025[154] - The Group has adopted all new and revised IFRS Accounting Standards effective from January 1, 2025, with no significant changes to accounting policies[197] - The Company has not yet applied new IFRS Accounting Standards that are issued but not effective, and is assessing their potential impact[198]