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產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 （於中華人民共和國註冊成立之股份有限公司） 股份代號：2318（港幣櫃台）及82318（人民幣櫃台） （債券證券代號：5131） 截至2025年6月30日止6個月的未經審計業績公告 中國平安保險（集團）股份有限公司（「平安」或「本公司」）董事會（「董事會」）謹此 宣佈本公司及附屬公司截至2025年6月30日止6個月的未經審計業績公告。本公告 刊載本公司2025年中期報告全文，並符合香港聯合交易所有限公司證券上市規則 中有關中期業績初步公告附載的資料之要求。 本業績公告的中英文版本可在本公司網站( www.pingan.cn )和香港交易及結算所有 限公司（「香港交易所」）網站( www.hkexnews.hk )查閱，本業績公告乃根據國際財 務報告準則編製。本公司2025中期報告預計將於2025年9月下旬前發出予本公司 H股股東，並可於其時在香港交易所的網站( www.hkexnews.hk )及本公司 ...

江西金力永磁科技股份有限公司 JL MAG RARE-EARTH CO., LTD. 股份代號 : 06680 2024H1 247.0 107.0 現金分紅 (已付息) 2025H1 （擬宣派） 單位：人民幣百萬元 中 期 報 告 2025 目 錄 | 2 公司亮點 | | --- | | 3 釋義 | | 8 公司資料 | | 10 財務資料摘要 | | 管理層討論與分析 11 | | 企業管治及其他資料 29 | | 57 獨立審閱報告 | | 58 中期簡明合併損益表 | | 59 中期簡明合併綜合收益表 | | 60 中期簡明合併財務狀況表 | | 62 中期簡明合併權益變動表 | | 64 中期簡明合併現金流量表 | | 中期簡明合併財務報表附註 66 | 2 江西金力永磁科技股份有限公司 公司亮點 公司營收穩增，毛利與淨利共振提升 2024H1 2025H1 29.04 32.26 11.08% 8.66% 16.39% 7.73 ppt 119.7 305.0 2024H1 2025H1 2024H1 2025H1 154.80% 單位：人民幣億元 單位：人民幣百萬元 主營業務收入穩步提升 毛 ...

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。 WUHAN YZY BIOPHARMA CO., LTD. 武漢友芝友生物製藥股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：2496） 截至2025年6月30日止六個月的中期業績公告 武漢友芝友生物製藥股份有限公司（「本公司」，連同其附屬公司，「本集團」）的董 事（「董事」）會（「董事會」）欣然宣佈本集團截至2025年6月30日止六個月（「報告 期」）的未經審計綜合中期業績，連同截至2024年6月30日止六個月（「同期」）的比 較數字。 於本公告中，「我們」及「我們的」指本公司及（如文義另有所指）本集團。本公告 所載若干金額及百分比數字已進行約整或約整至小數點後一位或兩位（如適用）。 任何表格、圖表或其他地方所列總額及數額總和的任何差異乃由於四捨五入所致。 1 財務摘要 | | 截至6月30日止六個月 | | | --- | --- | --- | | | 2025年 | 202 ...

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。 NONGFU SPRING CO., LTD. 農夫山泉股份有限公司 （於 中 華 人 民 共 和 國 註 冊 成 立 的 股 份 有 限 公 司） （股 份 代 號：9633） 2025年中期業績公告 2025年中期業績摘要 農夫山泉股份有限公司（「本公司」或「農夫山泉」）董事會（「董事會」）欣然公佈本 公司及其附屬公司（合 稱「本集團」或「我 們」）截 至2025年6月30日止六個月（「報 告 期」）的按國際財務報告準則（「國際財務報告準則」）編製的未經審核中期業績 （「業績公告」），連 同2024年 同 期 的 比 較 數 字。 – 1 – – 2 – 中期簡明綜合全面收益表 截 至2025年6月30日止六個月 | 2025年 | | 年 | | --- | --- | --- | | 人民幣千元 | 2024 人民幣千元 | | （未 經 ...

[Financial Highlights](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%A6%82%E8%A6%81) Revenue grew, but loss expanded significantly due to financial liability fair value changes; adjusted profit and cash balances increased Financial Highlights for the Six Months Ended June 30, 2025 | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Period-on-Period Change | | :--- | :--- | :--- | :--- | | Revenue | 1,228,934 | 999,826 | 22.9% | | Research and Development Expenses | (349,387) | (377,579) | -7.5% | | Loss for the Period | (2,073,865) | (293,438) | 606.7% | | Adjusted Profit for the Period | 145,920 | 127,831 | 14.2% | | **Balance Sheet (Period-end):** | | | | | Cash and Bank Balances | 3,746,792 | 1,435,827 | 161.0% | | Total Equity / (Loss) | 2,912,761 | (2,021,899) | 244.1% | - Loss for the period significantly increased by **606.7%**, primarily due to fair value changes of financial liabilities measured at fair value through profit or loss, mainly from fair value adjustments of pre-global offering preferred shares[4](index=4&type=chunk)[7](index=7&type=chunk) [Business Summary](index=2&type=section&id=%E6%A5%AD%E5%8B%99%E6%91%98%E8%A6%81) The company achieved significant pipeline and operational progress in H1 2025, enrolling over 2,600 patients, half from outside China [Pipeline Progress](index=2&type=section&id=%E7%AE%A1%E7%B7%9A%E9%80%B2%E5%B1%95) Core and key ADC candidates achieved significant clinical milestones, including FDA Fast Track designation and positive ASCO/AACR data - Next-generation HER3-targeting ADC DB-1310 received FDA Fast Track designation for specific advanced non-small cell lung cancer patients[8](index=8&type=chunk) - First patient dosed in the Phase 1 clinical study of novel EGFR/HER3 BsADC DB-1418/AVZO-1418, with FDA IND approval obtained in June 2025[8](index=8&type=chunk) - At the 2025 ASCO Annual Meeting, DB-1310 (HER3 ADC) showed an unconfirmed ORR of **43.5%** and DCR of **91.3%** in EGFRm NSCLC patients; DB-1311/BNT324 (B7-H3 ADC) confirmed ORR of **30.8%** and DCR of **90.4%** in CRPC patients[8](index=8&type=chunk) - At the 2025 AACR Annual Meeting, initial clinical data for BNT327 (PD-L1xVEGF bsAb) in combination with DB-1305 showed controllable safety and early signs of anti-tumor activity[8](index=8&type=chunk) [Collaboration with BioNTech on ADC and Immunotherapy Combination Treatments](index=3&type=section&id=%E8%88%87BioNTech%E5%90%88%E4%BD%9C%E6%8E%A8%E9%80%B2ADC%E8%88%87%E5%85%8D%E7%96%AB%E7%99%82%E6%B3%95%E8%81%AF%E5%90%88%E6%B2%BB%E7%99%82) The company collaborates with BioNTech SE to explore combination therapies for solid tumors, initiating multiple clinical trials - First patient dosed in the Phase 1/2 clinical trial of DB-1303/BNT323 combined with BNT327 for advanced/metastatic breast cancer[11](index=11&type=chunk) - First patient dosed in the Phase 1/2 clinical trial of DB-1311/BNT324 combined with BNT327 for advanced lung cancer[11](index=11&type=chunk) - First patient dosed in the Phase 2 clinical trial of DB-1311/BNT324 combined with BNT327 or DB-1305/BNT325 for advanced solid tumors[11](index=11&type=chunk) [Condensed Consolidated Financial Statements](index=4&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section provides the unaudited condensed consolidated financial statements and detailed notes for H1 2025, offering a comprehensive financial overview [Condensed Consolidated Statement of Comprehensive Income](index=4&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) Revenue grew, but loss significantly increased due to fair value changes of financial liabilities Key Data from Condensed Consolidated Statement of Comprehensive Income | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 1,228,934 | 999,826 | | Cost of Sales | (639,534) | (431,621) | | Gross Profit | 589,400 | 568,205 | | Research and Development Expenses | (349,387) | (377,579) | | Administrative Expenses | (125,548) | (73,276) | | Operating Profit | 107,028 | 127,237 | | Fair Value Changes of Financial Liabilities at Fair Value Through Profit or Loss | (2,219,785) | (421,269) | | Loss for the Period | (2,073,865) | (293,438) | | Basic and Diluted Loss Per Share (RMB) | (49.7) | (36.7) | [Condensed Consolidated Statement of Financial Position](index=5&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E8%A1%A8) Total assets increased, with cash and cash equivalents significantly up, while fair value financial liabilities decreased Key Data from Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Total Assets | 4,177,030 | 2,090,222 | | Cash and Cash Equivalents | 2,994,180 | 1,208,906 | | Trade Receivables | 288,277 | 379,021 | | Total Equity / (Loss) | 2,912,761 | (2,021,899) | | Financial Liabilities at Fair Value Through Profit or Loss | 509 | 3,046,784 | | Total Liabilities | 1,264,269 | 4,112,121 | - The company's total equity turned from a loss at the end of 2024 to a positive value as of June 30, 2025, primarily due to the global offering and conversion of preferred shares into ordinary shares[13](index=13&type=chunk)[50](index=50&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=7&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) This section provides detailed notes covering general information, accounting policies, segment data, expenses, taxation, loss per share, and post-balance sheet events [1. General Information](index=7&type=section&id=1.%20%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) InnoCare Bio was incorporated in the Cayman Islands on July 3, 2019, and listed on the Main Board of the HKEX on April 15, 2025, raising funds through a global offering; the Group is a global clinical-stage biopharmaceutical company focused on next-generation antibody-drug conjugate (ADC) therapies - The company was listed on the Main Board of the Stock Exchange of Hong Kong on April 15, 2025, raising total proceeds of **RMB 1,524,008 thousand** through a global offering, with an additional **RMB 228,145 thousand** raised on May 9, 2025, from the exercise of the over-allotment option[15](index=15&type=chunk) - The Group is a global clinical-stage biopharmaceutical company primarily engaged in the discovery and development of next-generation antibody-drug conjugate therapies in China and the United States[16](index=16&type=chunk) [2. Basis of Preparation](index=7&type=section&id=2.%20%E6%93%AC%E5%82%99%E5%9F%BA%E6%BA%96) The unaudited interim condensed consolidated financial statements for the six months ended June 30, 2025, are prepared in accordance with HKAS 34 Interim Financial Reporting and the Listing Rules, and should be read in conjunction with the audited annual financial statements for the year ended December 31, 2024 - The interim condensed consolidated financial statements are prepared in accordance with HKAS 34 and the Listing Rules, and do not include all information required for annual financial statements[17](index=17&type=chunk) [3. Changes in Accounting Policies](index=7&type=section&id=3.%20%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96%E8%AE%8A%E5%8B%95) The revised Hong Kong Financial Reporting Standards adopted for the first time in this interim period have no significant impact on the Group's financial position, performance, or disclosures - The application of new and revised HKFRSs (such as HKAS 21 (Amendment) Lack of Exchangeability) in this interim period has no significant impact on the Group's financial position and performance[18](index=18&type=chunk)[19](index=19&type=chunk) [4. Segment and Revenue Information](index=8&type=section&id=4.%20%E5%88%86%E9%83%A8%E5%8F%8A%E6%94%B6%E5%85%A5%E8%B3%87%E6%96%99) The company primarily engages in new drug research and development, with management reviewing business results as a single operating segment; revenue mainly derives from licensing and collaboration agreements, including upfront payments, R&D cost reimbursements, milestone payments, and royalties - The Group has only one operating segment, which is new drug research and development[21](index=21&type=chunk) - Revenue primarily comes from licensing and collaboration agreements, including non-refundable upfront payments, reimbursement of R&D costs incurred, and variable consideration (milestone payments and royalties)[22](index=22&type=chunk) Revenue Breakdown by Type | Revenue Type | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Licensing and Collaboration Agreement Revenue | 1,227,245 | 998,315 | | Others | 1,689 | 1,511 | | **Total** | **1,228,934** | **999,826** | [5. Expenses by Nature](index=8&type=section&id=5.%20%E6%8C%89%E6%80%A7%E8%B3%AA%E5%8A%83%E5%88%86%E7%9A%84%E9%96%8B%E6%94%AF) For the six months ended June 30, 2025, total expenses increased to RMB 1,114,469 thousand from RMB 882,476 thousand in the prior period, primarily driven by technical service expenses and employee benefit expenses Breakdown of Expenses by Nature | Expense Type | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Technical Service Expenses | 823,200 | 638,909 | | Employee Benefit Expenses | 198,968 | 193,549 | | Listing Expenses | 36,043 | – | | Professional Service Fees | 13,098 | 11,532 | | Depreciation and Amortization | 5,672 | 3,370 | | Impairment of Intangible Assets | – | 21,350 | | **Total** | **1,114,469** | **882,476** | [6. Employee Benefit Expenses](index=9&type=section&id=6.%20%E5%83%B1%E5%93%A1%E7%A6%8F%E5%88%A9%E9%96%8B%E6%94%AF) For the six months ended June 30, 2025, total employee benefit expenses were RMB 198,968 thousand, slightly higher than RMB 193,549 thousand in the prior period, mainly comprising wages, salaries, and bonuses Breakdown of Employee Benefit Expenses | Expense Type | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Wages, Salaries and Bonuses | 98,602 | 53,821 | | Share-based Payment Expenses | 87,727 | 131,718 | | Social Insurance | 12,080 | 7,730 | | Other Employee Benefits | 559 | 280 | | **Total** | **198,968** | **193,549** | - The company's employees participate in government-sponsored defined contribution retirement schemes and other social insurance plans, with monthly contributions made[27](index=27&type=chunk) [7. Other Income](index=9&type=section&id=7.%20%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) For the six months ended June 30, 2025, other income decreased to RMB 1,092 thousand from RMB 1,703 thousand in the prior period, primarily due to reduced government grants Breakdown of Other Income | Income Type | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Government Grants | 713 | 1,498 | | Others | 379 | 205 | | **Total** | **1,092** | **1,703** | [8. Other (Losses) / Gains, Net](index=9&type=section&id=8.%20%E5%85%B6%E4%BB%96%EF%BC%88%E8%99%A7%E6%90%8D%EF%BC%89%E2%88%95%E6%94%B6%E7%9B%8A%E6%B7%A8%E5%80%BC) For the six months ended June 30, 2025, the company recorded other net losses of RMB 8,529 thousand, compared to net gains of RMB 8,184 thousand in the prior period, mainly due to exchange losses Breakdown of Other (Losses) / Gains, Net | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Net Exchange (Losses) / Gains | (9,864) | 7,336 | | Others | 1,335 | 848 | | **Total** | **(8,529)** | **8,184** | [9. Finance Income and Costs](index=10&type=section&id=9.%20%E8%B2%A1%E5%8B%99%E6%94%B6%E5%85%A5%E5%8F%8A%E6%88%90%E6%9C%AC) For the six months ended June 30, 2025, net finance income was RMB 38,892 thousand, primarily from bank deposit interest income, while finance costs mainly comprised interest expenses on lease liabilities and discounted notes Breakdown of Finance Income and Costs | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Finance Income from Bank Deposits | 39,465 | 26,316 | | Interest Expense on Lease Liabilities | (104) | (132) | | Interest Expense on Discounted Notes | (469) | – | | **Net Finance Income** | **38,892** | **26,184** | [10. Income Tax Expense](index=10&type=section&id=10.%20%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) The company applies different income tax rates across jurisdictions, including Cayman Islands exemption, Hong Kong profits tax, US federal and state income taxes, and PRC enterprise income tax incentives; for the six months ended June 30, 2025, income tax expense decreased to zero, mainly due to no withholding tax on current period revenue - Cayman Islands companies are exempt from income tax; Hong Kong subsidiaries are subject to a two-tiered profits tax rate, but have no estimated assessable profits[32](index=32&type=chunk)[33](index=33&type=chunk) - US subsidiaries are subject to **21%** federal income tax and state/local income taxes; PRC subsidiaries enjoy enterprise income tax incentives based on High and New Technology Enterprise status and technology transfer income[34](index=34&type=chunk)[35](index=35&type=chunk)[36](index=36&type=chunk) Income Tax Expense | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Income Tax Expense | – | 25,590 | [11. Loss Per Share](index=11&type=section&id=11.%20%E6%AF%8F%E8%82%A1%E8%99%A7%E6%90%8D) For the six months ended June 30, 2025, basic loss per share expanded to RMB 49.7 from RMB 36.7 in the prior period; diluted loss per share is the same as basic loss per share as potential dilutive ordinary shares (share options and convertible preferred shares) were anti-dilutive due to the loss incurred Calculation of Basic Loss Per Share | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Loss Attributable to Ordinary Equity Holders of the Company (RMB thousands) | (2,073,865) | (293,438) | | Weighted Average Number of Ordinary Shares in Issue (thousands) | 41,704 | 8,000 | | Basic Loss Per Share (RMB) | (49.7) | (36.7) | - Due to the Group's loss for the period, potential ordinary shares (share options and convertible preferred shares) had an anti-dilutive effect, thus diluted loss per share is the same as basic loss per share[43](index=43&type=chunk)[44](index=44&type=chunk) [12. Trade Receivables](index=12&type=section&id=12.%20%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of June 30, 2025, net trade receivables decreased to RMB 288,277 thousand from RMB 379,021 thousand as of December 31, 2024, primarily due to a reduction in uncollected amounts; customers typically have credit terms of 12 to 45 days Net Trade Receivables | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade Receivables - Net | 288,277 | 379,021 | Ageing Analysis of Trade Receivables (Based on Invoice Date) | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 30 days | 288,277 | 377,783 | | 31 to 60 days | – | 1,238 | | **Total** | **288,277** | **379,021** | [13. Financial Liabilities at Fair Value Through Profit or Loss](index=12&type=section&id=13.%20%E4%BB%A5%E5%85%AC%E5%85%81%E5%83%B9%E5%80%BC%E8%A8%88%E9%87%8F%E4%B8%94%E5%85%B6%E8%AE%8A%E5%8B%95%E8%A8%88%E5%85%A5%E7%95%B6%E6%9C%9F%E6%90%8D%E7%9B%8A%E7%9A%84%E9%87%91%E8%9E%8D%E8%B2%A0%E5%82%B5) As of June 30, 2025, financial liabilities measured at fair value significantly decreased to RMB 509 thousand, primarily due to the conversion of preferred shares into ordinary shares during the global offering; the company entered into foreign exchange swap contracts to mitigate exchange rate fluctuations Financial Liabilities at Fair Value Through Profit or Loss | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Foreign Exchange Swaps | 509 | – | | Preferred Shares | – | 3,046,784 | | **Total** | **509** | **3,046,784** | - Preferred shares were converted into ordinary shares during the global offering, leading to the derecognition of these financial liabilities from the balance sheet[50](index=50&type=chunk) - The company entered into two foreign exchange swap contracts to mitigate the impact of RMB to USD exchange rate fluctuations, with a total outstanding notional principal of **USD 8,000,000**[48](index=48&type=chunk)[49](index=49&type=chunk) [14. Trade Payables](index=13&type=section&id=14.%20%E8%B2%BF%E6%98%93%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2025, trade payables remained relatively stable at RMB 666,778 thousand, compared to RMB 670,910 thousand as of December 31, 2024, primarily related to research and development activities Ageing Analysis of Trade Payables (Based on Invoice Date) | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 6 months | 666,714 | 670,199 | | 6 to 12 months | 48 | 711 | | Over 12 months | 16 | – | | **Total** | **666,778** | **670,910** | [15. Dividends](index=13&type=section&id=15.%20%E8%82%A1%E6%81%AF) For the six months ended June 30, 2025, and 2024, neither the company nor any of its constituent entities declared or paid any dividends - No dividends were paid or declared during the reporting period[52](index=52&type=chunk) [16. Material Post-Balance Sheet Events](index=13&type=section&id=16.%20%E9%87%8D%E5%A4%A7%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) No material post-balance sheet events occurred after the reporting period ended on June 30, 2025 - No material post-balance sheet events occurred after the reporting period[53](index=53&type=chunk) [Business Overview](index=14&type=section&id=%E6%A5%AD%E5%8B%99%E6%A6%82%E8%A7%88) Established in 2019, the company is a major global ADC player, developing innovative drugs for cancer and autoimmune diseases, with four leading ADC technology platforms and a pipeline of 13 self-developed candidates, accelerating global development through strategic partnerships [Overview](index=14&type=section&id=%E6%A6%82%E8%A7%88) Established in 2019, InnoCare Bio focuses on becoming a major global player in antibody-drug conjugates (ADCs) by discovering and developing ADC assets for cancer and autoimmune diseases, having built four leading ADC technology platforms and a pipeline of 13 self-developed ADC candidates - The company was established in 2019, focusing on the ADC field and dedicated to developing innovative drugs for cancer and autoimmune diseases[54](index=54&type=chunk) - Four leading ADC technology platforms and a pipeline of **13** self-developed ADC candidates have been established[54](index=54&type=chunk) [Product Pipeline](index=14&type=section&id=%E7%94%A2%E5%93%81%E7%AE%A1%E7%B7%9A) The company's pipeline includes two core products, DB-1303/BNT323 (HER2 ADC) and DB-1311/BNT324 (B7-H3 ADC), six other clinical-stage ADCs, and multiple preclinical ADCs covering a wide range of indications, with DB-1421 (BsADC) expected to enter clinical stage in 2026 - Core products include DB-1303/BNT323 (HER2 ADC) and DB-1311/BNT324 (B7-H3 ADC), for treating various cancers[55](index=55&type=chunk) - The pipeline also includes six other clinical-stage ADCs (e.g., DB-1310, DB-1305/BNT325, DB-1419) and multiple preclinical ADCs, with DB-1421 (BsADC) expected to enter clinical development in **2026**[55](index=55&type=chunk) [Our Core Products](index=16&type=section&id=%E6%88%91%E5%80%91%E7%9A%84%E6%A0%B8%E5%BF%83%E7%94%A2%E5%93%81) The company's core products, DB-1303/BNT323 (HER2 ADC) and DB-1311/BNT324 (B7-H3 ADC), are actively advancing in global clinical development, both having received FDA Fast Track designation and demonstrating positive efficacy and manageable safety in multiple clinical trials [DB-1303/BNT323](index=16&type=section&id=DB-1303%2FBNT323) DB-1303/BNT323, a HER2 ADC, has received FDA Fast Track and Breakthrough Therapy designations, as well as CDE Breakthrough Therapy designation in China, for advanced EC patients; it is undergoing multiple global registrational clinical trials, with BioNTech collaboration accelerating development, and a BLA submission to the CDE for HER2+ breast cancer expected by end of 2025 - DB-1303/BNT323 has received FDA Fast Track and Breakthrough Therapy designations, as well as CDE Breakthrough Therapy designation in China, for advanced EC patients[60](index=60&type=chunk) - A global Phase 3 clinical trial (DYNASTY-Breast02) for HR+, HER2-low breast cancer patients is ongoing, and a Phase 3 trial for advanced endometrial cancer patients is expected to start in **2025**[61](index=61&type=chunk) - A BLA for DB-1303/BNT323 for HER2+ breast cancer is expected to be submitted to the CDE by the end of **2025**[61](index=61&type=chunk) [DB-1311/BNT324](index=18&type=section&id=DB-1311%2FBNT324) DB-1311/BNT324, a B7-H3 ADC, has received FDA Fast Track designation for advanced CRPC patients and Orphan Drug designation for ESCC and SCLC; it demonstrated manageable safety and encouraging preliminary clinical activity in a Phase 1/2 clinical trial in CRPC patients, with a confirmed ORR of 30.8% and DCR of 90.4% - DB-1311/BNT324 has received FDA Fast Track designation for advanced CRPC patients and Orphan Drug designation for ESCC and SCLC[62](index=62&type=chunk) - In multi-line treated CRPC patients, DB-1311/BNT324 showed a confirmed ORR of **30.8%**, DCR of **90.4%**, and a 6-month rPFS rate of **67.7%**[62](index=62&type=chunk) - The company is actively exploring the potential of DB-1311/BNT324 as monotherapy and in combination with other treatments in various solid tumors, including combination trials with BNT116 (lung cancer vaccine) and BNT327 (bispecific antibody)[62](index=62&type=chunk) [Our Key Products](index=19&type=section&id=%E6%88%91%E5%80%91%E7%9A%84%E9%97%9C%E9%8D%B5%E7%94%A2%E5%93%81) The company's key product pipeline includes DB-1310 (HER3 ADC), DB-1305/BNT325 (TROP2 ADC), DB-1419 (B7-H3xPD-L1 BsADC), DB-1418/AVZO-1418 (EGFRxHER3 BsADC), and DB-2304 (BDCA2 ADC), all in leading clinical positions and showing potential for treating various cancers and autoimmune diseases [DB-1310](index=19&type=section&id=DB-1310) DB-1310, one of the most clinically advanced HER3 ADCs globally, has received FDA Fast Track designation for specific advanced non-small cell lung cancer; in its first-in-human Phase 1/2 clinical trial, DB-1310 demonstrated encouraging efficacy in EGFRm NSCLC patients, with an unconfirmed ORR of 43.5%, DCR of 91.3%, and median PFS of 7.03 months - DB-1310 has received FDA Fast Track designation for treating EGFRm nsqNSCLC patients whose disease progressed after third-generation EGFR TKI and platinum-based chemotherapy[64](index=64&type=chunk) - In EGFRm NSCLC patients, DB-1310 showed an unconfirmed ORR of **43.5%**, DCR of **91.3%**, and median PFS of **7.03 months**[63](index=63&type=chunk) - The company is exploring the potential of DB-1310 in combination with osimertinib for EGFRm NSCLC patients, and its efficacy in other solid tumors such as breast cancer and CRPC[63](index=63&type=chunk) [DB-1305/BNT325](index=20&type=section&id=DB-1305%2FBNT325) DB-1305/BNT325, a TROP2 ADC, has received FDA Fast Track designation for platinum-resistant ovarian, fallopian tube, or primary peritoneal cancer patients; in a Phase 1/2 clinical trial, it demonstrated manageable safety and early anti-tumor activity in PROC patients, with an ORR of 41.4% and DCR of 82.8% - DB-1305/BNT325 has received FDA Fast Track designation for treating patients with platinum-resistant epithelial ovarian, fallopian tube, or primary peritoneal cancer[65](index=65&type=chunk) - In PROC patients, DB-1305/BNT325 showed an ORR of **41.4%**, DCR of **82.8%**, median DOR of **7.3 months**, and median PFS of **7.4 months**[66](index=66&type=chunk) - The combination therapy of DB-1305/BNT325 with BNT327 (PD-L1xVEGF bsAb) showed early signs of anti-tumor activity in PROC, NSCLC, or TNBC patients[66](index=66&type=chunk) [DB-1419](index=21&type=section&id=DB-1419) DB-1419, the world's only B7-H3xPD-L1 BsADC in clinical development, has received IND approvals from the FDA and CDE, and initiated a Phase 1/2a global clinical trial in September 2024, aiming for synergistic anti-tumor effects through cytotoxic and immunotherapeutic activities - DB-1419 is the world's only B7-H3xPD-L1 BsADC in clinical development, capable of simultaneously delivering toxins and modulating T-cell activation[67](index=67&type=chunk) - It has received IND approvals from the FDA and CDE, and a Phase 1/2a global clinical trial was initiated in September **2024**, currently recruiting patients with advanced/metastatic solid tumors[67](index=67&type=chunk) [DB-1418/AVZO-1418](index=21&type=section&id=DB-1418%2F%2FAVZO-1418) DB-1418 is a novel EGFRxHER3 BsADC, with preclinical data showing additive binding affinity in EGFR and HER3 co-expressing tumor cells and efficacy in EGFR TKI-resistant NSCLC models; the company has partnered with Avenzo, which has dosed its first patient in a Phase 1/2 clinical study - DB-1418 is a novel EGFRxHER3 BsADC, with preclinical data showing additive binding affinity in EGFR and HER3 co-expressing tumor cells and efficacy in EGFR TKI-resistant NSCLC models[68](index=68&type=chunk) - The company has entered into a collaboration and licensing agreement with Avenzo, granting exclusive worldwide rights (excluding Greater China) for development, manufacturing, and commercialization[68](index=68&type=chunk) [DB-2304](index=21&type=section&id=DB-2304) DB-2304, an innovative BDCA2 ADC for systemic lupus erythematosus (SLE) and cutaneous lupus erythematosus (CLE), is one of the most advanced BDCA2 ADCs in development; it employs a selective therapeutic approach, aiming to significantly improve side effects of existing lupus treatments, with a multi-dose escalation study expected to start by end of 2025 - DB-2304 is an innovative BDCA2 ADC for SLE and CLE, and is one of the most advanced BDCA2 ADCs in development[69](index=69&type=chunk) - This drug employs a selective therapeutic approach, targeting upstream signaling pathways in SLE/CLE pathogenesis, with the potential to improve side effects of existing treatments[69](index=69&type=chunk) - The company is currently advancing DB-2304's Phase 1 global trial and expects to initiate a multi-dose escalation study by the end of **2025**[69](index=69&type=chunk) [Proprietary ADC Platforms](index=22&type=section&id=%E8%87%AA%E4%B8%BB%E7%A0%94%E7%99%BC%E7%9A%84ADC%E5%B9%B3%E5%8F%B0) The company has developed four leading ADC technology platforms: DITAC (Immunotoxin), DIBAC (Bispecific), DIMAC (Immunomodulatory), and DUPAC (Unique Payload), aiming to push the boundaries of ADC therapy, address drug resistance and refractory tumors, and expand into autoimmune diseases [DITAC (InnoCare Immunotoxin Antibody-Drug Conjugate Platform)](index=22&type=section&id=DITAC) DITAC, the company's proprietary topoisomerase inhibitor-based ADC platform, has demonstrated good tolerability in over 2,600 patients globally; through technological improvements and optimization of its proprietary component library, the platform aims to provide a wide therapeutic window, better systemic stability, tumor-specific payload release, and bystander killing effect - DITAC is a topoisomerase inhibitor-based ADC platform, with good tolerability validated in over **2,600** patients globally[73](index=73&type=chunk) - The platform aims to provide a wide therapeutic window, better systemic stability, tumor-specific payload release, bystander killing effect, and rapid toxin payload clearance capabilities[73](index=73&type=chunk) [DIBAC (InnoCare Innovative Bispecific Antibody-Drug Conjugate Platform)](index=22&type=section&id=DIBAC) DIBAC, the company's innovative bispecific antibody-drug conjugate platform, aims to achieve superior efficacy compared to traditional monospecific ADCs by integrating two different binding moieties into a single drug; this platform combines bispecific antibody engineering with AI-enabled target selection and antibody design expertise - DIBAC is one of the few BsADC platforms globally, aiming to achieve superior efficacy over traditional monospecific ADCs by integrating two different binding moieties[73](index=73&type=chunk) - The platform combines bispecific antibody engineering and AI-enabled target selection and antibody design expertise[73](index=73&type=chunk) [DIMAC (InnoCare Immunomodulatory Antibody-Drug Conjugate Platform)](index=22&type=section&id=DIMAC) DIMAC, the company's proprietary immunomodulatory antibody-drug conjugate platform, carries immunomodulatory payloads and aims to address significant unmet needs in autoimmune and other therapeutic areas; molecules developed on this platform have shown effective and broad anti-inflammatory activity in preclinical studies, with the potential to reshape autoimmune disease treatment through targeted therapy - DIMAC is one of the few ADC platforms targeting major autoimmune diseases, carrying proprietary immunomodulatory payloads[75](index=75&type=chunk) - Molecules developed on this platform have shown effective and broad anti-inflammatory activity in preclinical studies, with the potential to reshape autoimmune disease treatment through targeted therapy[75](index=75&type=chunk) [DUPAC (InnoCare Unique Payload Antibody-Drug Conjugate Platform)](index=22&type=section&id=DUPAC) DUPAC is one of the company's ADC platforms dedicated to developing linker-payload complexes with novel mechanisms of action superior to traditional cytotoxic drugs, aiming to address drug-resistant and refractory tumors; DUPAC has shown potential to overcome resistance to Dxd and other topoisomerase inhibitors - DUPAC is one of the ADC platforms dedicated to developing linker-payload complexes with novel mechanisms of action, aiming to address drug-resistant and refractory tumors[75](index=75&type=chunk) - DUPAC has shown potential to overcome resistance to Dxd and other topoisomerase inhibitors[75](index=75&type=chunk) [Collaboration and Licensing Arrangements](index=23&type=section&id=%E5%90%88%E4%BD%9C%E8%88%87%E8%A8%B1%E5%8F%AF%E5%AE%89%E6%8E%92) The company has established a series of global strategic partnerships, including with BioNTech, BeiGene, Adcendo, GSK, and Avenzo, with total transaction values exceeding USD 6 billion, aimed at accelerating pipeline development in key global markets, expanding clinical development capabilities, and fostering future innovation [Strategic Partnership with BioNTech](index=23&type=section&id=%E8%88%87BioNTech%E7%9A%84%E6%88%B0%E7%95%A5%E5%90%88%E4%BD%9C%E5%8B%A2%E9%97%9C%E4%BF%82) The company has entered into three licensing and collaboration agreements with BioNTech for DB-1303, DB-1311, and DB-1305, granting BioNTech exclusive worldwide development, manufacturing, and commercialization rights (excluding Greater China), while the company retains rights in Greater China; both parties are actively exploring the therapeutic potential of these drugs through comprehensive global clinical development programs - Three licensing and collaboration agreements have been reached with BioNTech, involving DB-1303, DB-1311, and DB-1305[75](index=75&type=chunk) - BioNTech obtained exclusive worldwide rights (excluding Greater China) for development, manufacturing, and commercialization, while the company retains rights in Greater China[76](index=76&type=chunk) - BioNTech granted the company an exclusive option to co-develop and co-commercialize DB-1311 in the United States, sharing costs and profits[76](index=76&type=chunk) [Collaboration with BeiGene](index=24&type=section&id=%E8%88%87%E7%99%BE%E6%B5%8E%E7%A5%9E%E5%B7%9E%E7%9A%84%E5%90%88%E4%BD%9C) The company has granted BeiGene global development and commercialization rights for DB-1312 (B7-H4 targeting ADC); BeiGene is currently advancing the single-agent dose escalation of DB-1312 in its Phase 1 trial - The company has granted BeiGene global development and commercialization rights for DB-1312 (B7-H4 targeting ADC)[77](index=77&type=chunk) - BeiGene is currently advancing the ongoing single-agent dose escalation of DB-1312 in its Phase 1 trial[77](index=77&type=chunk) [Collaboration with Adcendo](index=24&type=section&id=%E8%88%87Adcendo%E7%9A%84%E5%90%88%E4%BD%9C) The company established a strategic partnership with Adcendo in 2022, where Adcendo utilizes the company's proprietary DITAC platform to advance new programs, including uPARAP-targeting ADCs; in November 2024, a new licensing agreement was reached to develop an ADC product targeting another target using the DITAC platform - A strategic partnership was established with Adcendo, where Adcendo utilizes the company's proprietary DITAC platform to advance new programs, including uPARAP-targeting ADCs[78](index=78&type=chunk) - In November **2024**, a new licensing agreement was reached to develop an ADC product targeting another target using the DITAC platform[78](index=78&type=chunk) [Collaboration with GSK](index=24&type=section&id=%E8%88%87GSK%E7%9A%84%E5%90%88%E4%BD%9C) The company entered into an exclusive option agreement with GSK for DB-1324 (a preclinical ADC asset developed using the DITAC platform); GSK paid an upfront fee of USD 30 million and agreed to pay additional milestone payments; if GSK exercises the option, the company is eligible for an option exercise fee, potential milestone payments, and tiered royalties - An exclusive option agreement was reached with GSK for DB-1324 (a preclinical ADC asset), granting GSK worldwide development and commercialization options (excluding Greater China)[79](index=79&type=chunk) - GSK paid an upfront fee of **USD 30 million** and agreed to pay additional pre-option exercise milestone payments[79](index=79&type=chunk) [Collaboration with Avenzo](index=25&type=section&id=%E8%88%87Avenzo%E7%9A%84%E5%90%88%E4%BD%9C) The company entered into a collaboration and licensing agreement with Avenzo, granting Avenzo exclusive worldwide rights (excluding Greater China) to develop, manufacture, and commercialize DB-1418 (EGFR/HER3 BsADC) - A collaboration and licensing agreement was reached with Avenzo, granting exclusive worldwide rights (excluding Greater China) to develop, manufacture, and commercialize DB-1418[80](index=80&type=chunk) [Manufacturing](index=25&type=section&id=%E7%94%A2%E7%94%9F) The company outsources its manufacturing activities to Contract Development and Manufacturing Organizations (CDMOs) to support drug development, a model it plans to maintain in the short term and early commercialization for cost-effectiveness and efficiency, continuing to collaborate with leading CDMOs to optimize manufacturing processes - The company's manufacturing activities are outsourced to CDMOs to support drug development, a model planned to continue in the short term and early commercialization[81](index=81&type=chunk) - The company has entered into long-term master service agreements with CDMO partners and places specific orders based on R&D activities[81](index=81&type=chunk) [Commercialization](index=25&type=section&id=%E5%95%86%E6%A5%AD%E5%8C%96) The company has not yet obtained marketing approval for any candidate drugs but has developed a cross-functional commercialization plan to support the anticipated launch of DB-1303 in the Chinese market, including establishing a manufacturing supply chain, preparing marketing applications, and building a core commercialization team; a collaboration agreement has been signed with 3SBio, appointing them as the commercialization partner for DB-1303 in Greater China - The company has not yet obtained marketing approval for any candidate drugs but has developed a cross-functional commercialization plan to support the anticipated launch of DB-1303 in the Chinese market[82](index=82&type=chunk) - A collaboration agreement has been signed with 3SBio, appointing them as the commercialization partner for DB-1303 in mainland China, Hong Kong, and Macau[82](index=82&type=chunk) [Management Discussion and Analysis](index=26&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) This section details the company's H1 2025 financial performance, including revenue growth, expense changes, loss expansion, balance sheet movements, and cash flow, emphasizing the impact of financial liability fair value changes and the global offering's positive effect on capital [Overview](index=26&type=section&id=%E6%A6%82%E8%A7%88) For the six months ended June 30, 2025, the company's total revenue increased to RMB 1,228.9 million, but loss for the period significantly increased to RMB 2,073.9 million, primarily due to fair value changes of financial liabilities; R&D expenses decreased, while administrative expenses, cost of sales, and finance income all increased - Total revenue was **RMB 1,228.9 million**, representing a **22.9%** year-on-year increase[83](index=83&type=chunk) - Loss for the period was **RMB 2,073.9 million**, a significant increase from **RMB 293.4 million** in the prior period, primarily due to fair value changes of financial liabilities measured at fair value through profit or loss, resulting in a loss of **RMB 2,219.8 million**[83](index=83&type=chunk) - Research and development expenses decreased by **7.5%** to **RMB 349.4 million**, while administrative expenses increased by **71.2%** to **RMB 125.5 million**[83](index=83&type=chunk) [Revenue](index=26&type=section&id=%E6%94%B6%E5%85%A5) For the six months ended June 30, 2025, the company's total revenue was RMB 1,228.9 million, a 22.9% year-on-year increase, primarily driven by the further expansion of R&D activities through out-licensing and collaboration agreements Revenue Breakdown | Revenue Type | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Licensing and Collaboration Agreement Revenue | 1,227,245 | 998,315 | | Others | 1,689 | 1,511 | | **Total** | **1,228,934** | **999,826** | - The increase in revenue was primarily due to the further expansion of R&D activities through out-licensing and collaboration agreements[84](index=84&type=chunk) [Cost of Sales](index=27&type=section&id=%E7%87%9F%E6%A5%AD%E6%88%90%E6%9C%AC) For the six months ended June 30, 2025, cost of sales increased to RMB 639.5 million, a 48.2% increase from RMB 431.6 million in the prior period, primarily due to further clinical development of collaboration projects - Cost of sales increased to **RMB 639.5 million**, representing a **48.2%** year-on-year increase[86](index=86&type=chunk) - The increase in cost of sales was primarily due to further clinical development of collaboration projects[86](index=86&type=chunk) [Gross Profit and Gross Margin](index=27&type=section&id=%E6%AF%9B%E5%88%A9%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87) For the six months ended June 30, 2025, gross profit was RMB 589.4 million, slightly higher than RMB 568.2 million in the prior period, while gross margin decreased from 56.8% to 48.0% - Gross profit was **RMB 589.4 million**, with a gross margin of **48.0%**[87](index=87&type=chunk) - Gross margin decreased by **8.8 percentage points** year-on-year, from **56.8%** to **48.0%**[87](index=87&type=chunk) [Research and Development Expenses](index=27&type=section&id=%E7%A0%94%E7%99%BC%E9%96%8B%E6%94%AF) For the six months ended June 30, 2025, research and development expenses decreased to RMB 349.4 million, a 7.5% year-on-year decrease, primarily due to reduced share-based payment expenses and no asset impairment losses recognized Research and Development Expenses Breakdown | Expense Type | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Technical Service Expenses | 231,782 | 227,845 | | Staff Costs | 105,676 | 121,479 | | Asset Impairment Loss | – | 21,350 | | **Total** | **349,387** | **377,579** | - The decrease in R&D expenses was primarily due to reduced share-based payment expenses recognized during the vesting period of the share incentive scheme, and no asset impairment losses recognized in H1 2025[88](index=88&type=chunk) [Administrative Expenses](index=28&type=section&id=%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) For the six months ended June 30, 2025, administrative expenses increased to RMB 125.5 million, a 71.2% year-on-year increase, primarily due to listing expenses incurred in H1 2025 - Administrative expenses increased to **RMB 125.5 million**, representing a **71.2%** year-on-year increase[90](index=90&type=chunk) - The increase in administrative expenses was primarily due to listing expenses incurred in H1 2025[90](index=90&type=chunk) [Other Income](index=28&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) For the six months ended June 30, 2025, other income decreased to RMB 1.1 million, a 35.3% year-on-year decrease, primarily due to reduced government grants - Other income decreased to **RMB 1.1 million**, representing a **35.3%** year-on-year decrease[91](index=91&type=chunk) - The decrease in other income was primarily due to reduced government grants[91](index=91&type=chunk) [Other (Losses) / Gains, Net](index=28&type=section&id=%E5%85%B6%E4%BB%96%EF%BC%88%E8%99%A7%E6%90%8D%EF%BC%89%E2%88%95%E6%94%B6%E7%9B%8A%E6%B7%A8%E5%80%BC) For the six months ended June 30, 2025, the company recorded other net losses of RMB 8.5 million, compared to net gains of RMB 8.2 million in the prior period, primarily due to exchange rate fluctuations between USD, RMB, and HKD - Other net losses of **RMB 8.5 million** were recorded, compared to net gains of **RMB 8.2 million** in the prior period[92](index=92&type=chunk) - The change was primarily due to exchange rate fluctuations between USD, RMB, and HKD[92](index=92&type=chunk) [Finance Income](index=28&type=section&id=%E8%B2%A1%E5%8B%99%E6%94%B6%E5%85%A5) For the six months ended June 30, 2025, finance income increased to RMB 39.5 million, a 50.2% year-on-year increase, primarily from bank deposit interest income - Finance income increased to **RMB 39.5 million**, representing a **50.2%** year-on-year increase[93](index=93&type=chunk) - Finance income primarily refers to interest income from bank deposits[93](index=93&type=chunk) [Finance Costs](index=28&type=section&id=%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) For the six months ended June 30, 2025, finance costs increased to RMB 0.6 million, primarily due to bank interest expenses on discounted notes - Finance costs increased to **RMB 0.6 million**, primarily due to bank interest expenses on discounted notes[94](index=94&type=chunk) [Fair Value Changes of Financial Liabilities at Fair Value Through Profit or Loss](index=29&type=section&id=%E4%BB%A5%E5%85%AC%E5%85%81%E5%83%B9%E5%80%BC%E8%A8%88%E9%87%8F%E4%B8%94%E5%85%B6%E8%AE%8A%E5%8B%95%E8%A8%88%E5%85%A5%E7%95%B6%E6%9C%9F%E6%90%8D%E7%9B%8A%E7%9A%84%E9%87%91%E8%9E%8D%E8%B2%A0%E5%82%B5%E7%9A%84%E5%85%AC%E5%85%81%E5%83%B9%E5%80%BC%E8%AE%8A%E5%8B%95) For the six months ended June 30, 2025, fair value changes of financial liabilities measured at fair value through profit or loss resulted in a loss of RMB 2,219.8 million, a significant increase from RMB 421.3 million in the prior period, primarily due to fair value changes of preferred shares issued prior to the global offering - Fair value changes resulted in a loss of **RMB 2,219.8 million**, compared to a loss of **RMB 421.3 million** in the prior period[95](index=95&type=chunk) - The change primarily refers to fair value changes of preferred shares issued through equity financing prior to the global offering[95](index=95&type=chunk) [Income Tax Expense](index=29&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) For the six months ended June 30, 2025, income tax expense decreased to zero, compared to RMB 25.6 million in the prior period, primarily due to no withholding tax on revenue recognized in H1 2025 - Income tax expense decreased to **zero**, compared to **RMB 25.6 million** in the prior period[96](index=96&type=chunk) - The decrease was primarily due to no withholding tax on revenue recognized in H1 2025[96](index=96&type=chunk) [Loss for the Period](index=29&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%85%A7%E8%99%A7%E6%90%8D) Due to the combined effect of the aforementioned factors, the Group's loss for the six months ended June 30, 2025, significantly increased from RMB 293.4 million in the prior period to RMB 2,073.9 million - Loss for the period increased from **RMB 293.4 million** to **RMB 2,073.9 million**, an increase of **RMB 1,780.5 million**[97](index=97&type=chunk) [Property, Plant and Equipment](index=29&type=section&id=%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%A8%AD%E5%82%99) As of June 30, 2025, property, plant and equipment remained relatively stable at RMB 13.5 million, primarily comprising office and facility equipment, leasehold improvements, and construction in progress - Property, plant and equipment remained relatively stable at **RMB 13.5 million** as of June 30, 2025[98](index=98&type=chunk) [Intangible Assets](index=29&type=section&id=%E7%84%A1%E5%BD%A2%E8%B3%87%E7%94%A2) As of June 30, 2025, intangible assets decreased by RMB 6.8 million to RMB 39.4 million, primarily due to certain amounts being recognized as cost of sales under out-licensing arrangements - Intangible assets decreased by **RMB 6.8 million** to **RMB 39.4 million**[99](index=99&type=chunk) - The decrease was primarily due to certain amounts being recognized as cost of sales under out-licensing arrangements[99](index=99&type=chunk) [Other Current Assets and Other Non-Current Assets](index=29&type=section&id=%E5%85%B6%E4%BB%96%E6%B5%81%E5%8B%95%E8%B3%87%E7%94%A2%E5%8F%8A%E5%85%B6%E4%BB%96%E9%9D%9E%E6%B5%81%E5%8B%95%E8%B3%87%E7%94%A2) As of June 30, 2025, other current assets and other non-current assets combined decreased to RMB 48.6 million, primarily due to the receipt of tax refunds related to withholding tax in H1 2025 - Other current assets and other non-current assets combined decreased to **RMB 48.6 million**[100](index=100&type=chunk) - The decrease was primarily due to the receipt of tax refunds related to withholding tax in H1 2025[100](index=100&type=chunk) [Right-of-Use Assets](index=30&type=section&id=%E4%BD%BF%E7%94%A8%E6%AC%8A%E8%B3%87%E7%94%A2) As of June 30, 2025, right-of-use assets decreased by RMB 0.9 million to RMB 4.6 million, primarily due to depreciation of right-of-use assets - Right-of-use assets decreased by **RMB 0.9 million** to **RMB 4.6 million**[101](index=101&type=chunk) - The decrease was primarily due to depreciation of right-of-use assets[101](index=101&type=chunk) [Trade Receivables](index=30&type=section&id=%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of June 30, 2025, trade receivables decreased to RMB 288.3 million from RMB 379.0 million as of December 31, 2024, primarily due to a reduction in uncollected amounts at the corresponding period-end - Trade receivables decreased to **RMB 288.3 million**[102](index=102&type=chunk) - The decrease was primarily due to a reduction in uncollected amounts at the corresponding period-end[102](index=102&type=chunk) [Prepayments and Other Receivables](index=30&type=section&id=%E9%A0%90%E4%BB%98%E6%AC%BE%E9%A0%85%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of June 30, 2025, prepayments and other receivables remained relatively stable at RMB 25.6 million, primarily dependent on R&D activities and business operations - Prepayments and other receivables remained relatively stable at **RMB 25.6 million**[103](index=103&type=chunk) [Cash and Cash Equivalents](index=30&type=section&id=%E7%8F%BE%E9%87%91%E5%8F%8A%E7%8F%BE%E9%87%91%E7%AD%89%E5%83%B9%E7%89%A9) As of June 30, 2025, cash and cash equivalents increased significantly to RMB 2,994.2 million from RMB 1,208.9 million as of December 31, 2024, primarily due to proceeds from the company's listing on the HKEX in H1 2025 - Cash and cash equivalents increased to **RMB 2,994.2 million**, representing a **147.7%** year-on-year increase[104](index=104&type=chunk) - The increase was primarily due to proceeds from the company's listing on the Stock Exchange of Hong Kong in H1 2025[104](index=104&type=chunk) [Fixed Deposits with Original Maturity Over Three Months](index=30&type=section&id=%E5%88%9D%E5%A7%8B%E6%9C%9F%E9%99%90%E8%B6%85%E9%81%8E%E4%B8%89%E5%80%8B%E6%9C%88%E7%9A%84%E5%AE%9A%E6%9C%9F%E5%AD%98%E6%AC%BE) As of June 30, 2025, fixed deposits with original maturity over three months increased significantly to RMB 707.0 million from RMB 181.8 million as of December 31, 2024 - Fixed deposits with original maturity over three months increased to **RMB 707.0 million**, representing a **288.9%** year-on-year increase[105](index=105&type=chunk) [Trade Payables](index=30&type=section&id=%E8%B2%BF%E6%98%93%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2025, trade payables remained relatively stable at RMB 666.8 million, primarily related to research and development activities - Trade payables remained relatively stable at **RMB 666.8 million**[106](index=106&type=chunk) [Other Payables](index=31&type=section&id=%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2025, other payables remained relatively stable at RMB 58.6 million, primarily including employee salaries and benefits payable, and listing expenses payable - Other payables remained relatively stable at **RMB 58.6 million**[107](index=107&type=chunk) [Lease Liabilities](index=31&type=section&id=%E7%A7%9F%E8%B3%83%E8%B2%A0%E5%82%B5) As of June 30, 2025, lease liabilities decreased to RMB 4.5 million, primarily due to ongoing payments for lease contracts - Lease liabilities decreased to **RMB 4.5 million**[108](index=108&type=chunk) - The decrease was primarily due to ongoing payments for lease contracts[108](index=108&type=chunk) [Contract Liabilities](index=31&type=section&id=%E5%90%88%E7%B4%84%E8%B2%A0%E5%82%B5) As of June 30, 2025, contract liabilities decreased to RMB 298.6 million, primarily due to RMB 63.6 million of revenue recognized from contract liabilities at the beginning of the year - Contract liabilities decreased to **RMB 298.6 million**[109](index=109&type=chunk) - The decrease was primarily due to **RMB 63.6 million** of revenue recognized from contract liabilities at the beginning of the year[109](index=109&type=chunk) [Financial Liabilities at Fair Value Through Profit or Loss](index=31&type=section&id=%E6%8C%89%E5%85%AC%E5%85%81%E5%83%B9%E5%80%BC%E8%A8%88%E9%87%8F%E4%B8%94%E5%85%B6%E8%AE%8A%E5%8B%95%E8%A8%88%E5%85%A5%E7%95%B6%E6%9C%9F%E6%90%8D%E7%9B%8A%E7%9A%84%E9%87%91%E8%9E%8D%E8%B2%A0%E5%82%B5) As of June 30, 2025, financial liabilities measured at fair value significantly decreased, primarily due to the conversion of preferred shares into ordinary shares after listing, and their derecognition from liabilities - Preferred shares were converted into ordinary shares after listing, leading to the derecognition of these financial liabilities from liabilities and their reclassification as equity[110](index=110&type=chunk) [Bank Borrowings](index=31&type=section&id=%E9%8A%80%E8%A1%8C%E5%80%9F%E6%AC%BE) As of June 30, 2025, bank borrowings increased to RMB 63.4 million, primarily due to discounted notes with maturities within six months - Bank borrowings increased to **RMB 63.4 million**, primarily due to discounted notes with maturities within six months[111](index=111&type=chunk) [Other Non-Current Liabilities](index=31&type=section&id=%E5%85%B6%E4%BB%96%E9%9D%9E%E6%B5%81%E5%8B%95%E8%B2%A0%E5%82%B5) As of June 30, 2025, other non-current liabilities increased to RMB 169.5 million, primarily due to non-refundable upfront payments related to the new 3SBio CSO collaboration agreement - Other non-current liabilities increased to **RMB 169.5 million**, primarily due to upfront payments from the new 3SBio CSO collaboration agreement[112](index=112&type=chunk) [Cash Flows](index=32&type=section&id=%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F) For the six months ended June 30, 2025, net cash inflow from operating activities significantly increased, net cash outflow from investing activities increased, and net cash inflow from financing activities significantly increased, primarily benefiting from initial public offering proceeds Cash Flow Summary | Cash Flow Type | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Net Cash Inflow from Operating Activities | 589,762 | 178,389 | | Net Cash Outflow from Investing Activities | (520,929) | (164,162) | | Net Cash Inflow / (Outflow) from Financing Activities | 1,729,329 | (1,605) | | Net Increase in Cash and Cash Equivalents | 1,798,162 | 12,622 | | Cash and Cash Equivalents at End of Period | 2,994,180 | 1,147,960 | - Net cash inflow from operating activities increased, primarily due to more funds received from collaboration arrangements and tax refunds for withholding tax and VAT[113](index=113&type=chunk) - Net cash inflow from financing activities significantly increased, primarily from proceeds of the initial public offering completed in H1 2025[114](index=114&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=%E6%B5%81%E5%8B%95%E6%80%A7%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E6%BA%90) The company primarily meets its working capital needs through proceeds from the global offering and pre-IPO financing, managing financial activities centrally to control funding costs; the company believes it has sufficient funds to meet working capital and capital expenditure needs for H2 2025 - The company primarily meets its working capital needs through proceeds from the global offering and pre-IPO financing[115](index=115&type=chunk) - The company believes it has sufficient funds to meet working capital and capital expenditure needs for H2 2025[116](index=116&type=chunk) [Key Financial Ratios](index=33&type=section&id=%E4%B8%BB%E8%A6%81%E8%B2%A1%E5%8B%99%E6%AF%94%E7%8E%87) As of June 30, 2025, the company's current ratio was 4.7, a significant improvement from 0.5 as of December 31, 2024; the gearing ratio is not applicable due to negative interest-bearing borrowings less cash equivalents Key Financial Ratios | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current Ratio | 4.7 | 0.5 | | Gearing Ratio | Not Applicable | Not Applicable | - The current ratio significantly improved, indicating a substantial strengthening of the company's short-term solvency[117](index=117&type=chunk)[121](index=121&type=chunk) [Material Investments](index=33&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87) For the six months ended June 30, 2025, the company made no material investments and currently has no plans for material investments or additions to significant capital assets - No material investments were made during the reporting period, and there are no future plans for material investments[117](index=117&type=chunk) [Material Acquisitions and Disposals](index=33&type=section&id=%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE) For the six months ended June 30, 2025, the company had no material acquisitions or disposals of subsidiaries, associates, or joint ventures - No material acquisitions or disposals occurred during the reporting period[118](index=118&type=chunk) [Contingent Liabilities](index=33&type=section&id=%E6%88%96%E6%9C%89%E8%B2%A0%E5%82%B5) As of June 30, 2025, the company had no material contingent liabilities, guarantees, or pending litigations that could significantly adversely affect its business, financial condition, or operating results - As of June 30, 2025, the company had no material contingent liabilities, guarantees, or pending litigations[119](index=119&type=chunk) [Foreign Exchange Risk](index=33&type=section&id=%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA) The company primarily operates in China, with most transactions settled in RMB, but as of June 30, 2025, a significant portion of bank balances and cash were denominated in USD; the company currently has no foreign currency hedging policy, but management monitors foreign exchange risk and considers hedging when necessary - The company's majority of transactions are settled in RMB, but a significant portion of bank balances and cash are denominated in USD as of June 30, 2025[120](index=120&type=chunk) - The company currently has no foreign currency hedging policy, but management monitors foreign exchange risk and considers hedging when necessary[120](index=120&type=chunk) [Employees and Remuneration Policy](index=34&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June 30, 2025, the company had 191 employees, with total remuneration costs of RMB 199.0 million; remuneration includes salaries, bonuses, and equity incentives, with social insurance and housing provident fund contributions made in accordance with Chinese laws and regulations - As of June 30, 2025, the company had **191** employees, an increase of **54** from the prior period[122](index=122&type=chunk) - Total remuneration costs were **RMB 199.0 million**, a slight increase from **RMB 193.5 million** in the prior period[122](index=122&type=chunk) - The company has adopted a pre-IPO share incentive scheme to provide incentives to employees[123](index=123&type=chunk) [Future Developments](index=34&type=section&id=%E6%9C%AA%E4%BE%86%E7%99%BC%E5%B1%95) The company aims to be a global leader in innovative ADC therapies, following the "CP2" strategy (Clinical Development, Platforms, and Pipeline) to accelerate global development and commercialization of clinical-stage projects, enhancing research, clinical, and regulatory expertise - The company's mission is to be a global leader in the discovery, development, and commercialization of innovative ADC therapies[124](index=124&type=chunk) - It follows the "CP2" strategy (Clinical Development, Platforms, and Pipeline) and aims to expand it into global markets[124](index=124&type=chunk) - Future plans include accelerating global development and commercialization of clinical-stage projects, and continuously strengthening global research, clinical development, and regulatory expertise[124](index=124&type=chunk) [Interim Dividend](index=34&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board does not recommend paying an interim dividend to shareholders for the six months ended June 30, 2025 - The Board does not recommend paying an interim dividend for the six months ended June 30, 2025[125](index=125&type=chunk) [Capital Structure](index=34&type=section&id=%E8%B3%87%E6%9C%AC%E6%9E%B6%E6%A7%8B) The company's shares were listed on the Main Board of the Stock Exchange on the listing date, with no material changes to the capital structure since then, except as disclosed in this announcement - The company's shares were listed on the Main Board of the Stock Exchange on April 15, 2025[126](index=126&type=chunk) - There have been no material changes to the company's capital structure since the listing date[126](index=126&type=chunk) [Future Plans for Material Investments and Capital Assets](index=34&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2%E7%9A%84%E6%9C%AA%E4%BE%86%E8%A8%88%E5%8A%83) As of this announcement date, the Group has no plans for material investments and capital assets, other than those disclosed in the prospectus - As of the date of this announcement, the Group has no plans for material investments and capital assets[127](index=127&type=chunk) [Corporate Governance and Other Information](index=35&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) The company is committed to high corporate governance standards, adopting the Corporate Governance Code and Model Code, and has complied with all provisions from listing date to June 30, 2025, except for the combined Chairman and CEO roles [Compliance with Corporate Governance Code](index=35&type=section&id=%E9%81%B5%E5%AE%88%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%88%99) The company has adopted the Corporate Governance Code and has complied with all applicable code provisions from the listing date to June 30, 2025, except for the combined roles of Chairman and Chief Executive Officer held by Dr. Zhu Zhongyuan, an arrangement the Board believes benefits business operations and management - The company has adopted the Corporate Governance Code as set out in Appendix C1 of the Listing Rules[129](index=129&type=chunk) - From the listing date to June 30, 2025, the company has complied with all applicable code provisions, except for the combined roles of Chairman and Chief Executive Officer held by Dr. Zhu Zhongyuan[129](index=129&type=chunk) [Compliance with Model Code](index=35&type=section&id=%E9%81%B5%E5%AE%88%E6%A8%99%E6%BA%96%E5%AE%88%E5%88%99) The company has adopted the Model Code, and all Directors have confirmed compliance from the listing date to June 30, 2025; the company has also established an inside information policy and found no instances of non-compliance by relevant employees - The company has adopted the Model Code as set out in Appendix C3 of the Listing Rules, and Directors have confirmed compliance[130](index=130&type=chunk) - The company has established an inside information policy and found no instances of non-compliance with the Model Code by relevant employees[130](index=130&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=36&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) From the listing date to this announcement, neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities, and as of June 30, 2025, no treasury shares were held - From the listing date to the date of this announcement, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities[131](index=131&type=chunk) - As of June 30, 2025, the company held no treasury shares[132](index=132&type=chunk) [Review of Interim Results](index=36&type=section&id=%E5%AF%A9%E9%96%B1%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE) The Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025, were reviewed by PricewaterhouseCoopers, and the Audit Committee confirmed proper preparation and disclosure - The interim condensed consolidated financial statements for the six months ended June 30, 2025, have been reviewed by PricewaterhouseCoopers in accordance with Hong Kong Standard on Review Engagements 2410[133](index=133&type=chunk) - The Audit Committee has reviewed this announcement and is satisfied that the financial information has been prepared in accordance with applicable accounting standards and properly disclosed[133](index=133&type=chunk) [Use of Net Proceeds from Global Offering](index=36&type=section&id=%E5%85%A8%E7%90%83%E7%99%BC%E5%94%AE%E6%89%80%E5%BE%97%E6%AC%BE%E9%9D%9C%E9%A1%8D%E7%94%A8%E9%80%94) Net proceeds from the global offering totaled approximately HKD 1,747.5 million, with HKD 147.8 million utilized by June 30, 2025, primarily for R&D, commercialization, platform development, and working capital, with the remaining balance to be used over 3-4 years - Net proceeds from the global offering totaled approximately **HKD 1,747.5 million** (including the over-allotment option)[134](index=134&type=chunk)[135](index=135&type=chunk) - As of June 30, 2025, approximately **HKD 147.8 million** of the net proceeds from the global offering had been utilized[135](index=135&type=chunk) Use and Allocation of Net Proceeds from Global Offering | Use | Allocation Ratio | Utilized Amount (HKD million) | Unutilized Amount (HKD million) | Expected Timeline | | :--- | :--- | :--- | :--- | :--- | | R&D and Commercialization of Core Products DB-1303 and DB-1311 | 45.0% | 64.1 | 722.3 | Next 3 to 4 years | | R&D of Key Products | 30.0% | 50.6 | 473.7 | Next 3 to 4 years | | Ongoing Development of ADC Technology Platforms and Other Pipeline Assets | 15.0% | 20.9 | 241.2 | Next 3 to 4 years | | Working Capital and Other General Corporate Purposes | 10.0% | 12.2 | 162.5 | Next 3 to 4 years | | **Total** | **100.0%** | **147.8** | **1,599.7** | | [Key Risks and Uncertainties](index=38&type=section&id=%E4%B8%BB%E8%A6%81%E9%A2%A8%E9%9A%AA%E5%8F%8A%E4%B8%8D%E6%98%8E%E6%9C%97%E5%9B%A0%E7%B4%A0) The company's business, financial condition, and operating results may be materially and adversely affected by certain risks and uncertainties, detailed in the prospectus's "Risk Factors" se

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。 Guming Holdings Limited 古茗控股有限公司 （於 開 曼 群 島 註 冊 成 立 的 有 限 公 司） （股份代號：01364） 截 至2025年6月30日止六個月 中期業績公告 董 事 會 欣 然 公 佈，本 集 團 截 至2025年6月30日止六個月的未經審核中期簡明綜 合財務業績連同截至2024年6月30日 止 六 個 月 的 比 較 數 字 載 列 如 下。 財務摘要 下表載列截至2025年6月30日 止 六 個 月 我 們 的 關 鍵 財 務 數 據，連 同 截 至2024年 6月30日止六個月的比較數字及變動（以 百 分 比 表 示）。 | | | | | | | | | | | | | | 截 | | 至6月30日止六個月 | | | | | --- | --- | --- | --- | --- | --- | ...

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分內容而產生或因倚賴該等內容而引 致之任何損失承擔任何責任。 山東新華製藥股份有限公司 Shandong Xinhua Pharmaceutical Company Limited (於中華人民共和國註冊成立之股份有限公司) (股份編號：00719) 2025 年中期業績公告 山東新華製藥股份有限公司(「本公司」)董事會(「董事會」)及董事(「董事」)謹此宣佈本 公司及其附屬公司(「本集團」)截至 2025 年 6 月 30 日止 6 個月(「本報告期」)的未經審計中 期業績。下列財務資料根據《中國企業會計準則》(「中國企業會計準則 」, 定義同香港聯 合交易所有限公司證券上市規則(「上市規則」)所界定)編制。 本公告分別以中文及英文刊載。如中英文本有任何差異，概以中文本為凖。 一、本公司基本情況 本公司中文名稱：山東新華製藥股份有限公司 本公司英文名稱：SHANDONG XINHUA PHARMACEUTICAL COMPANY LIMITED 本公司法定代表人： ...

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，並明確表示不會就本公告全部或任何部份內容而產生或因倚賴該 等內容而引致之任何損失承擔任何責任。 KECK SENG INVESTMENTS (HONG KONG) LIMITED 激成投資（香港）有限公司 （於香港註冊成立之有限公司） 網址: www.keckseng.com.hk （股份代號： 184） 二零二五年中期業績公佈 （未經審核） 激成投資（香港）有限公司（「本公司」）之董事會（「董事會」）欣然公佈本公司與其附屬 公司（「本集團」）截至二零二五年六月三十日止六個月之未經審核簡明綜合中期財務資料。 綜合損益表（未經審核） | | | 截至六月三十日止六個月 | | | --- | --- | --- | --- | | | | 二零二五年 | 二零二四年 | | | 附註 | 千港元 | 千港元 | | 收益 | 3 | 772,570 | 808,981 | | 銷售成本 | | (76,750) | (74,009) | | | | 695,820 | 734,972 | | 其他收益 ...

[Company Information and Report Overview](index=1&type=section&id=%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF%E4%B8%8E%E6%8A%A5%E5%91%8A%E6%A6%82%E8%A7%88) [Corporate Information](index=1&type=section&id=%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E4%BF%A1%E6%81%AF) Peiport Holdings Ltd, a Cayman Islands incorporated company with stock code 2885, presents its unaudited interim financial results for the six months ended June 30, 2025 - Company Name: **Peiport Holdings Ltd.**, Stock Code: **2885**[2](index=2&type=chunk) - Reporting Period: Unaudited interim condensed consolidated financial results for the six months ended **June 30, 2025**[2](index=2&type=chunk) [Basis of Preparation](index=5&type=section&id=%E6%8A%A5%E5%91%8A%E7%BC%96%E5%88%B6%E5%9F%BA%E7%A1%80) The interim financial statements are prepared under HKAS 34 and Listing Rules Appendix D2 on a historical cost basis, presented in Hong Kong dollars and rounded to the nearest thousand - Basis of Preparation: Hong Kong Accounting Standard (HKAS) 34 "Interim Financial Reporting" and Appendix D2 of the Securities Listing Rules[9](index=9&type=chunk) - Accounting Basis: Historical cost basis, presented in Hong Kong dollars, with all values rounded to the nearest thousand[10](index=10&type=chunk) - Changes in Accounting Policies: The amendment to HKAS 21 "Lack of Exchangeability" has **no material impact** on the Group's financial statements[11](index=11&type=chunk)[12](index=12&type=chunk) [Interim Condensed Consolidated Financial Statements](index=1&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=%E4%B8%AD%20%E6%9C%9F%20%E7%B0%A1%20%E6%98%8E%20%E7%B6%9C%20%E5%90%88%20%E6%90%8D%20%E7%9B%8A%20%E5%8F%8A%20%E5%85%B6%20%E4%BB%96%20%E5%85%A8%20%E9%9D%A2%20%E6%94%B6%20%E7%9B%8A%20%E8%A1%A8) For the six months ended June 30, 2025, revenue decreased by 30.3% to HK$96.6 million, gross profit fell to HK$25.7 million, and profit attributable to owners was HK$2.4 million, with basic earnings per share of 0.61 HK cents Key Data from the Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | For the six months ended June 30, 2025 (HK$'000) | For the six months ended June 30, 2024 (HK$'000) | | :--- | :--- | :--- | | Revenue | 96,600 | 138,473 | | Cost of sales | (70,888) | (90,708) | | Gross profit | 25,712 | 47,765 | | Other income and gains, net | 8,128 | 4,338 | | Selling and distribution expenses | (16,529) | (17,899) | | Administrative expenses | (19,503) | (19,976) | | Reversal of/(impairment losses) on financial assets, net | 14,620 | (6,625) | | Other expenses | – | (3,450) | | Finance costs | (333) | (300) | | Profit before tax | 12,095 | 3,853 | | Income tax expense | (9,673) | (984) | | Profit for the period | 2,422 | 2,869 | | Profit attributable to owners of the parent | 2,422 | 2,862 | | Profit attributable to non-controlling interests | – | 7 | | Total comprehensive income for the period | 2,376 | 2,296 | | Basic and diluted earnings per share attributable to ordinary equity holders of the parent | 0.61 HK cents | 0.72 HK cents | [Consolidated Statement of Financial Position](index=3&type=section&id=%E4%B8%AD%20%E6%9C%9F%20%E7%B0%A1%20%E6%98%8E%20%E7%B6%9C%20%E5%90%88%20%E8%B2%A1%20%E5%8B%99%20%E7%8B%80%20%E6%B3%81%20%E8%A1%A8) As of June 30, 2025, total non-current assets decreased to HK$16.9 million, total current assets slightly increased to HK$378.5 million, and total current liabilities rose to HK$77.5 million, resulting in a slight decline in net assets to HK$313.7 million Key Data from the Consolidated Statement of Financial Position | Metric | As at June 30, 2025 (HK$'000) | As at December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | **Non-current assets** | | | | Property, plant and equipment | 5,275 | 5,382 | | Right-of-use assets | 9,639 | 10,804 | | Intangible assets | 97 | 149 | | Deferred tax assets | 1,918 | 10,795 | | **Total non-current assets** | **16,929** | **27,130** | | **Current assets** | | | | Inventories | 60,514 | 70,473 | | Trade receivables and bills receivable | 46,605 | 38,586 | | Prepayments, deposits and other receivables | 10,886 | 10,006 | | Time deposits with original maturity of more than three months | 54,600 | – | | Cash and cash equivalents | 205,893 | 252,463 | | **Total current assets** | **378,498** | **371,528** | | **Current liabilities** | | | | Trade payables | 14,633 | 14,329 | | Other payables and accruals | 31,306 | 18,327 | | Contract liabilities | 19,170 | 21,765 | | Lease liabilities | 5,785 | 5,007 | | Tax payable | 6,636 | 5,637 | | **Total current liabilities** | **77,530** | **65,065** | | **Net current assets** | **300,968** | **306,463** | | **Total assets less current liabilities** | **317,897** | **333,593** | | **Non-current liabilities** | | | | Lease liabilities | 4,157 | 6,026 | | Deferred tax liabilities | 11 | 14 | | **Total non-current liabilities** | **4,168** | **6,040** | | **Net assets** | **313,729** | **327,553** | | **Total equity** | **313,729** | **327,553** | [Notes to the Interim Condensed Consolidated Financial Statements](index=5&type=section&id=%E4%B8%AD%20%E6%9C%9F%20%E7%B0%A1%20%E6%98%8E%20%E7%B6%9C%20%E5%90%88%20%E8%B2%A1%20%E5%8B%99%20%E5%A0%B1%20%E8%A1%A8%20%E9%99%84%20%E8%A8%BB) [1. Corporate and Group Information](index=5&type=section&id=1.%20%E5%85%AC%20%E5%8F%B8%20%E5%8F%8A%20%E9%9B%86%20%E5%9C%98%20%E8%B3%87%20%E6%96%99) The Group primarily provides thermal imaging, gyro-stabilized imaging, and general aviation products and services, with its ultimate holding company being Peiport Alpha Limited, incorporated in the BVI - The Company is an investment holding company, with principal businesses including thermal imaging, gyro-stabilized imaging, and general aviation products and services[7](index=7&type=chunk) - The Group's ultimate holding company is **Peiport Alpha Limited**, incorporated in the British Virgin Islands[8](index=8&type=chunk) [2.1 Basis of Preparation and Accounting Policies](index=5&type=section&id=2.1%20%E7%B7%A8%20%E8%A3%BD%20%E5%9F%BA%20%E6%BA%96) These interim financial statements are prepared under HKAS 34 and Listing Rules Appendix D2 on a historical cost basis in HKD, with no material impact from newly adopted amended HKFRSs - Basis of Preparation: In accordance with Hong Kong Accounting Standard 34 issued by the HKICPA and Appendix D2 of the Securities Listing Rules[9](index=9&type=chunk) - Accounting Policies: Consistent with the annual consolidated financial statements for the year ended December 31, 2024, except for the adoption of amended HKFRSs this period[11](index=11&type=chunk) - The amendment to HKAS 21 "Lack of Exchangeability" has **no material impact** on the Group's unaudited interim condensed consolidated financial statements[12](index=12&type=chunk) [3. Operating Segment Information](index=6&type=section&id=3.%20%E7%B6%93%20%E7%87%9F%20%E5%88%86%20%E9%83%A8%20%E8%B3%87%20%E6%96%99) The Group operates in thermal imaging, gyro-stabilized imaging, and general aviation, but does not present segment information due to resource integration; revenue from Mainland China, Hong Kong & Macau, and overseas all declined - The Group is principally engaged in thermal imaging products and services, gyro-stabilized imaging products and services, and general aviation products and services[13](index=13&type=chunk) - No operating segment information is presented due to resource integration and the absence of discrete operating segment data[13](index=13&type=chunk) [Geographical Information](index=6&type=section&id=%E5%9C%B0%20%E5%8D%80%20%E8%B3%87%20%E6%96%99) For the six months ended June 30, 2025, revenue from Mainland China was HK$83.2 million, Hong Kong & Macau was HK$11.9 million, and overseas was HK$1.5 million, all showing a year-on-year decline Revenue from External Customers (by location) | Region | For the six months ended June 30, 2025 (HK$'000) | For the six months ended June 30, 2024 (HK$'000) | | :--- | :--- | :--- | | Mainland China | 83,227 | 91,632 | | Hong Kong and Macau | 11,913 | 44,269 | | Overseas | 1,460 | 2,572 | | **Total** | **96,600** | **138,473** | Non-current Assets (by location) | Region | As at June 30, 2025 (HK$'000) | As at December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | Mainland China | 8,520 | 8,170 | | Hong Kong | 6,491 | 8,165 | | **Total** | **15,011** | **16,335** | [Information about Major Customers](index=7&type=section&id=%E4%B8%BB%20%E8%A6%81%20%E5%AE%A2%20%E6%88%B6%20%E8%B3%87%20%E6%96%99) During the period, Customer A and Customer B became major customers with revenues of HK$32.8 million and HK$28.4 million respectively, while prior-period major customer C was not disclosed this period Revenue from Major Customers | Customer | For the six months ended June 30, 2025 (HK$'000) | For the six months ended June 30, 2024 (HK$'000) | | :--- | :--- | :--- | | Customer A | 32,794 | 14,648 | | Customer B | 28,425 | N/A* | | Customer C | N/A* | 15,923 | *N/A indicates that the revenue did not individually account for 10% or more of the Group's revenue [4. Revenue, Other Income and Gains, Net](index=7&type=section&id=4.%20%E6%94%B6%20%E7%9B%8A%E3%80%81%E5%85%B6%20%E4%BB%96%20%E6%94%B6%20%E5%85%A5%20%E5%8F%8A%20%E6%94%B6%20%E7%9B%8A%20%E6%B7%A8%20%E9%A1%8D) Total revenue decreased by 30.3% to HK$96.6 million, driven by a 90.8% drop in gyro-stabilized imaging revenue, while other income and gains rose 84.1% to HK$8.1 million due to foreign exchange gains Revenue Analysis | Business Segment | For the six months ended June 30, 2025 (HK$'000) | For the six months ended June 30, 2024 (HK$'000) | | :--- | :--- | :--- | | **Thermal imaging products and services** | | | | — Sales of goods | 18,295 | 23,328 | | — Provision of repair services | 5,821 | 5,390 | | **Subtotal** | **24,116** | **28,718** | | **Gyro-stabilized imaging products and services** | | | | — Sales of goods | – | 26,806 | | — Provision of repair services | 3,616 | 12,220 | | **Subtotal** | **3,616** | **39,026** | | **General aviation products and services** | | | | — Sales of goods | 68,231 | 68,984 | | — Provision of repair services | 637 | 321 | | **Subtotal** | **68,868** | **69,305** | | Others | – | 1,424 | | **Total** | **96,600** | **138,473** | Other Income and Gains, Net | Item | For the six months ended June 30, 2025 (HK$'000) | For the six months ended June 30, 2024 (HK$'000) | | :--- | :--- | :--- | | Bank interest income | 3,215 | 4,100 | | Government grants | 48 | 44 | | Net foreign exchange differences | 4,731 | – | | Others | 134 | 194 | | **Total** | **8,128** | **4,338** | - Revenue from sales of goods is recognized at a point in time, while revenue from repair services is recognized over time[17](index=17&type=chunk) [5. Profit Before Tax](index=8&type=section&id=5.%20%E9%99%A4%20%E7%A8%85%20%E5%89%8D%20%E6%BA%A2%20%E5%88%A9) Profit before tax was HK$12.1 million, positively impacted by a net reversal of impairment loss on financial assets of HK$14.6 million and net exchange gains of HK$4.7 million, offsetting lower inventory and employee benefit costs Adjustments to Profit Before Tax | Item | For the six months ended June 30, 2025 (HK$'000) | For the six months ended June 30, 2024 (HK$'000) | | :--- | :--- | :--- | | Cost of inventories sold | 65,961 | 83,948 | | Cost of services provided | 4,927 | 6,760 | | Depreciation of property, plant and equipment | 464 | 938 | | Depreciation of right-of-use assets | 3,246 | 3,485 | | Amortisation of intangible assets | 56 | 143 | | Research and development costs | 6,239 | 7,537 | | Reversal of/(impairment losses) on financial assets, net | (14,620) | 6,625 | | Net provision for inventories | 2,231 | 1,187 | | Lease payments for lease liabilities | 72 | – | | Total employee benefit expense | 26,256 | 30,468 | | Net foreign exchange differences | (4,731) | 3,428 | [6. Income Tax](index=9&type=section&id=6.%20%E6%89%80%20%E5%BE%97%20%E7%A8%85) Income tax expense surged to HK$9.7 million due to higher pre-tax profit and an increased effective tax rate, with Hong Kong profits tax at 16.5% (8.25% on the first HK$2 million) and Mainland China at 25% (20% for small enterprises) - Hong Kong profits tax rate: **16.5%**, with one subsidiary taxed at **8.25%** on the first HK$2,000,000 of assessable profits[20](index=20&type=chunk) - Mainland China corporate income tax rate: **25%**, with certain subsidiaries qualifying as small and micro enterprises taxed at a lower rate of **20%** on taxable income up to RMB3,000,000[21](index=21&type=chunk) Income Tax Expense | Item | For the six months ended June 30, 2025 (HK$'000) | For the six months ended June 30, 2024 (HK$'000) | | :--- | :--- | :--- | | Current | 866 | 3,439 | | Deferred | 8,807 | (2,455) | | **Total tax expense for the period** | **9,673** | **984** | [7. Dividends](index=9&type=section&id=7.%20%E8%82%A1%20%E6%81%AF) The Board declared an interim dividend of 5.40 HK cents per ordinary share for the six months ended June 30, 2025, totaling approximately HK$21.6 million, whereas no dividend was declared in the prior period - The Board declared an interim dividend of **5.40 HK cents** per ordinary share for the six months ended June 30, 2025[24](index=24&type=chunk) - The total interim dividend amounts to approximately **HK$21,600,000**, compared to no dividend in the same period of 2024[24](index=24&type=chunk) [8. Earnings Per Share Attributable to Ordinary Equity Holders of the Parent](index=9&type=section&id=8.%20%E6%AF%8D%20%E5%85%AC%20%E5%8F%B8%20%E6%99%AE%20%E9%80%9A%20%E6%AC%8A%20%E7%9B%8A%20%E6%8C%81%20%E6%9C%89%20%E4%BA%BA%20%E6%87%89%20%E4%BD%94%20%E6%AF%8F%20%E8%82%A1%20%E7%9B%88%20%E5%88%A9) For the six months ended June 30, 2025, basic earnings per share decreased to 0.61 HK cents from 0.72 HK cents in the prior period, based on a profit of HK$2.422 million and 400 million weighted average shares Earnings Per Share | Metric | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Profit attributable to ordinary equity holders of the parent | HK$2,422,000 | HK$2,862,000 | | Weighted average number of ordinary shares in issue | 400,000,000 shares | 400,000,000 shares | | **Basic earnings per share** | **0.61 HK cents** | **0.72 HK cents** | - The Group had no potential dilutive ordinary shares in issue during the current or prior period, thus basic and diluted earnings per share are the same[26](index=26&type=chunk) [9. Trade Receivables and Bills Receivable](index=10&type=section&id=9.%20%E8%B2%BF%20%E6%98%93%20%E6%87%89%20%E6%94%B6%20%E6%AC%BE%20%E9%A0%85%20%E5%8F%8A%20%E6%87%89%20%E6%94%B6%20%E7%A5%A8%20%E6%93%9A) As of June 30, 2025, trade and bills receivable totaled HK$46.6 million, an increase from HK$38.6 million at year-end 2024, mainly due to a significant rise in bills receivable, with credit periods typically ranging from one to three months Trade Receivables and Bills Receivable | Item | As at June 30, 2025 (HK$'000) | As at December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | Trade receivables | 27,869 | 53,174 | | Bills receivable | 24,517 | 5,588 | | Subtotal | 52,386 | 58,762 | | Impairment | (5,781) | (20,176) | | **Total** | **46,605** | **38,586** | - The Group's trading terms with its customers are mainly on credit, with a credit period generally of one to three months[27](index=27&type=chunk) Ageing Analysis of Trade Receivables and Bills Receivable | Ageing | As at June 30, 2025 (HK$'000) | As at December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | Less than three months | 17,358 | 18,561 | | Three to six months | 20,917 | 3,830 | | Six to twelve months | 4,202 | 1,839 | | Over one year | 4,128 | 14,356 | | **Total** | **46,605** | **38,586** | [10. Trade Payables](index=11&type=section&id=10.%20%E8%B2%BF%20%E6%98%93%20%E6%87%89%20%E4%BB%98%20%E6%AC%BE%20%E9%A0%85) As of June 30, 2025, trade payables totaled HK$14.6 million, remaining stable compared to HK$14.3 million at year-end 2024; these payables are non-interest-bearing and are normally settled within 30 to 90 days Ageing Analysis of Trade Payables | Ageing | As at June 30, 2025 (HK$'000) | As at December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | Within one month | 3,679 | 787 | | One to three months | 732 | 2,798 | | Over three months | 10,222 | 10,744 | | **Total** | **14,633** | **14,329** | - Trade payables are non-interest-bearing and are normally settled on 30 to 90-day terms[29](index=29&type=chunk) [11. Share Capital](index=11&type=section&id=11.%20%E8%82%A1%20%E6%9C%AC) As of June 30, 2025, the Company's issued and fully paid share capital remained unchanged from year-end 2024, consisting of 400,000,000 ordinary shares of HK$0.01 each, totaling HK$4.0 million Share Capital Composition | Item | As at June 30, 2025 (HK$'000) | As at December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | Issued and fully paid ordinary shares (400,000,000 shares of HK$0.01 each) | 4,000 | 4,000 | [12. Approval of the Unaudited Interim Condensed Consolidated Financial Statements](index=11&type=section&id=12.%20%E6%89%B9%20%E5%87%86%20%E6%9C%AA%20%E7%B6%93%20%E5%AF%A9%20%E6%A0%B8%20%E4%B8%AD%20%E6%9C%9F%20%E7%B0%A1%20%E6%98%8E%20%E7%B6%9C%20%E5%90%88%20%E8%B2%A1%20%E5%8B%99%20%E5%A0%B1%20%E8%A1%A8) The unaudited interim condensed consolidated financial statements were approved and authorised for issue by the Board of Directors on August 26, 2025 - The unaudited interim condensed consolidated financial statements were approved and authorised for issue by the Board of Directors on **August 26, 2025**[31](index=31&type=chunk) [Management Discussion and Analysis](index=12&type=section&id=%E7%AE%A1%20%E7%90%86%20%E5%B1%A4%20%E8%A8%8E%20%E8%AB%96%20%E5%8F%8A%20%E5%88%86%20%E6%9E%90) [Business Review](index=12&type=section&id=%E6%A5%AD%20%E5%8B%99%20%E5%9B%9E%20%E9%A1%A7) In H1 2025, the Group faced macroeconomic challenges, resulting in a 30.3% revenue decline to HK$96.6 million and a 17.2% drop in net profit attributable to owners to HK$2.4 million, with a significant downturn in the gyro-stabilized imaging segment - The Group's performance in the first half of 2025 was challenged by macroeconomic factors including high interest rates, trade tariffs, energy prices, and geopolitical conflicts[32](index=32&type=chunk) H1 Performance Overview | Metric | For the six months ended June 30, 2025 | Y-o-Y Change | | :--- | :--- | :--- | | Revenue | Approx. HK$96.6 million | Decreased by approx. 30.3% | | Net profit attributable to owners of the parent | Approx. HK$2.4 million | Decreased by approx. 17.2% | [Business Segment Performance](index=12&type=section&id=%E6%A5%AD%20%E5%8B%99%20%E6%9D%BF%20%E5%A1%8A%20%E8%A1%A8%20%E7%8F%BE) Revenue from thermal imaging products and services decreased by 16.0%, gyro-stabilized imaging products and services plummeted by 90.8%, while general aviation products and services remained relatively stable with a slight 0.7% decline [(1) Thermal Imaging Products and Services](index=12&type=section&id=(1)%20%E7%86%B1%20%E6%88%90%20%E5%83%8F%20%E7%94%A2%20%E5%93%81%20%E5%8F%8A%20%E6%8F%90%20%E4%BE%9B%20%E6%9C%8D%20%E5%8B%99) This segment's revenue decreased by approximately 16.0% to HK$24.2 million, primarily due to reduced sales of thermal imaging products to existing customers, and it accounted for 25.1% of total Group revenue - Revenue decreased by approximately **16.0%** to approximately **HK$24.2 million**, mainly due to a decrease in revenue from the sale of thermal imaging products to existing customers[33](index=33&type=chunk) - This business segment accounted for approximately **25.1%** of the Group's revenue (prior period: 20.8%)[33](index=33&type=chunk) [(2) Gyro-stabilized Imaging Products and Services](index=13&type=section&id=(2)%20%E8%87%AA%20%E7%A9%A9%20%E5%AE%9A%20%E6%88%90%20%E5%83%8F%20%E7%94%A2%20%E5%93%81%20%E5%8F%8A%20%E6%8F%90%20%E4%BE%9B%20%E6%9C%8D%20%E5%8B%99) This segment's revenue plummeted by approximately 90.8% year-on-year to HK$3.6 million, mainly due to decreased sales of vessel-mounted gyro-stabilized imaging products, accounting for 3.7% of total Group revenue - Revenue significantly decreased year-on-year by approximately **90.8%** to approximately **HK$3.6 million**, mainly due to a decrease in sales of vessel-mounted gyro-stabilized imaging products[34](index=34&type=chunk) - This business segment accounted for approximately **3.7%** of the Group's revenue (prior period: 28.2%)[34](index=34&type=chunk) [(3) General Aviation Products and Services](index=13&type=section&id=(3)%20%E9%80%9A%20%E7%94%A8%20%E8%88%AA%20%E7%A9%BA%20%E7%94%A2%20%E5%93%81%20%E5%8F%8A%20%E6%8F%90%20%E4%BE%9B%20%E6%9C%8D%20%E5%8B%99) This segment's revenue remained relatively stable, decreasing by only 0.7% year-on-year to HK$68.8 million, and became the primary revenue source, contributing 71.2% to the Group's total revenue - Revenue remained relatively stable, decreasing by approximately **0.7%** year-on-year to approximately **HK$68.8 million**[36](index=36&type=chunk) - This business segment accounted for approximately **71.2%** of the Group's revenue (prior period: 50.0%)[36](index=36&type=chunk) [Prospects](index=14&type=section&id=%E5%89%8D%20%E6%99%AF) Amidst an uncertain macroeconomic environment with slowing global growth, high inflation, and high interest rates, the Group remains cautiously optimistic, focusing on core competencies, brand management, and expanding its market share in East and Southeast Asia through a new Malaysian subsidiary - The global economic outlook remains unpredictable, facing risks from US policy shifts, trade tensions, and geopolitical conflicts[37](index=37&type=chunk) - The World Bank forecasts global economic growth to slow to **2.3%** in 2025, a 0.4% downward revision from its January forecast[37](index=37&type=chunk) - The Group will continue to strengthen its foundation and core competencies, and develop brand management capabilities for its core businesses[38](index=38&type=chunk) - The Group plans to enhance its market presence and expand its sales network in East and Southeast Asia through its newly established subsidiary in Malaysia[38](index=38&type=chunk) [Financial Review](index=14&type=section&id=%E8%B2%A1%20%E5%8B%99%20%E5%9B%9E%20%E9%A1%A7) Total revenue decreased by 30.3%, with declines in both gross profit and gross margin, while other income grew significantly due to exchange gains; despite a sharp rise in income tax expense, profit attributable to owners remained relatively stable [Revenue](index=14&type=section&id=%E6%94%B6%20%E7%9B%8A) The Group's total revenue decreased by 30.3% year-on-year to HK$96.6 million, driven by a 16.0% drop in thermal imaging revenue and a 90.8% plunge in gyro-stabilized imaging revenue, while general aviation revenue remained stable - Total revenue decreased by approximately **30.3%** from approximately HK$138.5 million to approximately **HK$96.6 million**[39](index=39&type=chunk) - Revenue from thermal imaging products and services decreased by **16.0%** to approximately **HK$24.2 million**, mainly due to reduced demand for infrared imagers[39](index=39&type=chunk) - Revenue from gyro-stabilized imaging products and services decreased by **90.8%** to approximately **HK$3.6 million**, mainly due to reduced demand for vessel-mounted gyro-stabilized imaging products[40](index=40&type=chunk) - Revenue from general aviation products and services remained relatively stable at approximately **HK$68.8 million**[41](index=41&type=chunk) [Gross Profit and Gross Profit Margin](index=15&type=section&id=%E6%AF%9B%20%E5%88%A9%20%E5%8F%8A%20%E6%AF%9B%20%E5%88%A9%20%E7%8E%87) The Group's gross profit fell to HK$25.7 million, and the gross profit margin decreased by 7.9 percentage points to 26.6%, with margins for thermal imaging and general aviation declining due to higher costs, while the gyro-stabilized imaging margin improved - Gross profit decreased from approximately HK$47.8 million to approximately **HK$25.7 million**[42](index=42&type=chunk) - Gross profit margin decreased by approximately **7.9 percentage points** from approximately 34.5% to approximately **26.6%**[42](index=42&type=chunk) [(1) Gross Profit Margin of Thermal Imaging Products and Services](index=15&type=section&id=(1)%20%E7%86%B1%20%E6%88%90%20%E5%83%8F%20%E7%94%A2%20%E5%93%81%20%E5%8F%8A%20%E6%9C%8D%20%E5%8B%99%20%E7%9A%84%20%E6%AF%9B%20%E5%88%A9%20%E7%8E%87) The gross profit margin for thermal imaging products and services decreased from 29.5% to 23.6%, primarily due to an increase in the average cost of SF6 gas imagers and infrared imagers - The gross profit margin decreased from approximately **29.5%** to approximately **23.6%**, mainly due to an increase in the average cost of SF6 gas imagers and infrared imagers[43](index=43&type=chunk) [(2) Gross Profit Margin of Gyro-stabilized Imaging Products and Services](index=15&type=section&id=(2)%20%E8%87%AA%20%E7%A9%A9%20%E5%AE%9A%20%E6%88%90%20%E5%83%8F%20%E7%94%A2%20%E5%93%81%20%E5%8F%8A%20%E6%9C%8D%20%E5%8B%99%20%E7%9A%84%20%E6%AF%9B%20%E5%88%A9%20%E7%8E%87) The gross profit margin for gyro-stabilized imaging products and services increased from 44.1% to 50.0%, mainly due to reduced sales of lower-margin vessel-mounted gyro-stabilized imaging products to existing customers - The gross profit margin increased from approximately **44.1%** to approximately **50.0%**, mainly due to a decrease in sales of relatively lower-margin vessel-mounted gyro-stabilized imaging products to existing customers[44](index=44&type=chunk) [(3) Gross Profit Margin of General Aviation Products and Services](index=15&type=section&id=(3)%20%E9%80%9A%20%E7%94%A8%20%E8%88%AA%20%E7%A9%BA%20%E7%94%A2%20%E5%93%81%20%E5%8F%8A%20%E6%9C%8D%20%E5%8B%99%20%E7%9A%84%20%E6%AF%9B%20%E5%88%A9%20%E7%8E%87) The gross profit margin for general aviation products and services decreased from 31.2% to 26.5%, primarily due to an increase in the average cost of four-stroke engine products and engine parts - The gross profit margin decreased from approximately **31.2%** to approximately **26.5%**, mainly due to an increase in the average cost of four-stroke engine products and engine parts[45](index=45&type=chunk) [Other Income and Gains, Net](index=16&type=section&id=%E5%85%B6%20%E4%BB%96%20%E6%94%B6%20%E5%85%A5%20%E5%8F%8A%20%E6%94%B6%20%E7%9B%8A%20%E6%B7%A8%20%E9%A1%8D) Other income and gains increased by 84.1% to HK$8.1 million, primarily due to the recognition of foreign exchange gains during the period - Other income and gains increased by approximately **84.1%** from approximately HK$4.4 million to approximately **HK$8.1 million**, mainly due to the recognition of foreign exchange gains during the period[46](index=46&type=chunk) [Selling and Distribution Expenses](index=16&type=section&id=%E9%8A%B7%20%E5%94%AE%20%E5%8F%8A%20%E5%88%86%20%E9%8A%B7%20%E9%96%8B%20%E6%94%AF) Selling and distribution expenses decreased by 7.8% to HK$16.5 million, mainly due to lower staff costs resulting from reduced salaries and commissions - Selling and distribution expenses decreased by approximately **7.8%** to approximately **HK$16.5 million**, mainly due to lower staff costs from reduced salaries and commissions[47](index=47&type=chunk) [Administrative Expenses](index=16&type=section&id=%E8%A1%8C%20%E6%94%BF%20%E9%96%8B%20%E6%94%AF) Administrative expenses remained relatively stable at HK$19.5 million - Administrative expenses remained relatively stable at approximately **HK$19.5 million**[48](index=48&type=chunk) [Other Expenses](index=16&type=section&id=%E5%85%B6%20%E4%BB%96%20%E9%96%8B%20%E6%94%AF) Other expenses decreased by approximately HK$3.5 million, primarily because there were no foreign exchange losses in the current period, compared to a loss of approximately HK$3.4 million in the prior period - Other expenses decreased by approximately **HK$3.5 million**, mainly due to the absence of foreign exchange losses in the current period (compared to a loss of approximately HK$3.4 million in the prior period)[49](index=49&type=chunk) [Income Tax Expense](index=16&type=section&id=%E6%89%80%20%E5%BE%97%20%E7%A8%85%20%E9%96%8B%20%E6%94%AF) Income tax expense increased significantly by 870.0% to HK$9.7 million, mainly due to higher profit before tax and an increase in the effective tax rate from 25.5% to 80.0% - Income tax expense increased by approximately **870.0%** to approximately **HK$9.7 million**[50](index=50&type=chunk) - The increase was due to higher profit before tax and a rise in the effective tax rate from approximately **25.5%** to approximately **80.0%**[50](index=50&type=chunk) [Profit for the Period Attributable to Owners of the Parent](index=16&type=section&id=%E6%AF%8D%20%E5%85%AC%20%E5%8F%B8%20%E6%93%81%20%E6%9C%89%20%E4%BA%BA%20%E6%87%89%20%E4%BD%94%20%E6%9C%9F%20%E5%85%A7%20%E6%BA%A2%20%E5%88%A9) Profit for the period attributable to owners of the parent remained relatively stable at HK$2.4 million - Profit for the period attributable to owners of the parent remained relatively stable at approximately **HK$2.4 million** (prior period: HK$2.9 million)[51](index=51&type=chunk) [Liquidity and Financial Resources](index=17&type=section&id=%E6%B5%81%20%E5%8B%95%20%E8%B3%87%20%E9%87%91%20%E5%8F%8A%20%E8%B2%A1%20%E5%8B%99%20%E8%B3%87%20%E6%BA%90) The Group maintained a healthy liquidity position with working capital funded by internal resources, experiencing a slight decrease in net current assets and cash, while operating cash flow turned positive and investing cash outflow increased - The Group maintained a **healthy liquidity position**, with working capital primarily funded by internal resources[52](index=52&type=chunk) - Net current assets were approximately **HK$301.0 million** (December 31, 2024: HK$306.5 million)[52](index=52&type=chunk) - Cash and cash equivalents were approximately **HK$205.9 million**, a decrease of approximately HK$46.6 million from year-end 2024, and were mainly denominated in USD[52](index=52&type=chunk) - Net cash from operating activities was approximately **HK$10.0 million** (prior period: net cash used of approx. HK$16.3 million), mainly from decreases in inventories and trade receivables[53](index=53&type=chunk) - Net cash used in investing activities was approximately **HK$54.9 million** (prior period: net cash generated of approx. HK$38.9 million), mainly for investment in time deposits[53](index=53&type=chunk) - Net cash used in financing activities was approximately **HK$3.2 million**, mainly for the principal portion of lease payments[53](index=53&type=chunk) [Contingent Liabilities](index=17&type=section&id=%E6%88%96%20%E7%84%B6%20%E8%B2%A0%20%E5%82%B5) As of June 30, 2025, the Group had no significant contingent liabilities - As at June 30, 2025, the Group had **no significant contingent liabilities**[54](index=54&type=chunk) [Capital Structure](index=17&type=section&id=%E8%B3%87%20%E6%9C%AC%20%E6%9E%B6%20%E6%A7%8B) There were no significant changes in the Company's capital structure during the six months ended June 30, 2025 - During the six months ended June 30, 2025, there were **no significant changes** in the Company's capital structure[55](index=55&type=chunk) [Foreign Exchange Risk](index=17&type=section&id=%E5%A4%96%20%E5%8C%AF%20%E9%A2%A8%20%E9%9A%AA) The Group faces transactional currency risk from business transactions and costs denominated in USD and EUR, as well as from assets and liabilities denominated in USD, and closely monitors exchange rate movements to manage this risk - The Group is exposed to transactional currency risk primarily from business transactions and costs of sales denominated in **USD and EUR**[56](index=56&type=chunk) - Foreign currency risk also arises from assets and liabilities denominated in **USD**[56](index=56&type=chunk) - The Group closely monitors exchange rate movements to manage its foreign currency risk[56](index=56&type=chunk) [Pledge of Assets](index=18&type=section&id=%E8%B3%87%20%E7%94%A2%20%E6%8A%B5%20%E6%8A%BC) As of June 30, 2025, the Group had not pledged any of its assets - As at June 30, 2025, the Group had **not pledged any of its assets**[57](index=57&type=chunk) [Gearing Ratio](index=18&type=section&id=%E8%B3%87%20%E7%94%A2%20%E8%B2%A0%20%E5%82%B5%20%E6%AF%94%20%E7%8E%87) The gearing ratio is not applicable to the Group as it had no bank borrowings - As the Group had **no bank borrowings**, the gearing ratio is not applicable[58](index=58&type=chunk) [Reorganisation and Material Investments](index=18&type=section&id=%E9%87%8D%20%E7%B5%84%20%E5%8F%8A%20%E9%87%8D%20%E5%A4%A7%20%E6%8A%95%20%E8%B3%87) During the period, the Group did not have any reorganisation or material investments - During the period, the Group had **no reorganisation or material investments**[59](index=59&type=chunk) [Employees and Remuneration Policies](index=18&type=section&id=%E5%83%B1%20%E5%93%A1%20%E5%8F%8A%20%E8%96%AA%20%E9%85%AC%20%E6%94%BF%20%E7%AD%96) As of June 30, 2025, the Group had 140 employees with total staff costs of approximately HK$26.3 million, and its remuneration policy aligns with relevant laws, market conditions, and employee performance - As at June 30, 2025, the Group had a total of **140 employees** (December 31, 2024: 142)[60](index=60&type=chunk) - During the period, the Group's total staff costs (excluding directors' and chief executive's remuneration) were approximately **HK$26.3 million** (prior period: HK$30.5 million)[60](index=60&type=chunk) - The remuneration policy complies with relevant laws, market conditions, and employee performance[60](index=60&type=chunk) [Other Information](index=18&type=section&id=%E5%85%B6%20%E4%BB%96%20%E8%B3%87%20%E6%96%99) [Compliance with the Corporate Governance Code](index=18&type=section&id=%E9%81%B5%20%E5%AE%88%20%E4%BC%81%20%E6%A5%AD%20%E7%AE%A1%20%E6%B2%BB%20%E5%AE%88%20%E5%89%87) The Company has complied with all applicable code provisions of the Corporate Governance Code as set out in Appendix C1 to the Listing Rules of The Stock Exchange of Hong Kong Limited for the six months ended June 30, 2025 - The Company has complied with all applicable code provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules throughout the period[61](index=61&type=chunk) [Model Code for Securities Transactions](index=19&type=section&id=%E8%AD%89%20%E5%88%B8%20%E4%BA%A4%20%E6%98%93%20%E7%9A%84%20%E6%A8%99%20%E6%BA%96%20%E5%AE%88%20%E5%89%87) The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules, and all Directors have confirmed their compliance with the code during the period - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules[62](index=62&type=chunk) - All Directors have confirmed their compliance with the required standards set out in the Model Code throughout the period[62](index=62&type=chunk) [Audit Committee and Review of Interim Results](index=19&type=section&id=%E5%AF%A9%20%E6%A0%B8%20%E5%A7%94%20%E5%93%A1%20%E6%9C%83%20%E5%8F%8A%20%E5%AF%A9%20%E9%96%B1%20%E4%B8%AD%20%E6%9C%9F%20%E6%A5%AD%20%E7%B8%BE) The Audit Committee has reviewed the Group's unaudited interim condensed consolidated financial statements for the six months ended June 30, 2025, and considers them to be prepared in accordance with appropriate accounting policies and applicable Listing Rules with adequate disclosure - The Audit Committee comprises three independent non-executive Directors, with Ms. Yang Xiaofu as the chairlady[63](index=63&type=chunk) - The Audit Committee has reviewed this interim results announcement and considers it to be prepared in accordance with appropriate accounting policies and applicable Listing Rules, with adequate disclosure made[63](index=63&type=chunk) [Interim Dividend](index=19&type=section&id=%E4%B8%AD%20%E6%9C%9F%20%E8%82%A1%20%E6%81%AF) The Board has resolved to declare an interim dividend of 5.40 HK cents per share, totaling approximately HK$21.6 million, payable on or before September 26, 2025, to shareholders on the register as of September 17, 2025 - The Board has resolved to declare an interim dividend of **5.40 HK cents** per share (2024 interim: Nil), totaling approximately **HK$21,600,000**[64](index=64&type=chunk) - The interim dividend is expected to be paid on or before **September 26, 2025**, with a record date of **September 17, 2025**[64](index=64&type=chunk) [Closure of Register of Members](index=19&type=section&id=%E6%9A%AB%20%E5%81%9C%20%E8%BE%A6%20%E7%90%86%20%E8%82%A1%20%E4%BB%BD%20%E9%81%8E%20%E6%88%B6%20%E7%99%BB%20%E8%A8%98%20%E6%89%8B%20%E7%BA%8C) To qualify for the interim dividend, the register of members will be closed from September 15 to September 17, 2025, and all transfer documents must be lodged by 4:00 p.m. on September 12, 2025 - The register of members will be closed from **Monday, September 15, 2025 to Wednesday, September 17, 2025**[65](index=65&type=chunk) - To qualify for the interim dividend, all transfer documents must be lodged with the Hong Kong share registrar no later than **4:00 p.m. on Friday, September 12, 2025**[65](index=65&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=20&type=section&id=%E8%B3%BC%20%E8%B2%B7%E3%80%81%E5%87%BA%20%E5%94%AE%20%E6%88%96%20%E8%B4%96%20%E5%9B%9E%20%E6%9C%AC%20%E5%85%AC%20%E5%8F%B8%20%E4%B8%8A%20%E5%B8%82%20%E8%AD%89%20%E5%88%B8) Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's 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[66](index=66&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=20&type=section&id=%E5%88%8A%20%E7%99%BC%20%E4%B8%AD%20%E6%9C%9F%20%E6%A5%AD%20%E7%B8%BE%20%E5%85%AC%20%E5%91%8A%20%E5%8F%8A%20%E4%B8%AD%20%E6%9C%9F%20%E5%A0%B1%20%E5%91%8A) The interim results announcement for the six months ended June 30, 2025, is published on the websites of the HKEX and the Company, and the 2025 Interim Report will be dispatched to shareholders and made available online in due course - The interim results announcement is published on the HKEX website at www.hkexnews.hk and the Company's website at www.peiport.com[67](index=67&type=chunk) - The 2025 Interim Report containing all required information will be dispatched to shareholders and made available on the above websites in due course[67](index=67&type=chunk) [Appreciation](index=20&type=section&id=%E8%87%B4%20%E8%AC%9D) The Board expresses its sincere gratitude to the management, staff, shareholders, customers, suppliers, business partners, and other stakeholders - The Board expresses its sincere gratitude to the Group's management and staff for their hard work and dedication, and to shareholders, customers, suppliers, business partners, and other stakeholders for their continuous support[68](index=68&type=chunk)

Company Information [Board Members and Committees](index=3&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83%E6%88%90%E5%93%A1%E5%8F%8A%E5%A7%94%E5%93%A1%E6%9C%83) This section outlines the company's board members and the composition of its various governance committees - **Pony Ma** serves as Chairman and Executive Director[4](index=4&type=chunk) - Key committee chairs include **Yang Siu Shun** (Audit Committee), **Charles St Leger Searle** (Corporate Governance Committee), **Martin Lau** (Investment Committee), **Pony Ma** (Nomination Committee), and **Ian Charles Stone** (Remuneration Committee)[4](index=4&type=chunk) [Company Basic Information](index=3&type=section&id=%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E4%BF%A1%E6%81%AF) This section provides essential company details, such as principal bankers, registered office, headquarters, share registrar, website, and stock codes - Principal bankers include **Bank of China Limited** and **The Hongkong and Shanghai Banking Corporation Limited**[5](index=5&type=chunk) - Registered office is in the Cayman Islands, with group headquarters in **Tencent Binhai Building, Nanshan District, Shenzhen, China**[5](index=5&type=chunk) - Company website is **www.tencent.com**, with stock codes **700 (HKD counter)** and **80700 (RMB counter)**[5](index=5&type=chunk) Financial Performance Summary [Q2 2025 Financial Performance](index=4&type=section&id=%E4%BA%8C%E9%9B%B6%E4%BA%8C%E4%BA%94%E5%B9%B4%E7%AC%AC%E4%BA%8C%E5%AD%A3%E5%BA%A6%E8%B2%A1%E5%8B%99%E8%A1%A8%E7%8F%BE) This section outlines the company's unaudited Q2 2025 financial performance, highlighting double-digit year-on-year growth in key profitability metrics 2025 Q2 Key Financial Data (Unaudited) | Indicator | June 30, 2025 (RMB millions) | June 30, 2024 (RMB millions) | YoY Change | March 31, 2025 (RMB millions) | QoQ Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 184,504 | 161,117 | 15% | 180,022 | 2% | | Gross Profit | 105,013 | 85,895 | 22% | 100,493 | 4% | | Operating Profit | 60,104 | 50,732 | 18% | 57,566 | 4% | | Profit Attributable to Equity Holders | 55,628 | 47,630 | 17% | 47,821 | 16% | | Basic EPS (RMB per share) | 6.115 | 5.112 | 20% | 5.252 | 16% | | Non-IFRS Profit Attributable to Equity Holders | 63,052 | 57,313 | 10% | 61,329 | 3% | [H1 2025 Financial Performance](index=5&type=section&id=%E4%BA%8C%E9%9B%B6%E4%BA%8C%E4%BA%94%E5%B9%B4%E4%B8%8A%E5%8D%8A%E5%B9%B4%E8%B2%A1%E5%8B%99%E8%A1%A8%E7%8F%BE) This section summarizes the company's unaudited H1 2025 financial performance, highlighting double-digit year-on-year growth in key profitability metrics 2025 H1 Key Financial Data (Unaudited) | Indicator | June 30, 2025 (RMB millions) | June 30, 2024 (RMB millions) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 364,526 | 320,618 | 14% | | Gross Profit | 205,506 | 169,765 | 21% | | Operating Profit | 117,670 | 103,288 | 14% | | Profit Attributable to Equity Holders | 103,449 | 89,519 | 16% | | Basic EPS (RMB per share) | 11.367 | 9.590 | 19% | | Non-IFRS Profit Attributable to Equity Holders | 124,381 | 107,578 | 16% | Chairman's Report [Performance Overview](index=6&type=section&id=%E6%A5%AD%E7%B8%BE%E6%A6%82%E8%A7%88) The Chairman's report overviews the Group's unaudited Q2 and H1 2025 earnings, emphasizing significant growth in both IFRS and non-IFRS profit - Profit attributable to equity holders: **RMB 55.628 billion** in Q2 2025, up **17% YoY**, and **RMB 103.449 billion** in H1 2025, up **16% YoY**[12](index=12&type=chunk) - Non-IFRS profit attributable to equity holders: **RMB 63.052 billion** in Q2 2025, up **10% YoY**, and **RMB 124.381 billion** in H1 2025, up **16% YoY**[12](index=12&type=chunk) [Operating Data](index=6&type=section&id=%E7%B6%93%E7%87%9F%E8%B3%87%E6%96%99) This section presents key operating metrics, including monthly active accounts for WeChat, QQ mobile, and fee-based value-added services subscribers Key Operating Data (Millions) | Indicator | June 30, 2025 | June 30, 2024 | YoY Change | March 31, 2025 | QoQ Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Combined MAU of WeChat and Weixin | 1,411 | 1,371 | 3% | 1,402 | 0.6% | | Mobile MAU of QQ | 532 | 571 | -7% | 534 | -0.4% | | Fee-based VAS Subscriptions | 264 | 263 | 0.4% | 268 | -1% | [Business Review and Outlook](index=6&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7%E5%8F%8A%E5%B1%95%E6%9C%9B) This section reviews Q2 2025 business performance, emphasizing AI investment, gaming breakthroughs, rapid advertising growth, and AI-native application promotion - In Q2 2025, the company continued to invest in and benefit from AI, achieving double-digit percentage year-on-year growth in both revenue and non-IFRS operating profit[14](index=14&type=chunk) - Gaming business performed strongly in both user and revenue aspects, with evergreen games like "Honor of Kings" and "Peace Elite" evolving into platform-based services with increased AI applications, and new games like "Delta Force" achieving breakthroughs[14](index=14&type=chunk) - Marketing services revenue grew rapidly by upgrading the advertising basic model, enhancing ad effectiveness across various traffic platforms, and further increasing AI application in ad creation, placement, recommendation, and performance analysis[14](index=14&type=chunk)[16](index=16&type=chunk) - Weixin enriched its AI features, offering intelligent keyword search, smart customer service replies, and automatic text summarization for Video Accounts content[15](index=15&type=chunk) - Mini Games' total gross receipts increased by **20% YoY**; domestic game "Delta Force" achieved over **20 million average DAU** in July 2025; international game "Clash Royale" reached a **seven-year high in monthly gross receipts** in June 2025[16](index=16&type=chunk) - The **Hunyuan 3D model** ranked first on Hugging Face for its industry-leading geometric precision, texture realism, and instruction-to-3D alignment capabilities, being increasingly adopted by game developers, 3D printing companies, and professional designers[16](index=16&type=chunk) [Dividends and Acknowledgements](index=8&type=section&id=%E8%82%A1%E6%81%AF%E5%8F%8A%E8%87%B4%E8%AC%9D) The Board did not declare an interim dividend, and the Chairman expressed gratitude to stakeholders, reaffirming the core mission of "User-oriented, Tech for Good" - The Board did not declare any interim dividend for the six months ended June 30, 2025[18](index=18&type=chunk) - The company will continue to uphold its core mission of "User-oriented, Tech for Good," consistently delivering meaningful impact through technology, driving innovation, and adapting to societal needs[19](index=19&type=chunk) Management Discussion and Analysis [Comparison of Q2 2025 and Q2 2024](index=9&type=section&id=%E4%BA%8C%E9%9B%B6%E4%BA%8C%E4%BA%94%E5%B9%B4%E7%AC%AC%E4%BA%8C%E5%AD%A3%E8%88%87%E4%BA%8C%E9%9B%B6%E4%BA%8C%E5%9B%9B%E5%B9%B4%E7%AC%AC%E4%BA%8C%E5%AD%A3%E7%9A%84%E6%AF%94%E8%BC%83) This section analyzes year-on-year changes in Q2 2025 versus Q2 2024 financial indicators, covering revenue, costs, gross profit, expenses, and overall profitability - Revenue: Q2 2025 revenue increased by **15% YoY** to **RMB 184.5 billion**[23](index=23&type=chunk) - Value-added services revenue increased by **16% YoY** to **RMB 91.4 billion**, with domestic games revenue growing by **17%** and international games revenue by **35%** (or **33%** at constant exchange rates)[25](index=25&type=chunk) - Marketing services revenue increased by **20% YoY** to **RMB 35.8 billion**, primarily benefiting from AI-driven advertising platform improvements and enhanced Weixin transaction ecosystem[25](index=25&type=chunk) - FinTech and Business Services revenue increased by **10% YoY** to **RMB 55.5 billion**, driven by consumer loan services, commercial payment activities, wealth management services, and increased enterprise customer demand for AI-related services, including GPU rental and API token usage[25](index=25&type=chunk) - Gross Profit: Q2 2025 gross profit increased by **22% YoY** to **RMB 105 billion**, with gross margin improving from **53%** in the prior year to **57%**[26](index=26&type=chunk) - Selling and marketing expenses: Increased by **3% YoY** to **RMB 9.4 billion**, with the percentage of revenue decreasing from **6%** in the prior year to **5%**[29](index=29&type=chunk) - General and administrative expenses: Increased by **16% YoY** to **RMB 31.9 billion**, due to increased R&D expenses to support AI-related business development and higher employee costs[29](index=29&type=chunk) - Share of profit of associates and joint ventures: Recorded **RMB 4.5 billion** in Q2 2025, compared to **RMB 7.7 billion** in the prior year, mainly due to lower estimated earnings from a large associate[31](index=31&type=chunk) [Comparison of Q2 2025 and Q1 2025](index=13&type=section&id=%E4%BA%8C%E9%9B%B6%E4%BA%8C%E4%BA%94%E5%B9%B4%E7%AC%AC%E4%BA%8C%E5%AD%A3%E8%88%87%E4%BA%8C%E9%9B%B6%E4%BA%8C%E4%BA%94%E5%B9%B4%E7%AC%AC%E4%B8%80%E5%AD%A3%E7%9A%84%E6%AF%94%E8%BC%83) This section analyzes quarter-on-quarter changes in Q2 2025 versus Q1 2025 financial indicators, highlighting seasonal factors and AI capabilities deployment impact - Revenue: Q2 2025 revenue increased by **2% QoQ** to **RMB 184.5 billion**[35](index=35&type=chunk) - Gross Profit: Q2 2025 gross profit increased by **4% QoQ** to **RMB 105 billion**, with gross margin improving from **56%** in the previous quarter to **57%**[36](index=36&type=chunk) - Value-added services revenue decreased by **0.8% QoQ** to **RMB 91.4 billion**, with domestic games revenue declining by **6%** due to post-Chinese New Year seasonality, while international games revenue increased by **13%**[37](index=37&type=chunk) - Marketing services revenue increased by **12% QoQ** to **RMB 35.8 billion**, benefiting from the deployment of AI advertising capabilities and the peak season after Chinese New Year[37](index=37&type=chunk) - Selling and marketing expenses: Increased by **20% QoQ** to **RMB 9.4 billion**, primarily due to increased game-related promotional activities[39](index=39&type=chunk) - General and administrative expenses: Decreased by **5% QoQ** to **RMB 31.9 billion**, mainly due to a high base from a one-off share-based compensation expense at an overseas subsidiary in the previous quarter[39](index=39&type=chunk) [Other Financial Information](index=15&type=section&id=%E5%85%B6%E4%BB%96%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99) This section provides key financial metrics, including EBITDA, adjusted EBITDA, interest expenses, net cash, and capital expenditure, with reconciliation tables Key Financial Indicators (RMB millions) | Indicator | 2025 Q2 | 2025 Q1 | 2024 Q2 | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | :--- | :--- | :--- | | EBITDA | 79,467 | 73,817 | 62,902 | 153,284 | 127,996 | | Adjusted EBITDA | 85,122 | 81,559 | 68,518 | 166,681 | 137,777 | | Adjusted EBITDA Margin | 46% | 45% | 43% | 46% | 43% | | Capital Expenditure | 19,107 | 27,476 | 8,729 | 46,583 | 23,088 | - Capital expenditure primarily includes investments in **IT infrastructure** (including computer equipment, spare parts, and software), **data centers**, **land use rights**, **office parks**, and **intellectual property** (excluding media content)[43](index=43&type=chunk) [Non-IFRS Financial Measures](index=17&type=section&id=%E9%9D%9E%E5%9C%8B%E9%9A%9B%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A%E6%BA%96%E5%89%87%E8%B2%A1%E5%8B%99%E8%A8%88%E9%87%8F) This section explains the purpose of non-IFRS financial measures and provides reconciliation to IFRS, aiding investors in assessing core business performance - Non-IFRS financial measures aim to exclude certain non-cash items and the impact of certain investment-related transactions, providing useful supplementary information for investors to assess the Group's core business performance[44](index=44&type=chunk) - Non-IFRS operating profit was **RMB 69.248 billion** in Q2 2025 and **RMB 138.568 billion** in H1 2025[44](index=44&type=chunk)[47](index=47&type=chunk) - Non-IFRS profit attributable to equity holders was **RMB 63.052 billion** in Q2 2025 and **RMB 124.381 billion** in H1 2025[44](index=44&type=chunk)[47](index=47&type=chunk) [Investments Held](index=20&type=section&id=%E6%89%80%E6%8C%81%E6%8A%95%E8%B3%87) This section discloses the investment portfolio's size, composition, and objectives as of June 30, 2025, including significant investments like Sea Limited - As of June 30, 2025, the Group's investment portfolio was approximately **RMB 948.262 billion**, primarily aimed at strengthening core business leadership and complementing the "Connect" strategy[50](index=50&type=chunk) - Fair value of investments in listed companies (excluding subsidiaries) was **RMB 714.3 billion**; carrying value of investments in unlisted companies (excluding subsidiaries) was **RMB 342.3 billion**[50](index=50&type=chunk) - The Group holds approximately **104 million Class A ordinary shares** of Sea Limited, representing about **17.6%** of its total issued shares, with a carrying value of approximately **RMB 119.4 billion**[53](index=53&type=chunk) - For the six months ended June 30, 2025, the Group recorded a return from its investment portfolio of **RMB 10.647 billion**, an increase of **28% YoY**[54](index=54&type=chunk) [Liquidity and Financial Resources](index=22&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) This section outlines the cash and debt position as of June 30, 2025, along with free cash flow generation and encumbrance information - As of June 30, 2025, the Group's net cash was **RMB 74.6 billion**, with the QoQ decrease primarily due to the payment of the 2024 fiscal year final dividend of **RMB 37.5 billion** in the quarter[56](index=56&type=chunk) - In Q2 2025, the Group generated **free cash flow of RMB 43 billion**[57](index=57&type=chunk) - As of June 30, 2025, the Group pledged partial equity interests in certain investee companies with a total carrying value of approximately **RMB 3.5 billion** to certain investment banks as collateral for obligations under derivative transactions[58](index=58&type=chunk) [Review Report on Interim Financial Information](index=22&type=section&id=%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E7%9A%84%E5%AF%A9%E9%96%B1%E5%A0%B1%E5%91%8A) PricewaterhouseCoopers reviewed the interim financial information, concluding its preparation in accordance with International Accounting Standard 34 "Interim Financial Reporting" - The auditor is **PricewaterhouseCoopers**[59](index=59&type=chunk) - The scope of review is substantially less than an audit conducted in accordance with International Standards on Auditing, thus the auditor cannot guarantee awareness of all significant matters that might be identified in an audit, and therefore does not express an audit opinion[60](index=60&type=chunk) - Based on the review, the auditor found no matters leading them to believe that the Group's interim financial information was not prepared in all material respects in accordance with International Accounting Standard 34 "Interim Financial Reporting"[61](index=61&type=chunk) [Condensed Consolidated Statement of Profit or Loss](index=23&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%94%B6%E7%9B%8A%E8%A1%A8) This section presents the condensed consolidated statement of profit or loss for the three and six months ended June 30, 2025, detailing revenue, costs, expenses, and profit Condensed Consolidated Statement of Profit or Loss Summary (RMB millions) | Indicator | 2025 Q2 | 2024 Q2 | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | :--- | :--- | | Revenue | 184,504 | 161,117 | 364,526 | 320,618 | | Cost of Revenue | (79,491) | (75,222) | (159,020) | (150,853) | | Gross Profit | 105,013 | 85,895 | 205,506 | 169,765 | | Operating Profit | 60,104 | 50,732 | 117,670 | 103,288 | | Profit for the Period | 56,044 | 48,366 | 105,769 | 91,017 | | Profit Attributable to Equity Holders | 55,628 | 47,630 | 103,449 | 89,519 | [Condensed Consolidated Statement of Comprehensive Income](index=24&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) This section presents the condensed consolidated statement of comprehensive income for the three and six months ended June 30, 2025, including profit and other comprehensive income items - Total comprehensive income for the period: **RMB 126.944 billion** in Q2 2025 and **RMB 206.768 billion** in H1 2025[65](index=65&type=chunk) - Net gain from fair value changes of financial assets at fair value through other comprehensive income: **RMB 67.681 billion** in Q2 2025 and **RMB 94.042 billion** in H1 2025[65](index=65&type=chunk) - Total comprehensive income attributable to equity holders: **RMB 122.756 billion** in Q2 2025 and **RMB 198.614 billion** in H1 2025[65](index=65&type=chunk) [Condensed Consolidated Statement of Financial Position](index=26&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) This section provides the condensed consolidated statement of financial position as of June 30, 2025, detailing the composition of assets, liabilities, and equity Condensed Consolidated Statement of Financial Position Summary (RMB millions) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | 2,013,310 | 1,780,995 | | Total Equity | 1,202,849 | 1,053,896 | | Total Liabilities | 810,461 | 727,099 | | Non-current Assets | 1,467,813 | 1,284,815 | | Current Assets | 545,497 | 496,180 | | Non-current Liabilities | 375,350 | 330,190 | | Current Liabilities | 435,111 | 396,909 | - Financial assets at fair value through other comprehensive income increased from **RMB 302.36 billion** as of December 31, 2024, to **RMB 401.756 billion** as of June 30, 2025[67](index=67&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=28&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) This section presents the condensed consolidated statement of changes in equity for the six months ended June 30, 2025, detailing movements in capital, reserves, and non-controlling interests - Total comprehensive income attributable to equity holders for H1 2025 was **RMB 198.614 billion**[73](index=73&type=chunk) - Share repurchases and cancellations in H1 2025 resulted in a **RMB 34.956 billion** reduction in retained earnings[75](index=75&type=chunk) - Cash dividends paid in H1 2025 resulted in a **RMB 37.665 billion** reduction in retained earnings[75](index=75&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=32&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) This section provides the condensed consolidated statement of cash flows for the six months ended June 30, 2025, covering cash flows from operating, investing, and financing activities Condensed Consolidated Statement of Cash Flows Summary (RMB millions) | Indicator | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Net cash flows from operating activities | 151,265 | 126,458 | | Net cash flows used in investing activities | (72,407) | (45,449) | | Net cash flows used in financing activities | (30,111) | (99,781) | | Net increase / (decrease) in cash and cash equivalents | 48,747 | (18,772) | | Cash and cash equivalents at end of period | 182,057 | 153,511 | - Share repurchases paid in H1 2025 amounted to **RMB 34.525 billion**[82](index=82&type=chunk) - Dividends paid to the Company's shareholders in H1 2025 amounted to **RMB 37.535 billion**[82](index=82&type=chunk) Notes to the Interim Financial Information [General Information](index=35&type=section&id=%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) This section introduces the company's registration, listing, principal business activities, and the currency and review status of the interim financial information - Tencent Holdings Limited is incorporated in the Cayman Islands, and its shares have been listed on the Main Board of The Stock Exchange of Hong Kong Limited since June 16, 2004[83](index=83&type=chunk) - The Group primarily provides **Value-Added Services**, **Marketing Services**, and **FinTech and Business Services**[83](index=83&type=chunk) - The interim financial information is unaudited but has been reviewed by the Company's external auditor[85](index=85&type=chunk) [Basis of Preparation and Presentation](index=35&type=section&id=%E7%B7%A8%E8%A3%BD%E5%8F%8A%E5%91%88%E5%88%97%E5%9F%BA%E6%BA%96) This section states that the interim financial information is prepared according to IAS 34 "Interim Financial Reporting" and should be read with the 2024 annual financial statements - The interim financial information is prepared in accordance with **International Accounting Standard 34 "Interim Financial Reporting"** issued by the International Accounting Standards Board[86](index=86&type=chunk) [Significant Accounting Policies Information](index=35&type=section&id=%E9%87%8D%E8%A6%81%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96%E8%B3%87%E6%96%99) This section explains that interim financial information accounting policies are consistent with 2024 financial statements and lists adopted and newly issued standard amendments - The accounting policies and calculation methods used in preparing the interim financial information are consistent in all material respects with those used in the 2024 financial statements, prepared on a historical cost basis and revised for financial assets and liabilities measured at fair value[87](index=87&type=chunk) - The Group first adopted the amendment to **IAS 21 "Lack of Exchangeability"** for the financial year beginning January 1, 2025, which had no significant impact on the interim financial information[90](index=90&type=chunk) - **IFRS 18 "Presentation and Disclosure in Financial Statements"**, effective January 1, 2027, primarily impacts the presentation and disclosure of income and expenses and introduces requirements for disclosing management-defined performance measures, with no significant impact expected on the interim financial information[92](index=92&type=chunk) [Estimates](index=37&type=section&id=%E4%BC%B0%E8%A8%88) This section emphasizes that interim financial information preparation involves management judgments, estimates, and assumptions, with actual results potentially differing - In preparing the interim financial information, the significant judgments made by management in applying the Group's accounting policies and the key sources of estimation uncertainty are the same as those used in the 2024 financial statements[93](index=93&type=chunk) [Financial Risk Management](index=37&type=section&id=%E8%B2%A1%E5%8B%99%E9%A2%A8%E9%9A%AA%E7%AE%A1%E7%90%86) This section discusses the Group's market, credit, and liquidity risks, capital management policy, and fair value measurement hierarchy and methods - The Group's operations are exposed to various financial risks: **market risk** (including foreign exchange risk, price risk, and interest rate risk), **credit risk**, and **liquidity risk**[94](index=94&type=chunk) - For the six months ended June 30, 2025, the Group reported a **net exchange loss of approximately RMB 874 million**[95](index=95&type=chunk) - The Group's capital management policy aims to safeguard its ability to continue as a going concern and support its sustainable development, monitoring its capital through regular review of its total debt/adjusted EBITDA ratio[96](index=96&type=chunk)[98](index=98&type=chunk) - Fair value measurements are categorized into three levels, with Level 3 instruments primarily including investments in unlisted companies, other financial assets, and other financial liabilities classified as financial assets at fair value through profit or loss or financial assets at fair value through other comprehensive income[101](index=101&type=chunk)[109](index=109&type=chunk) [Segment Information and Revenue](index=43&type=section&id=%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99%E5%8F%8A%E6%94%B6%E5%85%A5) This section details the Group's operating segments (VAS, Marketing, FinTech & Business, Others) and their revenue and gross profit contributions by source - The Group had the following reportable segments for the three and six months ended June 30, 2025 and 2024: **Value-Added Services**, **Marketing Services**, **FinTech and Business Services**, and **Others**[114](index=114&type=chunk) 2025 Q2 Segment Revenue (RMB millions) | Segment | Revenue | | :--- | :--- | | Value-Added Services | 91,368 | | Marketing Services | 35,762 | | FinTech and Business Services | 55,536 | | Others | 1,838 | | Total | 184,504 | 2025 H1 Segment Revenue (RMB millions) | Segment | Revenue | | :--- | :--- | | Value-Added Services | 183,501 | | Marketing Services | 67,615 | | FinTech and Business Services | 110,443 | | Others | 2,967 | | Total | 364,526 | - Games revenue: **RMB 59.153 billion** in Q2 2025 and **RMB 118.654 billion** in H1 2025[125](index=125&type=chunk) [Expenses by Nature](index=47&type=section&id=%E6%8C%89%E6%80%A7%E8%B3%AA%E5%8A%83%E5%88%86%E7%9A%84%E9%96%8B%E6%94%AF) This section lists expenses by nature, including transaction costs, employee benefits, content, intangible asset amortization, depreciation, and promotion fees - For the six months ended June 30, 2025, the Group incurred approximately **RMB 39.161 billion** in research and development expenses, primarily comprising **RMB 30.178 billion** in employee benefit expenses[126](index=126&type=chunk) - For the six months ended June 30, 2025, amortization of intangible assets was **RMB 16.120 billion**, mainly related to media content such as long-form video and music content, game licenses, and other content[127](index=127&type=chunk)[129](index=129&type=chunk) [Other Gains / (Losses) Net](index=48&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E2%88%95%EF%BC%88%E8%99%A7%E6%90%8D%EF%BC%89%E5%87%80%E9%A1%8D) This section discloses the composition of other gains / (losses) net, primarily including government grants and tax refunds, and other items - Other gains / (losses) net for Q2 2025 was **RMB (3.578) billion**, and for H1 2025 was **RMB (4.975) billion**[130](index=130&type=chunk) [Investment Gains / (Losses) Net and Others](index=49&type=section&id=%E6%8A%95%E8%B3%87%E6%94%B6%E7%9B%8A%E2%88%95%EF%BC%88%E8%99%A7%E6%90%8D%EF%BC%89%E5%87%80%E9%A1%8D%E5%8F%8A%E5%85%B6%E4%BB%96) This section details investment gains/(losses) net and other items, including disposal gains, fair value changes, impairment provisions, and dividend income - Investment gains / (losses) net and others for H1 2025 was **RMB 4.045 billion**[131](index=131&type=chunk) - Net gain from disposal and deemed disposal of investee companies for H1 2025 was **RMB 251 million**[131](index=131&type=chunk) - Net fair value gain on financial assets at fair value through profit or loss for H1 2025 was **RMB 1.378 billion**[131](index=131&type=chunk) - Share of profit of associates and joint ventures for H1 2025 was **RMB 9.054 billion**[131](index=131&type=chunk) [Finance Costs](index=50&type=section&id=%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) This section discloses the composition of finance costs, primarily including interest and related expenses and net exchange losses - Finance costs for H1 2025 were **RMB 7.801 billion**, mainly comprising interest and related expenses and net exchange losses[133](index=133&type=chunk) [Taxation](index=51&type=section&id=%E7%A8%85%E9%A0%85) This section explains income tax expense recognition, applicable tax rates, incentives, and the impact of VAT, other taxes, and the OECD Pillar Two template - The corporate income tax rate in China is generally **25%**, with certain subsidiaries approved as high-tech enterprises eligible for a preferential corporate income tax rate of **15%**[135](index=135&type=chunk) - Hong Kong profits tax provision has been made based on estimated assessable profits at a rate of **16.5%**[135](index=135&type=chunk) - OECD Pillar Two legislation has come into effect in Hong Kong, Luxembourg, Netherlands, Ireland, and certain other jurisdictions where the Group operates, with no significant current tax impact for the six months ended June 30, 2025[145](index=145&type=chunk) [Earnings Per Share](index=54&type=section&id=%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) This section provides the calculation methods and specific data for basic and diluted earnings per share Earnings Per Share (RMB per share) | Indicator | 2025 Q2 | 2024 Q2 | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | :--- | :--- | | Basic EPS | 6.115 | 5.112 | 11.367 | 9.590 | | Diluted EPS | 5.996 | 4.994 | 11.126 | 9.377 | [Dividends](index=56&type=section&id=%E8%82%A1%E6%81%AF) This section discloses the distribution of the 2024 fiscal year final dividend and confirms no interim dividend was declared for H1 2025 - Pursuant to the Board's resolution, the 2024 fiscal year final dividend of **HKD 4.50 per share** was paid during the six months ended June 30, 2025, totaling approximately **HKD 40.966 billion**[152](index=152&type=chunk) - The Board did not declare any interim dividend for the six months ended June 30, 2025 and 2024[153](index=153&type=chunk) [Property, Plant and Equipment, Construction in Progress, Investment Properties and Intangible Assets](index=56&type=section&id=%E7%89%A9%E6%A5%AD%E3%80%81%E8%A8%AD%E5%82%99%E5%8F%8A%E5%99%A8%E6%9D%90%E3%80%81%E5%9C%A8%E5%BB%BA%E5%B7%A5%E7%A8%8B%E3%80%81%E6%8A%95%E8%B3%87%E7%89%A9%E6%A5%AD%E4%BB%A5%E5%8F%8A%E7%84%A1%E5%BD%A2%E8%B3%87%E7%94%A2) This section analyzes net book value changes for property, plant and equipment, construction in progress, investment properties, and intangible assets, including server useful life adjustments - As of June 30, 2025, the net book value of property, plant and equipment was **RMB 118.565 billion**, and intangible assets was **RMB 215.832 billion**[154](index=154&type=chunk) - Effective January 1, 2025, the Group adjusted the estimated useful lives of certain servers under computer and other operating equipment within property, plant and equipment from **4 years to 6 years**, with no significant impact on depreciation expense reduction and net profit increase for the current and future periods[155](index=155&type=chunk) [Land Use Rights](index=57&type=section&id=%E5%9C%9F%E5%9C%B0%E4%BD%BF%E7%94%A8%E6%AC%8A) This section discloses the net book value of land use rights and their changes, primarily consisting of prepaid operating lease payments for land in mainland China - As of June 30, 2025, the net book value of land use rights was **RMB 22.693 billion**, primarily representing prepaid operating lease payments for land in mainland China with remaining lease terms ranging from **24 to 50 years**[157](index=157&type=chunk) [Leases (Other than Land Use Rights)](index=58&type=section&id=%E7%A7%9F%E8%B3%83%EF%BC%88%E9%99%A4%E5%9C%9F%E5%9C%B0%E4%BD%BF%E7%94%A8%E6%AC%8A%E5%A4%96%EF%BC%89) This section analyzes changes in right-of-use assets and lease liabilities, along with lease-related depreciation, interest, and cash outflows - As of June 30, 2025, the net book value of right-of-use assets (other than land use rights) was **RMB 16.952 billion**[159](index=159&type=chunk) - For the six months ended June 30, 2025, depreciation expense for right-of-use assets was **RMB 3.070 billion**[160](index=160&type=chunk) - For the six months ended June 30, 2025, total cash outflows for leases included in financing activities were approximately **RMB 3.678 billion**[162](index=162&type=chunk) [Investments in Associates](index=60&type=section&id=%E6%96%BC%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E7%9A%84%E6%8A%95%E8%B3%87) This section discloses the composition of investments in associates (listed and unlisted entities), changes in carrying value, and impairment assessment - As of June 30, 2025, total investments in associates amounted to **RMB 307.573 billion**, comprising **RMB 165.323 billion** in listed entities and **RMB 142.250 billion** in unlisted entities[163](index=163&type=chunk) - For the six months ended June 30, 2025, the Group's investments in associates increased by **RMB 9.984 billion**, mainly due to additional investments in certain new and existing associates[165](index=165&type=chunk)[169](index=169&type=chunk) - For the six months ended June 30, 2025, impairment reversals for investments in associates totaled approximately **RMB 355 million**[167](index=167&type=chunk) [Financial Assets at Fair Value Through Profit or Loss](index=63&type=section&id=%E4%BB%A5%E5%85%AC%E5%85%81%E5%83%B9%E5%80%BC%E8%A8%88%E9%87%8F%E4%B8%94%E5%85%B6%E8%AE%8A%E5%8B%95%E8%A8%88%E5%85%A5%E6%90%8D%E7%9B%8A%E7%9A%84%E9%87%91%E8%9E%8D%E8%B3%87%E7%94%A2) This section discloses the composition and changes of financial assets at fair value through profit or loss, including listed, unlisted, and wealth management investments - As of June 30, 2025, total financial assets at fair value through profit or loss amounted to **RMB 225.498 billion**[170](index=170&type=chunk) - For the six months ended June 30, 2025, the Group's additions and transfers primarily included new and additional investments totaling approximately **RMB 71.190 billion** in wealth management investments, certain investee companies (mainly engaged in investment funds, FinTech, game development, and healthcare), and others[171](index=171&type=chunk)[173](index=173&type=chunk) [Financial Assets at Fair Value Through Other Comprehensive Income](index=64&type=section&id=%E4%BB%A5%E5%85%AC%E5%85%81%E5%83%B9%E5%80%BC%E8%A8%88%E9%87%8F%E4%B8%94%E5%85%B6%E8%AE%8A%E5%8B%95%E8%A8%88%E5%85%A5%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E7%9A%84%E9%87%91%E8%9E%8D%E8%B3%87%E7%94%A2) This section discloses the composition of financial assets at fair value through other comprehensive income and their changes - As of June 30, 2025, total financial assets at fair value through other comprehensive income amounted to **RMB 408.360 billion**[174](index=174&type=chunk) - For the six months ended June 30, 2025, fair value gains amounted to **RMB 96.218 billion**[176](index=176&type=chunk) [Prepayments, Deposits and Other Assets](index=66&type=section&id=%E9%A0%90%E4%BB%98%E6%AC%BE%E9%A0%85%E3%80%81%E6%8C%89%E9%87%91%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B3%87%E7%94%A2) This section details the composition of prepayments, deposits, and other assets, including media content, capital asset prepayments, loans, and game royalties - As of June 30, 2025, total prepayments, deposits, and other assets amounted to **RMB 140.584 billion**[178](index=178&type=chunk) - Loans to investee companies and investee company shareholders are mostly repayable within **one to six years** (classified as non-current assets) or within **one year** (classified as current assets), bearing interest at an annual rate not exceeding **10.0%**[180](index=180&type=chunk) [Other Financial Assets](index=68&type=section&id=%E5%85%B6%E4%BB%96%E9%87%91%E8%9E%8D%E8%B3%87%E7%94%A2) This section discloses the composition of other financial assets, including amortized cost wealth management investments and fair value derivatives - As of June 30, 2025, total other financial assets amounted to **RMB 5.538 billion**[182](index=182&type=chunk) - Derivatives and others include outstanding interest rate swap contracts, measured at fair value, with a total notional principal of **USD 2.94 billion** (approximately **RMB 21.046 billion**)[182](index=182&type=chunk) [Deferred Income Tax](index=69&type=section&id=%E9%81%9E%E5%BB%B6%E6%89%80%E5%BE%97%E7%A8%85) This section provides an analysis of deferred income tax assets and liabilities, including changes before and after offsetting - As of June 30, 2025, net deferred income tax assets were **RMB 30.004 billion**, and net deferred income tax liabilities were **RMB (16.888) billion**[183](index=183&type=chunk) [Trade Receivables](index=71&type=section&id=%E6%87%89%E6%94%B6%E8%B3%87%E6%AC%BE) This section provides an aging analysis of trade receivables, primarily from marketing services clients, FinTech and cloud clients, and others - As of June 30, 2025, total trade receivables amounted to **RMB 51.315 billion**[186](index=186&type=chunk) - Trade receivables are mostly denominated in RMB, primarily from marketing services clients and agencies, FinTech and cloud clients, content production-related clients, and third-party platform providers, with credit terms typically ranging from **30 to 90 days**[186](index=186&type=chunk)[187](index=187&type=chunk) [Share Capital](index=72&type=section&id=%E8%82%A1%E6%9C%AC) This section discloses changes in the company's authorized and issued share capital, including allotments, option grants, and share repurchases and cancellations - As of June 30, 2025, the total number of issued ordinary shares decreased to **9,165,513,622 shares**, mainly due to share repurchases and cancellations[191](index=191&type=chunk) - For the six months ended June 30, 2025, the Company repurchased a total of **81,867,000 shares** in the market, of which **4,910,000 shares** had not yet been cancelled as of June 30, 2025[192](index=192&type=chunk) [Share-based Payments](index=73&type=section&id=%E4%BB%A5%E8%82%A1%E4%BB%BD%E7%82%BA%E5%9F%BA%E7%A4%8E%E7%9A%84%E6%94%AF%E4%BB%98) This section details the terms, changes, and fair value valuation of the share option and share award schemes, including subsidiary compensation plans - For the six months ended June 30, 2025, **24,189,201 share options** were exercised[196](index=196&type=chunk) - As of June 30, 2025, the total number of outstanding share options was **91,400,760**[196](index=196&type=chunk) - For the six months ended June 30, 2025, the weighted average fair value of share options granted was **HKD 174.85 per share** (approximately **RMB 161.48 per share**)[200](index=200&type=chunk) - For the six months ended June 30, 2025, a total of **17,261,799 award shares** were granted under the 2023 Share Award Scheme, of which **59,280 award shares** were granted to the Company's independent non-executive directors[203](index=203&type=chunk) - For the six months ended June 30, 2025, the weighted average fair value of award shares granted was **HKD 519.50 per share** (approximately **RMB 479.77 per share**)[203](index=203&type=chunk) [Borrowings](index=79&type=section&id=%E5%80%9F%E6%AC%BE) This section discloses the composition, principal, interest rates, and repayment periods for long-term and short-term bank borrowings, including interest rate swaps - As of June 30, 2025, the Group's total borrowings amounted to **RMB 261.597 billion**[79](index=79&type=chunk) - Total principal amount of long-term RMB bank borrowings was **RMB 133.425 billion**, and USD bank borrowings was **USD 6.9 billion**[212](index=212&type=chunk) - Total principal amount of short-term RMB bank borrowings was **RMB 39.174 billion**, and USD bank borrowings was **USD 2.25 billion**[213](index=213&type=chunk) [Bills Payable](index=82&type=section&id=%E6%87%89%E4%BB%98%E7%A5%A8%E6%93%9A) This section discloses the principal, interest rates, and repayment periods for long-term and short-term USD bills payable, along with fair value information - As of June 30, 2025, total bills payable amounted to **RMB 132.218 billion**[217](index=217&type=chunk) - Total principal amount of USD bills payable was **USD 18.55 billion**, with annual interest rates ranging from **1.375% to 4.700%**[217](index=217&type=chunk) - For the six months ended June 30, 2025, a batch of bills payable with a total principal amount of **USD 900 million**, issued by the Group in February 2015, matured and was fully repaid[218](index=218&type=chunk) [Long-term Payables](index=83&type=section&id=%E9%95%B7%E6%9C%9F%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) This section discloses the composition of long-term payables, primarily cash-settled share-based payments, media content, and online game royalties - As of June 30, 2025, total long-term payables amounted to **RMB 12.801 billion**[219](index=219&type=chunk) [Other Financial Liabilities](index=84&type=section&id=%E5%85%B6%E4%BB%96%E9%87%91%E8%9E%8D%E8%B2%A0%E5%82%B5) This section discloses the composition of other financial liabilities, including redemption liabilities, contingent consideration, and others - As of June 30, 2025, total other financial liabilities amounted to **RMB 11.925 billion**[221](index=221&type=chunk) - Redemption liabilities of approximately **RMB 9.899 billion** include those arising from put option arrangements with non-controlling shareholders of acquired subsidiaries[221](index=221&type=chunk) [Trade Payables](index=85&type=section&id=%E6%87%89%E4%BB%98%E8%B3%87%E6%AC%BE) This section provides an aging analysis of trade payables - As of June 30, 2025, total trade payables amounted to **RMB 130.501 billion**[222](index=222&type=chunk) [Other Payables and Accruals](index=85&type=section&id=%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85%E5%8F%8A%E9%A0%90%E6%8F%90%E8%B2%BB%E7%94%A8) This section discloses the composition of other payables and accruals, including employee costs, selling and marketing expenses, and investment purchase consideration - As of June 30, 2025, total other payables and accruals amounted to **RMB 76.862 billion**[223](index=223&type=chunk) [Deferred Revenue](index=86&type=section&id=%E9%81%9E%E5%BB%B6%E6%94%B6%E5%85%A5) This section explains the composition of deferred revenue, primarily including contract liabilities and refundable prepayments - The Group's deferred revenue includes contract liabilities and refundable prepayments for certain businesses, mainly comprising unamortized virtual items, prepaid membership fees, prepaid tokens, or top-up cards[226](index=226&type=chunk) [Business Combinations](index=86&type=section&id=%E6%A5%AD%E5%8B%99%E5%90%88%E4%BD%B5) This section discloses the business combination involving the acquisition of 100% equity in a game company completed in H1 2025 - For the six months ended June 30, 2025, the Group completed the acquisition of **100% equity** in a game company for a cash consideration of approximately **USD 1.2 billion** (approximately **RMB 8.8 billion**)[227](index=227&type=chunk) - The Group recognized goodwill of approximately **RMB 5.2 billion** from this transaction, primarily due to expected operating synergies and economies of scale from the combined business[228](index=228&type=chunk) [Contingent Matters](index=86&type=section&id=%E6%88%96%E6%9C%89%E4%BA%8B%E9%A0%85) This section confirms no significant contingent liabilities as of June 30, 2025 - The Group had no significant contingent liabilities as of June 30, 2025[230](index=230&type=chunk) [Commitments](index=87&type=section&id=%E6%89%BF%E6%93%94) This section discloses capital and other commitments, including for construction, investments, bandwidth, game agency, and media content agreements - As of June 30, 2025, total contracted capital commitments amounted to **RMB 14.452 billion**[231](index=231&type=chunk) - The Group's total contracted commitments not yet provided for in the condensed consolidated financial statements, primarily under agreements for bandwidth, online game agency, media content, and other technical services, amounted to **RMB 33.928 billion**[231](index=231&type=chunk) - A subsidiary of the Group, Tencent Music, intends to acquire an existing investee company (one of China's leading online audio platforms), with the transaction closing contingent on regulatory approvals and certain other closing conditions[231](index=231&type=chunk) [Related Party Transactions](index=88&type=section&id=%E9%97%9C%E8%81%AF%E6%96%B9%E4%BA%A4%E6%98%93) This section discloses significant related party transactions with associates and joint ventures, including service provision, purchases, and period-end balances - For the six months ended June 30, 2025, the Group entered into commercial arrangements with certain associates and joint ventures to provide marketing services, FinTech and business services, and other services, recognizing revenue of **RMB 2.197 billion**, **RMB 23.510 billion**, and **RMB 2.064 billion**, respectively[234](index=234&type=chunk) - For the six months ended June 30, 2025, the Group entered into commercial arrangements with certain associates and joint ventures to purchase online game licenses and related services, media content and related services, FinTech and business services, and others, incurring costs and expenses of **RMB 2.506 billion**, **RMB 1.307 billion**, **RMB 843 million**, and **RMB 855 million**, respectively[234](index=234&type=chunk) - As of June 30, 2025, trade receivables and other receivables from related parties were **RMB 11.443 billion** and **RMB 300 million**, respectively[235](index=235&type=chunk) [Events After the Reporting Period](index=89&type=section&id=%E7%B5%90%E7%AE%97%E6%97%A5%E5%BE%8C%E4%BA%8B%E9%A0%85) This section confirms no significant events after the reporting period up to the date of approval of the interim financial information - No significant events after the reporting period occurred from July 1, 2025, to the date of approval of the interim financial information by the Board on August 13, 2025[237](index=237&type=chunk) Other Information [Directors' Securities Interests](index=90&type=section&id=%E8%91%A3%E4%BA%8B%E7%9A%84%E8%AD%89%E5%88%B8%E6%AC%8A%E7%9B%8A) This section discloses the interests and short positions of directors and chief executives in the company's shares, underlying shares, and debentures as of June 30, 2025 - As of June 30, 2025, **Mr. Pony Ma** held **804,859,700 shares** of the Company, representing approximately **8.78%** of the total shares[239](index=239&type=chunk) - Several independent non-executive directors, including **Li Dong Sheng**, **Ian Charles Stone**, **Yang Siu Shun**, **Ke Yang**, and **Zhang Xiu Lan**, held shares and/or unvested award shares of the Company[239](index=239&type=chunk) [Share Option Scheme](index=92&type=section&id=%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%A8%88%E5%8A%83) This section details the terms, changes, outstanding particulars, and fair value valuation methods of the 2023 Share Option Scheme - For the six months ended June 30, 2025, the Company had one share option scheme in effect and continuing, namely the **2023 Share Option Scheme**[243](index=243&type=chunk) - For the six months ended June 30, 2025, **24,189,201 share options** were exercised[245](index=245&type=chunk) - As of June 30, 2025, the total number of outstanding share options was **91,400,760**[245](index=245&type=chunk) - For the six months ended June 30, 2025, the weighted average fair value of share options granted was **HKD 174.85 per share** (approximately **RMB 161.48 per share**)[200](index=200&type=chunk) [Share Award Scheme](index=99&type=section&id=%E8%82%A1%E4%BB%BD%E7%8D%8E%E5%8B%B5%E8%A8%88%E5%8A%83) This section details the terms, changes, particulars of award shares held by directors and employees, and fair value valuation of the 2023 Share Award Scheme - For the six months ended June 30, 2025, the Company had one share award scheme in effect and continuing, namely the **2023 Share Award Scheme**[255](index=255&type=chunk) - The total number of shares that may be awarded under the 2023 Share Award Scheme shall not exceed **4.5%** of the total issued shares as of the adoption date[255](index=255&type=chunk) - For the six months ended June 30, 2025, a total of **17,261,799 award shares** were granted under the 2023 Share Award Scheme, of which **59,280 award shares** were granted to the Company's independent non-executive directors[258](index=258&type=chunk) - As of June 30, 2025, the Company's directors still held a total of **192,889 unvested award shares**[259](index=259&type=chunk) - For the six months ended June 30, 2025, the weighted average fair value of award shares granted was **HKD 519.50 per share** (approximately **RMB 479.77 per share**)[203](index=203&type=chunk) [Directors' Biographies and Other Information](index=111&type=section&id=%E8%91%A3%E4%BA%8B%E5%B1%A5%E6%AD%B7%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) This section provides detailed biographies, experience, appointments, and remuneration for the company's executive, non-executive, and independent non-executive directors - **Pony Ma**, 53, Executive Director, Chairman of the Board, and CEO of the Company, is fully responsible for the Group's strategic planning, positioning, and management, with over **31 years of experience** in the telecommunications and internet industries[281](index=281&type=chunk) - **Jacobus Petrus (Koos) Bekker**, 72, Non-Executive Director, led the founding team of M-Net/MultiChoice pay-TV business and became CEO of Naspers in 1997[282](index=282&type=chunk) - **Charles St Leger Searle**, 61, Non-Executive Director, currently CEO of Naspers Internet Listed Assets, with over **31 years of international experience** in the telecommunications and internet industries[283](index=283&type=chunk) - **Li Dong Sheng**, **Ian Charles Stone**, **Yang Siu Shun**, **Ke Yang**, and **Zhang Xiu Lan** are Independent Non-Executive Directors, possessing extensive experience in their respective fields (IT, telecommunications, accounting, oncology, social security) and receiving director's fees[285](index=285&type=chunk)[286](index=286&type=chunk)[287](index=287&type=chunk)[288](index=288&type=chunk)[289](index=289&type=chunk) [Interests of Major Shareholders](index=114&type=section&id=%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1%E7%9A%84%E6%AC%8A%E7%9B%8A) This section discloses the interests or short positions of major shareholders in the company's shares or underlying shares as of June 30, 2025 - As of June 30, 2025, **MIH Internet Holdings B.V.** held **2,112,481,500 shares** of the Company, representing approximately **23.05%** of the total shares[291](index=291&type=chunk) - As of June 30, 2025, **Advance Data Services Limited** held **804,859,700 shares** of the Company, representing approximately **8.78%** of the total shares[291](index=291&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=115&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) This section discloses the company's repurchase and cancellation of listed securities during H1 2025 - For the six months ended June 30, 2025, the Company repurchased a total of **81,867,000 shares** on the Stock Exchange for a total consideration of approximately **HKD 36.5 billion** (excluding expenses)[294](index=294&type=chunk) - The repurchased shares were subsequently cancelled, aiming to enhance shareholder value in the long term[294](index=294&type=chunk) [Employees and Remuneration Policy](index=115&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E9%85%AC%E9%87%91%E6%94%BF%E7%AD%96) This section provides the number of employees and remuneration policy as of June 30, 2025 - As of June 30, 2025, the Group had **111,221 employees** (June 30, 2024: **105,506 employees**)[295](index=295&type=chunk) - The Group's total remuneration cost for the six months ended June 30, 2025, was **RMB 65 billion** (six months ended June 30, 2024: **RMB 54.3 billion**)[295](index=295&type=chunk) - Employee remuneration policy includes pension schemes and internal training courses, with discretionary bonuses, award shares, and share options granted based on individual performance assessments[295](index=295&type=chunk) [Audit Committee](index=116&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) This section states the Audit Committee reviewed interim financial information, discussing accounting standards, risk management, internal controls, and financial reporting - The Audit Committee, together with the auditor, has reviewed the Group's unaudited interim financial information for the three and six months ended June 30, 2025[297](index=297&type=chunk) [Adoption of Code for Securities Transactions by Directors](index=116&type=section&id=%E9%87%87%E7%B4%8D%E6%9C%89%E9%97%9C%E8%91%A3%E4%BA%8B%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E5%AE%88%E5%89%87) This section states the company adopted a code of conduct for directors' securities transactions, with directors confirming compliance - The Company has adopted a code of conduct for directors' securities transactions, with terms no less stringent than those required by the standard code, and directors have confirmed compliance[298](index=298&type=chunk) [Compliance with Corporate Governance Code](index=116&type=section&id=%E9%81%B5%E5%AE%88%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) This section discloses the company's deviations from the Corporate Governance Code, specifically regarding the rotation of directors - The Company deviated from code provision B.2.2 of the Corporate Governance Code (rotation of directors) as Mr. Ian Charles Stone's re-election was considered at the 2025 Annual General Meeting[299](index=299&type=chunk) - The Board believes that the deviation from code provision B.2.2 of the Corporate Governance Code has no significant impact on the Company's overall operations[299](index=299&type=chunk) [Definitions](index=116&type=section&id=%E9%87%8B%E7%BE%A9) This section provides definitions for key terms used in this interim report to ensure clear understanding of the report's content - This section lists definitions for professional terms used in the report, such as **AI** (Artificial Intelligence), **EBITDA** (Earnings Before Interest, Taxes, Depreciation, and Amortization), **IFRS** (International Financial Reporting Standards), **LPR** (Loan Prime Rate), **SOFR** (Secured Overnight Financing Rate), and **SSV & CPP** (Sustainable Social Value & Common Prosperity Program)[301](index=301&type=chunk)[303](index=303&type=chunk)[306](index=306&type=chunk)[307](index=307&type=chunk)