[Interim Results Announcement](index=1&type=section&id=Interim%20Results%20Announcement%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202025) [Condensed Consolidated Statement of Profit or Loss](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) Total revenue increased by **2.5%** to **RMB 131,866.8 million**, and gross profit grew by **2.8%** to **RMB 21,509.6 million**, though net profit and profit attributable to owners decreased due to one-off impairment impacts Condensed Consolidated Statement of Profit or Loss | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 131,866,817 | 128,597,588 | +2.5% | | Cost of sales | (110,357,203) | (107,664,092) | +2.5% | | Gross profit | 21,509,614 | 20,933,496 | +2.8% | | Other income | 849,442 | 811,260 | +4.7% | | Other gains and losses | (1,086,255) | (656,769) | -65.4% | | Selling and distribution expenses | (10,010,130) | (9,378,405) | +6.7% | | Administrative expenses | (3,186,557) | (3,044,405) | +4.7% | | Other expenses, net | (1,038,382) | (1,012,033) | +2.6% | | Finance income | 271,275 | 372,154 | -27.1% | | Finance costs | (1,006,278) | (1,177,992) | -14.6% | | Finance costs, net | (735,003) | (805,838) | -8.8% | | Share of profits of associates and joint ventures | 113,236 | 198,770 | -43.0% | | Profit before tax | 6,415,965 | 7,046,076 | -8.9% | | Income tax expense | (1,362,328) | (1,505,520) | -9.5% | | Profit for the period | 5,053,637 | 5,540,556 | -8.8% | | Profit attributable to equity holders of the Company | 2,077,282 | 2,604,806 | -20.3% | | Non-controlling interests | 2,976,355 | 2,935,750 | +1.4% | | Basic and diluted earnings per share (RMB) | 0.33 | 0.41 | -19.5% | - Net profit and profit attributable to equity holders of the Company decreased, primarily due to one-off items such as impairment of associates; excluding this impact, net profit slightly decreased by **1.3%** year-on-year, and profit attributable to equity holders of the Company slightly decreased by **4.7%** year-on-year[54](index=54&type=chunk) [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) Total comprehensive income for the period was **RMB 5,038.5 million**, a **9.5%** decrease from **RMB 5,565.8 million** in the prior year, mainly due to lower profit and exchange differences Condensed Consolidated Statement of Comprehensive Income | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Profit for the period | 5,053,637 | 5,540,556 | -8.8% | | Other comprehensive income (after tax) | (15,149) | 25,217 | -160.1% | | - Exchange differences on translation of operations outside Mainland China | (16,654) | 26,777 | -162.2% | | - Share of other comprehensive income of associates | 144 | (1,560) | -109.2% | | - Share of other comprehensive income of associates | 1,361 | – | N/A | | Total comprehensive income for the period | 5,038,488 | 5,565,773 | -9.5% | | Attributable to equity holders of the Company | 2,065,943 | 2,630,370 | -21.5% | | Non-controlling interests | 2,972,545 | 2,935,403 | +1.3% | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) Total equity increased by **14.2%** to **RMB 112,034.8 million** as of June 30, 2025, driven by growth in assets, particularly trade and other receivables, alongside increased liabilities and borrowings Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | **Non-current assets** | | | | | Property, plant and equipment | 25,568,020 | 20,988,872 | +21.8% | | Right-of-use assets | 6,359,911 | 4,918,458 | +29.3% | | Investment properties | 1,716,507 | 1,673,690 | +2.6% | | Intangible assets | 11,015,822 | 8,507,954 | +29.5% | | Goodwill | 24,294,206 | 22,368,811 | +8.6% | | Interests in associates | 6,254,242 | 5,536,147 | +13.0% | | Interests in joint ventures | 267,253 | 22,924 | +1065.9% | | Other non-current financial assets | 765,876 | 584,325 | +31.1% | | Deferred tax assets | 2,188,426 | 1,968,756 | +11.2% | | Other non-current assets | 5,350,269 | 5,344,804 | +0.1% | | **Total non-current assets** | **83,780,532** | **71,914,741** | **+16.5%** | | **Current assets** | | | | | Inventories | 41,935,741 | 37,052,579 | +13.2% | | Trade and other receivables | 101,908,572 | 93,929,934 | +8.5% | | Other current financial assets | 29,641,070 | 28,211,657 | +5.1% | | Amounts due from related parties | 992,519 | 1,262,265 | -21.4% | | Tax recoverable | 241,292 | 222,147 | +8.6% | | Pledged and time deposits | 10,636,874 | 8,703,691 | +22.2% | | Cash and cash equivalents | 17,673,922 | 16,424,739 | +7.6% | | Assets classified as held for sale | 38,917 | 38,567 | +0.9% | | **Total current assets** | **203,068,907** | **185,845,579** | **+9.3%** | | **Current liabilities** | | | | | Trade and other payables | 82,784,395 | 80,742,110 | +2.5% | | Contract liabilities | 3,384,926 | 4,224,594 | -19.9% | | Lease liabilities | 533,032 | 520,268 | +2.5% | | Amounts due to related parties | 887,063 | 875,778 | +1.3% | | Borrowings | 53,831,777 | 42,702,306 | +26.1% | | Bonds payable | 2,040,117 | 2,150,582 | -5.1% | | Tax payable | 815,636 | 954,898 | -14.5% | | Defined benefit liabilities | 48,753 | 51,388 | -5.1% | | Liabilities held for sale | 243 | – | N/A | | **Total current liabilities** | **144,325,942** | **132,221,924** | **+9.2%** | | **Non-current liabilities** | | | | | Borrowings | 17,583,347 | 17,866,213 | -1.6% | | Bonds payable | 7,998,336 | 4,997,673 | +60.0% | | Lease liabilities | 764,333 | 768,138 | -0.5% | | Deferred tax liabilities | 2,244,857 | 1,915,360 | +17.2% | | Defined benefit liabilities | 762,130 | 773,542 | -1.5% | | Other non-current liabilities | 1,135,660 | 1,130,192 | +0.5% | | **Total non-current liabilities** | **30,488,663** | **27,451,118** | **+11.1%** | | **Total equity** | **112,034,834** | **98,087,278** | **+14.2%** | [Notes to the Unaudited Interim Financial Information](index=6&type=section&id=Notes%20to%20the%20Unaudited%20Interim%20Financial%20Information) This section provides essential supplementary information on the basis of preparation, accounting policies, segment data, revenue, expenses, and key balance sheet items, clarifying the Group's financial performance and position [1. Company Information](index=6&type=section&id=1.%20Company%20Information) - China Resources Pharmaceutical Group Limited is incorporated in Hong Kong, listed on the HKEX, and primarily engaged in the manufacturing, distribution, and retail of pharmaceutical and healthcare products[12](index=12&type=chunk) [2. Basis of Preparation, Changes in Accounting Policies and Disclosures](index=6&type=section&id=2.%20Basis%20of%20Preparation%2C%20Changes%20in%20Accounting%20Policies%20and%20Disclosures) - The interim financial information is prepared in accordance with the HKEX Listing Rules and HKAS 34, and has been reviewed by KPMG[13](index=13&type=chunk)[15](index=15&type=chunk) - HKAS 21 (Revised) 'The Effects of Changes in Foreign Exchange Rates—Lack of Exchangeability' was applied this period, with no material impact on the interim financial information[17](index=17&type=chunk) [3. Segment Information](index=8&type=section&id=3.%20Segment%20Information) - The Group has four reportable operating segments: pharmaceutical manufacturing, pharmaceutical distribution, pharmaceutical retail, and other business operations[21](index=21&type=chunk) Segment Information | Segment | H1 2025 Revenue (RMB thousand) | H1 2024 Revenue (RMB thousand) | Y-o-Y Change | H1 2025 Performance (RMB thousand) | H1 2024 Performance (RMB thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Manufacturing segment | 24,808,280 | 23,793,197 | +4.3% | 7,442,942 | 7,488,846 | -0.6% | | Distribution segment | 108,329,727 | 105,882,386 | +2.3% | 3,897,856 | 3,955,896 | -1.5% | | Retail segment | 5,514,645 | 4,949,379 | +11.4% | 79,316 | 49,635 | +59.8% | | Others | 70,276 | 58,097 | +21.0% | 46,766 | 29,069 | +61.0% | | **Total** | **138,722,928** | **134,683,059** | **+3.0%** | **11,466,880** | **11,523,446** | **-0.5%** | [4. Revenue](index=11&type=section&id=4.%20Revenue) Revenue by Source | Revenue Source | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Sales of pharmaceutical products | 131,793,391 | 128,536,011 | +2.5% | | Rental income from operating leases of investment properties | 73,426 | 61,577 | +19.2% | | **Total Revenue** | **131,866,817** | **128,597,588** | **+2.5%** | Revenue by Geographical Market | Geographical Market | H1 2025 Revenue (RMB thousand) | H1 2024 Revenue (RMB thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Mainland China | 131,344,541 | 127,948,007 | +2.7% | | Hong Kong and others | 522,276 | 649,581 | -19.6% | [5. Other Income](index=11&type=section&id=5.%20Other%20Income) Other Income Sources | Other Income Source | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Service fee income | 305,333 | 375,948 | -18.8% | | Government grants | 324,586 | 227,577 | +42.6% | | Others | 219,523 | 207,735 | +5.7% | | **Total** | **849,442** | **811,260** | **+4.7%** | [6. Other Gains and Losses](index=12&type=section&id=6.%20Other%20Gains%20and%20Losses) Other Gains and Losses | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Impairment loss on property, plant and equipment | (206) | (16) | | Impairment loss on intangible assets | (32,803) | (815) | | Impairment loss on interests in associates | (392,463) | – | | Impairment loss on trade and other receivables, net | (608,800) | (590,198) | | Gain/(loss) on disposal of property, plant and equipment and right-of-use assets, net | 4,920 | (1,694) | | Loss on derecognition of trade and bills receivables measured at fair value through other comprehensive income | (88,870) | (113,471) | | Fair value changes of financial assets at fair value through profit or loss | 61,247 | 23,082 | | Others | (29,280) | 26,343 | | **Total** | **(1,086,255)** | **(656,769)** | - Impairment loss on interests in associates was the primary reason for the significant increase in other gains and losses in H1 2025, reaching **RMB 392,463 thousand**, compared to zero in the prior period[29](index=29&type=chunk) [7. Finance Costs, Net](index=12&type=section&id=7.%20Finance%20Costs%2C%20Net) Finance Costs, Net | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Interest on borrowings | 886,787 | 1,021,326 | -13.1% | | Interest on bonds payable | 85,938 | 117,763 | -27.0% | | Interest on lease liabilities | 32,604 | 31,645 | +3.0% | | Interest on defined benefit liabilities | 2,161 | 2,825 | -23.5% | | Less: Interest capitalised on property, plant and equipment | (1,212) | (2,539) | -52.3% | | **Total finance costs** | **1,006,278** | **1,177,992** | **-14.6%** | | Finance income — interest | (271,275) | (372,154) | -27.1% | | **Net finance costs** | **735,003** | **805,838** | **-8.8%** | - The capitalisation rate for H1 2025 was **3.15% to 3.50%**, lower than **4.60%** in H1 2024[30](index=30&type=chunk) [8. Profit Before Tax](index=13&type=section&id=8.%20Profit%20Before%20Tax) Profit Before Tax Components | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Cost of inventories | 109,630,879 | 107,026,942 | +2.4% | | Research and development expenditure | 970,848 | 939,014 | +3.4% | | Depreciation of property, plant and equipment | 1,171,848 | 993,166 | +18.0% | | Depreciation of right-of-use assets | 396,758 | 338,835 | +17.1% | | Amortisation of intangible assets | 318,947 | 296,019 | +7.7% | | Provision for slow-moving and obsolete inventories | 15,736 | 30,575 | -48.5% | | Lease expenses not included in lease liabilities | 61,494 | 66,870 | -8.0% | | Exchange losses, net | 5,792 | 33,553 | -82.7% | [9. Income Tax](index=13&type=section&id=9.%20Income%20Tax) Income Tax | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | PRC corporate income tax | 1,611,015 | 1,616,963 | | Reversal of temporary differences and provisions | (254,635) | (105,495) | | **Total** | **1,362,328** | **1,505,520** | - The Group is assessing the impact of the global anti-dilution tax base model rules ('Pillar Two Model Rules'), concluding it is unlikely to have a material impact on the consolidated financial statements[34](index=34&type=chunk) [10. Earnings Per Share](index=14&type=section&id=10.%20Earnings%20Per%20Share) Profit Attributable to Ordinary Equity Holders | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit attributable to ordinary equity holders of the Company for basic EPS calculation | 2,073,328 | 2,604,806 | | Less: Dividends declared by subsidiaries to restricted share owners during the period | (3,954) | – | Weighted Average Number of Ordinary Shares | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Weighted average number of ordinary shares in issue for basic EPS calculation | 6,282,510,461 | 6,282,510,461 | - Basic and diluted earnings per share are consistent, as the restricted share incentive scheme is anti-dilutive[36](index=36&type=chunk) [11. Dividends](index=14&type=section&id=11.%20Dividends) - The Board resolved to declare an interim dividend of **RMB 0.072** per ordinary share for the six months ended June 30, 2025 (H1 2024: **RMB 0.083**), totaling **RMB 452 million**[37](index=37&type=chunk) Dividends Recognised as Distribution | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Dividends recognised as distribution to ordinary equity holders of the Company during the period: 2024 final (RMB 0.052 per share) | 326,691 | – | | 2023 final (RMB 0.154 per share) | – | 967,507 | [12. Property, Plant and Equipment](index=15&type=section&id=12.%20Property%2C%20Plant%20and%20Equipment) - In H1 2025, the Group purchased property, plant and equipment of approximately **RMB 1,225.1 million**, a **39.7%** increase from **RMB 877.2 million** in the prior period[41](index=41&type=chunk) - In H1 2025, the Group disposed of assets with a net book value of approximately **RMB 19.9 million**, generating a net gain on disposal of approximately **RMB 0.6 million**, compared to a net loss on disposal of approximately **RMB 1.7 million** in the prior period[41](index=41&type=chunk) [13. Other Non-current Financial Assets](index=15&type=section&id=13.%20Other%20Non-current%20Financial%20Assets) Other Non-current Financial Assets | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Equity investments at fair value through other comprehensive income | 69,435 | 69,435 | | Equity investments at fair value through profit or loss | 696,441 | 514,890 | | **Total** | **765,876** | **584,325** | - Equity investments at fair value through profit or loss are primarily engaged in pharmaceutical R&D, distribution, and related operations, and do not meet the criteria of solely payments of principal and interest[42](index=42&type=chunk) [14. Trade and Other Receivables](index=16&type=section&id=14.%20Trade%20and%20Other%20Receivables) Trade and Other Receivables | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Bills receivable | 683,739 | 1,057,307 | | Contract assets | 54,297 | 64,596 | | Trade receivables | 92,376,246 | 83,694,249 | | Impairment allowance | (3,514,385) | (2,910,797) | | Prepayments | 3,737,744 | 4,069,522 | | Other receivables | 8,970,081 | 8,341,151 | | Impairment allowance | (399,150) | (386,094) | | **Total** | **101,908,572** | **93,929,934** | - Trade receivables typically have credit terms of **30 to 365 days**, while bills receivable generally mature within **30 to 180 days**[43](index=43&type=chunk) Aging of Trade Receivables (net of impairment allowance) | Aging of Trade Receivables (net of impairment allowance) | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | 0 to 30 days | 19,001,914 | 19,403,995 | | 31 to 60 days | 11,186,870 | 11,950,773 | | 61 to 90 days | 10,079,834 | 7,656,996 | | 91 to 180 days | 19,401,912 | 17,219,042 | | 181 to 365 days | 20,728,425 | 18,158,794 | | Over 1 year | 8,462,906 | 6,393,852 | | **Total** | **88,861,861** | **80,783,452** | Aging of Bills Receivable (based on issue date) | Aging of Bills Receivable (based on issue date) | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | 0 to 30 days | 279,599 | 615,874 | | 31 to 60 days | 90,780 | 173,400 | | 61 to 90 days | 85,601 | 66,667 | | 91 to 180 days | 227,759 | 201,366 | | **Total** | **683,739** | **1,057,307** | Other Current Financial Assets | Other Current Financial Assets | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade and bills receivables at fair value | 20,510,229 | 18,988,711 | | Financial products at fair value | 9,070,849 | 9,222,946 | | Equity investments at fair value through profit or loss | 59,992 | – | | **Total** | **29,641,070** | **28,211,657** | [15. Trade and Other Payables](index=18&type=section&id=15.%20Trade%20and%20Other%20Payables) Trade and Other Payables | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade payables | 42,738,165 | 40,062,416 | | Bills payable | 17,109,593 | 18,535,915 | | Accrued salaries | 3,096,136 | 3,740,147 | | Other taxes payable | 960,258 | 942,129 | | Other payables | 16,937,457 | 15,703,647 | | Refund liabilities | 1,163,958 | 1,224,330 | | Amounts payable for acquisition of subsidiaries | 778,828 | 533,526 | | **Total** | **82,784,395** | **80,742,110** | - Credit terms for goods purchased range from **30 to 90 days**, and bills payable mature within **30 to 180 days**[45](index=45&type=chunk) Aging of Trade Payables (based on invoice date) | Aging of Trade Payables (based on invoice date) | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | 0 to 30 days | 21,056,480 | 19,815,023 | | 31 to 60 days | 7,699,286 | 7,415,293 | | 61 to 90 days | 3,752,799 | 3,380,817 | | Over 90 days | 10,229,600 | 9,451,283 | | **Total** | **42,738,165** | **40,062,416** | Aging of Bills Payable (based on issue date) | Aging of Bills Payable (based on issue date) | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | 0 to 30 days | 4,257,304 | 5,652,836 | | 31 to 60 days | 2,794,727 | 3,473,684 | | 61 to 90 days | 2,835,625 | 2,918,458 | | Over 90 days | 7,221,937 | 6,490,937 | | **Total** | **17,109,593** | **18,535,915** | [Management Discussion and Analysis](index=19&type=section&id=Management%20Discussion%20and%20Analysis) This section analyzes China's pharmaceutical industry trends, reviews the Group's overall performance and strategic initiatives across manufacturing, distribution, and retail segments, and highlights progress in digital transformation and social responsibility [Industry Overview](index=19&type=section&id=Industry%20Overview) - China's GDP grew by **5.3%** year-on-year in H1 2025, with overall stable economic operations[47](index=47&type=chunk) - China's pharmaceutical industry is undergoing structural adjustments, with short-term overall growth pressure; in H1 2025, revenue for large-scale pharmaceutical manufacturing decreased by **1.2%** year-on-year, and total profit decreased by **2.8%**[48](index=48&type=chunk) - Long-term drivers for the pharmaceutical industry include an aging population, 'Healthy China' initiatives, and enhanced innovation capabilities[48](index=48&type=chunk) - Traditional Chinese Medicine policies are strengthening, innovative drug development receives full-chain support, and AI technology will empower all aspects of the pharmaceutical industry[49](index=49&type=chunk) - Coordinated development and governance of healthcare, medical services, and pharmaceuticals are deepening, with expanded centralized procurement, full implementation of DRG/DIP payment reforms, and ongoing anti-corruption efforts benefiting leading and well-regulated enterprises[50](index=50&type=chunk) [Group Performance and Highlights](index=20&type=section&id=Group%20Performance%20and%20Highlights) - The Group actively implements national strategies, fosters new quality productive forces, strengthens strategic emerging industry layouts, promotes R&D innovation, achieves steady revenue growth, and enhances operational resilience[51](index=51&type=chunk) - The Group is a leading integrated pharmaceutical company in China, ranking **third** overall in the industry, with its pharmaceutical manufacturing business ranking **second** among the top 100 pharmaceutical industrial enterprises, and its pharmaceutical distribution business ranking **third** in scale[51](index=51&type=chunk) - CR Sanjiu rose to **29th** in Ipsos' '2025 China Brand Influence Index (BII)', while 'Jianzhong', 'Dong-E-E-Jiao', and 'Yuting' were listed among 'China's 500 Most Valuable Brands'[52](index=52&type=chunk) Group Performance and Highlights | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Total Revenue | 131,866.8 | 128,597.6 | +2.5% | | Gross Profit | 21,509.6 | 20,933.5 | +2.8% | | Overall Gross Margin | 16.3% | 16.3% | Flat | | Net Profit | 5,053.6 | 5,540.6 | -8.8% | | Profit Attributable to Owners of the Company | 2,077.3 | 2,604.8 | -20.3% | | Basic Earnings Per Share (RMB) | 0.33 | 0.41 | -19.5% | | Interim Dividend (RMB per share) | 0.072 | 0.083 | -13.2% | - Excluding the impact of one-off items such as impairment of associates, the Group's net profit slightly decreased by **1.3%** year-on-year, and profit attributable to owners of the Company slightly decreased by **4.7%** year-on-year[54](index=54&type=chunk) [Pharmaceutical Business](index=22&type=section&id=Pharmaceutical%20Business) The pharmaceutical business saw **4.3%** segment revenue growth, with increases across all sub-segments, driven by strategic initiatives including industrial integration, R&D investment, full-chain development, and international expansion to enhance competitiveness [(1) Financial Performance](index=22&type=section&id=(1)%20Financial%20Performance) Pharmaceutical Business Segment Revenue | Pharmaceutical Business Segment Revenue | H1 2025 (RMB million) | H1 2024 (RMB million) | Y-o-Y Growth | | :--- | :--- | :--- | :--- | | Traditional Chinese Medicine (TCM) | 13,062.0 | 11,968.7 | +9.1% | | - OTC drugs | 8,656.4 | 9,472.0 | -8.6% | | - Prescription drugs | 4,405.6 | 2,496.7 | +76.5% | | Chemical Drugs | 8,928.3 | 9,497.4 | -6.0% | | - OTC drugs | 2,490.4 | 2,620.7 | -5.0% | | - Prescription drugs | 5,775.6 | 6,192.3 | -6.7% | | - APIs | 662.3 | 684.4 | -3.2% | | Biologics | 1,269.6 | 1,134.9 | +11.9% | | Nutritional Health Products and Others | 1,548.4 | 1,192.2 | +29.9% | | **Total** | **24,808.3** | **23,793.2** | **+4.3%** | - The gross margin for the pharmaceutical business was **59.3%**, a slight decrease of **0.8 percentage points** from the prior year[55](index=55&type=chunk) - Revenue from TCM prescription drugs increased by **76.5%** year-on-year, mainly due to the acquisition of Tasly Pharmaceutical; nutritional health products and other businesses saw significant revenue growth of **29.9%**, primarily due to the acquisition of Sichuan Nangere Biotechnology Co., Ltd[57](index=57&type=chunk) - As of the reporting period, the Group operated **83** production bases and **561** production lines, manufacturing **944** products, with **555** included in the National Medical Insurance Catalog and **235** in the Essential Drug List[56](index=56&type=chunk) [(2) Key Initiatives](index=24&type=section&id=(2)%20Key%20Initiatives) [a. Promoting Industrial Integration and Strengthening External Development](index=24&type=section&id=a.%20Promoting%20Industrial%20Integration%20and%20Strengthening%20External%20Development) - Completed acquisitions of Nangere and Tasly Pharmaceutical, accelerating business integration, consolidating a leading position in the TCM industry, and enhancing TCM innovation capabilities[58](index=58&type=chunk) - Following the consolidation of Green Cross Hong Kong, implemented a business center penetration management model to enhance the competitiveness of the blood products segment[58](index=58&type=chunk) - Established China Resources Pharmaceutical (Chengdu) Innovation Investment Fund Partnership (Limited Partnership) with a fund size of **RMB 1 billion**, focusing on investments in innovative chemical drugs, biologics, and high-end medical devices[59](index=59&type=chunk) - CR Double-Crane reached an exclusive cooperation agreement with Henan Zhongshuai Pharmaceutical for Dextromethylphenidate Hydrochloride Extended-Release Capsules (Guanzhu) in Mainland China[60](index=60&type=chunk) - CR Sanjiu and Nanjing Aierpu Regenerative Medical Technology reached a joint development cooperation for the HiCM–188 (iPSC cardiomyocyte) project, expanding into the cell therapy sector[60](index=60&type=chunk) [b. Fostering New Quality Productive Forces and Enhancing Innovation Momentum](index=26&type=section&id=b.%20Fostering%20New%20Quality%20Productive%20Forces%20and%20Enhancing%20Innovation%20Momentum) - Continued to increase R&D investment, with total R&D expenditure of **RMB 1.25 billion** during the reporting period; as of the end of the period, there were **476** R&D projects, including **178** new drug projects[61](index=61&type=chunk) - Operates **2** national key laboratories, **4** national engineering technology research centers, and other R&D platforms, with a team of **3,868** R&D professionals, of whom **42.0%** hold master's or doctoral degrees[61](index=61&type=chunk) - In TCM, **1** classic formula (Yiqi Qingfei Granules) was successfully approved; in biologics, 10% Human Immunoglobulin for Intravenous Injection was successfully approved for production[62](index=62&type=chunk) - In chemical drugs, obtained **19** chemical drug registration approvals, including Levetiracetam Oral Solution, and **4** products passed generic drug consistency evaluations[62](index=62&type=chunk) - Received **1** national/provincial-level award and **7** national/provincial-level project approvals[63](index=63&type=chunk) - Actively expanded external innovation and cooperation, establishing strategic partnerships with Hong Kong Nano and Advanced Materials Institute, Hong Kong University of Science and Technology, Sichuan University, and others to build an innovation ecosystem[64](index=64&type=chunk) [c. Strengthening Full Industrial Chain Construction and Enhancing Industrial Competitiveness](index=28&type=section&id=c.%20Strengthening%20Full%20Industrial%20Chain%20Construction%20and%20Enhancing%20Industrial%20Competitiveness) - Upstream, promoted self-sufficiency of key raw materials, adding over **1,500 mu** of medicinal herb cultivation bases for Lysimachia, Wild Chrysanthemum, Plantago, etc[65](index=65&type=chunk) - In the blood products sector, cumulative plasma collection reached **320 tons** in H1, a **7.2%** year-on-year increase, exceeding the industry average growth rate[65](index=65&type=chunk) - Midstream, continuously promoted cost reduction, efficiency improvement, and quality enhancement; CR Jiangzhong fully implemented **22** lean projects, ensuring product supply through production process innovation and organizational optimization[66](index=66&type=chunk) - Downstream, vigorously promoted marketing model transformation and actively participated in centralized procurement, with **141** products selected in national centralized drug procurement[67](index=67&type=chunk) - Strengthened online drug channel expansion, establishing strategic partnerships with JD Pharmacy, Ali Health Pharmacy, Ping An Good Doctor, and others[67](index=67&type=chunk) [d. Promoting International Development and Expanding New Growth Areas](index=30&type=section&id=d.%20Promoting%20International%20Development%20and%20Expanding%20New%20Growth%20Areas) - Its Xuesaitong preparations have gained market access in **15** countries globally, and Dihydroartemisinin-Piperaquine tablets received their first Global Fund procurement order[68](index=68&type=chunk) - Established Dong-E-E-Jiao International Co., Ltd. in Hong Kong to build an overseas business hub, and signed a strategic cooperation agreement with Korea Cheong Kwan Jang[68](index=68&type=chunk) - Medical devices have advanced registration applications in over **50** countries, and plasma collection products hold over **20%** market share in Europe[69](index=69&type=chunk) [Pharmaceutical Distribution and Retail Business](index=31&type=section&id=Pharmaceutical%20Distribution%20and%20Retail%20Business) Pharmaceutical distribution revenue grew by **2.3%** and retail by **11.4%**, largely due to high-value DTP business, with the Group enhancing market coverage and services through integrated coordination, deep marketing, and business model innovation [(1) Financial Performance](index=31&type=section&id=(1)%20Financial%20Performance) Pharmaceutical Distribution and Retail Business Performance | Business Segment | H1 2025 Revenue (RMB million) | H1 2024 Revenue (RMB million) | Y-o-Y Growth | Gross Margin | | :--- | :--- | :--- | :--- | :--- | | Pharmaceutical Distribution | 108,329.7 | 105,882.4 | +2.3% | 5.9% | | Pharmaceutical Retail | 5,514.6 | 4,949.4 | +11.4% | 6.1% | - Pharmaceutical retail business growth was primarily driven by rapid revenue growth in high-value direct-to-patient (DTP) business, with DTP revenue approximately **RMB 3.76 billion**, a year-on-year increase of approximately **14.1%**[70](index=70&type=chunk) - Retail business gross margin decreased by **0.4 percentage points** to **6.1%**, mainly due to the increased proportion of lower-margin DTP business revenue[70](index=70&type=chunk) [(2) Key Initiatives](index=32&type=section&id=(2)%20Key%20Initiatives) - As of the reporting period, the pharmaceutical distribution network covered **28** provinces nationwide with approximately **220,000** customers; there were **704** self-operated retail pharmacies, including **279** DTP pharmacies (**187** 'dual-channel' pharmacies)[71](index=71&type=chunk) - Promoted integrated business coordination, deepened strategic key account management system construction, strengthened value chain synergy, and optimized product resource acquisition mechanisms[72](index=72&type=chunk) - Accelerated the shift from traditional commercial distribution to a dual-driven model of distribution plus deep marketing, strategically focusing on specialty drugs, chronic diseases, and retail[73](index=73&type=chunk) - Deep marketing business covers **31** provinces, **18,000** medical terminals, and **68,000** retail stores[73](index=73&type=chunk) - Medical device distribution revenue increased by **8%** year-on-year, strengthening product introduction with **7** products introduced through centralized negotiation and **11** new terminal innovation service projects in H1[73](index=73&type=chunk) - CR Regional Testing Center officially commenced operations, building a comprehensive testing service system covering 'in-hospital—out-of-hospital—home' scenarios[73](index=73&type=chunk) - Promoted business model innovation, collaborating with over **10** key hospitals on COE (Center of Excellence) projects, assisting commercial insurance in building digital platforms, and launching a new 'medical + pharmaceutical + insurance' three-dimensional linkage paradigm[74](index=74&type=chunk) - Continuously strengthened professional pharmacy construction, optimized operating categories, improved operational quality, fully launched the 'Run Care' doctor-patient management platform, managing **820,000** patients[74](index=74&type=chunk) [Accelerating Digital and Intelligent Transformation to Empower Business Quality and Efficiency](index=35&type=section&id=Accelerating%20Digital%20and%20Intelligent%20Transformation%20to%20Empower%20Business%20Quality%20and%20Efficiency) - Deepened intelligent manufacturing, completing the development and implementation of smart breeding platforms for the donkey industry, TCM material planting and traceability management, and plasma station SCRM systems[75](index=75&type=chunk) - **4** production bases received the '2025 Provincial/Municipal Advanced Smart Factory' honor[75](index=75&type=chunk) - Empowered pharmaceutical distribution by fully promoting deep integration of digitalization with business, centered around platforms such as 'Runyao Mall', 'Runyaotong', 'Run Care', and 'Runyao Premium'[76](index=76&type=chunk) - Implemented 'Runyaotong' digital field promotion assistant in Hubei, Henan, Hunan, and other regions, and launched drug traceability code platforms in Shanghai, Beijing, Inner Mongolia, and other regions[76](index=76&type=chunk) [Adhering to Green Development and Practicing Social Responsibility](index=36&type=section&id=Adhering%20to%20Green%20Development%20and%20Practicing%20Social%20Responsibility) - Participated in drafting the 'Construction Standards for Low-Carbon Logistics Parks in the Pharmaceutical Industry' and led the drafting of three group standards, including the 'Guidelines for Building Waste-Free Factories in Pharmaceutical Enterprises'[77](index=77&type=chunk) - Actively deployed distributed photovoltaic power generation projects, with **2** production bases completing grid connection for **4.1 MW** rooftop distributed photovoltaic power generation projects, providing over **4.34 million kWh** of clean electricity and reducing carbon emissions by approximately **2,500 tons** annually[77](index=77&type=chunk) - MSCI-ESG rating maintained 'A' for **three** consecutive years, with CR Sanjiu upgraded from BB to A, and Dong-E-E-Jiao from B to BB[77](index=77&type=chunk) - Upgraded transportation vehicles in pharmaceutical distribution, gradually phasing out traditional fuel vehicles and introducing new energy vehicles[77](index=77&type=chunk) [Outlook and Future Strategies](index=37&type=section&id=Outlook%20and%20Future%20Strategies) The Group aims to be a trusted, innovation-driven leader, focusing on five strategic directions: innovation, optimized layout, external expansion, operational excellence, and digital/AI empowerment, to enhance competitiveness and consolidate its industry-leading position - Adhere to innovation-driven development, focusing on major disease areas such as oncology, autoimmune diseases, and cardiovascular/cerebrovascular diseases, strengthening the construction of differentiated innovative R&D platforms[79](index=79&type=chunk) - Adhere to optimized layout, consolidating and enhancing business advantages in TCM and chemical drugs, vigorously developing biologics, specialty drugs, high-end medical devices, synthetic biology, and other fields[79](index=79&type=chunk) - Adhere to external expansion, continuing to increase investment and M&A efforts, leveraging the pioneering role of industrial funds[79](index=79&type=chunk) - Adhere to operational excellence, deeply implementing differentiated classified management and improving management quality[79](index=79&type=chunk) - Adhere to digital and AI empowerment, exploring the application of new technologies like artificial intelligence in R&D, production, and sales to help improve enterprise operational efficiency and quality[80](index=80&type=chunk) [Other Information](index=38&type=section&id=Other%20Information) This section covers the Group's liquidity, financial resources, asset pledges, contingent liabilities, human resources, post-reporting events, and interim dividend declaration, alongside corporate governance, securities trading compliance, and audit committee review of interim results [Liquidity and Financial Resources](index=38&type=section&id=Liquidity%20and%20Financial%20Resources) - As of June 30, 2025, cash and cash equivalents amounted to **RMB 17,673.9 million**, primarily denominated in RMB and HKD[81](index=81&type=chunk) - Approximately **75.4%** of total bank borrowings are due within one year (December 31, 2024: **70.5%**)[82](index=82&type=chunk) Liquidity and Financial Resources | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current Ratio | 1.4：1 | 1.4：1 | | Net Debt-to-Equity Ratio | 57.2% | 52.3% | Cash Flow | Cash Flow | H1 2025 (RMB million) | H1 2024 (RMB million) | | :--- | :--- | :--- | | Net cash from operating activities | 1,531.0 | (1,019.9) | | Net cash used in investing activities | (5,017.3) | (3,460.5) | | Net cash from financing activities | 4,731.2 | 2,115.9 | [Pledge of Assets](index=39&type=section&id=Pledge%20of%20Assets) - As of June 30, 2025, the Group's total borrowings were **RMB 71,415.1 million**, of which **RMB 2,987.6 million** were pledged, representing **4.2%** of total bank borrowings[85](index=85&type=chunk) - Certain trade and bills receivables with a total net book value of **RMB 1,553.1 million** were pledged as security[85](index=85&type=chunk) [Contingent Liabilities](index=39&type=section&id=Contingent%20Liabilities) - As of June 30, 2025, the Group had no significant contingent liabilities[86](index=86&type=chunk) [Human Resources](index=39&type=section&id=Human%20Resources) - As of June 30, 2025, the Group employed approximately **86,000** staff in Mainland China and Hong Kong[87](index=87&type=chunk) - Remuneration is determined based on performance, experience, and market rates, with performance-based incentives granted on a discretionary basis, and other benefits including medical insurance and training[87](index=87&type=chunk) [Events After the Reporting Period](index=39&type=section&id=Events%20After%20the%20Reporting%20Period) - The Group had no significant events after the reporting period and up to the date of this announcement[88](index=88&type=chunk) [Declaration of Dividends](index=40&type=section&id=Declaration%20of%20Dividends) - The Board resolved to declare an interim dividend of **RMB 0.072** per share for the six months ended June 30, 2025 (H1 2024: **RMB 0.083**)[89](index=89&type=chunk) - The interim dividend will be paid on October 31, 2025, by default in HKD cash at an exchange rate of **RMB 1.0 to HKD 1.0957**, amounting to **HKD 0.0789** per share[89](index=89&type=chunk) - Shareholders may elect to receive dividends in RMB by submitting the dividend currency election form by **4:30 p.m. on October 13, 2025**[89](index=89&type=chunk)[90](index=90&type=chunk) - To determine shareholders entitled to the interim dividend, the Company will suspend share transfer registration from **September 15 to September 16, 2025**[91](index=91&type=chunk) [Corporate Governance](index=41&type=section&id=Corporate%20Governance) - The Company has adopted the Corporate Governance Code set out in Appendix C1 of the HKEX Listing Rules[92](index=92&type=chunk) - During the reporting period, the Company complied with the Corporate Governance Code, except for the temporary dual role of Chairman and CEO, which has been rectified with Mr. Cheng Jie's appointment as President[92](index=92&type=chunk) - The Chairman of the Board was unable to attend the Annual General Meeting held on May 23, 2025, due to other work commitments, which does not comply with Code Provision F.2.2[94](index=94&type=chunk) [Standard Code for Securities Transactions](index=42&type=section&id=Standard%20Code%20for%20Securities%20Transactions) - The Company has adopted the Standard Code set out in Appendix C3 of the Listing Rules, and Directors have confirmed compliance throughout the reporting period[96](index=96&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=42&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Listed%20Securities) - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any listed securities during the reporting period or up to the date of this announcement, nor did they hold any treasury shares[97](index=97&type=chunk) [Review of Interim Results by KPMG](index=42&type=section&id=Review%20of%20Interim%20Results%20by%20KPMG) - The interim financial information is unaudited but has been reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410, resulting in an unmodified review report[98](index=98&type=chunk) [Audit Committee](index=43&type=section&id=Audit%20Committee) - The Company's Audit Committee has reviewed the Group's unaudited condensed consolidated interim results for the six months ended June 30, 2025[99](index=99&type=chunk) [Publication of Interim Results and 2025 Interim Report on HKEX and Company Website](index=43&type=section&id=Publication%20of%20Interim%20Results%20and%202025%20Interim%20Report%20on%20HKEX%20and%20Company%20Website) - The interim results announcement has been published on the HKEX website and the Company's website, and the 2025 interim report will also be published and sent to shareholders who wish to receive a printed copy[100](index=100&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容 而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 Yadea Group Holdings Ltd. 雅迪集團控股有限公司 （股份代號：1585） （於開曼群島註冊成立的有限公司） 截至2025年6月30日止六個月 中期業績公告 雅迪集團控股有限公司（「本公司」或「雅迪」）董事（「董事」）會（「董事會」）謹此提呈本公司 及其附屬公司（統稱「本集團」）截至2025年6月30日止六個月（「報告期間」）的未經審核綜 合中期業績，連同2024年同期的比較數字如下： 財務摘要 於報告期間： – 1 – • 與2024年同期相比，收入增加約33.1%至人民幣19,185.9百萬元。 • 與2024年同期相比，毛利增加約45.1%至人民幣3,763.2百萬元。 • 與2024年同期相比，本公司股東應佔利潤增加約59.5%至人民幣1,649.0百萬元。 • 與2024年同期相比，每股基本盈利增加約57.4%至每股人民幣54.3分。 簡明綜合損益表 截至2025年6月3 ...

Company Information and Report Overview [Company Profile](index=5&type=section&id=Company%20Profile) Nissin Foods Company Limited, a Hong Kong-listed public company, is ultimately controlled by Japan's Nissin Foods Holdings Co., Ltd., focusing on producing and selling various food products across Hong Kong, mainland China, and other regions - **Nissin Foods Company Limited** is a Hong Kong-listed company, with its ultimate holding company being **Nissin Foods Holdings Japan**[7](index=7&type=chunk) - Its main business involves the **production and sale of noodles, ready meals, frozen foods, beverages, and snacks**, alongside R&D and promotional services[7](index=7&type=chunk) - Primary operating locations include **Hong Kong, mainland China, and other regions**[7](index=7&type=chunk) [Report Statement and Basis of Preparation](index=1&type=section&id=Report%20Statement%20and%20Basis%20of%20Preparation) This interim report covers the unaudited condensed consolidated financial statements for the six months ended June 30, 2025, prepared in accordance with HKAS 34 and Listing Rules, with retrospective restatement for the ABC Pastry acquisition - The report presents **unaudited condensed consolidated interim results** for the six months ended June 30, 2025, with comparative data for the same period in 2024[3](index=3&type=chunk) - The condensed consolidated financial statements are prepared in accordance with **Hong Kong Accounting Standard 34** and applicable disclosure requirements of the **Listing Rules** of The Stock Exchange of Hong Kong Limited[9](index=9&type=chunk) - Due to the finalization of purchase price allocation for the ABC Pastry acquisition, certain items in the **consolidated statement of financial position as at December 31, 2024, were retrospectively restated**, primarily adjusting property, plant and equipment, goodwill, intangible assets, and deferred tax liabilities[11](index=11&type=chunk)[12](index=12&type=chunk) [Key Accounting Policies](index=6&type=section&id=Key%20Accounting%20Policies) The condensed consolidated financial statements are primarily prepared on a historical cost basis, with consistent accounting policies applied as in the 2024 annual financial statements, and HFRS amendments having no significant impact - The condensed consolidated financial statements are primarily prepared on a **historical cost basis**, except for certain financial instruments measured at fair value[13](index=13&type=chunk) - Accounting policies and calculation methods used in this interim period are **consistent with the 2024 annual consolidated financial statements**, except for changes due to the application of amendments to Hong Kong Financial Reporting Standards[13](index=13&type=chunk) - Amendments to Hong Kong Financial Reporting Standards (e.g., HKAS 21 amendments) have **no significant impact** on the Group's financial position and performance for the current interim and prior periods[14](index=14&type=chunk) Condensed Consolidated Financial Statements [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group's revenue increased by **10.5% to HK$2,014.2 million**, but profit for the period decreased by **7.4% to HK$159.6 million**, mainly due to higher income tax expense, resulting in basic earnings per share falling to **15.05 HK cents** Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Six Months Ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 2,014,201 | 1,822,499 | +10.5% | | Cost of sales and services | (1,337,247) | (1,185,046) | +12.8% | | Gross profit | 676,954 | 637,453 | +6.2% | | Other income | 12,999 | 20,748 | -37.3% | | Selling and distribution costs | (276,065) | (260,831) | +5.8% | | Administrative expenses | (164,512) | (148,381) | +10.9% | | Other expenses | (16,275) | (17,839) | -8.7% | | Other gains and losses | (4,771) | (7,422) | -35.7% | | Finance costs | (95) | (223) | -57.4% | | Profit before tax | 228,235 | 223,505 | +2.1% | | Income tax expense | (68,618) | (51,665) | +32.8% | | Profit for the period | 159,617 | 171,840 | -7.1% | | Profit attributable to owners of the Company | 157,027 | 169,489 | -7.4% | | Basic earnings per share (HK cents) | 15.05 | 16.24 | -7.3% | - Total comprehensive income for the period significantly increased by **30.1% to HK$204,233 thousand**, primarily due to a shift from loss to gain in exchange differences arising from the translation of overseas operations[4](index=4&type=chunk) [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets slightly decreased, but total equity maintained robust growth, with net current assets remaining stable and the current ratio improving from 2.6 to 2.8, indicating good liquidity Condensed Consolidated Statement of Financial Position (As at June 30) | Indicator | 2025 June 30 (HK$ thousand) | 2024 Dec 31 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current assets | 2,356,443 | 2,362,853 | -0.3% | | Current assets | 2,315,003 | 2,419,909 | -4.3% | | Current liabilities | 942,691 | 839,304 | +12.3% | | Net current assets | 1,475,699 | 1,477,218 | -0.1% | | Total equity | 3,699,640 | 3,669,974 | +0.8% | | Non-current liabilities | 138,912 | 163,687 | -15.1% | - The **current ratio increased from 2.6** as at December 31, 2024, **to 2.8** as at June 30, 2025, indicating improved liquidity[54](index=54&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides supplementary financial details including revenue breakdown, segment information, other income and expenses, income tax, dividends, earnings per share, trade receivables and payables, share capital, and share award schemes Revenue from Contracts with Customers Breakdown (Six Months Ended June 30) | Category | 2025 (HK$ thousand) | 2024 (HK$ thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Sale of goods | 2,010,696 | 1,818,847 | +10.5% | | Others (research and promotional services) | 3,505 | 3,652 | -4.0% | | **Total** | **2,014,201** | **1,822,499** | **+10.5%** | - The Group redefined its operating segments on January 1, 2025, by adding a **"Headquarters" segment** to provide a more relevant segment presentation[16](index=16&type=chunk)[19](index=19&type=chunk) Income Tax Expense (Six Months Ended June 30) | Tax Category | 2025 (HK$ thousand) | 2024 (HK$ thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Hong Kong Profits Tax | 12,084 | 7,480 | +61.6% | | Mainland China Enterprise Income Tax | 45,272 | 40,247 | +12.5% | | Mainland China Withholding Tax | 11,225 | 18,366 | -38.8% | | Others | 2,977 | – | N/A | | Deferred tax | (2,940) | (14,428) | -79.6% | | **Total Income Tax Expense** | **68,618** | **51,665** | **+32.8%** | - **Basic earnings per share attributable to owners of the Company decreased** from **16.24 HK cents in 2024 to 15.05 HK cents in 2025**[25](index=25&type=chunk) - The Group provides an average credit period of **90 days to trade customers**, with a slight decrease in total trade receivables[27](index=27&type=chunk) - The average credit period for purchases of goods is **60 days**, and total trade payables have decreased[28](index=28&type=chunk) - Under the Share Award Scheme, **220,320 award shares were granted and vested in 2025**, with a total fair value of **HK$1,382,000**[29](index=29&type=chunk)[30](index=30&type=chunk) [Other Income and Gains/Losses](index=9&type=section&id=Other%20Income%20and%20Gains%2FLosses) Other Income (Six Months Ended June 30) | Category | 2025 (HK$ thousand) | 2024 (HK$ thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Interest income from bank deposits | 5,368 | 8,750 | -38.7% | | Interest income from financial assets at FVTPL | – | 5,938 | -100% | | Miscellaneous income | 7,631 | 6,060 | +25.9% | | **Total** | **12,999** | **20,748** | **-37.3%** | Other Gains and Losses (Six Months Ended June 30) | Category | 2025 (HK$ thousand) | 2024 (HK$ thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net exchange losses | (2,232) | (5,519) | -59.6% | | Fair value changes of financial assets at FVTPL | (2,306) | 1,244 | -285.4% | | Loss on disposal of property, plant and equipment | (233) | (3,147) | -92.6% | | **Total** | **(4,771)** | **(7,422)** | **-35.7%** | [Income Tax Expense](index=9&type=section&id=Income%20Tax%20Expense) - Income tax expense increased by **32.8% to HK$68,618 thousand** year-on-year, primarily due to higher Hong Kong Profits Tax and mainland China Enterprise Income Tax, and a decrease in deferred tax[21](index=21&type=chunk) - The Group's management has not yet disclosed qualitative and quantitative information regarding Pillar Two income tax risks, as the estimated effective tax rate in all jurisdictions is above 15%[21](index=21&type=chunk) [Items Deducted/Credited to Profit for the Period](index=10&type=section&id=Items%20Deducted%2FCredited%20to%20Profit%20for%20the%20Period) Items Deducted/Credited to Profit for the Period (Six Months Ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Amortisation of intangible assets | 2,896 | 2,388 | +21.3% | | Cost of inventories recognised as expense | 1,337,247 | 1,185,046 | +12.8% | | Depreciation of property, plant and equipment | 76,701 | 74,211 | +3.4% | | Depreciation of right-of-use assets | 3,491 | 4,354 | -19.8% | | Research and development expenses | 16,275 | 17,839 | -8.7% | | Total staff costs | 402,371 | 364,647 | +10.3% | - Staff costs (excluding directors' emoluments) amounted to **HK$391,798 thousand**, and contributions to retirement benefit schemes were **HK$37,882 thousand**[23](index=23&type=chunk) [Dividends](index=10&type=section&id=Dividends) - During the interim period, a final dividend of **9.63 HK cents** per ordinary share and a special dividend of **6.19 HK cents** per ordinary share, totaling **HK$165,112,000**, were declared and paid to the owners of the Company for the year ended December 31, 2024[24](index=24&type=chunk) [Earnings Per Share](index=11&type=section&id=Earnings%20Per%20Share) Earnings Per Share (Six Months Ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit for the period attributable to owners of the Company (HK$ thousand) | 157,027 | 169,489 | | Basic earnings per share (HK cents) | 15.05 | 16.24 | | Diluted earnings per share (HK cents) | 15.05 | 16.24 | [Trade Receivables and Payables](index=11&type=section&id=Trade%20Receivables%20and%20Payables) Ageing Analysis of Trade Receivables (As at June 30) | Ageing | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | 0 to 30 days | 246,615 | 243,366 | | 31 to 90 days | 139,126 | 141,156 | | 91 to 180 days | 14,304 | 13,668 | | Over 180 days | 5,212 | 11,523 | | **Total** | **405,257** | **409,713** | Ageing Analysis of Trade Payables (As at June 30) | Ageing | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | 0 to 30 days | 122,014 | 139,516 | | 31 to 90 days | 26,709 | 33,520 | | 91 to 180 days | 9,270 | 1,074 | | Over 180 days | 19 | 7 | | **Total** | **158,012** | **174,117** | [Share Capital and Share Award Scheme](index=12&type=section&id=Share%20Capital%20and%20Share%20Award%20Scheme) - As at June 30, 2025, the number of issued and fully paid ordinary shares was **1,043,691,480**, with share capital amounting to **HK$2,941,441 thousand**, consistent with 2024[28](index=28&type=chunk) - The trustee of the Share Award Scheme purchased **78,000 ordinary shares** of the Company from the open market and vested **220,320 award shares** during the interim period[28](index=28&type=chunk) - For the six months ended June 30, 2025, the Group recognized a total expense of **HK$1,382,000** in relation to the Share Award Scheme[30](index=30&type=chunk) [Capital Commitments](index=13&type=section&id=Capital%20Commitments) Capital Expenditure Contracted But Not Provided For (As at June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Acquisition of property, plant and equipment | 8,216 | 14,594 | Management Discussion and Analysis [Macroeconomic Environment and Company Strategy](index=14&type=section&id=Macroeconomic%20Environment%20and%20Company%20Strategy) In the first half of 2025, the global economy stabilized, mainland China's economy grew beyond expectations, and Hong Kong experienced moderate growth despite local consumption outflow, prompting the Group to focus on product upgrades, cost optimization, and market expansion with premiumization and differentiation strategies - In the first half of 2025, the global economy showed signs of stabilization, with **mainland China's economy growing beyond market expectations** and Hong Kong's economy experiencing moderate growth[33](index=33&type=chunk)[34](index=34&type=chunk) - **Hong Kong's local consumer spending continued to shift to the Greater Bay Area** in mainland China, putting pressure on the retail and catering sectors[34](index=34&type=chunk) - The Group remains committed to **product upgrades and cost optimization**, driving sustainable growth through premiumization and differentiation strategies[34](index=34&type=chunk) [Overall Financial Performance](index=14&type=section&id=Overall%20Financial%20Performance) The Group achieved strong growth in the review period, with revenue increasing by **10.5% to HK$2,014.2 million** driven by instant noodle business and acquisitions; however, gross profit margin declined due to rising procurement costs, and profit attributable to owners decreased by **7.4%** due to higher income tax expense - The Group's overall revenue significantly increased by **10.5% to HK$2,014.2 million**, primarily driven by robust instant noodle business and contributions from last year's acquisitions[35](index=35&type=chunk) - Gross profit margin decreased by **1.4 percentage points from 35.0% in 2024 to 33.6% in 2025**, mainly due to rising procurement costs[35](index=35&type=chunk) - Profit attributable to owners of the Company decreased by **7.4% to HK$157.0 million**, primarily due to increased income tax expense in high-tax jurisdictions and reduced deferred tax[35](index=35&type=chunk) - Adjusted EBITDA increased by **1.0% to HK$303.2 million**, with an adjusted EBITDA margin of **15.1%**[36](index=36&type=chunk) [Segment Business Performance](index=7&type=section&id=Segment%20Business%20Performance) The Group's operating segments are redefined as Hong Kong and Other Regions, Mainland China, and Headquarters; Hong Kong and Other Regions saw revenue growth of **12.2%** and segment results increased by **12.5%**, while Mainland China's revenue grew by **9.4%** but segment results slightly decreased by **0.3%** due to procurement costs and exchange rates Segment Revenue (Six Months Ended June 30) | Segment | 2025 (HK$ thousand) | 2024 (HK$ thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Hong Kong and Other Regions | 792,264 | 705,856 | +12.2% | | Mainland China | 1,221,937 | 1,116,643 | +9.4% | | **Total** | **2,014,201** | **1,822,499** | **+10.5%** | Segment Results (Six Months Ended June 30) | Segment | 2025 (HK$ thousand) | 2024 (HK$ thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Hong Kong and Other Regions | 67,770 | 60,260 | +12.5% | | Mainland China | 172,940 | 173,460 | -0.3% | | Headquarters | (20,513) | (23,318) | -12.0% | | **Total Reportable Segments** | **220,197** | **210,402** | **+4.7%** | [Hong Kong and Other Regions Business](index=15&type=section&id=Hong%20Kong%20and%20Other%20Regions%20Business) - Revenue from Hong Kong and Other Regions business increased by **12.2% to HK$792.3 million**, accounting for **39.3% of the Group's total revenue**, driven by Hong Kong's instant noodle business and increased demand in other regions[37](index=37&type=chunk) - Segment results significantly increased by **12.5% to HK$67.8 million**, benefiting from sales revenue and gross profit growth[38](index=38&type=chunk) [Hong Kong Business](index=15&type=section&id=Hong%20Kong%20Business) - Instant noodle business performance improved, with **steady growth in sales of bagged and cup instant noodles**, and the launch of new flavors and collaborations with popular IPs[39](index=39&type=chunk)[40](index=40&type=chunk) - Frozen food performance remained stable, with the company focusing on **expanding into premium frozen food products** and developing new products for the catering channel[41](index=41&type=chunk) - Hong Kong Jieling (distribution business) continued to grow in the first half of 2025, benefiting from the **recovery of inbound tourism**[42](index=42&type=chunk) - The portfolio of other products (non-noodle) continued to expand, with the launch of **seasonal fruit and vegetable juices and new flavored cereals**, and the expansion of fresh-cut vegetable channels[43](index=43&type=chunk) [Other Regions Business](index=16&type=section&id=Other%20Regions%20Business) - Vietnam business performed excellently, actively exploring and expanding domestic market sales and distribution channels, with a focus on **young consumer groups**[44](index=44&type=chunk) - A **wholly-owned subsidiary was established in Taiwan** to provide clearer sales direction and more sales and promotional support[45](index=45&type=chunk) - South Korea's Gaemi Food (crispy roll snack manufacturer) business performed in line with management expectations, launching several **original design manufacturer products**[46](index=46&type=chunk) - Australia business successfully expanded through the **acquisition of ABC Pastry** (frozen dumpling producer) and the establishment of Australia Nissin Foods Pty. Ltd. (importing and selling instant noodles, etc.)[47](index=47&type=chunk) [Mainland China Business](index=17&type=section&id=Mainland%20China%20Business) - Mainland China's economy grew by **5.3% year-on-year** in the first half, with the consumer market maintaining a steady recovery and total retail sales of consumer goods increasing by **5.0%** year-on-year[48](index=48&type=chunk) - Mainland China business revenue increased by **9.4%** (in local currency: +10.8%) to **HK$1,221.9 million**, accounting for **60.7% of the Group's total revenue**[49](index=49&type=chunk) - Segment results slightly decreased by **0.3%** (in local currency: +1.0%) to **HK$172.9 million**, primarily affected by increased procurement costs and the depreciation of the Hong Kong dollar against the RMB[49](index=49&type=chunk) [Instant Noodle Business](index=18&type=section&id=Instant%20Noodle%20Business) - Adhering to a **premiumization strategy**, the instant noodle business performed steadily with positive growth in both bagged and cup instant noodle sales, expanding sales in inland regions[50](index=50&type=chunk) - **"Cup Noodles" sales expanded** through in-store tastings, online promotions, and collaborations with major retailers, while digital channels enhanced brand awareness for premium bagged instant noodles like "Demae Itcho" and "Nissin Raoh"[50](index=50&type=chunk) - New products like **"Cup Noodles Korean Army Stew Flavor"** were launched, existing products like "Cup Noodles Rich Seafood Shrimp Broth Flavor" were upgraded, and collaborations with "Hatsune Miku" promoted new offerings[51](index=51&type=chunk) [Non-Noodle Business](index=18&type=section&id=Non-Noodle%20Business) - The distribution business (Shanghai Dongfeng Trading) rebounded, introducing **new product lines and brands** such as European bottled water, Japanese sparkling beverages, and Korean snacks[52](index=52&type=chunk) - **"Nissin Koikeya Potato Chips" performed well** with expanding distribution channels; "KAGOME" fruit and vegetable juices attracted health-conscious customers; and microwaveable frozen foods met the demands of urban residents[53](index=53&type=chunk) [Financial Review](index=18&type=section&id=Financial%20Review) The Group maintains a robust financial position with ample liquidity and available bank facilities; as of June 30, 2025, the Group had no external borrowings and a zero gearing ratio, with capital expenditures primarily invested in production plants in Hong Kong and mainland China - As at June 30, 2025, the Group's **total assets were HK$4,677.9 million**, and **total equity was HK$3,699.6 million**[54](index=54&type=chunk) - **Working capital was HK$1,475.7 million**, and the **current ratio was 2.8**, maintaining a sound financial position[54](index=54&type=chunk) - **Net cash was approximately HK$1,355.1 million**, with available bank facilities of **HK$820.0 million**[55](index=55&type=chunk) - The Group had **no external borrowings** and a **zero gearing ratio** as at June 30, 2025[55](index=55&type=chunk) [Liquidity, Financial Resources and Gearing Ratio](index=18&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Gearing%20Ratio) Liquidity and Financial Resources (As at June 30) | Indicator | 2025 (HK$ million) | 2024 (HK$ million) | | :--- | :--- | :--- | | Total assets | 4,677.9 | 4,776.4 | | Total equity | 3,699.6 | 3,670.0 | | Working capital | 1,475.7 | 1,477.2 | | Current ratio | 2.8 | 2.6 | | Net cash | 1,355.1 | 1,402.5 | | Available bank facilities | 820.0 | 820.0 | | External borrowings | 0 | 0 | | Gearing ratio | 0 | 0 | [Capital Expenditure and Commitments](index=19&type=section&id=Capital%20Expenditure%20and%20Commitments) - During the review period, capital expenditure was approximately **HK$102.2 million** (2024: HK$61.2 million), primarily for capital investments in **production plants in Hong Kong and mainland China**[56](index=56&type=chunk) - As at June 30, 2025, capital commitments contracted but not provided for the acquisition of property, plant and equipment amounted to **HK$8.2 million**[57](index=57&type=chunk) [Financial Risk Management](index=19&type=section&id=Financial%20Risk%20Management) - The Group has **not entered into or traded derivative financial instruments** for hedging or speculative purposes[58](index=58&type=chunk) - Major foreign currency risks arise from fluctuations in the **Japanese Yen and RMB against the Hong Kong dollar**, while other foreign currency risks (such as Vietnamese Dong, Korean Won, Australian Dollar, and New Taiwan Dollar) remain minor[58](index=58&type=chunk) [Contingent Liabilities and Pledge of Assets](index=19&type=section&id=Contingent%20Liabilities%20and%20Pledge%20of%20Assets) - As at June 30, 2025, the Group had **no significant contingent liabilities or pledge of assets**[59](index=59&type=chunk)[60](index=60&type=chunk) [Future Outlook](index=19&type=section&id=Future%20Outlook) The Company maintains cautious optimism for long-term business development across regions, continuously controlling costs, enhancing operational efficiency, and pursuing growth through premiumization and diversification strategies, including launching high-quality products, expanding portfolios for health needs, and actively growing market presence in mainland China, Vietnam, South Korea, and Australia - The Company maintains a **cautiously optimistic outlook** for long-term business development across various regions, continuously focusing on **cost control and operational efficiency enhancement**[61](index=61&type=chunk) - It will continue to launch **premium products with excellent taste and quality ingredients**, while expanding its product portfolio to meet the demands of health-conscious consumers and broaden its revenue base[61](index=61&type=chunk) - In mainland China, the Group will continue to **expand its business footprint**, reactivate sales in existing regions, explore new sales channels, and enter untapped markets[62](index=62&type=chunk) - In Vietnam, South Korea, and Australia, the Group will actively **expand sales and distribution channels**, capitalizing on economic growth, changing consumer preferences, and increased demand for high-quality, convenient food[62](index=62&type=chunk)[63](index=63&type=chunk) [Significant Investments, Acquisitions and Disposals](index=20&type=section&id=Significant%20Investments%2C%20Acquisitions%20and%20Disposals) During the review period, the Group did not undertake any significant acquisitions or disposals of subsidiaries, associates, or joint ventures, nor did it hold any significant investments - During the review period, the Group had **no significant acquisitions or disposals** of subsidiaries, associates, or joint ventures[65](index=65&type=chunk) - The Group held **no significant investments**[65](index=65&type=chunk) [Sustainability](index=20&type=section&id=Sustainability) The Group is committed to providing a stable and reliable food supply, ensuring consumer well-being, and prioritizing food safety, while actively implementing environmental measures such as incorporating biomass materials in "Cup Noodles" production to reduce greenhouse gas emissions, plastic consumption, and food waste - The Group is committed to providing a **stable and reliable food supply**, ensuring consumer well-being, and placing high importance on **food safety**[66](index=66&type=chunk) - It implements various environmental measures, such as incorporating **biomass materials into the production of selected "Cup Noodles" flavors**, to reduce greenhouse gas emissions, plastic consumption, and food waste[66](index=66&type=chunk) [Employment and Remuneration Policies](index=20&type=section&id=Employment%20and%20Remuneration%20Policies) As of June 30, 2025, the Group employed 3,622 staff, with remuneration determined by performance, qualifications, and industry practices, offering medical benefits, training, and discretionary bonuses, while the Share Award Scheme provides long-term incentives for key employees - As at June 30, 2025, the Group had a total of **3,622 employees**[67](index=67&type=chunk) - Remuneration packages are determined with reference to **employee performance, qualifications, experience, and prevailing industry practices**[67](index=67&type=chunk) - The Group provides **medical benefits, internal and external training**, and discretionary bonuses based on individual performance[67](index=67&type=chunk) - The Share Award Scheme aims to provide **long-term incentives** for selected key employees of the Group[67](index=67&type=chunk) Corporate Governance and Supplementary Information [Corporate Governance](index=21&type=section&id=Corporate%20Governance) The Company has adopted and complied with the Corporate Governance Code set out in Appendix C1 of the Listing Rules; despite the Chairman and CEO being the same person, the Board believes this structure enables quick and effective decision-making, with independent non-executive directors ensuring power balance and independent judgment - The Company has adopted and complied with the **Corporate Governance Code** set out in Appendix C1 of the Listing Rules[69](index=69&type=chunk) - Mr. Kiyotaka Ando serves as both Chairman and Chief Executive Officer, an arrangement the Board believes facilitates **quick and effective business decisions**, with the presence of independent non-executive directors ensuring a balance of power[69](index=69&type=chunk) [Audit Committee](index=21&type=section&id=Audit%20Committee) The Company has established an Audit Committee in accordance with the Corporate Governance Code, which has reviewed the Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025 - The Company has established an **Audit Committee** in accordance with the Corporate Governance Code and has formulated its terms of reference in writing[70](index=70&type=chunk) - The Audit Committee has reviewed the Group's **unaudited condensed consolidated financial statements** for the six months ended June 30, 2025[70](index=70&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=21&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Listed%20Securities) For the six months ended June 30, 2025, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, and the Company held no treasury shares - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's **listed securities**[71](index=71&type=chunk) - As at June 30, 2025, the Company held **no treasury shares**[71](index=71&type=chunk) [Supplementary Information Regarding 2024 Annual Report](index=21&type=section&id=Supplementary%20Information%20Regarding%202024%20Annual%20Report) This section provides additional details on the Share Award Scheme from the 2024 Annual Report, including specifics of award shares granted to the five highest-paid individuals, emphasizing that the scheme has no minimum vesting period - Supplementary information is disclosed regarding the **Share Award Scheme** in the 2024 Annual Report, particularly details of award shares granted to the **five highest-paid individuals**[72](index=72&type=chunk)[73](index=73&type=chunk) - The scheme does not stipulate any **minimum vesting period**, with the vesting schedule and conditions determined at the sole discretion of the Board[74](index=74&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不 發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失 承擔任何責任。 （於開曼群島註冊成立之有限公司） （股份代號︰3393） 截至二零二五年六月三十日止六個月的中期業績公告 財務摘要 – 1 – • 營業額為人民幣4,390.41百萬元（二零二四年同期：人民幣3,741.54百萬元），增幅為17%。 • 電AMI業務的收入增至人民幣1,883.57百萬元，較二零二四年同期增加30%。 • 通信及流體AMI業務的收入增至人民幣1,298.50百萬元，較二零二四年同期增加13%。 • ADO業務的收入增至人民幣1,208.34百萬元，較二零二四年同期增加6%。 • 期內本公司擁有人應佔純利增加33%至人民幣439.65百 萬 元（二 零 二 四年同期：人民幣 331.03百萬元）。 • 期內每股基本盈利為人民幣44.5分（二零二四年同期：人民幣33.5分）。 • 董事會不建議就截至二零二五年六月三十日止六個月派付中期股息（二零二四年同期： 無）。 威勝控股有限公司（「本公司 ...

[Company Information](index=6&type=section&id=Company%20Information) This section details the company's governance structure, key personnel, and global listing information [Board of Directors and Management](index=6&type=section&id=Board%20of%20Directors%20and%20Management) Zai Lab's Board comprises Dr. Du Ying (Chairperson and CEO) and eight independent directors, supported by various committees for robust corporate governance - The Board of Directors consists of Dr. Du Ying (Chairperson and Chief Executive Officer) and eight independent directors[11](index=11&type=chunk) - Committees include Audit, Remuneration, Nomination and Corporate Governance, Research and Development, and Commercial[13](index=13&type=chunk)[14](index=14&type=chunk) [Company Contact and Listing Information](index=6&type=section&id=Company%20Contact%20and%20Listing%20Information) The company maintains headquarters in mainland China, the US, and Hong Kong, with listings on HKEX (9688) and Nasdaq (ZLAB), audited by KPMG - Mainland China headquarters will relocate to Building B, No. 899 Halei Road, Pudong New Area, Shanghai, effective July 1, 2025[11](index=11&type=chunk) - The company is listed on the Hong Kong Stock Exchange (**9688**) and Nasdaq (**ZLAB**)[14](index=14&type=chunk) - KPMG is responsible for Hong Kong financial report audits, while KPMG LLP handles US financial report audits[14](index=14&type=chunk) [Forward-Looking Statements](index=8&type=section&id=Forward-Looking%20Statements) This section outlines the company's forward-looking statements, emphasizing inherent uncertainties and potential material differences in actual results [Forward-Looking Statement Disclaimer](index=8&type=section&id=Forward-Looking%20Statement%20Disclaimer) This report contains numerous forward-looking statements regarding the company's strategy, product potential, and financial performance, which are subject to inherent uncertainties and risks - Forward-looking statements cover strategy, product potential, market, capital allocation, clinical development, regulatory approvals, collaboration benefits, and future financial performance[15](index=15&type=chunk) - Actual results may differ materially due to various factors, including commercialization capabilities, financing, clinical development outcomes, regulatory approvals, third-party performance risks, patent protection, trade policies, Chinese government intervention, geopolitical events, uncertainties in the Chinese legal system, and currency exchange rate fluctuations[15](index=15&type=chunk)[16](index=16&type=chunk) - The company has no obligation to update or revise any forward-looking statements, and investors should not place undue reliance on them[17](index=17&type=chunk) [Management Discussion and Analysis](index=11&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an in-depth review of the company's operational performance, financial position, and future strategic outlook [Overview](index=11&type=section&id=Overview) Zai Lab is a patient-centered global biopharmaceutical company focused on oncology, immunology, neuroscience, and infectious diseases, with seven commercialized products and ongoing R&D investments - The company is a patient-centered global biopharmaceutical company, focused on oncology, immunology, neuroscience, and infectious diseases[20](index=20&type=chunk) - Currently, it has seven commercialized products (ZEJULA, VYVGART/VYVGART Hytrulo, NUZYRA, OPTUNE, QINLOCK, TYVYT, and ONKAS) approved in at least one region in Greater China[20](index=20&type=chunk) - Since its inception, the company has generated net losses and negative cash flows from operations, primarily due to R&D and selling, general, and administrative expenses[20](index=20&type=chunk) [Recent Developments](index=11&type=section&id=Recent%20Developments) The company achieved a 15% year-over-year increase in commercial product net revenue, driven by VYVGART, NUZYRA, and TYVYT sales, alongside significant clinical and regulatory progress for multiple pipeline candidates 2025 First Half Product Net Revenue (Million USD) | Indicator | 2025 First Half (Million USD) | 2024 First Half (Million USD) | Change (Million USD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Product Net Revenue | 214.7 | 187.2 | 27.5 | 15% | - ZL-1310 (DLL3 ADC) received FDA Fast Track designation for ES-SCLC, with Ia/Ib clinical study showing a **67% objective response rate** in second-line SCLC, and a pivotal study planned for later this year[23](index=23&type=chunk) - Bemarituzumab Phase III clinical study FORTITUDE-101 met its primary endpoint of significantly improved overall survival, with an NDA submission planned in China for the second half of 2025[23](index=23&type=chunk) - Tumor Treating Fields (TTFields) Phase III clinical study PANOVA-3 met its primary endpoint of significantly improved median overall survival, with an NDA submission planned in China for the second half of 2025[23](index=23&type=chunk) - Repotrectinib's supplemental NDA for adult patients with NTRK-positive solid tumors was accepted by the National Medical Products Administration[25](index=25&type=chunk) - Efgartigimod (FcRn) received FDA approval for self-administration in gMG and CIDP, and was recommended in the "Chinese Guidelines for Diagnosis and Treatment of Myasthenia Gravis (2025 Edition)" for early target-driven and long-term maintenance therapy[25](index=25&type=chunk) [Factors Affecting Our Operating Results](index=14&type=section&id=Factors%20Affecting%20Our%20Operating%20Results) The company's operating performance is influenced by commercial product sales, R&D investment, sales and administrative expenses, and the ability to commercialize pipeline candidates and leverage licensing agreements - Product revenue is expected to increase with enhanced market access for existing commercial products (e.g., inclusion in the National Reimbursement Drug List) and the launch of more commercial products[26](index=26&type=chunk) - R&D expenses are a key driver of long-term competitiveness and future growth, with the company continuing to invest heavily in internal discovery, clinical and preclinical trials, and business development[27](index=27&type=chunk) - Selling, general, and administrative expenses are expected to remain high to support commercial product sales and preparations for new product launches[29](index=29&type=chunk) - The company's ability to generate revenue from pipeline candidates depends on successful regulatory approval and commercialization[30](index=30&type=chunk) - Licensing and collaboration agreements involve upfront payments, milestone payments (development, regulatory, sales), and royalties; as of June 30, 2025, future development and regulatory milestone payments could reach up to **USD 211 million**, and sales milestone payments up to **USD 1.753 billion**[31](index=31&type=chunk) [Future and Outlook](index=16&type=section&id=Future%20and%20Outlook) Zai Lab aims to become a leading global biopharmaceutical company by accelerating patient access to medicines, expanding its pipeline, and maintaining commercial excellence, while integrating its "Trust for Life" strategy - The company's mission is to become a leading global biopharmaceutical company, focused on discovering, developing, and commercializing innovative therapies[32](index=32&type=chunk) - The corporate strategy has three pillars: accelerating patient access to medicines (investing in R&D), expanding and strengthening the pipeline (internal discovery, collaborations, business development), and maintaining commercial excellence and execution (strong financial performance, increased accessibility, efficiency, path to profitability)[34](index=34&type=chunk) - The company will develop its "Trust for Life" strategy, encompassing three commitments: improving human health, creating a better future, and acting immediately with ethical business practices and strong corporate governance[33](index=33&type=chunk) [Financial Review](index=17&type=section&id=Financial%20Review) For the six months ended June 30, 2025, Zai Lab's product net revenue grew 15% to USD 214.7 million, with total revenue increasing 15% to USD 216.5 million, while net loss significantly decreased by 33% to USD 89.2 million 2025 First Half Operating Results Overview (Compared to 2024 Same Period) (Thousand USD) | Indicator | 2025 First Half (Thousand USD) | 2024 First Half (Thousand USD) | Change (Thousand USD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Product Revenue, Net | 214,735 | 187,255 | 27,480 | 15% | | Collaboration Revenue | 1,729 | 398 | 1,331 | 334% | | **Total Revenue** | **216,464** | **187,653** | **28,811** | **15%** | | Cost of Product Revenue | (81,455) | (68,767) | (12,688) | 18% | | Cost of Collaboration Revenue | (412) | (85) | (327) | 385% | | Research and Development Expenses | (111,343) | (116,270) | 4,927 | (4)% | | Selling, General and Administrative Expenses | (134,460) | (148,904) | 14,444 | (10)% | | Operating Loss | (111,206) | (146,373) | 35,167 | (24)% | | Interest Income | 17,449 | 18,988 | (1,539) | (8)% | | Interest Expense | (2,449) | (605) | (1,844) | 305% | | Foreign Exchange Gain (Loss) | 3,488 | (6,176) | 9,664 | (156)% | | Other Income, Net | 3,553 | 418 | 3,135 | 750% | | Loss Before Income Taxes | (89,165) | (133,748) | 44,583 | (33)% | | Income Tax Expense | — | — | — | —% | | **Net Loss** | **(89,165)** | **(133,748)** | **44,583** | **(33)%** | | Basic and Diluted Loss Per Share | (0.08) | (0.14) | - | (40)% | 2025 First Half Product Net Revenue Breakdown (Thousand USD) | Commercial Product | 2025 First Half | 2024 First Half | Change (USD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | ZEJULA | 90,571 | 90,500 | 71 | —% | | VYVGART/VYVGART Hytrulo | 44,602 | 36,352 | 8,250 | 23% | | NUZYRA | 29,410 | 22,208 | 7,202 | 32% | | OPTUNE | 23,718 | 25,064 | (1,346) | (5)% | | QINLOCK | 17,045 | 13,131 | 3,914 | 30% | | TYVYT | 5,739 | — | 5,739 | NM | | ONKAS | 3,025 | — | 3,025 | NM | | Other | 625 | — | 625 | NM | | **Total Product Revenue, Net** | **214,735** | **187,255** | **27,480** | **15%** | - Research and development expenses decreased by **USD 4.9 million (4%)**, primarily due to lower employee and clinical trial costs, partially offset by increased license fees[41](index=41&type=chunk) - Selling, general, and administrative expenses decreased by **USD 14.4 million (10%)**, mainly due to reduced personnel costs from resource optimization and efficiency improvements[44](index=44&type=chunk) - Foreign exchange gain was **USD 3.5 million**, compared to a loss of **USD 6.2 million** in the prior year period, primarily driven by the appreciation of RMB against the USD[47](index=47&type=chunk) [Discussion of Certain Key Balance Sheet Items](index=22&type=section&id=Discussion%20of%20Certain%20Balance%20Sheet%20Items) As of June 30, 2025, the company's cash, cash equivalents, and restricted cash totaled USD 833.4 million, with accounts receivable and inventories increasing to support sales growth, and short-term borrowings rising to USD 174.5 million Key Balance Sheet Item Changes (Thousand USD) | Indicator | June 30, 2025 | December 31, 2024 | Change (Thousand USD) | | :--- | :--- | :--- | :--- | | Cash, Cash Equivalents and Restricted Cash | 833,400 | 880,800 | (47,400) | | Accounts Receivable | 88,500 | 85,178 | 3,322 | | Inventories, Net | 61,700 | 39,875 | 21,825 | | Property and Equipment, Net | 50,160 | 47,961 | 2,199 | | Accounts Payable | 107,357 | 100,906 | 6,451 | | Other Current Liabilities | 44,051 | 58,720 | (14,669) | | Short-Term Borrowings | 174,509 | 131,711 | 42,798 | - Accounts receivable increased by **USD 3.3 million** to **USD 88.5 million**, primarily due to increased product revenue[53](index=53&type=chunk) - Inventories, net, increased by **USD 21.8 million** to **USD 61.7 million** to support anticipated sales growth[54](index=54&type=chunk) - Short-term borrowings increased by **USD 42.8 million** to **USD 174.5 million**, mainly due to net new borrowings in the first half of 2025[59](index=59&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=23&type=section&id=Liquidity,%20Financial%20Resources%20and%20Capital%20Structure) As of June 30, 2025, the company's cash and cash equivalents and current restricted cash totaled USD 832.3 million, sufficient to meet cash needs for at least the next twelve months, with changes in cash flows reflecting reduced operating losses and increased investment proceeds Cash and Cash Equivalents, Short-Term Investments and Restricted Cash (Thousand USD) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and Cash Equivalents | 732,159 | 449,667 | | Current Restricted Cash | 100,111 | 100,000 | | Short-Term Investments | — | 330,000 | | Non-Current Restricted Cash | 1,114 | 1,114 | | **Total** | **833,384** | **880,781** | - As of June 30, 2025, the company's cash and cash equivalents and current restricted cash totaled **USD 832.3 million**, expected to be sufficient to meet cash needs for at least the next twelve months[62](index=62&type=chunk) Cash Flow Data (Thousand USD) | Indicator | 2025 First Half | 2024 First Half | Change (USD) | | :--- | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (92,723) | (132,279) | 39,556 | | Net Cash Provided by Investing Activities | 323,211 | 2,446 | 320,765 | | Net Cash Provided by Financing Activities | 51,990 | 69,870 | (17,880) | | Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash | 125 | (137) | 262 | | Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | 282,603 | (60,100) | 342,703 | - Net cash used in operating activities decreased by **USD 39.6 million**, primarily due to a reduction in net loss[64](index=64&type=chunk) - Net cash provided by investing activities increased by **USD 320.8 million**, mainly due to increased proceeds from the maturity of short-term investments[65](index=65&type=chunk) - Net cash provided by financing activities decreased by **USD 17.9 million**, primarily due to the repayment of short-term bank borrowings[66](index=66&type=chunk) - The company has entered into debt arrangements with Chinese financial institutions to borrow up to approximately **USD 240.2 million**, with **USD 174.5 million** in outstanding short-term debt as of June 30, 2025[61](index=61&type=chunk) [Contractual Obligations and Commitments](index=26&type=section&id=Contractual%20Obligations%20and%20Commitments) As of June 30, 2025, the company had USD 1.1 million in purchase commitments, primarily for commercial production development and capital expenditures, with no significant legal proceedings or claims - As of June 30, 2025, the company had **USD 1.1 million** in purchase commitments related to commercial production development activities and capital expenditures, expected to be incurred within one year[69](index=69&type=chunk) - The company is not currently a party to any material legal proceedings and has not paid any indemnity claims[196](index=196&type=chunk)[197](index=197&type=chunk) [Disclosure Regarding Market Risk](index=26&type=section&id=Disclosure%20Regarding%20Market%20Risk) Zai Lab faces foreign exchange, credit, and interest rate risks, with RMB-USD fluctuations potentially impacting its RMB-denominated operations and USD/HKD-denominated securities, while credit risk is managed through monitoring, and interest rate changes are not expected to have a material impact - The company faces foreign exchange risk, credit risk, and interest rate risk[70](index=70&type=chunk) - Fluctuations in the exchange rate of RMB against the USD and other currencies may impact the company's RMB-denominated operations and the value of its American Depositary Shares and ordinary shares traded in USD/HKD[71](index=71&type=chunk)[74](index=74&type=chunk) - The company manages credit risk for accounts receivable by continuously monitoring outstanding balances and limiting credit exposure, with no significant credit losses historically[75](index=75&type=chunk) - Given the short-term nature of deposits and investments, sudden changes in market interest rates are not expected to have a material impact on the company's financial position and operating results[77](index=77&type=chunk) [Gearing Ratio](index=28&type=section&id=Gearing%20Ratio) As of June 30, 2025, Zai Lab's gearing ratio increased to 22% from 16% at December 31, 2024 Gearing Ratio | Date | Gearing Ratio | | :--- | :--- | | June 30, 2025 | 22% | | December 31, 2024 | 16% | [Material Investments Held and Future Plans](index=28&type=section&id=Material%20Investments%20Held%20and%20Future%20Plans) As of June 30, 2025, the company held no other material investments and had no future plans for significant investments or capital assets, nor did it undertake any major acquisitions or disposals of subsidiaries, associates, or joint ventures in the first half of 2025 - As of June 30, 2025, the company held no other material investments[80](index=80&type=chunk) - As of June 30, 2025, the company had no future plans for any material investments or capital assets[81](index=81&type=chunk) - In the first half of 2025, the company did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures[82](index=82&type=chunk) [Employees and Remuneration Policy](index=29&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the company had 1,850 full-time employees globally, with remuneration policies based on performance and market data, including equity incentive plans, and total compensation costs of USD 131.4 million for the first half of 2025 - As of June 30, 2025, the company's global team comprised **1,850 full-time employees**, an increase of 6 from December 31, 2024[83](index=83&type=chunk) - Remuneration policy is based on performance and market data, offering share options, share appreciation rights, and restricted shares through equity incentive plans[83](index=83&type=chunk) Total Compensation Costs (Thousand USD) | Period | Total Compensation Costs (Thousand USD) | | :--- | :--- | | 2025 First Half | 131,400 | | 2024 First Half | 153,400 | [Pledge of Group Assets and Contingent Liabilities](index=29&type=section&id=Pledge%20of%20Group%20Assets%20and%20Contingent%20Liabilities) As of June 30, 2025, the company pledged USD 100 million in restricted cash at Bank of China (Hong Kong) as collateral for a standby letter of credit, with no other significant contingent liabilities - As of June 30, 2025, the company pledged **USD 100 million** in restricted cash held at Bank of China (Hong Kong) as collateral for a standby letter of credit[85](index=85&type=chunk) - As of June 30, 2025, the company had no significant contingent liabilities[86](index=86&type=chunk) [Interim Dividends and Recent Accounting Pronouncements](index=29&type=section&id=Interim%20Dividends%20and%20Recent%20Accounting%20Pronouncements) The Board did not recommend any interim dividends for the first half of 2025 and 2024, and the company is currently evaluating the impact of recently issued but not yet adopted accounting pronouncements - The Board did not recommend any interim dividends for the first half of 2025 and 2024[87](index=87&type=chunk) - The company is evaluating the impact of ASU No. 2023-09 (Improvements to Income Tax Disclosures) and ASU No. 2024-03 (Disclosures by Public Entities about Expenses), expected to be adopted for the years ending December 31, 2025, and 2027, respectively[163](index=163&type=chunk)[164](index=164&type=chunk) [Other Information](index=30&type=section&id=Other%20Information) This section covers director and major shareholder interests, equity incentive plans, corporate governance, securities transactions, use of proceeds, accounting standard differences, and subsequent events [Directors' and Major Shareholders' Interests](index=30&type=section&id=Directors'%20and%20Major%20Shareholders'%20Interests) As of June 30, 2025, the company's directors and chief executive (including Dr. Du Ying) held long positions in shares and related shares, alongside major shareholders such as JPMorgan Chase & Co. and FMR LLC Directors' and Chief Executive's Shareholding Profile (As of June 30, 2025) | Director Name | Nature of Interest | Number of Shares | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Dr. Du Ying | Beneficial Owner | 49,127,910 | 4.42% | | John David Diekman | Beneficial Owner | 997,690 | 0.08% | | Peter Karl Wirth | Beneficial Owner | 3,937,500 | 0.35% | Major Shareholders' Shareholding Profile (As of June 30, 2025) | Major Shareholder Name | Capacity/Nature of Interest | Number of Shares Held | Approximate Percentage of Equity in the Company | | :--- | :--- | :--- | :--- | | JPMorgan Chase & Co. | Approved Lending Agent | 86,801,595 | 7.81% | | FMR LLC | Interest of Corporation Controlled by You | 95,696,821 | 8.61% | | Qiming Corporate GP IV, Ltd. | Interest of Corporation Controlled by You | 66,329,320 | 5.97% | | The Capital Group Companies, Inc. | Interest of Corporation Controlled by You | 65,153,170 | 5.86% | [Share Incentive Schemes](index=33&type=section&id=Share%20Incentive%20Schemes) The company operates four share incentive schemes (2015, 2017, 2022, and 2024), with a maximum of 92,521,370 shares issuable under outstanding options as of June 30, 2025 - The company has four share incentive schemes: 2015, 2017, 2022, and 2024[96](index=96&type=chunk) - As of June 30, 2025, the maximum number of shares issuable under outstanding options granted but unexercised under all schemes is **92,521,370**[96](index=96&type=chunk) - During the reporting period, the number of shares potentially issuable under options and non-option awards granted under the 2024 Scheme represented **1.32%** of the weighted average number of issued shares during the period[96](index=96&type=chunk) [2015 Scheme](index=33&type=section&id=2015%20Scheme) The 2015 Scheme, approved on March 5, 2015, ceased new grants after the main conversion effective date, with 17,773,140 shares remaining under outstanding options as of June 30, 2025 2015 Scheme Share Option Balance (As of June 30, 2025) | Category of Grantees | Balance as of January 1, 2025 | Exercised During Reporting Period | Balance as of June 30, 2025 | | :--- | :--- | :--- | :--- | | Directors and Chief Executive of the Company | 21,157,450 | 3,927,780 | 19,638,700 | | Employee Participants (excluding Chief Executive) | 3,901,090 | 3,357,250 | 1,773,140 | | **Total** | **25,058,500** | **7,285,360** | **17,773,140** | [2017 Scheme](index=35&type=section&id=2017%20Scheme) The 2017 Scheme, approved on August 7, 2017, ceased new grants after the main conversion effective date, with 30,096,970 shares under outstanding options and 5,359,210 shares under unvested non-option awards as of June 30, 2025 2017 Scheme Share Option Balance (As of June 30, 2025) | Category of Grantees | Balance as of January 1, 2025 | Exercised During Reporting Period | Balance as of June 30, 2025 | | :--- | :--- | :--- | :--- | | Directors and Chief Executive of the Company | 11,870,000 | 0 | 11,870,000 | | Employee Participants (excluding Chief Executive) | 33,287,030 | 2,215,600 | 30,096,970 | | **Total** | **45,157,030** | **2,215,600** | **41,966,970** | 2017 Scheme Non-Option Awards Unvested (As of June 30, 2025) | Category of Grantees | Unvested as of January 1, 2025 | Vested During Reporting Period | Unvested as of June 30, 2025 | | :--- | :--- | :--- | :--- | | Directors and Chief Executive of the Company | 1,583,880 | 730,000 | 1,153,880 | | Employee Participants (excluding Chief Executive) | 9,978,860 | 3,955,570 | 5,359,210 | | **Total** | **11,562,740** | **4,685,570** | **6,513,090** | [2022 Scheme](index=40&type=section&id=2022%20Scheme) The 2022 Scheme, approved on June 22, 2022, ceased new grants after the adoption of the 2024 Scheme on June 18, 2024, with 37,313,970 shares under outstanding options and 12,788,630 shares under unvested non-option awards as of June 30, 2025 2022 Scheme Share Option Balance (As of June 30, 2025) | Category of Grantees | Balance as of January 1, 2025 | Exercised During Reporting Period | Balance as of June 30, 2025 | | :--- | :--- | :--- | :--- | | Directors and Chief Executive of the Company | 9,104,560 | 0 | 9,104,560 | | Employee Participants (excluding Chief Executive) | 42,461,860 | 2,081,550 | 37,313,970 | | **Total** | **51,566,420** | **2,081,550** | **46,418,530** | 2022 Scheme Non-Option Awards Unvested (As of June 30, 2025) | Category of Grantees | Unvested as of January 1, 2025 | Vested During Reporting Period | Unvested as of June 30, 2025 | | :--- | :--- | :--- | :--- | | Directors and Chief Executive of the Company | 931,320 | 308,310 | 623,010 | | Employee Participants (excluding Chief Executive) | 18,983,390 | 4,392,380 | 12,788,630 | | **Total** | **19,914,710** | **4,700,690** | **13,411,640** | [2024 Scheme](index=46&type=section&id=2024%20Scheme) The 2024 Scheme, approved on June 18, 2024, had 7,337,290 shares under outstanding options and 8,595,280 shares under unvested non-option awards as of June 30, 2025 2024 Scheme Share Option Balance (As of June 30, 2025) | Category of Grantees | Balance as of January 1, 2025 | Granted During Reporting Period | Balance as of June 30, 2025 | | :--- | :--- | :--- | :--- | | Directors and Chief Executive of the Company | 0 | 2,525,850 | 2,525,850 | | Employee Participants (excluding Chief Executive) | 208,080 | 4,609,400 | 4,811,440 | | **Total** | **208,080** | **7,134,210** | **7,337,290** | 2024 Scheme Non-Option Awards Unvested (As of June 30, 2025) | Category of Grantees | Unvested as of January 1, 2025 | Granted During Reporting Period | Unvested as of June 30, 2025 | | :--- | :--- | :--- | :--- | | Directors and Chief Executive of the Company | 2,776,930 | 974,790 | 1,869,180 | | Employee Participants (excluding Chief Executive) | 0 | 6,488,960 | 6,726,100 | | **Total** | **2,776,930** | **7,361,810** | **8,595,280** | [Corporate Governance and Securities Dealing Policy](index=52&type=section&id=Corporate%20Governance%20and%20Securities%20Dealing%20Policy) The company adheres to corporate governance codes, balancing the combined role of Chairperson and CEO with a Lead Independent Director, and all directors complied with the adopted securities dealing policy during the reporting period - The company complies with the Corporate Governance Code, balancing the role of Chairperson and Chief Executive Officer (Dr. Du Ying) by appointing a Lead Independent Director (Dr. John Diekman)[125](index=125&type=chunk) - The company has adopted a securities dealing policy no less stringent than the Model Code, and all directors complied with this policy during the reporting period[128](index=128&type=chunk)[129](index=129&type=chunk) [Dealings in Listed Securities and Changes in Directors' Information](index=53&type=section&id=Dealings%20in%20Listed%20Securities%20and%20Changes%20in%20Directors'%20Information) During the reporting period, the company did not purchase, sell, or redeem any listed securities, nor did it hold any treasury shares, with the only director information change being Ms. Liang Wing Yee's appointment to the Nomination and Corporate Governance Committee - During the reporting period, the company neither purchased, sold, nor redeemed any of its listed securities, nor did it hold any treasury shares[130](index=130&type=chunk)[131](index=131&type=chunk) - The only change in director information was the appointment of Ms. Liang Wing Yee as a member of the Nomination and Corporate Governance Committee, effective April 16, 2025[132](index=132&type=chunk) [Use of Net Proceeds](index=53&type=section&id=Use%20of%20Net%20Proceeds) The company has detailed the use of net proceeds from its April 2021, Global, and November 2024 offerings, with most funds allocated as planned for business development, clinical research, commercialization, and pipeline enhancement, and remaining funds expected to be fully utilized by late 2025 to 2027 Use of Net Proceeds from April 2021 Offering (As of June 30, 2025, Million USD) | Use | Percentage of Total | Net Proceeds from Offering | Unutilized as of January 1, 2025 | Utilized During Reporting Period | Actual Use as of June 30, 2025 | Unutilized as of June 30, 2025 | Expected Timeline | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Funding new business and corporate development and licensing opportunities | 30.0% | 245.4 | 245.4 | 25.9 | 25.9 | 219.5 | Through December 2027 | | Completing clinical studies and advancing new drug candidates | 30.0% | 245.4 | — | — | 245.4 | — | Not Applicable | | Expanding the company's commercialization efforts | 20.0% | 163.6 | — | — | 163.6 | — | Not Applicable | | Enhancing the company's global product pipeline | 15.0% | 122.7 | 87.1 | 15.0 | 50.6 | 72.1 | Through December 2027 | | Working capital and other general corporate purposes | 5.0% | 40.9 | 40.9 | — | — | 40.9 | Through December 2027 | | **Total** | **100.0%** | **818.0** | **373.4** | **40.9** | **485.5** | **332.5** | | Use of Net Proceeds from Global Offering (As of June 30, 2025, Million USD) | Use | Percentage of Total | Net Proceeds from Offering | Unutilized as of January 1, 2025 | Utilized During Reporting Period | Actual Use as of June 30, 2025 | Unutilized as of June 30, 2025 | Expected Timeline | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | For ZEJULA, to seek additional indications and hire high-end R&D personnel for its development, and to develop and improve the company's manufacturing facilities for ZEJULA commercialization | 7.2% | 61.6 | — | — | 61.6 | — | Not Applicable | | Funding ongoing and planned clinical studies and preparatory registration filings for Tumor Treating Fields in various solid tumor cancer indications | 6.2% | 52.7 | 28.7 | 1.1 | 25.1 | 27.6 | Through December 2027 | | For enhancing the company's commercialization capabilities for ZEJULA by recruiting additional sales and marketing personnel | 16.0% | 136.1 | — | — | 136.1 | — | Not Applicable | | Strengthening the commercialization of Tumor Treating Fields by recruiting key talent in relevant indication areas to support sales and future potential product launches | 8.0% | 68.1 | 7.3 | 4.3 | 65.1 | 3.0 | Through December 2025 | | Funding ongoing and planned clinical studies and preparatory registration filings for other pipeline candidates (especially late-stage candidates) | 20.6% | 174.9 | — | — | 174.9 | — | Not Applicable | | Exploring new global licensing and collaboration opportunities and introducing clinically validated global potential best-in-class/first-in-class assets that are synergistic with and aligned with the company's current product pipeline and expertise | 25.0% | 212.7 | 2.1 | 2.1 | 212.7 | — | Not Applicable | | Continuous investment and expansion of the company's internal R&D product pipeline and global talent recruitment and training | 7.0% | 59.6 | — | — | 59.6 | — | Not Applicable | | Funding working capital and other general corporate purposes | 10.0% | 85.1 | 30.7 | — | 54.4 | 30.7 | Through December 2027 | | **Total** | **100.0%** | **850.8** | **68.8** | **7.5** | **789.5** | **61.3** | | - The net proceeds from the November 2024 offering were approximately **USD 215 million**; as of June 30, 2025, **USD 143.3 million** has been utilized for general corporate purposes, primarily to advance pipeline candidates and product commercialization, with the remaining **USD 52 million** expected to be fully utilized by the end of 2025[138](index=138&type=chunk)[139](index=139&type=chunk)[140](index=140&type=chunk) [Differences in Accounting Standards and Review](index=58&type=section&id=Differences%20in%20Accounting%20Standards%20and%20Review) The company's financial statements are prepared under US GAAP and reviewed by the Audit Committee, with a reconciliation to IFRS provided, highlighting share-based compensation as a key difference, and KPMG performing a limited assurance engagement on the reconciliation - Financial statements are prepared in accordance with US Generally Accepted Accounting Principles (GAAP) and reviewed by the Audit Committee[141](index=141&type=chunk)[146](index=146&type=chunk) - The primary difference between US GAAP and International Financial Reporting Standards (IFRS) lies in the recognition method for share-based compensation (graded vesting versus straight-line, and forfeiture timing)[203](index=203&type=chunk)[204](index=204&type=chunk)[205](index=205&type=chunk) - KPMG performed a limited assurance engagement on the reconciliation statement, finding no material inconsistencies[144](index=144&type=chunk)[145](index=145&type=chunk)[148](index=148&type=chunk) [Subsequent Events After Reporting Period](index=61&type=section&id=Subsequent%20Events%20After%20Reporting%20Period) On August 6, 2025, the company entered into a new revolving credit facility with China Merchants Bank, replacing a previous expiring facility, increasing the maximum credit limit to RMB 500 million (approximately USD 69.6 million) for a two-year term - On August 6, 2025, the company entered into a new revolving credit facility with China Merchants Bank, replacing the previous RMB 250 million facility that expired in July 2025[207](index=207&type=chunk) - The new credit facility has a maximum limit of **RMB 500 million** (approximately **USD 69.6 million**) and is valid for two years[207](index=207&type=chunk) [Consolidated Financial Statements](index=62&type=section&id=Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including balance sheets, statements of operations, comprehensive loss, shareholders' equity, and cash flows [Unaudited Condensed Consolidated Balance Sheets](index=62&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, the company's total assets were USD 1.1641 billion, total liabilities were USD 372.4 million, and total shareholders' equity was USD 791.7 million, reflecting slight decreases in assets and equity and an increase in liabilities compared to December 31, 2024 Unaudited Condensed Consolidated Balance Sheets Overview (Thousand USD) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | 1,034,062 | 1,050,480 | | Total Assets | 1,164,101 | 1,185,753 | | Total Current Liabilities | 331,501 | 299,385 | | Total Liabilities | 372,366 | 344,855 | | Total Shareholders' Equity | 791,735 | 840,898 | [Unaudited Condensed Consolidated Statements of Operations](index=64&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) For the six months ended June 30, 2025, the company reported total revenue of USD 216.5 million, a net loss of USD 89.2 million, and basic and diluted loss per share of USD 0.08, indicating a significant reduction in net loss compared to the prior year period Unaudited Condensed Consolidated Statements of Operations Overview (Thousand USD) | Indicator | 2025 First Half | 2024 First Half | | :--- | :--- | :--- | | Total Revenue | 216,464 | 187,653 | | Operating Loss | (111,206) | (146,373) | | Net Loss | (89,165) | (133,748) | | Loss Per Share — Basic and Diluted | (0.08) | (0.14) | [Unaudited Condensed Consolidated Statements of Comprehensive Loss](index=65&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) For the six months ended June 30, 2025, the company's comprehensive loss was USD 93.3 million, comprising a net loss of USD 89.2 million and a foreign currency translation adjustment loss of USD 4.2 million Unaudited Condensed Consolidated Statements of Comprehensive Loss Overview (Thousand USD) | Indicator | 2025 First Half | 2024 First Half | | :--- | :--- | :--- | | Net Loss | (89,165) | (133,748) | | Foreign Currency Translation Adjustment | (4,167) | 5,147 | | **Comprehensive Loss** | **(93,332)** | **(128,601)** | [Unaudited Condensed Consolidated Statements of Shareholders' Equity](index=66&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Equity) As of June 30, 2025, the company's total shareholders' equity was USD 791.7 million, a decrease from USD 840.9 million at December 31, 2024, primarily due to net loss and foreign currency translation adjustments Unaudited Condensed Consolidated Statements of Shareholders' Equity Overview (Thousand USD) | Indicator | Balance as of June 30, 2025 | Balance as of December 31, 2024 | | :--- | :--- | :--- | | Common Stock Amount | 7 | 7 | | Additional Paid-in Capital | 3,308,491 | 3,264,295 | | Accumulated Deficit | (2,542,248) | (2,453,083) | | Accumulated Other Comprehensive Income | 46,348 | 50,515 | | Treasury Stock Amount | (20,863) | (20,836) | | **Total Shareholders' Equity** | **791,735** | **840,898** | [Unaudited Condensed Consolidated Statements of Cash Flows](index=67&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash used in operating activities was USD 92.7 million, net cash provided by investing activities was USD 323.2 million, and net cash provided by financing activities was USD 52.0 million, resulting in an increase in period-end cash, cash equivalents, and restricted cash to USD 833.4 million Unaudited Condensed Consolidated Statements of Cash Flows Overview (Thousand USD) | Indicator | 2025 First Half | 2024 First Half | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (92,723) | (132,279) | | Net Cash Provided by Investing Activities | 323,211 | 2,446 | | Net Cash Provided by Financing Activities | 51,990 | 69,870 | | Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash | 125 | (137) | | Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | 282,603 | (60,100) | | Cash, Cash Equivalents and Restricted Cash — End of Period | 833,384 | 731,164 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=69&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to the unaudited condensed consolidated financial statements, covering organizational information, accounting policies, and specific financial item breakdowns [1. Organization and Principal Business](index=69&type=section&id=1.%20Organization%20and%20Principal%20Business) Zai Lab Limited, established in the Cayman Islands on March 28, 2013, focuses on discovering, developing, and commercializing innovative products in oncology, immunology, neuroscience, and infectious diseases, with significant operations in Greater China and the US - Zai Lab Limited was incorporated in the Cayman Islands on March 28, 2013[159](index=159&type=chunk) - The company is dedicated to discovering, developing, and commercializing innovative products to address unmet medical needs in oncology, immunology, neuroscience, and infectious diseases[159](index=159&type=chunk) - Its principal business operations and geographic markets are located in Greater China, with substantial operations in Greater China and the United States[160](index=160&type=chunk) [2. Basis of Presentation and Consolidation and Significant Accounting Policies](index=69&type=section&id=2.%20Basis%20of%20Presentation%20and%20Consolidation%20and%20Significant%20Accounting%20Policies) The unaudited condensed consolidated financial statements are prepared under US GAAP, reflecting normal recurring adjustments and management's accounting estimates, with the company evaluating the impact of recently issued accounting pronouncements - The financial statements are prepared in accordance with US Generally Accepted Accounting Principles (GAAP) and reflect normal recurring adjustments necessary for fair presentation[161](index=161&type=chunk) - Management makes accounting estimates regarding rebates, R&D expense recognition, fair value of share-based compensation, realizability of deferred tax assets, and useful lives of intangible assets[162](index=162&type=chunk) - The company is evaluating the impact of ASU No. 2023-09 (Improvements to Income Tax Disclosures) and ASU No. 2024-03 (Disclosures by Public Entities about Expenses), expected to be adopted for the years ending December 31, 2025, and 2027, respectively[163](index=163&type=chunk)[164](index=164&type=chunk) [3. Cash and Cash Equivalents](index=71&type=section&id=3.%20Cash%20and%20Cash%20Equivalents) As of June 30, 2025, the company's total cash and cash equivalents were USD 732.2 million, primarily denominated in USD, with RMB-denominated balances subject to Chinese government foreign exchange controls Cash and Cash Equivalents (Thousand USD) | Currency | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | USD | 718,384 | 429,887 | | RMB | 12,167 | 18,979 | | HKD | 606 | 114 | | AUD | 536 | 522 | | TWD | 466 | 165 | | **Total** | **732,159** | **449,667** | - Cash and bank balances denominated in RMB are deposited in banks in mainland China, and their conversion into foreign currency is subject to foreign exchange control rules and regulations promulgated by the Chinese government[166](index=166&type=chunk) [4. Accounts Receivable](index=72&type=section&id=4.%20Accounts%20Receivable) As of June 30, 2025, the company's net accounts receivable totaled USD 88.5 million, predominantly aged within three months, with strict controls and regular reviews in place to manage uncollected receivables, and no significant historical credit losses Accounts Receivable, Net (Thousand USD) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Accounts Receivable, Gross | 88,525 | 85,203 | | Provision for Credit Losses | (26) | (25) | | **Accounts Receivable, Net** | **88,499** | **85,178** | Accounts Receivable Aging Analysis (Thousand USD) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 3 Months | 88,474 | 85,167 | | 3 to 6 Months | 25 | 11 | | **Total** | **88,499** | **85,178** | [5. Inventories, Net](index=72&type=section&id=5.%20Inventories,%20Net) As of June 30, 2025, the company's net inventories were USD 61.7 million, primarily consisting of finished goods and raw materials, with a **USD 0.3 million** write-down recorded in the first half of 2025 for excess, obsolete, or net realizable value below cost Inventories, Net Composition (Thousand USD) | Inventory Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Finished Goods | 36,534 | 24,063 | | Raw Materials | 21,232 | 13,268 | | Work-in-Progress | 3,934 | 2,544 | | **Inventories, Net** | **61,700** | **39,875** | - For the six months ended June 30, 2025, the company recorded inventory write-downs of **USD 0.3 million** included in cost of product revenue[169](index=169&type=chunk) [6. Property and Equipment, Net](index=73&type=section&id=6.%20Property%20and%20Equipment,%20Net) As of June 30, 2025, the company's net property and equipment totaled USD 50.2 million, primarily comprising laboratory equipment, production equipment, and buildings, with depreciation expense of USD 4.3 million for the first half of 2025 Property and Equipment, Net Composition (Thousand USD) | Category | June 30, 2025 Net Book Value | December 31, 2024 Net Book Value | | :--- | :--- | :--- | | Office Equipment | 1,237 | 1,230 | | Electronic Equipment | 9,279 | 9,211 | | Laboratory Equipment | 20,444 | 20,516 | | Production Equipment | 17,573 | 17,493 | | Buildings | 24,150 | — | | Construction in Progress | 1,242 | 25,129 | | **Property and Equipment, Net** | **50,160** | **47,961** | - For the six months ended June 30, 2025, depreciation expense was **USD 4.3 million**[170](index=170&type=chunk) [7. Intangible Assets, Net](index=73&type=section&id=7.%20Intangible%20Assets,%20Net) As of June 30, 2025, the company's net intangible assets were USD 56.5 million, primarily composed of commercial product-related assets and software, with a weighted average remaining amortization period of 9.2 years for commercial product assets and 2.8 years for software, and amortization expense of USD 2.9 million for the first half of 2025 Intangible Assets, Net Composition (Thousand USD) | Category | June 30, 2025 Net Book Value | December 31, 2024 Net Book Value | | :--- | :--- | :--- | | Commercial Products | 55,265 | 54,467 | | Software | 1,254 | 1,560 | | **Total** | **56,519** | **56,027** | - For the six months ended June 30, 2025, amortization expense was **USD 2.9 million**[172](index=172&type=chunk) - The weighted average remaining amortization period for commercial product-related intangible assets is **9.2 years**, and for software is **2.8 years**[172](index=172&type=chunk) [8. Accounts Payable](index=74&type=section&id=8.%20Accounts%20Payable) As of June 30, 2025, the company's total accounts payable amounted to USD 107.4 million, with the vast majority (USD 106.9 million) aged within three months, and these payables are non-interest bearing and repayable within the normal operating cycle Accounts Payable Aging Analysis (Thousand USD) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 3 Months | 106,870 | 100,456 | | 3 to 6 Months | 190 | 145 | | 6 Months to 1 Year | 56 | 23 | | Over 1 Year | 241 | 282 | | **Total** | **107,357** | **100,906** | [9. Revenue](index=74&type=section&id=9.%20Revenue) For the six months ended June 30, 2025, the company's product net revenue was USD 214.7 million and collaboration revenue was USD 1.7 million, with product revenue primarily derived from commercial product sales in Greater China, led by ZEJULA, VYVGART/VYVGART Hytrulo, and NUZYRA Gross and Net Product Revenue (Thousand USD) | Indicator | 2025 First Half | 2024 First Half | | :--- | :--- | :--- | | Product Revenue — Gross | 228,863 | 199,723 | | Less: Rebates and Sales Returns | (14,128) | (12,468) | | **Product Revenue — Net** | **214,735** | **187,255** | Net Revenue by Commercial Product (Thousand USD) | Commercial Product | 2025 First Half | 2024 First Half | | :--- | :--- | :--- | | ZEJULA | 90,571 | 90,500 | | VYVGART/VYVGART Hytrulo | 44,602 | 36,352 | | NUZYRA | 29,410 | 22,208 | | OPTUNE | 23,718 | 25,064 | | QINLOCK | 17,045 | 13,131 | | TYVYT | 5,739 | — | | ONKAS | 3,025 | — | | Other | 625 | — | | **Product Revenue — Net** | **214,735** | **187,255** | - Collaboration revenue, primarily related to promotional activities in mainland China, was **USD 1.7 million** for the first half of 2025, a significant increase from the prior year period[176](index=176&type=chunk) [10. Income Taxes](index=75&type=section&id=10.%20Income%20Taxes) No income tax provision was recorded for the reporting period due to the company's accumulated loss position, and a full valuation allowance has been recorded against deferred tax assets for all consolidated entities - No income tax provision was recorded for the reporting period due to the company's accumulated loss position[177](index=177&type=chunk) - The company recorded a full valuation allowance against deferred tax assets for all consolidated entities[177](index=177&type=chunk) [11. Loss Per Share](index=76&type=section&id=11.%20Loss%20Per%20Share) For the six months ended June 30, 2025, the company's basic and diluted loss per share was USD 0.08, an improvement from USD 0.14 in the prior year period, with anti-dilutive effects of share options and unvested restricted shares excluded from diluted loss per share calculation due to the net loss position Calculation of Basic and Diluted Net Loss Per Share (Thousand USD, except for share and per share data) | Indicator | 2025 First Half | 2024 First Half | | :--- | :--- | :--- | | Net Loss | (89,165) | (133,748) | | Weighted Average Number of Common Shares — Basic and Diluted | 1,086,413,130 | 974,541,780 | | **Net Loss Per Share — Basic and Diluted** | **(0.08)** | **(0.14)** | - Due to the company incurring a net loss, outstanding share options and unvested restricted shares were excluded from the calculation of diluted loss per share for the relevant periods, as their inclusion would have been anti-dilutive[178](index=178&type=chunk) [12. Borrowings](index=76&type=section&id=12.%20Borrowings) As of June 30, 2025, the company's total short-term borrowings amounted to USD 174.5 million, with a weighted average annual interest rate of 2.66%, primarily from Chinese banks to support working capital needs in mainland China Short-Term Borrowings (As of June 30, 2025, Thousand USD) | Bank | Weighted Average Annual Interest Rate | Amount (Thousand USD) | | :--- | :--- | :--- | | Bank of China Working Capital Loan | 2.42% | 48,891 | | SPD Bank Working Capital Loan | 2.80% | 41,908 | | China Merchants Bank Working Capital Loan | 2.87% | 34,895 | | Bank of Communications Working Capital Loan | 2.75% | 41,908 | | Bank of Ningbo Discounted Bills | 1.90% | 6,907 | | **Total Short-Term Borrowings** | **2.66%** | **174,509** | - The company has entered into debt arrangements with several Chinese financial institutions to support its working capital needs in mainland China[180](index=180&type=chunk) - The Bank of China working capital loan is secured by **USD 100 million** in restricted deposits[181](index=181&type=chunk) [13. Other Current Liabilities](index=78&type=section&id=13.%20Other%20Current%20Liabilities) As of June 30, 2025, the company's total other current liabilities were USD 44.1 million, primarily comprising accrued payroll, accrued distributor rebates, and taxes payable Other Current Liabilities Composition (Thousand USD) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Accrued Payroll | 18,004 | 30,198 | | Accrued Professional Service Fees | 3,532 | 5,728 | | Payables for Property and Equipment | 2,498 | 449 | | Accrued Distributor Rebates | 10,453 | 10,839 | | Taxes Payable | 4,762 | 5,154 | | Other | 4,802 | 6,352 | | **Total** | **44,051** | **58,720** | [14. Related Party Transactions](index=78&type=section&id=14.%20Related%20Party%20Transactions) In January 2025, the company entered into a licensing agreement with Zenas for the development and commercialization of an IGF-1R targeted product in Greater China, with a **USD 10 million** upfront payment recognized as R&D expense and potential future milestone payments of up to **USD 117 million** - In January 2025, the company entered into a licensing agreement with Zenas to obtain rights for the development and commercialization of an IGF-1R targeted product in Greater China[187](index=187&type=chunk) - Mr. Moulder, a member of the company's Board of Directors, also serves as the Chairman and Chief Executive Officer of Zenas[187](index=187&type=chunk) - The company recognized a **USD 10.0 million** upfront payment as R&D expense, with potential future development and sales-based milestone payments of up to **USD 117 million**[187](index=187&type=chunk) [15. Share-Based Compensation](index=78&type=section&id=15.%20Share-Based%20Compensation) For the six months ended June 30, 2025, the company granted options to purchase 7,134,210 ordinary shares and restricted stock representing 7,361,810 ordinary shares under its equity incentive plans, with total share-based compensation expense of USD 32.77 million - For the six months ended June 30, 2025, the company granted options to purchase up to **7,134,210 ordinary shares** and restricted stock representing **7,361,810 ordinary shares**[188](index=188&type=chunk) Share-Based Compensation Expense (Thousand USD) | Category | 2025 First Half | 2024 First Half | | :--- | :--- | :--- | | Selling, General and Administrative | 21,470 | 21,456 | | Research and Development | 11,303 | 15,162 | | **Total** | **32,773** | **36,618** | - As of June 30, 2025, unrecognized share-based compensation expense related to unvested share options and unvested restricted shares was **USD 64.7 million** and **USD 75.4 million**, respectively, expected to be recognized over **2.52 years** and **2.46 years**[189](index=189&type=chunk) [16. License and Collaboration Agreements](index=79&type=section&id=16.%20License%20and%20Collaboration%20Agreements) The company has various licensing and collaboration agreements for product development and commercialization; for the six months ended June 30, 2025, no new material agreements or milestone fees were incurred, though **USD 20 million** in upfront payments for other non-material agreements was recognized as R&D expense - For the six months ended June 30, 2025, the company did not enter into any new material license or collaboration agreements, nor did it incur any milestone fees under existing material license and collaboration agreements[191](index=191&type=chunk) - For the six months ended June 30, 2025, the company recognized **USD 20.0 million** in upfront payments as R&D expense for individually non-material license and collaboration agreements[192](index=192&type=chunk) [17. Other Income, Net](index=80&type=section&id=17.%20Other%20Income,%20Net) For the six months ended June 30, 2025, the company's net other income was USD 3.6 million, primarily from government grants and a reduced loss on equity investments in MacroGenics Other Income, Net (Thousand USD) | Category | 2025 First Half | 2024 First Half | | :--- | :--- | :--- | | Government Grants | 3,866 | 3,325 | | Loss on Equity Investments at Fair Value Through Profit or Loss | (1,912) | (5,147) | | Other Miscellaneous Income | 1,599 | 2,240 | | **Total** | **3,553** | **418** | [18. Net Assets Restricted](index=80&type=section&id=18.%20Net%20Assets%20Restricted) Chinese laws and regulations restrict the company's ability to receive fund distributions from its Chinese subsidiaries, including statutory reserve requirements and foreign exchange controls, with **USD 506 million** in restricted paid-in capital as of June 30, 2025 - Chinese laws and regulations restrict the company's ability to receive fund distributions from its Chinese subsidiaries, including statutory reserve fund requirements and foreign exchange controls[194](index=194&type=chunk) - As of June 30, 2025, the restricted amount included in the paid-in capital of the company's subsidiaries in mainland China was **USD 506.0 million**[194](index=194&type=chunk) [19. Commitments and Contingencies](index=81&type=section&id=19.%20Commitments%20and%20Contingencies) As of June 30, 2025, the company had **USD 1.1 million** in purchase commitments related to commercial production development and capital expenditures, expected to be incurred within one year, and was not a party to any significant legal proceedings or claims - As of June 30, 2025, the company had contracted but not yet reflected in the unaudited condensed consolidated financial statements **USD 1.1 million** in commitments related to commercial production development activities and capital expenditures[195](index=195&type=chunk) - The company is not currently a party to any material legal proceedings and has not paid any claims[196](index=196&type=chunk)[197](index=197&type=chunk) [20. Segment Information](index=81&type=section&id=20.%20Segment%20Information) The company operates as a single operating segment, focusing on the discovery, development, and commercialization of products in oncology, immunology, neuroscience, and infectious diseases, with the CEO assessing performance and allocating resources based on consolidated expenses and net income - The company operates as a single operating segment, engaged in discovering, developing, and commercializing products to address significant unmet medical needs in oncology, immunology, neuroscience, and infectious diseases[198](index=198&type=chunk) - The Chief Executive Officer, as the chief operating decision maker, assesses performance and allocates resources based on significant expenses and net income on a consolidated basis[198](index=198&type=chunk) Classified Expenses (Thousand USD) | Category | 2025 First Half | 2024 First Half | | :--- | :--- | :--- | | Total Research and Development Expenses | 111,343 | 116,270 | | Total Selling, General and Administrative Expenses | 134,460 | 148,904 | [21. Reconciliation of US GAAP to IFRS](index=83&type=section&id=21.%20Reconciliation%20of%20US%20GAAP%20to%20IFRS) The company's financial statements are prepared under US GAAP, with a reconciliation to IFRS provided, primarily highlighting differences in share-based compensation recognition, while lease accounting differences are not material Consolidated Statements of Operations Reconciliation (For the Six Months Ended June 30, 2025, Thousand USD) | Indicator | Amount Reported Under US GAAP | IFRS Adjustment (Share-Based Compensation) | Amount Reported Under IFRS | | :--- | :--- | :--- | :--- | | Research and Development Expenses | (111,343) | 4,727 | (106,616) | | Selling, General and Administrative Expenses | (134,460) | 711 | (133,749) | | Net Loss | (89,165) | 5,438 | (83,727) | Consolidated Balance Sheets Reconciliation (As of June 30, 2025, Thousand USD) | Indicator | Amount Reported Under US GAAP | IFRS Adjustment (Share-Based Compensation) | Amount Reported Under IFRS | | :--- | :--- | :--- | :--- | | Additional Paid-in Capital | 3,308,491 | 43,601 | 3,352,092 | | Accumulated Deficit | (2,542,248) | (43,601) | (2,585,849) | | Total Shareholders' Equity | 791,735 | — | 791,735 | - Under US GAAP, the company has elected to recognize compensation expense for graded vesting awards granted to employees using the straight-line method; under IFRS, compensation expense must be recognized using the graded vesting method[203](index=203&type=chunk)[204](index=204&type=chunk) - Based on the company's assessment, the lease differences recognized under US GAAP and IFRS do not have a material impact on the condensed consolidated financial statements[206](index=206&type=chunk) [22. Subsequent Events](index=86&type=section&id=22.%20Subsequent%20Events) On August 6, 2025, the company signed a new two-year revolving credit facility with China Merchants Bank, increasing the maximum credit limit to RMB 500 million (approximately USD 69.6 million), replacing the previous RMB 250 million facility that expired in July 2025 - On August 6, 2025, the company signed a new revolving credit facility with China Merchants Bank, replacing the previous RMB 250 million credit facility that expired in July 2025[207](index=207&type=chunk) - The new credit facility has a maximum limit of **RMB 500 million** (approximately **USD 69.6 million**) and is valid for two years[207](index=207&type=chunk) [Glossary](index=87&type=section&id=Glossary) This section provides definitions for acronyms and defined terms used throughout the report, covering professional terminology across pharmaceutical, financial, regulatory, and corporate governance domains [Definitions of Terms](index=87&type=section&id=Definitions%20of%20Terms) This glossary includes acronyms and defined terms used in this report to aid reader comprehension - The glossary includes acronyms and defined terms used in this report[209](index=209&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部分內容所產生或 因依賴該等內容而引致的任何損失承擔任何責任。 Jinxin Fertility Group Limited 錦 欣 生 殖 醫 療 集 團 有 限 公 司* （根據開曼群島法律註冊成立的有限公司） （股份代號：1951） 截至2025年6月30日止六個月 的業績公告 財務摘要 – 1 – ‧ 本集團截至2025年6月30日止六個月的收益約為人民幣1,288.6百萬元， 而截至2024年6月30日止六個月的收益約為人民幣1,443.8百萬元，較之 減少10.7%。 ‧ 本集團截至2025年6月30日止六個月的淨虧損約為人民幣1,044.1百萬元， 而截至2024年6月30日止六個月的本集團淨利潤約為人民幣190.3百萬元。 本集團截至2025年6月30日止六個月的擁有人應佔虧損約為人民幣1,039.9 百萬元，而截至2024年6月30日止六個月的本集團擁有人應佔利潤約為 人民幣189.7百萬元。 ‧ 本集團截至2025年6月30日止六個月的非國際財務 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準 確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產 生或因倚賴該等內容而引致的任何損失承擔任何責任。 XIMEI RESOURCES HOLDING LIMITED 稀 美 資 源 控 股 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：9936） 截至二零二五年六月三十日止六個月的中期業績公告 | 財務摘要 | | | | | | | --- | --- | --- | --- | --- | --- | | | | | 截至六月三十日止六個月 | | 變動增加╱ | | | | 二零二五 | 年 | 二零二四 年 | （減少） | | | | 人民幣千元 | | 人民幣千元 | | | | | （未經審核） | | （未經審核） | | | 財務摘要 | | | | | | | 收 益 | | | 954,200 | 902,593 | 5.7% | | 銷售成本 | | | (727,878) | (712,017) | 2.2% | | 毛 利 | | | 226,322 | 19 ...

[2025 Interim Results Highlights](index=1&type=section&id=二零二五年中期業績摘要) [Financial Highlights](index=1&type=section&id=財務摘要) The company achieved significant financial growth in the first half of 2025, with revenue increasing by 63.7% year-on-year and a successful turnaround to profit, with profit attributable to owners of the company reaching RMB 1,316 thousands Financial Performance Summary | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 90,959 | 55,560 | 63.7 | | Gross Profit | 57,974 | 39,064 | 48.4 | | Profit/(Loss) Before Income Tax | 1,388 | (6,746) | — | | Profit/(Loss) Attributable to Owners of the Company | 1,316 | (4,743) | — | | Basic and Diluted Earnings/(Loss) Per Share (RMB yuan) | 0.01/0.01 | (0.05)/(0.05) | — | [Interim Results](index=2&type=section&id=中期業績) [Condensed Consolidated Statement of Comprehensive Income](index=2&type=section&id=中期簡明綜合全面收益表) In the first half of 2025, the Group's revenue significantly increased, successfully achieving profitability and reversing the loss from the same period last year, with notable improvements in gross profit and financial income, alongside increased R&D expenses Condensed Consolidated Statement of Comprehensive Income | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 90,959 | 55,560 | | Cost of Sales | (32,985) | (16,496) | | Gross Profit | 57,974 | 39,064 | | Other Income | 14,580 | 13,482 | | Net Other Gains/(Losses) | 544 | (449) | | Selling and Marketing Expenses | (4,260) | (5,179) | | General and Administrative Expenses | (17,714) | (14,850) | | Research and Development Expenses | (54,461) | (41,106) | | Reversal of Impairment Loss on Financial and Contract Assets | 3,004 | 1,931 | | Operating Loss | (333) | (7,107) | | Share of Profit/(Loss) of Investments Accounted for Using Equity Method | 34 | (662) | | Finance Income | 4,316 | 1,707 | | Finance Costs | (2,629) | (684) | | Profit/(Loss) Before Income Tax | 1,388 | (6,746) | | Income Tax (Expense)/Credit | (999) | 2,147 | | Profit/(Loss) for the Period | 389 | (4,599) | | Profit/(Loss) Attributable to Owners of the Company | 1,316 | (4,743) | | Non-controlling Interests | (927) | 144 | | Total Comprehensive Income/(Loss) for the Period | 122 | (4,599) | Earnings Per Share | Metric | 2025 (RMB yuan) | 2024 (RMB yuan) | | :--- | :--- | :--- | | Basic Earnings/(Loss) Per Share | 0.01 | (0.05) | | Diluted Earnings/(Loss) Per Share | 0.01 | (0.05) | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=中期簡明綜合資產負債表) As of June 30, 2025, the Group's total assets significantly increased, primarily driven by an increase in financial assets at fair value through profit or loss and cash and cash equivalents within current assets, while total liabilities decreased and shareholders' equity substantially improved Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | **ASSETS** | | | | Total Non-current Assets | 220,291 | 172,251 | | Total Current Assets | 748,862 | 495,709 | | **TOTAL ASSETS** | **969,153** | **667,960** | | **EQUITY** | | | | Equity Attributable to Owners of the Company | 884,040 | 553,578 | | Non-controlling Interests | 3,203 | 4,130 | | **TOTAL EQUITY** | **887,243** | **557,708** | | **LIABILITIES** | | | | Total Non-current Liabilities | 41,002 | 44,775 | | Total Current Liabilities | 40,908 | 65,477 | | **TOTAL LIABILITIES** | **81,910** | **110,252** | | **TOTAL EQUITY AND LIABILITIES** | **969,153** | **667,960** | [Notes](index=6&type=section&id=附註) [General Information](index=6&type=section&id=一般資料) Beijing Saimo Technology Co., Ltd. was established in Beijing, China in 2014, restructured into a joint-stock company in 2022, and listed on the Main Board of the Hong Kong Stock Exchange on January 15, 2025, primarily providing ICV testing, verification, and evaluation solutions - The company was incorporated in Beijing, China on January 24, 2014, and restructured into a joint-stock company on November 8, 2022[7](index=7&type=chunk) - The company and its subsidiaries (the Group) are primarily engaged in providing Intelligent Connected Vehicle (ICV) testing, verification, and evaluation solutions in China[7](index=7&type=chunk) - The company completed its initial public offering on January 15, 2025, with its ordinary shares listed on the Main Board of the Hong Kong Stock Exchange[7](index=7&type=chunk) [Basis of Preparation and Accounting Policies](index=6&type=section&id=編製基準及會計政策) This condensed consolidated interim financial information is prepared in accordance with International Accounting Standard 34 and should be read in conjunction with the 2024 annual consolidated financial statements, with the Group's initial application of IAS 21 amendments expected to have no significant impact - The condensed consolidated interim financial information is prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting"[9](index=9&type=chunk) - The Group has first applied "Amendments to IAS 21 – Lack of Exchangeability" for the reporting period beginning January 1, 2025, with no significant impact expected on prior or future periods[10](index=10&type=chunk) - Among the standards not yet adopted, International Financial Reporting Standard 18 may primarily affect the presentation of the consolidated statement of comprehensive income[13](index=13&type=chunk) [New and Revised Standards Adopted by the Group](index=6&type=section&id=本集團採納之新訂及經修訂準則) The Group has first applied "Amendments to IAS 21 – Lack of Exchangeability" for the reporting period beginning January 1, 2025, with no significant impact expected on prior or future periods - The Group has first applied "Amendments to IAS 21 – Lack of Exchangeability" for the reporting period beginning January 1, 2025, with no significant impact expected on prior or future periods[10](index=10&type=chunk) [New and Revised Standards and Interpretations Not Yet Adopted](index=7&type=section&id=尚未獲採納的新訂及經修訂準則及詮釋) The Group has not early adopted certain new and revised accounting standards and amendments issued but not yet mandatorily effective for the reporting period ended June 30, 2025, with IFRS 18 potentially impacting the presentation of the consolidated statement of comprehensive income - The Group has not early adopted certain new and revised accounting standards and amendments that have been issued but are not yet mandatorily effective for the reporting period ended June 30, 2025[11](index=11&type=chunk) - Preliminary assessment indicates that the adoption of these new and revised standards is not expected to have a significant impact on the Group's performance and financial position, except that IFRS 18 may primarily affect the presentation of the Group's consolidated statement of comprehensive income[13](index=13&type=chunk) [Segment Information](index=7&type=section&id=分部資料) The Group's business activities are concentrated in ICV testing, verification, and evaluation in China, with the Board of Directors reviewing consolidated results as the chief operating decision maker, resulting in only one reportable segment where all non-current assets and revenue originate from China - The Group's business activities involve testing, verifying, and evaluating the functionality, compatibility, safety, reliability, and comfort of ICVs in China[14](index=14&type=chunk) - The Group has only one reportable segment, with all non-current assets and revenue located in China[14](index=14&type=chunk) [Revenue](index=8&type=section&id=收益) In the first half of 2025, the Group's total revenue reached RMB 90,959 thousands, primarily contributed by ICV simulation testing software and platforms, ICV data platforms and other products, and consulting and other services Revenue by Product and Service | Products and Services | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | ICV Simulation Testing Software and Platforms | 49,073 | 31,321 | | ICV Data Platforms and Other Products | 19,331 | 10,903 | | ICV Testing and Related Services | 9,310 | 6,638 | | Consulting and Other Services | 13,245 | 6,698 | | **Total Revenue** | **90,959** | **55,560** | Revenue Recognition Timing | Timing of Revenue Recognition | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | At a point in time | 90,507 | 54,830 | | Over time | 452 | 730 | | **Total Revenue** | **90,959** | **55,560** | [Other Income](index=8&type=section&id=其他收入) In the first half of 2025, the Group's other income increased to RMB 14,580 thousands, primarily driven by an increase in government grants, partially offset by a decrease in VAT refunds Other Income Breakdown | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Government grants | 14,521 | 10,335 | | VAT refunds | – | 1,621 | | Others | 59 | 1,526 | | **Total** | **14,580** | **13,482** | - Government grants primarily relate to subsidies for the Group's contributions to government technology development, with no unfulfilled conditions or contingencies[19](index=19&type=chunk) [Income Tax Expense/(Credit)](index=9&type=section&id=所得稅開支╱（抵免）) In the first half of 2025, the Group's income tax shifted from a credit in the prior year to an expense of RMB 999 thousands, primarily due to the reversal of deferred tax liabilities and assets, with the company and some subsidiaries benefiting from preferential corporate income tax rates and R&D expense super deduction policies Income Tax Expense/(Credit) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current income tax | – | – | | Deferred income tax | 999 | (2,147) | | **Income tax expense/(credit)** | **999** | **(2,147)** | - The company is recognized as a key software enterprise, enjoying a preferential corporate income tax rate of **10%** from January 1, 2024[22](index=22&type=chunk) - Effective January 1, 2023, the pre-tax deduction rate for enterprise R&D expenses is **100%**[22](index=22&type=chunk) [Earnings/(Loss) Per Share](index=10&type=section&id=每股盈利╱（虧損）) In the first half of 2025, the company achieved a turnaround to profit with basic and diluted earnings per share of RMB 0.01, compared to a loss per share of RMB 0.05 in the same period last year, with the weighted average number of ordinary shares increasing due to the listing Basic Earnings/(Loss) Per Share | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Profit/(Loss) attributable to owners of the Company (RMB thousands) | 1,316 | (4,743) | | Weighted average number of ordinary shares (thousands of shares) | 129,006 | 98,450 | | Basic earnings/(loss) per share (RMB yuan) | 0.01 | (0.05) | Diluted Earnings/(Loss) Per Share | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Weighted average number of ordinary shares used in calculating basic earnings per share (thousands of shares) | 129,006 | 98,450 | | Dilutive effect: Restricted share units (thousands of units) | 1,402 | – | | Adjusted weighted average number of ordinary shares used in calculating diluted earnings per share (thousands of shares) | 130,408 | 98,450 | | Diluted earnings/(loss) per share (RMB yuan) | 0.01 | (0.05) | - As a loss was recorded in the first half of 2024, restricted share units had an anti-dilutive effect and were therefore not included in the diluted loss per share[26](index=26&type=chunk) [Basic](index=10&type=section&id=基本) In the first half of 2025, the company achieved a basic earnings per share of RMB 0.01, a significant improvement from the loss of RMB 0.05 per share in the prior year, with an increased weighted average number of ordinary shares Basic Earnings/(Loss) Per Share | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit/(Loss) attributable to owners of the Company | 1,316 | (4,743) | | Weighted average number of ordinary shares (thousands of shares) | 129,006 | 98,450 | | Basic earnings/(loss) per share (RMB yuan) | 0.01 | (0.05) | [Diluted](index=11&type=section&id=攤薄) In the first half of 2025, the company reported diluted earnings per share of RMB 0.01, a turnaround from the RMB 0.05 loss per share in the previous year, reflecting the impact of restricted share units on the adjusted weighted average number of ordinary shares Diluted Earnings/(Loss) Per Share | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit/(Loss) attributable to owners of the Company | 1,316 | (4,743) | | Weighted average number of ordinary shares used in calculating basic earnings per share (thousands of shares) | 129,006 | 98,450 | | Dilutive effect: Restricted share units (thousands of units) | 1,402 | – | | Adjusted weighted average number of ordinary shares used in calculating diluted earnings per share (thousands of shares) | 130,408 | 98,450 | | Diluted earnings/(loss) per share (RMB yuan) | 0.01 | (0.05) | [Financial Assets at Fair Value Through Profit or Loss](index=11&type=section&id=按公允值計入損益的金融資產) As of June 30, 2025, the Group's financial assets at fair value through profit or loss significantly increased, primarily driven by short-term wealth management products, generating a fair value gain of RMB 561 thousands during the period Classification of Financial Assets at Fair Value Through Profit or Loss | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Unlisted equity securities (Non-current) | 28,731 | 28,731 | | Wealth management products (Current) | 234,855 | 7,029 | Amounts Recognized in Profit or Loss | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Fair value gains on financial assets at fair value through profit or loss recognized in other gains | 561 | (448) | [Classification of Financial Assets at Fair Value Through Profit or Loss](index=11&type=section&id=按公允值計入損益的金融資產之分類) As of June 30, 2025, the Group's financial assets at fair value through profit or loss primarily consisted of unlisted equity securities and a significant increase in current wealth management products Classification of Financial Assets at Fair Value Through Profit or Loss | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Unlisted equity securities (Non-current) | 28,731 | 28,731 | | Wealth management products (Current) | 234,855 | 7,029 | [Amounts Recognized in Profit or Loss](index=12&type=section&id=於損益確認的金額) In 2025, the Group recognized a fair value gain of RMB 561 thousands from financial assets at fair value through profit or loss, a positive shift from a loss in the prior year Amounts Recognized in Profit or Loss | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Fair value gains on financial assets at fair value through profit or loss recognized in other gains | 561 | (448) | [Trade and Bills Receivables](index=12&type=section&id=貿易應收款項及應收票據) As of June 30, 2025, the Group's total trade and bills receivables decreased to RMB 163,071 thousands, primarily due to the collection of a significant amount of receivables, with the majority of receivables falling within 6 months Trade and Bills Receivables | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade receivables | 162,200 | 177,675 | | Bills receivables | 871 | 13,622 | | **Total** | **163,071** | **191,297** | Aging of Trade and Bills Receivables | Aging | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 6 months | 128,249 | 143,211 | | 6 months to 1 year | 7,204 | 24,125 | | 1 to 2 years | 21,728 | 19,230 | | Over 2 years | 12,128 | 13,873 | | **Total** | **169,309** | **200,439** | Loss Allowance for Trade and Bills Receivables | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Loss allowance at beginning of period | (9,142) | (8,818) | | Reversal of loss allowance | 2,904 | 2,022 | | Loss allowance at end of period | (6,238) | (6,796) | [Trade and Bills Payables](index=13&type=section&id=貿易應付款項及應付票據) As of June 30, 2025, the Group's total trade and bills payables slightly increased to RMB 6,234 thousands, primarily denominated in RMB with similar fair values Trade and Bills Payables | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade payables | 5,032 | 5,136 | | Bills payables | 1,202 | 577 | | **Total** | **6,234** | **5,713** | Aging of Trade and Bills Payables | Aging | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 3 months | 3,507 | 3,465 | | Over 6 months | 2,727 | 2,248 | | **Total** | **6,234** | **5,713** | [Dividends](index=14&type=section&id=股息) No dividends were paid or declared by the Group or any of its companies for the six months ended June 30, 2025 - For the six months ended June 30, 2025, no dividends were paid or declared by the Group or any of its companies (2024: nil)[31](index=31&type=chunk) [Management Discussion and Analysis](index=15&type=section&id=管理層討論及分析) [Business Review](index=15&type=section&id=業務回顧) As a leading ICV simulation testing technology company in China, the Group focuses on R&D of ICV simulation testing products and related solutions, expanding into emerging fields like intelligent manufacturing and low-altitude economy, while actively pursuing domestic and international market opportunities through strategic partnerships and continuous investment in AI large models - The Group is a technology company in China specializing in Intelligent Connected Vehicle (ICV) simulation testing technology, primarily engaged in the design and R&D of ICV simulation testing products and providing related testing, verification, and evaluation solutions[32](index=32&type=chunk) - The Group primarily offers ICV simulation testing software and platforms, ICV data platforms and other products, ICV testing and related services, and consulting and other services[32](index=32&type=chunk) - The Group is expanding its business into emerging fields such as intelligent manufacturing and the low-altitude economy, and has formed strategic partnerships with AutoNavi Software Co., Ltd. and SGS-CSTC Standards Technical Services (Shanghai) Co., Ltd. to jointly explore global ICV market opportunities[34](index=34&type=chunk) - The Group continues to increase investment in cutting-edge technologies such as AI large models, continuously enhancing its intelligent simulation testing and big data analysis capabilities[34](index=34&type=chunk) [Market Overview](index=15&type=section&id=市場概覽) Driven by government support and growing consumer demand, the ICV industry is rapidly developing, leading to a continuous increase in demand for ICV simulation testing technology, positioning the Group to steadily expand its business and achieve sustainable growth through its technological advantages and market position - The ICV industry is experiencing rapid growth, with technological advancements and widespread adoption leading to a continuous increase in demand for ICV simulation testing technology[35](index=35&type=chunk) - As a leading enterprise, the Group possesses strong technological advantages and market position, and is expected to steadily expand its business, seize market opportunities, and achieve sustainable growth[35](index=35&type=chunk) [Overall Business Performance](index=16&type=section&id=業務整體表現) During the reporting period, the Group's operating revenue increased by 63.7% year-on-year to approximately RMB 91.0 millions, successfully achieving a turnaround to profit with profit attributable to owners of the company reaching RMB 1.3 millions, driven by optimized solutions, increased innovation investment, and enhanced ICV technology development and market acceptance - During the reporting period, the Group achieved operating revenue of approximately **RMB 91.0 millions**, representing a **63.7%** increase compared to the same period in 2024[37](index=37&type=chunk) - Profit attributable to owners of the company turned from a loss of **RMB 4.7 millions** in the same period of 2024 to a profit of **RMB 1.3 millions**[37](index=37&type=chunk) - The performance growth is attributed to continuous optimization and upgrading of existing solutions, increased investment in innovation, and the development of intelligent driving technology and increased acceptance of ICVs in China[37](index=37&type=chunk) [Business Performance by Product/Service Type](index=16&type=section&id=分產品╱服務類型的業務表現) The Group achieved growth across all four major business segments: ICV simulation testing software and platforms, ICV data platforms and other products, ICV testing and related services, and consulting and other services, with ICV data platforms and other products experiencing the fastest revenue growth at 77.3%, continuously enhancing market competitiveness through technological upgrades, customer expansion, and customized solutions [ICV Simulation Testing Software and Platforms, ICV Data Platforms and Other Products](index=16&type=section&id=ICV仿真測試軟件及平台、ICV數據平台及其他產品) Revenue from ICV simulation testing software and platforms increased by 56.7% year-on-year to RMB 49.1 millions, with SaaS solutions well-received by customers, while ICV data platforms and other products saw a 77.3% year-on-year revenue increase to RMB 19.3 millions, successfully expanding to multiple key customers and optimizing data platform functionalities - Revenue from ICV simulation testing software and platforms was approximately **RMB 49.1 millions**, a year-on-year increase of **56.7%**[39](index=39&type=chunk) - In terms of ICV simulation testing platforms, the Group achieved significant success in customer expansion, establishing long-term partnerships with several renowned automotive manufacturers and technology companies[40](index=40&type=chunk) - Revenue from ICV data platforms and other products was approximately **RMB 19.3 millions**, a year-on-year increase of **77.3%**[41](index=41&type=chunk) - The Group has participated in building ICV data platforms in multiple cities across China and successfully expanded to several key customers[41](index=41&type=chunk)[42](index=42&type=chunk) [ICV Testing and Related Services, and Consulting and Other Services](index=17&type=section&id=ICV測試及相關服務，及顧問及其他服務) Revenue from ICV testing and related services was approximately RMB 9.3 millions, offering customized solutions including simulation testing, closed-field testing, and platform operation and maintenance, while consulting and other services revenue increased by 97.7% year-on-year to RMB 13.2 millions, primarily assisting clients with ICV regulatory compliance and organizing industry conferences - The Group's ICV testing and related services include simulation testing, closed-field testing, and platform operation and maintenance services, offering highly customized solutions[45](index=45&type=chunk)[46](index=46&type=chunk) - During the reporting period, the Group's revenue from ICV testing and related services was approximately **RMB 9.3 millions**[47](index=47&type=chunk) - Revenue from consulting and other services was approximately **RMB 13.2 millions**, a year-on-year increase of **97.7%**[48](index=48&type=chunk) - Consulting services primarily assist automotive manufacturers in understanding and complying with domestic and international laws, regulations, and standards related to ICVs, while other services assist government departments in organizing ICV and related industry conferences[48](index=48&type=chunk)[49](index=49&type=chunk) [Prospects and Future Plans](index=19&type=section&id=前景及未來規劃) The Group plans to uphold independent innovation, increase R&D investment, continuously optimize existing solutions (Sim Pro, Safety Pro, Traffic Pro, SceCo Pro), and invest in developing new products (SGO Pro, DB Pro, Cloud Pro), while expanding its customer base and market coverage, including more Chinese cities and a Hong Kong representative office for overseas markets, further growing its talent pool, and exploring simulation technology applications in emerging industries such as drones, digital twin cities, and smart agriculture - The Group will adhere to independent innovation, strengthen R&D and technological innovation investments to enhance the core competitiveness of its products and services, expand its market share in China, and explore overseas markets and other sectors[50](index=50&type=chunk) [The Group Plans to Continue Optimizing and Upgrading its Existing Solutions to Strengthen its Technological Advantages](index=19&type=section&id=本集團計劃繼續優化和升級本集團現有的解決方案，加強本集團的技術優勢) The Group plans to continuously optimize and upgrade its existing solutions, including Sim Pro, Safety Pro, Traffic Pro, and SceCo Pro, to enhance its technological advantages and market competitiveness - Plans to continuously optimize and upgrade existing solutions, including Sim Pro (upgrading sensor models, cloud simulation data closed-loop, XiL testing performance), Safety Pro (upgrading intelligent analysis functions, automatic generation of FuSa and SOTIF scenario libraries), Traffic Pro (optimizing real-time data processing engine, intelligent traffic light optimization algorithms, compatibility), and SceCo Pro (developing multi-source data integration, cloud deployment, and automatic generation of customized scenarios)[50](index=50&type=chunk) [The Group Plans to Increase Investment in Innovation and Enhance New Products to Consolidate its Market Position in the ICV Testing, Verification, and Evaluation Solutions Industry](index=20&type=section&id=本集團計劃增加投資於創新及增強新產品並鞏固本集團在ICV測試%2C%20驗證和評估解決方案行業的市場地位) The Group plans to increase investment in innovation and enhance new products, focusing on developing and commercializing tools such as SGO Pro, DB Pro, and Cloud Pro based on the Sim Pro toolchain, to consolidate its market position in the ICV testing, verification, and evaluation solutions industry - Plans to continue developing and commercializing new products, focusing on tools such as SGO Pro, DB Pro, and Cloud Pro based on the Sim Pro toolchain[51](index=51&type=chunk) [The Group Plans to Expand its Customer Base and Geographically Broaden its Market Coverage](index=20&type=section&id=本集團計劃擴大我們的客戶群並在地理上擴大我們的市場覆蓋範圍) The Group plans to expand its customer base and geographically broaden its market coverage by extending operations to more Chinese cities and considering a Hong Kong representative office and R&D center to lay the groundwork for overseas market expansion, while strengthening sales and marketing efforts domestically and internationally - Plans to expand business into more Chinese cities and consider establishing a representative office and R&D center in Hong Kong to lay the foundation for overseas market expansion[52](index=52&type=chunk) - Will strengthen sales and marketing efforts, including expanding and enhancing the effectiveness of domestic sales and marketing teams, and participating in and organizing more industry events in mainland China and Hong Kong[52](index=52&type=chunk) [The Group Plans to Expand its Talent Pool to Support its Business Development Plans](index=20&type=section&id=本集團計劃擴大我們的人才庫，以支持我們的業務發展計劃) The Group plans to expand its talent pool to support business development by continuously investing in and growing its R&D team with technical personnel in software development, algorithms, vehicle testing, industry research, and product design, and by recruiting more professionals with sales, marketing, project management, and execution experience - Plans to continuously invest in and expand its R&D team by attracting technical personnel in areas such as software development, algorithms, vehicle testing, industry research, and product design[53](index=53&type=chunk) - Will recruit more professionals with sales and marketing expertise and experience, as well as management talent with project management and execution experience[53](index=53&type=chunk) [The Group Plans to Expand the Application of Simulation Technology and Explore Business Opportunities in Other Industries](index=21&type=section&id=本集團計劃擴大仿真技術的應用%2C%20並發掘在其他行業的商機) The Group plans to expand the application of simulation technology and explore business opportunities in other industries by investing in drone operation management, testing, and commercial applications, addressing the growing demand for digital twin city solutions in urban transportation, and developing and commercializing simulation solutions for smart agricultural machinery manufacturers - Plans to explore investment in simulation technology for drone operation management, testing, and commercial applications[54](index=54&type=chunk) - Digital twin city solutions are expected to see increasing demand in administrative or research activities aimed at improving urban transportation[54](index=54&type=chunk) - Plans to conduct R&D and commercialize simulation solutions for testing smart agricultural machinery, targeting smart product manufacturers in the smart agriculture market[54](index=54&type=chunk) [Revenue](index=22&type=section&id=收%20入) The Group's revenue increased by 63.7% year-on-year to RMB 91.0 millions in the first half of 2025, primarily driven by increased revenue from ICV simulation testing platforms, ICV data platforms and other products, and consulting and other services - The Group's revenue increased by **RMB 35.4 millions** (or approximately **63.7%**) from **RMB 55.6 millions** in the first six months of 2024 to **RMB 91.0 millions** in the first six months of 2025[55](index=55&type=chunk) - The increase in revenue was primarily attributable to increased revenue from ICV simulation testing platforms, ICV data platforms and other products, and consulting and other services[55](index=55&type=chunk) Revenue Contribution by Product/Service | Revenue Contribution | 2025 (RMB thousands) | Share (%) | 2024 (RMB thousands) | Share (%) | | :--- | :--- | :--- | :--- | :--- | | ICV Simulation Testing Software and Platforms | 49,073 | 54.0 | 31,321 | 56.4 | | ICV Data Platforms and Other Products | 19,331 | 21.3 | 10,903 | 19.6 | | ICV Testing and Related Services | 9,310 | 10.2 | 6,638 | 11.9 | | Consulting and Other Services | 13,245 | 14.5 | 6,698 | 12.1 | | **Total Revenue** | **90,959** | **100** | **55,560** | **100** | [Cost of Sales](index=22&type=section&id=銷售成本) The Group's cost of sales increased by 100% year-on-year to RMB 33.0 millions in the first half of 2025, primarily due to increased hardware procurement - The Group's cost of sales increased by **RMB 16.5 millions** (or approximately **100%**) from **RMB 16.5 millions** in the first six months of 2024 to **RMB 33.0 millions** in the first six months of 2025[56](index=56&type=chunk) - The increase in cost of sales was primarily attributable to increased hardware procurement[56](index=56&type=chunk) [Gross Profit and Gross Profit Margin](index=23&type=section&id=毛利及毛利率) The Group's gross profit increased by 48.4% year-on-year to RMB 58.0 millions in the first half of 2025, but the overall gross profit margin decreased from 70.3% to 63.7%, primarily due to increased hardware and customization requirements from customers for ICV simulation testing software and platforms - The Group's gross profit increased by **RMB 18.9 millions** (or approximately **48.4%**) from **RMB 39.1 millions** in the first six months of 2024 to **RMB 58.0 millions** in the first six months of 2025[57](index=57&type=chunk) - The Group's overall gross profit margin decreased from **70.3%** in the first six months of 2024 to **63.7%** in the first six months of 2025[57](index=57&type=chunk) - The decrease in gross profit margin was primarily attributable to increased hardware and customization requirements from customers for ICV simulation testing software and platforms[57](index=57&type=chunk) [Other Income](index=23&type=section&id=其他收入) The Group's other income increased by 8.1% year-on-year to RMB 14.6 millions in the first half of 2025, primarily driven by an increase in government grants, partially offset by a decrease in VAT refunds - The Group's other income increased by **RMB 1.1 millions** (or approximately **8.1%**) from **RMB 13.5 millions** in the first six months of 2024 to **RMB 14.6 millions** in the first six months of 2025[58](index=58&type=chunk) - The increase in other income was primarily attributable to increased government grants, partially offset by a decrease in VAT refunds[58](index=58&type=chunk) [Net Other Gains/(Losses)](index=23&type=section&id=其他收益╱（虧損）淨額) The Group's net other gains/(losses) shifted from a loss of RMB 0.4 millions in the prior year to a gain of RMB 0.5 millions in the first half of 2025, primarily due to fair value changes in wealth management products measured at fair value through profit or loss - The Group's net other gains/(losses) turned from a loss of **RMB 0.4 millions** in the first six months of 2024 to a gain of **RMB 0.5 millions** in the first six months of 2025[59](index=59&type=chunk) - The change was primarily attributable to fair value changes in wealth management products measured at fair value through profit or loss[59](index=59&type=chunk) [Selling and Marketing Expenses](index=23&type=section&id=銷售及營銷開支) The Group's selling and marketing expenses decreased by 17.7% year-on-year to RMB 4.3 millions in the first half of 2025, primarily due to optimized adjustments to the sales team, leading to cost reduction and efficiency improvement - The Group's selling and marketing expenses decreased by **RMB 0.9 millions** (or approximately **17.7%**) from **RMB 5.2 millions** in the first six months of 2024 to **RMB 4.3 millions** in the first six months of 2025[60](index=60&type=chunk) - The decrease was primarily attributable to optimized adjustments to the sales team, leading to cost reduction and efficiency improvement[60](index=60&type=chunk) [General and Administrative Expenses](index=23&type=section&id=一般及行政開支) The Group's general and administrative expenses increased by 19.3% year-on-year to RMB 17.7 millions in the first half of 2025, primarily due to increased management personnel costs and office expenses related to listing activities - The Group's general and administrative expenses increased by **RMB 2.8 millions** (or approximately **19.3%**) from **RMB 14.9 millions** in the first six months of 2024 to **RMB 17.7 millions** in the first six months of 2025[61](index=61&type=chunk) - The increase was primarily attributable to increased management personnel costs and office expenses related to listing activities[61](index=61&type=chunk) [Research and Development Expenses](index=24&type=section&id=研發開支) The Group's R&D expenses increased by 32.5% year-on-year to RMB 54.5 millions in the first half of 2025, primarily due to increased depreciation and amortization expenses for equipment and intangible assets related to R&D activities - The Group's R&D expenses increased by **RMB 13.4 millions** (or approximately **32.5%**) from **RMB 41.1 millions** in the first six months of 2024 to **RMB 54.5 millions** in the first six months of 2025[62](index=62&type=chunk) - The increase was primarily attributable to increased depreciation and amortization expenses for equipment and intangible assets related to R&D activities[62](index=62&type=chunk) [Reversal of Impairment Loss on Financial and Contract Assets](index=24&type=section&id=金融及合約資產減值虧損撥回) The Group's reversal of impairment loss on financial and contract assets increased by 55.6% year-on-year to RMB 3.0 millions in the first half of 2025, primarily due to the collection of a significant amount of trade receivables during the reporting period - The Group's reversal of impairment loss on financial and contract assets increased by **RMB 1.1 millions** (or approximately **55.6%**) from **RMB 1.9 millions** in the first six months of 2024 to **RMB 3.0 millions** in the first six months of 2025[63](index=63&type=chunk) - The increase was primarily attributable to the collection of a significant amount of trade receivables during the reporting period[63](index=63&type=chunk) [Share of Profit/(Loss) of Investments Accounted for Using Equity Method](index=24&type=section&id=分佔以權益法入賬的投資的利潤╱（虧損）) The Group's share of profit/(loss) of investments accounted for using the equity method shifted from a loss of RMB 0.7 millions in the prior year to a profit of RMB 34 thousands in the first half of 2025, primarily due to improved operating results of the joint venture, Beijing Dishishi Data Technology Co., Ltd - The Group's share of profit/(loss) of investments accounted for using the equity method increased by **RMB 0.7 millions** (or approximately **105.1%**) from a loss of **RMB 0.7 millions** in the first six months of 2024 to a profit of **RMB 34 thousands** in the first six months of 2025[64](index=64&type=chunk) - The increase was primarily attributable to the improved operating results of the joint venture, Beijing Dishishi Data Technology Co., Ltd., in the first six months of 2025 compared to the first six months of 2024[64](index=64&type=chunk) [Net Finance Income](index=24&type=section&id=財務收入淨額) The Group's net finance income increased by 64.9% year-on-year to RMB 1.7 millions in the first half of 2025, primarily due to increased interest income from bank deposits, partially offset by increased exchange losses and interest expenses on lease liabilities - The Group's net finance income increased by **RMB 0.7 millions** (or approximately **64.9%**) from **RMB 1.0 millions** in the first six months of 2024 to **RMB 1.7 millions** in the first six months of 2025[65](index=65&type=chunk) - The increase was primarily attributable to increased interest income from bank deposits, partially offset by increased exchange losses and interest expenses on lease liabilities[65](index=65&type=chunk) [Income Tax (Expense)/Credit](index=24&type=section&id=所得稅（開支）╱抵免) The Group's income tax shifted from a credit of RMB 2.1 millions in the prior year to an expense of RMB 1.0 millions in the first half of 2025, primarily due to the reversal of deferred tax liabilities and assets - The Group's income tax shifted from a credit of **RMB 2.1 millions** in the first six months of 2024 to an expense of **RMB 1.0 millions** in the first six months of 2025[66](index=66&type=chunk) - The change was primarily due to the reversal of deferred tax liabilities of approximately **RMB 0.3 millions** and the reversal of deferred tax assets of approximately **RMB 1.3 millions** during the reporting period[66](index=66&type=chunk) [Profit/(Loss) for the Period Attributable to the Group](index=25&type=section&id=本集團期內利潤╱（虧損）) The Group's profit for the period shifted from a loss of RMB 4.6 millions in the prior year to a profit of RMB 0.4 millions in the first half of 2025, primarily driven by increased gross profit, but partially offset by increased R&D expenses, general and administrative expenses, and income tax expenses - The Group's profit/(loss) for the period turned from a loss of **RMB 4.6 millions** in the first six months of 2024 to a profit of **RMB 0.4 millions** in the first six months of 2025[67](index=67&type=chunk) - Primarily attributable to an increase in gross profit of approximately **RMB 18.9 millions**, partially offset by increased R&D expenses, general and administrative expenses, and income tax expenses[67](index=67&type=chunk) [Non-IFRS Measures](index=25&type=section&id=非國際財務報告準則衡量方法) The Group uses adjusted profit/(loss) as a non-IFRS measure to better compare operating performance across different fiscal years, with this adjustment excluding share-based payment expenses and listing expenses, resulting in an adjusted profit of RMB 1,573 thousands for the first half of 2025 - The Group uses adjusted profit/(loss) (a non-IFRS measure) as an additional financial metric to compare operating performance across different fiscal years and entities[68](index=68&type=chunk) - Adjusted profit/(loss) is defined as profit for the period, excluding share-based payment expenses and listing expenses[68](index=68&type=chunk) Adjusted Profit/(Loss) for the Period (Non-IFRS Measure) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit/(Loss) for the period | 389 | (4,599) | | Add: Share-based payment expenses | 604 | 604 | | Add: Listing expenses | 580 | 155 | | **Adjusted profit/(loss) for the period (Non-IFRS measure)** | **1,573** | **(3,840)** | [Property, Plant and Equipment, Right-of-Use Assets and Intangible Assets](index=26&type=section&id=設備%2C%20使用權資產及無形資產) As of June 30, 2025, the Group's property, plant and equipment increased to RMB 93.9 millions, primarily due to new fixed asset acquisitions, while right-of-use assets and intangible assets slightly decreased due to depreciation and amortization - The Group's property, plant and equipment increased from **RMB 37.9 millions** as of December 31, 2024, to **RMB 93.9 millions** as of June 30, 2025, primarily due to new fixed asset acquisitions during the reporting period[72](index=72&type=chunk) - Right-of-use assets decreased from **RMB 49.0 millions** as of December 31, 2024, to **RMB 43.0 millions** as of June 30, 2025, primarily due to depreciation of right-of-use assets[72](index=72&type=chunk) - Intangible assets decreased from **RMB 52.3 millions** as of December 31, 2024, to **RMB 51.6 millions** as of June 30, 2025, primarily due to amortization of intangible assets[72](index=72&type=chunk) [Financial Assets at Fair Value Through Profit or Loss](index=26&type=section&id=按公允值計入損益的金融資產) The Group's financial assets at fair value through profit or loss significantly increased from RMB 35.8 millions as of December 31, 2024, to RMB 263.6 millions as of June 30, 2025, primarily due to the purchase of wealth management products - The Group's financial assets at fair value through profit or loss increased from **RMB 35.8 millions** as of December 31, 2024, to **RMB 263.6 millions** as of June 30, 2025[73](index=73&type=chunk) - The increase was primarily due to the purchase of wealth management products[73](index=73&type=chunk) [Trade and Bills Receivables](index=26&type=section&id=貿易應收款項及應收票據) The Group's trade and bills receivables decreased from RMB 191.3 millions as of December 31, 2024, to RMB 163.1 millions as of June 30, 2025, primarily due to the collection of a significant amount of receivables, with turnover days significantly improving from 517.1 days to 352.6 days - The Group's trade and bills receivables decreased from **RMB 191.3 millions** as of December 31, 2024, to **RMB 163.1 millions** as of June 30, 2025[74](index=74&type=chunk) - The decrease was primarily due to the collection of a significant amount of trade receivables during the reporting period, partially offset by new receivables generated during the period[74](index=74&type=chunk) - The turnover days for trade and bills receivables were **352.6 days** for the first six months of 2025 (first six months of 2024: **517.1 days**)[74](index=74&type=chunk) [Prepayments and Other Receivables](index=26&type=section&id=預付款項及其他應收款項) The Group's prepayments and other receivables as of June 30, 2025, amounted to RMB 26.4 millions, a decrease of RMB 33.2 millions from the end of last year, primarily due to the transfer of capitalized listing-related prepayments to capital reserve - The Group's prepayments and other receivables as of June 30, 2025, amounted to **RMB 26.4 millions**, a decrease of **RMB 33.2 millions** from **RMB 59.6 millions** as of December 31, 2024[75](index=75&type=chunk) - The decrease was primarily due to the transfer of capitalized listing-related prepayments to capital reserve[75](index=75&type=chunk) [Current Assets](index=27&type=section&id=流動資產) The Group's current assets increased from RMB 495.7 millions as of December 31, 2024, to RMB 748.9 millions as of June 30, 2025, primarily due to an increase in cash and cash equivalents and financial assets at fair value through profit or loss - The Group's current assets increased from **RMB 495.7 millions** as of December 31, 2024, to **RMB 748.9 millions** as of June 30, 2025[76](index=76&type=chunk) - The increase was primarily due to an increase in cash and cash equivalents and financial assets at fair value through profit or loss[76](index=76&type=chunk) [Liquidity and Capital Resources](index=27&type=section&id=流動資金及資金資源) The Group primarily funds its operations through a combination of capital injections and operating cash flows, with cash and cash equivalents increasing to RMB 297.5 millions as of June 30, 2025, mainly due to proceeds from the listing, and the Group adopts a prudent financial management approach to its treasury policy - The Group has historically funded its operations primarily through a combination of capital injections and operating cash flows[77](index=77&type=chunk) - The Group's cash and cash equivalents increased from **RMB 208.3 millions** as of December 31, 2024, to **RMB 297.5 millions** as of June 30, 2025, primarily attributable to proceeds from the listing[77](index=77&type=chunk) [Net Cash Generated from Operating Activities](index=27&type=section&id=經營活動所得現金淨額) The Group's net cash generated from operating activities significantly increased by 9,679.2% to RMB 54.2 millions in the first half of 2025, primarily due to operating cash flow before working capital changes and working capital adjustments - The Group's net cash generated from operating activities increased by **RMB 53.6 millions** (or approximately **9,679.2%**) from **RMB 0.6 millions** in the first six months of 2024 to **RMB 54.2 millions** in the first six months of 2025[78](index=78&type=chunk) - The increase was primarily attributable to operating cash flow before working capital changes of approximately **RMB 35.9 millions** and working capital adjustments of **RMB 14.2 millions**[78](index=78&type=chunk) [Net Cash Used in Investing Activities](index=27&type=section&id=投資活動所用現金淨額) The Group's net cash used in investing activities increased to RMB 320.3 millions in the first half of 2025, a significant increase from the prior year, primarily due to the purchase of property, plant and equipment and wealth management products - For the first six months of 2025, the Group's net cash used in investing activities was **RMB 320.3 millions**, compared to **RMB 66.8 millions** in the first six months of 2024[79](index=79&type=chunk) - The increase was primarily due to the purchase of property, plant and equipment and wealth management products[79](index=79&type=chunk) [Net Cash Generated from/(Used in) Financing Activities](index=27&type=section&id=融資活動所得╱（所用）現金淨額) The Group's financing activities shifted from a cash outflow of RMB 18.1 millions in the prior year to a cash inflow of RMB 357.3 millions in the first half of 2025, primarily due to proceeds from the listing - The Group's net cash generated from/(used in) financing activities shifted from a cash outflow of **RMB 18.1 millions** in the first six months of 2024 to a cash inflow of **RMB 357.3 millions** in the same period of 2025[80](index=80&type=chunk) - Primarily attributable to proceeds from the listing[80](index=80&type=chunk) [Borrowings](index=28&type=section&id=借%20款) As of June 30, 2025, the Group had no external borrowings or loans - As of June 30, 2025, we had no external borrowings or loans (December 31, 2024: nil)[81](index=81&type=chunk) [Lease Liabilities](index=28&type=section&id=租賃負債) The Group's lease liabilities as of June 30, 2025, amounted to RMB 47.4 millions, a decrease of RMB 14.4 millions from the end of last year, primarily due to contractual payments for the Shunyi testing site lease - The Group's lease liabilities as of June 30, 2025, amounted to **RMB 47.4 millions**, a decrease of **RMB 14.4 millions** from **RMB 61.8 millions** as of December 31, 2024[82](index=82&type=chunk) - The decrease was primarily due to contractual payments for the lease of the Shunyi base of the National Intelligent Connected Vehicle and Smart Transportation (Beijing-Hebei) Demonstration Zone in the first half of 2025[82](index=82&type=chunk) [Trade and Bills Payables](index=28&type=section&id=貿易應付款項及應付票據) The Group's trade and bills payables increased from RMB 5.7 millions as of December 31, 2024, to RMB 6.2 millions as of June 30, 2025, primarily due to increased procurement costs driven by higher revenue, with turnover days decreasing from 51.9 days to 32.8 days - The Group's trade and bills payables increased from **RMB 5.7 millions** as of December 31, 2024, to **RMB 6.2 millions** as of June 30, 2025[83](index=83&type=chunk) - The increase was primarily due to increased procurement costs driven by higher revenue, which led to an increase in trade payables[83](index=83&type=chunk) - The turnover days for trade and bills payables were **32.8 days** for the reporting period (first six months of 2024: **51.9 days**)[83](index=83&type=chunk) [Capital Gearing Ratio](index=28&type=section&id=資本負債比率) As of June 30, 2025, the Group's capital gearing ratio remained at zero, consistent with the end of last year - As of June 30, 2025, the Group's capital gearing ratio was **zero** (December 31, 2024: zero)[84](index=84&type=chunk) [Pledge of Assets](index=28&type=section&id=資產抵押) As of June 30, 2025, the Group had no pledged assets - As of June 30, 2025, the Group had no pledged assets[85](index=85&type=chunk) [Foreign Exchange Risk](index=28&type=section&id=外匯風險) The Group's business is primarily conducted in RMB, with foreign exchange risk mainly arising from fluctuations in USD/RMB and HKD/RMB exchange rates, and while there is currently no foreign currency hedging policy, the Board of Directors will monitor the risk and consider hedging - The Group's business is primarily conducted in RMB, with most assets denominated in RMB[86](index=86&type=chunk) - The Group's foreign exchange risk primarily arises from fluctuations in USD/RMB and HKD/RMB exchange rates[86](index=86&type=chunk) - As of now, the Group has not formulated any foreign currency hedging policy, but the Board of Directors will monitor the risk and consider hedging[86](index=86&type=chunk) [Contingent Liabilities](index=28&type=section&id=或然負債) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities (as of December 31, 2024: nil)[87](index=87&type=chunk) [Capital Commitments](index=29&type=section&id=資本承諾) As of June 30, 2025, the Group's unpaid capital commitments increased by HKD 52.8 millions compared to the end of last year, primarily due to investment in its wholly-owned subsidiary, Saimo Technology (Hong Kong) Limited - The Group's unpaid capital commitments as of June 30, 2025, increased by **HKD 52.8 millions** compared to the end of last year, due to its investment in the wholly-owned subsidiary, Saimo Technology (Hong Kong) Limited[88](index=88&type=chunk) [Use of Proceeds from Global Offering](index=29&type=section&id=全球發售所得款項用途) The company completed its global offering and listing on the Stock Exchange on January 15, 2025, raising net proceeds of approximately RMB 328.8 millions, of which RMB 30.5 millions had been utilized as of June 30, 2025, primarily for continuous R&D investment and general corporate purposes, with no change in the intended use - The company completed its global offering and successfully listed on the Hong Kong Stock Exchange on January 15, 2025[89](index=89&type=chunk) - The global offering generated net proceeds of approximately **RMB 328.8 millions**[89](index=89&type=chunk) Use of Net Proceeds from Global Offering | Purpose | Allocated Net Proceeds (RMB millions) | Share (%) | Net Proceeds Utilized (RMB millions) | Net Proceeds Unutilized (RMB millions) | Expected Timeline for Use of Proceeds | | :--- | :--- | :--- | :--- | :--- | :--- | | Continuous R&D Investment - R&D of existing solutions | 57.5 | 17.5% | 3.9 | 53.6 | Before December 2027 | | Continuous R&D Investment - R&D of new tools and cloud infrastructure | 101.3 | 30.8% | – | 101.3 | Before December 2027 | | Continuous R&D Investment - Penetration into new industries | 45.7 | 13.9% | – | 45.7 | Before December 2027 | | Geographical expansion and marketing | 91.4 | 27.8% | – | 91.4 | Before December 2027 | | General corporate purposes and replenishment of working capital | 32.9 | 10.0% | 26.6 | 6.3 | Before December 2027 | | **Total** | **328.8** | **100%** | **30.5** | **298.3** | | - As of the date of this announcement, there has been no change in the intended use of net proceeds as disclosed in the prospectus[90](index=90&type=chunk) [Significant Investments Held, Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=30&type=section&id=所持重大投資%2C%20重大收購與出售附屬公司%2C%20聯營公司及合營公司) In the first half of 2025, the company had no significant investments, material acquisitions, or disposals of any subsidiaries, associates, or joint ventures, other than those disclosed in this announcement - For the first six months of 2025, the company had no significant investments other than those disclosed in this announcement[91](index=91&type=chunk) - For the first six months of 2025, the company had no material acquisitions or disposals of any subsidiaries, associates, or joint ventures other than those disclosed in this announcement[91](index=91&type=chunk) [Future Plans for Material Investments or Capital Assets](index=30&type=section&id=重大投資或資本資產的未來計劃) As of the date of this announcement, the Group had no other future plans for material investments or capital assets, except for those disclosed in the prospectus and this announcement - As of the date of this announcement, the Group had no other future plans for material investments or capital assets, except for those disclosed in the "Future Plans and Use of Proceeds" section of the prospectus and in this announcement[92](index=92&type=chunk) [Employees and Remuneration Policy](index=31&type=section&id=僱員及薪酬政策) As of June 30, 2025, the Group had 162 employees with staff costs of approximately RMB 33.5 millions, providing internal and external training, employee incentive plans, and an H-share award trust scheme to attract and retain talent, while actively participating in China's local government housing provident fund and employee social security schemes - As of June 30, 2025, the Group had **162** employees (June 30, 2024: 185 employees)[93](index=93&type=chunk) - For the first six months of 2025, the Group's staff costs were approximately **RMB 33.5 millions** (same period in 2024: approximately **RMB 33.9 millions**)[93](index=93&type=chunk) - The Group provides internal and external training courses for employees and has an employee incentive scheme and a 2025 H-share award trust scheme to incentivize key management and technical personnel[94](index=94&type=chunk) - The Group participates in housing provident fund and employee social security schemes organized by relevant local government departments in China[94](index=94&type=chunk) [Material Events After Reporting Period](index=31&type=section&id=報告期後重大事項) No material and significant events affecting the Group occurred after June 30, 2025, up to the date of this announcement, other than those disclosed herein - Except as disclosed in this announcement, no material and significant events affecting the Group occurred after June 30, 2025, up to the date of this announcement[96](index=96&type=chunk) [Corporate Governance](index=31&type=section&id=企業管治) [Compliance with Corporate Governance Code](index=31&type=section&id=遵守企業管治守則) The company has adopted and applied the Corporate Governance Code set out in Appendix C1 to the Listing Rules of the Stock Exchange since its listing date and has continuously complied with all applicable code provisions and other laws and regulations without any deviation during the period - The company has adopted and applied the Corporate Governance Code set out in Appendix C1 to the Listing Rules of the Stock Exchange since its listing date[98](index=98&type=chunk) - The company has continuously complied with all applicable code provisions of the Corporate Governance Code and other applicable laws and regulatory requirements since its listing, with no deviation from the code provisions of the Corporate Governance Code during the period from the listing date to June 30, 2025[98](index=98&type=chunk) [Compliance with the Model Code for Securities Transactions by Directors and Supervisors](index=32&type=section&id=遵守董事及監事進行證券交易的標準守則) The company has adopted the Model Code as set out in Appendix C3 to the Listing Rules as the code of conduct for securities transactions by directors, supervisors, and relevant employees, and confirms that all directors and supervisors have complied with the Model Code during the reporting period - The company has adopted the "Model Code for Securities Transactions by Directors of Listed Issuers" as set out in Appendix C3 to the Listing Rules as the code of conduct for all securities transactions by directors, supervisors, and relevant employees of the company[99](index=99&type=chunk) - The company, after specific inquiries to all directors and supervisors, confirms that all directors and supervisors have complied with the required standards set out in the Model Code during the period from the listing date to June 30, 2025[99](index=99&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=32&type=section&id=購買%2C%20出售或贖回本公司之上市證券) Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the reporting period, nor did the company hold any treasury shares - Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities (including the sale of treasury shares) during the reporting period[100](index=100&type=chunk) - As of June 30, 2025, the company held no treasury shares[101](index=101&type=chunk) [Interim Dividend](index=32&type=section&id=中期股息) The Board of Directors resolved not to declare any interim dividend for the six months ended June 30, 2025 - For the six months ended June 30, 2025, the Board of Directors resolved not to declare any interim dividend (for the six months ended June 30, 2024: nil)[102](index=102&type=chunk) [Audit Committee](index=32&type=section&id=審核委員會) The company's Audit Committee, comprising three independent non-executive directors, provides independent opinions on financial reporting procedures, risk management, and internal control systems, and oversees the audit process, with members possessing professional qualifications and no former partners of the current external auditor - The company's Audit Committee comprises three independent non-executive directors: Ms. Guo Lili (Chairperson), Mr. Huang Hua, and Mr. Huang Haojun[103](index=103&type=chunk) - The primary responsibilities of the Audit Committee are to provide independent opinions to assist the Board of Directors on the effectiveness of the Group's financial reporting procedures, risk management, and internal control systems, and to oversee audit processes, development, and review policies[104](index=104&type=chunk) [Review of Unaudited Condensed Consolidated Interim Results](index=33&type=section&id=審閱未經審核簡明綜合中期業績) The Audit Committee has reviewed the Group's unaudited condensed consolidated interim results for the six months ended June 30, 2025, and deemed them compliant with applicable accounting standards, laws, and regulations - The Audit Committee has reviewed the Group's unaudited condensed consolidated interim results for the six months ended June 30, 2025[105](index=105&type=chunk) - The Audit Committee is of the opinion that the Group's unaudited condensed consolidated interim results for the six months ended June 30, 2025, comply with applicable accounting standards, laws, and regulations[105](index=105&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=33&type=section&id=刊登中期業績公告及中期報告) This announcement has been published on the Stock Exchange website and the company's website, and the company's interim report for the six months ended June 30, 2025, will be dispatched to shareholders requesting printed corporate communications and published on the respective websites in due course - This announcement is published on the Stock Exchange website (www.hkexnews.hk) and the company's website (www.saimo.cloud)[106](index=106&type=chunk) - The company's interim report for the six months ended June 30, 2025, will be dispatched to shareholders requesting printed corporate communications in due course and published on the respective websites of the company and the Stock Exchange[106](index=106&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內 容 概 不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不對因本公告全部或任何部分內容而產生或因倚賴該等內容而引致的 任 何 損 失 承 擔 任 何 責 任。 CENTRAL CHINA MANAGEMENT COMPANY LIMITED 中原建業有限公司 （於 開 曼 群 島 註 冊 成 立 的 有 限 公 司） – 2 – （股 份 代 號：9982） 截 至2025年6月30日止六個月的 未經審核中期業績公告 財務摘要 – 1 – • 截 至2025年6月30日 止 六 個 月（「期 內」）收 入 為 人 民 幣139.6百 萬 元，較 2024年同期下降4.5%。 • 期內淨利潤為人民幣37.0百 萬 元，較2024年同期下降23.4%，期 內 淨 利潤率為26.5%。 • 期內每股基本盈利為人民幣0.94分，較2024年同期減少人民幣0.26分。 • 董事會並無建議派發截至2025年6月30日 止 六 個 月 之 中 期 股 息。 中期業績 中 原 建 業 有 限 公 司（「本公司 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整 性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚賴該等內容而 引致的任何損失承擔任何責任。 SUNAC SERVICES HOLDINGS LIMITED 融創服務控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：01516） 截至2025年6月30日止六個月中期業績公告及 變更全球發售所得款項淨額用途 業績摘要 截至2025年6月30日止六個月： – 1 – • 本集團的收入約為人民幣35.47億元，同比增長約2%； • 本集團的毛利約為人民幣7.72億元，同比下降約13%，主要由於本集團暫緩 確認已完成履約義務但回款存在高風險的若干第三方客戶的收入，以及近年 交付項目質保到期而帶來的維修維護成本增加所致； • 本集團的銷售及管理費用約為人民幣2.79億元，同比下降約13%。銷售及管 理費率約為7.9%，同比下降約1.3個百分點；及 • 本公司擁有人應佔利潤約為人民幣1.22億元，去年同期本公司擁有人應佔虧 損約為人民幣4.72億元。 融創服務控股有限公司（「本公司」）董事（「董事 ...