[Unaudited Interim Results Announcement](index=1&type=section&id=Unaudited%20Interim%20Results%20Announcement) This report presents the unaudited interim financial results of the Group for the six months ended June 30, 2025, including financial statements, notes, and management's discussion and analysis [Condensed Consolidated Financial Statements](index=1&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated statement of profit or loss and other comprehensive income and statement of financial position for the six months ended June 30, 2025, comparing key financial performance and changes in revenue, profit, assets, and liabilities with prior periods [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) This statement details the Group's revenue, gross profit, other income, net gains/losses, profit before and after tax, and earnings per share for the six months ended June 30, 2025 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30): | Indicator | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Revenue | 146,197 | 154,735 | | Gross profit | 41,897 | 42,503 | | Other income | 2,978 | 2,965 | | Net other gains and losses | (10,724) | 2,784 | | Profit before income tax | 5,973 | 17,574 | | Income tax credit | 2,042 | 7,667 | | Profit for the period | 8,015 | 25,241 | | Profit for the period attributable to owners of the Company | 7,400 | 25,429 | | Basic earnings per share | 0.55 HK Cents | 1.90 HK Cents | | Diluted earnings per share | 0.55 HK Cents | 1.90 HK Cents | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This statement presents the Group's assets, liabilities, and equity as of June 30, 2025, compared to December 31, 2024, highlighting changes in financial position Condensed Consolidated Statement of Financial Position (As of June 30, 2025 vs December 31, 2024): | Indicator | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Non-current assets | 143,038 | 137,465 | | Current assets | 657,818 | 647,538 | | Current liabilities | 157,240 | 143,133 | | Net current assets | 500,578 | 504,405 | | Non-current liabilities | 19,967 | 22,352 | | Total equity | 623,649 | 619,518 | [Notes to the Condensed Consolidated Financial Statements](index=5&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides essential supplementary information for understanding the financial statements, detailing the Group's business overview, basis of preparation, revenue, segment information, profit composition, taxation, dividends, earnings per share, receivables, payables, share capital changes, subsidiary disposals, and post-reporting period events [General Information](index=5&type=section&id=General%20Information) This section outlines the company's incorporation, listing status, and primary business segments, including jewellery, property, and photovoltaic power generation and energy storage - The Company was incorporated in the Cayman Islands and listed on the Main Board of the Hong Kong Stock Exchange on January 4, 2016, with principal businesses including: (a) jewellery (design, manufacture, and sale of high-end jewellery, metal refining and purification); (b) property (development, sale, leasing, and management of Foshan Integrated Industrial Centre project); and (c) photovoltaic power generation and energy storage (sales of photovoltaic power systems electricity and energy storage services)[7](index=7&type=chunk) [Basis of Preparation](index=5&type=section&id=Basis%20of%20Preparation) This section details the accounting standards and principles used for preparing the condensed consolidated financial statements, including the application of new or revised HKFRSs - The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants, using the historical cost basis, except for financial assets at fair value through profit or loss and equity instruments at fair value through other comprehensive income[9](index=9&type=chunk)[10](index=10&type=chunk) - The new or revised Hong Kong Financial Reporting Standards accounting standards first applied in this interim period, such as the amendments to HKAS 21 "Lack of Exchangeability", did not have a significant impact on the Group's financial position and performance[10](index=10&type=chunk)[11](index=11&type=chunk) [Revenue and Segment Information](index=7&type=section&id=Revenue%20and%20Segment%20Information) This section provides a detailed breakdown of the Group's revenue, segment results, assets, and liabilities across its jewellery, property, and photovoltaic power generation and energy storage businesses Revenue by Business Segment (For the six months ended June 30): | Business Segment | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Sales of jewellery products | 112,998 | 124,627 | | Sales of properties | 3,804 | 13,686 | | Sales of electricity | 5,400 | 1,743 | | Revenue from metal refining and purification processing services for jewellery | 14,844 | 3,648 | | Revenue from energy storage business services | 457 | — | | Property management fee income | 2,923 | 4,971 | | Rental income | 5,771 | 6,060 | | **Total Revenue** | **146,197** | **154,735** | Segment Revenue and Results (For the six months ended June 30): | Segment | 2025 Revenue (HK$ Thousand) | 2025 Results (HK$ Thousand) | 2024 Revenue (HK$ Thousand) | 2024 Results (HK$ Thousand) | | :--- | :--- | :--- | :--- | :--- | | Jewellery Business | 127,842 | 18,060 | 128,275 | 16,937 | | Property Business | 12,498 | 4,441 | 24,717 | 3,722 | | Photovoltaic Power Generation and Energy Storage Business | 5,857 | 2,737 | 1,743 | 794 | | **Consolidated** | **146,197** | **25,238** | **154,735** | **21,453** | Segment Assets and Liabilities (As of June 30, 2025 vs December 31, 2024): | Segment | 2025 Assets (HK$ Thousand) | 2025 Liabilities (HK$ Thousand) | 2024 Assets (HK$ Thousand) | 2024 Liabilities (HK$ Thousand) | | :--- | :--- | :--- | :--- | :--- | | Jewellery Business | 334,214 | 43,087 | 339,730 | 40,483 | | Property Business | 382,598 | 8,512 | 374,273 | 12,855 | | Photovoltaic Power Generation and Energy Storage Business | 68,216 | 41,037 | 63,786 | 39,432 | | **Consolidated Total** | **800,856** | **177,207** | **785,003** | **165,485** | [Profit Before Income Tax](index=13&type=section&id=Profit%20Before%20Income%20Tax) This section details the components contributing to the Group's profit before income tax, including depreciation, staff costs, auditor's remuneration, and cost of inventories for the six months ended June 30, 2025 Composition of Profit Before Income Tax (For the six months ended June 30): | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 3,760 | 2,399 | | Depreciation of right-of-use assets | 1,601 | 93 | | **Total Depreciation** | **5,361** | **2,492** | | Directors' emoluments | 4,137 | 4,146 | | Other staff salaries and benefits | 7,747 | 10,367 | | **Total Staff Costs** | **11,884** | **14,513** | | Auditor's remuneration | 250 | 240 | | Cost of inventories recognised as expense and properties held for sale | 101,909 | 110,398 | [Income Tax Credit](index=14&type=section&id=Income%20Tax%20Credit) This section outlines the Group's income tax credit components and applicable tax rates for Hong Kong, China, and land appreciation tax for the six months ended June 30, 2025 Income Tax Credit (For the six months ended June 30): | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Hong Kong profits tax | 230 | (96) | | PRC tax | 939 | (3,564) | | Over-provision in prior years | (2,950) | (2,043) | | Deferred tax credit | (261) | (1,964) | | **Total Income Tax Credit** | **(2,042)** | **(7,667)** | - Hong Kong profits tax adopts a two-tiered system, with a tax rate of 8.25% for the first **HK$2 million** of assessable profits and 16.5% for the remaining profits. The corporate income tax rate for PRC subsidiaries is 25%. Land appreciation tax is levied at progressive rates from 30% to 60%[27](index=27&type=chunk)[28](index=28&type=chunk)[29](index=29&type=chunk) [Dividends](index=15&type=section&id=Dividends) This section details the dividends declared during the period and notes the absence of interim dividends, along with share repurchases by the Company Dividends Declared (For the six months ended June 30): | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | 2024 Final dividend (HK$0.01 per share) | 13,351 | — | | 2023 Final dividend (HK$0.02 per share) | — | 26,790 | | **Dividends declared during the period** | **13,351** | **26,790** | - The Board did not declare any interim dividends for the six months ended June 30, 2024 and 2025. The Company repurchased and cancelled **1,167,000** of its own shares from the market during the first half of 2025[31](index=31&type=chunk) [Earnings Per Share](index=16&type=section&id=Earnings%20Per%20Share) This section presents the calculation of basic and diluted earnings per share, noting the impact of share repurchases and the absence of dilutive potential ordinary shares Earnings Per Share Calculation (For the six months ended June 30): | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit for the period attributable to owners of the Company (HK$ Thousand) | 7,400 | 25,429 | | Weighted average number of ordinary shares (Thousand Shares) | 1,335,615 | 1,340,443 | | **Basic earnings per share (HK Cents)** | **0.55** | **1.90** | | **Diluted earnings per share (HK Cents)** | **0.55** | **1.90** | - Basic earnings per share is the same as diluted earnings per share as there were no potential dilutive ordinary shares for the period ended June 30, 2025. The Company repurchased and cancelled **1,167,000** of its own shares during the first half of 2025[35](index=35&type=chunk) [Trade and Other Receivables](index=17&type=section&id=Trade%20and%20Other%20Receivables) This section provides a breakdown and ageing analysis of the Group's trade and other receivables, including details on impairment loss reversals and write-offs Trade and Other Receivables (As of June 30, 2025 vs December 31, 2024): | Item | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Trade receivables (net of allowance) | 60,410 | 45,453 | | Other receivables, prepayments and deposits | 12,035 | 14,931 | | Amount due from a joint venture | 1,368 | 1,435 | | **Total** | **73,813** | **61,819** | - The Group reversed impairment losses of approximately **HK$344,000** in the first half of 2025 under the expected credit loss model, primarily due to the settlement of relevant trade receivables. Concurrently, approximately **HK$19,552,000** of trade receivables were written off[36](index=36&type=chunk)[37](index=37&type=chunk) Ageing Analysis of Trade Receivables (As of June 30, 2025 vs December 31, 2024): | Ageing | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | 0 to 30 days | 21,142 | 12,306 | | 31 to 60 days | 15,962 | 9,449 | | 61 to 180 days | 19,017 | 19,252 | | 181 to 365 days | 4,289 | 4,446 | | **Total** | **60,410** | **45,453** | [Trade and Other Payables](index=18&type=section&id=Trade%20and%20Other%20Payables) This section provides a breakdown and ageing analysis of the Group's trade and other payables as of June 30, 2025, compared to December 31, 2024 Trade and Other Payables (As of June 30, 2025 vs December 31, 2024): | Item | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Trade payables | 32,386 | 28,388 | | Accruals and other payables | 17,687 | 17,248 | | **Total** | **50,073** | **45,636** | Ageing Analysis of Trade Payables (As of June 30, 2025 vs December 31, 2024): | Ageing | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | 0 to 60 days | 14,270 | 10,671 | | 61 to 90 days | 5,856 | 1,798 | | Over 90 days | 12,260 | 15,919 | | **Total** | **32,386** | **28,388** | [Share Capital](index=19&type=section&id=Share%20Capital) This section details the Company's issued and fully paid share capital, including the number of ordinary shares and the impact of share repurchases during the period Issued and Fully Paid Share Capital (As of June 30, 2025 vs December 31, 2024): | Item | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Nominal value of ordinary shares | 4,450 | 4,454 | | Number of ordinary shares | 1,335,078,000 | 1,336,245,000 | - For the six months ended June 30, 2025, the Company repurchased and cancelled **1,167,000** of its own shares from the market at a total cost of **HK$212,000**, with an average price of **HK$0.182**[43](index=43&type=chunk) [Disposal of a Subsidiary](index=20&type=section&id=Disposal%20of%20a%20Subsidiary) This section reports the Company's disposal of its entire equity interest in Foshan Huaguanhui Property Management Co., Ltd. in April 2024, including the consideration and gain on disposal - The Company disposed of its entire equity interest in Foshan Huaguanhui Property Management Co., Ltd. in April 2024 for a consideration of approximately **RMB3,670,000** (approximately **HK$3,958,000**), resulting in a gain on disposal of **HK$2,827,000**[44](index=44&type=chunk)[46](index=46&type=chunk) [Events After the Reporting Period](index=22&type=section&id=Events%20After%20the%20Reporting%20Period%20%28Notes%29) This section discloses significant events occurring after the reporting period, including a proposed privatization by the controlling shareholder and the acquisition of a golf club membership - Controlling shareholder Immaculate Diamonds Limited proposed to privatize the Company by way of a scheme of arrangement and delist its shares from the Stock Exchange. The deadline for dispatching the scheme document has been extended to on or before September 19, 2025[48](index=48&type=chunk) - The Group agreed to acquire a Hong Kong Golf Club membership for **HK$13.5 million** on July 16, 2025[48](index=48&type=chunk) [Management Discussion and Analysis](index=23&type=section&id=Management%20Discussion%20and%20Analysis) This section provides comprehensive operational insights for investors, analyzing the Group's business segment performance, market challenges, future strategies, financial condition, liquidity, capital structure, risk management, and corporate governance [Business Outlook and Future Prospects](index=23&type=section&id=Business%20Outlook%20and%20Future%20Prospects) This section outlines the Group's strategic direction and market expectations for its jewellery, property, and photovoltaic power generation and energy storage businesses - The Group's principal businesses include the design, manufacture, and sale of high-end jewellery; property development, sale, and leasing of the Foshan Integrated Industrial Centre project; and sales of photovoltaic power systems electricity and energy storage services[49](index=49&type=chunk) [Jewellery Business](index=23&type=section&id=Jewellery%20Business%20Outlook) This section discusses the challenges faced by the jewellery business, including macroeconomic factors and high gold prices, and outlines strategies for market expansion and product development - The jewellery business faces challenges from global macroeconomic weakness, geopolitical tensions, record-high gold prices, and high US tariffs, leading to dampened customer purchasing sentiment and an unpronounced recovery in the Chinese market[50](index=50&type=chunk) - The Group actively participates in Hong Kong and overseas exhibitions, visits overseas customers to secure orders, and plans to strengthen R&D for market-competitive jewellery designs, focusing on developing overseas markets[50](index=50&type=chunk)[51](index=51&type=chunk) [Property Business](index=24&type=section&id=Property%20Business%20Outlook) This section addresses the weak sentiment in China's industrial property market, indicating no new development projects and future revenue reliance on existing unit sales and management fees - Given the weak sentiment in the Chinese industrial property market, the Group currently has no plans for new property development projects, with future revenue primarily relying on the sale of remaining industrial units and parking spaces, as well as management service income[53](index=53&type=chunk) [Photovoltaic Power Generation and Energy Storage Business](index=24&type=section&id=Photovoltaic%20Power%20Generation%20and%20Energy%20Storage%20Business%20Outlook) This section highlights the expansion of the Group's photovoltaic and energy storage projects in China, detailing increased capacity and generation, and forecasts future demand growth - As of June 30, 2025, the Group completed grid connection for **15** photovoltaic projects in China, with a total maximum capacity of approximately **16,953 kW** and power generation of approximately **7,800,000 kWh** (compared to 10 projects, **8,643 kW**, and **3,000,000 kWh** in the same period of 2024)[55](index=55&type=chunk) - Three energy storage power stations have been built and put into operation, with a total maximum capacity of approximately **4,831 kW** and power generation of approximately **1,000,000 kWh**[55](index=55&type=chunk) - Demand for photovoltaic power generation is expected to increase in the future, benefiting from strategic support from the Chinese government, technological advancements, and cost reductions, despite intense market competition[56](index=56&type=chunk) [Privatisation of the Company](index=25&type=section&id=Privatisation%20of%20the%20Company) This section details the proposed privatization of the Company by its controlling shareholder, including the scheme of arrangement, cash payment for shares, and delisting from the Stock Exchange - Controlling shareholder Immaculate Diamonds Limited proposed to privatize the Company by way of a scheme of arrangement, involving the cancellation of scheme shares for cash consideration and the withdrawal of the shares' listing on the Stock Exchange[57](index=57&type=chunk) - The Company has applied to extend the deadline for dispatching the scheme document to on or before September 19, 2025, and is preparing to submit relevant documents to the Grand Court to seek approval for the scheme[58](index=58&type=chunk) [Financial Review](index=26&type=section&id=Financial%20Review) This section provides a detailed analysis of the Group's financial performance, including revenue, gross profit, other income, expenses, and profit for the period, highlighting key drivers and changes - For the six months ended June 30, 2025, total revenue was approximately **HK$146.2 million**, a **5.5% decrease** compared to the same period in 2024, primarily due to reduced revenue from the jewellery and property businesses, partially offset by significant growth in the photovoltaic power generation and energy storage business[61](index=61&type=chunk) [Overall Revenue](index=26&type=section&id=Overall%20Revenue%20Breakdown) This section provides a detailed breakdown of the Group's total revenue by business segment and geographical region, highlighting key changes and contributing factors Overall Revenue by Business Segment (For the six months ended June 30): | Business Segment | 2025 (HK$ Thousand) | Percentage (%) | 2024 (HK$ Thousand) | Percentage (%) | Change (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Jewellery Business | 127,842 | 87.4 | 128,275 | 82.9 | (433) | (0.3) | | Property Business | 12,498 | 8.6 | 24,717 | 16.0 | (12,219) | (49.4) | | Photovoltaic Power Generation and Energy Storage Business | 5,857 | 4.0 | 1,743 | 1.1 | 4,114 | 236.0 | | **Total** | **146,197** | **100.0** | **154,735** | **100.0** | **(8,538)** | **(5.5)** | Overall Revenue by Region (For the six months ended June 30): | Region | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Hong Kong | 81,482 | 95,579 | (14,097) | (14.7) | | Dubai | 24,849 | 27,299 | (2,450) | (9.0) | | China | 39,866 | 31,857 | 8,009 | 25.1 | | **Total** | **146,197** | **154,735** | **(8,538)** | **(5.5)** | - The decrease in revenue from Hong Kong and Dubai was primarily due to weak consumer sentiment caused by macroeconomic challenges and a decline in jewellery product sales. The increase in revenue from China was mainly attributable to growth in jewellery metal refining and purification processing services income and the expansion of the photovoltaic power generation and energy storage business[65](index=65&type=chunk) [Gross Profit and Gross Margin](index=28&type=section&id=Gross%20Profit%20and%20Gross%20Margin%20Analysis) This section analyzes the Group's gross profit and gross margin by business segment, explaining the factors influencing changes in profitability, including sales mix and cost fluctuations Gross Profit and Gross Margin by Business Segment (For the six months ended June 30): | Business Segment | 2025 Gross Profit (HK$ Thousand) | 2025 Gross Margin (%) | 2024 Gross Profit (HK$ Thousand) | 2024 Gross Margin (%) | Gross Profit Change (HK$ Thousand) | Gross Profit Change (%) | Gross Margin Change (percentage points) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Jewellery Business | 32,033 | 25.1 | 33,190 | 25.9 | (1,157) | (3.5) | (0.8) | | Property Business | 6,825 | 54.6 | 8,265 | 33.4 | (1,440) | (17.4) | 21.2 | | Photovoltaic Power Generation and Energy Storage Business | 3,039 | 51.9 | 1,048 | 60.0 | 1,991 | 190.0 | (8.1) | | **Total** | **41,897** | **28.7** | **42,503** | **27.5** | **(606)** | **(1.4)** | **1.2** | - Overall gross profit decreased by **1.4%** to **HK$41.9 million**, but the overall gross margin increased by **1.2 percentage points** to **28.7%**, primarily due to an increase in the property business gross margin resulting from reduced property sales (which have relatively lower profit margins)[66](index=66&type=chunk)[67](index=67&type=chunk) - The gross margin for the jewellery business decreased by **0.8 percentage points** to **25.1%**, mainly offset by record-high gold prices for finished jewellery products sold and lower-margin metal refining and processing services revenue. The gross margin for the property business significantly increased by **21.2 percentage points** to **54.6%**, primarily due to reduced property sales. The gross margin for the photovoltaic power generation and energy storage business decreased by **8.1 percentage points** to **51.9%**, mainly due to the dilutive effect of the lower gross margin from the energy storage business commenced in the second half of 2024[70](index=70&type=chunk)[74](index=74&type=chunk)[76](index=76&type=chunk) [Other Income](index=32&type=section&id=Other%20Income) This section reports the Group's other income for the period, primarily consisting of bank deposit interest income, which remained consistent with the prior year - For the six months ended June 30, 2025, other income was approximately **HK$3.0 million**, similar to the same period last year, mainly comprising bank deposit interest income[77](index=77&type=chunk) [Net Other Gains and Losses](index=32&type=section&id=Net%20Other%20Gains%20and%20Losses) This section explains the shift from a net gain in 2024 to a net loss in 2025, primarily due to fair value changes in financial assets and the absence of a gain from subsidiary disposal - Net other gains and losses turned from a gain of **HK$2.8 million** in the same period of 2024 to a loss of **HK$10.7 million** in the same period of 2025, mainly due to net fair value changes losses on financial assets at fair value through profit or loss (including realised and unrealised losses on gold futures contracts) and the absence of a gain from the disposal of a subsidiary in the same period of 2024[78](index=78&type=chunk) [Write-down of Properties Held for Sale](index=32&type=section&id=Write-down%20of%20Properties%20Held%20for%20Sale) This section reports a write-down of properties held for sale due to the continued downturn in the Chinese industrial property market - For the six months ended June 30, 2025, a write-down of properties held for sale of approximately **HK$2.7 million** was recognised due to the continued sluggishness in the Chinese industrial property market[79](index=79&type=chunk) [Selling and Distribution Costs](index=32&type=section&id=Selling%20and%20Distribution%20Costs) This section notes a decrease in selling and distribution costs, primarily attributed to enhanced control over sales expenses in the jewellery business - Selling and distribution costs decreased by **18.3%** to **HK$5.8 million**, mainly due to enhanced control over sales expenses in the jewellery business[80](index=80&type=chunk) [General and Administrative Expenses](index=33&type=section&id=General%20and%20Administrative%20Expenses) This section reports a reduction in general and administrative expenses, primarily due to improved control over administrative costs in both the jewellery and property businesses - General and administrative expenses decreased by **15.4%** to **HK$19.2 million**, mainly due to enhanced control over administrative expenses in both the jewellery and property businesses[81](index=81&type=chunk) [Finance Costs](index=33&type=section&id=Finance%20Costs) This section indicates that finance costs remained consistent with the prior year, primarily comprising bank loan interest for the photovoltaic power generation and energy storage business - Finance costs were approximately **HK$0.8 million**, similar to the same period last year, mainly comprising bank loan interest for the photovoltaic power generation and energy storage business[82](index=82&type=chunk) [Share of Results of a Joint Venture](index=33&type=section&id=Share%20of%20Results%20of%20a%20Joint%20Venture) This section reports a significant increase in the share of profit from a joint venture, reflecting the Group's 50% equity interest in the photovoltaic power generation entity - The share of profit from a joint venture (Zhaoqing Shunzhiguang Power Technology Co., Ltd.) increased by **250%** to **HK$21,000**, reflecting the Group's 50% equity interest in the photovoltaic power generation business entity[83](index=83&type=chunk) [Income Tax Credit](index=33&type=section&id=Income%20Tax%20Credit%20%28Financial%20Review%29) This section notes a decrease in income tax credit, primarily due to the absence of a significant reversal of prior year PRC tax over-provision in the current period - Income tax credit decreased by **74.0%** to **HK$2.0 million**, mainly due to a substantial reversal of prior year PRC tax over-provision in the same period of 2024, which was absent in the same period of 2025[84](index=84&type=chunk) [Profit for the Period](index=33&type=section&id=Profit%20for%20the%20Period%20%28Financial%20Review%29) This section reports a significant decrease in profit for the period, attributed to the combined impact of various financial factors discussed previously - Profit for the period decreased by **68.3%** to **HK$8.0 million**, primarily due to the combined effect of the aforementioned factors[85](index=85&type=chunk) [Financial Assets at Fair Value Through Profit or Loss](index=34&type=section&id=Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) This section discusses the Group's use of gold and silver futures contracts to hedge inventory price fluctuations, detailing realised and unrealised losses and their impact on cash flow - The Group entered into gold and silver futures contracts (short positions) to hedge against the risk of fluctuations in inventory gold prices. For the six months ended June 30, 2025, realised losses of approximately **HK$7.4 million** and unrealised losses of approximately **HK$3.9 million** were recorded on gold futures contracts, along with unrealised losses of approximately **HK$0.6 million** on silver futures contracts[86](index=86&type=chunk) - The Company considers futures contracts to be an inherent measure commonly adopted in the industry to stabilise inventory costs, and their realised and unrealised losses are not expected to have a significant impact on cash flow and operations[87](index=87&type=chunk) [Liquidity and Financial Resources](index=34&type=section&id=Liquidity%20and%20Financial%20Resources) This section provides an overview of the Group's liquidity and financial resources, including current assets, liabilities, ratios, bank balances, and capital commitments Liquidity and Financial Resources Overview (As of June 30, 2025 vs December 31, 2024): | Indicator | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Current assets | 657,800 | 647,500 | | Current liabilities | 157,200 | 143,100 | | Current Ratio | 4.2 | 4.5 | | Bank Deposits | 105,900 | 112,900 | | Cash and Cash Equivalents | 67,600 | 44,800 | | Total Interest-bearing Bank Loans | 32,800 | 31,900 | | Capital Gearing Ratio | 0.05 | 0.05 | - The Group possesses sufficient working capital to support its ongoing operations and business development. Certain buildings and properties held for sale are pledged to secure bank loans and provide guarantees for credit facilities and buyer mortgage loans[90](index=90&type=chunk)[92](index=92&type=chunk)[94](index=94&type=chunk) - As of June 30, 2025, capital commitments for plant and machinery were zero, primarily due to the completion of photovoltaic power generation equipment installation[93](index=93&type=chunk) [Events After the Reporting Period](index=36&type=section&id=Events%20After%20the%20Reporting%20Period%20%28MD%26A%29) This section reiterates the controlling shareholder's privatization proposal and the Group's agreement to acquire a Hong Kong Golf Club membership after the reporting period - This section reiterates the controlling shareholder's proposed privatization and the Group's agreement to acquire a Hong Kong Golf Club membership on July 16, 2025[95](index=95&type=chunk) [Significant Acquisitions and Disposals of Subsidiaries and Associates](index=36&type=section&id=Significant%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%20and%20Associates) This section confirms that the Company did not undertake any significant acquisitions or disposals of subsidiaries and associates during the six months ended June 30, 2025 - For the six months ended June 30, 2025, the Company did not undertake any significant acquisitions or disposals of subsidiaries and associates[96](index=96&type=chunk) [Foreign Exchange Risk](index=37&type=section&id=Foreign%20Exchange%20Risk) This section assesses the Group's exposure to foreign exchange risk from HKD, USD, RMB, and AED, concluding that currency risk is not significant due to pegging arrangements - The Group is exposed to foreign exchange risk from HKD, USD, RMB, and AED, but as HKD and AED are pegged to USD, fluctuations in USD do not significantly impact operations and financial performance, thus currency risk is not material[97](index=97&type=chunk) [Employees and Remuneration Policy](index=37&type=section&id=Employees%20and%20Remuneration%20Policy) This section provides an overview of the Group's employee numbers and total staff costs, outlining its competitive remuneration, share option, and training policies to enhance performance Employee and Remuneration Overview (For the six months ended June 30): | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Total Employees | 100 | 133 | | Total Salaries and Related Costs (HK$ Thousand) | 11,900 | 14,500 | - The Group offers competitive remuneration packages, share option schemes, and training and development programs to encourage employees to enhance performance and adapt to industry developments[98](index=98&type=chunk) [Future Plans for Material Investments or Capital Assets](index=37&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) This section states that as of June 30, 2025, the Board has not authorized any significant investment or capital asset acquisition plans, but will continue to seek opportunities to enhance business profitability - As of June 30, 2025, the Board had not authorised any plans for material investments or additions of capital assets, but will continue to seek opportunities to enhance the profitability of its ordinary business[99](index=99&type=chunk) [Interim Dividend](index=38&type=section&id=Interim%20Dividend) This section states that the Board resolved not to declare any interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board resolved not to declare any interim dividend for the six months ended June 30, 2025 (consistent with the same period in 2024)[100](index=100&type=chunk) [Corporate Governance Practices](index=38&type=section&id=Corporate%20Governance%20Practices) This section confirms the Company's compliance with the Corporate Governance Code, noting an exception regarding the separation of Chairman and CEO roles, which the Board believes benefits group management - The Company has complied with the Corporate Governance Code set out in Appendix C1 to the Listing Rules, except for Code Provision C.2.1 (separation of the roles of chairman and chief executive)[101](index=101&type=chunk) - Mr. Kan Kin Kwong serves as both the Chairman of the Board and Chief Executive Officer, an arrangement the Board believes benefits the Group's management and business development, and will be continuously reviewed[101](index=101&type=chunk) [Standard of Conduct for Securities Transactions by Directors](index=38&type=section&id=Standard%20of%20Conduct%20for%20Securities%20Transactions%20by%20Directors) This section confirms that all Directors have complied with the Model Code for Securities Transactions by Directors of Listed Issuers for the six months ended June 30, 2025 - Following enquiry with all Directors, they have complied with the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules for the six months ended June 30, 2025[102](index=102&type=chunk) [Pre-emptive Rights](index=39&type=section&id=Pre-emptive%20Rights) This section clarifies that the Company's articles of association and Cayman Islands law do not contain provisions for pre-emptive rights, thus not requiring pro-rata new share offerings to existing shareholders - The Company's memorandum and articles of association and the laws of the Cayman Islands do not contain provisions for pre-emptive rights, and do not require the Company to offer new shares pro-rata to existing shareholders[103](index=103&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=39&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Listed%20Securities) This section reports the Company's repurchase and cancellation of 1,167,000 ordinary shares from the market during the six months ended June 30, 2025 - For the six months ended June 30, 2025, the Company repurchased and cancelled **1,167,000** ordinary shares from the market for a total consideration of **HK$200,000** (before expenses)[104](index=104&type=chunk) [Sufficiency of Public Float](index=39&type=section&id=Sufficiency%20of%20Public%20Float) This section confirms that the Company has maintained the sufficient public float required by the Listing Rules as of the latest practicable date prior to the announcement date - As of the latest practicable date prior to the date of this announcement, the Company has maintained a sufficient public float as required by the Listing Rules[105](index=105&type=chunk) [Audit Committee](index=39&type=section&id=Audit%20Committee) This section describes the composition and responsibilities of the Audit Committee, including its review of accounting principles, internal controls, risk management, and the interim results - The Audit Committee comprises three independent non-executive Directors, with Mr. Wong Wai Keung as Chairman. The Committee has reviewed and confirmed the accounting principles and practices adopted by the Group, and discussed audit, internal control, risk management, and financial reporting matters, including these interim results[106](index=106&type=chunk) [Auditor's Review](index=40&type=section&id=Auditor%27s%20Review) This section confirms that the Company's auditor, UHY Mac & Co., has reviewed the Group's unaudited interim results for the six months ended June 30, 2025, in accordance with HKSRE 2410 - UHY Mac & Co., the Company's auditor, has reviewed the Group's unaudited interim results for the six months ended June 30, 2025, in accordance with Hong Kong Standard on Review Engagements 2410[107](index=107&type=chunk) [Publication of Interim Results Announcement](index=40&type=section&id=Publication%20of%20Interim%20Results%20Announcement) This section states that the interim results announcement has been published on the Company's and Stock Exchange's websites, with the interim report to be dispatched to shareholders and published accordingly - This results announcement has been published on the Company's website (www.hkperjew.com.hk) and the Stock Exchange's website (www.hkexnews.hk). The interim report will be dispatched to shareholders and published on the aforementioned websites in due course[108](index=108&type=chunk) [Board of Directors](index=40&type=section&id=Board%20of%20Directors) This section lists the executive and independent non-executive directors comprising the Company's Board of Directors - The Company's executive Directors are Mr. Kan Kin Kwong, Ms. Shek Mei Chun, and Mr. Chung Chi Keung; the independent non-executive Directors are Dr. Ng Wang Pun, Ms. Ng Sin Kiu, and Mr. Wong Wai Keung[109](index=109&type=chunk)

執行董事 2025 中期報告 目錄 | | 公司資料 | | --- | --- | | | 管理層討論及分析 | | | 其他資料 | | | 綜合損益表 | | 21 | 綜合財務狀況表 | | 23 | 綜合權益變動表 | | | 簡明綜合現金流量表 | | | 未經審核中期財務報告附註 | | 38 | 釋義 | | 2 4 13 20 25 26 | | 天津建設發展集團股份公司 公司資料 Tianjin Construction Development Group Co., Ltd. (於中華人民共和國註冊成立的股份有限公司) 股份代號 : 2515 董事 審核委員會 趙匡華先生 （總裁） 李凱先生 （首席財務官） 關鳳丹女士 楊友華先生 倪拔群先生 蕭恕明先生 （主席） 嚴兵博士 劉金璐博士 非執行董事 王文彬先生 （主席） 獨立非執行董事 嚴兵博士 劉金璐博士 蕭恕明先生 監事 王玲女士（自2025年1月27日起辭任） 路曉亮先生 （主席） （自2025年1月27日起獲委任） 王磊先生 任飛宇先生 薪酬委員會 聯席公司秘書 李凱先生 呂穎一先生 (ACG, HKACG) 合規顧問 嚴兵博士 （ ...

截 至2025年6月30日 止 六 個 月 的 中 期 業 績 公 告 天 津 建 设 发 展 集 团 股 份 公 司（「本 公 司」，連 同 其 附 屬 公 司 統 稱「本 集 團」） 董 事（「董 事」）會（「董 事 會」）謹 此 宣 佈 本 集 團 截 至2025年6月30日 止 六 個 月 的未經審核綜合業績。本公告載有本公司2025年中期報告（「2025年中期報告」） 全文，並符合香港聯合交易所有限公司（「聯交所」）證券上市規則（「上市規則」） 有 關 中 期 業 績 初 步 公 告 附 載 資 料 的 相 關 規 定。 股 息 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 而 產 生 或 因 依 賴 該 等 內 容 而 引 致 的 任 何 損 失 承 擔 任 何 責 任。 天津建设发展集团股份公司 Tianjin Construction Developm ...

[Financial Performance Summary](index=1&type=section&id=Financial%20Performance%20Summary) [Financial Performance Summary](index=1&type=section&id=Financial%20Performance%20Summary) Edianyun Limited's unaudited interim results for the first half of 2025 show an 8.2% increase in revenue to RMB 699.6 million, with profit and total comprehensive income surging by 177.6% to RMB 45.745 million, alongside significant growth in adjusted net profit and adjusted EBITDA Financial Data Overview (Six Months Ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 699,640 | 646,888 | 8.2 | | Cost of sales | (411,700) | (369,917) | 11.3 | | Gross profit | 287,940 | 276,971 | 4.0 | | Profit before tax | 54,064 | 21,269 | 154.2 | | Profit and total comprehensive income for the period | 45,745 | 16,481 | 177.6 | | Adjusted net profit* | 51,179 | 30,714 | 66.6 | | Adjusted EBITDA* | 384,989 | 320,628 | 20.1 | *Note: Adjusted net profit is net profit after adding back share-based payment expenses; Adjusted EBITDA is EBITDA after adding back net finance costs, income tax expense, depreciation, amortization, and share-based payment expenses [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) In the first half of 2025, the company's revenue grew by 8.2% and gross profit by 4.0%, while sales and marketing, R&D, and general and administrative expenses all decreased, with general and administrative expenses seeing the largest reduction of 39.8%, leading to a significant 177.6% increase in profit and total comprehensive income for the period Key Profit or Loss Statement Data (Six Months Ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 699,640 | 646,888 | | Cost of sales | (411,700) | (369,917) | | Gross profit | 287,940 | 276,971 | | Sales and marketing expenses | (81,293) | (80,726) | | Research and development expenses | (29,978) | (32,987) | | General and administrative expenses | (42,622) | (70,830) | | Other income | 7,259 | 6,811 | | Net other gains and losses | (8,670) | (6,372) | | Impairment losses under expected credit loss model | (15,495) | (13,704) | | Finance costs | (63,077) | (57,894) | | Profit before tax | 54,064 | 21,269 | | Income tax expense | (8,319) | (4,788) | | Profit and total comprehensive income for the period | 45,745 | 16,481 | | Basic earnings per share (RMB) | 0.09 | 0.03 | | Diluted earnings per share (RMB) | 0.09 | 0.03 | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets slightly increased to RMB 3,515.6 million, total liabilities slightly decreased to RMB 2,253.2 million, and total equity increased to RMB 1,262.3 million, with significant increases in right-of-use assets under non-current assets and trade and other receivables under current assets Key Balance Sheet Data (As of June 30, 2025 vs December 31, 2024) | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | **Assets** | | | | Total non-current assets | 2,408,709 | 2,375,438 | | Total current assets | 1,106,858 | 1,138,377 | | **Total assets** | **3,515,567** | **3,513,815** | | **Equity and Liabilities** | | | | Total equity | 1,262,337 | 1,235,750 | | Total non-current liabilities | 900,983 | 897,603 | | Total current liabilities | 1,352,247 | 1,380,462 | | **Total liabilities** | **2,253,230** | **2,278,065** | | **Total equity and liabilities** | **3,515,567** | **3,513,815** | - Current assets were **RMB 245.4 million** less than current liabilities, but management believes there are sufficient financial resources for continuous operation in the next 12 months based on operating cash flow and financing plans[10](index=10&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=5&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) [1. General Information](index=5&type=section&id=1.%20General%20Information) The condensed consolidated financial statements are presented in Renminbi as both the functional and presentation currency - The condensed consolidated financial statements are presented in Renminbi, which is also the functional currency of the Company[9](index=9&type=chunk) [2. Basis of Preparation of Condensed Consolidated Financial Statements](index=5&type=section&id=2.%20Basis%20of%20Preparation%20of%20Condensed%20Consolidated%20Financial%20Statements) The condensed consolidated financial statements are prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and the HKEX Listing Rules; despite current assets being less than current liabilities, management believes the company can continue as a going concern based on cash flow forecasts and available financial resources - The statements are prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and the HKEX Listing Rules[10](index=10&type=chunk) - As of June 30, 2025, current assets were **RMB 245.4 million** less than current liabilities, but management expects sufficient financial resources to meet working capital needs for the next 12 months, thus preparing the statements on a going concern basis[10](index=10&type=chunk) [3. Accounting Policies](index=5&type=section&id=3.%20Accounting%20Policies) The condensed consolidated financial statements are prepared on a historical cost basis, except for financial instruments measured at fair value, and the application of IAS 21 (amended) "Lack of Exchangeability" had no material impact on financial position or performance - The condensed consolidated financial statements are prepared on a historical cost basis, except for certain financial instruments measured at fair value[11](index=11&type=chunk) - The revised International Accounting Standard 21 "Lack of Exchangeability" was first applied in the current period, but it had no material impact on the financial position and performance[12](index=12&type=chunk)[13](index=13&type=chunk) [4. Revenue and Segment Information](index=6&type=section&id=4.%20Revenue%20and%20Segment%20Information) The company's primary business is providing integrated office IT solutions and other services, with only one reportable segment; all revenue and non-current assets are derived from China, and total revenue for the first half of 2025 was RMB 699.6 million, an 8.2% increase, primarily driven by pay-per-use office IT integrated solutions - The company's main business is providing integrated office IT solutions and other services, with only one reportable segment[14](index=14&type=chunk) - All revenue and non-current assets are derived from China, with no single external customer accounting for more than **10%** of revenue[14](index=14&type=chunk) Revenue Composition (Six Months Ended June 30) | Revenue Source | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Pay-per-use office IT integrated solutions revenue | 625,893 | 576,875 | | Equipment sales | 67,915 | 64,077 | | SaaS and other services | 5,832 | 5,936 | | **Total** | **699,640** | **646,888** | - Within pay-per-use office IT integrated solutions revenue, **RMB 347.1 million** was recognized as lease income under IFRS 16, and **RMB 278.8 million** was from office IT technical subscription services[16](index=16&type=chunk) - Revenue recognition timing: equipment sales are recognized at a point in time, while office IT technical subscription services, SaaS, and other services are recognized over a period of time[17](index=17&type=chunk) [5. Other Income](index=9&type=section&id=5.%20Other%20Income) Other income for the first half of 2025 increased by 6.6% to RMB 7.259 million, primarily due to an increase in government grants Other Income Details (Six Months Ended June 30) | Income Source | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Bank interest income | 1,685 | 3,554 | | Installment sales receivables interest income | 362 | 598 | | Government grants | 4,046 | 1,293 | | Compensation income | 1,166 | 1,366 | | **Total** | **7,259** | **6,811** | - Government grants primarily came from Beijing and Chengdu local governments, supporting foreign-invested enterprises, high-tech enterprises, and employment stability[25](index=25&type=chunk) [6. Net Other Gains and Losses](index=9&type=section&id=6.%20Net%20Other%20Gains%20and%20Losses) Net other gains and losses for the first half of 2025 resulted in a loss of RMB 8.67 million, a 36.1% increase in loss compared to the same period last year, mainly due to increased write-off losses on leased computer equipment Net Other Gains and Losses Details (Six Months Ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Fair value changes in financial assets at fair value through profit or loss | 1,806 | 3,527 | | Subscription fees for financial assets at fair value through profit or loss | (718) | – | | Write-off losses on leased computer equipment | (8,580) | (11,218) | | Others | (1,178) | 1,319 | | **Total** | **(8,670)** | **(6,372)** | - Write-off losses on leased computer equipment refer to losses recognized when the company deems amounts unrecoverable from customers overdue for more than **6 months**[26](index=26&type=chunk) [7. Impairment Losses Under Expected Credit Loss Model, Net of Reversals](index=10&type=section&id=7.%20Impairment%20Losses%20Under%20Expected%20Credit%20Loss%20Model%2C%20Net%20of%20Reversals) Net impairment losses under the expected credit loss model for the first half of 2025 were RMB 15.495 million, a 13.1% increase year-on-year, primarily due to increased trade receivables driven by revenue growth Impairment Losses Details (Six Months Ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade receivables | 15,425 | 14,262 | | Other receivables | 70 | (558) | | **Total** | **15,495** | **13,704** | - The increase in impairment losses was mainly due to the increase in trade receivables resulting from the company's revenue growth[68](index=68&type=chunk) [8. Finance Costs](index=10&type=section&id=8.%20Finance%20Costs) Finance costs for the first half of 2025 were RMB 63.077 million, a 9.0% increase year-on-year, primarily due to increased financing scale driven by market expansion and higher equipment procurement, despite a decrease in financing interest rates Finance Costs Details (Six Months Ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest on borrowings | 46,539 | 43,531 | | Interest on lease liabilities | 16,538 | 14,363 | | **Total** | **63,077** | **57,894** | - The increase in finance costs was mainly due to the company's expanded market scale and increased equipment procurement, leading to an increase in financing scale[69](index=69&type=chunk) [9. Income Tax Expense](index=10&type=section&id=9.%20Income%20Tax%20Expense) Income tax expense for the first half of 2025 was RMB 8.319 million, a significant increase from RMB 4.788 million in the same period last year, primarily due to the recognition of deferred tax Income Tax Expense Details (Six Months Ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current corporate income tax | 188 | 153 | | Deferred tax | 8,131 | 4,635 | | **Total** | **8,319** | **4,788** | - The increase in income tax expense was mainly due to the recognition of deferred tax[70](index=70&type=chunk) [10. Earnings Per Share](index=11&type=section&id=10.%20Earnings%20Per%20Share) Both basic and diluted earnings per share for the first half of 2025 were RMB 0.09, a substantial increase from RMB 0.03 in the same period last year Earnings Per Share Data (Six Months Ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit for the period used to calculate basic earnings per share (RMB thousands) | 45,745 | 16,481 | | Weighted average number of ordinary shares used to calculate basic earnings per share | 529,106,424 | 577,795,367 | | Basic earnings per share (RMB) | 0.09 | 0.03 | | Diluted earnings per share (RMB) | 0.09 | 0.03 | - The **12,939,000** ordinary shares repurchased by the company in the first half of 2025 were not included in the calculation of basic earnings per share[29](index=29&type=chunk) - When calculating diluted earnings, some share options were not considered because their exercise price was higher than the average market price[30](index=30&type=chunk) [11. Dividends](index=11&type=section&id=11.%20Dividends) The Board of Directors decided not to pay dividends for the first half of 2025, consistent with the same period last year - No dividends were paid, declared, or proposed for the first half of 2025[31](index=31&type=chunk)[95](index=95&type=chunk) [12. Trade and Other Receivables and Prepayments](index=12&type=section&id=12.%20Trade%20and%20Other%20Receivables%20and%20Prepayments) As of June 30, 2025, total trade and other receivables and prepayments amounted to RMB 574.7 million, an increase from December 31, 2024, with current portion totaling RMB 410.4 million and non-current portion totaling RMB 164.4 million Trade and Other Receivables and Prepayments (As of June 30, 2025 vs December 31, 2024) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade receivables (net of allowance for credit losses) | 137,162 | 134,520 | | Other receivables and prepayments | 437,579 | 380,284 | | **Total** | **574,741** | **514,804** | | Total current portion | 410,381 | 339,695 | | Total non-current portion | 164,360 | 175,109 | - Trade receivables aging analysis shows that receivables within **30 days** accounted for the largest portion, at **RMB 113.8 million**[32](index=32&type=chunk) [13. Trade and Other Payables](index=13&type=section&id=13.%20Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables amounted to RMB 126.0 million, an increase from December 31, 2024, primarily due to an increase in trade payables Trade and Other Payables (As of June 30, 2025 vs December 31, 2024) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade payables | 63,508 | 34,907 | | Accrued salaries and welfare | 31,194 | 40,733 | | Others | 31,314 | 29,801 | | **Total** | **126,016** | **105,441** | - Trade payables aging analysis shows that payables within **12 months** accounted for the largest portion, at **RMB 49.305 million**[33](index=33&type=chunk) [14. Share Capital](index=14&type=section&id=14.%20Share%20Capital) As of June 30, 2025, the company's issued share capital was 533,987,643 shares, a decrease from January 1, 2025, primarily due to the repurchase and cancellation of 46,013,500 shares, partially offset by the exercise of share options which added 940,627 shares Share Capital Changes (As of June 30, 2025) | Item | Number of Shares | Amount (USD) | Amount (RMB thousands) | | :--- | :--- | :--- | :--- | | January 1, 2025 (audited) | 579,060,516 | 28,954 | 200 | | Exercise of share options | 940,627 | 47 | – * | | Shares repurchased and cancelled | (46,013,500) | (2,301) | (17) | | June 30, 2025 (unaudited) | 533,987,643 | 26,700 | 183 | - **46,013,500** shares were repurchased and cancelled, leading to a reduction in share capital[34](index=34&type=chunk) [Management Discussion and Analysis](index=15&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=15&type=section&id=Business%20Review) In the first half of 2025, the company solidified its position as an enterprise IT productivity partner by providing one-stop, reliable, and flexible office IT integrated solutions, achieving growth in active customers and in-service equipment, with primary revenue from pay-per-use office IT integrated solutions, equipment sales, and SaaS and other services - The company's mission is "making office IT easier," providing IT equipment with systems and software installed, along with managed IT services, through one-stop office IT solutions[35](index=35&type=chunk) - Competitive advantages include reliability (fastest nationwide service capability), flexibility (pay-per-use subscription model), and one-stop service[36](index=36&type=chunk) - Primary revenue sources include pay-per-use office IT integrated solutions, equipment sales, and SaaS and other services[35](index=35&type=chunk) - Pay-per-use office IT integrated solutions offer a comprehensive package including hardware, equipment configuration, deployment, operation and maintenance support, performance optimization, and equipment management[38](index=38&type=chunk) - Equipment sales include installment purchases of new equipment, subscription customers buying out used equipment, and selling used equipment through the online bidding platform "Yipaiji"[38](index=38&type=chunk) - The SaaS product "Yipandian" aims to help enterprise customers manage assets and inventory, charging an annual subscription fee[38](index=38&type=chunk) [Disclosure of Key Operating Data](index=17&type=section&id=Disclosure%20of%20Key%20Operating%20Data) As of June 30, 2025, active customer numbers and in-service equipment quantities continued to grow, with average monthly subscription fees per subscriber and average subscribed units per customer both increasing, while net cash retention rate remained high, indicating strong customer loyalty Key Operating Indicators (As of June 30) | Indicator | 2024 | December 31, 2024 | 2025 | | :--- | :--- | :--- | :--- | | Active customers | 49,737 | 51,024 | 52,357 | | Subscription customers | 48,705 | 50,180 | 51,769 | | Core customers | 26,436 | 27,529 | 27,709 | | SaaS customers | 2,118 | 2,164 | 2,043 | | In-service equipment | 1,329,721 | 1,374,200 | 1,480,599 | | Subscribed equipment | 1,307,215 | 1,352,687 | 1,464,452 | Key Operating Indicators (Six Months Ended June 30) | Indicator | 2024 | 2025 | | :--- | :--- | :--- | | Average monthly subscription fee per subscriber | 1,974 | 2,015 | | Average subscribed units per subscriber | 26.8 | 28.3 | | Number of equipment sold | 48,293 | 59,941 | | Net cash retention rate | 88.8% | 96.8% | | Net cash retention rate for pay-per-use office IT integrated solutions | 90.0% | 96.4% | - Equipment utilization rate remained high at **88.9%**, with idle equipment reduced through comprehensive inventory management measures[41](index=41&type=chunk) [Increase in Customer Numbers and Improvement in New Customer Quality](index=19&type=section&id=Increase%20in%20Customer%20Numbers%20and%20Improvement%20in%20New%20Customer%20Quality) In the first half of 2025, active customer numbers grew by 5.3% to 52,357, and core customer numbers increased by 4.8% to 27,709, with the proportion of in-service equipment for core customers rising to 86.5%, driven by more effective sales strategies, new product development, enhanced technological and scale advantages, and optimized service capabilities - Active customer numbers grew by **5.3%** to **52,357**, and core customer numbers increased by **4.8%** to **27,709**[42](index=42&type=chunk)[43](index=43&type=chunk) - The proportion of in-service equipment for core customers increased from **86.2%** in the first half of 2024 to **86.5%** in the first half of 2025[43](index=43&type=chunk) - Growth drivers include more effective sales strategies, new product development and flexible product strategies, technological and scale advantages (the "Xingyun" system), and optimized service capabilities[42](index=42&type=chunk) - With over **1.48 million** in-service equipment, increased customer density optimized engineer service efficiency and quality, leading to a stable increase in customer retention rate[43](index=43&type=chunk) [Impact of Macroeconomic Conditions and New Product Development](index=20&type=section&id=Impact%20of%20Macroeconomic%20Conditions%20and%20New%20Product%20Development) Facing the demand for cost reduction and efficiency improvement among SMEs amidst a "weak recovery" macroeconomic trend, the company launched its own-brand IT equipment in the first half of 2025, significantly reducing monthly subscription fees and successfully increasing the average subscribed units per old customer from **29** to **31** - The "weak recovery" macroeconomic environment led SMEs to seek cost reduction and efficiency improvement, putting pressure on average monthly subscription fees[44](index=44&type=chunk) - The company launched its own-brand IT equipment with lower monthly subscription fees to meet SME office IT needs and adapt to the transformation of PC demand in the AI era[44](index=44&type=chunk) - The combined effect of new products and sales strategies increased the average subscribed units per old customer from **29** to **31**[44](index=44&type=chunk) [AI Business Implementation and Active Exploration](index=20&type=section&id=AI%20Business%20Implementation%20and%20Active%20Exploration) Responding to the surge in AI hardware demand driven by the explosion of large AI models, the company launched its self-developed Edianyun AP series workstations, supporting local deployment of large models, which received enthusiastic market response and were in short supply, helping SMEs embrace the AI wave at low cost, with continued deep cultivation in the AI field planned for the future - Observing rising market demand for AI PC hardware, the company launched its self-developed Edianyun AP series workstations, supporting local deployment of large models like DeepSeek[45](index=45&type=chunk) - Upon launch, this product generated significant subscription demand, leading to supply shortages, and helped SMEs achieve local deployment of large models at the lowest cost[45](index=45&type=chunk) - The company plans to continue deep cultivation in the AI field, leveraging its main business to connect with SME customer groups and help them build their own AI capabilities[45](index=45&type=chunk) [Outlook](index=21&type=section&id=Outlook) The company will continue to focus on product enhancement, planning to launch key products in the second half of the year, optimize sales teams and strategies, increase R&D investment in remanufacturing technology, and sustain its ESG attributes; despite ongoing challenges for SME recovery, the company's business has returned to a growth trajectory, with office IT integrated solutions market penetration expected to continue increasing - The company will focus on product enhancement, planning to launch several key products in the second half of 2025, and actively respond to customer feedback to optimize its product matrix[46](index=46&type=chunk) - Sales team operations will be strengthened through recruitment and training of sales talent, and AI-based business analytics will be used to optimize sales processes and strategies[46](index=46&type=chunk) - Continued investment and R&D in remanufacturing technology will enhance digital intelligence capabilities, reduce costs, and provide a higher quality equipment experience[47](index=47&type=chunk) - The main business possesses ESG attributes, extending equipment lifespan through remanufacturing technology, reducing waste and carbon emissions[47](index=47&type=chunk) - Significant growth in active customers and in-service equipment indicates the company has overcome adverse factors and returned to a growth trajectory, with office IT integrated solutions market penetration expected to continue increasing[48](index=48&type=chunk) [Significant Events After the Reporting Period](index=22&type=section&id=Significant%20Events%20After%20the%20Reporting%20Period) [Significant Events After the Reporting Period](index=22&type=section&id=Significant%20Events%20After%20the%20Reporting%20Period) After the reporting period, between June 6 and July 9, 2025, the company subscribed to wealth management products totaling USD 26,534,700 to utilize surplus cash reserves, with an expected annualized return of 2%-4.5%, an investment period of no more than one year, and redeemable at any time - The company subscribed to cash management wealth management products totaling **USD 26,534,700** between June 6 and July 9, 2025[49](index=49&type=chunk) - These wealth management products have an expected annualized return of **2%-4.5%**, an investment period of no more than **one year**, are redeemable at any time, and carry low risk[84](index=84&type=chunk) - The subscription funds came from the Group's surplus cash reserves, aiming to enhance capital utilization and increase income from idle funds[49](index=49&type=chunk)[83](index=83&type=chunk) [Financial Review](index=22&type=section&id=Financial%20Review) [Revenue](index=22&type=section&id=Revenue) Total revenue for the first half of 2025 was RMB 699.6 million, an 8.2% year-on-year increase, primarily driven by pay-per-use office IT integrated solutions revenue, which accounted for 89.5% and grew by 8.5%, while equipment sales revenue increased by 6.0% and SaaS and other services revenue slightly decreased by 1.8% - Revenue for the first half of 2025 was **RMB 699.6 million**, an **8.2%** year-on-year increase, mainly due to increased revenue from pay-per-use office IT integrated solutions[50](index=50&type=chunk) Revenue Composition and Growth (Six Months Ended June 30) | Revenue Source | 2025 (RMB thousands) | Share (%) | 2024 (RMB thousands) | Share (%) | Growth (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Pay-per-use office IT integrated solutions | 625,893 | 89.5% | 576,875 | 89.2% | 8.5% | | Equipment sales | 67,915 | 9.7% | 64,077 | 9.9% | 6.0% | | SaaS and other services | 5,832 | 0.8% | 5,936 | 0.9% | -1.8% | | **Total** | **699,640** | **100.0%** | **646,888** | **100.0%** | **8.2%** | [Pay-per-use Office IT Integrated Solutions](index=23&type=section&id=Pay-per-use%20Office%20IT%20Integrated%20Solutions) In the first half of 2025, revenue from this business was RMB 625.9 million, an 8.5% year-on-year increase, primarily benefiting from effective sales strategies, improved sales efficiency, and rapid growth in customer numbers and average subscribed units per customer - Revenue increased by **8.5%** year-on-year to **RMB 625.9 million**[53](index=53&type=chunk) - Growth was mainly attributable to effective sales strategies, significant improvement in sales efficiency, and rapid growth in customer numbers and average subscribed units per customer[53](index=53&type=chunk) [Equipment Sales](index=23&type=section&id=Equipment%20Sales) In the first half of 2025, equipment sales revenue was RMB 67.915 million, a 6.0% year-on-year increase, primarily due to an increase in the volume of equipment sold - Revenue increased by **6.0%** year-on-year to **RMB 67.915 million**[54](index=54&type=chunk) - Growth was mainly due to an increase in the volume of equipment sold compared to the same period[54](index=54&type=chunk) [SaaS and Other Services](index=23&type=section&id=SaaS%20and%20Other%20Services) In the first half of 2025, SaaS and other services revenue was RMB 5.832 million, a 1.8% year-on-year decrease, primarily due to reduced system development revenue and external maintenance services - Revenue decreased by **1.8%** year-on-year to **RMB 5.832 million**[55](index=55&type=chunk) - The decrease was mainly due to reduced system development revenue and external maintenance services[55](index=55&type=chunk) [Cost of Sales](index=23&type=section&id=Cost%20of%20Sales) Cost of sales for the first half of 2025 was RMB 411.7 million, an 11.3% year-on-year increase, primarily due to increased equipment depreciation costs, with pay-per-use office IT integrated solutions accounting for the largest portion and growing by 12.3% - Cost of sales increased by **11.3%** year-on-year to **RMB 411.7 million**[56](index=56&type=chunk) - Primarily due to increased equipment depreciation costs[56](index=56&type=chunk) Cost of Sales Composition (Six Months Ended June 30) | Cost Source | 2025 (RMB thousands) | Share (%) | 2024 (RMB thousands) | Share (%) | | :--- | :--- | :--- | :--- | :--- | | Pay-per-use office IT integrated solutions | 338,890 | 82.3% | 301,701 | 81.6% | | Equipment sales | 70,613 | 17.2% | 66,963 | 18.1% | | SaaS and other services | 2,197 | 0.5% | 1,253 | 0.3% | | **Total** | **411,700** | **100.0%** | **369,917** | **100.0%** | [Pay-per-use Office IT Integrated Solutions](index=24&type=section&id=Pay-per-use%20Office%20IT%20Integrated%20Solutions) In the first half of 2025, the cost of sales for this business was RMB 338.9 million, a 12.3% year-on-year increase, primarily due to increased depreciation costs resulting from the growth in subscribed equipment - Cost of sales increased by **12.3%** year-on-year to **RMB 338.9 million**[57](index=57&type=chunk) - Mainly due to increased depreciation costs resulting from the growth in subscribed equipment[57](index=57&type=chunk) [Equipment Sales](index=24&type=section&id=Equipment%20Sales) In the first half of 2025, equipment sales cost of sales was RMB 70.613 million, a 5.5% year-on-year increase, primarily due to an increase in the volume of equipment sold - Cost of sales increased by **5.5%** year-on-year to **RMB 70.613 million**[58](index=58&type=chunk) - Mainly due to an increase in the volume of equipment sold compared to the same period[58](index=58&type=chunk) [Gross Profit and Gross Profit Margin](index=24&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) Gross profit for the first half of 2025 increased by 4.0% to RMB 287.9 million, but the gross profit margin decreased from 42.8% to 41.2%, primarily due to increased depreciation costs for pay-per-use office IT integrated solutions, while the loss rate for equipment sales decreased - Gross profit increased by **4.0%** year-on-year to **RMB 287.9 million**[59](index=59&type=chunk) - Gross profit margin decreased from **42.8%** to **41.2%**[59](index=59&type=chunk) Gross Profit and Gross Profit Margin (Six Months Ended June 30) | Business Segment | 2025 Gross Profit (RMB thousands) | 2025 Gross Profit Margin (%) | 2024 Gross Profit (RMB thousands) | 2024 Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | :--- | | Pay-per-use office IT integrated solutions | 287,003 | 45.9% | 275,174 | 47.7% | | Equipment sales | (2,698) | (4.0%) | (2,886) | (4.5%) | | SaaS and other services | 3,635 | 62.3% | 4,683 | 78.9% | | **Total Gross Profit / Total Gross Profit Margin** | **287,940** | **41.2%** | **276,971** | **42.8%** | [Pay-per-use Office IT Integrated Solutions](index=25&type=section&id=Pay-per-use%20Office%20IT%20Integrated%20Solutions) In the first half of 2025, gross profit for this business increased by 4.3% to RMB 287.0 million, but the gross profit margin decreased from 47.7% to 45.9%, primarily due to increased depreciation costs resulting from the growth in equipment numbers - Gross profit increased by **4.3%** year-on-year to **RMB 287.0 million**[62](index=62&type=chunk) - Gross profit margin decreased from **47.7%** to **45.9%**, mainly due to increased depreciation costs resulting from the growth in equipment numbers[62](index=62&type=chunk) [Equipment Sales](index=25&type=section&id=Equipment%20Sales) In the first half of 2025, equipment sales loss decreased by 6.5% to RMB 2.7 million, and the loss rate decreased from 4.5% to 4.0%, primarily due to the company adjusting its sales strategies and product categories based on market conditions - Equipment sales loss decreased by **6.5%** to **RMB 2.7 million**[63](index=63&type=chunk) - The loss rate decreased from **4.5%** to **4.0%**, mainly due to the company adjusting its sales strategies and product categories according to market conditions[63](index=63&type=chunk) [Research and Development Expenses](index=25&type=section&id=Research%20and%20Development%20Expenses) Research and development expenses for the first half of 2025 were RMB 30.0 million, a 9.1% year-on-year decrease, primarily due to lower cloud server costs and improved bargaining power - Research and development expenses decreased by **9.1%** year-on-year to **RMB 30.0 million**[64](index=64&type=chunk) - Mainly due to lower cloud server costs and improved bargaining power[64](index=64&type=chunk) [General and Administrative Expenses](index=26&type=section&id=General%20and%20Administrative%20Expenses) General and administrative expenses for the first half of 2025 were RMB 42.6 million, a significant 39.8% year-on-year decrease, primarily due to reduced share-based payment expenses and improved office efficiency through AI tools - General and administrative expenses significantly decreased by **39.8%** year-on-year to **RMB 42.6 million**[65](index=65&type=chunk) - Mainly due to reduced share-based payment expenses and improved overall office efficiency through the use of AI tools[65](index=65&type=chunk) [Other Income](index=26&type=section&id=Other%20Income) Other income for the first half of 2025 was RMB 7.3 million, a 6.6% year-on-year increase, primarily due to increased government grants from Beijing and Chengdu local governments supporting foreign-invested enterprises - Other income increased by **6.6%** year-on-year to **RMB 7.3 million**[66](index=66&type=chunk) - Mainly due to increased grants received from Beijing and Chengdu local governments to support foreign-invested enterprises during the period[66](index=66&type=chunk) [Other Gains and Losses](index=26&type=section&id=Other%20Gains%20and%20Losses) Net other gains and losses for the first half of 2025 resulted in a loss of RMB 8.7 million, a 36.1% increase in loss compared to the same period last year, primarily due to increased write-off losses on leased computer equipment - Net loss was **RMB 8.7 million**, a **36.1%** increase in loss compared to the same period last year[67](index=67&type=chunk) - Mainly due to increased write-off losses on leased computer equipment[67](index=67&type=chunk) [Impairment Losses Under Expected Credit Loss Model, Net of Reversals](index=26&type=section&id=Impairment%20Losses%20Under%20Expected%20Credit%20Loss%20Model%2C%20Net%20of%20Reversals) Net impairment losses under the expected credit loss model for the first half of 2025 were RMB 15.5 million, a 13.1% year-on-year increase, primarily due to increased trade receivables driven by revenue growth - Net impairment losses were **RMB 15.5 million**, an increase of **RMB 1.8 million** compared to the same period last year[68](index=68&type=chunk) - Mainly due to the increase in trade receivables resulting from the company's revenue growth[68](index=68&type=chunk) [Finance Costs](index=27&type=section&id=Finance%20Costs) Finance costs for the first half of 2025 were RMB 63.1 million, a 9.0% year-on-year increase, primarily due to expanded financing scale driven by market expansion and higher equipment procurement, despite a continuous decrease in financing interest rates - Finance costs increased by **9.0%** year-on-year to **RMB 63.1 million**[69](index=69&type=chunk) - Mainly due to the company's expanded market scale and increased equipment procurement, leading to an increase in the Group's financing scale, while financing interest rates continued to decline[69](index=69&type=chunk) [Income Tax Expense](index=27&type=section&id=Income%20Tax%20Expense) Income tax expense for the first half of 2025 was RMB 8.3 million, a significant increase from RMB 4.8 million in the same period last year, primarily due to the recognition of deferred tax - Income tax expense was **RMB 8.3 million**, an increase compared to **RMB 4.8 million** in the same period last year[70](index=70&type=chunk) - The tax expense recorded during the reporting period was mainly due to the recognition of deferred tax[70](index=70&type=chunk) [Profit and Total Comprehensive Income for the Period](index=27&type=section&id=Profit%20and%20Total%20Comprehensive%20Income%20for%20the%20Period) Profit and total comprehensive income for the first half of 2025 was RMB 45.7 million, a substantial 177.6% increase from RMB 16.5 million in the same period last year - Profit and total comprehensive income for the period was **RMB 45.7 million**, an increase of **RMB 29.3 million** compared to the same period last year[71](index=71&type=chunk) [Adjusted Profit (Non-IFRS Measure)](index=27&type=section&id=Adjusted%20Profit%20(Non-IFRS%20Measure)) Adjusted net profit for the first half of 2025 was RMB 51.179 million, a 66.6% year-on-year increase, primarily adjusted by adding back share-based payment expenses Adjusted Net Profit Reconciliation (Six Months Ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit and total comprehensive income for the period | 45,745 | 16,481 | | Add: Share-based payment expenses | 5,434 | 14,233 | | **Adjusted net profit** | **51,179** | **30,714** | [EBITDA and Adjusted EBITDA (Non-IFRS Measure)](index=28&type=section&id=EBITDA%20and%20Adjusted%20EBITDA%20(Non-IFRS%20Measure)) EBITDA for the first half of 2025 was RMB 379.6 million, and adjusted EBITDA was RMB 385.0 million, representing year-on-year increases of 23.9% and 20.1%, respectively EBITDA and Adjusted EBITDA Reconciliation (Six Months Ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit and total comprehensive income for the period | 45,745 | 16,481 | | Add: Net finance costs | 61,392 | 54,340 | | Add: Income tax expense | 8,319 | 4,788 | | Add: Depreciation | 263,860 | 230,581 | | Add: Amortization | 239 | 205 | | **EBITDA** | **379,555** | **306,395** | | Add: Share-based payment expenses | 5,434 | 14,233 | | **Adjusted EBITDA** | **384,989** | **320,628** | [Capital Management, Financing and Financial Policies](index=29&type=section&id=Capital%20Management%2C%20Financing%20and%20Financial%20Policies) [Capital Management, Financing and Financial Policies](index=29&type=section&id=Capital%20Management%2C%20Financing%20and%20Financial%20Policies) The company is committed to maintaining its ability to continue as a going concern and providing returns to shareholders, supporting business expansion and working capital needs through prudent financing and financial policies; as of June 30, 2025, cash and cash equivalents decreased, borrowings increased, and the gearing ratio improved - The company's capital management objective is to maintain its ability to continue as a going concern, provide returns to shareholders, and adjust its capital structure through issuing new shares, bonds, bank borrowings, and other means[74](index=74&type=chunk) - Prudent financing and financial policies are adopted to maintain sufficient cash flow to support business expansion, capital expenditures, and general working capital needs[74](index=74&type=chunk) [Cash Position](index=29&type=section&id=Cash%20Position) As of June 30, 2025, cash and cash equivalents were RMB 400.6 million, a decrease from RMB 556.7 million as of December 31, 2024 - Cash and cash equivalents decreased from **RMB 556.7 million** as of December 31, 2024, to **RMB 400.6 million** as of June 30, 2025[75](index=75&type=chunk) - Cash and cash equivalents are primarily denominated in Renminbi, Hong Kong Dollars, and US Dollars[75](index=75&type=chunk) [Borrowings](index=29&type=section&id=Borrowings) As of June 30, 2025, the company's total borrowings were RMB 1,488.6 million, with approximately RMB 892.9 million due within one year; the average borrowing balance increased by 7.7% year-on-year, and borrowing interest rates ranged from 2.15% to 12%, a decrease from the previous year - As of June 30, 2025, total borrowings were **RMB 1,488.6 million**[76](index=76&type=chunk) - Approximately **RMB 892.9 million** is due within **one year**[76](index=76&type=chunk) - The average balance of current and non-current borrowings was **RMB 1,552.7 million**, an increase of **7.7%** compared to the same period last year[76](index=76&type=chunk) - Borrowing interest rates ranged from **2.15%** to **12%**, a decrease from **3.15%** to **12%** in the same period last year[77](index=77&type=chunk) [Gearing Ratio](index=30&type=section&id=Gearing%20Ratio) As of June 30, 2025, the company's gearing ratio was 160.9%, an improvement from 168.5% as of December 31, 2024 - The gearing ratio decreased from **168.5%** as of December 31, 2024, to **160.9%** as of June 30, 2025[78](index=78&type=chunk) [Foreign Exchange and Exchange Rate Risk](index=30&type=section&id=Foreign%20Exchange%20and%20Exchange%20Rate%20Risk) The company primarily operates in China, with most income and expenses denominated in Renminbi, but some bank balances, financial assets, and liabilities are denominated in foreign currencies, exposing it to foreign exchange risk; currently, there is no hedging policy, but management continuously monitors the situation - The company primarily operates in China, with most income and expenses denominated in Renminbi[79](index=79&type=chunk) - Some bank balances, financial assets, and liabilities are denominated in foreign currencies, exposing the company to foreign exchange risk[79](index=79&type=chunk) - Currently, there is no foreign currency hedging policy, but management will monitor and consider future hedging measures[79](index=79&type=chunk) [Contingent Liabilities](index=30&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the company had no significant contingent liabilities - As of June 30, 2025, the company had no significant contingent liabilities[80](index=80&type=chunk) [Pledge of Group Assets](index=30&type=section&id=Pledge%20of%20Group%20Assets) As of June 30, 2025, the company pledged leased computer equipment and right-of-use assets with a net book value of approximately RMB 1,562.6 million as collateral for bank borrowings and other financial institution financing - As of June 30, 2025, the company pledged leased computer equipment and right-of-use assets with a net book value of approximately **RMB 1,562.6 million** as collateral for bank borrowings and other financial institution financing[81](index=81&type=chunk) [Capital Expenditures](index=30&type=section&id=Capital%20Expenditures) Capital expenditures for the first half of 2025 were RMB 386.4 million, a decrease from RMB 426.0 million in the same period last year, primarily used for the acquisition of leased computer equipment and right-of-use assets, funded mainly by cash flow from customer subscriptions and borrowings - Capital expenditures for the first half of 2025 were **RMB 386.4 million**, a decrease from **RMB 426.0 million** in the same period last year[82](index=82&type=chunk) - Capital expenditures were primarily used for the acquisition of leased computer equipment (**RMB 177.7 million**) and right-of-use assets (**RMB 208.7 million**)[82](index=82&type=chunk) - Funds were primarily provided by cash flow from customer subscriptions, bank, and other borrowings[82](index=82&type=chunk) [Significant Investments Held](index=31&type=section&id=Significant%20Investments%20Held) [Significant Investments Held](index=31&type=section&id=Significant%20Investments%20Held) After the reporting period, between June 6 and July 9, 2025, the company subscribed to low-risk cash management wealth management products totaling USD 26,534,700 to enhance capital utilization and increase income from idle funds; as of June 30, 2025, the fair value of these products was RMB 143.3 million, accounting for approximately 4.1% of total assets - The company subscribed to cash management wealth management products totaling **USD 26,534,700** between June 6 and July 9, 2025[84](index=84&type=chunk) - These products have an expected annualized return of **2%-4.5%**, an investment period of no more than **one year**, are redeemable at any time, and carry low risk[84](index=84&type=chunk) - As of June 30, 2025, the fair value of these wealth management products was **RMB 143.3 million**, accounting for approximately **4.1%** of total assets[84](index=84&type=chunk) - As of June 30, 2025, the company had no significant investments accounting for **5%** or more of total assets[85](index=85&type=chunk) [Material Acquisitions and Disposals](index=31&type=section&id=Material%20Acquisitions%20and%20Disposals) [Material Acquisitions and Disposals](index=31&type=section&id=Material%20Acquisitions%20and%20Disposals) For the first half of 2025 and up to the date of this announcement, the company had no material acquisitions or disposals of subsidiaries, associates, or joint ventures - For the first half of 2025 and up to the date of this announcement, the company had no material acquisitions or disposals of subsidiaries, associates, or joint ventures[86](index=86&type=chunk) [Employees and Remuneration](index=32&type=section&id=Employees%20and%20Remuneration) [Employees and Remuneration](index=32&type=section&id=Employees%20and%20Remuneration) As of June 30, 2025, the company had 1,238 full-time employees, a decrease from December 31, 2024; the company offers competitive compensation and benefits, diverse training, and implements share option schemes to attract and incentivize talent - As of June 30, 2025, the company had **1,238** full-time employees, a decrease from **1,430** as of December 31, 2024[88](index=88&type=chunk) - Employee remuneration (excluding directors) for the first half of 2025 was approximately **RMB 136 million**, a decrease from **RMB 144 million** in the same period last year[88](index=88&type=chunk) - The company offers competitive compensation, performance bonuses, and other incentives, and provides regular internal training for employees[88](index=88&type=chunk)[89](index=89&type=chunk) - The company adopted a pre-IPO share option scheme and a 2023 share scheme, aiming to attract, incentivize, and retain talent[90](index=90&type=chunk)[91](index=91&type=chunk) - On April 22, 2025, the Board conditionally granted share options and share awards to Dr. Ji Pengcheng and Mr. Zhang Bin, linked to business and financial milestones such as subscribed equipment quantity, monthly revenue, and gross profit[92](index=92&type=chunk) - On June 13, 2025, the company granted a total of **5,760,000** share options and **2,821,400** share awards to **146** eligible participants[94](index=94&type=chunk) [Other Information](index=34&type=section&id=Other%20Information) [Interim Dividend](index=34&type=section&id=Interim%20Dividend) The Board of Directors decided not to pay any interim dividend for the first half of 2025 - The Board of Directors does not recommend the payment of any interim dividend for the six months ended June 30, 2025[95](index=95&type=chunk) [Corporate Governance Code](index=35&type=section&id=Corporate%20Governance%20Code) The company has complied with all applicable provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules, but the roles of Chairman and Chief Executive Officer are combined and held by Dr. Ji Pengcheng, which the Board believes provides strong and consistent leadership for the company, with adequate checks and balances in place - The company has complied with all applicable provisions of the Corporate Governance Code[96](index=96&type=chunk) - The roles of Chairman and Chief Executive Officer are combined and held by Dr. Ji Pengcheng, which deviates from code provision C.2.1[97](index=97&type=chunk) - The Board believes this arrangement provides strong and consistent leadership for the company, and adequate checks and balances are in place (e.g., independent non-executive directors, Board decisions requiring majority approval)[97](index=97&type=chunk)[98](index=98&type=chunk) [Compliance with the Model Code for Securities Transactions by Directors](index=36&type=section&id=Compliance%20with%20the%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors) Following specific inquiries, all Directors confirmed that they have complied with the required standards set out in the Model Code for Securities Transactions by Directors in Appendix C3 of the Listing Rules for the six months ended June 30, 2025 - All Directors confirmed that they have complied with the required standards set out in the Model Code for the six months ended June 30, 2025[100](index=100&type=chunk) [Audit Committee](index=36&type=section&id=Audit%20Committee) The Audit Committee comprises three independent non-executive directors, with Mr. Wang Jingbo as Chairman; the committee has reviewed the company's unaudited condensed consolidated interim financial statements and interim results announcement for the first half of 2025, and the independent auditor has reviewed the condensed consolidated financial statements in accordance with International Standard on Review Engagements 2410 - The Audit Committee comprises three independent non-executive directors, with Mr. Wang Jingbo as Chairman of the committee[101](index=101&type=chunk) - The committee has reviewed the company's unaudited condensed consolidated interim financial statements and interim results announcement for the first half of 2025[101](index=101&type=chunk) - The independent auditor, Deloitte Touche Tohmatsu, has reviewed the condensed consolidated financial statements in accordance with International Standard on Review Engagements 2410[101](index=101&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=37&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) In the first half of 2025, the company repurchased and cancelled a total of 46,013,500 ordinary shares on the Stock Exchange for a total consideration (before expenses) of HKD 26,371,999, aiming to enhance net asset value per share and/or earnings per share; as of the date of this announcement, the company held 13,637,000 treasury shares - In the first half of 2025, the company repurchased a total of **14,792,500** ordinary shares on the Stock Exchange for a total consideration (before expenses) of **HKD 26,371,999**[102](index=102&type=chunk) - The share repurchases aimed to enhance net asset value per share and/or earnings per share[102](index=102&type=chunk) - As of June 30, 2025, the company cancelled a total of **46,013,500** treasury shares[102](index=102&type=chunk) - As of the date of this announcement, the company held **13,637,000** treasury shares[102](index=102&type=chunk) [Material Litigation](index=37&type=section&id=Material%20Litigation) For the first half of 2025 and up to the date of this announcement, the company was not involved in any material litigation or arbitration, and the Directors were not aware of any pending or threatened material litigation or claims - For the first half of 2025 and up to the date of this announcement, the company was not involved in any material litigation or arbitration[103](index=103&type=chunk) [Use of Proceeds from Global Offering](index=38&type=section&id=Use%20of%20Proceeds%20from%20Global%20Offering) The net proceeds from the global offering were approximately HKD 97.0 million, of which HKD 83.9 million had been utilized as of June 30, 2025, primarily for market promotion, sales and service network improvements, R&D and diversification of service content, enhancing remanufacturing capabilities and operational efficiency, working capital, and general corporate purposes; the remaining proceeds are expected to be utilized by the end of 2025 - The net proceeds from the global offering were approximately **HKD 97.0 million**[105](index=105&type=chunk) - As of June 30, 2025, **HKD 83.9 million** had been utilized, with **HKD 13.1 million** remaining unutilized[105](index=105&type=chunk) Use of Proceeds and Utilization (As of June 30, 2025) | Intended Use | Percentage (%) | Available (HKD millions) | Utilized (HKD millions) | Unutilized (HKD millions) | Expected Timeline | | :--- | :--- | :--- | :--- | :--- | :--- | | Investment in market promotion and sales and service network improvements | 40.0 | 38.8 | 29.8 | 9.0 | By end of 2025 | | Investment in R&D and diversification of service content | 30.0 | 29.1 | 25.0 | 4.1 | By end of 2025 | | Enhancing remanufacturing capabilities and operational efficiency | 20.0 | 19.4 | 19.4 | 0.0 | - | | Working capital and general corporate purposes | 10.0 | 9.7 | 9.7 | 0.0 | - | | **Total** | **100.0** | **97.0** | **83.9** | **13.1** | | - Unutilized proceeds are intended to be placed in interest-bearing accounts and comply with China's foreign exchange registration and remittance laws[106](index=106&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=39&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) This interim results announcement has been published on the HKEX website and the company's website, and the interim report for the six months ended June 30, 2025, will also be available on these websites - The interim results announcement has been published on the HKEX website (www.hkexnews.hk) and the company's website (http://edianyun.com)[107](index=107&type=chunk) - The interim report for the six months ended June 30, 2025, will be available on the aforementioned websites[107](index=107&type=chunk) [By Order of the Board](index=39&type=section&id=By%20Order%20of%20the%20Board) This announcement was issued by Dr. Ji Pengcheng, Chairman and Chief Executive Officer of the Board, in Beijing, China, on August 25, 2025, and lists the members of the Board of Directors - The announcement was issued by Dr. Ji Pengcheng, Chairman and Chief Executive Officer of the Board, on August 25, 2025[108](index=108&type=chunk) - Board members include executive directors Dr. Ji Pengcheng, Mr. Zhang Bin, Mr. He Liang, and Mr. Tong Jian, as well as independent non-executive directors Mr. Hong Weili, Mr. Song Shiji, Mr. Wang Jingbo, and Ms. Li Dan[108](index=108&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。 DREAM INTERNATIONAL LIMITED 德林國際有限公司 （於香港註冊成立之有限公司） （股份代號：1126） 截至二零二五年六月三十日止六個月中期業績公告 德林國際有限公司（「本公司」）之董事（「董事」）會（「董事會」）欣然宣佈本公司及 其附屬公司（「本集團」）截至二零二五年六月三十日止六個月之未經審核綜合業績， 連同二零二四年同期之比較數字。 綜合損益表 截至二零二五年六月三十日止六個月－未經審核 （以港元為單位） | | | 截至六月三十日止六個月 | | | --- | --- | --- | --- | | | | 二零二五年 | 二零二四年 | | | 附註 | 千港元 | 千港元 | | 收入 | 3 | 2,578,311 | 2,294,045 | | 銷售成本 | | (2,060,691) | (1,743,774) | | 毛利 | | 517,620 | 550 ...

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。 T.S. Lines Limited 德翔海運有限公司 （於香港註冊成立的有限公司） （股份代號：2510） 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 德翔海運有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然公佈本公司及其 附屬公司（統稱「本集團」）截至2025年6月30日止六個月的未經審核綜合業績，連 同截至2024年6月30日止六個月的比較數字如下： 1 ‧ 截至2025年6月30日止六個月的收入約為641.4百萬美元，增加約18.7%。 ‧ 截至2025年6月30日止六個月的毛利約為127.1百萬美元，增加約170.1%。 ‧ 截至2025年6月30日止六個月的本公司權益股東應佔利潤約為188.7百萬美 元，增加約222.0%。 ‧ 截至2025年6月30日止六個月的本公司權益股東應佔每股基本盈利約為 0.113美元（截至2024年6月30日止六個月：0.042美元 ...

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。 Sino-Synergy Hydrogen Energy Technology (Jiaxing) Co., Ltd. 國鴻氫能科技（嘉興）股份有限公司 （於中華人民共和國註冊成立之股份有限公司） （股份代號：9663） 截至2025年6月30日止六個月的中期業績公告 財務摘要 國鴻氫能科技（嘉興）股份有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此 宣佈本公司及其附屬公司（「本集團」或「我們」）截至2025年6月30日止六個月（「報 告期間」）的未經審核中期業績，連同截至去年同期（「過往期間」）的比較數字如 下： 1 • 於報告期間，總收入約為人民幣58.9百萬元，較去年同期減少55.7%； • 於報告期間，本公司擁有人應佔虧損約為人民幣184.2百萬元，較去年同期 減少13.2%； • 每股基本虧損為人民幣0.36元，較過往期間每股基本虧損人民幣0.41元減少 12.2%；及 • 董事會已 ...

（於香港註冊成立之有限公司） （股份代號：00270） 截至2025年6月30日止六個月 中期業績公告 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。 | 截至 6 月 30 日止六個月未經審核財務摘要 | | | | | --- | --- | --- | --- | | 2025 | 年 | 2024 年 （經重列） | 變動 | | | 千港元 | 千港元 | % | | 來自持續經營業務 | | | | | 收入 | 9,428,291 | 9,486,866 | -0.6 | | 稅前利潤 | 4,105,084 | 3,848,913 | +6.7 | | 歸屬於本公司所有者的溢利╱ （虧損） | | | | | 持續經營業務 | 2,698,784 | 2,473,445 | | | 終止經營業務 | (17,051) | (62,460) | | | 2,681,733 | | 2,410,985 | +11.2 | | 每股盈利－基 ...

[Interim Condensed Consolidated Statement of Comprehensive Income](index=1&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For H1 2025, the company reported a net loss of HKD 43.59 million, primarily due to exchange losses, despite significant revenue growth [For the Six Months Ended June 30, 2025](index=1&type=section&id=For%20the%20Six%20Months%20Ended%20June%2030%2C%202025) For the six months ended June 30, 2025, the company turned from profit to loss, recording a net loss of HKD 43,586 thousand, primarily due to significant exchange losses despite revenue growth Key Data from Interim Condensed Consolidated Statement of Comprehensive Income | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Revenue | 26,026 | 5,180 | 402.4% increase | | Gross Profit | 7,484 | 3,179 | 135.4% increase | | Net Exchange (Loss) Gain | (27,249) | 19,386 | Turned from gain to loss | | (Loss) Profit Before Tax | (37,208) | 9,349 | Turned from profit to loss | | (Loss) Profit for the Period | (43,586) | 8,121 | Turned from profit to loss | | (Loss) Earnings Per Share Attributable to Owners of the Company | (1.10) HK cents | 0.20 HK cents | Turned from profit to loss | | Total Comprehensive Income (Loss) for the Period | 5,306 | (31,957) | Turned from loss to income | | Exchange Differences Arising from Translation of Overseas Operations | 48,892 | (40,078) | Turned from loss to gain | [Interim Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets and net assets increased, but net current liabilities expanded, indicating increased short-term solvency pressure [As at June 30, 2025](index=3&type=section&id=As%20at%20June%2030%2C%202025) As of June 30, 2025, total assets and net assets increased, but net current liabilities expanded, indicating increased short-term solvency pressure Key Data from Interim Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Total Non-Current Assets | 1,324,870 | 1,283,992 | 3.18% increase | | Total Current Assets | 812,807 | 801,867 | 1.36% increase | | Total Current Liabilities | 1,174,668 | 1,132,326 | 3.74% increase | | Net Current Liabilities | (361,861) | (330,459) | Loss widened by 9.50% | | Net Assets | 809,080 | 803,774 | 0.66% increase | | Total Equity | 809,080 | 803,774 | 0.66% increase | [Notes to the Interim Condensed Consolidated Financial Statements](index=5&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed explanations of the Group's accounting policies, financial performance, and position [1. Company Information and Basis of Preparation](index=5&type=section&id=1.%20Company%20Information%20and%20Basis%20of%20Preparation) The company primarily engages in property development and investment, with interim financial statements prepared under HKAS 34 - The Group primarily engages in **property development and investment**[8](index=8&type=chunk) - Interim financial statements are prepared in accordance with the **HKEX Listing Rules** and **HKAS 34** issued by the HKICPA[8](index=8&type=chunk) - Financial statements are prepared on a **historical cost basis**, with certain investment properties measured at **fair value**, and presented in **HKD**[8](index=8&type=chunk) [2. Changes in Accounting Policies](index=6&type=section&id=2.%20Changes%20in%20Accounting%20Policies) New/revised HKFRS accounting standards were adopted this period, but they had no significant impact on the Group's financials - **HKAS 21 (Revised) "Lack of Exchangeability"** was adopted for the first time this period[12](index=12&type=chunk) - The adoption of new/revised HKFRS accounting standards had **no significant impact** on the Group's results or financial position for the current and prior accounting periods[12](index=12&type=chunk) [3. Operating Segment Information](index=6&type=section&id=3.%20Operating%20Segment%20Information) The Group has a single reportable segment, property development and investment in China, thus no operating segment information is presented - The Group has a **single reportable segment**, which is property development and investment in China[13](index=13&type=chunk) - Due to resource integration and lack of separate operating segment financial information, **no operating segment information is presented**[13](index=13&type=chunk) [4. Revenue and Other Income and Gains](index=7&type=section&id=4.%20Revenue%20and%20Other%20Income%20and%20Gains) Total revenue significantly increased to HKD 26.03 million, primarily driven by property sales, which were absent in the prior period Analysis of Revenue and Other Income and Gains | Category | 2025 (HKD thousands) | 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Property Sales | 20,724 | – | New revenue | | Property Management Income | 4,694 | 4,390 | 6.92% increase | | Gross Rental Income | 608 | 790 | 23.04% decrease | | Total Revenue | 26,026 | 5,180 | 402.43% increase | | Bank Interest Income | 18 | 224 | 91.96% decrease | | Total Other Income and Gains | 120 | 595 | 79.83% decrease | [5. Finance Costs](index=7&type=section&id=5.%20Finance%20Costs) Total finance costs decreased to HKD 545 thousand, mainly due to reduced interest on bills payable Analysis of Finance Costs | Category | 2025 (HKD thousands) | 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Interest on Lease Liabilities | 56 | 38 | 47.37% increase | | Interest on Loan from a Major Shareholder | 74 | 75 | 1.33% decrease | | Interest on Bills Payable | 415 | 525 | 21.00% decrease | | Total Finance Costs | 545 | 638 | 14.58% decrease | [6. (Loss) Profit Before Tax](index=8&type=section&id=6.%20%28Loss%29%20Profit%20Before%20Tax) The Group recorded a loss before tax of HKD 37.21 million, primarily impacted by cost of properties sold and depreciation Deductions from (Loss) Profit Before Tax | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Total Staff Costs | 8,911 | 9,558 | 6.8% decrease | | Cost of Properties Sold | 16,111 | – | New cost | | Depreciation of Right-of-Use Assets | 1,120 | 851 | 31.61% increase | [7. Income Tax Expense](index=8&type=section&id=7.%20Income%20Tax%20Expense) Total income tax expense significantly increased to HKD 6.38 million, mainly due to China Land Appreciation Tax - No provision for **Hong Kong profits tax** and **China corporate income tax** was made due to the Group incurring tax losses[18](index=18&type=chunk) Analysis of Income Tax Expense | Category | 2025 (HKD thousands) | 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | China Land Appreciation Tax | 6,378 | 1,228 | 419.38% increase | | Total Income Tax Expense for the Period | 6,378 | 1,228 | 419.38% increase | [8. Dividends](index=9&type=section&id=8.%20Dividends) The Board does not recommend an interim dividend for the six months ended June 30, 2025 and 2024 - The Board does not recommend the payment of an **interim dividend** for the six months ended June 30, 2025 and 2024[20](index=20&type=chunk) [9. (Loss) Earnings Per Share Attributable to Owners of the Company](index=9&type=section&id=9.%20%28Loss%29%20Earnings%20Per%20Share%20Attributable%20to%20Owners%20of%20the%20Company) Basic and diluted loss per share was 1.10 HK cents, a shift from profit to loss compared to the prior period Per Share (Loss) Earnings Calculation Data | Metric | 2025 (Unaudited) | 2024 (Unaudited) | Change | | :--- | :--- | :--- | :--- | | (Loss) Profit for the Period Attributable to Owners of the Company (HKD millions) | (43.6) | 8.1 | Turned from profit to loss | | Weighted Average Number of Ordinary Shares in Issue (million shares) | 3,975 | 3,975 | No change | | Basic and Diluted (Loss) Earnings Per Share (HK cents per share) | (1.10) | 0.20 | Turned from profit to loss | - As there were **no dilutive potential ordinary shares** for the six months ended June 30, 2025 and 2024, the calculation of diluted (loss) earnings per share is the same as basic (loss) earnings per share[21](index=21&type=chunk) [10. Trade Receivables](index=9&type=section&id=10.%20Trade%20Receivables) Total trade receivables decreased to HKD 2.01 million, with strict control, no significant credit risk, and no impairment provision - Trade receivables primarily represent proceeds from **property sales** and **property management fees receivable**, with no credit period usually granted[22](index=22&type=chunk) - The Group has **no significant concentration of credit risk** and holds no collateral or other credit enhancements for trade receivable balances[22](index=22&type=chunk) Aging Analysis of Trade Receivables | Aging | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Within 30 days | 863 | 1,804 | 52.16% decrease | | 31 to 60 days | 25 | 22 | 13.64% increase | | 61 to 90 days | 27 | 24 | 12.50% increase | | Over 90 days | 1,095 | 994 | 10.16% increase | | Total | 2,010 | 2,844 | 29.39% decrease | - Based on **HKFRS 9**, the Group's assessment of expected credit losses is **0.1%**, considered immaterial, thus **no loss allowance** has been made[24](index=24&type=chunk) [11. Trade Payables](index=10&type=section&id=11.%20Trade%20Payables) Total trade payables decreased to HKD 22.30 million, mainly due to a reduction in payables over 90 days old Aging Analysis of Trade Payables | Aging | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Within 30 days | 417 | 253 | 64.82% increase | | 31 to 60 days | 79 | 347 | 77.23% decrease | | 61 to 90 days | 308 | 817 | 62.30% decrease | | Over 90 days | 21,496 | 23,894 | 10.04% decrease | | Total | 22,300 | 25,311 | 11.90% decrease | [Management Discussion and Analysis](index=11&type=section&id=Management%20Discussion%20and%20Analysis) Provides an overview of the Group's operational performance, business activities, financial position, and future outlook [Performance](index=11&type=section&id=Performance) Turnover significantly increased by 402% to HKD 26.03 million, but a loss of HKD 43.59 million was recorded, primarily due to exchange losses - The Group's turnover was approximately **HKD 26.03 million**, an increase of approximately **402%** compared to the same period last year, mainly due to increased delivered area from property sales during the period[26](index=26&type=chunk) - Loss attributable to owners of the Company was approximately **HKD 43.59 million**, compared to a profit of approximately HKD 8.12 million in the same period last year, primarily due to **exchange losses of approximately HKD 27.25 million** arising from the translation of the Group's financial liabilities during the period[26](index=26&type=chunk) [Business Review](index=11&type=section&id=Business%20Review) The Group's property development and investment business involves various projects in China, with varying stages of development, sales, and legal issues [Property Development and Investment Business](index=11&type=section&id=Property%20Development%20and%20Investment%20Business) The Group's property development and investment business is primarily focused in China, encompassing various resort, residential, and commercial complex projects - The Group is primarily engaged in **property development and investment business**, focused in China[27](index=27&type=chunk) [Jinliwan Project](index=11&type=section&id=Jinliwan%20Project) The Jinliwan resort project, with a total GFA of 430,000 sqm, is being developed in two phases, with Phase I obtaining pre-sale permits - The Jinliwan project has a total gross floor area of approximately **430,000 square meters** and is being developed in **two phases**[27](index=27&type=chunk) - Phase I properties have obtained **pre-sale permits**, and the sales center and showroom are about to open[27](index=27&type=chunk) - Construction plans for Phase II properties are currently under review by the relevant authorities in the **Shenshan Special Cooperation Zone**[27](index=27&type=chunk) [Tanghai County Project](index=12&type=section&id=Tanghai%20County%20Project) The Tanghai County project faces potential planning revisions due to its designation as a nature reserve, despite construction progress - The Tanghai County project has completed **piling for urban residences** and **clubhouse construction phases**, as well as basic construction for **Phase II villas**[28](index=28&type=chunk) - The local government has designated the project area in Tanghai County as a **nature reserve**, which may require the company to **revise its original plans**, and discussions with the local government are ongoing[28](index=28&type=chunk) [Daya Bay Project](index=12&type=section&id=Daya%20Bay%20Project) The Daya Bay project generated approximately HKD 610,000 in rental income, a decrease from the prior year - The Daya Bay project, Oriental New World Tower, is a **mixed-use property development** with a total gross floor area of approximately **69,171.7 square meters**[29](index=29&type=chunk) - For the six months ended June 30, 2025, rental income from the mall and parking lot was approximately **HKD 610,000**, a decrease from HKD 790,000 in the same period last year[29](index=29&type=chunk) [Shanwei Project](index=13&type=section&id=Shanwei%20Project) The Shanwei project includes Jinbaocheng and Honghaiwan, with Jinbaocheng contributing revenue and Honghaiwan facing legal disputes [Jinbaocheng Project](index=13&type=section&id=Jinbaocheng%20Project) The Jinbaocheng project has commenced sales and pre-sales for its residential phases, contributing approximately HKD 20.72 million in revenue - Sales and pre-sales for **Phase I, Phase II, and Phase III residential units** of the Jinbaocheng project have commenced[31](index=31&type=chunk) - As of June 30, 2025, property sales from the Jinbaocheng project of approximately **HKD 20.72 million** have been recognized as revenue[31](index=31&type=chunk) - As of June 30, 2025, approximately **HKD 59 million** received from pre-sales of the Jinbaocheng project has been recognized as contract liabilities[31](index=31&type=chunk) [Honghaiwan Project](index=13&type=section&id=Honghaiwan%20Project) The Honghaiwan project is suspended and involved in legal proceedings, with a petition for retrial submitted to the Supreme People's Court - The Honghaiwan project is currently **suspended from development**, and the Company is evaluating its positioning[31](index=31&type=chunk) - The Honghaiwan project is involved in **legal proceedings with a contractor**, and the High Court has ruled that the Group must pay the contractor a total of approximately **RMB 16.7 million**[32](index=32&type=chunk) - The Group has submitted a **written petition for retrial** to the Supreme People's Court of the People's Republic of China, and the case is awaiting hearing[32](index=32&type=chunk) [Heqing Project](index=14&type=section&id=Heqing%20Project) The Heqing project is completed, with the Company and Greenland Hong Kong each holding 50% equity; the Company has sued the associate for a shareholder loan - The Heqing project has been completed, with the Company and **Greenland Hong Kong** each holding **50% equity** in the project[34](index=34&type=chunk) - The Company has initiated legal proceedings against the associate for a **shareholder loan of approximately RMB 123.9 million**[34](index=34&type=chunk) - The court ruled that the case should be governed by **Hong Kong law**, and the Company is seeking legal advice from Hong Kong lawyers[35](index=35&type=chunk) [Connected Transaction - Property Lease Agreements](index=15&type=section&id=Connected%20Transaction%20-%20Property%20Lease%20Agreements) The Company renewed property lease agreements with Greater China International and its subsidiaries on April 1, 2025, for two years, constituting a one-off connected transaction - The Company renewed property lease agreements with **Huitong China, Greater China (Huizhou), and Greater China (Shanwei)** on **April 1, 2025**, for a period of **two years**[36](index=36&type=chunk) - Greater China International is indirectly wholly-owned by **Mr. Wong Sai Chung**, an executive director, controlling shareholder, and Chairman of the Group, and these transactions constitute a **one-off connected transaction**[37](index=37&type=chunk) [Business Outlook](index=16&type=section&id=Business%20Outlook) Facing challenges in China's property sector, the Group will adjust development and sales schedules, focus on high-end commercial and tourism properties, and seek cost-effective investment opportunities to diversify income - The China property development industry faces **significant difficulties and uncertainties**, and the Group will adjust its development and sales schedules according to market conditions[38](index=38&type=chunk) - The Group's business and future strategy will continue to focus on **mid-to-high-end commercial and tourism property development and investment**[38](index=38&type=chunk) - The Group will continue to seek **high-quality and cost-effective investment opportunities** to enhance investment returns and gradually diversify income sources[38](index=38&type=chunk) [Liquidity and Financial Resources](index=16&type=section&id=Liquidity%20and%20Financial%20Resources) Bank balances and cash decreased, and total current liabilities increased, leading to expanded net current liabilities and a slight rise in the gearing ratio Key Data on Liquidity and Financial Resources | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Bank Balances and Cash | 13,670 | 32,760 | 58.25% decrease | | Total Current Assets | 812,810 | 801,870 | 1.36% increase | | Total Current Liabilities | 1,174,670 | 1,132,330 | 3.74% increase | | Gearing Ratio | 2.9% | 2.5% | 0.4 percentage point increase | [Capital Commitments](index=17&type=section&id=Capital%20Commitments) Total contracted but unprovided capital commitments increased to approximately HKD 414.36 million, mainly for property construction and development, and loan contributions to an associate Total Capital Commitments | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Total Capital Commitments | 414,360 | 398,810 | 3.90% increase | | Construction and Development of Properties | 204,870 | 196,330 | 4.35% increase | | Loan Contribution to an Associate | 209,490 | 202,480 | 3.46% increase | [Contingent Liabilities](index=17&type=section&id=Contingent%20Liabilities) Mortgage loan guarantees for buyers increased to approximately HKD 174.56 million, not recognized as liabilities due to sufficient underlying property value - The Group has provided guarantees of approximately **HKD 174.56 million** to financial institutions for certain property mortgage loans granted to purchasers[41](index=41&type=chunk) - The Directors believe that in the event of default by purchasers, the **net realizable value of the relevant properties** would be sufficient to cover the defaulted mortgage principal, accrued interest, and penalties, thus **no such guarantees are recognized** in the interim financial statements[41](index=41&type=chunk) [Pledged Assets](index=17&type=section&id=Pledged%20Assets) As of June 30, 2025, the Group had not pledged any of its assets - As of June 30, 2025, the Group had **not pledged any of its assets**[42](index=42&type=chunk) [Employees](index=17&type=section&id=Employees) The Group's employee count decreased to 74, resulting in a corresponding reduction in staff costs Employee Count and Costs | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Employee Count (Excluding Directors) | 74 | 81 | Decrease of 7 employees | | Staff Costs (For the six months ended June 30) (HKD) | 8,040,000 | 8,690,000 | 7.48% decrease | [Other Information](index=18&type=section&id=Other%20Information) Provides details on directors' and substantial shareholders' interests, securities transactions, and corporate governance practices [(a) Directors' and Chief Executive's Interests and Short Positions in Shares and Underlying Shares of the Company and its Associated Corporations](index=18&type=section&id=%28a%29%20Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares%20of%20the%20Company%20and%20its%20Associated%20Corporations) As of June 30, 2025, Mr. Wong Sai Chung, Ms. Wong Man Hei, and Mr. Li Chi Chun held long positions in the Company's shares, with Mr. Wong Sai Chung holding the largest stake at 46.49% Directors' Long Positions in Shares and Underlying Shares of the Company | Name of Director | Capacity | Personal Interest (shares) | Corporate Interest (shares) | Total (shares) | Approximate % of the Company's issued share capital | | :--- | :--- | :--- | :--- | :--- | :--- | | Mr. Wong Sai Chung | Beneficial owner | 1,848,162,476 | – | 1,848,162,476 | 46.49% | | Ms. Wong Man Hei | Beneficial owner | 353,667,996 | 282,133,413 | 635,801,409 | 16.00% | | Mr. Li Chi Chun | Beneficial owner and spouse's interest | 49,448,730 | – | 49,448,730 | 1.24% | [Substantial Shareholders' Interests and Short Positions Discloseable Under the SFO](index=19&type=section&id=Substantial%20Shareholders'%20Interests%20and%20Short%20Positions%20Discloseable%20Under%20the%20SFO) As of June 30, 2025, apart from directors, Smart China Group Limited held 282,133,413 shares, representing approximately 7.10% of the Company's issued shares, with Ms. Wong Man Hei deemed to have an interest in these shares Long Positions in Shares of the Company (Other than Directors) | Name of Shareholder | Nature of Interest | Total Number of Shares Held | Approximate % of Total Issued Shares | | :--- | :--- | :--- | :--- | | Smart China Group Limited | Corporate | 282,133,413 | 7.10% | - **Smart China Group Limited** is a company wholly-owned by **Ms. Wong Man Hei**, who is deemed to have an interest in the shares held by Smart China[47](index=47&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=20&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%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 - 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**[49](index=49&type=chunk) [Corporate Governance](index=20&type=section&id=Corporate%20Governance) The Company adopted and fully complied with the Corporate Governance Code provisions in Appendix C1 of the Listing Rules for the six months ended June 30, 2025 - The Company has adopted and fully complied with the **code provisions of the Corporate Governance Code** as set out in Appendix C1 of the Listing Rules[50](index=50&type=chunk) [Standard of Dealings in Securities by Directors](index=20&type=section&id=Standard%20of%20Dealings%20in%20Securities%20by%20Directors) The Company adopted the Model Code for Securities Transactions by Directors of Listed Issuers, and all directors confirmed compliance for the six months ended June 30, 2025 - The Company has adopted the **Model Code for Securities Transactions by Directors of Listed Issuers** as set out in Appendix C3 of the Listing Rules as its code of conduct for directors' securities transactions[51](index=51&type=chunk) - Following specific enquiries with all Directors, they confirmed that they have **complied with the required standards** set out in the Model Code for the six months ended June 30, 2025[51](index=51&type=chunk) [Audit Committee](index=21&type=section&id=Audit%20Committee) The Company's Audit Committee, comprising three independent non-executive directors, has reviewed the Group's unaudited interim results for the six months ended June 30, 2025 - The Company has established an **Audit Committee** comprising three independent non-executive directors: Mr. Cheng Hong Ki (Chairman), Mr. Leung Kwan, and Mr. Wang Hongxin[52](index=52&type=chunk) - The Audit Committee has reviewed the Group's **unaudited interim results** for the six months ended June 30, 2025[52](index=52&type=chunk)

[Company Information and Financial Highlights](index=1&type=section&id=Company%20Information%20and%20Financial%20Highlights) This section provides an overview of Shengli Oil & Gas Pipe Holdings Limited's interim results for the six months ended June 30, 2025, including key financial performance indicators [Company Information](index=1&type=section&id=Company%20Information) Shengli Oil & Gas Pipe Holdings Limited (Stock Code: 1080) announced its interim results for the six months ended June 30, 2025 - Company Name: SHENGLI OIL & GAS PIPE HOLDINGS LIMITED 胜利油气管道控股有限公司[2](index=2&type=chunk) - Stock Code: **1080**[2](index=2&type=chunk) - Reporting Period: Six months ended June 30, 2025[2](index=2&type=chunk) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) For the six months ended June 30, 2025, the company's revenue increased by 12.4% to RMB 374,825 thousand, with gross profit margin improving by 0.9 percentage points to 11.9%, while loss attributable to owners of the Company slightly increased to RMB 0.62 cents per share, and no interim dividend is recommended 2025 Half-Year Financial Highlights | Indicator | 2025 Half-Year (RMB thousands) | 2024 Half-Year (RMB thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 374,825 | 333,604 | Increase 12.4% | | Gross Profit Margin | 11.9% | 11.0% | Increase 0.9 percentage points | | Loss for the period attributable to owners of the Company | (24,146) | (23,716) | Loss increased | | Total comprehensive loss for the period attributable to owners of the Company | (38,133) | (49,305) | Loss decreased | | Basic loss per share | (0.62) cents | (0.61) cents | Loss increased | - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025[2](index=2&type=chunk) [Unaudited Condensed Consolidated Financial Statements](index=2&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including the statement of profit or loss and other comprehensive income, and the statement of financial position [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company's revenue increased by 12.36% and gross profit by 21.73%, but loss before tax and loss for the period expanded due to litigation provision, while total comprehensive loss for the period narrowed due to reduced loss on fair value change of equity investments Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 374,825 | 333,604 | +12.36% | | Cost of sales and services | (330,040) | (296,810) | +11.19% | | Gross profit | 44,785 | 36,794 | +21.73% | | Other income, gains and losses | 6,793 | 4,423 | +53.59% | | Selling and distribution costs | (19,896) | (18,909) | +5.22% | | Administrative expenses | (38,904) | (39,763) | -2.16% | | Other expenses | (802) | (380) | +111.05% | | Share of results of an associate | 7,437 | (28) | Turnaround from loss to profit | | Net reversal of impairment loss on trade receivables | 93 | 378 | -75.40% | | Litigation provision | (18,403) | — | New | | Finance costs | (6,447) | (6,601) | -2.33% | | Loss before tax | (25,344) | (24,086) | +5.22% | | Income tax expense | (20) | (20) | 0% | | Loss for the period | (25,364) | (24,106) | +5.22% | | Loss on fair value change of equity investments | (14,272) | (25,589) | Loss narrowed | | Total comprehensive loss for the period | (39,636) | (49,695) | Loss narrowed | - Loss for the period attributable to owners of the Company was **RMB 24,146 thousand**, an increase from RMB 23,716 thousand in the prior period[4](index=4&type=chunk) - Basic and diluted loss per share were **RMB 0.62 cents**, slightly higher than RMB 0.61 cents in the prior period[4](index=4&type=chunk) [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets and net assets both decreased, primarily due to fair value changes in equity investments and a significant increase in net current liabilities, which rose from RMB 15,358 thousand at the end of 2024 to RMB 146,338 thousand, mainly due to the reclassification of long-term borrowings to current liabilities Condensed Consolidated Statement of Financial Position (As of June 30) | Indicator | 2025 June 30 (RMB thousands) | 2024 December 31 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Non-current assets | 534,945 | 549,733 | -2.7% | | Current assets | 486,351 | 514,764 | -5.5% | | Current liabilities | 632,689 | 530,122 | +19.3% | | Net current liabilities | (146,338) | (15,358) | Loss expanded | | Total assets less current liabilities | 388,607 | 534,375 | -27.3% | | Non-current liabilities | 914 | 107,046 | -99.1% | | Net assets | 387,693 | 427,329 | -9.28% | | Equity attributable to owners of the Company | 380,049 | 418,182 | -9.12% | | Cash and cash equivalents | 119,658 | 127,720 | -6.47% | | Trade receivables | 37,608 | 49,129 | -23.45% | | Trade payables | 107,661 | 46,104 | +133.52% | | Borrowings (total) | 338,806 | 309,836 | +9.35% | - Net current liabilities significantly increased to **RMB 146,338 thousand**, primarily due to the reclassification of long-term borrowings to current liabilities as their maturity date is less than one year[5](index=5&type=chunk)[78](index=78&type=chunk) [Notes to the Unaudited Condensed Consolidated Interim Financial Statements](index=6&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Interim%20Financial%20Statements) This section provides detailed notes to the unaudited condensed consolidated interim financial statements, covering general information, basis of preparation, segment information, and specific financial line items [General Information](index=6&type=section&id=General%20Information) Shengli Oil & Gas Pipe Holdings Limited was incorporated in the Cayman Islands and listed on the Main Board of the Hong Kong Stock Exchange, with the Group primarily engaged in the production, processing, and sale of welded pipes for oil and gas pipelines and other construction applications, as well as commodity trading - The Company was incorporated in the Cayman Islands on July 3, 2009, and its shares have been listed on the Main Board of the Hong Kong Stock Exchange since December 18, 2009[7](index=7&type=chunk) - The Group is principally engaged in the manufacture, processing, and sale of welded pipes for oil and gas pipelines and other construction and manufacturing applications, and commodity trading[8](index=8&type=chunk) [Basis of Preparation](index=6&type=section&id=Basis%20of%20Preparation) The unaudited condensed consolidated interim financial statements are prepared in accordance with International Accounting Standard 34 and the Listing Rules, on a historical cost basis, except for financial assets designated at fair value through other comprehensive income, with no significant impact from newly adopted IFRS accounting standards - The financial statements are prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[9](index=9&type=chunk) - The financial statements are presented in RMB and prepared on a historical cost basis, except for equity investments designated at fair value through other comprehensive income[10](index=10&type=chunk) [Going Concern](index=7&type=section&id=Going%20Concern) Despite net current liabilities of RMB 146,338 thousand as of June 30, 2025, the Board believes the Group has sufficient working capital to prepare financial statements on a going concern basis, considering cash flow forecasts, credit commitments, and bank loan extension intentions - As of June 30, 2025, the Group's current liabilities exceeded its current assets by approximately **RMB 146,338 thousand**[12](index=12&type=chunk) - The Board believes that, considering cash flow forecasts, credit commitments from financial institutions, and banks' intentions to extend approximately **RMB 92,200 thousand** in bank loans, the Group has sufficient working capital to meet current needs, thus preparing financial statements on a going concern basis[12](index=12&type=chunk) [Changes in Accounting Policies](index=7&type=section&id=Changes%20in%20Accounting%20Policies) The adoption of new and revised IFRS accounting standards during the period did not result in significant changes to the Group's accounting policies, presentation methods, or reported amounts in the financial statements - The adoption of new and revised IFRS accounting standards did not significantly change the Group's accounting policies, the presentation of the interim financial statements, or the amounts reported for the current and prior periods[13](index=13&type=chunk) [Segment Information](index=8&type=section&id=Segment%20Information) The Group operates two reportable segments: welded pipe business and trading business, with the welded pipe business being the primary revenue source, contributing all external revenue in the first half of 2025 and turning its segment results from loss to profit, while the trading business revenue significantly decreased to zero, with most revenue and non-current assets located in China - The Group currently has two reportable segments: welded pipe business (production of spiral submerged arc welded pipes and related services) and commodity trading[14](index=14&type=chunk) - Management allocates resources and assesses performance based on the individual results of operating segments[14](index=14&type=chunk) [Segment Revenue and Results](index=8&type=section&id=Segment%20Revenue%20and%20Results) In the first half of 2025, welded pipe business revenue was RMB 374,825 thousand, while trading business revenue was zero, resulting in a total revenue increase of 12.36% year-on-year, and the welded pipe business segment result turned from a loss of RMB 10,699 thousand in the prior period to a profit of RMB 4,945 thousand Segment Revenue and Results (For the six months ended June 30) | Indicator | 2025 Welded Pipe Business (RMB thousands) | 2025 Trading Business (RMB thousands) | 2025 Total (RMB thousands) | 2024 Welded Pipe Business (RMB thousands) | 2024 Trading Business (RMB thousands) | 2024 Total (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Sales to external customers | 374,825 | — | 374,825 | 322,910 | 10,694 | 333,604 | | Segment results | 4,945 | (1,046) | 3,899 | (10,699) | (1,652) | (12,351) | - In the first half of 2025, the welded pipe business segment turned from loss to profit, and the trading business loss narrowed[15](index=15&type=chunk)[16](index=16&type=chunk) [Segment Assets and Liabilities](index=9&type=section&id=Segment%20Assets%20and%20Liabilities) As of June 30, 2025, the Group's total assets were RMB 1,021,296 thousand and total liabilities were RMB 633,603 thousand, with the welded pipe business contributing the majority of segment assets, while unallocated liabilities accounted for a significant portion of total liabilities Segment Assets and Liabilities (As of June 30) | Indicator | 2025 Welded Pipe Business (RMB thousands) | 2025 Trading Business (RMB thousands) | 2025 Unallocated (RMB thousands) | 2025 Total (RMB thousands) | 2024 Welded Pipe Business (RMB thousands) | 2024 Trading Business (RMB thousands) | 2024 Unallocated (RMB thousands) | 2024 Total (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Segment assets | 925,630 | 24,146 | 71,520 | 1,021,296 | 949,785 | 24,103 | 90,609 | 1,064,497 | | Segment liabilities | (275,132) | (6) | (358,465) | (633,603) | (324,250) | (8) | (312,910) | (637,168) | [Geographical Information](index=10&type=section&id=Geographical%20Information) The majority of the Group's revenue is derived from China, thus no geographical analysis of revenue is provided, and non-current assets are primarily located in China - The majority of the Group's revenue is derived from China, and no geographical analysis of revenue is provided[19](index=19&type=chunk) Geographical Distribution of Non-Current Assets (RMB thousands) | Geographical Location | 2025 June 30 | 2024 December 31 | | :--- | :--- | :--- | | China | 371,079 | 378,501 | | Hong Kong | 467 | 962 | | **Total** | **371,546** | **379,463** | [Major Customers Information](index=10&type=section&id=Major%20Customers%20Information) Customer A is the Group's major customer, contributing RMB 314,450 thousand in revenue in the first half of 2025, accounting for the vast majority of total revenue Major Customer Revenue (RMB thousands) | Customer | Segment | 2025 Half-Year | 2024 Half-Year | | :--- | :--- | :--- | :--- | | Customer A | Welded Pipe Business | 314,450 | 250,151 | - Revenue from Customer A accounted for over **70%** of total revenue[48](index=48&type=chunk) [Revenue](index=11&type=section&id=Revenue) In the first half of 2025, the Group's total revenue was RMB 374,825 thousand, entirely from the welded pipe business, with welded pipe sales forming the main component, while trading business revenue decreased to zero, and all revenue was generated in China and recognized at a point in time Disaggregation of Revenue from Contracts with Customers (For the six months ended June 30) | Type of Goods or Services | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Welded pipe sales | 341,927 | 293,963 | | Provision of welded pipe business related services | 32,898 | 28,947 | | Trading business | — | 10,694 | | **Total** | **374,825** | **333,604** | - In the first half of 2025, all revenue was generated from the China market and recognized at a point in time[21](index=21&type=chunk) [Other Income, Gains and Losses](index=12&type=section&id=Other%20Income%2C%20Gains%20and%20Losses) In the first half of 2025, total other income, gains, and losses significantly increased to RMB 6,793 thousand from RMB 4,423 thousand in the prior period, primarily due to growth in net gains from sales of materials and new compensation income Other Income, Gains and Losses (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest income | 190 | 406 | | Government grants | 146 | 146 | | Rental income | 501 | 486 | | Compensation income | 981 | — | | Other income | 895 | 406 | | Net gains from sales of materials | 4,158 | 2,937 | | Net gains on disposal of property, plant and equipment | — | 42 | | Write-off of property, plant and equipment | (78) | — | | **Total** | **6,793** | **4,423** | - Compensation income of **RMB 981 thousand** arose from a settlement of a lawsuit, representing partial financial compensation from the defendant[22](index=22&type=chunk) [Finance Costs](index=13&type=section&id=Finance%20Costs) In the first half of 2025, finance costs were RMB 6,447 thousand, a slight decrease from the prior period, primarily consisting of interest on bank loans Finance Costs (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest on bank loans | 5,578 | 5,319 | | Interest on other loans | 847 | 1,234 | | Interest on lease liabilities | 22 | 48 | | **Total** | **6,447** | **6,601** | [Loss Before Tax](index=13&type=section&id=Loss%20Before%20Tax) In the first half of 2025, loss before tax expanded to RMB 25,344 thousand from RMB 24,086 thousand in the prior period, with major costs including cost of inventories sold and services, while staff welfare expenses and depreciation charges slightly decreased Items Deducted From/Credited to Loss Before Tax (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Cost of inventories sold | 310,449 | 278,890 | | Cost of services | 19,591 | 17,920 | | Staff welfare expenses | 30,020 | 30,612 | | Depreciation of property, plant and equipment | 7,909 | 9,186 | | Depreciation of right-of-use assets | 2,176 | 2,157 | | Net reversal of impairment loss on trade receivables | (93) | (378) | - Cost of inventories sold includes a net reversal of inventory write-downs of approximately **RMB 227 thousand** in the first half of 2025, compared to inventory write-downs of approximately **RMB 1,182 thousand** in the first half of 2024[25](index=25&type=chunk) [Income Tax Expense](index=14&type=section&id=Income%20Tax%20Expense) Income tax expense remained at RMB 20 thousand in the first half of 2025, primarily for deferred tax, as the Group's entities in Hong Kong, Singapore, and mainland China did not generate assessable profits, thus no provision for profits tax or corporate income tax was made Income Tax Expense (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current tax | — | — | | Deferred tax | 20 | 20 | | **Income Tax Expense** | **20** | **20** | - The Group's entities in Hong Kong, Singapore, and mainland China did not generate assessable profits, thus no provision for profits tax or corporate income tax was made[26](index=26&type=chunk)[27](index=27&type=chunk) [Loss Per Share](index=15&type=section&id=Loss%20Per%20Share) In the first half of 2025, both basic and diluted loss per share were RMB 0.62 cents, a slight increase compared to RMB 0.61 cents in the prior period Loss Per Share (For the six months ended June 30) | Indicator | 2025 (RMB cents) | 2024 (RMB cents) | | :--- | :--- | :--- | | Basic | (0.62) | (0.61) | | Diluted | (0.62) | (0.61) | - The weighted average number of ordinary shares used for calculating basic loss per share was **3,874,365,600 shares**, consistent with the prior period[29](index=29&type=chunk) - Diluted loss per share was the same as basic loss per share because the exercise price of share options was higher than the average share price[29](index=29&type=chunk)[30](index=30&type=chunk) [Interim Dividend](index=15&type=section&id=Interim%20Dividend) The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025[31](index=31&type=chunk) [Property, Plant and Equipment](index=15&type=section&id=Property%2C%20Plant%20and%20Equipment) In the first half of 2025, the cost of acquisitions of property, plant and equipment significantly decreased to RMB 2,299 thousand, with a small amount of write-offs during the period but no gains on disposal Changes in Property, Plant and Equipment (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Total cost of acquisitions of property, plant and equipment | 2,299 | 13,622 | | Written-off carrying amount | 78 | — | | Disposed carrying amount | — | 19 | [Equity Investments – Financial Assets Designated at Fair Value Through Other Comprehensive Income](index=16&type=section&id=Equity%20Investments%20%E2%80%93%20Financial%20Assets%20Designated%20at%20Fair%20Value%20Through%20Other%20Comprehensive%20Income) As of June 30, 2025, the fair value of the Group's 19.95% equity investment in Xinfeng Energy was RMB 48,347 thousand, with a fair value change loss of RMB 14,272 thousand recognized during the period, which was a narrower loss compared to the prior period, as this investment is designated for long-term strategic purposes and valued using the net asset method Fair Value Change of Equity Investments (RMB thousands) | Date | Amount | Fair Value Change (Other Comprehensive Loss) | | :--- | :--- | :--- | | 2024 January 1 | 97,264 | | | 2024 December 31/2025 January 1 | 62,619 | (34,645) | | 2025 June 30 | 48,347 | (14,272) | - The unlisted equity investment refers to a **19.95%** equity interest in Xinfeng Energy Group Co, Ltd, which is primarily engaged in the design and construction of wind farms and the sale of wind turbine generators[34](index=34&type=chunk) - The valuation is performed using the net asset method and classified as Level 3 fair value hierarchy as defined by IFRS 13[34](index=34&type=chunk) [Trade Receivables](index=17&type=section&id=Trade%20Receivables) As of June 30, 2025, net trade receivables were RMB 37,608 thousand, a 23.45% decrease from the end of 2024, with an increased proportion of overdue amounts within one year, but overall loss allowance rate remained stable Trade Receivables (RMB thousands) | Item | 2025 June 30 | 2024 December 31 | | :--- | :--- | :--- | | Trade receivables from third parties | 38,054 | 49,668 | | Less: Loss allowance | (446) | (539) | | **Net amount** | **37,608** | **49,129** | Ageing Analysis of Trade Receivables (RMB thousands) | Ageing | 2025 June 30 | 2024 December 31 | | :--- | :--- | :--- | | Within 3 months | 32,072 | 40,346 | | 3 to 6 months | 513 | 2,410 | | 6 months to 1 year | 790 | 4,772 | | 1 to 2 years | 4,233 | 1,601 | | **Total** | **37,608** | **49,129** | - Trade terms are primarily credit transactions, generally up to **180 days**[35](index=35&type=chunk) [Prepayments, Deposits and Other Receivables](index=18&type=section&id=Prepayments%2C%20Deposits%20and%20Other%20Receivables) As of June 30, 2025, total prepayments, deposits, and other receivables significantly decreased to RMB 113,068 thousand from RMB 173,362 thousand at the end of 2024, mainly due to a reduction in advances to suppliers Prepayments, Deposits and Other Receivables (RMB thousands) | Item | 2025 June 30 | 2024 December 31 | | :--- | :--- | :--- | | Advances to suppliers | 99,378 | 149,390 | | Recoverable VAT | 834 | 2,130 | | Prepayments | 160 | 865 | | Tender deposits paid to customers | 1,897 | 2,203 | | Guarantee deposits for customer sales contracts | 8,180 | 13,931 | | Consideration receivable for partial disposal of equity interest in a subsidiary from non-controlling interests | — | 1,890 | | Others | 2,619 | 2,953 | | **Total** | **113,068** | **173,362** | - Advances are interest-free, refundable, and/or expected to be utilized within one year, primarily to secure raw material supply and subcontracted services[37](index=37&type=chunk) [Trade Payables](index=19&type=section&id=Trade%20Payables) As of June 30, 2025, total trade payables significantly increased by 133.52% to RMB 107,661 thousand from RMB 46,104 thousand at the end of 2024, primarily concentrated in amounts due within three months Trade Payables (RMB thousands) | Item | 2025 June 30 | 2024 December 31 | | :--- | :--- | :--- | | Trade payables to third parties | 107,661 | 46,104 | Ageing Analysis of Trade Payables (RMB thousands) | Ageing | 2025 June 30 | 2024 December 31 | | :--- | :--- | :--- | | Within 3 months | 96,525 | 35,209 | | 3 to 6 months | 1,397 | 518 | | 6 months to 1 year | 859 | 2,199 | | 1 to 2 years | 1,134 | 449 | | Over 2 years | 7,746 | 7,729 | | **Total** | **107,661** | **46,104** | - Trade payables are interest-free, with payment terms to suppliers generally ranging from **90 to 180 days** credit period[39](index=39&type=chunk) [Borrowings](index=20&type=section&id=Borrowings) As of June 30, 2025, the Group's total borrowings increased to RMB 338,806 thousand from the end of 2024, with all amounts repayable within one year, and bank loans are primarily secured, while other loans are unsecured Borrowings Composition (RMB thousands) | Type | Collateral Status | 2025 June 30 | 2024 December 31 | | :--- | :--- | :--- | :--- | | Bank loans | Secured | 305,430 | 276,040 | | Other loans | Unsecured | 33,376 | 33,796 | | **Total** | | **338,806** | **309,836** | Borrowings Repayment Period (RMB thousands) | Repayment Period | 2025 June 30 | 2024 December 31 | | :--- | :--- | :--- | | On demand or within one year | 338,806 | 203,866 | | One to two years | — | 105,970 | | **Total** | **338,806** | **309,836** | - Bank loans are secured by property, plant and equipment, right-of-use assets, and pledged bank deposits[40](index=40&type=chunk) - Other loans are advances from the Company's directors, other key management personnel, and employees, with a fixed annual interest rate of **5%**[40](index=40&type=chunk) [Commitments](index=21&type=section&id=Commitments) As of June 30, 2025, the Group had capital commitments of approximately RMB 52 thousand for the acquisition of property, plant and equipment, a significant decrease from the end of 2024 Capital Commitments (RMB thousands) | Item | 2025 June 30 | 2024 December 31 | | :--- | :--- | :--- | | Contracted but not provided for, net of deposits paid | 52 | 175 | [Related Party Transactions](index=21&type=section&id=Related%20Party%20Transactions) The Group engaged in various transactions with related parties, including purchases from an associate and payment of interest on other loans to directors and key management personnel [Significant Related Party Transactions](index=21&type=section&id=Significant%20Related%20Party%20Transactions) In the first half of 2025, the Group's purchases from its associate, Hunan Shengli Xianggang Steel Pipe Co, Ltd, significantly increased to RMB 104,466 thousand Significant Related Party Transactions (For the six months ended June 30) | Type of Transaction | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest paid on other loans to directors and other key management personnel of the Company | 26 | 26 | | Purchases from an associate – Hunan Shengli Xianggang Steel Pipe Co, Ltd | 104,466 | 754 | [Significant Related Party Balances](index=21&type=section&id=Significant%20Related%20Party%20Balances) As of June 30, 2025, the Group had other loans from directors and key management personnel of RMB 1,065 thousand, and interest payable on other loans to them of RMB 107 thousand Significant Related Party Balances (RMB thousands) | Type of Balance | 2025 June 30 | 2024 December 31 | | :--- | :--- | :--- | | Other loans from directors and other key management personnel of the Company | 1,065 | 1,065 | | Interest payable on other loans to directors and other key management personnel of the Company | 107 | 67 | [Key Management Personnel Remuneration](index=22&type=section&id=Key%20Management%20Personnel%20Remuneration) In the first half of 2025, total remuneration for directors and other key management personnel was RMB 3,281 thousand, a decrease from the prior period Key Management Personnel Remuneration (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Directors' fees | 913 | 976 | | Salaries, wages, allowances and other benefits in kind | 2,177 | 2,654 | | Contributions to retirement benefit schemes | 191 | 310 | | **Total** | **3,281** | **3,940** | [Litigation](index=22&type=section&id=Litigation) The Group's subsidiary, Zhejiang Shengguan, was ordered to bear supplementary compensation liability in a lawsuit involving Xinfeng Energy, leading to the recognition of a litigation provision of approximately RMB 18,403 thousand in the current period, with the appeal dismissed and the judgment being final - Zhejiang Shengguan was ordered to bear supplementary compensation liability for the outstanding amount of approximately **RMB 17,196 thousand** and accrued default interest payable by Xinfeng Energy due to breach of contract[44](index=44&type=chunk)[45](index=45&type=chunk) - A litigation provision of approximately **RMB 18,403 thousand** was recognized in profit or loss for the six months ended June 30, 2025[45](index=45&type=chunk) - Zhejiang Shengguan's appeal was dismissed, the original judgment was upheld, and the judgment is final[45](index=45&type=chunk) [CEO's Report](index=23&type=section&id=CEO%27s%20Report) This section provides the CEO's report, covering the market overview, business review and strategy, and future outlook for the Group [Market Overview](index=23&type=section&id=Market%20Overview) In the first half of 2025, the international environment remained complex, but China's economy maintained overall stability and positive momentum, with expanding consumption and manufacturing growth, while the oil and gas industry saw stable upstream output but declining demand for refined oil products, accelerating global energy transition - In the first half of 2025, China's economy withstood pressure, maintaining overall stable and positive operations, with a gradual expansion of the consumer market and continued good growth momentum in manufacturing[47](index=47&type=chunk) - Upstream output in the oil and gas industry remained stable with slight increases, but demand for refined oil products showed a downward trend[47](index=47&type=chunk) - The National Pipeline Network Group is fully accelerating the construction of a "nationwide network" to ensure national energy security[47](index=47&type=chunk) [Business Review and Strategy](index=24&type=section&id=Business%20Review%20and%20Strategy) During the reporting period, the Group deepened cooperation with core customers, expanded into the social market, optimized equipment management, broadened its product range, achieved cost reduction and efficiency improvement through personnel structure optimization, training, and technological innovation, while strengthening safety and quality management [Strengthening Core Customer Cooperation and Actively Expanding Market Resources](index=24&type=section&id=Strengthening%20Core%20Customer%20Cooperation%20and%20Actively%20Expanding%20Market%20Resources) The Group continued to deepen strategic cooperation with key customers such as the National Pipeline Network Group and the "Three Barrels of Oil," with sales to the National Pipeline Network Group accounting for over 70% of total sales, while actively expanding into the social market by developing three new customers and signing sales orders, and increasing efforts in processing-on-demand orders - The Group's strategic cooperation with key customers such as the National Pipeline Network Group, Sinopec, PetroChina, and CNOOC remained effective[48](index=48&type=chunk) - During the review period, the Group's sales to the National Pipeline Network Group accounted for over **70%** of its total sales[48](index=48&type=chunk) - Three new customers were developed, sales orders were signed, and the Group actively laid out plans for the social heating pipeline market[48](index=48&type=chunk) [Strengthening Equipment Management, Efficiently Completing Pipeline Tasks, and Expanding Product Range](index=24&type=section&id=Strengthening%20Equipment%20Management%2C%20Efficiently%20Completing%20Pipeline%20Tasks%2C%20and%20Expanding%20Product%20Range) Shandong Shengli Steel Pipe ensured stable equipment operation by improving maintenance systems, efficiently completing steel pipe production and anti-corrosion tasks for multiple large-scale oil, gas, and water pipeline projects, and successfully broke through the lower limit of internal coating pipe diameter through technological innovation, expanding its product range - Shandong Shengli Steel Pipe ensured stable equipment operation by improving equipment maintenance systems, efficiently completing multiple large-scale SAWH welded pipe projects[49](index=49&type=chunk) - Successfully completed the internal anti-corrosion task for Ф508 steel pipes for the Wuhu connection line of the Sichuan-East Gas Transmission Second Line natural gas pipeline project, breaking through the previous lower limit of internal coating pipe diameter and expanding the product range[50](index=50&type=chunk) [Optimizing Staff Structure, Enhancing Training, and Implementing Multiple Measures for Cost Reduction and Efficiency Improvement](index=25&type=section&id=Optimizing%20Staff%20Structure%2C%20Enhancing%20Training%2C%20and%20Implementing%20Multiple%20Measures%20for%20Cost%20Reduction%20and%20Efficiency%20Improvement) The Group improved overall staff quality by optimizing personnel structure, strengthening skills training for key positions, and implementing multi-tasking incentive measures, while achieving significant cost reduction and efficiency improvement through equipment localization by the technology center and optimized procurement processes by the logistics center - Optimized personnel structure, strengthened skills training for key positions, and advocated multi-tasking incentive measures to improve overall quality[51](index=51&type=chunk) - The Technology Center localized equipment that had long relied on imports, significantly reducing procurement costs and increasing operational efficiency[51](index=51&type=chunk) - The Logistics Center achieved an overall **2%** reduction in procurement costs through detailed division of labor and competitive bidding[51](index=51&type=chunk) [Strengthening Safety Management to Ensure Stable and Safe Production](index=26&type=section&id=Strengthening%20Safety%20Management%20to%20Ensure%20Stable%20and%20Safe%20Production) The Group strictly implemented safety management systems, strengthened publicity and education, organized emergency drills, promoted the principle of "all-staff participation and grid management," and completed safety hazard investigations and training, achieving "zero accidents" in safe production - Strictly implemented safety management systems, strengthened publicity and education, and organized emergency response drills to enhance overall safety awareness[53](index=53&type=chunk) - Adhered to the principle of "all-staff participation and grid management," completed safety hazard investigations, and achieved "zero accidents" in safe production[53](index=53&type=chunk) [Enhancing Quality Management to Ensure Provision of High-Quality Products](index=26&type=section&id=Enhancing%20Quality%20Management%20to%20Ensure%20Provision%20of%20High-Quality%20Products) The Group successfully passed the initial certification of its energy management system, maintained good operation of its CNAS laboratory system, and strengthened quality control from the procurement source through expert training and standard development, ensuring the provision of high-quality products - Successfully passed the initial certification of the energy management system, and the CNAS laboratory system operated well[54](index=54&type=chunk) - Invited welding experts to conduct training and compiled "Rules and Methods for Testing Weld Metal Overlay Materials," strengthening quality control from the procurement source[54](index=54&type=chunk) [Enhancing Technological Innovation Capability and Strengthening R&D Prowess](index=26&type=section&id=Enhancing%20Technological%20Innovation%20Capability%20and%20Strengthening%20R%26D%20Prowess) The Group increased investment in technology, obtaining 3 authorized patents (1 invention, 2 utility models) and publishing 3 scientific papers in the first half of 2025, successfully passing the municipal enterprise technology center evaluation with an excellent rating, and participating in discussions on oil and gas pipeline industry standards - In the first half of 2025, **3 patents** were authorized (1 invention patent and 2 utility model patents), and **3 scientific papers** were published[55](index=55&type=chunk) - Successfully passed the 2024 municipal enterprise technology center evaluation with an excellent rating and participated in discussions on oil and gas pipeline industry standards as a drafting unit[55](index=55&type=chunk) [Future Outlook](index=27&type=section&id=Future%20Outlook) Looking ahead to 2025, with a steady global economic recovery and strong growth in China, the National Energy Administration has set clear goals for high-quality completion of the "14th Five-Year Plan" and ensuring oil and gas supply security, prompting the Group to flexibly respond to industry changes, explore new models, expand into new areas, deepen strategic adjustments, optimize business structure, and actively strive for more project orders from the National Pipeline Network Group while expanding into social and international markets - The IMF forecasts global economic growth of **3.0%** in 2025, with China's economic growth forecast revised up to **4.8%**[56](index=56&type=chunk) - The National Energy Administration proposed high-quality completion of the "14th Five-Year Plan" goals, ensuring crude oil production remains above **200 million tonnes** and natural gas production continues to increase[56](index=56&type=chunk) - The Group will flexibly respond to industry trends, explore new avenues, and promote new quality productive forces to empower industrial upgrading[56](index=56&type=chunk) - The Group will continue to deepen strategic adjustments, optimize its business structure, and while consolidating its position in the mid-to-high-end oil and gas pipeline market, actively open up social and international markets[57](index=57&type=chunk) - As a key supplier to the National Pipeline Network Group, the Group will leverage its production capacity and technological advantages to secure more project orders and actively prepare for the 2025 second-half framework agreement bidding process[57](index=57&type=chunk) [Management Discussion and Analysis](index=29&type=section&id=Management%20Discussion%20and%20Analysis) This section provides a detailed management discussion and analysis of the Group's market overview, business review, financial performance, and financial position [Market Overview](index=29&type=section&id=Market%20Overview) In the first half of 2025, despite a complex international environment, China's economy showed steady progress, with GDP growing by 5.3%, creating a favorable environment for energy infrastructure investment, while the oil and gas market experienced structural recovery with stable domestic oil and gas production increases, but traditional refined oil consumption structures diverged, and the proportion of non-fossil energy rose, leading the Group to deepen cooperation with strategic customers and establish a strategic partnership with Rizhao Steel - In the first half of 2025, China's GDP reached approximately **RMB 66.05 trillion**, growing by **5.3%** year-on-year, creating a favorable macroeconomic environment for energy infrastructure investment[60](index=60&type=chunk) - In the first half, crude oil output from industrial enterprises above designated size was **108 million tonnes**, up **1.3%** year-on-year; natural gas output was **130.8 billion cubic meters**, up **5.8%** year-on-year[61](index=61&type=chunk) - The consumption structure of traditional refined oil products diverged, with apparent consumption of gasoline, diesel, and natural gas decreasing year-on-year, and the share of non-fossil energy increasing by **1.7 percentage points**[61](index=61&type=chunk) - The Group officially established a strategic partnership with Rizhao Steel Holding Group Co, Ltd, deepening cooperation in resource supply, technological innovation, and market expansion[61](index=61&type=chunk) - Looking ahead to the second half, the National Energy Administration clearly aims to achieve high-quality "14th Five-Year Plan" goals, ensuring crude oil production remains above **200 million tonnes** and natural gas production continues to increase[62](index=62&type=chunk) [Business Review](index=30&type=section&id=Business%20Review) The Group is a leading oil and gas pipeline producer in China, specializing in the design, manufacturing, anti-corrosion, and insulation processing and services of SAWH welded pipes, with major customers including the National Pipeline Network Group and the "Three Barrels of Oil"; as of June 30, 2025, its annual production capacity for SAWH welded pipes was approximately 800 thousand tonnes, anti-corrosion production lines approximately 4.8 million square meters, and insulation pipe production lines 110 kilometers, with a cumulative total length of approximately 35,779 kilometers of welded pipe products primarily used in China - The Group is one of China's largest and quality-leading oil and gas pipeline producers, capable of providing large-diameter, high-pressure pipes for major oil and gas pipeline projects[63](index=63&type=chunk) - Major customers include the National Pipeline Network Group and large state-owned oil and natural gas enterprises such as the "Three Barrels of Oil"[63](index=63&type=chunk) Capacity Overview (As of June 30, 2025) | Product Type | Annual Capacity | | :--- | :--- | | SAWH Welded Pipes | Approximately 800 thousand tonnes | | Anti-corrosion Production Lines | Approximately 4.8 million square meters | | Insulation Pipe Production Lines | 110 kilometers | - As of June 30, 2025, the cumulative total length of welded pipes produced by the Group for global oil and gas pipeline main lines was approximately **35,779 kilometers**, of which **94.9%** were installed in China[63](index=63&type=chunk) - During the review period, the Group participated in several large-scale SAWH welded pipe and anti-corrosion pipeline projects, including the National Pipeline Network Group's Sichuan-East Gas Transmission Second Line natural gas pipeline project[64](index=64&type=chunk) [Financial Performance Review](index=31&type=section&id=Financial%20Performance%20Review) In the first half of 2025, the Group's revenue increased by 12.4%, gross profit by 21.7%, and gross profit margin improved by 0.9 percentage points, with other income, gains, and losses increasing, administrative expenses decreasing, and share of results of an associate turning from loss to profit; however, loss before tax expanded due to litigation provision and increased selling and distribution costs, while total comprehensive loss for the period decreased due to a narrower loss on fair value change of equity investments [Revenue](index=32&type=section&id=Revenue) In the first half of 2025, the Group's turnover was RMB 374,825 thousand, a 12.4% year-on-year increase, entirely from the welded pipe business, with both SAWH welded pipe sales revenue and anti-corrosion treatment revenue increasing, while trading business revenue significantly decreased to zero Revenue Composition (RMB thousands) | Item | 2025 Half-Year | 2024 Half-Year | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Total Turnover | 374,825 | 333,604 | +12.4% | | SAWH Welded Pipe Sales Revenue | 341,927 | 293,963 | +16.3% | | Anti-corrosion Treatment Revenue | 32,898 | 28,947 | +13.6% | | Trading Business Revenue | — | 10,694 | -100% | - Trading business revenue significantly decreased to zero as the Group is still seeking trading opportunities with higher gross profit potential customers[65](index=65&type=chunk) [Cost of Sales and Services](index=32&type=section&id=Cost%20of%20Sales%20and%20Services) In the first half of 2025, cost of sales and services increased by 11.2% year-on-year to RMB 330,040 thousand, primarily due to increased sales volume in the welded pipe business Cost of Sales and Services (RMB thousands) | Item | 2025 Half-Year | 2024 Half-Year | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Cost of Sales and Services | 330,040 | 296,810 | +11.2% | - The increase in cost was mainly due to the increase in sales volume of the welded pipe business compared to the prior period[66](index=66&type=chunk) [Gross Profit](index=32&type=section&id=Gross%20Profit) In the first half of 2025, gross profit increased by 21.7% year-on-year to RMB 44,785 thousand, with gross profit margin improving by 0.9 percentage points to 11.9%, primarily driven by the growth in higher-margin national pipeline and anti-corrosion treatment businesses Gross Profit and Gross Profit Margin (RMB thousands) | Item | 2025 Half-Year | 2024 Half-Year | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Gross Profit | 44,785 | 36,794 | +21.7% | | Gross Profit Margin | 11.9% | 11.0% | +0.9 percentage points | - The increase in gross profit and gross profit margin was mainly due to the increase in higher-margin national pipeline and anti-corrosion treatment businesses compared to the prior period[67](index=67&type=chunk) [Other Income, Gains and Losses](index=33&type=section&id=Other%20Income%2C%20Gains%20and%20Losses) In the first half of 2025, other income, gains, and losses increased by 53.59% year-on-year to RMB 6,793 thousand, primarily due to increased gains from sales of materials Other Income, Gains and Losses (RMB thousands) | Item | 2025 Half-Year | 2024 Half-Year | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Other Income, Gains and Losses | 6,793 | 4,423 | +53.59% | - The increase was mainly due to increased gains from sales of materials compared to the prior period[68](index=68&type=chunk) [Selling and Distribution Costs](index=33&type=section&id=Selling%20and%20Distribution%20Costs) In the first half of 2025, selling and distribution costs slightly increased to RMB 19,896 thousand, primarily due to higher transportation expenses Selling and Distribution Costs (RMB thousands) | Item | 2025 Half-Year | 2024 Half-Year | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Selling and Distribution Costs | 19,896 | 18,909 | +5.22% | - The increase was mainly due to a slight increase in transportation expenses borne by the subsidiary[69](index=69&type=chunk) [Administrative Expenses](index=33&type=section&id=Administrative%20Expenses) In the first half of 2025, administrative expenses decreased to RMB 38,904 thousand, primarily due to the company's rational planning to reduce various administrative expenses Administrative Expenses (RMB thousands) | Item | 2025 Half-Year | 2024 Half-Year | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Administrative Expenses | 38,904 | 39,763 | -2.16% | - The slight decrease in administrative expenses was mainly due to the Group's continued rational planning to reduce various administrative expenses[70](index=70&type=chunk) [Share of Results of an Associate](index=33&type=section&id=Share%20of%20Results%20of%20an%20Associate) In the first half of 2025, the Group's share of profit from an associate was RMB 7,437 thousand, a significant improvement from a loss of RMB 28 thousand in the prior period, primarily due to the substantial improvement in the performance of the associate, Hunan Shengli Xianggang Steel Pipe Co, Ltd Share of Results of an Associate (RMB thousands) | Item | 2025 Half-Year | 2024 Half-Year | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Share of Results of an Associate | 7,437 | (28) | Turnaround from loss to profit | - The profit was mainly due to the significant improvement in the performance of the associate, Hunan Shengli Xianggang Steel Pipe Co, Ltd, compared to the prior year[71](index=71&type=chunk) [Litigation Provision](index=33&type=section&id=Litigation%20Provision) In the first half of 2025, the Group recognized a one-off litigation provision of approximately RMB 18,403 thousand due to a lawsuit involving its subsidiary, Zhejiang Shengguan Litigation Provision (RMB thousands) | Item | 2025 Half-Year | 2024 Half-Year | | :--- | :--- | :--- | | Litigation Provision | (18,403) | — | - The litigation provision was due to a lawsuit involving the subsidiary, Zhejiang Shengguan, with a final judgment requiring it to bear supplementary compensation liability[72](index=72&type=chunk) [Finance Costs](index=34&type=section&id=Finance%20Costs) In the first half of 2025, finance costs slightly decreased to RMB 6,447 thousand, primarily from interest on bank loans Finance Costs (RMB thousands) | Item | 2025 Half-Year | 2024 Half-Year | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Finance Costs | 6,447 | 6,601 | -2.33% | - Finance costs primarily arose from interest on bank loans[73](index=73&type=chunk) [Other Comprehensive Loss](index=34&type=section&id=Other%20Comprehensive%20Loss) In the first half of 2025, the loss on fair value change of equity investments designated at fair value through other comprehensive income narrowed to RMB 14,272 thousand, an improvement from RMB 25,589 thousand in the prior period Loss on Fair Value Change of Equity Investments (RMB thousands) | Item | 2025 Half-Year | 2024 Half-Year | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Loss on Fair Value Change of Equity Investments | (14,272) | (25,589) | Loss narrowed | - The narrower loss was mainly due to a decrease in the loss on fair value change of equity investments[76](index=76&type=chunk) [Income Tax Expense](index=34&type=section&id=Income%20Tax%20Expense) Income tax expense remained at RMB 20 thousand in the first half of 2025, consistent with the prior period Income Tax Expense (RMB thousands) | Item | 2025 Half-Year | 2024 Half-Year | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Income Tax Expense | 20 | 20 | 0% | [Total Comprehensive Loss for the Period](index=34&type=section&id=Total%20Comprehensive%20Loss%20for%20the%20Period) In the first half of 2025, total comprehensive loss for the period narrowed to RMB 39,636 thousand, an improvement from RMB 49,695 thousand in the prior period, primarily due to a reduction in the loss on fair value change of equity investments Total Comprehensive Loss for the Period (RMB thousands) | Item | 2025 Half-Year | 2024 Half-Year | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Total Comprehensive Loss for the Period | (39,636) | (49,695) | Loss narrowed | - The narrower loss was mainly due to a decrease in the loss on fair value change of financial assets designated at fair value through other comprehensive income[76](index=76&type=chunk) [Financial Position Review](index=35&type=section&id=Financial%20Position%20Review) As of June 30, 2025, the Group's total assets and net assets both decreased, with a significant increase in net current liabilities, and total borrowings increased, all becoming due within one year, leading to a slight rise in the gearing ratio; the Group secured bank loans through asset pledges and closely monitors foreign exchange risks [Assets and Liabilities](index=35&type=section&id=Assets%20and%20Liabilities) As of June 30, 2025, the Group's total assets were RMB 1,021,296 thousand, total liabilities were RMB 633,603 thousand, and net assets were RMB 387,693 thousand, all showing a decrease from the end of 2024 Assets and Liabilities Overview (RMB thousands) | Item | 2025 June 30 | 2024 December 31 | | :--- | :--- | :--- | | Total Assets | 1,021,296 | 1,064,497 | | Total Liabilities | 633,603 | 637,168 | | Net Assets | 387,693 | 427,329 | [Net Current Liabilities](index=35&type=section&id=Net%20Current%20Liabilities) As of June 30, 2025, net current liabilities significantly increased to RMB 146,338 thousand, primarily due to the reclassification of long-term borrowings to current liabilities Net Current Liabilities (RMB thousands) | Item | 2025 June 30 | 2024 December 31 | | :--- | :--- | :--- | | Net Current Liabilities | (146,338) | (15,358) | - The significant increase in net current liabilities was mainly due to long-term borrowings being reclassified as current liabilities because their maturity date is less than one year[78](index=78&type=chunk) [Capital Expenditure](index=35&type=section&id=Capital%20Expenditure) In the first half of 2025, the Group's capital expenditure significantly decreased to RMB 1,318 thousand, primarily for the acquisition of property, plant and equipment Capital Expenditure (RMB thousands) | Item | 2025 Half-Year | 2024 Half-Year | | :--- | :--- | :--- | | Acquisition of property, plant and equipment | 1,318 | 13,622 | [Indebtedness](index=36&type=section&id=Indebtedness) As of June 30, 2025, the Group's total borrowings were RMB 338,806 thousand, an increase from the end of 2024, with all amounts repayable within one year, and the effective annual interest rate for bank loans ranged from 2.73% to 4.38% Total Borrowings (RMB thousands) | Item | 2025 June 30 | 2024 December 31 | | :--- | :--- | :--- | | Total Borrowings | 338,806 | 309,836 | - Approximately **RMB 338,806 thousand** of borrowings are repayable within one year[84](index=84&type=chunk) Effective Annual Interest Rate for Bank Loans | Date | Effective Annual Interest Rate (%) | | :--- | :--- | | 2025 June 30 | 2.73 to 4.38 | | 2024 December 31 | 3.40 to 4.38 | [Financial Management and Treasury Policy](index=36&type=section&id=Financial%20Management%20and%20Treasury%20Policy) The Group's turnover, expenses, assets, and liabilities are largely denominated in RMB, resulting in limited foreign exchange risk, and while no hedging arrangements are in place, foreign exchange movements are closely monitored - The Group's turnover, expenses, assets, and liabilities are largely denominated in RMB, resulting in limited foreign exchange risk[87](index=87&type=chunk) - No hedging arrangements have been entered into, but foreign exchange movements are closely monitored from time to time[87](index=87&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=37&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital%20Structure) As of June 30, 2025, cash and cash equivalents slightly decreased, total borrowings increased, and the gearing ratio rose from 54.3% at the end of 2024 to 55.4% Liquidity and Capital Structure (RMB thousands) | Item | 2025 June 30 | 2024 December 31 | | :--- | :--- | :--- | | Cash and Cash Equivalents | 119,658 | 127,720 | | Borrowings | 338,806 | 309,836 | | Gearing Ratio | 55.4% | 54.3% | [Contingent Liabilities](index=37&type=section&id=Contingent%20Liabilities) As of the six months ended June 30, 2025, the Group had no significant contingent liabilities - As of the six months ended June 30, 2025, the Group had no significant contingent liabilities[89](index=89&type=chunk) [Capital Commitments](index=37&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group had capital commitments of approximately RMB 52 thousand for the acquisition of property, plant and equipment Capital Commitments (RMB thousands) | Item | 2025 June 30 | 2024 December 31 | | :--- | :--- | :--- | | Acquisition of property, plant and equipment | 52 | 175 | [Pledge of Assets](index=37&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the Group pledged approximately RMB 112,718 thousand of property, plant and equipment, approximately RMB 67,144 thousand of right-of-use assets, and RMB 30,000 thousand of pledged bank deposits to secure bank loans of RMB 305,430 thousand - Pledged property, plant and equipment, right-of-use assets, and pledged bank deposits to secure bank loans of **RMB 305,430 thousand**[91](index=91&type=chunk) [Foreign Exchange Risk](index=37&type=section&id=Foreign%20Exchange%20Risk) The Group's business is primarily transacted and settled in RMB, resulting in minimal foreign exchange risk, and while no hedging is undertaken, management closely monitors exchange rate fluctuations - The Group's business is primarily transacted and settled in RMB, resulting in minimal foreign exchange risk[92](index=92&type=chunk) - No forward contracts or other methods are used to hedge foreign exchange risk, but management closely monitors exchange rate fluctuations[92](index=92&type=chunk) [Human Resources and Remuneration Policy](index=38&type=section&id=Human%20Resources%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had 483 employees, with total salaries and related costs amounting to RMB 30,020 thousand, and the company regularly reviews its human resources and remuneration policies, considering regulations, market conditions, industry practices, and employee performance Employees and Remuneration Costs | Item | 2025 June 30 | 2024 June 30 | | :--- | :--- | :--- | | Number of Employees (including directors) | 483 | | | Total Salaries and Related Costs (RMB thousands) | 30,020 | 30,612 | - The Group regularly reviews its human resources and remuneration policies, taking into account local regulations, market conditions, industry practices, and the performance of the Group and individual employees[93](index=93&type=chunk) [Interim Dividend](index=38&type=section&id=Interim%20Dividend) The Board does not recommend the declaration of an interim dividend for the review period - The Board does not recommend the declaration of an interim dividend for the review period[94](index=94&type=chunk) [Events After the Reporting Period](index=38&type=section&id=Events%20After%20the%20Reporting%20Period) Subsequent to the reporting period, the final judgment in the lawsuit involving the Group's subsidiary, Zhejiang Shengguan, was upheld, requiring it to bear supplementary compensation liability; additionally, Shandong Shengli Steel Pipe plans to potentially dispose of its 98% equity interest in Zhejiang Shengguan through a public tender process, but no successful bidder has been identified yet - The final judgment in the lawsuit involving Zhejiang Shengguan was upheld, requiring it to bear supplementary compensation liability[95](index=95&type=chunk) - Shandong Shengli Steel Pipe plans to potentially dispose of its **98%** equity interest in Zhejiang Shengguan through a public tender process, but no successful bidder has been identified yet[95](index=95&type=chunk) [Corporate Governance and Other Information](index=39&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section outlines the Group's adherence to corporate governance principles, compliance with securities trading standards, and other relevant information [Corporate Governance Code](index=39&type=section&id=Corporate%20Governance%20Code) The Company has adopted the principles and code provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules and has complied with all code provisions during the review period - The Company has adopted the principles and code provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules[97](index=97&type=chunk) - During the review period, the Company has complied with all code provisions of the Code[97](index=97&type=chunk) [Compliance with the Model Code for Securities Transactions by Directors of Listed Issuers](index=39&type=section&id=Compliance%20with%20the%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors%20of%20Listed%20Issuers) The Company has adopted the Model Code in Appendix C3 of the Listing Rules as the standard for directors' securities transactions, and all directors have confirmed compliance with this Model Code during the review period - The Company has adopted the Model Code in Appendix C3 of the Listing Rules as the standard for directors' securities transactions[98](index=98&type=chunk) - All directors have confirmed compliance with the required standards set out in the Model Code during the review period[98](index=98&type=chunk) [Purchase, Sale or Redemption of Securities](index=39&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Securities) During the review period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, and as of June 30, 2025, the Company held no treasury shares - During the review period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[99](index=99&type=chunk) - As of June 30, 2025, the Company held no treasury shares[99](index=99&type=chunk) [Sufficiency of Public Float](index=39&type=section&id=Sufficiency%20of%20Public%20Float) The Board confirms that the Company has maintained a sufficient public float as required by the Listing Rules throughout the review period - The Board confirms that the Company has maintained a sufficient public float as required by the Listing Rules throughout the review period[100](index=100&type=chunk) [Audit Committee](index=39&type=section&id=Audit%20Committee) The Company's Audit Committee comprises three independent non-executive directors, with Mr Chen Junzhu as Chairman, and its primary responsibilities include reviewing and overseeing financial reporting processes, and it has reviewed the Group's unaudited financial statements, risk management, and internal control systems - The Audit Committee comprises three independent non-executive directors, including Mr Chen Junzhu (Chairman), Mr Qi Defu, and Mr Qiao Jianmin[101](index=101&type=chunk) - Its primary responsibilities include reviewing and overseeing financial reporting processes, and it has reviewed the Group's unaudited financial statements, risk management, and internal control systems[101](index=101&type=chunk)[102](index=102&type=chunk) [Review of Accounts](index=40&type=section&id=Review%20of%20Accounts) The Audit Committee, together with management and external auditors, has reviewed the Group's accounting principles, internal controls, and financial reporting matters, and has reviewed the unaudited interim financial statements for the review period - The Audit Committee, together with management and external auditors, has reviewed the accounting principles and practices adopted by the Group and discussed audit, internal control, and financial reporting matters[103](index=103&type=chunk) - The external auditors have performed certain agreed-upon procedures on the interim financial information in accordance with Hong Kong Standard on Related Services 4400 (Revised)[103](index=103&type=chunk) [Acknowledgement](index=40&type=section&id=Acknowledgement) The Board expresses gratitude to all shareholders, customers, stakeholders, and employees for their support and contributions, and pledges to consolidate its core business while expanding into new ventures to create long-term value for shareholders - The Board expresses gratitude to all shareholders, customers, stakeholders, and employees for their support and contributions[104](index=104&type=chunk) - The Company pledges to consolidate the stable development of its existing welded pipe core business and refine its oil and gas pipeline products, while also focusing on long-term development, continuing to expand into new businesses, and creating long-term value for its shareholders[104](index=104&type=chunk) [Board of Directors](index=40&type=section&id=Board%20of%20Directors) As of the date of this announcement, the Board of Directors comprises four executive directors, one non-executive director, and three independent non-executive directors - The Board members include Executive Directors Mr Wei Jun, Mr Zhang Bizhuang, Mr Wang Kunxian, Ms Han Aizhi; Non-executive Director Mr Huang Xingwang; and Independent Non-executive Directors Mr Chen Junzhu, Mr Qi Defu, Mr Qiao Jianmin[106](index=106&type=chunk)