Financial Performance - The company reported unaudited consolidated results for the six months ended June 30, 2025, with a focus on property management and environmental sanitation services in China [10]. - Revenue for the six months ended June 30, 2025, was HKD 169,381,000, a slight increase of 0.97% compared to HKD 167,741,000 for the same period in 2024 [73]. - Gross profit for the same period was HKD 45,368,000, down 3.87% from HKD 47,186,000 in 2024 [73]. - Net profit for the period was HKD 15,197,000, a decrease of 36.5% compared to HKD 23,832,000 in 2024 [75]. - Total comprehensive income for the period was HKD 29,237,000, significantly up from HKD 9,602,000 in 2024 [75]. - The group recorded revenue of approximately HKD 169.4 million for the period, an increase of about 1.0% compared to HKD 167.7 million in the corresponding period [30]. - The property management business recorded a gross profit of approximately HKD 33.6 million, an increase of about HKD 8.0 million, with a gross margin of 32.4%, up from 26.0% [34]. - The environmental hygiene business gross profit decreased to HKD 10.0 million, down from HKD 18.1 million, with a gross margin of 15.7%, down from 27.7% [35]. - The adjusted profit before tax for the total group was HKD 15,093,000, down from HKD 21,442,000, representing a decline of approximately 30% [94]. - The property management segment reported a profit of HKD 16,082,000, significantly up from HKD 8,287,000, indicating an increase of approximately 94% [94]. - The environmental hygiene segment's profit decreased to HKD 6,161,000 from HKD 15,925,000, a decline of about 61% [94]. Revenue Breakdown - Property management services generated revenue of HKD 88,584,000, up from HKD 85,260,000, reflecting a growth of about 3% year-over-year [89]. - Environmental hygiene services reported revenue of HKD 63,696,000, a decrease from HKD 65,249,000, indicating a decline of approximately 2% [89]. - Rental income increased to HKD 14,974,000 from HKD 13,304,000, marking a growth of around 13% [89]. - The company recorded property management revenue of approximately HKD 103.6 million, representing a growth of about 5.1% compared to HKD 98.6 million in the corresponding period [18]. - Revenue from environmental hygiene services was approximately HKD 63.7 million, a decrease of about 2.3% from HKD 65.2 million in the corresponding period, primarily due to a reduction in non-tender contracts [19]. Strategic Initiatives - The company emphasizes the importance of service quality to enhance customer satisfaction and loyalty, which is critical for competitive advantage [14]. - The management strategy includes leveraging technology to improve service efficiency and meet diverse resident needs [13]. - The company aims to align with national policies promoting standardized and intelligent property management services [11]. - The group plans to strategically acquire high-quality projects through competitive bidding and expand its property management and environmental hygiene businesses [29]. - The group aims to enhance management efficiency and service quality through the application of intelligent systems and automation in property management [28]. - The company is actively exploring differentiated competitive strategies in specific regions to maintain advantages over smaller property management firms [14]. - The company anticipates rapid growth in the environmental hygiene sector, despite facing challenges such as technology upgrade costs and human resource management [20]. Awards and Recognition - The company has received multiple awards in the 2024 fiscal year, including recognition as one of the top 100 property service companies in China [15]. Financial Position - As of June 30, 2025, accounts receivable amounted to approximately HKD 166.8 million, an increase from HKD 158.5 million as of December 31, 2024, primarily due to delayed payments from specific clients in the property management and environmental sanitation sectors [41]. - Cash and cash equivalents, along with time deposits over three months, increased to approximately HKD 110.4 million as of June 30, 2025, from HKD 86.4 million as of December 31, 2024 [41]. - The group's current ratio was approximately 3.0 as of June 30, 2025, compared to 2.6 as of December 31, 2024, indicating improved liquidity [42]. - The total number of employees increased to approximately 2,400 as of June 30, 2025, from 2,100 in the same period last year, with employee costs around HKD 43.6 million [49]. - The company reported a decrease in total liabilities from HKD 149,435,000 to HKD 134,323,000 [76]. - The company’s total liabilities increased from HKD 43,075,000 to HKD 47,657,000, indicating a rise of approximately 10.5% [78]. Corporate Governance - The audit committee is now composed of three independent non-executive directors, ensuring compliance with listing rules [71]. - The company has adopted the standard code for securities transactions by directors, confirming compliance during the reporting period [69]. - Mr. Shi has been appointed as the honorary chairman and senior advisor, with an annual consultancy fee of HKD 2,200,000 starting from June 28, 2025 [59]. - Mr. He has transitioned from an independent non-executive director to a non-executive director, entitled to an annual director's fee of HKD 150,000 effective from May 7, 2025 [59]. - Mr. Sui has been appointed as a non-executive director and vice chairman, with an annual director's fee of HKD 200,000 effective from May 7, 2025 [59]. Shareholder Information - The total issued shares as of June 30, 2025, is 258,441,510 [64]. - Outstanding Global Holdings Limited holds 130,025,474 shares, representing 50.31% of the company [63]. - Chance Talent Management Limited holds 132,600,897 shares, representing 51.31% of the company’s shares and convertible securities [63]. - The company did not declare any interim dividends for the reporting period, consistent with the previous period [53]. - The company has not repurchased any of its listed shares during the reporting period [57]. Future Outlook - The company expects the property management and environmental hygiene industries to continue growing, driven by urbanization and rising living standards in China, despite facing increased operational costs [27]. - The company will adjust its market strategy to support national policies aimed at improving property management service quality and enhancing customer loyalty [27].

Production and Sales Performance - For the first half of 2025, the company reported a production volume of 1,422,870 tons, an increase of 25.7% compared to the same period last year[10] - Sales volume surged by 26.9% to 1,419,367 tons during the same period[10] - Iron ore production increased by 25.7% to 1,422,870 tons for the six months ended June 30, 2025, compared to 1,132,201 tons in the same period of 2024[20] - Sales volume rose by 26.9% to 1,419,367 tons for the six months ended June 30, 2025, up from 1,118,750 tons in the prior year[20] - The commercial concentrate production reached 1,422,870 tons, an increase of 26% compared to the previous year, due to improved recovery rates and higher ore grades[81] Financial Performance - EBITDA improved to $6.7 million, compared to a loss of $1.7 million in the same period last year[13] - Total revenue increased by 9.3% to $122.8 million for the six months ended June 30, 2025, compared to $112.3 million in the prior year[20] - The company recorded a significant increase in net loss attributable to shareholders, which rose by 670.2% to $101.97 million for the six months ended June 30, 2025, compared to $13.24 million in the same period of 2024[20] - The company reported a net loss of $102.0 million, which included significant non-cash items[14] - The company reported a pre-tax loss of $103,478 thousand, significantly higher than the pre-tax loss of $13,054 thousand in the same period last year[117] Cost Management - The average price of iron ore (65% Fe) decreased by 13.9% year-on-year due to a weakened demand from China and oversupply in the market[12] - Cash costs (including transport to customers) decreased by 20.5% to $77.4 per wet ton, compared to $97.4 per wet ton in the same period of 2024[20] - The cash cost of iron ore production decreased by 20.5% to $77.4 per ton, attributed to improved ore quality and lower stripping ratios[25] - Mining costs dropped by 47.8% to $23.9 per ton from $45.8 per ton in the previous period, attributed to improved ore quality and lower stripping ratios[40] - The production fixed costs, mine management, and related costs increased by 23.5% to $14.7 per ton, up from $11.9 per ton, mainly due to inflationary pressures and expanded operational activities[41] Strategic Initiatives - The company is investing in a crushing and screening plant at Sutara, expected to reduce transportation costs by approximately 20%[15] - A strategic shift to internalize mining operations is anticipated to enhance operational control and cost efficiency[15] - The company plans to expand its processing capacity and explore additional mining projects to increase overall production capacity[6] - The company plans to balance prudent financial management with investments aimed at improving efficiency and quality[18] - The company plans to purchase and lease its own mining equipment by the end of 2025 to replace some existing contractors[80] Impairment and Asset Management - The company recorded a non-cash impairment charge of $120.2 million for K&S due to the appreciation of the Russian ruble affecting expected operational costs[16] - The total impairment loss related to the K&S mine was $120.2 million, primarily due to the appreciation of the Russian ruble[26] - As of June 30, 2025, the recoverable amount of the K&S project was approximately $134.1 million, down from $268.1 million as of December 31, 2024, resulting in an impairment loss of $120.2 million for the period[136] Market Outlook and Future Plans - The company remains cautiously optimistic about future market conditions despite ongoing challenges, focusing on operational efficiency and financial flexibility[18] - The iron ore price forecast for the second half of 2025 is set at $104.30 per dry ton, with a projected increase to $113.90 per dry ton in 2030 and beyond[134] - The group anticipates a significant increase in costs due to rising contractor rates, wages, and utility expenses, influenced by inflation forecasts in Russia[135] Governance and Compliance - The audit committee reviewed the unaudited interim results for the period, consisting of three independent non-executive directors[111] - The interim financial information has been reviewed by an external auditor[112] - The company is committed to health, safety, and environmental standards in its operations[175] - The board of directors includes independent non-executive members to enhance governance and oversight[175] Shareholder and Capital Management - Axioma Capital FZE LLC holds 830,101,285 shares, representing 64.96% of the company's issued shares as of June 30, 2025[97] - The company raised approximately $46.3 million from a rights issue completed on December 12, 2024[101] - The company did not declare or propose any dividends for the periods ended June 30, 2025, and 2024[142] - The company completed a share consolidation on June 27, 2025, merging every ten shares into one[162] Safety and Operational Efficiency - The lost time injury rate was 0.73, significantly improved from 2.13 in the previous year, indicating a strong commitment to safety[83] - The average operating capacity of the plant improved to approximately 90%, up from 72% in the same period of 2024[30] - The company is focused on optimizing mining and processing factors to enhance economic operations[171]

Company Information [Board of Directors and Corporate Structure](index=4&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83%E8%88%87%E5%85%AC%E5%8F%B8%E6%9E%B6%E6%A7%8B) This section lists the basic company information of Minth Group, including its board members (executive, non-executive, and independent non-executive directors), company secretary, registered office, group headquarters, and regional headquarters - The Board of Directors includes Chairperson and CEO **Wei Qinglian**, along with several executive, non-executive, and independent non-executive directors, with **William Chin, Chen Baihong, and Hu Dingwu appointed on May 30, 2025**, and **Wang Jing retiring on the same day**[7](index=7&type=chunk) - The Group's headquarters are located in Neihu District, Taipei City, with regional headquarters globally in Asia-Pacific (China), North America (USA), Europe (Germany), and a new facility under construction in Canada[7](index=7&type=chunk) [Key Business Contacts](index=5&type=section&id=%E4%B8%BB%E8%A6%81%E5%BE%80%E4%BE%86%E6%A9%9F%E6%A7%8B) This section provides information on Minth Group's key partners, including its principal bankers, share registrars, auditors, and legal advisors, and discloses the company's stock code on the Hong Kong Stock Exchange - Principal bankers include **Bank of China and Citibank**, and the auditor is **Deloitte Touche Tohmatsu**[9](index=9&type=chunk) - The Hong Kong share registrar is **Hong Kong Registrars Limited**, and legal advisors cover Hong Kong, China, and Cayman Islands law[9](index=9&type=chunk) - The company's stock code on the Hong Kong Stock Exchange is **0425**[10](index=10&type=chunk) Management Discussion and Analysis [Industry Overview](index=6&type=section&id=%E8%A1%8C%E6%A5%AD%E6%A6%82%E8%A7%88) In the first half of 2025, China's automotive market achieved double-digit growth driven by policy stimuli and new models, with new energy vehicle sales increasing by 40.3% year-on-year and market penetration reaching 44.3%, while Chinese brands' market share rose to 68.5%, and the global light vehicle market grew steadily by 4.9%, primarily boosted by China, North America, and some emerging markets H1 2025 China Automotive Market Overview | Indicator | H1 2025 | Year-on-Year Growth | Market Share | | :--- | :--- | :--- | :--- | | China Passenger Vehicle Production/Sales | Approx. 13.522 million units / 13.531 million units | Approx. 13.8% / 13.0% | - | | China New Energy Vehicle Sales | Approx. 6.937 million units | Approx. 40.3% | Approx. 44.3% | | Chinese Brand Market Share | - | - | 68.5% (up 6.6 percentage points year-on-year) | H1 2025 Global Light Vehicle Market Overview | Indicator | H1 2025 | Year-on-Year Growth | | :--- | :--- | :--- | | Global Light Vehicle Sales | Approx. 44.474 million units | Approx. 4.9% | | US Market Sales | Approx. 8.109 million units | Approx. 3.1% | | Western European Market Sales | Approx. 6.067 million units | Approx. -1.3% | | Japanese Market Sales | Approx. 2.345 million units | Approx. 10.2% | [Company Overview](index=7&type=section&id=%E5%85%AC%E5%8F%B8%E6%A6%82%E8%A7%88) Minth Group primarily engages in the R&D, production, and sales of automotive components and tooling molds, with product lines including metal and trim, plastic parts, aluminum parts, and battery housings, while continuously optimizing operational efficiency, deepening its 'hub + satellite' flexible production network, and planning increased capital expenditure in North America, Europe, and Southeast Asia to accelerate business growth - The Group's main businesses are the R&D, production, and sales of automotive components (metal and trim, plastic parts, aluminum parts, battery housings) and tooling molds[15](index=15&type=chunk) - The Group has R&D, design, production, and sales networks in multiple global locations and plans to increase capital expenditure in North America, Europe, and Southeast Asia to improve its global localized layout[15](index=15&type=chunk)[17](index=17&type=chunk) - The Group continues to deepen the Minth Operational Excellence System, promote lean management across the entire value chain, focus on new business expansion with Chinese brands, new energy vehicle startups, and international brands, and cultivate new track products such as low-altitude aircraft and humanoid robots[18](index=18&type=chunk) [Operational Excellence and Sustainable Development](index=8&type=section&id=%E5%8D%93%E8%B6%8A%E9%81%8B%E7%87%9F%E8%88%87%E5%8F%AF%E6%8C%81%E7%BA%8C%E7%99%BC%E5%B1%95) Minth Group is committed to enhancing operational efficiency and sustainable development through digital transformation, EHS management, and internal control and risk management, deepening digital system applications for standardized operational data and real-time decision-making, fully implementing EHS management systems with 100% energy saving and carbon reduction targets achieved, and strengthening its risk management platform to effectively control cross-border operational risks and ensure stable development [Digital Transformation](index=9&type=section&id=%E6%95%B8%E5%AD%97%E5%8C%96%E8%BD%89%E5%9E%8B) The Group continues to advance digital transformation, deepening the application of various digital systems to achieve full lifecycle digital management of production products, fixed assets, and R&D data, with a focus on deploying global factory SAP systems, improving the Industrial Internet of Things platform, and building digital benchmark factories to enhance AI technology application and real-time decision-making efficiency - The Group deepens the application of digital systems, implementing digital product design and development throughout the entire lifecycle of production products, fixed assets, and R&D data[19](index=19&type=chunk) - It promotes the unified deployment of global factory SAP systems, improves the Industrial Internet of Things platform, builds digital benchmark factories, deepens AI technology application and transparent dashboard management, and enhances real-time decision-making efficiency[19](index=19&type=chunk) [Environmental, Health, and Safety (EHS) Management](index=9&type=section&id=%E7%92%B0%E5%A2%83%E3%80%81%E5%AE%89%E5%85%A8%E8%88%87%E8%81%B7%E6%A5%AD%E5%81%A5%E5%BA%B7%20(EHS)%20%E7%AE%A1%E7%90%86) The Group is committed to deepening EHS management with a goal of 'Green Intelligent Manufacturing and Sustainable Development,' achieving 100% coverage for ISO45001 and ISO14001 certifications, with 38 factories certified to ISO50001, and 100% achievement of energy saving and carbon reduction targets, while also launching a digital EHS management system and introducing advanced wastewater, exhaust gas, and hazardous waste treatment processes to strengthen safety management and occupational health protection - **ISO45001** occupational health and safety management and **ISO14001** environmental management system certifications achieved **100% coverage**, with **38 factories** certified to **ISO50001** energy management system[20](index=20&type=chunk) - **Energy saving and carbon reduction targets achieved 100%**, and an eight-module digital EHS system, including a carbon emission management system, was launched to support **carbon peaking by 2030 and carbon neutrality by 2050**[20](index=20&type=chunk)[21](index=21&type=chunk) - Advanced wastewater, exhaust gas, and hazardous waste treatment processes were introduced, investment in waste resource utilization equipment increased, and safety management strengthened, with a **lost-time injury rate of 1.03 per million working hours**[21](index=21&type=chunk)[22](index=22&type=chunk)[23](index=23&type=chunk) [Internal Control and Risk Management](index=11&type=section&id=%E5%85%A7%E9%83%A8%E6%8E%A7%E5%88%B6%E8%88%87%E9%A2%A8%E9%9A%AA%E7%AE%A1%E7%90%86) The Group strictly adheres to internal control and risk management systems, optimizing its intelligent risk management platform and systematically upgrading risk assessment mechanisms, enhancing operational efficiency and risk resilience through a clear organizational structure and digital process reengineering, and conducting comprehensive audits across Asia-Pacific, Europe, and North America to ensure effective anti-bribery management - The intelligent risk management platform is optimized, and risk assessment mechanisms are systematically upgraded to integrate risk management with daily operations, ensuring risk visualization and real-time dynamic monitoring[24](index=24&type=chunk) - Internal control and risk management system construction is strengthened, building an internal control system centered on business processes, and conducting comprehensive audits covering the Asia-Pacific, European, and North American regions[24](index=24&type=chunk) - The **ISO37001** anti-bribery management system is strictly implemented, internal audit management systems and audit qualitative and accountability procedures are updated, and the whistleblowing response mechanism is optimized to ensure a fair and transparent business environment[24](index=24&type=chunk)[25](index=25&type=chunk) [Business and Operational Layout](index=12&type=section&id=%E6%A5%AD%E5%8B%99%E8%88%87%E7%B6%93%E7%87%9F%E4%BD%88%E5%B1%80) In the first half of 2025, Minth Group's revenue increased by 10.8% year-on-year to RMB 12.287 billion, with strong international business performance growing by 21.6% and accounting for 65.0% of total revenue, primarily driven by rapid growth in battery housing and structural parts business in the European market, while the Group achieved significant breakthroughs in battery housings, body chassis structural parts, and intelligent interior/exterior businesses, continuously strengthening its global operational capabilities, promoting localized production, and enhancing factory management and operational efficiency H1 2025 Revenue by Region | Region | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Year-on-Year Growth (%) | Share (%) | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | 12,286,969 | 11,090,414 | 10.8 | 100.0 | | China | 4,306,273 | 4,525,885 | -4.9 | 35.0 | | International Business | 7,980,696 | 6,564,529 | 21.6 | 65.0 | - Significant breakthroughs were achieved in battery housing and body chassis structural parts businesses, including European Toyota structural parts business, Great Wall and Geely chassis structural parts orders, first entry into Chery battery housing business, and breakthrough in General Motors battery housing structural parts business[27](index=27&type=chunk) - In intelligent interior and exterior trim business, the Group achieved its first breakthrough in North American Ford and Renault bumper assembly businesses, and continued to secure orders from customers such as Toyota and Hyundai-Kia[28](index=28&type=chunk) - The Group continues to implement a light-asset strategy, strictly controlling capital expenditure by reducing dedicated production lines, enhancing production line flexibility, and reallocating global capacity to improve capacity utilization and reduce overall investment[31](index=31&type=chunk) [Global Macroeconomic Environment and Automotive Industry Development Trends](index=15&type=section&id=%E5%85%A8%E7%90%83%E5%AE%8F%E8%A7%80%E7%92%B0%E5%A2%83%E8%88%87%E6%B1%BD%E8%BB%8A%E8%A1%8C%E6%A5%AD%E7%99%BC%E5%B1%95%E6%85%8B%E5%8B%A2) The global macroeconomic environment is complex and volatile, with US government tariff increases and policy adjustments profoundly impacting global trade patterns, yet Minth Group, leveraging its global presence, has optimized localized operations, increased the proportion of local supply, and achieved localized production for most North American orders, effectively controlling tariff and geopolitical risks to achieve stable business growth - US government tariff increases and policy adjustments profoundly impact the global trade landscape, with escalating trade frictions increasing market uncertainty and driving up operational and compliance costs[32](index=32&type=chunk) - Leveraging its comprehensive global layout, the Group optimizes localized operations, continuously increasing the proportion of local supply, with most North American orders now achieving localized production[32](index=32&type=chunk) - Through business and market diversification, balanced development in China, Europe, North America, and Asia-Pacific keeps tariff and geopolitical factors within a controllable range, achieving stable business growth[32](index=32&type=chunk) [Research and Development](index=15&type=section&id=%E7%A0%94%E7%A9%B6%E9%96%8B%E7%99%BC) Minth Group highly values R&D and innovation, with a clear innovation-led strategy, continuous R&D investment, and deep client engagement to proactively drive technological breakthroughs through independent innovation and collaboration, achieving milestone progress in battery housings and body chassis structural parts, intelligent integrated exterior trim, new material technologies, and new track products such as AI, robotics, and low-altitude economy, while emphasizing intellectual property protection - The Group clearly defines innovation leadership as its fundamental strategy, optimizing its R&D organizational structure and enhancing its independent R&D and innovation capabilities in basic materials, products, and technologies[33](index=33&type=chunk) - Through in-depth communication with traditional automakers, new energy vehicle startups, and battery manufacturers, the Group proactively drives process technology breakthroughs through independent innovation and collaboration with leading global enterprises[33](index=33&type=chunk) [Battery Housings and Body Chassis Structural Parts](index=16&type=section&id=%E9%9B%BB%E6%B1%A0%E7%9B%92%E5%8F%8A%E8%BB%8A%E8%BA%AB%E5%BA%95%E7%9B%A4%E7%B5%90%E6%A7%8B%E4%BB%B6) The Group continues to solidify its position as one of the world's largest battery housing suppliers, advancing battery housing technology R&D and innovation to provide multi-material, lightweight product solutions that meet CTB and the latest EV safety standards, achieving significant breakthroughs in cell shell roll-forming high-frequency welding and aluminum extrusion process technologies, and actively expanding peripheral battery housing products to substantially increase per-vehicle value - The Group consolidates its position as one of the world's largest battery housing suppliers, offering multi-material, lightweight product solutions that meet Cell-to-Body (CTB) integration and the latest electric vehicle power battery safety requirements[35](index=35&type=chunk) - Significant breakthroughs were achieved in cell shell roll-forming high-frequency welding and aluminum extrusion process technologies, successfully developing peripheral battery housing products such as front and rear crash modules, subframes, die-cast structural parts, and electronic control housings[35](index=35&type=chunk) [Intelligent Interior and Exterior Trim](index=16&type=section&id=%E6%99%BA%E8%83%BD%E5%85%A7%E5%A4%96%E9%A3%BE) The Group focuses on R&D and development of intelligent front and rear fascia systems, intelligent door systems, and intelligent interior systems to achieve intelligent upgrades for interior and exterior trim, proactively deploying integrated intelligent front fascia solutions that integrate lighting, heating, wave-transmitting, and automatic cleaning functions, achieving breakthroughs in intelligent door systems with independently developed facial recognition smart pillars, electric side-opening door systems, and expanding high-value-added interior assembly products - Proactive R&D deployment of integrated intelligent front fascia solutions, integrating lighting, heating, wave-transmitting, and automatic cleaning functions, possessing industry-leading patented technology applicable to **L4 and above autonomous driving scenarios**[36](index=36&type=chunk) - Active deployment in the intelligent door sector, independently developing facial recognition smart pillars, electric side-opening door systems, and ultra-light door assemblies, and signing cooperation agreements with European and Korean brands for joint R&D of future intelligent door solutions[37](index=37&type=chunk) - Significant breakthroughs achieved in composite material lightweighting for door systems, with product solutions combining **VarinTech® technology** gaining recognition from multiple new energy vehicle customers[37](index=37&type=chunk) [New Track Products (AI, Robotics, Low-Altitude Economy)](index=17&type=section&id=%E6%96%B0%E8%B3%BD%E9%81%93%E7%94%A2%E5%93%81%20(AI%E3%80%81%E6%A9%9F%E5%99%A8%E4%BA%BA%E3%80%81%E4%BD%8E%E7%A9%BA%E7%B6%93%E6%BF%9F)) The Group actively explores new fields such as AI, robotics, low-altitude economy, and smart mobility, deploying electric vehicle wireless charging systems and forming a strategic partnership with Siemens Germany, focusing on independent R&D of integrated joint modules and robot electronic skin in the intelligent robotics sector, signing a strategic cooperation agreement with ZHIYUAN Robotics, deeply collaborating with multiple leading flying car/eVTOL OEMs in the low-altitude economy sector, and securing mass production orders, while also developing AI liquid cooling system related products - Proactive layout in electric vehicle wireless charging systems, and signing a strategic cooperation framework agreement with **Siemens Germany**[38](index=38&type=chunk) - In the intelligent robotics sector, focusing on independent R&D of integrated joint modules, robot electronic skin, and intelligent masks, signing a strategic cooperation agreement with **ZHIYUAN Robotics**, and establishing demonstration production lines for humanoid robots in internal factories[38](index=38&type=chunk)[39](index=39&type=chunk) - In the low-altitude economy sector, focusing on two product systems: low-altitude aircraft bodies and rotors, signing a strategic cooperation agreement with **EHang Intelligent**, deeply participating in airworthiness model design and certification, and securing mass production orders[39](index=39&type=chunk) [New Material Technologies](index=18&type=section&id=%E6%96%B0%E6%9D%90%E6%96%99%E6%8A%80%E8%A1%93) The Group highly prioritizes new material technology R&D, mastering four core materials—high-performance crash aluminum, high-performance elastomer materials, functional plastics, and green materials—along with their surface treatment technologies, successfully developing Minal®-S748 aluminum alloy with over 60 related patents, and independently developing ECO-ALUMIN® S series green crash aluminum and various green low-carbon polymer materials, achieving an overall carbon reduction ratio exceeding 36% - Mastering four core materials: high-performance crash aluminum, high-performance elastomer materials, functional plastics, and green materials, along with their related surface treatment technologies[40](index=40&type=chunk) - Successfully developed **Minal®-S748 aluminum alloy**, featuring **ultra-high yield strength of 500 MPa** and excellent crash performance, holding **over 60 core patents** related to aluminum alloys[40](index=40&type=chunk) - Independently developed **ECO-ALUMIN® S series green crash aluminum** (carbon emissions less than **2.5 Kg.CO2/Kg.AL**) and various green low-carbon polymer materials, achieving an **overall carbon reduction ratio exceeding 36%**[40](index=40&type=chunk)[41](index=41&type=chunk) [Intellectual Property Protection](index=19&type=section&id=%E7%9F%A5%E8%AD%98%E7%94%A2%E6%AC%8A%E4%BF%9D%E8%AD%B7) The Group emphasizes intellectual property protection and operation, comprehensively deploying patents and trademarks for innovative products, with 72 new patent applications and 5 new trademark registrations in the first half of 2025, and 135 patents authorized by competent authorities, while actively engaging in IP rights protection and risk prevention management H1 2025 Intellectual Property Data | Indicator | Quantity | | :--- | :--- | | New Patent Applications | 72 items | | New Trademark Registrations | 5 items | | New Patents Granted | 135 items | | Trademarks Successfully Registered | 5 items | - The Group promotes the utilization and industrialization of intellectual property, conducting **242 patent licenses** and jointly building a new energy vehicle patent pool, focusing on cutting-edge areas such as lightweighting, impact resistance, and intelligent front fascia systems[41](index=41&type=chunk) [Financial Review](index=19&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) In the first half of 2025, Minth Group's revenue increased by 10.8% year-on-year to RMB 12.287 billion, with profit attributable to owners of the company growing by 19.5% to RMB 1.277 billion, while gross profit margin remained at 28.3%, driven by strong international business performance and rapid growth in battery housing business, as the Group continued to optimize cost structure, strictly control expenses, maintain a healthy liquidity position, and reduce its gearing ratio to 22.3% [Performance](index=19&type=section&id=%E6%A5%AD%E7%B8%BE) In the first half of 2025, the Group's revenue increased by 10.8% year-on-year to RMB 12.287 billion, and profit attributable to owners of the company grew by 19.5% year-on-year to RMB 1.277 billion, primarily due to economies of scale from revenue growth, improved capacity utilization in the battery housing product line, and cost reduction and efficiency enhancement measures H1 2025 Key Financial Performance | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Year-on-Year Growth (%) | | :--- | :--- | :--- | :--- | | Revenue | 12,286,969 | 11,090,414 | 10.8 | | Profit Attributable to Owners of the Company | 1,276,562 | 1,068,192 | 19.5 | [Segment Revenue](index=20&type=section&id=%E5%88%86%E9%83%A8%E6%94%B6%E5%85%A5) In the first half of 2025, battery housing business revenue increased by 49.8% year-on-year, with its share rising to 29.2%, becoming the main growth driver, while international business performed strongly with revenue growth of 21.6% and a 65.0% share, and China region revenue decreased by 4.9%, mainly due to a decline in market share of joint venture brands in the Chinese market H1 2025 Revenue by Product Type | Segment Category | H1 2025 (RMB thousand) | Share (%) | H1 2024 (RMB thousand) | Share (%) | Year-on-Year Growth (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Battery Housings | 3,581,923 | 29.2 | 2,390,969 | 21.6 | 49.8 | | Plastic Parts | 2,867,481 | 23.3 | 2,842,566 | 25.6 | 0.9 | | Metal and Trim | 2,660,040 | 21.6 | 2,541,801 | 22.9 | 4.6 | | Aluminum Parts | 2,469,038 | 20.1 | 2,372,380 | 21.4 | 4.1 | | Others | 1,669,679 | 13.6 | 1,515,748 | 13.7 | 10.2 | | Inter-segment Eliminations | (961,192) | (7.8) | (573,050) | (5.2) | 67.7 | | **Total Revenue** | **12,286,969** | **100.0** | **11,090,414** | **100.0** | **10.8** | H1 2025 Revenue by Market Category | Market Category | H1 2025 (RMB thousand) | Share (%) | H1 2024 (RMB thousand) | Share (%) | Year-on-Year Growth (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | People's Republic of China | 4,306,273 | 35.0 | 4,525,885 | 40.8 | -4.9 | | Other Countries | 7,980,696 | 65.0 | 6,564,529 | 59.2 | 21.6 | | **Total Revenue** | **12,286,969** | **100.0** | **11,090,414** | **100.0** | **10.8** | [Gross Profit](index=21&type=section&id=%E6%AF%9B%E5%88%A9) In the first half of 2025, the Group's gross profit increased by 9.9% year-on-year to RMB 3.473 billion, with a gross profit margin of 28.3%, a slight decrease of 0.2 percentage points from the same period last year, maintaining a healthy level primarily due to economies of scale from revenue growth, reduced procurement costs, and global localized production layout H1 2025 Gross Profit Overview | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Year-on-Year Growth (%) | | :--- | :--- | :--- | :--- | | Gross Profit | 3,473,060 | 3,161,637 | 9.9 | | Gross Profit Margin | 28.3% | 28.5% | -0.2 percentage points | [Investment Income](index=21&type=section&id=%E6%8A%95%E8%B3%87%E6%94%B6%E5%85%A5) In the first half of 2025, the Group's investment income was RMB 108 million, a decrease of approximately RMB 83 million from the same period last year, mainly due to lower interest income H1 2025 Investment Income | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Year-on-Year Change (RMB thousand) | | :--- | :--- | :--- | :--- | | Investment Income | 107,686 | 190,648 | -82,962 | [Other Income](index=21&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) In the first half of 2025, the Group's other income was RMB 125 million, a decrease of approximately RMB 81 million from the same period last year, primarily due to reduced government grants related to income H1 2025 Other Income | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Year-on-Year Change (RMB thousand) | | :--- | :--- | :--- | :--- | | Other Income | 125,212 | 206,501 | -81,289 | [Other Gains and Losses](index=21&type=section&id=%E5%85%B6%E4%BB%96%E5%88%A9%E5%BE%97%E8%88%87%E6%90%8D%E5%A4%B1) In the first half of 2025, the Group's other gains and losses resulted in a net gain of RMB 94 million, a significant increase from the net gain in the same period last year, primarily due to increased realized net gains from derivative financial instruments H1 2025 Other Gains and Losses | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Year-on-Year Change (RMB thousand) | | :--- | :--- | :--- | :--- | | Other Gains and Losses (Net Gain) | 94,231 | 20 | 94,211 | [Distribution and Selling Expenses](index=22&type=section&id=%E5%88%86%E9%8A%B7%E5%8F%8A%E9%8A%B7%E5%94%AE%E9%96%8B%E6%94%AF) In the first half of 2025, the Group's distribution and selling expenses were RMB 512 million, a year-on-year decrease of 3.5%, with its proportion to revenue falling by 0.6 percentage points to 4.2%, mainly due to the easing of the Red Sea incident, a decline in unit transportation costs, and localized production strategies and cost control measures H1 2025 Distribution and Selling Expenses | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Year-on-Year Change (RMB thousand) | Share of Revenue (%) | | :--- | :--- | :--- | :--- | :--- | | Distribution and Selling Expenses | 512,241 | 531,118 | -18,877 | 4.2 (down 0.6 percentage points) | [Administrative Expenses](index=22&type=section&id=%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) In the first half of 2025, the Group's administrative expenses were RMB 805 million, an 8.3% year-on-year increase, primarily due to talent acquisition for global business expansion and increased share option expenses, yet its proportion to revenue decreased by 0.2 percentage points to 6.5%, indicating the Group's continuous optimization of organizational structure and strict control over expenditures H1 2025 Administrative Expenses | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Year-on-Year Change (RMB thousand) | Share of Revenue (%) | | :--- | :--- | :--- | :--- | :--- | | Administrative Expenses | 804,519 | 742,501 | 62,018 | 6.5 (down 0.2 percentage points) | [Research and Development Expenses](index=22&type=section&id=%E7%A0%94%E7%99%BC%E9%96%8B%E6%94%AF) In the first half of 2025, the Group's R&D expenses were RMB 726 million, a 1.6% year-on-year increase, with its proportion to revenue decreasing by 0.5 percentage points to 5.9%, as the Group deepened its R&D strategic transformation, focusing on innovative areas such as new material technologies, intelligent integrated exterior trim, low-altitude aircraft, and intelligent robots, driving long-term sustainable growth through more precise and efficient investment H1 2025 Research and Development Expenses | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Year-on-Year Change (RMB thousand) | Share of Revenue (%) | | :--- | :--- | :--- | :--- | :--- | | Research and Development Expenses | 726,299 | 714,608 | 11,691 | 5.9 (down 0.5 percentage points) | [Interest Expenses](index=23&type=section&id=%E5%88%A9%E6%81%AF%E9%96%8B%E6%94%AF) In the first half of 2025, the Group's interest expenses were RMB 178 million, a 38.6% year-on-year decrease, primarily due to a reduction in both the average borrowing balance and average market loan interest rates H1 2025 Interest Expenses | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Year-on-Year Change (RMB thousand) | | :--- | :--- | :--- | :--- | | Interest Expenses | 178,487 | 290,690 | -112,203 | [Share of Results of Joint Ventures](index=23&type=section&id=%E5%88%86%E4%BD%94%E5%90%88%E7%87%9F%E5%85%AC%E5%8F%B8%E6%A5%AD%E7%B8%BE) In the first half of 2025, the Group's share of results of joint ventures was a net profit of RMB 21.845 million, largely consistent with the same period last year H1 2025 Share of Results of Joint Ventures | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Year-on-Year Change (RMB thousand) | | :--- | :--- | :--- | :--- | | Share of Results of Joint Ventures (Net Profit) | 21,845 | 21,439 | 406 | [Share of Results of Associates](index=23&type=section&id=%E5%88%86%E4%BD%94%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E6%A5%AD%E7%B8%BE) In the first half of 2025, the Group's share of results of associates was a net loss of RMB 10.816 million, a decrease of approximately RMB 3.266 million from the net loss in the same period last year, primarily due to one of the associate companies turning from loss to profit H1 2025 Share of Results of Associates | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Year-on-Year Change (RMB thousand) | | :--- | :--- | :--- | :--- | | Share of Results of Associates (Net Loss) | 10,816 | 14,082 | -3,266 | [Income Tax Expense](index=23&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) In the first half of 2025, the Group's income tax expense was RMB 251 million, a 28.3% year-on-year increase, with the effective tax rate rising by 0.6 percentage points to 16.0% H1 2025 Income Tax Expense | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Year-on-Year Change (RMB thousand) | | :--- | :--- | :--- | :--- | | Income Tax Expense | 251,428 | 196,031 | 55,397 | | Effective Tax Rate | 16.0% | 15.4% | +0.6 percentage points | [Profit Attributable to Non-Controlling Interests](index=24&type=section&id=%E9%9D%9E%E6%8E%A7%E8%82%A1%E6%AC%8A%E7%9B%8A%E6%87%89%E4%BD%94%E6%BA%A2%E5%88%A9) In the first half of 2025, the Group's profit attributable to non-controlling interests was RMB 42.622 million, a significant year-on-year increase of 303.2%, primarily due to increased net profit from non-wholly owned subsidiaries H1 2025 Profit Attributable to Non-Controlling Interests | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Year-on-Year Change (RMB thousand) | | :--- | :--- | :--- | :--- | | Profit Attributable to Non-Controlling Interests | 42,622 | 8,470 | 34,152 | [Liquidity and Financial Resources](index=24&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) As of June 30, 2025, Minth Group's total cash and cash equivalents were approximately RMB 5.731 billion, with net cash flow from operating activities at RMB 2.237 billion, indicating a healthy cash flow position, while trade receivables turnover days shortened to 77 days, trade payables turnover days increased to 94 days, and inventory turnover days increased to 95 days, with the current ratio maintained at 1.2 and the gearing ratio decreasing to 22.3% H1 2025 Liquidity Overview | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (RMB thousand) | | :--- | :--- | :--- | :--- | | Total Cash and Cash Equivalents | 5,731,340 | 5,274,971 | 456,369 | | Net Cash Flow from Operating Activities | 2,236,847 | 1,730,626 (H1 2024) | 506,221 | | Low-Cost Borrowings | 8,859,868 | 8,419,056 | 440,812 | H1 2025 Operational Efficiency Indicators | Indicator | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Trade Receivables Turnover Days | 77 days | 78 days | -1 day | | Trade Payables Turnover Days | 94 days | 91 days | +3 days | | Inventory Turnover Days | 95 days | 94 days | +1 day | | Current Ratio | 1.2 | 1.2 | Unchanged | | Gearing Ratio | 22.3% | 24.3% | -2.0 percentage points | [Funding and Financial Policies](index=26&type=section&id=%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E6%94%BF%E7%AD%96) Minth Group adheres to prudent funding and financial policies, primarily meeting capital expenditure and working capital needs through cash generated from operating activities and bank loans, with the Board of Directors regularly reviewing and evaluating these policies to ensure financial stability and support sustainable growth - The Group primarily meets capital expenditure, working capital needs, and other liquidity requirements through cash generated from operating activities and bank and other loans[64](index=64&type=chunk) - The Board of Directors reviews and evaluates the Group's funding and financial policies from time to time to ensure their adequacy and effectiveness in supporting sustainable growth[64](index=64&type=chunk) [Commitments](index=26&type=section&id=%E6%89%BF%E6%93%94) As of June 30, 2025, Minth Group had contracted capital expenditures of RMB 407 million that were not provided for in the condensed consolidated financial statements, primarily for the acquisition of property, plant, and equipment, a decrease from the end of 2024 Capital Expenditure Commitments | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Acquisition of Property, Plant and Equipment | 406,547 | 468,437 | [Interest Rate and Foreign Exchange Risk](index=26&type=section&id=%E5%88%A9%E7%8E%87%E5%8F%8A%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA) As of June 30, 2025, Minth Group's bank borrowings totaled approximately RMB 8.860 billion, with most bearing floating interest rates and approximately RMB 6.004 billion denominated in non-functional currencies, prompting the Group to actively manage foreign exchange risk through currency borrowings, hedging instruments, and local currency settlements, and utilizing financial derivatives for risk prevention June 30, 2025 Bank Borrowings Overview | Indicator | Amount (RMB thousand) | | :--- | :--- | | Bank Borrowings Balance | 8,859,868 | | Due within One Year | 7,015,322 | | Due after One Year | 1,844,546 | | Fixed Interest Rate | 929,256 | | Floating Interest Rate | 7,930,612 | | Denominated in Non-Functional Currency | 6,004,216 | - The Group's management highly focuses on foreign exchange risk, partially hedging net foreign currency investments through currency borrowings and other hedging instruments, and selecting local currencies as settlement currencies based on international strategic layout to reduce the scale of foreign currency business[68](index=68&type=chunk) - The Group also uses financial derivative products such as forward foreign exchange contracts, currency swaps, options, and interest rate swaps to further mitigate interest rate and foreign exchange risks[68](index=68&type=chunk) [Contingent Liabilities](index=27&type=section&id=%E6%88%96%E6%9C%89%E8%B2%A0%E5%82%B5) As of June 30, 2025, Minth Group had no contingent liabilities - As of June 30, 2025, the Group had no contingent liabilities[69](index=69&type=chunk) [Pledged Assets](index=28&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, Minth Group had pledged land use rights, property, plant and equipment, bills receivable, and bank deposits as collateral for various borrowings, with a total carrying value of approximately RMB 589 million June 30, 2025 Pledged Assets Overview | Pledged Asset Type | Carrying Value (RMB thousand) | | :--- | :--- | | Land Use Rights | 6,034 | | Property, Plant and Equipment | 22,466 | | Bills Receivable | 14,778 | | Bank Deposits | 545,537 | | **Total** | **588,815** | [Capital Expenditure](index=29&type=section&id=%E8%B3%87%E6%9C%AC%E9%96%8B%E6%94%AF) In the first half of 2025, Minth Group's capital expenditure was RMB 902 million, a 17.5% year-on-year decrease, primarily invested in international market capacity layout and expansion of products such as battery housings and body chassis structural parts, with the reduction attributed to the realization of global capacity layout, strict control over fixed asset investments, and improved capacity utilization efficiency H1 2025 Capital Expenditure | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Capital Expenditure | 902,056 | 1,093,333 | -17.5 | - Capital expenditure was primarily directed towards international market capacity layout and capacity expansion for products such as battery housings and body chassis structural parts[72](index=72&type=chunk) - The reduction in capital expenditure is mainly due to the Group's achieved global capacity layout and synergy, strict control over fixed asset investments, active promotion of old equipment renovation and reuse, and improved capacity utilization efficiency[72](index=72&type=chunk) [Placing and Subscription](index=29&type=section&id=%E9%85%8D%E5%94%AE%E5%8F%8A%E8%AA%8D%E8%B3%BC) In the first half of 2025, Minth Group did not place or subscribe for any shares - During the review period, the Group did not place or subscribe for any shares[73](index=73&type=chunk) [Significant Acquisitions and Disposals](index=29&type=section&id=%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E8%88%87%E5%87%BA%E5%94%AE) In the first half of 2025, Minth Group had no significant acquisitions or disposals of subsidiaries, joint ventures, or associates - During the review period, the Group had no significant acquisitions or disposals of subsidiaries, joint ventures, or associates[74](index=74&type=chunk) [Employees](index=29&type=section&id=%E5%83%B1%E5%93%A1) As of June 30, 2025, Minth Group had 26,357 employees, an increase of 694 from the end of 2024, primarily due to increased manpower demand from revenue growth and global strategy, as the Group continued to advance organizational efficiency upgrades, strengthen global operational capabilities, deepen human resource global governance, and optimize compensation and benefits strategies to incentivize core talent and support sustainable development Employee Count and Costs | Indicator | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Total Employees | 26,357 | 25,663 | Increase of 694 | | Total Staff Costs (H1 2025) | RMB 2,589.123 million | RMB 2,356.933 million (H1 2024) | Increase of RMB 232.19 million | - The Group continues to advance its organizational efficiency upgrade strategy, strengthening global operational capabilities by promoting R&D system upgrades and supply chain vertical integration to achieve deep coupling of technological R&D and business needs[76](index=76&type=chunk) - Deepening human resource global governance, successfully building a global human resource sharing platform, empowering European and American teams with digital tools, and updating talent and compensation & benefits strategies in key European markets to ensure high-quality product delivery[78](index=78&type=chunk) [Directors](index=32&type=section&id=%E8%91%A3%E4%BA%8B) This section lists the changes in Minth Group's Board of Directors during the review period, including executive, non-executive, and independent non-executive directors, and discloses resignation information for some directors - Executive Directors include **Wei Qinglian (Chairperson and CEO), Ye Guoqiang, Zhang Yuxia, and William Chin (appointed on May 30, 2025)**[81](index=81&type=chunk) - Independent Non-Executive Directors **Chen Baihong and Hu Dingwu were appointed on May 30, 2025**, and **Wang Jing retired on the same day**[81](index=81&type=chunk) - **Mr. Chen Baihong resigned as an independent non-executive director of Kaisa Prosperity Holdings Limited on June 27, 2025**[81](index=81&type=chunk) [Share Option Scheme](index=33&type=section&id=%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%A8%88%E5%8A%83) Minth Group has a share option scheme designed to incentivize and reward selected participants who contribute to the Group, with the 2022 Share Option Scheme valid for ten years and the total number of shares that may be allocated and issued cumulatively not exceeding 10% of the issued shares, and as of the date of this interim report, the total number of outstanding share options under the 2012 and 2022 Share Option Schemes was 46,214,000, representing approximately 3.97% of the issued shares - The **2022 Share Option Scheme** aims to grant share options to the Company's directors, Group employees, and service providers as incentives and rewards[82](index=82&type=chunk) - The **2022 Share Option Scheme** is valid for **ten years**, and the total number of shares that may be allocated and issued cumulatively shall not exceed **10% of the Company's issued shares as of May 31, 2022 (i.e., 116,183,579 shares)**[83](index=83&type=chunk) Share Option Scheme Overview (as of June 30, 2025) | Indicator | Quantity | | :--- | :--- | | 2012 Share Option Scheme Outstanding Options | 7,995,000 options (approx. 0.69% of issued shares) | | 2022 Share Option Scheme Outstanding Options | 27,003,000 options (approx. 2.32% of issued shares) | | Total Share Options as of January 1, 2025 | 47,450,600 options | | Share Options Exercised in H1 2025 | 409,400 options | | Share Options Lapsed in H1 2025 | 827,200 options | | Total Share Options as of June 30, 2025 | 46,214,000 options | [Share Award Scheme](index=38&type=section&id=%E8%82%A1%E4%BB%BD%E7%8D%8E%E5%8B%B5%E8%A8%88%E5%8A%83) Minth Group adopted a Share Award Scheme on July 28, 2020, to recognize the contributions of eligible participants, retain talent, and attract suitable personnel, with a total of 112,892,450 award shares available for grant as of the date of this interim report, representing approximately 9.71% of the total issued shares, and in the first half of 2025, the Group granted 895,000 award shares, with 1,339,450 award shares vested and 692,550 forfeited - The Share Award Scheme aims to recognize the contributions of eligible participants, provide incentives to retain talent, and attract suitable personnel for the Group's further development[94](index=94&type=chunk) - Eligible participants include employees (including executive directors), non-executive directors, independent non-executive directors, or key personnel of any member company of the Group, as well as individuals or employees of companies/entities providing services[95](index=95&type=chunk) Share Award Scheme Overview (as of June 30, 2025) | Indicator | Quantity | | :--- | :--- | | Total Award Shares Available for Grant as of January 1, 2025 | 113,094,900 shares | | Total Award Shares Available for Grant as of June 30, 2025 | 112,892,450 shares (approx. 9.71% of total issued shares) | | Award Shares Granted in H1 2025 | 895,000 shares | | Award Shares Vested in H1 2025 | 1,339,450 shares | | Award Shares Forfeited in H1 2025 | 692,550 shares | [Outlook and Strategies](index=49&type=section&id=%E5%B1%95%E6%9C%9B%E8%88%87%E7%AD%96%E7%95%A5) Minth Group anticipates China's passenger vehicle sales to reach 28.9 million units and new energy vehicle sales to reach 16 million units in 2025, with global light vehicle sales projected to increase by 1.7%, as the Group actively responds to industry changes by focusing on customer needs, continuously building comprehensive competitiveness in technology, quality, and cost, deepening global localized supply capabilities, flexibly adjusting global production capacity, closely monitoring tariff policies, and further increasing the proportion of localized production in North America to achieve a parallel global and regional layout 2025 Automotive Market Forecast | Market | Forecast Sales | Year-on-Year Growth | | :--- | :--- | :--- | | China Passenger Vehicles | 28.9 million units | 4.9% | | China New Energy Vehicles | 16 million units | 24.4% | | Global Light Vehicles | 89.6 million units | 1.7% | - The Group will be customer-centric, continuously building comprehensive competitiveness in technology, quality, and cost, and strategically planning and innovating technologies in line with trends such as new energy product development, intelligent technology innovation, and lightweighting[119](index=119&type=chunk) - To address tariffs and geopolitical factors, the Group will further increase the proportion of localized production in North America, while continuously strengthening business and market diversification to achieve a parallel global and regional layout[120](index=120&type=chunk)[121](index=121&type=chunk) [Dividends](index=51&type=section&id=%E8%82%A1%E6%81%AF) The Directors do not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Directors do not recommend the payment of an interim dividend for the six months ended June 30, 2025 (H1 2024: nil)[122](index=122&type=chunk) Other Information [Major Shareholders](index=52&type=section&id=%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1) As of June 30, 2025, Mr. Qin Ronghua and Minth Holdings Limited, wholly owned by him, were Minth Group's major shareholders, collectively holding 38.72% of the company's issued shares, with JPMorgan Chase & Co. also holding significant shares June 30, 2025 Major Shareholder Holdings | Major Shareholder Name | Capacity | Long/Short Position | Total Ordinary Shares | Percentage of Issued Shares | | :--- | :--- | :--- | :--- | :--- | | Qin Ronghua | Interest of controlled corporation/Spouse's interest | Long Position | 450,072,000 / 750,000 | 38.72% / 0.06% | | Minth Holdings Limited | Beneficial owner | Long Position | 450,072,000 | 38.72% | | JPMorgan Chase & Co. | Investment manager/Beneficial owner/Person with security interest in shares/Approved lending agent | Long/Short Position | 52,125,583 (Long) / 6,845,354 (Short) | 4.48% (Long) / 0.59% (Short) | [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares, and Debentures of the Company or Any Associated Corporation](index=54&type=section&id=%E8%91%A3%E4%BA%8B%E5%92%8C%E6%9C%80%E9%AB%98%E8%A1%8C%E6%94%BF%E4%BA%BA%E5%93%A1%E5%9C%A8%E6%9C%AC%E5%85%AC%E5%8F%B8%E6%88%96%E4%BB%BB%E4%BD%95%E7%9B%B8%E8%81%AF%E6%B3%95%E5%9C%96%E7%9A%84%E8%82%A1%E4%BB%BD%E3%80%81%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E5%92%8C%E5%82%B5%E6%AC%8A%E8%AD%89%E7%9A%84%E6%AC%8A%E7%9B%8A%E5%92%8C%E6%B7%A1%E5%80%89) As of June 30, 2025, Minth Group's directors and chief executive and their associates held interests and short positions in the company's shares, underlying shares, and debentures, with Ms. Wei Qinglian holding a 0.06% beneficial owner interest and a 38.72% spouse interest, and other directors such as Mr. Ye Guoqiang, Ms. Zhang Yuxia, and Mr. William Chin also holding varying proportions of beneficial owner interests June 30, 2025 Directors' and Chief Executive's Shareholdings | Name | Capacity | Total Ordinary Shares | Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Wei Qinglian | Beneficial owner | 750,000 | 0.06% | | Wei Qinglian | Spouse's interest | 450,072,000 | 38.72% | | Ye Guoqiang | Beneficial owner | 865,000 | 0.07% | | Zhang Yuxia | Beneficial owner | 1,080,000 | 0.09% | | William Chin | Beneficial owner | 300,000 | 0.03% | | Qin Qianya | Beneficial owner | 250,000 | 0.02% | | Mo Guibiao | Beneficial owner | 50,000 | 0.004% | | Sako Tatsunobu | Beneficial owner | 50,000 | 0.004% | | Meng Liqiu | Beneficial owner | 50,000 | 0.004% | | Wang Jing | Beneficial owner | 150,000 | 0.01% | [Purchase, Sale or Redemption of the Company's Listed Securities](index=56&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%B9%8B%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) In the first half of 2025, Minth Group repurchased 886,000 of its own shares and held them as treasury shares at a total cost of HKD 16,806,270, while share option scheme grantees exercised 409,400 share options and 827,200 share options lapsed, and under the share award scheme, 895,000 award shares were granted, 1,339,450 shares vested, and 692,550 shares lapsed H1 2025 Share Repurchase Activity | Date of Repurchase | Number of Shares Repurchased | Total Price Paid (HKD) | | :--- | :--- | :--- | | March 2025 | 246,000 | 5,158,300.20 | | April 2025 | 640,000 | 11,647,969.80 | | **Total** | **886,000** | **16,806,270.00** | - Grantees of the share option scheme exercised a total of **409,400 share options**, and **827,200 share options lapsed** due to grantees' resignation[132](index=132&type=chunk) - Under the share award scheme, a total of **895,000 award shares were granted**, **1,339,450 award shares vested**, and **692,550 award shares were forfeited** due to grantees' resignation or failure to meet key performance indicators[132](index=132&type=chunk) [Compliance with Corporate Governance Code and Model Code](index=57&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%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) Minth Group's corporate governance practices are based on the HKEX Corporate Governance Code, with deviations noted in the attendance of independent non-executive directors at general meetings and the combined roles of Chairman and CEO, though the Board believes sufficient checks and balances are in place, and all directors confirm strict compliance with the Model Code - Independent Non-Executive Directors **Mr. Sako Tatsunobu and Dr. Wang Jing attended the 2025 Annual General Meeting electronically**, while **Mr. Mo Guibiao attended in person**, and **Ms. Qin Qianya and Professor Meng Liqiu were unable to attend due to other business commitments**[136](index=136&type=chunk) - The roles of Chairperson and Chief Executive Officer are combined and held by **Ms. Wei Qinglian**, which the Board believes remains appropriate during the transition period to enhance decision-making efficiency, and sufficient checks and balances have been implemented[136](index=136&type=chunk)[137](index=137&type=chunk) - All Directors confirm strict compliance with the **Model Code for Securities Transactions by Directors of Listed Issuers** during the review period[137](index=137&type=chunk) [Major Litigation and Arbitration](index=58&type=section&id=%E9%87%8D%E5%A4%A7%E8%A8%B4%E8%A8%9F%E5%92%8C%E4%BB%B2%E8%A3%81) In the first half of 2025 and up to the date of this interim report, Minth Group had no major litigation or arbitration matters - During the review period and up to the date of this interim report, the Group had no major litigation or arbitration matters[138](index=138&type=chunk) [Audit Committee and Auditor](index=58&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83%E5%8F%8A%E6%A0%B8%E6%95%B8%E5%B8%AB) Minth Group's Audit Committee, comprising five independent non-executive directors, is responsible for reviewing internal control systems and financial statements, and has reviewed and recommended the adoption of the unaudited condensed consolidated financial statements for the six months ended June 30, 2025, with auditor Deloitte Touche Tohmatsu expressing an unmodified opinion on the interim financial report - The Audit Committee, composed of **five independent non-executive directors**, is responsible for reviewing the Group's internal control systems and the completeness and accuracy of its financial statements[139](index=139&type=chunk) - The Audit Committee has reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2025, and this interim report, and recommended their adoption by the Board of Directors[139](index=139&type=chunk) - The auditor, **Deloitte Touche Tohmatsu**, has reviewed the interim financial report in accordance with **Hong Kong Standard on Review Engagements 2410** and issued an unmodified opinion[140](index=140&type=chunk) [Supplementary Information](index=59&type=section&id=%E8%A3%9C%E5%85%85%E8%B3%87%E6%96%99) This section provides additional supplementary information for Minth Group's 2024 annual report, including updates on continuing connected transactions and planned uses of treasury shares [Continuing Connected Transactions](index=59&type=section&id=%E6%8C%81%E7%BA%8C%E9%97%9C%E9%80%A3%E4%BA%A4%E6%98%93) Minth Group entered into multiple procurement agreements with Jiaxing Chunmin Electronics Co., Ltd. for automotive camera devices, parts, and accessories, and on December 31, 2024, the Group signed new Jiaxing Camera Procurement Agreements and Hubei Camera Procurement Agreements, replacing the original agreements, valid until December 31, 2027, with an annual cap of RMB 46.302 million for each - The Group entered into multiple procurement agreements with **Jiaxing Chunmin Electronics Co., Ltd.** for automotive camera devices, parts, and accessories, as well as printed circuit board assemblies[142](index=142&type=chunk) - On **December 31, 2024**, the Group signed new Jiaxing Camera Procurement Agreements and Hubei Camera Procurement Agreements, replacing the original agreements, with a term from **January 1, 2025, to December 31, 2027**[144](index=144&type=chunk) Annual Cap for Continuing Connected Transactions | Agreement | Term | Annual Cap (RMB thousand) | | :--- | :--- | :--- | | Jiaxing Camera Procurement Agreement and Hubei Camera Procurement Agreement | Three years ending December 31, 2027 | 46,302 per year | [Planned Use of Treasury Shares](index=61&type=section&id=%E5%BA%AB%E5%AD%98%E8%82%A1%E4%BB%BD%E4%B9%8B%E8%A8%88%E5%8A%83%E7%94%A8%E9%80%94) Minth Group plans to determine whether and how to use repurchased treasury shares based on market conditions and capital management needs, in accordance with the Listing Rules and applicable laws - The Company plans to determine whether and how to use such repurchased treasury shares based on prevailing market conditions and the Group's capital management needs, in accordance with the Listing Rules, the Company's Memorandum and Articles of Association, and applicable laws of the Cayman Islands[146](index=146&type=chunk) Review Report on Condensed Consolidated Financial Statements [Scope of Review and Conclusion](index=62&type=section&id=%E5%AF%A9%E9%96%B1%E7%AF%84%E5%9C%8D%E8%88%87%E7%B5%90%E8%AB%96) Deloitte Touche Tohmatsu has completed its review of Minth Group's condensed consolidated financial statements, with the scope of review being less than an audit, thus no audit opinion is expressed, and based on the review, the auditor has not noted any matters that cause them to believe that the condensed consolidated financial statements are not prepared in all material respects in accordance with Hong Kong Accounting Standard 34 - The auditor conducted the review in accordance with **Hong Kong Standard on Review Engagements 2410**, with a scope significantly smaller than an audit conducted in accordance with Hong Kong Standards on Auditing, thus no audit opinion is expressed[150](index=150&type=chunk) - Based on the review, the auditor did not note any matters that caused them to believe that the condensed consolidated financial statements were not prepared in all material respects in accordance with **Hong Kong Accounting Standard 34**[151](index=151&type=chunk) Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income [H1 2025 Performance Overview](index=64&type=section&id=2025%E5%B9%B4%E4%B8%8A%E5%8D%8A%E5%B9%B4%E6%A5%AD%E7%B8%BE%E6%A6%82%E8%A7%88) For the six months ended June 30, 2025, Minth Group's revenue reached RMB 12.287 billion, profit for the period was RMB 1.319 billion, and profit attributable to owners of the company was RMB 1.277 billion, with total comprehensive income for the period at RMB 1.919 billion and basic earnings per share at RMB 1.120 H1 2025 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Key Data | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 12,286,969 | 11,090,414 | | Gross Profit | 3,473,060 | 3,161,637 | | Profit Before Tax | 1,570,612 | 1,272,693 | | Profit for the Period | 1,319,184 | 1,076,662 | | Profit Attributable to Owners of the Company | 1,276,562 | 1,068,192 | | Total Comprehensive Income for the Period | 1,918,542 | 1,001,976 | | Basic Earnings Per Share | RMB 1.120 | RMB 0.928 | - Exchange differences arising from the translation of financial statements of overseas operations turned from a **loss of RMB 74,456 thousand in H1 2024 to a gain of RMB 600,436 thousand in H1 2025**, significantly impacting total comprehensive income positively[155](index=155&type=chunk) Condensed Consolidated Statement of Financial Position [Financial Position Overview as of June 30, 2025](index=66&type=section&id=2025%E5%B9%B46%E6%9C%8830%E6%97%A5%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E6%A6%82%E8%A7%88) As of June 30, 2025, Minth Group's total assets were RMB 40.637 billion, a 2.6% increase from the end of 2024, with net current assets at RMB 2.897 billion and total equity at RMB 22.728 billion, where property, plant, and equipment constituted the largest portion of non-current assets, and current liabilities primarily consisted of trade payables and borrowings June 30, 2025 Condensed Consolidated Statement of Financial Position Key Data | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-Current Assets | 22,139,611 | 21,589,587 | | Current Assets | 18,497,961 | 17,169,349 | | Current Liabilities | 15,601,267 | 14,576,791 | | Net Current Assets | 2,896,694 | 2,592,558 | | Total Assets Less Current Liabilities | 25,036,305 | 24,182,145 | | Total Equity | 22,727,904 | 21,258,931 | | Non-Current Liabilities | 2,308,401 | 2,923,214 | - Property, plant and equipment is the largest non-current asset, totaling **RMB 16.252 billion**, an increase from the end of 2024[158](index=158&type=chunk) - Total borrowings amounted to **RMB 8.860 billion**, of which **RMB 7.015 billion were current liabilities** and **RMB 1.845 billion were non-current liabilities**[159](index=159&type=chunk) Condensed Consolidated Statement of Changes in Equity [H1 2025 Equity Movement Overview](index=68&type=section&id=2025%E5%B9%B4%E4%B8%8A%E5%8D%8A%E5%B9%B4%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E6%A6%82%E8%A7%88) For the six months ended June 30, 2025, Minth Group's total equity increased from RMB 21.259 billion as of January 1, 2025, to RMB 22.728 billion, with equity attributable to owners of the company increasing by RMB 1.841 billion, primarily influenced by profit for the period and other comprehensive income, especially the increase in exchange reserves, and a final dividend of RMB 465 million for 2024 was distributed during the period H1 2025 Condensed Consolidated Statement of Changes in Equity Key Data | Indicator | January 1, 2025 (RMB thousand) | June 30, 2025 (RMB thousand) | | :--- | :--- | :--- | | Equity Attributable to Owners of the Company | 20,445,152 | 21,847,677 | | Non-Controlling Interests | 813,779 | 880,227 | | **Total Equity** | **21,258,931** | **22,727,904** | | Profit for the Period | - | 1,276,562 (Attributable to Owners of the Company) | | Other Comprehensive Income for the Period | - | 564,302 (Attributable to Owners of the Company) | | Equity-Settled Share-Based Payments Recognized | - | 32,045 | | Dividends Declared | - | (460,639) | | Exercise of Share Options and Vesting of Restricted Shares | - | 5,731 | | Treasury Shares | - | (15,610) | - Exchange reserves turned from a **loss of RMB 179,432 thousand as of January 1, 2025, to a gain of RMB 385,948 thousand as of June 30, 2025**, positively impacting equity attributable to owners of the company[161](index=161&type=chunk) - On **June 25, 2025**, a dividend of **HKD 0.435 per share** was distributed to shareholders as the **2024 final dividend**, totaling **RMB 465,211 thousand**[192](index=192&type=chunk) Condensed Consolidated Statement of Cash Flows [H1 2025 Cash Flow Overview](index=70&type=section&id=2025%E5%B9%B4%E4%B8%8A%E5%8D%8A%E5%B9%B4%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E6%A6%82%E8%A7%88) For the six months ended June 30, 2025, Minth Group's net cash generated from operating activities was RMB 2.237 billion, net cash used in investing activities was RMB 161 million, and net cash used in financing activities was RMB 1.149 billion, with cash and cash equivalents at the end of the period totaling RMB 3.413 billion, an increase of RMB 927 million from the beginning of the period H1 2025 Condensed Consolidated Statement of Cash Flows Key Data | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 2,236,847 | 1,730,626 | | Net Cash (Used in) Generated from Investing Activities | (160,965) | 31,017 | | Net Cash (Used in) Financing Activities | (1,149,320) | (437,574) | | Net Increase in Cash and Cash Equivalents | 926,562 | 1,324,069 | | Cash and Cash Equivalents at End of Period | 3,412,703 | 5,503,250 | - Net cash from investing activities turned from a **net inflow in H1 2024 to a net outflow in H1 2025**, primarily due to the **purchase of property, plant and equipment (RMB 902 million)** and **investment in other financial assets (RMB 2.478 billion)**[165](index=165&type=chunk) - Net cash outflow from financing activities increased, mainly due to **repayment of borrowings (RMB 11.593 billion)** and **dividends paid (RMB 461 million)**, despite being partially offset by **new borrowings (RMB 11.912 billion)**[166](index=166&type=chunk) Notes to the Condensed Consolidated Financial Statements [Basis of Preparation](index=72&type=section&id=%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, and are presented in Renminbi, which is also the functional currency of the Company - The condensed consolidated financial statements are prepared in accordance with **Hong Kong Accounting Standard 34 'Interim Financial Reporting'** issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[167](index=167&type=chunk) - The condensed consolidated financial statements are presented in **Renminbi**, which is also the functional currency of the Company[168](index=168&type=chunk) [Principal Accounting Policies](index=72&type=section&id=%E4%B8%BB%E8%A6%81%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) The condensed consolidated financial statements are prepared on a historical cost basis, except for certain financial instruments measured at fair value, and the Group first applied the revised Hong Kong Accounting Standard 21 'Lack of Exchangeability' during this interim period, which had no significant impact on its financial position or performance - The condensed consolidated financial statements are prepared on a **historical cost basis**, except for certain financial instruments measured at fair value[169](index=169&type=chunk) - The Group first applied the revised **Hong Kong Accounting Standard 21 'Lack of Exchangeability'** issued by the Hong Kong Institute of Certified Public Accountants during this interim period, which had no significant impact on the Group's financial position and performance and/or the disclosures contained in these condensed consolidated financial statements for the current and prior periods[170](index=170&type=chunk) [Revenue from Contracts with Customers](index=73&type=section&id=%E5%AE%A2%E6%88%B6%E5%90%88%E7%B4%84%E6%94%B6%E5%85%A5) In the first half of 2025, Minth Group's total revenue from contracts with customers amounted to RMB 12.287 billion, with automotive component sales accounting for RMB 11.635 billion and mold sales for RMB 652 million, all revenue recognized at a point in time, and international market revenue comprising 65.0% of the total H1 2025 Revenue from Contracts with Customers Details | Type of Goods | Automotive Components (RMB thousand) | Molds (RMB thousand) | Total (RMB thousand) | | :--- | :--- | :--- | :--- | | Sale of Goods | 11,634,570 | 652,399 | 12,286,969 | | **Geographical Market** | | | | | China | 4,007,449 | 298,824 | 4,306,273 | | Other Countries | 7,627,121 | 353,575 | 7,980,696 | - All of the Group's revenue is rec

CONTENTS 目錄 | 2 | Corporate Information | 公司資料 | | --- | --- | --- | | 6 | Management Discussion and Analysis | 管理層討論與分析 | | 37 | Other Information | 其他資料 | | 47 | Condensed Consolidated Income Statement | 簡明綜合收益表 | | 49 | Condensed Consolidated Statement of | 簡明綜合全面收益表 | | | Comprehensive Income | | | 51 | Condensed Consolidated Statement of Financial Position | 簡明綜合財務狀況表 | | 54 | Condensed Consolidated Statement of Changes in Equity | 簡明綜合權益變動表 | | 57 | Condensed Consolidated Statement of Cash Flows | 簡明綜 ...

INTERIM REPORT 中期報告 25 20 INTERIM REPORT 中期報告 2025 Contents 目錄 | 2 | Corporate Information | 公司資料 | | --- | --- | --- | | 5 | Financial Highlights | 財務摘要 | | 7 | Management Discussion and Analysis | 管理層討論及分析 | | 21 | Other Information and | 其他資料及企業管治概要 | | | Corporate Governance Highlights | | | 28 | Condensed Consolidated Statement of Profit | 簡明綜合損益及 | | | or Loss and Other Comprehensive Income | 其他全面收益表 | | 29 | Condensed Consolidated Statement of | 簡明綜合財務狀況表 | | | Financial Position | | | 31 | Condensed ...

Financial Performance - For the six months ended June 30, 2025, the company's revenue was approximately HKD 23,202,000, a decrease of about 66.3% compared to HKD 68,889,000 in the same period of 2024[4] - The loss attributable to equity shareholders for the same period was approximately HKD 4,193,000, a reduction of about 19.9% from HKD 5,235,000 in 2024[4] - The company's gross profit for the six months ended June 30, 2025, was HKD 716,000, down from HKD 2,007,000 in 2024[5] - The total comprehensive loss for the period was HKD 4,174,000, compared to HKD 5,342,000 in the same period of 2024[5] - The group reported a consolidated loss before tax of HKD 4,211,000 for the six months ended June 30, 2025, compared to a loss of HKD 5,332,000 for the same period in 2024[24][26] - The company reported a pre-tax loss of HKD 4,193,000 for the six months ended June 30, 2025, compared to a loss of HKD 5,235,000 for the same period in 2024, indicating an improvement of approximately 19.9%[37] Revenue Breakdown - Revenue from telecommunications services was HKD 3,393,000, down 24.4% from HKD 4,481,000 in the previous year[18] - Distribution business revenue significantly decreased to HKD 19,809,000 from HKD 64,408,000, representing a decline of 69.1%[18] - The revenue from telecommunications services and distribution business was approximately HKD 3,393,000 and HKD 19,809,000, accounting for about 14.6% and 85.4% of total revenue, respectively[75] - Revenue from telecommunications services for the six months ended June 30, 2025, was approximately HKD 3,376,000, a decrease of about 24.3% compared to approximately HKD 4,460,000 in the same period last year[65] - The distribution business in Hong Kong generated revenue of approximately HKD 6,829,000 for the six months ended June 30, 2025, a decrease of about 78.2% from approximately HKD 31,288,000 in the same period last year[67] - The distribution business in China reported revenue of approximately HKD 1,167,000 for the six months ended June 30, 2025, a decrease of about 69.5% from approximately HKD 3,831,000 in the same period last year[68] - Revenue from mobile and data recharge distribution in Singapore decreased by approximately 59.7% to about HKD 11,813,000 for the six months ended June 30, 2025, down from approximately HKD 29,289,000 in the same period last year[69] Assets and Liabilities - Total assets less current liabilities as of June 30, 2025, amounted to HKD 31,370,000, compared to HKD 35,241,000 as of December 31, 2024[6] - The company's cash and cash equivalents decreased to HKD 22,972,000 as of June 30, 2025, from HKD 26,571,000 at the beginning of the period[9] - The company's equity totalled HKD 30,622,000 as of June 30, 2025, down from HKD 34,796,000 as of December 31, 2024[7] - The group’s current assets net value was approximately HKD 29,416,000 as of June 30, 2025, with cash and cash equivalents around HKD 22,972,000[80] - Trade receivables amounted to HKD 30,337,000 as of June 30, 2025, slightly down from HKD 30,919,000 as of December 31, 2024, a decrease of about 1.9%[43] - Trade payables as of June 30, 2025, were HKD 3,298,000, down from HKD 3,527,000 as of December 31, 2024[47] Cash Flow and Operating Activities - The net cash used in operating activities for the six months ended June 30, 2025, was HKD 3,720,000, compared to HKD 4,509,000 in 2024[9] - The group’s cash and cash equivalents decreased by approximately 13.5% from HKD 26,805,000 as of December 31, 2024, to HKD 22,972,000 as of June 30, 2025[46] Dividends and Share Capital - The company did not recommend any dividend payment for the six months ended June 30, 2025[4] - The group’s issued and paid-up share capital remained at HKD 48,975,000 as of June 30, 2025, unchanged from December 31, 2024[49] - The board does not recommend any dividend payment for the six months ended June 30, 2025, consistent with the previous period[88] Management and Governance - The financial report was prepared in accordance with the International Financial Reporting Standards and was reviewed by the company's audit committee[13] - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited results for the six months ending June 30, 2025, and confirmed compliance with applicable accounting standards[103] - The company is committed to maintaining high standards of corporate governance to protect shareholder interests[97] - The company has complied with the corporate governance code as per GEM Listing Rules Appendix C1 as of June 30, 2025[97] Business Strategy and Market Outlook - The group is actively negotiating with service providers to further reduce the unit cost of call time and mobile data to lower the selling price of prepaid products and enhance competitiveness[66] - The group plans to expand its distribution network to overseas markets, targeting overseas users traveling abroad to enjoy mobile data services at lower prices[66] - Management has decided to suspend the sale of mobile and data recharge electronic vouchers starting from the third quarter of 2025 due to ongoing market competition and declining gross margins[70] - The group plans to launch upgraded roaming plans integrating AI real-time translation and eSIM technology to enhance customer experience[71] - The group aims to explore partnerships with hotels and airlines to tap into incremental demand amid market challenges[73] - The group is cautiously optimistic about medium to long-term business development despite ongoing global economic uncertainties[72] Employee and Compensation - The group reported a total of HKD 929,000 in key management personnel compensation for the six months ended June 30, 2025, slightly up from HKD 928,000 for the same period in 2024[62] - The group maintains 18 employees as of June 30, 2025, with compensation based on market terms and individual performance[87] Shareholder Information - As of June 30, 2025, major shareholders include New Everich Holdings Limited, holding 42.65% of the shares, with significant ownership by Mr. Li Jiancheng[89][92] - No other individuals, apart from the disclosed major shareholders, hold 10% or more of the company's shares as of June 30, 2025[93] Compliance and Risk Management - The audit committee has confirmed the effectiveness of the risk management and internal control systems as of June 30, 2025[103] - The company has not engaged in any securities trading violations as confirmed by the board of directors[98]

目錄 公司資料 2 摘要 4 主席報告 8 管理層討論及分析 11 其他資料 30 中期財務資料的審閱報告 55 中期簡明綜合收益表 56 中期簡明綜合全面收益表 57 中期簡明綜合財務狀況表 58 中期簡明綜合權益變動表 60 中期簡明綜合現金流量表 64 中期財務資料附註 66 釋義 120 詞彙 128 董事會 執行董事 王興先生 （董事長兼首席執行官） 穆榮均先生 獨立非執行董事 歐高敦先生 冷雪松先生 沈向洋博士 楊敏德女士 審核委員會 歐高敦先生 （主席） 冷雪松先生 沈向洋博士 楊敏德女士 薪酬委員會 冷雪松先生 （主席） 沈向洋博士 穆榮均先生 提名委員會 冷雪松先生 （主席） 沈向洋博士 楊敏德女士 （於2025年5月26日獲委任） 企業管治委員會 冷雪松先生 （主席） 沈向洋博士 歐高敦先生 公司資料 聯席公司秘書 徐思嘉女士 劉綺華女士 授權代表 王興先生 穆榮均先生 核數師 香港法律： 達維律師事務所 香港 中環 遮打道三號A 香港會所大廈十樓 羅兵咸永道會計師事務所 執業會計師及 註冊公眾利益實體核數師 香港 中環 太子大廈22樓 註冊辦事處 PO Box 309, Ugland H ...

Revenue and Profit Growth - Revenue for the first half of 2025 reached HKD 54.777 billion, representing a 20.4% increase compared to HKD 45.494 billion in the same period of 2024[8]. - Net profit attributable to shareholders rose by 67.8% to HKD 1.090 billion, compared to HKD 0.650 billion in the previous year[8]. - The adjusted net profit attributable to shareholders was HKD 1.060 billion, reflecting a 62.0% increase from HKD 0.654 billion year-on-year[8]. - In the first half of 2025, the group's revenue increased by 10.9% year-on-year to HKD 33.419 billion, with gross profit rising by 11.4% to HKD 5.197 billion[22]. - The company’s revenue increased by 20.4% from HKD 45.49 billion in the first half of 2024 to HKD 54.78 billion in the first half of 2025[62]. - Profit before tax increased by 61.1% from HKD 882 million in the first half of 2024 to HKD 1.42 billion in the first half of 2025, attributed to significant improvements in operational quality across multiple business lines[80]. - Net profit for the period rose by 60.5% from HKD 653 million in the first half of 2024 to HKD 1.05 billion in the first half of 2025, driven by increased R&D investment in high-end display technology and AI, along with optimized cost structure[82]. Gross Profit and Margins - Gross profit increased by 16.0% to HKD 8.366 billion, up from HKD 7.213 billion year-on-year[8]. - The gross margin for the display business improved by 0.1 percentage points to 15.6%[68]. - The gross margin for the internet business increased by 0.5 percentage points to 54.4%, driven by higher overseas internet revenue[69]. - Gross profit for the same period was HKD 8,365,951,000, compared to HKD 7,212,859,000 in 2024, indicating a growth of about 15.9%[100]. Market Performance and Product Development - The global TV market saw a slight increase in shipment volume of 0.1% year-on-year, with Mini LED TV shipments growing by 149.6% to 4.8 million units in the first half of 2025[12]. - The penetration rate of large-size and Mini LED TVs in the Chinese market contributed to a retail sales growth of 10.9% in the same period[13]. - The global shipment of TCL TVs grew by 7.6% year-on-year to 13.46 million units, maintaining a top two position among global TV brands[22]. - The innovative business segment saw a revenue increase of 42.4% year-on-year to HKD 19.875 billion, with gross profit up by 25.7% to HKD 2.374 billion[25]. - The company plans to continue investing in high-end display technologies and AI to enhance product competitiveness and support its global mid-to-high-end strategy[16]. Expenses and Operational Efficiency - The overall expense ratio decreased by 1.0 percentage points to 11.5%, indicating improved operational efficiency[19]. - Selling and distribution expenses rose by 4.7% to HKD 4.01 billion, reflecting increased investment in brand marketing and product promotion[72]. - Administrative expenses increased by 24.3% from HKD 1.86 billion in the first half of 2024 to HKD 2.31 billion in the first half of 2025, primarily due to increased cash losses from the settlement of derivative financial instruments and higher bonus provisions due to improved performance[73]. - R&D expenses rose by 5.6% year-on-year to HKD 1.154 billion, focusing on advanced display technologies like Mini LED and quantum dot[26]. Cash and Debt Management - The company maintained a net debt-to-equity ratio of 0.0% and cash and cash equivalents increased by 30.4% to HKD 11.442 billion[20]. - As of June 30, 2025, the company's cash and cash equivalents amounted to approximately HKD 11,441,935,000, representing a 30.4% increase compared to December 31, 2024[90]. - The company's capital debt ratio is 0%, with interest-bearing bank loans and lease liabilities totaling approximately HKD 6,220,240,000, which is lower than the cash and cash equivalents[91]. Strategic Initiatives and Future Outlook - The company plans to leverage the historical opportunity of global energy transition and carbon neutrality to become a leading provider of comprehensive new energy solutions[52]. - The company aims to enhance its competitive edge in the power market by deepening channel cooperation and innovating application scenarios in the photovoltaic sector[51]. - The global TV market demand is expected to remain stable, with high growth anticipated for large and high-end TV products, particularly those 75 inches and above[57]. - The company will actively seize new market opportunities brought by AI, increasing R&D investment in AI-related technologies and accelerating the development of AR/XR smart glasses and companion robots[58]. Shareholder Information and Equity - The company has granted 91,497,900 incentive shares under the 2023 Share Incentive Plan as of April 9, 2025[98]. - The total number of issued shares of the company as of June 30, 2025, is 2,520,935,155 shares[188]. - The company has a total of 7,728,700 shares available for future grants after accounting for cancellations and expirations[197]. - The performance targets for the shares granted on January 25, 2024, are based on the percentage increase in adjusted net profit attributable to shareholders for the fiscal year ending December 31, 2023, with a threshold of 65% for full vesting[200].

Financial Performance - Total revenue for the six months ended June 30, 2025, was approximately HKD 45.3 million, a decrease of about HKD 8.1 million or 15.2% compared to the same period in 2024[5] - The group recorded a consolidated profit before tax of approximately HKD 104.6 million, compared to a loss of approximately HKD 94.2 million in 2024[5] - Profit attributable to shareholders for the period was approximately HKD 107.7 million, compared to a loss of approximately HKD 91.1 million in the previous year[5] - The group achieved other comprehensive income of approximately HKD 35.1 million, compared to an expense of approximately HKD 67.3 million in 2024[6] - Financial services revenue, including other financial services, totaled approximately HKD 19,700,000, down from HKD 46,200,000 in the previous year[22] - The tactical and strategic investment segment generated a profit of approximately HKD 140,400,000, a significant improvement from a loss of HKD 88,200,000 in the previous year[19] - The company reported a significant recovery in impairment losses, with a reversal of HKD 36,470,000 for margin loans compared to a loss of HKD 15,636,000 in the previous year[58] - The company reported a net profit attributable to shareholders of HKD 107,663,000 for the six months ended June 30, 2025, compared to a loss of HKD 91,050,000 in the same period of 2024[85] Revenue Sources - Interest income from margin loans decreased to approximately HKD 6 million, down from approximately HKD 35.6 million in 2024, due to a reduction in margin loan interest rates from 8% to 2%[12] - Revenue from the securities and futures advisory services increased to approximately HKD 3.6 million, up from approximately HKD 1.8 million in 2024, driven by increased demand for financial advisory services[12] - Revenue from credit and lending services increased from approximately HKD 1.6 million to approximately HKD 2.3 million, primarily due to an increase in loans during the period[15] Assets and Liabilities - As of June 30, 2025, the company's unaudited net asset value was approximately HKD 1,762,400,000, an increase of about HKD 165,500,000 from the end of the previous fiscal year[24] - The company's total assets increased to HKD 1,076,952,000 from HKD 1,007,147,000, reflecting a growth of 6.9%[60] - Total liabilities as of June 30, 2025, were HKD 290,680,000, compared to HKD 269,424,000 in the previous year, reflecting an increase of approximately 7.8%[74] - The total amount of personal and corporate loans and interest receivable was approximately HKD 233,362,000, with a net amount of HKD 232,782,000 after impairment losses[91] Shareholder Information - As of June 30, 2025, major shareholders included Ms. Luo Qiyin, holding 628,263,640 shares, representing approximately 65.41% of the total issued share capital[50] - Future Capital Group Limited, wholly owned by Ms. Luo Qiyin, also holds 628,263,640 shares, equating to 65.41% of the total issued share capital[51] Corporate Governance and Compliance - The group has complied with all corporate governance codes as outlined in the Listing Rules during the reporting period[39] - The group has no outstanding stock options or share awards as of the reporting period[43] Strategic Initiatives - The company plans to strengthen its integrated financial services system and expand into innovative technology-driven financial services, including cryptocurrency financing and trading[20] - The company anticipates expanding its business opportunities into the artificial intelligence chip and semiconductor sectors through the acquisition of Warpdrive[102] Employee and Management Information - The group has a total of 36 employees, including all directors, as of June 30, 2025[38] - The total compensation for key management personnel was HKD 2,387,000 for the first half of 2025, a decrease of 5.9% from HKD 2,537,000 in the same period of 2024[104] Investment Activities - The company completed the acquisition of Warpdrive Technology Limited for a total consideration of HKD 29,850,000, funded by the issuance of 15,000,000 shares at HKD 1.99 per share[102] - The company acquired an additional 9.9% stake in Genius Spring Limited for HKD 3,800,000, increasing its ownership to 100%[61] Impairment and Provisions - The company has appointed independent professional valuers to assess impairment on outstanding loans, with provisions of approximately HKD 600,000 as of June 30, 2025, compared to HKD 2,000,000 the previous year[16] - The company recognized a provision for impairment losses of HKD 1,045,000 for trade receivables related to corporate advisory services as of June 30, 2025, unchanged from December 31, 2024[89] Fair Value Measurements - The fair value of investment properties decreased from HKD 407.5 million as of December 31, 2024, to HKD 340.5 million as of June 30, 2025, representing a reduction of HKD 67 million[109] - The company utilized independent qualified valuers for the fair value assessment of investment properties, ensuring accuracy in the valuation process[109]

Financial Performance - Revenue for the six months ended June 30, 2025, was HK$118,833,000, a decrease of 28.3% compared to HK$165,807,000 for the same period in 2024[14] - Profit for the period was HK$9,792,000, down 70.3% from HK$32,911,000 in the previous year[14] - Basic earnings per share were HK$0.09, a decrease from HK$0.35 in the prior year[16] - Other income for the period was HK$1,486,000, down 26.3% from HK$2,016,000 in 2024[14] - The company reported a profit of HK$10,823,000 for the period, contributing to a total comprehensive income of HK$62,054,000[20] - Profit attributable to owners of the Company fell to HK$10,823,000 for the six months ended June 30, 2025, a decline of 67.8% compared to HK$33,621,000 for the same period in 2024[72] - EBITDA decreased from approximately HK$102.6 million for the six months ended June 30, 2024, to approximately HK$65.9 million for the same period in 2025, reflecting the revenue decline[144][146] Comprehensive Income - Total comprehensive profit for the period amounted to HK$61,331,000, compared to a loss of HK$660,000 in the same period last year[16] - The exchange loss attributable to owners turned around from approximately HK$33,354,000 for the six months ended 30 June 2024 to an exchange gain of approximately HK$51,231,000 for the six months ended 30 June 2025[154] Assets and Liabilities - Total assets increased to HK$2,345,585,000 as of June 30, 2025, up from HK$2,270,535,000 at December 31, 2024, representing a growth of approximately 3.3%[17] - Total liabilities rose to HK$493,871,000 as of June 30, 2025, compared to HK$480,152,000 as of December 31, 2024, indicating an increase of approximately 2.4%[55] - Current assets rose to HK$232,554,000, an increase of 28.6% from HK$180,875,000 at the end of 2024[19] - Net current liabilities decreased to HK$175,955,000, a reduction of 21.5% compared to HK$223,996,000 at December 31, 2024[19] - Total current liabilities slightly increased to HK$408,509,000, compared to HK$404,871,000 at the end of 2024[19] Cash Flow - Net cash generated from operating activities decreased to HK$51,226,000 for the six months ended June 30, 2025, down from HK$67,756,000 in the same period of 2024, representing a decline of approximately 24%[23] - The Group reported a net cash used in investing activities of HK$1,687,000 for the six months ended June 30, 2025, compared to a net cash generated of HK$5,055,000 in the prior year[23] - The net increase in cash and cash equivalents for the six months ended June 30, 2025, was HK$22,442,000, compared to an increase of HK$3,062,000 in the same period of 2024[23] - Cash and cash equivalents at the end of the period totaled HK$57,272,000, up from HK$42,770,000 at the end of the previous year[23] Segment Performance - For the six months ended June 30, 2025, revenue from external customers in the exploration, production, and distribution of natural gas segment was HK$118,833,000, while in 2024 it was HK$165,807,000, indicating a decrease of approximately 28.3%[48][50] - Reportable segment profit before income tax for the six months ended June 30, 2025, was HK$25,707,000, down from HK$54,720,000 in 2024, representing a decline of about 53.1%[48][53] - The exploration, production, and distribution of natural gas segment remains the primary revenue driver, contributing 100% of the total revenue in 2025[48] Impairment and Provisions - The provision for impairment of intangible assets was HK$9,620,000, significantly higher than HK$3,310,000 in the previous year[14] - An impairment loss of approximately HK$9,620,000 was recognized for intangible assets during the six months ended 30 June 2025, compared to HK$3,310,000 in the same period of 2024[83] - Provision for impairment of property, plant, and equipment increased from approximately HK$860,000 to approximately HK$2,537,000[145][147] Capital and Financing - The company proposed a capital reorganisation on August 14, 2025, involving a consolidation of every 40 shares into one consolidated share with a par value of HK$2.00[112] - The proposed rights issue aims to raise approximately HK$238.7 million by issuing up to 152,066,800 rights shares at a subscription price of HK$1.57 per share[115] - The outstanding principal amount of convertible notes as of June 30, 2025, was HK$232,790,000, unchanged from December 31, 2024[177][181] Economic Environment - The domestic economic situation in the PRC has been deteriorating, impacting market demand for natural gas and leading to volatility in the natural gas pipeline transportation and sales[126] - The Group will continue to monitor the economic environment and review resource allocation as necessary, particularly in the food and beverage and money lending segments, which have not generated revenue[135][139] Management and Governance - The Directors believe that the Group will have sufficient working capital to meet its financial obligations within the next twelve months, contingent on several assumptions including financial support from a shareholder[34] - Key management personnel remuneration for the six months ended June 30, 2025, was zero for directors' short-term employee benefits, compared to HK$530,000 in 2024[111] - The Company has maintained compliance with the Securities and Futures Ordinance regarding the disclosure of interests by Directors[200]