[Financial Statements](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) [Condensed Consolidated Statement of Profit or Loss](index=1&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) The company experienced a significant year-on-year decline in revenue, gross profit, profit before tax, and profit attributable to owners Key Financial Data from Condensed Consolidated Statement of Profit or Loss | Metric | 2025 H1 (HKD Thousands) | 2024 H1 (HKD Thousands) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 205,410 | 323,471 | -36% | | Gross Profit and Net Interest Income | 79,519 | 118,953 | -33% | | Profit Before Tax | 21,995 | 52,157 | -58% | | Profit Attributable to Owners of the Company | 9,881 | 26,694 | -63% | | Basic and Diluted Earnings Per Share | 0.17 HK Cents | 0.45 HK Cents | -62% | [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) The company's total comprehensive income shifted from a loss to a profit year-on-year, driven by a significant increase in net exchange differences from foreign currency translation Key Data from Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | 2025 H1 (HKD Thousands) | 2024 H1 (HKD Thousands) | | :--- | :--- | :--- | | Profit for the Period | 10,011 | 26,855 | | Fair Value Change of Equity Investments at Fair Value Through Other Comprehensive Income | 20,828 | (7,848) | | Net Exchange Differences Arising from Translation of Foreign Operations | 82,014 | (80,959) | | Total Comprehensive Income for the Period | 112,853 | (61,952) | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) Total assets and liabilities increased, with a substantial rise in net current assets and non-current liabilities, indicating asset expansion and a shift in liability structure Key Data from Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (HKD Thousands) | December 31, 2024 (HKD Thousands) | Change Rate | | :--- | :--- | :--- | :--- | | Non-current Assets | 3,788,406 | 3,861,767 | -2% | | Current Assets | 5,342,700 | 4,515,607 | +18% | | **Total Assets** | **9,131,106** | **8,377,374** | **+9%** | | Current Liabilities | (3,107,392) | (3,515,666) | -12% | | Non-current Liabilities | (3,153,280) | (2,092,198) | +51% | | **Total Liabilities** | **(6,260,672)** | **(5,607,864)** | **+12%** | | Net Current Assets | 2,235,308 | 999,941 | +124% | | Equity Attributable to Owners of the Company | 2,865,129 | 2,764,335 | +4% | [Notes to the Condensed Consolidated Financial Statements](index=6&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) [Basis of Preparation](index=6&type=section&id=1%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) The condensed consolidated financial statements are prepared in accordance with HKAS 34 and HKEX Listing Rules, extracted from the 2024 annual report with an unqualified opinion - The statements are prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' and the HKEX Listing Rules[9](index=9&type=chunk) - The 2024 statutory annual report has been delivered to the Registrar of Companies, and the auditor's report was unqualified[9](index=9&type=chunk) [Accounting Policies](index=6&type=section&id=2%20%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) The condensed consolidated financial statements are prepared on a historical cost basis, with accounting policies consistent with the 2024 annual report, and new HKFRS amendments have no material impact - The statements are prepared on a historical cost basis, except for certain properties and financial instruments measured at fair value[10](index=10&type=chunk) - Accounting policies are consistent with those presented in the Group's annual financial statements for the year ended December 31, 2024, except for changes due to the application of amendments to HKFRS[10](index=10&type=chunk) - New amendments to HKFRS have no material impact on the Group's financial position and performance during the current and prior periods[11](index=11&type=chunk) [Revenue](index=7&type=section&id=3%20%E7%87%9F%E6%A5%AD%E9%A1%8D) Total revenue significantly decreased by 36% year-on-year, primarily due to reduced property sales and leasing income, with property sales experiencing the largest decline Revenue Breakdown by Account | Business Type | 2025 H1 (HKD Thousands) | 2024 H1 (HKD Thousands) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Property Sales | 9,439 | 58,373 | -84% | | Consulting Service Income from Lease Arrangements | 7,621 | – | Not Applicable | | Marine Tourism and Hotel Services Income | 16,520 | 18,227 | -9% | | Revenue from Customer Contracts | 33,580 | 76,600 | -56% | | Rental Income from Investment Properties | 933 | 1,362 | -31% | | Rental Income from Operating Leases of Own Machinery and Equipment | 43,720 | 54,942 | -20% | | Interest Income from Loans Receivable | 127,081 | 189,789 | -33% | | Finance Lease Income | 96 | 778 | -88% | | **Total Revenue** | **205,410** | **323,471** | **-36%** | [Segment Information](index=9&type=section&id=4%20%E5%88%86%E9%A1%9E%E8%B3%87%E6%96%99) Leasing remains the primary revenue source but saw significant declines in revenue and performance, property development and investment also performed poorly, while marine tourism and hotel services revenue slightly decreased but gross profit increased Revenue and Performance Analysis by Reportable Segment | Business Segment | 2025 H1 Revenue (HKD Thousands) | 2024 H1 Revenue (HKD Thousands) | Revenue Y-o-Y Change | 2025 H1 Segment Results (HKD Thousands) | 2024 H1 Segment Results (HKD Thousands) | Results Y-o-Y Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Leasing | 178,518 | 245,509 | -27% | 46,154 | 73,878 | -38% | | Property Development and Investment | 10,372 | 59,735 | -83% | (2,695) | 14,232 | -119% | | Marine Tourism Services and Hotel | 16,520 | 18,227 | -9% | (2,251) | (1,950) | +15% | | **Total** | **205,410** | **323,471** | **-36%** | **21,995 (Profit Before Tax)** | **52,157 (Profit Before Tax)** | **-58%** | - Unallocated corporate income primarily includes interest income from deposits and related parties, not directly attributable to any operating segment[18](index=18&type=chunk) - Unallocated corporate expenses mainly include depreciation, head office staff costs, exchange differences, and legal and professional fees, not directly attributable to any operating segment[19](index=19&type=chunk) [Other Income and Gains, Net](index=10&type=section&id=5%20%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A%E6%B7%A8%E9%A1%8D) Other income and gains, net, decreased by 36% year-on-year, mainly due to lower interest income from deposits and other financial assets, despite an increase in gains from disposal of investment properties Details of Other Income and Gains, Net | Item | 2025 H1 (HKD Thousands) | 2024 H1 (HKD Thousands) | | :--- | :--- | :--- | | Interest Income from Deposits and Other Financial Assets | 4,829 | 9,521 | | Interest Income from Related Parties | 1,015 | 1,116 | | Government Grants | 196 | 74 | | Gain on Disposal of Investment Properties | 140 | – | | Gain on Disposal of Property, Plant and Equipment | 116 | 26 | | Others | 787 | 278 | | **Total** | **7,083** | **11,015** | [Finance Costs](index=11&type=section&id=6%20%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) Total finance costs decreased by 37% year-on-year, primarily due to reduced interest on bank borrowings and asset-backed securities, while corporate bond interest began to accrue Details of Finance Costs | Item | 2025 H1 (HKD Thousands) | 2024 H1 (HKD Thousands) | | :--- | :--- | :--- | | Interest on Bank Borrowings | 40,003 | 69,345 | | Interest on Asset-Backed Securities | 24,628 | 42,397 | | Interest on Corporate Bonds | 5,612 | – | | Interest on Loans from Related Parties | 3,108 | 4,048 | | Interest on Lease Liabilities | 78 | 166 | | **Total Finance Costs** | **73,429** | **115,956** | | Less: Amount Capitalized into Cost of Sales | (66,341) | (100,605) | | **Net Finance Costs** | **7,088** | **15,351** | [Income Tax Expense](index=11&type=section&id=7%20%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Income tax expense decreased by 53% year-on-year, mainly due to lower China corporate income tax and land appreciation tax, with deferred tax shifting from expense to income Details of Income Tax Expense | Item | 2025 H1 (HKD Thousands) | 2024 H1 (HKD Thousands) | | :--- | :--- | :--- | | China Corporate Income Tax | 16,122 | 24,232 | | China Land Appreciation Tax | 893 | 3,099 | | **Total Current Tax** | **17,015** | **27,331** | | Deferred Tax | (5,031) | (2,029) | | **Total Income Tax Expense** | **11,984** | **25,302** | [Profit for the Period](index=12&type=section&id=8%20%E6%9C%9F%E5%85%A7%E6%BA%A2%E5%88%A9) Profit for the period was net of staff costs, impairment losses on expected credit losses, depreciation, and net exchange losses, with depreciation and expected credit loss impairment increasing Items Deducted from Profit for the Period | Item | 2025 H1 (HKD Thousands) | 2024 H1 (HKD Thousands) | | :--- | :--- | :--- | | Total Staff Costs | 27,967 | 29,241 | | Impairment Losses on Expected Credit Losses | 4,735 | 2,211 | | Depreciation of Property, Plant and Equipment | 68,433 | 52,006 | | Cost of Inventories Sold (included in cost of sales) | 13,042 | 50,717 | | Net Exchange Losses | 5,255 | 6,105 | [Dividends](index=12&type=section&id=9%20%E8%82%A1%E6%81%AF) The company declared a final dividend of 0.20 HK cents per share for 2024, totaling HKD 11.929 million, but the board resolved not to declare any interim dividend for the current period - A final dividend of **0.20 HK cents per share** for the year ended December 31, 2024 (2024: 0.34 HK cents per share for the year ended December 31, 2023) was declared to the owners of the Company[24](index=24&type=chunk) - The total final dividend declared for the interim period was **HKD 11,929,000** (2024: approximately HKD 20,280,000)[24](index=24&type=chunk) - As of the end of the interim period, the directors resolved not to declare any dividend for the current interim period[25](index=25&type=chunk) [Earnings Per Share](index=13&type=section&id=10%20%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) Basic and diluted earnings per share for the period were 0.17 HK cents, a significant decrease year-on-year, with no dilutive equity instruments, thus diluted EPS equals basic EPS Earnings Per Share Data | Metric | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Profit Attributable to Owners of the Company (HKD Thousands) | 9,881 | 26,694 | | Weighted Average Number of Ordinary Shares (Thousands) | 5,952,885 | 5,952,885 | | Basic and Diluted Earnings Per Share | 0.17 HK Cents | 0.45 HK Cents | - As there are no dilutive potential equity instruments, diluted earnings per share are the same as basic earnings per share[26](index=26&type=chunk) [Finance Lease Receivables and Loans Receivable](index=13&type=section&id=11%20%E8%9E%8D%E8%B3%87%E7%A7%9F%E8%B3%83%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85%E5%8F%8A%E6%87%89%E6%94%B6%E8%B2%B8%E6%AC%BE) Net finance lease receivables and loans receivable slightly increased, with a corresponding rise in credit loss provisions; most receivables are from state-owned enterprises, and some are pledged as collateral Key Data for Finance Lease Receivables and Loans Receivable | Metric | June 30, 2025 (HKD Thousands) | December 31, 2024 (HKD Thousands) | | :--- | :--- | :--- | | Gross Finance Lease Receivables and Loans Receivable | 6,672,707 | 6,631,636 | | Less: Provision for Credit Losses | (69,399) | (62,795) | | **Net Amount** | **6,603,308** | **6,568,841** | | Current Assets | 3,352,240 | 3,255,832 | | Non-current Assets | 3,251,068 | 3,313,009 | - Provision for credit losses increased by **11%** to approximately **HKD 69,399,000**[28](index=28&type=chunk)[30](index=30&type=chunk)[57](index=57&type=chunk) - Effective annual interest rates for fixed-rate loans receivable ranged from **3.42% to 9.40%**, and for floating-rate loans receivable from **3.04% to 7.84%**[31](index=31&type=chunk) - Approximately **99%** of net lease receivables are from state-owned enterprises[54](index=54&type=chunk) - Approximately **HKD 3.064 billion** of finance lease receivables and loans receivable are pledged as collateral for bank borrowings, and approximately **HKD 1.390 billion** are pledged as collateral for asset-backed securities[32](index=32&type=chunk)[86](index=86&type=chunk)[87](index=87&type=chunk) [Trade and Other Receivables](index=17&type=section&id=12%20%E8%B2%BF%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) Total trade and other receivables slightly decreased, with most trade receivables aged within 30 days, and some pledged as collateral for bank borrowings and asset-backed securities Details of Trade and Other Receivables | Item | June 30, 2025 (HKD Thousands) | December 31, 2024 (HKD Thousands) | | :--- | :--- | :--- | | Trade Receivables and Bills Receivable | 2,543 | 2,760 | | Other Prepayments and Deposits | 4,989 | 3,596 | | Other Receivables | 16,941 | 14,149 | | Other Recoverable Taxes | – | 7,952 | | Amounts Due from a Related Company | 2,458 | 1,319 | | Amounts Due from Fellow Subsidiaries | 494 | – | | **Total** | **27,425** | **29,776** | Ageing Analysis of Trade Receivables and Bills Receivable | Ageing | June 30, 2025 (HKD Thousands) | December 31, 2024 (HKD Thousands) | | :--- | :--- | :--- | | 1 to 30 days | 1,471 | 2,351 | | 31 to 90 days | 1,046 | 177 | | Over 90 days | 26 | 232 | | **Total** | **2,543** | **2,760** | - Approximately **HKD 191,000** of trade receivables are pledged as collateral for bank borrowings, and approximately **HKD 1,260,000** are pledged as collateral for asset-backed securities[33](index=33&type=chunk)[86](index=86&type=chunk)[87](index=87&type=chunk) [Trade and Other Payables](index=18&type=section&id=13%20%E8%B2%BF%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) Total trade and other payables significantly decreased, mainly due to reduced trade payables and deposits received, with some deposits classified as non-current liabilities Details of Trade and Other Payables | Item | June 30, 2025 (HKD Thousands) | December 31, 2024 (HKD Thousands) | | :--- | :--- | :--- | | Trade Payables and Bills Payable | 6,868 | 112,448 | | Other Payables and Accruals | 83,030 | 73,721 | | Deposits Received | 242,993 | 308,003 | | Accrued Construction Costs | 6,966 | 11,554 | | Amounts Due to Ultimate Holding Company | 2,071 | 8,074 | | Amounts Due to Immediate Holding Company | 11 | 1,691 | | Amounts Due to Fellow Subsidiaries | 1,914 | 197 | | **Total** | **343,853** | **515,688** | | Current Liabilities | 198,147 | 300,704 | | Non-current Liabilities | 145,706 | 214,984 | Ageing Analysis of Trade Payables and Bills Payable | Ageing | June 30, 2025 (HKD Thousands) | December 31, 2024 (HKD Thousands) | | :--- | :--- | :--- | | 1 to 30 days | 172 | 106,095 | | 31 to 90 days | 6,352 | 6,695 | | Over 90 days | 1 | 1 | | **Total** | **6,868** | **112,448** | - Approximately **HKD 145,706,000** of deposits received are presented as non-current liabilities[34](index=34&type=chunk) [Corporate Bonds](index=19&type=section&id=14%20%E5%85%AC%E5%8F%B8%E5%82%B5%E5%88%B8) The company issued two tranches of corporate bonds totaling RMB 1 billion (approx. HKD 1.07 billion) with effective annual interest rates of 2.17% to 2.18%, a five-year term, and early redemption, put option, and coupon rate adjustment features - Two tranches of corporate bonds were issued at par during the interim period, each with a principal amount of **RMB 500,000,000** (equivalent to **HKD 535,000,000**)[35](index=35&type=chunk) - The corporate bonds have an effective annual interest rate ranging from **2.17% to 2.18%**, a five-year term, with interest paid annually[35](index=35&type=chunk)[36](index=36&type=chunk) - The corporate bonds include early redemption options, put options, and coupon rate adjustment options[36](index=36&type=chunk)[37](index=37&type=chunk)[38](index=38&type=chunk) [Capital Commitments](index=19&type=section&id=15%20%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94) As of the reporting period, the company had no contracted but unprovided capital commitments, unlike the prior year which had minor commitments for property, plant, and equipment purchases Capital Commitments | Item | June 30, 2025 (HKD Thousands) | December 31, 2024 (HKD Thousands) | | :--- | :--- | :--- | | Contracted but not provided for: Purchase of property, plant and equipment | – | 135 | - The Group had no capital commitments as of **June 30, 2025**[88](index=88&type=chunk) [Contingent Liabilities](index=19&type=section&id=16%20%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) The company provided contingent liability guarantees of approximately HKD 236 million for mortgage loans to property buyers of the Chengtong Xiangxie Li project, with directors deeming the financial impact insignificant and no major litigation - The Group's contingent liabilities for guarantees amounted to approximately **HKD 236,040,000** (December 31, 2024: approximately HKD 230,470,000), provided for mortgage loans granted by banks to certain property unit buyers of the Group's Chengtong Xiangxie Li project[39](index=39&type=chunk) - The directors of the Company believe that the financial impact arising from providing these financial guarantees is insignificant and thus not recognized in these condensed consolidated financial statements[40](index=40&type=chunk) - The Group is not involved in any material litigation or arbitration, nor are the directors aware of any outstanding or threatened material litigation or claims against the Group[40](index=40&type=chunk) [Management Discussion and Analysis](index=20&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) [Financial Performance Review](index=20&type=section&id=%E4%B8%80.%20%E8%B2%A1%E5%8B%99%E6%A5%AD%E7%B8%BE%E5%9B%9E%E9%A1%A7) Overall financial performance significantly declined, with substantial reductions in revenue, gross profit, and profit attributable to shareholders, influenced by global economic slowdown, geopolitical shifts, and China's lower interest rates and tight supply of quality assets Key Financial Performance Review Data | Metric | 2025 H1 (HKD Thousands) | 2024 H1 (HKD Thousands) | Change Rate | | :--- | :--- | :--- | :--- | | Consolidated Revenue | 205,410 | 323,471 | -36% | | Consolidated Gross Profit and Net Interest Income | 79,519 | 118,953 | -33% | | Profit Before Tax | 21,995 | 52,157 | -58% | | Profit Attributable to Shareholders | 9,881 | 26,694 | -63% | - Financial performance was primarily affected by slow global economic recovery, ongoing geopolitical and economic shifts, and China's declining interest rates and scarcity of quality assets[42](index=42&type=chunk) - Consolidated cost of sales decreased by **38%** to approximately **HKD 125.89 million**, consistent with the reduced business volume in the leasing segment during the review period[43](index=43&type=chunk) - Net impairment loss under the expected credit loss model was approximately **HKD 4.74 million**, an increase of **114%** compared to 2024 H1[44](index=44&type=chunk) - Fair value loss on investment properties was approximately **HKD 75,000**, a significant reduction from approximately HKD 7.78 million in 2024 H1[45](index=45&type=chunk) [Business Review](index=22&type=section&id=%E4%BA%8C.%20%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) The company's main businesses include leasing, property development and investment, and marine tourism and hotel services; leasing faces challenges but is expanding, property development is impacted by market downturns, and marine tourism and hotel services show improved gross margins [Segment Performance](index=22&type=section&id=A.%20%E5%88%86%E9%A1%9E%E8%A1%A8%E7%8F%BE) Segment performance varied, with significant declines in revenue and results for leasing and property development and investment, while marine tourism and hotel services saw slightly lower revenue but substantially improved gross margins [Leasing Business](index=22&type=section&id=%281%29%20%E7%A7%9F%E8%B3%83) Leasing business revenue and segment results significantly decreased due to reduced new placements and lower lease receivables balances; the company is actively expanding into new areas like aircraft leasing and strengthening risk control and financing channels Leasing Business Segment Performance | Metric | 2025 H1 (HKD Thousands) | 2024 H1 (HKD Thousands) | Change Rate | | :--- | :--- | :--- | :--- | | Interest Income | 127,177 | 190,567 | -33% | | Consulting Service Fees | 7,621 | – | Not Applicable | | Rental Income | 43,720 | 54,942 | -20% | | Segment Revenue | 178,518 | 245,509 | -27% | | Cost of Sales | (112,852) | (153,802) | -27% | | Gross Profit and Net Interest Income | 65,666 | 91,707 | -28% | | Gross Profit Margin | 37% | 37% | 0% | | Segment Results | 46,154 | 73,878 | -38% | - **14 new sale-and-leaseback arrangements** were entered into, with a total lease principal of approximately **HKD 1.90924 billion**, lease terms of **1 to 5 years**, and floating annual interest rates ranging from **2.85% to 3.9%**[48](index=48&type=chunk) - Successfully launched its first aircraft leasing business, further diversifying the Group's lease asset types[69](index=69&type=chunk) - Net lease receivables were approximately **HKD 6.60331 billion**, a slight increase from December 31, 2024, accounting for **72%** of total assets[53](index=53&type=chunk) - Approximately **99%** of net lease receivables are from state-owned enterprises, indicating relatively low default risk[54](index=54&type=chunk)[58](index=58&type=chunk) - Total provision for expected credit losses increased by **11%** compared to December 31, 2024[57](index=57&type=chunk) [Property Development and Investment](index=25&type=section&id=%282%29%20%E7%89%A9%E6%A5%AD%E7%99%BC%E5%B1%95%E5%8F%8A%E6%8A%95%E8%B3%87) Property development and investment revenue and gross profit significantly declined due to continuous market price adjustments and fewer housing deliveries; the company aims to complete project sales as soon as possible Property Development and Investment Segment Performance | Metric | 2025 H1 (HKD Thousands) | 2024 H1 (HKD Thousands) | Change Rate | | :--- | :--- | :--- | :--- | | Property Sales | 9,439 | 58,373 | -84% | | Rental Income | 933 | 1,362 | -31% | | Segment Revenue | 10,372 | 59,735 | -83% | | Cost of Sales | (6,711) | (40,561) | -83% | | Gross Profit | 3,661 | 19,174 | -81% | | Gross Profit Margin | 32% | 35% | -3% | | Segment Results | (2,695) | 14,232 | -119% | - Sales revenue significantly decreased by **84%**, mainly due to continuous downward market price adjustments, weak willingness of homeowners to take possession, and a year-on-year reduction in actual housing deliveries[60](index=60&type=chunk) - The average selling price per square meter of residential area for the Chengtong Xiangxie Li project decreased to approximately **RMB 4,800**[60](index=60&type=chunk) - Completed and unsold residential and commercial area was approximately **37,286 square meters**[60](index=60&type=chunk) [Marine Tourism Services and Hotel](index=26&type=section&id=%283%29%20%E6%B5%B7%E4%B8%8A%E6%97%85%E9%81%8A%E6%9C%8D%E5%8B%99%E5%92%8C%E9%85%92%E5%BA%97) Marine tourism services and hotel business revenue slightly decreased, but gross profit significantly increased, primarily due to a higher proportion of hotel sales revenue and reduced cost of sales Marine Tourism Services and Hotel Segment Performance | Metric | 2025 H1 (HKD Thousands) | 2024 H1 (HKD Thousands) | Change Rate | | :--- | :--- | :--- | :--- | | Segment Revenue | 16,520 | 18,227 | -9% | | Cost of Sales | (6,331) | (10,156) | -38% | | Gross Profit | 10,189 | 8,071 | +26% | | Gross Profit Margin | 62% | 44% | +18% | | Segment Results | (2,251) | (1,950) | +15% | - Sales revenue from the hotel business accounted for nearly **80%** of this segment's revenue[62](index=62&type=chunk) [Other Income and Gains](index=27&type=section&id=B.%20%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A) Total other income and gains decreased by 36% year-on-year, mainly due to lower interest income from deposits, other financial assets, and related party loans - Total other income and gains were approximately **HKD 7.08 million**, a **36%** decrease compared to 2024 H1[63](index=63&type=chunk) - Interest income from deposits and other financial assets, and loans granted to a related party, was approximately **HKD 5.84 million**, a decrease from approximately HKD 10.64 million in 2024 H1[63](index=63&type=chunk) [Selling and Administrative Expenses](index=27&type=section&id=C.%20%E9%8A%B7%E5%94%AE%E5%8F%8A%E8%A1%8C%E6%94%BF%E8%B2%BB%E7%94%A8) Selling expenses significantly increased by 70% due to increased marketing activities, while administrative expenses decreased by 8% due to reduced office expenses, amortization, and depreciation Selling and Administrative Expenses | Item | 2025 H1 (HKD Thousands) | 2024 H1 (HKD Thousands) | Change Rate | | :--- | :--- | :--- | :--- | | Selling Expenses | 9,560 | 5,608 | +70% | | Administrative Expenses | 43,149 | 46,865 | -8% | - The increase in selling expenses was primarily due to increased marketing costs for promoting the Group's Chengtong Xiangxie Li project sales[64](index=64&type=chunk) - The decrease in administrative expenses was mainly due to reduced office expenses, amortization, and depreciation across various business segments[65](index=65&type=chunk) [Finance Costs](index=27&type=section&id=D.%20%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) Total finance costs decreased by 37% year-on-year, and net finance costs decreased by 54%, primarily due to reduced asset-backed securities maturities, bank loan repayments, and lower Hong Kong interest rates Finance Costs | Item | 2025 H1 (HKD Thousands) | 2024 H1 (HKD Thousands) | Change Rate | | :--- | :--- | :--- | :--- | | Total Interest Expense | 73,429 | 115,956 | -37% | | Less: Interest Expense Transferred to Cost of Sales | (66,341) | (100,605) | -34% | | **Net Finance Costs** | **7,088** | **15,351** | **-54%** | - The decrease in total finance costs was mainly due to the reduction in asset-backed securities after maturity and repayment of bank borrowings[67](index=67&type=chunk) - Net finance costs decreased by approximately **54%**, primarily due to lower interest rates in Hong Kong during the review period[67](index=67&type=chunk) [Outlook](index=28&type=section&id=%E4%B8%89.%20%E5%89%8D%E6%99%AF%E5%B1%95%E6%9C%9B) The company's leasing business will focus on national priority areas, accelerate specialization, diversify financing, and strengthen risk control; property development and investment will expedite existing property sales; marine tourism and hotel services will restructure customer channels, enhance customer management, and boost online traffic - Breakthroughs were achieved in new leasing projects, with multiple successful implementations, including the first Airbus A321-200 aircraft lease order, diversifying the Group's lease asset types[69](index=69&type=chunk) - Chengtong Financial Leasing was rated as a 'Beijing AAA Credit Enterprise' and '2025 Beijing Credit Commitment Enterprise' by the Beijing Leasing Industry Association[69](index=69&type=chunk) - Successfully issued two tranches of corporate bonds, totaling **RMB 1 billion**, with coupon rates setting a historical low for AA+ leasing companies' bonds of the same tenor[70](index=70&type=chunk) - In the second half, the leasing business will maintain strategic focus on business layout, increase investment in nationally supported sectors, and accelerate the pace of business specialization[71](index=71&type=chunk) - The property development and investment business will closely monitor industry policies, accelerate the sale of existing property units, and recover funds for the core leasing business[72](index=72&type=chunk) - In the second half, the marine tourism services and hotel business will focus on restructuring customer source channels, strengthening customer lifecycle management, and leveraging platforms to enhance online traffic[73](index=73&type=chunk) [Asset Structure, Capital Liquidity and Financial Resources](index=30&type=section&id=%E5%9B%9B.%20%E8%B3%87%E7%94%A2%E7%B5%90%E6%A7%8B%E3%80%81%E8%B3%87%E6%9C%AC%E6%B5%81%E5%8B%95%E6%80%A7%E5%8F%8A%E8%B2%A1%E6%94%BF%E8%B3%87%E6%BA%90) Total assets and liabilities increased, with lease receivables remaining the largest component; liquidity improved, ample credit facilities are available, and total borrowings, primarily RMB-denominated, also increased Asset Structure and Liability Status | Metric | June 30, 2025 (HKD Thousands) | December 31, 2024 (HKD Thousands) | Change Rate | | :--- | :--- | :--- | :--- | | Equity Attributable to Owners of the Company | 2,865,130 | 2,764,340 | +4% | | Total Assets | 9,131,106 | 8,377,374 | +9% | | Total Liabilities | 6,260,672 | 5,607,864 | +12% | | Lease Receivables as % of Total Assets | 72% | 78% | -6% | | Current Ratio | 1.72 times | 1.28 times | +34% | | Cash and Deposits | 1,775,330 | 1,033,794 | +72% | | Total Borrowings | 5,698,770 | 4,904,290 | +16% | - Possesses over **HKD 13.6 billion** in ample standby credit facilities, ensuring the Group's stable business development while maintaining liquidity[75](index=75&type=chunk) - Total borrowings are primarily denominated in RMB, including bank loans, senior asset-backed securities, outstanding corporate bonds, and related party loans[77](index=77&type=chunk) [Financial Leverage Ratios](index=31&type=section&id=%E4%BA%94.%20%E8%B2%A1%E5%8B%99%E5%8B%9D%E6%A1%BF%E6%AF%94%E7%8E%87) Total debt-to-equity and total debt-to-asset ratios increased due to higher bank borrowings, but the interest coverage ratio remained at 4 times, indicating sufficient funds for interest payment obligations Financial Leverage Ratios | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Debt / Total Equity | 1.99 times | 1.77 times | | Total Debt / Total Assets | 0.62 times | 0.59 times | | Total Debt / EBITDA | 58 times | 23 times | | Interest Coverage | 4 times | 4 times | - The interest coverage ratio of **4 times** indicates the Group has sufficient buffer funds to ensure fulfillment of its interest payment obligations[79](index=79&type=chunk) [Material Investments](index=32&type=section&id=%E5%85%AD.%20%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87) As of the reporting period, the company had no material investments exceeding 5% of total assets and will continue to focus on core leasing business while prudently investing in other financial assets - The Group has no material investments exceeding **5%** of its total asset value[80](index=80&type=chunk) - The Group will continue to focus on and invest in its core leasing business, while prudently investing in other financial assets to maximize shareholder value[80](index=80&type=chunk) [Financial Policies](index=32&type=section&id=%E4%B8%83.%20%E7%90%86%E8%B2%A1%E6%94%BF%E7%AD%96) The company faces interest rate and foreign exchange risks; most lease receivables use floating rates, effectively hedging interest rate risk from China bank borrowings; RMB appreciation against HKD increased foreign exchange reserves; no hedging measures are currently in place, but risks are monitored for timely management [Interest Rate Risk](index=32&type=section&id=%28a%29%20%E5%88%A9%E7%8E%87%E9%A2%A8%E9%9A%AA) The company faces interest rate risk, but most lease receivables are at floating rates, effectively hedging interest rate risk arising from China bank borrowings - The Group's bank borrowings amounted to approximately **HKD 3.08647 billion**, of which approximately **HKD 1.81207 billion** are floating-rate and approximately **HKD 1.27440 billion** are fixed-rate[82](index=82&type=chunk) - Most of the Group's lease receivables are accounted for at floating interest rates, effectively hedging the interest rate risk arising from China bank borrowings[83](index=83&type=chunk) [Foreign Exchange Risk](index=32&type=section&id=%28b%29%20%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA) The company's primary business is in RMB, with assets and liabilities denominated in HKD and RMB; RMB appreciation against HKD increased foreign exchange reserves; no hedging measures are currently in place, but currency fluctuations are monitored for timely risk management - The Group's business is primarily conducted in RMB, with most assets and liabilities denominated in HKD and RMB[84](index=84&type=chunk) - Due to the appreciation of RMB against HKD during the review period, the Group's foreign exchange reserves increased by approximately **HKD 81.42 million** as of **June 30, 2025**[84](index=84&type=chunk) - Currently, the Group has not adopted any measures to hedge these risks but will closely monitor changes in interest rates and foreign currency exchange rates, and implement risk management and hedging transactions as appropriate[85](index=85&type=chunk) [Pledge of Assets](index=33&type=section&id=%E5%85%AB.%20%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of the reporting period, the company had pledged bank deposits, lease receivables, and trade receivables as collateral for bank borrowings and asset-backed securities - Pledged bank deposits amounted to approximately **HKD 2.71 million**, of which **HKD 2.54 million** was pledged for bank financing granted to mortgagees of the Chengtong Xiangxie Li project[86](index=86&type=chunk) - Lease receivables with a carrying amount of approximately **HKD 3.06435 billion** and trade receivables of approximately **HKD 191,000** are pledged as collateral for bank borrowings[86](index=86&type=chunk) - Lease receivables with a carrying amount of approximately **HKD 1.39021 billion** and trade receivables of approximately **HKD 1.26 million** are pledged as collateral for asset-backed securities[87](index=87&type=chunk) [Capital Commitments and Contingent Liabilities](index=33&type=section&id=%E4%B9%9D.%20%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94%E5%8F%8A%E6%88%96%E6%9C%89%E8%B2%A0%E5%82%B5) As of the reporting period, the company had no capital commitments; details of contingent liabilities are provided in Notes 18 and 19 to the financial statements - The Group had no capital commitments as of **June 30, 2025**[88](index=88&type=chunk) - Details of the Group's capital commitments and contingent liabilities are provided in Notes 18 and 19 to the financial statements in this announcement, respectively[88](index=88&type=chunk) [Future Plans for Material Investments or Capital Assets](index=33&type=section&id=%E5%8D%81.%20%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E6%88%96%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2%E4%B9%8B%E6%9C%AA%E4%BE%86%E8%A8%88%E5%8A%83) Except as disclosed in this announcement, the company has no other future plans for material investments or capital assets for the coming year - Except as disclosed in this announcement, the Group has no other future plans for material investments or capital assets for the coming year[89](index=89&type=chunk) [Human Resources and Remuneration Policies](index=34&type=section&id=%E5%8D%81%E4%B8%80.%20%E4%BA%BA%E5%8A%9B%E8%B3%87%E6%BA%90%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of the reporting period, the company had 202 employees with total staff costs of approximately HKD 28 million; remuneration policies are based on experience, skills, qualifications, responsibilities, and market trends, with training provided - As of **June 30, 2025**, the Group had **202 employees** (December 31, 2024: 230 employees)[90](index=90&type=chunk) - During the review period, the Group's total staff costs (including directors' emoluments and MPF) were approximately **HKD 28 million**[90](index=90&type=chunk) - Employee remuneration is determined based on employee experience, skills, qualifications, nature of responsibilities, and current market trends[90](index=90&type=chunk) - The Group provides or sponsors various training programs and courses for its employees based on business needs[91](index=91&type=chunk) [Events After the Reporting Period](index=34&type=section&id=%E5%8D%81%E4%BA%8C.%20%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) No material events occurred after the reporting period - No material events occurred after the review period[92](index=92&type=chunk) [Other Information](index=34&type=section&id=%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) [Purchase, Sale and Redemption of Listed Securities](index=34&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E5%8F%8A%E8%B4%96%E5%9B%9E%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) During the review period, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities - During the review period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[93](index=93&type=chunk) [Standard Code for Securities Transactions by Directors](index=34&type=section&id=%E8%91%A3%20%E4%BA%8B%20%E9%80%B2%20%E8%A1%8C%20%E8%AD%89%20%E5%88%B8%20%E4%BA%A4%20%E6%98%93%20%E7%9A%84%20%E6%A8%99%20%E6%BA%96%20%E5%AE%88%20%E5%89%87) The company adopted a code of conduct for directors' securities transactions, meeting HKEX Listing Rules Appendix C3 standards, and all directors confirmed compliance during the review period - The Company has adopted a code of conduct for directors' securities transactions, the standards of which are no less exacting than those set out in the Model Code for Securities Transactions by Directors of Listed Issuers in Appendix C3 of the Listing Rules[94](index=94&type=chunk) - Following specific enquiries with each of the Company's directors, the Company has received confirmation from all directors that they have complied with the required standards of the code of conduct and the Model Code throughout the review period[94](index=94&type=chunk) [Corporate Governance](index=34&type=section&id=%E4%BC%81%20%E6%A5%AD%20%E7%AE%A1%20%E6%B2%BB) The company complied with all Corporate Governance Code provisions, but a deviation exists as the Chairman and CEO roles are not separated; the company is seeking a suitable candidate to rectify this - The directors believe that the Company has complied with all code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules throughout the review period[95](index=95&type=chunk) - The roles of Chairman and Chief Executive Officer should be separate and not performed by the same individual; however, Mr. Li Qian serves concurrently as Chairman of the Board and oversees daily business management, representing a deviation[96](index=96&type=chunk) - The Company is seeking a suitable candidate for the position of Managing Director and/or Chief Executive Officer to re-comply with Code Provision C.2.1 of the Corporate Governance Code[97](index=97&type=chunk) [Review of Accounts](index=35&type=section&id=%E5%AF%A9%20%E9%96%B1%20%E8%B3%A6%20%E7%9B%AE) The Board believes the financial information complies with HKEX Listing Rules Appendix D2 and has been reviewed by the Audit Committee and auditors in accordance with HKSRE 2410 - The Board believes that the financial information disclosed in this announcement complies with the requirements of Appendix D2 of the Listing Rules[98](index=98&type=chunk) - The Company's Audit Committee has reviewed the Group's unaudited interim financial information for the review period, which has also been reviewed by the Company's auditors in accordance with Hong Kong Standard on Review Engagements 2410 issued by the HKICPA[98](index=98&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=35&type=section&id=%E7%99%BB%20%E8%BC%89%20%E4%B8%AD%20%E6%9C%9F%20%E6%A5%AD%20%E7%B8%BE%20%E5%85%AC%20%E5%91%8A%20%E5%8F%8A%20%E4%B8%AD%20%E6%9C%9F%20%E5%A0%B1%20%E5%91%8A) The results announcement has been published on the HKEX and company websites, and the interim report will be published in due course - This results announcement is published on the HKEX website www.hkexnews.hk and the Company's website www.hk217.com[99](index=99&type=chunk) - The Company's 2025 interim report will be published on the aforementioned websites in due course[99](index=99&type=chunk)

[Financial Summary](index=1&type=section&id=Financial%20Summary) The group reported a 2.7% revenue increase to **HKD 4,300.9 million**, while gross profit, operating profit, and profit for the period all declined | Indicator | 2025 (million HKD) | 2024 (million HKD) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 4,300.9 | 4,187.6 | 2.7% | | Gross Profit | 2,134.8 | 2,201.5 | -3.0% | | Operating Profit | 202.0 | 279.4 | -27.7% | | Non-GAAP Operating Profit | 225.9 | 299.2 | -24.5% | | Profit for the Period | 105.5 | 187.3 | -43.7% | | Profit for the Period Attributable to Owners of the Parent | 105.4 | 185.4 | -43.1% | | Basic Earnings Per Share (HKD) | 0.06 | 0.11 | -45.5% | | Diluted Earnings Per Share (HKD) | 0.06 | 0.11 | -45.5% | [Interim Condensed Consolidated Financial Statements](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Statements) This section presents the group's interim condensed consolidated statements of profit or loss, comprehensive income, and financial position [Interim Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, the group's revenue increased by 2.7% to **HKD 4,300.9 million**, but a 9.1% rise in cost of sales led to a 3.0% decrease in gross profit, with operating and period profits declining significantly | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Revenue | 4,300,936 | 4,187,639 | | Cost of Sales | (2,166,090) | (1,986,091) | | Gross Profit | 2,134,846 | 2,201,548 | | Other Income and Gains | 77,810 | 10,718 | | Selling and Distribution Expenses | (1,253,013) | (1,205,245) | | Administrative Expenses | (756,784) | (727,033) | | Operating Profit | 202,045 | 279,384 | | Finance Income | 8,046 | 18,586 | | Finance Costs | (56,701) | (87,683) | | Profit Before Tax | 153,619 | 217,880 | | Income Tax Expense | (48,082) | (30,594) | | Profit for the Period | 105,537 | 187,286 | | Profit for the Period Attributable to Owners of the Parent | 105,388 | 185,447 | | Basic Earnings Per Share (HKD) | 0.06 | 0.11 | | Diluted Earnings Per Share (HKD) | 0.06 | 0.11 | [Interim Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) Total comprehensive income for the period significantly increased to **HKD 319.5 million**, primarily driven by a positive shift in exchange differences, offsetting the decline in profit for the period | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Profit for the Period | 105,537 | 187,286 | | Other Comprehensive Income (net of tax) | 213,954 | (126,409) | | Total Comprehensive Income for the Period | 319,491 | 60,877 | | Attributable to Owners of the Parent | 319,328 | 59,636 | | Non-controlling Interests | 163 | 1,241 | - The exchange difference on translation of overseas operations shifted from a negative **HKD 150.2 million** in 2024 to a positive **HKD 249.0 million** in 2025, being the primary reason for the significant increase in total comprehensive income[7](index=7&type=chunk) [Interim Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the group's total non-current assets increased, total current assets slightly decreased, and total current liabilities reduced, leading to an increase in net assets and equity attributable to owners of the parent | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Property, Plant and Equipment | 836,176 | 819,179 | | Goodwill | 2,617,439 | 2,532,832 | | Total Non-current Assets | 6,008,639 | 5,768,492 | | **Current Assets** | | | | Inventories | 1,623,337 | 1,712,437 | | Cash and Cash Equivalents | 998,472 | 1,099,358 | | Total Current Assets | 4,467,805 | 4,635,090 | | **Current Liabilities** | | | | Trade and Bills Payables | 1,280,310 | 1,457,628 | | Total Current Liabilities | 3,131,827 | 3,205,861 | | Net Current Assets | 1,335,978 | 1,429,229 | | **Non-current Liabilities** | | | | Total Non-current Liabilities | 1,328,443 | 1,382,104 | | **Equity** | | | | Net Assets | 6,016,174 | 5,815,617 | | Equity Attributable to Owners of the Parent | 6,010,304 | 5,789,855 | | Total Equity | 6,016,174 | 5,815,617 | [Notes to the Interim Condensed Consolidated Financial Information](index=6&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information) This section provides detailed notes on the interim condensed consolidated financial information, covering company details, accounting policies, segment data, and specific financial line items [1. Company Information](index=6&type=section&id=1.%20Company%20Information) Goodbaby International Holdings Limited, incorporated in the Cayman Islands in 2000 and listed on HKEX in 2010, primarily engages in the design, R&D, manufacturing, marketing, and distribution of children's products - The company was incorporated in the Cayman Islands on July 14, 2000, and listed on the Main Board of the Stock Exchange of Hong Kong on November 24, 2010[10](index=10&type=chunk) - The group is principally engaged in the design, research and development, manufacturing, marketing, and distribution of children's products[11](index=11&type=chunk) [2.1 Basis of Preparation](index=6&type=section&id=2.1%20Basis%20of%20Preparation) The interim condensed consolidated financial information is prepared in HKD under IAS 34 and should be read in conjunction with the 2024 annual consolidated financial statements - The interim condensed consolidated financial information has been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and is presented in Hong Kong dollars[12](index=12&type=chunk) - The financial information should be read in conjunction with the group's annual consolidated financial statements for the year ended December 31, 2024[12](index=12&type=chunk) [2.2 Changes in Accounting Policies and Disclosures](index=6&type=section&id=2.2%20Changes%20in%20Accounting%20Policies%20and%20Disclosures) The group adopted revised IFRS accounting standards for the first time this period, with the amendment to IAS 21, "Lack of Exchangeability," having no impact on the interim condensed consolidated financial information - The group has adopted the revised International Financial Reporting Standards (IFRSs) accounting standards for the first time in the current period, including "Amendments to IAS 21 Lack of Exchangeability"[13](index=13&type=chunk)[14](index=14&type=chunk) - As the group's transaction and functional currencies are all exchangeable, the amendments had no impact on the interim condensed consolidated financial information[14](index=14&type=chunk) [3. Operating Segment Information](index=6&type=section&id=3.%20Operating%20Segment%20Information) The group is organized into three reportable operating segments: Wheeled Goods, Car Seats, and Other Categories, with regional segments adjusted to EMEA & India, Americas, and Asia Pacific, with management assessing performance based on revenue - The group has three reportable operating segments: Wheeled Goods, Car Seats, and Other Categories[15](index=15&type=chunk)[18](index=18&type=chunk) - The geographical segments have been updated to Europe, Middle East, India and Africa ("EMEA & India"), Americas, and Asia Pacific segments[16](index=16&type=chunk) Revenue by Product Category (thousand HKD) | Product Category | 2025 | 2024 | | :--- | :--- | :--- | | Wheeled Goods | 1,791,331 | 1,694,830 | | Car Seats | 1,985,259 | 1,884,065 | | Other Categories | 524,346 | 608,744 | | **Total** | **4,300,936** | **4,187,639** | Revenue by Region (thousand HKD) | Region | 2025 | 2024 | | :--- | :--- | :--- | | EMEA & India Market | 2,004,177 | 1,835,035 | | Americas Market | 1,394,679 | 1,393,940 | | Asia Pacific Market | 902,080 | 958,664 | | **Total** | **4,300,936** | **4,187,639** | - Sales revenue to two major third-party customers amounted to **HKD 550.9 million** and **HKD 423.4 million** respectively (2024: **HKD 517.7 million** and **HKD 412.8 million**), covering all product segments[21](index=21&type=chunk) [4. Revenue, Other Income and Gains](index=9&type=section&id=4.%20Revenue%2C%20Other%20Income%20and%20Gains) Total revenue for the period grew by 2.7% to **HKD 4,300.9 million**, primarily from sales of goods, while other income and gains significantly increased, driven by a substantial rise in net exchange gains Revenue Analysis (thousand HKD) | Revenue Source | 2025 | 2024 | | :--- | :--- | :--- | | Sales of Goods | 4,289,475 | 4,173,838 | | Provision of Testing Services | 11,461 | 13,801 | | **Total** | **4,300,936** | **4,187,639** | Other Income and Gains (thousand HKD) | Category | 2025 | 2024 | | :--- | :--- | :--- | | Government Grants | 8,579 | 3,536 | | Gain on Disposal of Scrapped Materials | 3,023 | 2,355 | | Net Exchange Gain | 62,825 | 679 | | Compensation Income | 1,015 | 507 | | Others | 2,302 | 1,942 | | **Total** | **77,810** | **10,718** | - Net exchange gain significantly increased from **HKD 679 thousand** in 2024 to **HKD 62,825 thousand** in 2025, being the main driver for the growth in other income and gains[24](index=24&type=chunk) [5. Finance Income](index=11&type=section&id=5.%20Finance%20Income) Finance income for the period, primarily interest income from bank deposits, significantly decreased by **56.7%** year-on-year | Category | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Interest Income from Bank Deposits | 8,046 | 18,586 | [6. Finance Costs](index=11&type=section&id=6.%20Finance%20Costs) Finance costs for the period decreased by **35.3%** year-on-year, primarily due to reduced interest expenses on bank loans, overdrafts, and other borrowings | Category | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Interest on Bank Loans, Overdrafts and Other Borrowings | 51,968 | 83,548 | | Interest on Lease Liabilities | 4,733 | 4,135 | | **Total** | **56,701** | **87,683** | [7. Profit Before Tax](index=12&type=section&id=7.%20Profit%20Before%20Tax) Profit before tax was achieved after deducting various expenses, with increases in cost of inventories sold, R&D costs, depreciation, and amortization, while employee benefit expenses slightly decreased Key Deductions/Credits (thousand HKD) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Cost of Inventories Sold | 2,158,450 | 1,977,143 | | Depreciation of Property, Plant and Equipment | 130,325 | 124,880 | | Amortization of Intangible Assets | 39,953 | 37,001 | | Research and Development Costs | 219,705 | 201,990 | | Employee Benefit Expenses | 950,462 | 968,403 | | Net Exchange Gain | (62,825) | (679) | | Bank Interest Income | (8,046) | (18,586) | - Research and development costs increased by **8.8%** year-on-year to **HKD 219.7 million**[29](index=29&type=chunk) - Employee benefit expenses (including directors' emoluments) decreased by **1.9%** year-on-year to **HKD 950.5 million**[29](index=29&type=chunk) [8. Income Tax](index=13&type=section&id=8.%20Income%20Tax) The group operates globally with varying income tax rates, with two Chinese subsidiaries, GCPC and EQTC, enjoying a **15%** preferential tax rate as "High-Tech Enterprises," leading to a **57.1%** year-on-year increase in income tax expense for the period - The group operates in various jurisdictions including Hong Kong, the United States, Japan, Germany, the Czech Republic, Canada, the United Arab Emirates, and Mainland China, with different income tax rates applicable[30](index=30&type=chunk)[31](index=31&type=chunk)[32](index=32&type=chunk) - Goodbaby Child Products Co., Ltd. (GCPC) and EQTC Testing and Certification Co., Ltd. (EQTC) were recognized as "High-Tech Enterprises" and enjoy a **15%** preferential tax rate from 2023 to 2025[32](index=32&type=chunk) Income Tax Expense (thousand HKD) | Category | 2025 | 2024 | | :--- | :--- | :--- | | Current Income Tax | 75,805 | 71,200 | | Deferred Income Tax | (27,723) | (40,606) | | **Income Tax Expense** | **48,082** | **30,594** | [9. Dividends](index=14&type=section&id=9.%20Dividends) The company paid a final dividend of **HKD 116.8 million** for 2024 in May 2025, but the Board resolved not to declare any interim dividend for the six months ended June 30, 2025 - On May 27, 2025, shareholders approved and paid a final dividend of **HKD 0.07** per share for 2024, totaling **HKD 116.8 million**[34](index=34&type=chunk) - The Board has resolved not to declare any interim dividend for the six months ended June 30, 2025 (2024: nil)[34](index=34&type=chunk) [10. Earnings Per Share](index=14&type=section&id=10.%20Earnings%20Per%20Share) Basic and diluted earnings per share for the period were **HKD 0.06**, a **45.5%** decrease from **HKD 0.11** in the prior year, primarily due to reduced profit attributable to ordinary equity holders of the parent Earnings Per Share Calculation (thousand HKD/share) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit for the period attributable to ordinary equity holders of the parent used in basic EPS calculation | 105,388 | 185,447 | | Weighted average number of ordinary shares in issue during the period used in basic EPS calculation | 1,668,235,666 | 1,668,031,166 | | Dilutive effect of share options on weighted average number of ordinary shares | 53,698,475 | – | | **Total diluted shares** | **1,721,934,141** | **1,668,031,166** | - Basic and diluted earnings per share both decreased from **HKD 0.11** in 2024 to **HKD 0.06** in 2025[35](index=35&type=chunk)[36](index=36&type=chunk) [11. Inventories](index=15&type=section&id=11.%20Inventories) As of June 30, 2025, the group's total inventories decreased to **HKD 1,623.3 million** from **HKD 1,712.4 million** at the end of 2024, mainly due to a reduction in finished goods Inventory Composition (thousand HKD) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Raw Materials | 262,463 | 221,952 | | Work-in-progress | 14,839 | 19,437 | | Finished Goods | 1,346,035 | 1,471,048 | | **Total** | **1,623,337** | **1,712,437** | [12. Trade and Bills Receivables](index=15&type=section&id=12.%20Trade%20and%20Bills%20Receivables) The group's total trade and bills receivables remained stable, with a maximum credit period of three months and a credit control department for monitoring, and most receivables are within three months - The group's trade terms with customers are primarily on credit, with a maximum credit period of three months, and a credit control department is in place to mitigate credit risk[37](index=37&type=chunk) Ageing Analysis of Trade and Bills Receivables (thousand HKD) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 3 months | 1,033,208 | 1,051,390 | | 3 to 6 months | 32,951 | 23,987 | | 6 months to 1 year | 17,145 | 6,225 | | Over 1 year | 2,122 | 2,850 | | **Total** | **1,085,426** | **1,084,452** | [13. Trade and Bills Payables](index=16&type=section&id=13.%20Trade%20and%20Bills%20Payables) As of June 30, 2025, total trade and bills payables decreased to **HKD 1,280.3 million** from **HKD 1,457.6 million** at the end of 2024, with most payables settled within three months, typically on 60 to 90-day terms Ageing Analysis of Trade and Bills Payables (thousand HKD) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 3 months | 986,648 | 1,156,016 | | 3 to 12 months | 285,245 | 291,761 | | 1 to 2 years | 894 | 3,658 | | 2 to 3 years | 2,876 | 1,568 | | Over 3 years | 4,647 | 4,625 | | **Total** | **1,280,310** | **1,457,628** | - Trade and bills payables are interest-free and generally settled on 60 to 90-day terms[39](index=39&type=chunk) [14. Interest-bearing Bank Loans and Other Borrowings](index=16&type=section&id=14.%20Interest-bearing%20Bank%20Loans%20and%20Other%20Borrowings) The group's total interest-bearing bank loans and other borrowings slightly increased to **HKD 1,460.6 million**, with a rise in current borrowings and a decrease in non-current, primarily USD-denominated at floating rates between **1.06%** and **5.99%** Interest-bearing Bank Loans and Other Borrowings (thousand HKD) | Maturity | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current | 523,402 | 475,886 | | Non-current | 937,194 | 979,171 | | **Total** | **1,460,596** | **1,455,057** | Carrying Amount of Borrowings by Currency (thousand HKD) | Currency | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | RMB | 219,154 | 85,101 | | USD | 1,047,632 | 1,036,057 | | EUR | 185,640 | 326,441 | | JPY | 8,170 | 7,458 | | **Total** | **1,460,596** | **1,455,057** | Carrying Amount of Borrowings by Interest Rate Type (thousand HKD) | Interest Rate Type | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Fixed Rate | 186,281 | 178,896 | | Floating Rate | 1,274,315 | 1,276,161 | | **Total** | **1,460,596** | **1,455,057** | - The effective interest rates for bank loans and other borrowings ranged from **1.06%** to **5.99%** (2024: **1.20%** to **7.56%**)[42](index=42&type=chunk) - Certain bank loans are secured by standby letters of credit and guarantees issued by the group's subsidiaries and guarantees provided by the company[43](index=43&type=chunk) [15. Derivative Financial Instruments](index=18&type=section&id=15.%20Derivative%20Financial%20Instruments) The group holds derivative financial instruments, including forward currency contracts and foreign currency swaps, with a significant increase in liabilities from forward currency contracts Derivative Financial Instruments (thousand HKD) | Category | June 30, 2025 Assets | June 30, 2025 Liabilities | December 31, 2024 Assets | December 31, 2024 Liabilities | | :--- | :--- | :--- | :--- | :--- | | Forward Currency Contracts | 22,222 | 80,595 | 20,430 | 10,711 | | Foreign Currency Swaps | 39 | 16 | – | 1,352 | | **Total** | **22,261** | **80,611** | **20,430** | **12,063** | [Overview](index=19&type=section&id=Overview) This section provides an overview of the macroeconomic environment, the group's revenue performance by brand, and an executive summary of key business segments [Impact of Macroeconomic Volatility and Heightened Uncertainty on Business Performance](index=19&type=section&id=Impact%20of%20Macroeconomic%20Volatility%20and%20Heightened%20Uncertainty%20on%20Business%20Performance) Global macroeconomic weakness, tariff policies, and geopolitical conflicts reduced consumer demand and market confidence, increasing cost pressures; despite challenges, the group's revenue grew **2.7%**, but profitability declined due to US tariffs, compliance costs, and marketing expenses - The global macroeconomic outlook remains weak, with US tariff policies and geopolitical conflicts leading to a general decline in consumer demand, market confidence, and business sentiment[46](index=46&type=chunk) - The group's revenue grew by **2.7%**, but profitability decreased, mainly due to US market tariff costs, compliance costs for new regulatory standards for car seat products, new product display costs, and increased marketing expenses[46](index=46&type=chunk) - The group was selected for "The Sustainability Yearbook (China Edition) 2025" and listed on "Forbes China ESG Benchmark for Industry Development 2025," receiving external recognition[47](index=47&type=chunk) [Revenue Summary of the Group](index=20&type=section&id=Revenue%20Summary%20of%20the%20Group) The group's revenue for the period increased by **2.7%** (or **2.8%** in constant currency) to **HKD 4,300.9 million**, with strategic brands contributing **91.2%**, led by strong CYBEX performance, while Evenflo and gb brands saw revenue declines Group Revenue Summary (million HKD) | Indicator | 2025 | 2024 | YoY Change (%) | YoY Change (Constant Currency) (%) | | :--- | :--- | :--- | :--- | :--- | | Group Revenue | 4,300.9 | 4,187.6 | 2.7% | 2.8% | | **By Brand** | | | | | | Strategic Brands | 3,922.5 | 3,792.3 | 3.4% | 3.4% | | CYBEX | 2,452.4 | 2,158.2 | 13.6% | 12.6% | | Evenflo | 1,075.3 | 1,133.8 | -5.2% | -2.5% | | gb | 394.8 | 500.3 | -21.1% | -23.0% | | Blue Chip and Other Businesses | 378.4 | 395.3 | -4.3% | -2.4% | - Reported gross profit decreased by **3.0%** to **HKD 2,134.8 million**, and reported operating profit decreased by **27.7%** to **HKD 202.0 million**[48](index=48&type=chunk) - The group possesses its own diversified brands, a globally balanced omni-channel distribution platform, and a vertically integrated platform for in-house manufacturing and operational services[48](index=48&type=chunk) [Executive Summary](index=20&type=section&id=Executive%20Summary) CYBEX brand revenue grew **13.6%**, outperforming competitors, while Evenflo revenue declined **5.2%** with profitability challenges, and gb revenue fell **21.1%** due to brand transformation, though gross margin improved, and Blue Chip business revenue decreased **4.3%** due to delayed shipments - CYBEX brand revenue grew strongly by **13.6%** (or **12.6%** in constant currency) to **HKD 2,452.4 million**, with continued improvement in profitability, surpassing revenue growth[52](index=52&type=chunk) - Evenflo brand revenue decreased by **5.2%** (or **2.5%** in constant currency) to **HKD 1,075.9 million**, facing profitability challenges mainly due to US tariffs, new regulatory compliance costs, and increased marketing expenses[55](index=55&type=chunk) - gb brand revenue decreased by **21.1%** (or **23.0%** in constant currency) to **HKD 394.8 million**, primarily due to brand transformation focusing on proprietary retail channels, optimizing the channel mix, and achieving a significant improvement in gross margin[55](index=55&type=chunk) - Blue Chip and Other Businesses revenue decreased by **4.3%** (or **2.4%** in constant currency) to **HKD 378.4 million**, mainly due to delayed shipments by major customers after tariff announcements[54](index=54&type=chunk) [Outlook](index=22&type=section&id=Outlook) The group anticipates future challenges from global economic slowdown, geopolitical conflicts, logistics disruptions, and climate change, yet remains confident in its vertically integrated, brand-driven strategy, focusing on strategic investments, brand development, and global supply chain optimization - For the remainder of 2025, global economic slowdown, geopolitical conflicts, logistics disruptions, and climate change are expected to bring business interruptions and cost pressures[56](index=56&type=chunk) - The group will continue to implement its vertically integrated, brand-driven development strategy, maintaining and strengthening global competitiveness through ongoing strategic investments[57](index=57&type=chunk) - CYBEX will continue to leverage brand momentum and omni-channel infrastructure for global development; Evenflo will focus on restoring sales growth and profitability; gb will continue its brand transformation in the China market; Blue Chip business is expected to face downward pressure but maintain stable customer relationships[56](index=56&type=chunk) - Global strategies include continuously expanding and deepening brand building, omni-channel distribution networks and infrastructure, and optimizing and integrating global supply chain strategies[57](index=57&type=chunk) [Financial Review](index=23&type=section&id=Financial%20Review) This section provides a detailed review of the group's financial performance, including revenue, costs, profits, working capital, liquidity, and other financial metrics [Revenue](index=23&type=section&id=Revenue) Total revenue for the period increased by **2.7%** to **HKD 4,300.9 million**, or **2.8%** in constant currency, with exchange rate fluctuations impacting reported revenue | Indicator | 2025 (million HKD) | 2024 (million HKD) | YoY Change | YoY Change (Constant Currency) | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | 4,300.9 | 4,187.6 | 2.7% | 2.8% | - Exchange rate fluctuations of RMB and EUR against HKD led to differences between revenue growth in original currencies and in HKD[58](index=58&type=chunk) [Cost of Sales, Gross Profit and Gross Margin](index=23&type=section&id=Cost%20of%20Sales%2C%20Gross%20Profit%20and%20Gross%20Margin) Cost of sales increased by **9.1%**, leading to a **3.0%** decrease in gross profit to **HKD 2,134.8 million** and a **3.0 percentage point** drop in gross margin to **49.6%**, primarily due to US tariffs, car seat compliance costs, and promotional discounts | Indicator | 2025 (million HKD) | 2024 (million HKD) | YoY Change | | :--- | :--- | :--- | :--- | | Cost of Sales | 2,166.1 | 1,986.1 | 9.1% | | Gross Profit | 2,134.8 | 2,201.5 | -3.0% | | Gross Margin | 49.6% | 52.6% | -3.0 percentage points | - The decrease in gross profit was mainly due to lower gross profit from US market operations, attributed to additional tariff costs, increased car seat product costs for new regulatory compliance, and higher promotional discount expenses for new products in retail stores[60](index=60&type=chunk) [Other Income and Gains](index=24&type=section&id=Other%20Income%20and%20Gains) Other income and gains for the period significantly increased by approximately **HKD 67.1 million** to **HKD 77.8 million**, primarily driven by higher foreign exchange gains | Indicator | 2025 (million HKD) | 2024 (million HKD) | YoY Change | | :--- | :--- | :--- | :--- | | Other Income and Gains | 77.8 | 10.7 | 626.2% | - Primarily due to increased foreign exchange gains[61](index=61&type=chunk) [Selling and Distribution Expenses](index=24&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and distribution expenses increased by approximately **HKD 47.8 million** to **HKD 1,253.0 million**, primarily due to higher logistics and personnel costs driven by increased revenue | Indicator | 2025 (million HKD) | 2024 (million HKD) | YoY Change | | :--- | :--- | :--- | :--- | | Selling and Distribution Expenses | 1,253.0 | 1,205.2 | 4.0% | - Primarily includes marketing expenses, personnel costs, rent and commissions, and logistics costs, with the increase mainly due to higher logistics and personnel costs driven by increased revenue[62](index=62&type=chunk) [Administrative Expenses](index=24&type=section&id=Administrative%20Expenses) Administrative expenses increased by approximately **HKD 29.8 million** to **HKD 756.8 million**, primarily due to higher research and development costs and professional service fees | Indicator | 2025 (million HKD) | 2024 (million HKD) | YoY Change | | :--- | :--- | :--- | :--- | | Administrative Expenses | 756.8 | 727.0 | 4.1% | - Primarily includes personnel costs, research and development costs, professional service fees, depreciation, and amortization costs, with the increase mainly due to higher research and development costs and professional service fees[63](index=63&type=chunk) [Other Expenses](index=24&type=section&id=Other%20Expenses) Other expenses slightly increased by approximately **HKD 0.2 million** to **HKD 0.8 million**, mainly due to higher charitable donations and losses on disposal of property, plant, and equipment, partially offset by reduced fair value losses on derivative financial instruments | Indicator | 2025 (million HKD) | 2024 (million HKD) | YoY Change | | :--- | :--- | :--- | :--- | | Other Expenses | 0.8 | 0.6 | 33.3% | [Operating Profit](index=24&type=section&id=Operating%20Profit) Operating profit for the period significantly decreased by **27.7%**, or **HKD 77.4 million**, to **HKD 202.0 million**, primarily due to the combined impact of increased cost of sales, selling and distribution expenses, administrative expenses, and a decline in gross profit | Indicator | 2025 (million HKD) | 2024 (million HKD) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Profit | 202.0 | 279.4 | -27.7% | [Finance Income](index=24&type=section&id=Finance%20Income) Finance income for the period, primarily interest income from bank deposits, significantly decreased by **56.7%** to **HKD 8.0 million** year-on-year | Indicator | 2025 (million HKD) | 2024 (million HKD) | YoY Change | | :--- | :--- | :--- | :--- | | Finance Income | 8.0 | 18.6 | -56.7% | [Finance Costs](index=25&type=section&id=Finance%20Costs) Finance costs for the period decreased by **35.3%** to **HKD 56.7 million** year-on-year, consistent with the reduction in interest-bearing bank loans and other borrowings | Indicator | 2025 (million HKD) | 2024 (million HKD) | YoY Change | | :--- | :--- | :--- | :--- | | Finance Costs | 56.7 | 87.7 | -35.3% | [Profit Before Tax](index=25&type=section&id=Profit%20Before%20Tax) Profit before tax for the period decreased by **29.5%** to **HKD 153.6 million** year-on-year, primarily impacted by lower operating profit and reduced finance income | Indicator | 2025 (million HKD) | 2024 (million HKD) | YoY Change | | :--- | :--- | :--- | :--- | | Profit Before Tax | 153.6 | 217.9 | -29.5% | [Income Tax Expense](index=25&type=section&id=Income%20Tax%20Expense) Income tax expense for the period was **HKD 48.1 million**, a significant **57.1%** year-on-year increase, primarily due to varying effective tax rates across different legal entities' profit contributions | Indicator | 2025 (million HKD) | 2024 (million HKD) | YoY Change | | :--- | :--- | :--- | :--- | | Income Tax Expense | 48.1 | 30.6 | 57.1% | - The change in income tax expense is primarily due to different effective tax rates on profit contributions from various legal entities[69](index=69&type=chunk) [Profit for the Period](index=25&type=section&id=Profit%20for%20the%20Period) Profit for the period significantly decreased by **43.7%** to **HKD 105.5 million** year-on-year, with Non-GAAP profit also declining by **38.4%** to **HKD 124.6 million** | Indicator | 2025 (million HKD) | 2024 (million HKD) | YoY Change | | :--- | :--- | :--- | :--- | | Profit for the Period | 105.5 | 187.3 | -43.7% | | Non-GAAP Profit | 124.6 | 202.2 | -38.4% | [Non-GAAP Financial Measures](index=25&type=section&id=Non-GAAP%20Financial%20Measures) The group uses Non-GAAP financial measures, such as Non-GAAP operating profit, profit before tax, and profit for the period, to present clearer financial results by excluding non-cash items, M&A impacts, and one-off provisions, supplementing IFRS financial performance analysis - Non-GAAP financial measures provide supplementary analysis to investors by excluding non-cash items, impacts from merger and acquisition transactions, and one-off bad debt provisions/operating losses[71](index=71&type=chunk) Reconciliation of Non-GAAP Financial Measures to IFRS (million HKD) | Indicator | 2025 Reported | 2025 Non-GAAP | 2024 Reported | 2024 Non-GAAP | | :--- | :--- | :--- | :--- | :--- | | Operating Profit | 202.0 | 225.9 | 279.4 | 299.2 | | Profit Before Tax | 153.6 | 177.5 | 217.9 | 237.7 | | Profit for the Period | 105.5 | 124.6 | 187.3 | 202.2 | | Operating Margin | 4.7% | 5.3% | 6.7% | 7.1% | | Net Profit Margin | 2.5% | 2.9% | 4.5% | 4.8% | [Working Capital Management](index=27&type=section&id=Working%20Capital%20Management) Trade and bills receivables remained robust, trade and bills payables decreased, and inventories also reduced due to lower in-transit stock and scaled-back safety reserves, maintaining stable inventory turnover days Working Capital Items (million HKD) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade and Bills Receivables | 1,085.9 | 1,085.0 | | Trade and Bills Payables | 1,282.1 | 1,459.5 | | Inventories | 1,623.3 | 1,712.4 | Turnover Days (days) | Item | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Trade and Bills Receivables Turnover Days | 45 | 52 | | Trade and Bills Payables Turnover Days | 114 | 119 | | Inventory Turnover Days | 139 | 138 | - The decrease in inventories was mainly due to lower in-transit inventory levels and the group's proactive reduction of safety stock reserves built up to address potential supply chain shortages from the Red Sea crisis and Chinese New Year[74](index=74&type=chunk) [Liquidity and Financial Resources](index=28&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the group's monetary assets totaled **HKD 1,067.1 million**, interest-bearing bank loans and other borrowings were **HKD 1,460.6 million**, resulting in net debt of **HKD 393.5 million** Liquidity and Financial Resources (million HKD) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Monetary Assets | 1,067.1 | 1,126.0 | | Interest-bearing Bank Loans and Other Borrowings | 1,460.6 | 1,455.1 | | Current Bank Loans and Other Borrowings | 523.4 | 475.9 | | Non-current Bank Loans and Other Borrowings | 937.2 | 979.2 | | Net Debt | 393.5 | 329.1 | [Contingent Liabilities](index=28&type=section&id=Contingent%20Liabilities) The group may be involved in legal proceedings and litigation in its ordinary course of business, but as of June 30, 2025, there were no material contingent liabilities - The group may be involved in legal proceedings and litigation in the ordinary course of its business, but it believes that losses from such matters will not have a material adverse effect on its business, financial condition, operating results, or cash flows[77](index=77&type=chunk) - As of June 30, 2025, the group had no material contingent liabilities[78](index=78&type=chunk) [Exchange Rate Fluctuations](index=28&type=section&id=Exchange%20Rate%20Fluctuations) As a multinational enterprise, the group faces foreign currency exposure from USD, RMB, and EUR-denominated revenues and expenses, utilizing forward foreign exchange contracts to mitigate potential impacts - The group's revenue is primarily denominated in USD, RMB, and EUR, while its purchases and operating expenses are mainly denominated in RMB, USD, and EUR[79](index=79&type=chunk) - The group uses forward foreign exchange contracts to mitigate the potential impact of foreign currency exposure[79](index=79&type=chunk) [Pledged Assets](index=29&type=section&id=Pledged%20Assets) As of June 30, 2025, approximately **HKD 24.7 million** in bank deposits were pledged as interest reserves for certain bank borrowings - Approximately **HKD 24.7 million** (December 31, 2024: **HKD 24.5 million**) of bank deposits were pledged as interest reserves for certain bank borrowings[80](index=80&type=chunk) [Gearing Ratio](index=29&type=section&id=Gearing%20Ratio) As of June 30, 2025, the group's gearing ratio was **30.6%** (**32.6%** including lease liabilities), a decrease from the end of 2024 | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Gearing Ratio | 30.6% | 32.8% | | Gearing Ratio (including lease liabilities) | 32.6% | 34.8% | [Other Information](index=29&type=section&id=Other%20Information) This section covers additional information including employee details, remuneration policies, significant transactions, post-reporting events, share activities, dividends, and corporate governance [Employees and Remuneration Policy](index=29&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the group had **6,096** full-time employees with employee costs of **HKD 935.8 million**, and the company adopted the 2025 Share Option Scheme to incentivize employees, replacing prior plans | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of Full-time Employees | 6,096 | 6,231 | | Employee Costs (excluding Directors' Emoluments) | HKD 935.8 million | HKD 953.8 million | - The company has adopted the 2025 Share Option Scheme to incentivize or reward eligible participants, replacing the 2010 and 2020 Share Option Schemes[82](index=82&type=chunk)[83](index=83&type=chunk) - As of June 30, 2025, the total number of outstanding share options under the 2010 and 2020 Share Option Schemes was **175,668,000**[84](index=84&type=chunk) [Material Acquisitions and Disposals and Material Investments](index=30&type=section&id=Material%20Acquisitions%20and%20Disposals%20and%20Material%20Investments) During the period, the group did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures, nor did it make any material investments - During the period, the group did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures, and there were no material investments[85](index=85&type=chunk) [Events After Reporting Period](index=30&type=section&id=Events%20After%20Reporting%20Period) Except as disclosed in this announcement, no other significant events requiring additional disclosure or adjustment occurred after the reporting period and up to the announcement date - Save as disclosed in this announcement, no other significant events requiring additional disclosure or adjustment occurred after the period end and up to the date of this announcement[86](index=86&type=chunk) [Purchase, Sale or Redemption of Shares](index=30&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Shares) During the period, neither the company nor 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 period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[87](index=87&type=chunk) - As of June 30, 2025, the company did not hold any treasury shares[87](index=87&type=chunk) [Dividends](index=30&type=section&id=Dividends) The Board does not recommend the payment of any dividend for the current period - The Board does not recommend the payment of any dividend for the current period (for the six months ended June 30, 2024: nil)[88](index=88&type=chunk) [Corporate Governance](index=30&type=section&id=Corporate%20Governance) The Board is committed to high corporate governance standards and has complied with all code provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules throughout the period - The Board is committed to achieving high standards of corporate governance, believing it is crucial for safeguarding shareholders' interests, formulating business strategies, and enhancing corporate value[89](index=89&type=chunk) - The company has complied with all code provisions of the Corporate Governance Code as set out in Appendix C1 to the Listing Rules throughout the period[89](index=89&type=chunk) [Standard Code for Securities Transactions by Directors](index=31&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The company adopted the Standard Code for Securities Transactions by Directors of Listed Issuers in Appendix C3 of the Listing Rules, and all directors confirmed compliance during the period - The company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules as the standard for directors' dealings in the company's securities[90](index=90&type=chunk) - Following specific enquiries, all directors confirmed that they have complied with the required standards of dealing as set out in the Standard Code throughout the period[90](index=90&type=chunk) [Audit Committee](index=31&type=section&id=Audit%20Committee) The company's Audit Committee, comprising Mr. Wong Shun Tak, Ms. Zhang Yun, and Mr. Ho Kwok Yin, reviewed the group's unaudited interim condensed consolidated financial information for the period, which was also reviewed by Ernst & Young - The Audit Committee comprises Mr. Wong Shun Tak (Chairman), Ms. Zhang Yun, and Mr. Ho Kwok Yin[91](index=91&type=chunk) - The group's unaudited interim condensed consolidated financial information for the period has been reviewed by the Audit Committee and by the company's auditor, Ernst & Young, in accordance with Hong Kong Standard on Review Engagements 2410[91](index=91&type=chunk) [Publication of Interim Report](index=31&type=section&id=Publication%20of%20Interim%20Report) This interim results announcement is published on the HKEX and company websites, and the interim report will be dispatched to shareholders and uploaded to these websites in due course - This interim results announcement is published on the website of the Stock Exchange (http://www.hkexnews.hk) and the company's website (http://www.gbinternational.com.hk)[92](index=92&type=chunk) - The company's interim report for the period will be dispatched to the company's shareholders and uploaded to the aforementioned websites in due course[92](index=92&type=chunk) [Appointment of Lead Independent Non-executive Director](index=31&type=section&id=Appointment%20of%20Lead%20Independent%20Non-executive%20Director) The Board appointed Ms. Zhang Yun, an independent non-executive director, as Lead Independent Non-executive Director, effective August 25, 2025, to enhance Board effectiveness and promote corporate governance practices - Ms. Zhang Yun, an independent non-executive director, has been appointed as the Lead Independent Non-executive Director, effective August 25, 2025[93](index=93&type=chunk) - This appointment aims to enhance the effectiveness of the Board and further promote robust corporate governance practices in response to the requirements of the revised Corporate Governance Code and Listing Rules[93](index=93&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。 VCREDIT Holdings Limited 維信金科控股有限公司 （以存續方式於開曼群島註冊成立的有限公司） （股份代號：2003） 截 至2025年6月30日止六個月的 中期業績公告 維 信 金 科 控 股 有 限 公 司（「本公司」或「我 們」）董 事（「董 事」）會（「董事會」）宣 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（「期 內」）的 未 經 審 核綜合中期業績。 財務摘要 | | 截 至6月30日止六個月 | | | | --- | --- | --- | --- | | | 2025年 | 2024年 | 變 動 | | | 人民幣百萬元 | 人民幣百萬元 | | | 總收入 | 2,499.9 | 1,738.4 | 43.8% | | 利息及類似收入 | 1,089.5 | 1,068.3 | 2.0% | | 減：利息支 ...

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依 賴該等內容而引致的任何損失承擔任何責任。 Mirxes Holding Company Limited （ 於 開 曼 群 島 註 冊 成 立 的 有 限 責 任 公 司 ） （股份代號：2629） 截至2025年6月30日止六個月的 中期業績公告 Mirxes Holding Company Limited（「本公司」，連同其附屬公司，統稱「本集團」或 「我們」）董事（「董事」）會（「董事會」）宣佈本集團截至2025年6月30日止六個月 （「報告期」）的未經審核綜合業績，連同2024年同期的比較數字。 財務概要 – 1 – ‧ 截至2025年6月30日止六個月的收益為10.5百萬美元，與2024年同期的9.6 百萬美元相比增加9.4%。 ‧ 截至2025年6月30日止六個月，早期檢測及精準多組學分部的收益為 10.5百萬美元，較2024年同期的7.0百萬美元增長50%。 ‧ 截至2025年6月30日止六個月的毛利為7.1百萬美元，而2024年同期 ...

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依 賴該等內容而引致的任何損失承擔任何責任。 Tsaker New Energy Tech Co., Limited 彩客新能源科技有限公司 （於開曼群島註冊成立的有限公司） （股份代號：1986） 截至二零二五年六月三十日止六個月之中期業績公告 業績 1 財務摘要 本集團截至二零二五年六月三十日止六個月的收益約為人民幣933.5百萬元，較 二零二四年同期減少約人民幣71.5百萬元或約7.1%。 本集團截至二零二五年六月三十日止六個月的毛利約為人民幣116.8百萬元，較 二零二四年同期減少約人民幣28.6百萬元或約19.7%。 本集團截至二零二五年六月三十日止六個月的淨利約為人民幣30.0百萬元，較 二零二四年同期增加約人民幣6.5百萬元或約27.7%。 截至二零二五年六月三十日止六個月，母公司普通股權益擁有人應佔每股基 本及攤薄盈利約為人民幣0.01元，較二零二四年同期減少約人民幣0.01元或約 50%。 董事會決議就截至二零二五年六月三十日止六 ...

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，並表明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。 BANK OF GANSU CO., LTD.* 甘肅銀行股份有限公司* （於中華人民共和國註冊成立的股份有限公司） （股份代號：2139） 承董事會命 甘肅銀行股份有限公司* 董事長 劉青 甘肅蘭州 2025年8月25日 於本公告日期，董事會成員包括執行董事劉青先生及王錫真先生；非執行董事 張斌先生、張軍平先生、葉榮先生及楊春梅女士；以及獨立非執行董事劉光華先 生、王雷先生及侯百燊先生。 * 甘肅銀行股份有限公司並非香港法例第155章銀行業條例所指認可機構，不受限於香港金 融管理局的監督，亦不獲授權在香港經營銀行╱接受存款業務。 目 截至2025年6月30日止六個月之中期業績公告 甘肅銀行股份有限公司（「* 本行」）董事會（「董事會」）欣然宣佈本行及其附屬公司 截至2025年6月30日止六個月之未經審核中期業績。本公告列載本行2025年中期 報告全文，並符合《香港聯合交易所有限公司證券上市規則》中有關中期業 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性或完整性亦不 發表任何聲明，並明確表示，概不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之任何損 失承擔任何責任。 Lens Technology Co., Ltd. 藍 思 科 技 股 份 有 限 公 司 （ 於中華人民共和國註冊成立的股份有限公司） （股份代號：6613） 截至2025年6月30日止六個月的中期業績公告 財務摘要 – 1 – . 於報告期間，本集團實現總收入約為人民幣32,960.16百萬元，較2024年同期的人民幣 28,866.65百萬元增加約14.18%； . 於 報 告 期 間 ， 本 集 團 的 毛 利 約 為 人 民 幣 4,304.61 百 萬 元 ， 較 2024 年 同 期 的 人 民 幣 3,653.66百萬元增加約17.82%； . 於 報 告 期 間 ， 本 集 團 歸 屬 於 上 市 公 司 股 東 的 淨 利 潤 約 為 人 民 幣 1,142.69 百 萬 元 ， 較 2024年同期的人民幣861.26百萬元增加約32.68%；及 . 董事會建議公司2025年中期利潤 ...

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 佈 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 佈 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。 WEST CHINA CEMENT LIMITED 中國西部水泥有限公司 （於澤西註冊成立的有限公司，註冊編號94796） （股份代號：2233） 二 零 二 五 年 中 期 業 績 公 佈 財 務 摘 要 | | | | | | | | | | | | | | | | | | 截 | 至 | | | | | 截 至 | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | - ...

[Performance Highlights](index=1&type=section&id=%E6%A5%AD%E7%B8%BE%E6%91%98%E8%A6%81) This section summarizes key financial performance indicators for the six months ended June 30, 2025 As of June 30, 2025, Six-Month Performance Highlights | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Revenue | 138,353 | 98,461 | 40.52% | | Gross Profit | 19,211 | 15,796 | 21.62% | | Gross Profit Margin | 13.9% | 16.0% | –2.1 percentage points | | Loss attributable to equity holders | (5,986) | (3,676) | 62.84% | | Loss per share (RMB cents) | (0.30) | (0.18) | 66.67% | [Consolidated Statement of Profit or Loss](index=2&type=section&id=%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) This statement presents the detailed breakdown of revenues, costs, and expenses leading to the loss for the period For the Six Months Ended June 30, 2025, Consolidated Statement of Profit or Loss | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 138,353 | 98,461 | | Cost of Sales | (119,142) | (82,665) | | Gross Profit | 19,211 | 15,796 | | Other Income | 2,065 | 1,046 | | Selling Expenses | (4,508) | (1,697) | | Administrative Expenses | (18,653) | (15,193) | | Reversal/(Provision) for impairment of trade and other receivables | 83 | (1,561) | | Operating Loss | (1,802) | (1,609) | | Finance Costs | (4,709) | (3,366) | | Loss Before Tax | (6,511) | (4,975) | | Income Tax | 525 | 1,299 | | Loss for the period attributable to equity holders of the Company | (5,986) | (3,676) | | Basic and diluted loss per share (RMB cents) | (0.30) | (0.18) | [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) This statement shows the loss for the period and other comprehensive income items, leading to total comprehensive income For the Six Months Ended June 30, 2025, Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Loss for the period | (5,986) | (3,676) | | Exchange differences on translation to the Group's presentation currency | (200) | 68 | | Total comprehensive income for the period attributable to equity holders of the Company | (6,186) | (3,608) | [Consolidated Statement of Financial Position](index=4&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) This statement provides a snapshot of the company's assets, liabilities, and equity at specific reporting dates As of June 30, 2025, Consolidated Statement of Financial Position | Indicator | 2025 June 30 (RMB thousands) | 2024 December 31 (RMB thousands) | | :--- | :--- | :--- | | Non-current Assets | 196,590 | 201,351 | | Current Assets | 398,489 | 422,211 | | Current Liabilities | 318,219 | 337,942 | | Net Current Assets | 80,270 | 84,269 | | Non-current Liabilities | 35,448 | 38,022 | | Net Assets | 241,412 | 247,598 | | Total Equity | 241,412 | 247,598 | [Notes to the Unaudited Interim Financial Report](index=6&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A%E9%99%84%E8%A8%BB) This section provides detailed notes on company information, financial report preparation, accounting policy changes, revenue, segment reporting, income, loss before tax, income tax, loss per share, receivables, payables, and dividends [1 Company Information](index=6&type=section&id=1%20Company%20Information) China Tianrui Automotive Interior Parts Co., Ltd., incorporated in the Cayman Islands in 2017 and listed in Hong Kong in 2019, specializes in manufacturing and selling automotive decorative parts - The company was incorporated as an exempted company in the Cayman Islands on **April 27, 2017**[8](index=8&type=chunk) - The company's shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited on **January 15, 2019**[8](index=8&type=chunk) - The Group is principally engaged in the manufacture and sale of automotive interior and exterior decorative parts[8](index=8&type=chunk) [2 Basis of Preparation](index=6&type=section&id=2%20Basis%20of%20Preparation) This interim financial report is prepared under Listing Rules and IAS 34, using 2024 annual accounting policies and management's judgments and estimates - This interim financial report has been prepared in accordance with the applicable disclosure provisions of the Listing Rules of the Stock Exchange and International Accounting Standard 34[9](index=9&type=chunk) - The interim financial report has been prepared on the same accounting policies adopted in the 2024 annual financial statements, except for the changes in accounting policies expected to be reflected in the 2025 annual financial statements[9](index=9&type=chunk) - The preparation of an interim financial report in conformity with IAS 34 requires management to make judgments, estimates, and assumptions[9](index=9&type=chunk) [3 Changes in Accounting Policies](index=7&type=section&id=3%20Changes%20in%20Accounting%20Policies) Modifications to IFRS 21 were applied, but had no significant impact due to the Group's lack of foreign currency transactions or non-convertibility issues, and no other new standards were adopted - The Group has applied the amendments to **IFRS 21 — The Effects of Changes in Foreign Exchange Rates — Non-exchangeability** issued by the International Accounting Standards Board to the current accounting period of this interim financial report[11](index=11&type=chunk) - These amendments have **no significant impact** on this interim report as the Group has not entered into any foreign currency transactions where the foreign currency cannot be exchanged into another currency[11](index=11&type=chunk) - The Group has not applied any new standards or interpretations that are not yet effective for the current accounting period[12](index=12&type=chunk) [4 Revenue and Segment Reporting](index=7&type=section&id=4%20Revenue%20and%20Segment%20Reporting) The Group manufactures and sells automotive decorative parts, managing two segments: heavy-duty truck and passenger vehicle, with revenue primarily from China, categorized by product and recognition timing [4 (a) Revenue](index=7&type=section&id=4%20(a)%20Revenue) Total revenue for the six months ended June 30, 2025, was **RMB 138,353 thousand**, primarily from heavy-duty truck and passenger vehicle decorative parts sales Revenue from contracts with customers by major products | Major Products | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Sales of heavy-duty truck interior and exterior decorative parts | 98,731 | 90,942 | | Sales of passenger vehicle interior and exterior decorative parts and related molds | 39,622 | 7,519 | | **Total** | **138,353** | **98,461** | - Customer B contributed **RMB 60,931 thousand** in revenue in the first half of 2025, making it the Group's largest customer[15](index=15&type=chunk) [4 (b) Segment Reporting](index=8&type=section&id=4%20(b)%20Segment%20Reporting) The Group's two segments, heavy-duty truck and passenger vehicle decorative parts, are evaluated by gross profit, which was **RMB 15,243 thousand** and **RMB 3,969 thousand** respectively as of June 30, 2025 - The Group manages its business by product categories, divided into two reportable segments: **heavy-duty truck interior and exterior decorative parts** and **passenger vehicle interior and exterior decorative parts**[16](index=16&type=chunk)[18](index=18&type=chunk) - The performance of the reportable segments is measured by gross profit, with no inter-segment sales occurring[17](index=17&type=chunk) Gross profit from reportable segments | Segment | 2025 Gross Profit (RMB thousands) | 2024 Gross Profit (RMB thousands) | | :--- | :--- | :--- | | Heavy-duty truck interior and exterior decorative parts | 15,243 | 15,714 | | Passenger vehicle interior and exterior decorative parts and related molds | 3,969 | 82 | | **Total reportable segment gross profit** | **19,211** | **15,796** | [5 Other Income](index=10&type=section&id=5%20Other%20Income) Other income for the six months ended June 30, 2025, grew **110.8%** to **RMB 2,065 thousand**, driven mainly by increased government grants Details of Other Income | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Government grants (including amortization of deferred income) | 1,639 | 535 | | Net gain on disposal of scrap materials | – | 403 | | Net foreign exchange gain | 143 | – | | Interest income | 283 | 108 | | **Total** | **2,065** | **1,046** | - Government grants increased from **RMB 535 thousand** in 2024 to **RMB 1,639 thousand** in 2025, which is the primary reason for the growth in other income[22](index=22&type=chunk) [6 Loss Before Tax](index=11&type=section&id=6%20Loss%20Before%20Tax) Loss before tax for the six months ended June 30, 2025, was **RMB 6,511 thousand**, mainly due to higher finance, R&D, and inventory costs [6 (a) Finance Costs](index=11&type=section&id=6%20(a)%20Finance%20Costs) Finance costs for the six months ended June 30, 2025, rose **39.9%** to **RMB 4,709 thousand**, driven by increased interest on bank and other borrowings Details of Finance Costs | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest expense on bank and other borrowings | 4,644 | 3,289 | | Interest expense on lease liabilities | 65 | 77 | | **Total** | **4,709** | **3,366** | [6 (b) Other Items](index=11&type=section&id=6%20(b)%20Other%20Items) Depreciation and amortization slightly decreased, but R&D and inventory costs significantly increased for the six months ended June 30, 2025, impacting loss before tax Details of Other Items | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Depreciation and amortization | 15,097 | 16,232 | | Research and development costs | 7,311 | 3,328 | | Cost of inventories | 119,142 | 82,665 | - Research and development costs significantly increased from **RMB 3,328 thousand** in 2024 to **RMB 7,311 thousand** in 2025[24](index=24&type=chunk) [7 Income Tax](index=11&type=section&id=7%20Income%20Tax) Income tax credit for the six months ended June 30, 2025, decreased to **RMB 525 thousand** due to reconciliation adjustments and temporary differences, with Chinese subsidiaries benefiting from tax incentives Details of Income Tax | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current tax (provision for the period) | (146) | – | | Current tax (differences from annual reconciliation) | 707 | – | | Deferred tax (origination and reversal of temporary differences) | (36) | 1,299 | | **Total** | **525** | **1,299** | - Xi'an Tianrui Automotive Interior Parts Co., Ltd. enjoys a **15% preferential income tax rate** as a high-tech enterprise from 2022 to 2025[26](index=26&type=chunk) - Baoji Ruitong Automotive Interior Co., Ltd. benefits from a **15% preferential China enterprise income tax rate** under the Western Development Plan from 2021 to 2030[26](index=26&type=chunk) [8 Loss Per Share](index=13&type=section&id=8%20Loss%20Per%20Share) Basic and diluted loss per share for the six months ended June 30, 2025, expanded to **RMB 0.30 cents**, driven by increased loss attributable to equity holders [8 (a) Basic Loss Per Share](index=13&type=section&id=8%20(a)%20Basic%20Loss%20Per%20Share) Basic loss per share for the six months ended June 30, 2025, was **RMB 0.30 cents**, based on a **RMB 5,986 thousand** loss and **2,000,000,000** shares Calculation of Basic Loss Per Share | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Loss attributable to equity holders (RMB thousands) | 5,986 | 3,676 | | Weighted average number of ordinary shares in issue (shares) | 2,000,000,000 | 2,000,000,000 | | Basic loss per share (RMB cents) | (0.30) | (0.18) | [8 (b) Diluted Loss Per Share](index=13&type=section&id=8%20(b)%20Diluted%20Loss%20Per%20Share) No potential dilutive shares existed for the six months ended June 30, 2025 and 2024, resulting in diluted loss per share equaling basic loss per share - There were no potential dilutive shares for the six months ended **June 30, 2025 and 2024**[28](index=28&type=chunk) [9 Trade and Bills Receivables](index=13&type=section&id=9%20Trade%20and%20Bills%20Receivables) Total trade and bills receivables increased to **RMB 222,681 thousand** as of June 30, 2025, with the largest portion due within three months Trade and Bills Receivables | Item | 2025 June 30 (RMB thousands) | 2024 December 31 (RMB thousands) | | :--- | :--- | :--- | | Trade receivables (net of loss allowance) | 202,134 | 190,842 | | Bills receivables | 20,547 | 14,048 | | **Total** | **222,681** | **204,890** | Ageing analysis of trade and bills receivables | Ageing | 2025 June 30 (RMB thousands) | 2024 December 31 (RMB thousands) | | :--- | :--- | :--- | | Within 3 months | 102,521 | 99,747 | | 3 to 6 months | 69,907 | 49,081 | | 6 to 12 months | 50,253 | 56,062 | | **Total** | **222,681** | **204,890** | [10 Trade and Bills Payables](index=14&type=section&id=10%20Trade%20and%20Bills%20Payables) Total trade and bills payables slightly increased to **RMB 132,117 thousand** as of June 30, 2025, driven by higher trade payables despite fewer bills payables Trade and Bills Payables | Item | 2025 June 30 (RMB thousands) | 2024 December 31 (RMB thousands) | | :--- | :--- | :--- | | Trade payables | 132,117 | 97,314 | | Bills payables | – | 33,823 | | **Total** | **132,117** | **131,137** | Ageing analysis of trade and bills payables | Ageing | 2025 June 30 (RMB thousands) | 2024 December 31 (RMB thousands) | | :--- | :--- | :--- | | Within 3 months | 72,747 | 72,966 | | 3 to 6 months | 31,575 | 29,663 | | 6 to 12 months | 20,423 | 15,322 | | Over 1 year | 7,372 | 13,186 | | **Total** | **132,117** | **131,137** | [11 Dividends](index=14&type=section&id=11%20Dividends) No interim dividends were paid or proposed for the six months ended June 30, 2025 - No dividends were paid or proposed for the six months ended **June 30, 2025**[32](index=32&type=chunk) [Management Discussion and Analysis](index=15&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) Management reviews H1 2025 automotive industry trends, company performance, financial changes, liquidity, capital structure, risk management, and future strategies, highlighting significant passenger vehicle growth [Industry Overview](index=15&type=section&id=%E8%A1%8C%E6%A5%AD%E6%A6%82%E8%A7%88) H1 2025 saw overall automotive industry growth, with slight heavy-duty truck and steady passenger vehicle market increases, but heightened competition and slower consumption created operational pressure - In the first half of 2025, the automotive industry showed an overall growth trend, with a slight increase in heavy-duty truck sales and steady growth in passenger vehicle sales[33](index=33&type=chunk) - Intensified industry competition and slowing domestic consumption growth led to significant operational pressure for enterprises[33](index=33&type=chunk) [Business Review](index=15&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) As Northwest China's largest heavy-duty truck interior parts manufacturer, the company achieved significant H1 2025 revenue growth, primarily from explosive passenger vehicle decorative parts sales - The Group has developed into the **largest heavy-duty truck interior decorative parts manufacturer in Northwest China**, holding a leading market position[34](index=34&type=chunk) Revenue by product category | Product Category | 2025 (RMB thousands) | 2025 (%) | 2024 (RMB thousands) | 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | Heavy-duty truck interior and exterior decorative parts | 98,731 | 71.4 | 90,942 | 92.4 | | Passenger vehicle interior and exterior decorative parts and related molds | 39,622 | 28.6 | 7,519 | 7.6 | | **Total** | **138,353** | **100.0** | **98,461** | **100.0** | [Revenue from Sales of Heavy-Duty Truck Interior and Exterior Decorative Parts](index=15&type=section&id=%E8%87%AA%E9%87%8D%E5%9E%8B%E5%8D%A1%E8%BB%8A%E8%A3%9D%E9%A3%BE%E9%9B%B6%E9%83%A8%E4%BB%B6%E9%8A%B7%E5%94%AE%E7%94%A2%E7%94%9F%E4%B9%8B%E6%94%B6%E5%85%A5) Heavy-duty truck decorative parts sales revenue grew **8.6%** to **RMB 98.7 million** for the six months ended June 30, 2025, driven by increased market sales volume Heavy-duty truck interior and exterior decorative parts sales revenue | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | Change | | :--- | :--- | :--- | :--- | | Revenue | 98.7 | 90.9 | 8.6% | - The revenue growth was primarily due to an increase in sales volume in the heavy-duty truck market[35](index=35&type=chunk) [Revenue from Sales of Passenger Vehicle Interior and Exterior Decorative Parts and Related Molds](index=16&type=section&id=%E8%87%AA%E4%B9%97%E7%94%A8%E8%BB%8A%E8%A3%9D%E9%A3%BE%E9%9B%B6%E9%83%A8%E4%BB%B6%E5%8F%8A%E7%9B%B8%E9%97%9C%E6%A8%A1%E5%85%B7%E9%8A%B7%E5%94%AE%E7%94%A2%E7%94%9F%E4%B9%8B%E6%94%B6%E5%85%A5) Passenger vehicle decorative parts and molds sales revenue surged **428.0%** to **RMB 39.6 million** for the six months ended June 30, 2025, driven by new product mass production Passenger vehicle interior and exterior decorative parts and related molds sales revenue | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | Change | | :--- | :--- | :--- | :--- | | Revenue | 39.6 | 7.5 | 428.0% | - The increase in revenue was primarily due to the mass production of newly developed products during the period[36](index=36&type=chunk) [Financial Review](index=16&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) H1 2025 revenue grew **40.5%**, but gross margin declined due to higher labor costs and lower product prices, while increased operating and finance costs expanded the period's loss [Revenue](index=16&type=section&id=%E6%94%B6%E5%85%A5) Revenue for the six months ended June 30, 2025, increased **40.5%** to **RMB 138.4 million**, primarily driven by mass production of passenger vehicle components Total Revenue | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | Change | | :--- | :--- | :--- | :--- | | Total Revenue | 138.4 | 98.5 | 40.5% | - The revenue growth was primarily due to the mass production of passenger vehicle business components[37](index=37&type=chunk) [Gross Profit and Gross Profit Margin](index=16&type=section&id=%E6%AF%9B%E5%88%A9%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87) Gross profit increased **21.5%** to **RMB 19.2 million**, but gross profit margin declined **2.1 percentage points** to **13.9%** due to higher labor costs and lower product prices Gross Profit and Gross Profit Margin | Indicator | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Gross Profit (RMB millions) | 19.2 | 15.8 | 21.5% | | Gross Profit Margin | 13.9% | 16.0% | -2.1 percentage points | - The decrease in gross profit margin was primarily due to increased labor costs and decreased prices for some products[38](index=38&type=chunk) [Other Income](index=16&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) Other income for the six months ended June 30, 2025, increased **110.0%** to **RMB 2.1 million** Other Income | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | Change | | :--- | :--- | :--- | :--- | | Other Income | 2.1 | 1.0 | 110.0% | [Selling and Distribution Expenses](index=16&type=section&id=%E9%8A%B7%E5%94%AE%E5%8F%8A%E5%88%86%E9%8A%B7%E9%96%8B%E6%94%AF) Selling and distribution expenses for the six months ended June 30, 2025, surged **164.7%** to **RMB 4.5 million**, driven by increased sales staff, wages, and marketing costs Selling and Distribution Expenses | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | Change | | :--- | :--- | :--- | :--- | | Selling and Distribution Expenses | 4.5 | 1.7 | 164.7% | - The increase was primarily due to an increase in the number of sales personnel, higher wages for sales personnel, and increased product marketing expenses[40](index=40&type=chunk) [Administrative Expenses](index=16&type=section&id=%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) Administrative expenses for the six months ended June 30, 2025, increased **23.0%** to **RMB 18.7 million**, primarily due to higher research and development costs Administrative Expenses | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | Change | | :--- | :--- | :--- | :--- | | Administrative Expenses | 18.7 | 15.2 | 23.0% | - The increase was primarily due to increased research and development expenses[41](index=41&type=chunk) [Finance Costs](index=17&type=section&id=%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) Finance costs for the six months ended June 30, 2025, increased **38.2%** to **RMB 4.7 million**, primarily due to higher bank and other borrowings Finance Costs | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | Change | | :--- | :--- | :--- | :--- | | Finance Costs | 4.7 | 3.4 | 38.2% | - The increase was primarily due to an increase in bank and other borrowings[42](index=42&type=chunk) [Income Tax Expense](index=17&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Income tax credit for the six months ended June 30, 2025, decreased to approximately **RMB 0.5 million**, mainly due to annual income tax reconciliation adjustments Income Tax Credit | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | | :--- | :--- | :--- | | Income Tax Credit | 0.5 | 1.3 | - The income tax credit was primarily due to adjustments for annual income tax reconciliation differences during the period[43](index=43&type=chunk) [Loss for the Period](index=17&type=section&id=%E6%9C%9F%E5%85%A7%E虧%E6%90%8D) Loss for the six months ended June 30, 2025, expanded to **RMB 6.0 million**, primarily due to costs and expenses increasing faster than revenue Loss for the Period | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | | :--- | :--- | :--- | | Loss for the Period | 6.0 | 3.7 | [Liquidity, Financial Resources and Capital Structure](index=17&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E3%80%81%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90%E5%8F%8A%E8%B3%87%E6%9C%AC%E6%9E%B6%E6%A7%8B) Business operations are funded by cash and bank borrowings; as of June 30, 2025, cash decreased, borrowings slightly increased, and the gearing ratio rose to **68.8%** - The Group's business operations are primarily funded by cash generated from operating activities and bank and other borrowings[45](index=45&type=chunk) Cash and Cash Equivalents | Indicator | 2025 June 30 (RMB millions) | 2024 December 31 (RMB millions) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 83.6 | 95.5 | [Bank and Other Borrowings](index=17&type=section&id=%E9%8A%80%E8%A1%8C%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B2%B8%E6%AC%BE) Total bank and other borrowings increased to **RMB 166.1 million** as of June 30, 2025, largely guaranteed by third parties or the ultimate controlling party, and partly by receivables, fixed assets, and bank deposits Bank and Other Borrowings | Indicator | 2025 June 30 (RMB millions) | 2024 December 31 (RMB millions) | | :--- | :--- | :--- | | Total bank and other borrowings | 166.1 | 163.7 | - Approximately **RMB 125.4 million** of the borrowings were guaranteed by third parties or the ultimate controlling party of the Company or its subsidiaries[46](index=46&type=chunk) - Approximately **RMB 36.9 million** of bank and other borrowings were secured by trade and bills receivables, property, plant and equipment, and bank deposits[46](index=46&type=chunk) [Gearing Ratio](index=17&type=section&id=%E8%B3%87%E6%9C%AC%E8%B2%A0%E5%82%B5%E6%AF%94%E7%8E%87) The gearing ratio increased to **68.8%** as of June 30, 2025, from **66.1%** on December 31, 2024, reflecting higher debt relative to equity Gearing Ratio | Indicator | 2025 June 30 | 2024 December 31 | | :--- | :--- | :--- | | Gearing Ratio | 68.8% | 66.1% | [Pledged Assets](index=18&type=section&id=%E5%B7%B2%E6%8A%B5%E6%8A%BC%E8%B3%87%E7%94%A2) Total pledged assets significantly decreased to **RMB 41,424 thousand** as of June 30, 2025, mainly due to lower pledged property, plant, equipment, and receivables Pledged Assets | Item | 2025 June 30 (RMB thousands) | 2024 December 31 (RMB thousands) | | :--- | :--- | :--- | | Property, Plant and Equipment | 22,255 | 85,071 | | Trade and Bills Receivables | 8,041 | 14,096 | | Bank deposits | 11,128 | 10,880 | | **Total** | **41,424** | **110,047** | [Capital Expenditure](index=18&type=section&id=%E8%B3%87%E6%9C%AC%E9%96%8B%E6%94%AF) Capital expenditure for the six months ended June 30, 2025, was approximately **RMB 7.13 million**, mainly for new plant and equipment, a decrease from the prior period Capital Expenditure | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | | :--- | :--- | :--- | | Capital Expenditure | 7.13 | 9.41 | - Capital expenditure was primarily related to the construction of new plants and the acquisition of new machinery and equipment[49](index=49&type=chunk) [Capital Commitments](index=18&type=section&id=%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94) Capital commitments for property, plant, and equipment increased to **RMB 35.8 million** as of June 30, 2025 Capital Commitments | Indicator | 2025 June 30 (RMB millions) | 2024 December 31 (RMB millions) | | :--- | :--- | :--- | | Commitments for property, plant and equipment | 35.8 | 25.5 | [Contingent Liabilities](index=18&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group had no significant contingent liabilities - As of **June 30, 2025**, the Group had no significant contingent liabilities[51](index=51&type=chunk) [RMB Exchange Rate Fluctuations and Foreign Exchange Risk](index=18&type=section&id=RMB%20Exchange%20Rate%20Fluctuations%20and%20Foreign%20Exchange%20Risk) With most business and all bank borrowings in RMB, the Group faces no significant foreign exchange risk, and the Board anticipates no material impact from exchange rate fluctuations - The vast majority of the Group's business and all bank borrowings are transacted and accounted for in RMB, thus posing **no significant foreign exchange fluctuation risk**[52](index=52&type=chunk) - The Board does not anticipate that RMB exchange rate fluctuations and other foreign currency exchange rate fluctuations will have a **material impact** on the Group's business or results of operations[52](index=52&type=chunk) [Material Investments Held, Material Acquisitions and Disposals](index=19&type=section&id=Material%20Investments%20Held%2C%20Material%20Acquisitions%20and%20Disposals) For the six months ended June 30, 2025, the Group had no material investments, acquisitions, or disposals of subsidiaries or associates - For the six months ended **June 30, 2025**, the Group had no material investments held or material acquisitions and disposals of subsidiaries and associates[53](index=53&type=chunk) [Interim Dividends](index=19&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board does not recommend any interim dividend payment for the six months ended June 30, 2025 - The Board of Directors of the Company does not recommend the payment of any interim dividend for the six months ended **June 30, 2025**[54](index=54&type=chunk) [Employees and Remuneration Policy](index=19&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June 30, 2025, employee count increased to **396**, with higher staff costs; remuneration policy focuses on performance, qualifications, market levels, training, and competitive compensation Number of Employees and Staff Costs | Indicator | 2025 June 30 | 2024 June 30 | | :--- | :--- | :--- | | Number of full-time employees | 396 | 357 | | Total staff costs (RMB millions) | 27.59 | 18.7 | - The Group's remuneration policy rewards employees and executives based on their performance, qualifications, demonstrated abilities, and comparable market levels[55](index=55&type=chunk) - The Group places great emphasis on employee training and offers competitive remuneration packages to retain excellent employees[55](index=55&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=19&type=section&id=%E8%B3%BC%E5%85%A5%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) Neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities for the six months ended June 30, 2025, or up to the announcement date - For the six months ended **June 30, 2025**, and up to the date of this announcement, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[56](index=56&type=chunk) [Major Subsequent Events](index=19&type=section&id=%E4%B8%BB%E8%A6%81%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) No significant events affecting the Group occurred from June 30, 2025, up to the announcement date - There were no significant events affecting the Group from the end of the financial period ended **June 30, 2025**, up to the date of this announcement[57](index=57&type=chunk) [Future Outlook](index=20&type=section&id=%E6%9C%AA%E4%BE%86%E5%B1%95%E6%9C%9B) The automotive industry is expected to grow despite competition; the Group plans to enhance new product development, expand passenger vehicle clients, and broaden its product portfolio for core competitiveness - The automotive industry is expected to maintain a **continuous growth trend**, despite increasing competition[58](index=58&type=chunk) - The Group will continue to strengthen new product development with existing clients and actively expand into new passenger vehicle clients[58](index=58&type=chunk) - The company will continuously expand its product portfolio to enhance its core competitiveness[58](index=58&type=chunk) [Corporate Governance](index=20&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) The company maintains high corporate governance, complying with the code despite a combined Chairman and CEO role; the Board and senior management adhere to securities transaction standards, and the Audit Committee reviewed interim results [Compliance with Corporate Governance Code](index=20&type=section&id=%E9%81%B5%E5%AE%88%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) The company complies with the Corporate Governance Code, with the Chairman and CEO roles combined by Mr. Hou Jianli, an arrangement the Board believes aids strategic planning and decision execution under continuous director oversight - The Company has complied with all code provisions of the Corporate Governance Code for the six months ended **June 30, 2025**, except for the combined roles of Chairman and Chief Executive Officer[59](index=59&type=chunk) - The Board believes that combining the roles of Chairman and Chief Executive Officer ensures consistency in the Group's leadership and allows for more effective overall strategic planning[59](index=59&type=chunk) - Other Board members and independent non-executive directors continuously monitor the Company's key decisions and oversee the powers of the Chairman and Chief Executive Officer[59](index=59&type=chunk) [Model Code for Securities Transactions](index=20&type=section&id=%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The company adopted the Listing Rules' Model Code for Securities Transactions, with all directors and senior management confirming compliance during the reporting period - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in **Appendix C3 of the Listing Rules**[60](index=60&type=chunk) - All directors and senior management confirm their compliance with the relevant provisions of the Model Code during the six months ended **June 30, 2025**[60](index=60&type=chunk) [Audit Committee](index=20&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Audit Committee reviewed the Group's accounting principles, policies, internal controls, financial reporting, and interim results for the six months ended June 30, 2025 - The Audit Committee has reviewed the accounting principles and policies adopted by the Group and discussed internal control and financial reporting matters[61](index=61&type=chunk) - The Audit Committee has reviewed the interim results for the six months ended **June 30, 2025**[61](index=61&type=chunk) [Publication of Information](index=21&type=section&id=%E5%88%8A%E7%99%BC%E4%BF%A1%E6%81%AF) This section outlines where the interim results announcement and report will be published - The interim results announcement will be published on the Stock Exchange's website (**www.hkexnews.hk**) and the Company's website (**www.trqcns.com**)[62](index=62&type=chunk) - The interim report for the six months ended **June 30, 2025**, containing all information required by the Listing Rules, will be dispatched to the Company's shareholders and published on the Stock Exchange's and the Company's websites in due course[62](index=62&type=chunk)

[Financial Highlights](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) The group's revenue increased by 7.6% to RMB 97.0 million, with gross profit up 6.2% to RMB 75.7 million, but net profit turned into a loss of RMB 125.5 million due to non-operating items Key Financial Data for the Six Months Ended June 30, 2025 | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 96,973 | 90,113 | 7.6% | | Gross Profit | 75,684 | 71,283 | 6.2% | | Profit/(Loss) for the Period | (125,505) | 226 | -55,633.2% | | Adjusted Net Profit (Non-IFRS Measure) | 28,183 | 26,646 | 5.8% | - The Group's revenue increased by **7.6%** year-on-year to **RMB 97.0 million**, gross profit increased by **6.2%** to **RMB 75.7 million**, but gross margin decreased by **1 percentage point** to **78.1%**[5](index=5&type=chunk) - A net loss of **RMB 125.5 million** was recorded for the period, compared to a net profit of **RMB 0.2 million** in the same period last year, primarily due to non-operating items. Adjusted net profit (non-IFRS measure) increased by **5.8%** year-on-year to **RMB 28.2 million**[5](index=5&type=chunk) [Business Review and Outlook](index=2&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7%E8%88%87%E5%B1%95%E6%9C%9B) The group maintained steady business growth in the first half of 2025, with increased revenue and adjusted net profit, while net profit turned to a loss due to non-operating factors [Business Review](index=2&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) In the first half of 2025, the Group maintained steady business growth, with increases in revenue and adjusted net profit, but net profit turned to a loss due to non-operating factors - The Group's revenue for the first half was **RMB 97.0 million**, a year-on-year increase of **7.6%**[6](index=6&type=chunk) - Gross profit was **RMB 75.7 million**, a year-on-year increase of **6.2%**[6](index=6&type=chunk) - Net loss was **RMB 125.5 million**, compared to a net profit of **RMB 0.2 million** in the same period last year[6](index=6&type=chunk) - Adjusted net profit (non-IFRS measure) was **RMB 28.2 million**, a year-on-year increase of **5.8%**[6](index=6&type=chunk) [Business Growth](index=2&type=section&id=%E6%A5%AD%E5%8B%99%E5%A2%9E%E9%95%B7) The Group's core public transportation information service business expanded significantly in coverage and user numbers, successfully initiating overseas market expansion and advancing its public transportation analytics platform with large language model technology [Public Transportation Information Services Business](index=2&type=section&id=%E5%85%AC%E4%BA%A4%E4%BF%A1%E6%81%AF%E6%9C%8D%E5%8B%99%E6%A5%AD%E5%8B%99) The core product "Che Lai Le" expanded its service coverage to 476 towns and increased cumulative users to 315.0 million, with average monthly active users growing to 30.2 million - The core product 'Che Lai Le' service coverage increased from **466** towns at the end of 2024 to **476** towns[7](index=7&type=chunk) - Cumulative users increased from **298.4 million** at the end of 2024 to **315.0 million**, a **5.6%** increase[7](index=7&type=chunk) - Average monthly active users grew to **30.2 million** from January to June 2025, a **5%** increase compared to the same period in 2024, and a **4%** increase compared to the 2024 full-year average[7](index=7&type=chunk) [Internationalization of Public Transportation Information Services](index=2&type=section&id=%E5%85%AC%E4%BA%A4%E4%BF%A1%E6%81%AF%E6%9C%8D%E5%8B%99%E7%9A%84%E5%9C%8B%E9%9A%9B%E5%8C%96) In the first half of 2025, the Group launched public transportation travel products in Hong Kong and Kuala Lumpur, establishing an initial presence in 5 overseas regions by August 2025 - Public transportation travel products were developed and launched in Hong Kong and Kuala Lumpur regions in the first half of 2025[8](index=8&type=chunk) - As of August 2025, international business has covered **5** overseas regions, forming an initial strategic layout[8](index=8&type=chunk) [Public Transportation Analytics Platform Business](index=3&type=section&id=%E5%85%AC%E4%BA%A4%E4%BF%A1%E6%81%AF%E5%88%86%E6%9E%90%E5%B9%B3%E5%8F%B0%E6%A5%AD%E5%8B%99) The public transportation analytics platform now covers 140 towns, providing data insights and smart decision-making support to transportation agencies, with its latest version integrating large language model technology for passenger flow analysis - The platform covers **140** towns nationwide, providing data insights and smart decision-making support for transportation agencies[9](index=9&type=chunk) - The latest version applies large language model technology to scenarios such as public transportation passenger flow analysis and has been deployed in pilot cities[9](index=9&type=chunk) [Revenue Breakdown](index=3&type=section&id=%E6%94%B6%E5%85%A5%E5%88%86%E4%BD%88) The Group's revenue is primarily from mobile advertising services, driven by user base expansion and increased penetration, while data technology services revenue grew strongly due to the public transportation analytics platform and customized solutions [Mobile Advertising Services](index=3&type=section&id=%E7%A7%BB%E5%8B%95%E5%BB%A3%E5%91%8A%E6%9C%8D%E5%8B%99) Mobile advertising services revenue reached RMB 94.2 million, a 6.4% year-on-year increase, primarily driven by expanded bus route coverage and increased user penetration leading to higher ad impressions - As of June 30, 2025, mobile advertising services revenue was **RMB 94.2 million**, a year-on-year increase of **6.4%**[10](index=10&type=chunk) - Growth primarily stemmed from increased ad impressions due to expanded bus route coverage and enhanced user penetration[10](index=10&type=chunk) [Data Technology Services](index=3&type=section&id=%E6%95%B8%E6%93%9A%E6%8A%80%E8%A1%93%E6%9C%8D%E5%8B%99) Data technology services revenue reached RMB 2.8 million from January to June 2025, a 74.1% increase compared to the same period in 2024, driven by the public transportation analytics platform and customized data intelligence solutions - From January to June 2025, data technology services revenue was **RMB 2.8 million**, a **74.1%** increase compared to the same period in 2024[11](index=11&type=chunk) - Revenue sources include public transportation analytics platform usage by transportation agencies and other customized data intelligence technology solutions[11](index=11&type=chunk) [AI Technology Reserves](index=3&type=section&id=AI%E6%8A%80%E8%A1%93%E5%84%B2%E5%82%99) The Group continuously invests in AI R&D, collaborating with universities on deep neural network foundation models and multi-model fusion, applying latest research to online products to significantly enhance prediction accuracy - Collaborated with universities such as Peking University to establish joint research projects focusing on deep neural network foundation models for specific industries and dynamic fusion of multiple deep neural network large models[12](index=12&type=chunk) - Some innovative achievements have been published in top international conferences such as ICML2025 and IJCNN[12](index=12&type=chunk) - The new generation of deep neural network-based time series prediction service has been launched in the 'Che Lai Le' product, with a considerable improvement in prediction accuracy[13](index=13&type=chunk) [Future Outlook](index=4&type=section&id=%E6%9C%AA%E4%BE%86%E5%B1%95%E6%9C%9B) The Group anticipates steady growth in the domestic urban public transportation sector, integrating AI technology for product iteration, while targeting overseas markets through a "technology export + localized operation" model and continuously incubating new AI products [Domestic Market Size Expected to Continue Steady Growth](index=4&type=section&id=%E5%9C%8B%E5%85%A7%E5%B8%82%E5%A0%B4%E8%A6%8F%E6%A8%A1%E5%B0%87%E7%B9%BC%E7%BA%8C%E7%A9%A9%E6%AD%A5%E5%A2%9E%E9%95%B7) China's urban public transportation industry revenue is projected to exceed RMB 500 billion by 2025, with passenger volume reaching 120 billion, and the Group will leverage AI technology for product iteration to enhance competitiveness - China's urban public transportation industry revenue is projected to exceed **RMB 500 billion** by 2025, with an average annual compound growth rate of **4%–5%**[14](index=14&type=chunk) - Urban public bus and tram passenger volume is expected to reach **120 billion** person-times in 2025, a **2.5%** increase from 2024[14](index=14&type=chunk) - The Group will closely follow the latest advancements in AI technology, applying them to product feature iterations to enhance core competitiveness[14](index=14&type=chunk) [Overseas Markets as a Future Growth Driver](index=4&type=section&id=%E6%B5%B7%E5%A4%96%E5%B8%82%E5%A0%B4%E6%98%AF%E6%A5%AD%E5%8B%99%E5%BE%8C%E7%BA%8C%E7%99%BC%E5%8A%9B%E6%96%B9%E5%90%91) Preliminary research indicates clear demand and high potential willingness to pay for real-time public transportation information in overseas markets, where the Group plans to expand through a "technology export + localized operation" model - Preliminary research indicates clear demand for real-time public transportation information in overseas markets and a relatively high potential willingness to pay[15](index=15&type=chunk) - Plans to gradually expand overseas coverage and optimize product experience through a 'technology export + localized operation' model[15](index=15&type=chunk) [Continuous Investment in Incubating New AI Products](index=4&type=section&id=%E6%8C%81%E7%BA%8C%E6%8A%95%E5%85%A5%E5%AD%B5%E5%8C%96%E6%96%B0%E7%9A%84AI%E7%94%A2%E5%93%81) Rapid AI technology development presents new market opportunities in data intelligence, and the Group will continuously invest in new product incubation as a strategic goal to create more value - Rapid development of AI technology brings new market opportunities in the data intelligence field[16](index=16&type=chunk) - The Group will continuously invest in new product incubation as a strategic goal to create more value[16](index=16&type=chunk) [Interim Condensed Consolidated Statement of Profit or Loss](index=5&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E6%90%8D%E7%9B%8A%E8%A1%A8) The interim condensed consolidated statement of profit or loss shows a significant shift from profit to a substantial loss for the period, primarily driven by a large fair value loss on financial liabilities Interim Condensed Consolidated Statement of Profit or Loss for the Six Months Ended June 30, 2025 | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Revenue | 96,973 | 90,113 | | Cost of Sales | (21,289) | (18,830) | | Gross Profit | 75,684 | 71,283 | | Other Income and Gains | 2,223 | 2,518 | | Selling and Distribution Expenses | (18,649) | (16,687) | | Administrative Expenses | (37,976) | (27,025) | | Research and Development Expenses | (21,633) | (18,580) | | Net Impairment Loss/(Reversal of Impairment Loss) on Financial Assets | 712 | (83) | | Fair Value Loss on Financial Liabilities at Fair Value Through Profit or Loss | (119,202) | (8,006) | | Other Expenses and Losses | (4,246) | (185) | | Finance Costs | (478) | (692) | | Profit/(Loss) Before Tax | (123,565) | 2,543 | | Income Tax Expense | (1,940) | (2,317) | | Profit/(Loss) for the Period | (125,505) | 226 | | Basic Earnings/(Loss) Per Share (RMB) | (1.69) | 0.00 | | Diluted Earnings/(Loss) Per Share (RMB) | (1.69) | 0.00 | [Interim Condensed Consolidated Statement of Comprehensive Income](index=6&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E7%B6%9C%E5%90%88%E6%94%B6%E7%9B%8A%E8%A1%A8) The interim condensed consolidated statement of comprehensive income reveals a substantial increase in total comprehensive loss for the period, primarily due to the shift from profit to loss and higher net other comprehensive loss Interim Condensed Consolidated Statement of Comprehensive Income for the Six Months Ended June 30, 2025 | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Profit/(Loss) for the Period | (125,505) | 226 | | Net Other Comprehensive Loss | (6,246) | (1,957) | | Total Comprehensive Loss for the Period | (132,303) | (2,532) | - In the first half of 2025, the Group recorded a total comprehensive loss for the period of **RMB 132.3 million**, a significant increase from the **RMB 2.5 million** loss in the same period last year, mainly due to the profit turning into a loss for the period and an increase in net other comprehensive loss[18](index=18&type=chunk) [Interim Condensed Consolidated Statement of Financial Position](index=7&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) The interim condensed consolidated statement of financial position shows a significant improvement in the Group's financial health, with net assets turning positive and a substantial reduction in current liabilities, primarily driven by the conversion of financial liabilities Interim Condensed Consolidated Statement of Financial Position (Summary) as at June 30, 2025 | Indicator | 2025-06-30 (RMB '000) | 2024-12-31 (RMB '000) | | :--- | :--- | :--- | | Total Non-current Assets | 63,128 | 67,703 | | Total Current Assets | 360,297 | 156,463 | | Total Current Liabilities | 76,424 | 536,150 | | Total Non-current Liabilities | 65 | 108 | | Net Assets/(Capital Deficiency) | 346,936 | (312,092) | | Total Equity/(Deficiency) | 346,936 | (312,092) | - As of June 30, 2025, the Group's net assets turned positive to **RMB 346.9 million**, compared to a capital deficiency of **RMB 312.1 million** as of December 31, 2024, primarily due to a significant reduction in current liabilities[19](index=19&type=chunk)[20](index=20&type=chunk) - Total current assets significantly increased to **RMB 360.3 million** (December 31, 2024: **RMB 156.5 million**), primarily driven by an increase in cash and cash equivalents[19](index=19&type=chunk) - Total current liabilities substantially decreased to **RMB 76.4 million** (December 31, 2024: **RMB 536.2 million**), mainly due to the conversion of financial liabilities at fair value through profit or loss (preference shares) into ordinary shares[19](index=19&type=chunk) [Interim Condensed Consolidated Statement of Changes in Equity](index=9&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) The interim condensed consolidated statement of changes in equity shows a significant shift from a capital deficiency to positive equity, primarily driven by share issuance and the conversion of preference shares into ordinary shares, partially offset by the period's loss - As of June 30, 2025, the Group's total equity shifted from a deficiency of **RMB 312.1 million** at the beginning of the period to an equity of **RMB 346.9 million**[22](index=22&type=chunk) - The significant increase in equity was primarily due to proceeds from share issuance of **RMB 221.8 million** and the conversion of financial liabilities at fair value through profit or loss (preference shares) into ordinary shares, resulting in an increase in capital reserve of **RMB 584.1 million**[22](index=22&type=chunk) - The loss of **RMB 125.5 million** for the period and total comprehensive loss of **RMB 132.3 million** partially offset the impact of the increase in share capital[22](index=22&type=chunk) [Interim Condensed Consolidated Statement of Cash Flows](index=11&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) The interim condensed consolidated statement of cash flows indicates a substantial increase in cash and cash equivalents, primarily driven by significant net cash generated from financing activities due to the IPO, despite a decrease in operating cash flow Interim Condensed Consolidated Statement of Cash Flows (Summary) for the Six Months Ended June 30, 2025 | Cash Flow Category | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Net Cash Generated From Operating Activities | 817 | 15,752 | | Net Cash Used In Investing Activities | (16,910) | (25,785) | | Net Cash Generated From/(Used In) Financing Activities | 207,663 | (14,389) | | Net Increase/(Decrease) In Cash and Cash Equivalents | 191,570 | (24,422) | | Cash and Cash Equivalents at End of Period | 246,466 | 31,092 | - Net cash generated from operating activities significantly decreased to **RMB 0.8 million** (2024: **RMB 15.8 million**), primarily due to an increase in loss before income tax, although most of it was non-cash items[26](index=26&type=chunk) - Net cash generated from financing activities turned significantly positive to **RMB 207.7 million** (2024: used **RMB 14.4 million**), mainly attributable to proceeds from global offering of **RMB 221.8 million**[27](index=27&type=chunk) - Cash and cash equivalents at the end of the period significantly increased to **RMB 246.5 million** (2024: **RMB 31.1 million**), primarily influenced by IPO fundraising[28](index=28&type=chunk) [Notes to the Interim Condensed Consolidated Financial Information](index=14&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E9%99%84%E8%A8%BB) These notes provide detailed explanations of the Group's company information, basis of presentation, accounting policy changes, operating segments, revenue, profit/loss before tax, income tax, dividends, earnings per share, property and equipment, receivables, payables, share capital, related party transactions, fair value of financial instruments, and post-reporting period events [1. Company Information](index=14&type=section&id=1.%20%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) MetaLight Inc., incorporated in the Cayman Islands on May 21, 2015, listed on the HKEX Main Board on June 10, 2025, primarily provides mobile advertising and data technology services through "Che Lai Le" APP and WeChat mini-program - The Company was listed on the Main Board of the Hong Kong Stock Exchange on **June 10, 2025**[29](index=29&type=chunk) - The principal business involves providing mobile advertising services, real-time vehicle information, and data technology services through the 'Che Lai Le' APP and WeChat mini-program[29](index=29&type=chunk) [2. Basis of Presentation](index=14&type=section&id=2.%20%E5%91%88%E5%88%97%E5%9F%BA%E6%BA%96) The interim condensed consolidated financial information is prepared in RMB according to IAS 34, with Wuhan YuanGuang Technology Co., Ltd. effectively controlled through contractual arrangements and consolidated as a subsidiary - The interim condensed consolidated financial information is prepared in **RMB '000** in accordance with International Accounting Standard 34[30](index=30&type=chunk) - The Group exercises effective control over Wuhan YuanGuang Technology Co., Ltd. through contractual arrangements, including exclusive business cooperation service agreements, exclusive call option agreements, and equity pledge agreements, and classifies it as a subsidiary[31](index=31&type=chunk)[32](index=32&type=chunk) [3. Changes in Accounting Policies and Disclosures](index=15&type=section&id=3.%20%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96%E8%AE%8A%E5%8B%95%E5%8F%8A%E6%8A%AB%E9%9C%B2) The financial information for this period adopts revised IFRS accounting standards for the first time, with IAS 21 (Revised) on lack of exchangeability having no material impact on the Group's financial information - The accounting policies adopted in the preparation of the interim condensed consolidated financial information are consistent with those in the 2024 annual report, except for the first-time adoption of revised IFRS accounting standards[33](index=33&type=chunk) - The amendments to IAS 21 (Revised) regarding lack of exchangeability had no impact on the interim condensed consolidated financial information, as the Group's transaction and functional currencies are all exchangeable[34](index=34&type=chunk) [4. Operating Segment Information](index=15&type=section&id=4.%20%E7%B6%93%E7%87%9F%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group has only one reportable operating segment, providing mobile advertising, vehicle real-time information, and data technology services through "Che Lai Le" APP and WeChat mini-program, with all external revenue and non-current assets originating from mainland China - The Group has only one reportable operating segment, which is mobile advertising services, real-time vehicle information, and data technology services[35](index=35&type=chunk) - All external revenue during the period was derived from customers in mainland China[36](index=36&type=chunk) - All non-current assets at the end of the period were located in mainland China[37](index=37&type=chunk) Revenue Contribution from Major Customers (For the Six Months Ended June 30) | Customer | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Customer A | 21,874 | 26,847 | | Customer B | 15,073 | 19,236 | | Customer C | 16,042 | * (Less than 10%) | [5. Revenue](index=16&type=section&id=5.%20%E6%94%B6%E5%85%A5) The Group's total revenue increased by 7.6% to RMB 97.0 million, primarily contributed by mobile advertising services and data technology services, with mobile advertising being the largest component and data technology services showing the fastest growth Analysis of Revenue from Contracts with Customers (For the Six Months Ended June 30) | Service Category | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Mobile Advertising Services | 94,158 | 88,496 | | Data Technology Services | 2,815 | 1,617 | | **Total** | **96,973** | **90,113** | Revenue from Contracts with Customers by Timing of Revenue Recognition (For the Six Months Ended June 30) | Recognition Timing | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Transferred at a point in time | 95,664 | 89,134 | | Transferred over time | 1,309 | 979 | | **Total Revenue** | **96,973** | **90,113** | [6. Profit/(Loss) Before Tax](index=17&type=section&id=6.%20%E9%99%A4%E7%A8%85%E5%89%8D%E5%88%A9%E6%BD%A4%EF%BC%8F%EF%BC%88%E8%99%A7%E6%90%8D%EF%BC%89) The Group recorded a loss before tax of RMB 123.6 million, primarily due to a significant increase in fair value loss on financial liabilities at fair value through profit or loss Components of Profit/(Loss) Before Tax (For the Six Months Ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Cost of Services Provided | 21,289 | 18,830 | | Net Impairment Loss/(Reversal of Impairment Loss) on Financial Assets | (712) | 83 | | Write-off of Other Receivables | – | 3 | | Net Exchange Differences | 655 | – | - Net impairment loss on financial assets shifted from a reversal of **RMB 83 thousand** in 2024 to an impairment loss of **RMB 712 thousand** in 2025[40](index=40&type=chunk) [7. Income Tax](index=18&type=section&id=7.%20%E6%89%80%E5%BE%97%E7%A8%85) The Group's income tax expense primarily originates from mainland China, with no assessable profits in Hong Kong, and mainland China subsidiaries benefit from preferential tax rates for high-tech or small-profit enterprises - No income tax in the Cayman Islands, and no provision for Hong Kong due to no assessable profits[42](index=42&type=chunk)[43](index=43&type=chunk) - Mainland China subsidiaries enjoy preferential tax rates of **15%** for high-tech enterprises or **5%** for small-profit enterprises[44](index=44&type=chunk) Income Tax Expense (For the Six Months Ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Current Tax Expense for the Period | – | 2 | | Deferred Tax Expense for the Period | 1,940 | 2,315 | | **Total Tax Expense for the Period** | **1,940** | **2,317** | [8. Dividends](index=18&type=section&id=8.%20%E8%82%A1%E6%81%AF) The Company did not declare or pay any dividends during the reporting period - The Company did not declare or pay any dividends during the period[46](index=46&type=chunk) [9. Basic and Diluted Earnings/(Loss) Per Share](index=19&type=section&id=9.%20%E6%AF%8F%E8%82%A1%E5%9F%BA%E6%9C%AC%E5%8F%8A%E6%94%A4%E8%96%84%E7%9B%88%E5%88%A9%EF%BC%8F%EF%BC%88%E8%99%A7%E6%90%8D%EF%BC%89) Both basic and diluted loss per share for the period were RMB 1.69, primarily due to the net loss, with anti-dilutive effects of options and preference shares not considered in the calculation Calculation of Basic and Diluted Earnings/(Loss) Per Share (For the Six Months Ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Profit/(Loss) Attributable to Ordinary Shareholders of the Company | (125,505) | 226 | | Adjustment for Fair Value Loss on Preference Shares | 119,202 | 8,006 | | Profit/(Loss) Used for Calculating Basic Earnings/(Loss) Per Share | (6,303) | 8,232 | | Number of Shares | 2025 | 2024 | | :--- | :--- | :--- | | Weighted Average Number of Ordinary Shares Outstanding for Basic Earnings/(Loss) Per Share | 74,450,469 | 51,706,266 | | Dilutive Effect – Weighted Average Number of Ordinary Shares | – | 5,796,800 | | Total | 74,450,469 | 57,503,066 | - Basic and diluted loss per share for 2025 were both **RMB 1.69**, compared to **RMB 0.00** in 2024[17](index=17&type=chunk) - Options and preference shares were not included in the calculation of diluted earnings/(loss) per share for 2025 and 2024 as they had an anti-dilutive effect[49](index=49&type=chunk) [10. Property and Equipment](index=20&type=section&id=10.%20%E7%89%A9%E6%A5%AD%E5%8F%8A%E8%A8%AD%E5%82%99) The Group did not acquire or dispose of any property and equipment during the six months ended June 30, 2025 - The Group did not acquire or dispose of any assets during the six months ended June 30, 2025[51](index=51&type=chunk) [11. Trade Receivables](index=20&type=section&id=11.%20%E6%87%89%E6%94%B6%E8%B3%87%E6%AC%BE) As of June 30, 2025, net trade receivables increased to RMB 38.1 million compared to the end of 2024, primarily concentrated within 6 months Analysis of Trade Receivables | Item | 2025-06-30 (RMB '000) | 2024-12-31 (RMB '000) | | :--- | :--- | :--- | | Trade Receivables | 39,320 | 35,487 | | Impairment | (1,261) | (1,828) | | **Net Carrying Amount** | **38,059** | **33,659** | Aging Analysis of Trade Receivables (Net of Loss Allowance) | Aging | 2025-06-30 (RMB '000) | 2024-12-31 (RMB '000) | | :--- | :--- | :--- | | Within 6 months | 37,482 | 33,357 | | 7 to 12 months | 577 | 302 | | **Total** | **38,059** | **33,659** | [12. Trade Payables](index=20&type=section&id=12.%20%E6%87%89%E4%BB%98%E8%B3%87%E6%AC%BE) As of June 30, 2025, total trade payables decreased to RMB 5.0 million compared to the end of 2024, primarily concentrated within 3 months Aging Analysis of Trade Payables (Based on Date of Service Acceptance) | Aging | 2025-06-30 (RMB '000) | 2024-12-31 (RMB '000) | | :--- | :--- | :--- | | Within 3 months | 1,974 | 6,118 | | 4 to 12 months | 2,324 | 870 | | 13 to 24 months | 462 | 528 | | Over 24 months | 270 | 348 | | **Total** | **5,030** | **7,864** | [13. Share Capital](index=21&type=section&id=13.%20%E8%82%A1%E6%9C%AC) The number of issued and fully paid ordinary shares significantly increased during the period due to new share issuance from the IPO and the conversion of preference shares into ordinary shares, leading to substantial growth in share capital and share premium Overview of Changes in Issued and Fully Paid Ordinary Shares | Item | As of 2025-06-30 (Number of Shares) | As of 2025-06-30 (Share Capital RMB '000) | | :--- | :--- | :--- | | At beginning of period | 63,973,298 | 44 | | Shares issued | 24,856,000 | 18 | | Conversion of financial liabilities at fair value through profit or loss | 65,447,239 | 47 | | Shares repurchased | – | – | | **At end of period** | **154,276,537** | **109** | - On June 10, 2025, the Company issued **24,856,000** ordinary shares in its initial public offering, with total cash proceeds of approximately **RMB 221.8 million**[55](index=55&type=chunk) - All **65,447,239** preference shares were converted into ordinary shares, with a total carrying value of **RMB 584.1 million**[55](index=55&type=chunk) [14. Related Party Transactions](index=22&type=section&id=14.%20%E9%97%9C%E8%81%AF%E6%96%B9%E4%BA%A4%E6%98%93) Related party transactions decreased during the period, while total key management personnel compensation increased, notably due to a significant rise in share-based payment expenses Related Party Transactions (For the Six Months Ended June 30) | Transaction Type | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Mobile advertising services provided by entities controlled by the controlling company | – | 2,230 | | Cloud storage service fees collected by entities controlled by the controlling company | – | 29 | | IT solutions and other services provided by an associate | – | 95 | Key Management Personnel Compensation (For the Six Months Ended June 30) | Compensation Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Short-term employee benefits | 1,080 | 2,365 | | Equity-settled share-based payment expenses | 8,433 | 4,195 | | Post-employment benefits | 104 | 102 | | **Total** | **9,617** | **6,662** | [15. Fair Value and Fair Value Hierarchy of Financial Instruments](index=23&type=section&id=15.%20%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7%E7%9A%84%E5%85%AC%E5%85%81%E5%83%B9%E5%80%BC%E5%8F%8A%E5%85%AC%E5%85%81%E5%83%B9%E5%80%BC%E5%B1%A4%E7%B4%9A) The fair value of the Group's financial instruments is primarily measured using discounted cash flow models, market-based valuation techniques, and option pricing methods, with financial liabilities at fair value through profit or loss (preference shares) converted to ordinary shares, resulting in zero balance at period-end Carrying Amounts and Fair Values of Financial Instruments (Summary) | Item | 2025-06-30 Carrying Amount (RMB '000) | 2024-12-31 Carrying Amount (RMB '000) | 2025-06-30 Fair Value (RMB '000) | 2024-12-31 Fair Value (RMB '000) | | :--- | :--- | :--- | :--- | :--- | | Financial Investments | 66,636 | 58,321 | 66,636 | 58,321 | | Financial Liabilities at Fair Value Through Profit or Loss | – | 465,189 | – | 465,189 | - Financial liabilities at fair value through profit or loss (preference shares) were converted into ordinary shares as of June 30, 2025, resulting in a zero fair value[59](index=59&type=chunk)[65](index=65&type=chunk) Fair Value Measurement Hierarchy (Summary) | Item | Level 1 (RMB '000) | Level 2 (RMB '000) | Level 3 (RMB '000) | Total (RMB '000) | | :--- | :--- | :--- | :--- | :--- | | **Assets Measured at Fair Value** | | | | | | Financial Investments (2025-06-30) | 9,734 | 50,159 | 6,743 | 66,636 | | Financial Investments (2024-12-31) | 8,960 | 43,079 | 6,282 | 58,321 | | **Liabilities Measured at Fair Value** | | | | | | Financial Liabilities at Fair Value Through Profit or Loss (2025-06-30) | – | – | – | – | | Financial Liabilities at Fair Value Through Profit or Loss (2024-12-31) | – | – | 465,189 | 465,189 | - Changes in Level 3 fair value measurements during the period show a fair value gain of **RMB 461 thousand** for financial investments, while financial liabilities at fair value through profit or loss recorded a fair value loss of **RMB 119.2 million**, subsequently reduced by **RMB 584.1 million** due to conversion into ordinary shares[66](index=66&type=chunk) [16. Events After the Reporting Period](index=26&type=section&id=16.%20%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) After the reporting period, the Group converted an unlisted convertible debt investment of RMB 1.0 million into a 5.0% equity stake in the investee entity and made an additional investment, increasing its total shareholding to 10.0% - On July 31, 2025, the Group converted an unlisted convertible debt investment of **RMB 1.0 million** into a **5.0%** equity stake in the investee entity[68](index=68&type=chunk) - Concurrently, an additional investment of **RMB 1.0 million** was made, bringing the total shareholding to **10.0%**[68](index=68&type=chunk) [Management Discussion and Analysis](index=27&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) This section provides an in-depth analysis of the Group's financial performance, including revenue, cost of sales, gross profit, operating expenses, other income/losses, fair value changes, non-IFRS measures, liquidity, capital resources, human resources, significant investments, and financial risks [Revenue](index=27&type=section&id=%E6%94%B6%E5%85%A5) The Group's total revenue increased by 7.6% to RMB 97.0 million, driven by growth in mobile advertising services and data technology services, benefiting from user growth and business expansion Revenue by Business Segment (For the Six Months Ended June 30) | Business Segment | 2025 (RMB '000) | 2024 (RMB '000) | Change Percentage | | :--- | :--- | :--- | :--- | | Mobile Advertising Services | 94,158 | 88,496 | 6.4% | | Data Technology Services | 2,815 | 1,617 | 74.1% | | **Total** | **96,973** | **90,113** | **7.6%** | - Mobile advertising services revenue increased by **RMB 5.7 million**, primarily due to the Company's continuous provision of high-quality public transportation information services, leading to growth in service coverage cities and users[69](index=69&type=chunk) - Data technology services revenue increased by **RMB 1.2 million**, mainly due to the Company's continuous expansion of its public transportation analytics platform business and collaboration with more transportation agencies[69](index=69&type=chunk) [Cost of Sales](index=27&type=section&id=%E9%8A%B7%E5%94%AE%E6%88%90%E6%9C%AC) Cost of sales increased by 13.06% year-on-year to RMB 21.3 million, with its proportion to revenue rising to 22.0%, primarily due to increased cross-network advertising fees - Cost of sales was **RMB 21.3 million**, an increase of **RMB 2.5 million** or **13.06%** compared to the same period last year[70](index=70&type=chunk) - The proportion of cost of sales to revenue increased from **20.9%** to **22.0%**[70](index=70&type=chunk) - The increase in cost of sales was primarily due to increased cross-network advertising fees[70](index=70&type=chunk) [Gross Profit and Gross Margin](index=28&type=section&id=%E6%AF%9B%E5%88%A9%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87) Gross profit increased by 6.2% year-on-year to RMB 75.7 million, but the gross margin slightly decreased from 79.1% to 78.1% - Gross profit increased by **6.2%** from **RMB 71.3 million** to **RMB 75.7 million**[71](index=71&type=chunk) - Gross margin decreased from **79.1%** to **78.1%**[71](index=71&type=chunk) [Selling Expenses](index=28&type=section&id=%E9%8A%B7%E5%94%AE%E9%96%8B%E6%94%AF) Selling expenses increased to RMB 18.7 million year-on-year, primarily due to increased advertising and promotion expenses aimed at attracting new users and enhancing user engagement - Selling expenses increased from **RMB 16.7 million** to **RMB 18.7 million**[72](index=72&type=chunk) - The increase was primarily attributable to higher advertising and promotion expenses to attract new users and enhance user engagement for 'Che Lai Le'[72](index=72&type=chunk) [Administrative Expenses](index=28&type=section&id=%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) Administrative expenses significantly increased year-on-year to RMB 38.0 million, mainly due to higher listing expenses and share-based payment expenses - Administrative expenses increased from **RMB 27.0 million** to **RMB 38.0 million**[73](index=73&type=chunk) - The increase was primarily due to higher listing expenses and share-based payment expenses[73](index=73&type=chunk) [Research and Development Expenses](index=28&type=section&id=%E7%A0%94%E7%99%BC%E9%96%8B%E6%94%AF) Research and development expenses increased year-on-year to RMB 21.6 million, primarily due to higher staff costs for additional R&D personnel engaged in new business initiatives and increased share-based payment expenses - Research and development expenses increased from **RMB 18.6 million** to **RMB 21.6 million**[74](index=74&type=chunk) - The increase was primarily due to higher staff costs for additional R&D personnel hired for new business initiatives and increased share-based payment expenses[74](index=74&type=chunk) [Other Income](index=28&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) Other income decreased by 11.7% year-on-year to RMB 2.2 million, mainly due to lower investment income and fair value gains on financial investments, partially offset by increased government grants - Other income was **RMB 2.2 million**, a decrease of **RMB 0.3 million** or **11.7%** compared to the same period last year[75](index=75&type=chunk) - Primarily due to a decrease in investment income of **RMB 0.8 million** and a decrease in fair value gains on financial investments at fair value through profit or loss of **RMB 0.4 million**[75](index=75&type=chunk) - Partially offset by an increase in government grants of **RMB 0.9 million**[75](index=75&type=chunk) [Other Losses](index=29&type=section&id=%E5%85%B6%E4%BB%96%E8%99%A7%E6%90%8D) Other losses significantly increased to RMB 4.2 million, primarily due to fair value losses on equity investments at fair value through profit or loss and exchange differences - Other losses for the six months ended June 30, 2025, were **RMB 4.2 million**, compared to **RMB 0.2 million** in the same period last year[76](index=76&type=chunk) - Primarily due to fair value losses on equity investments at fair value through profit or loss held by the Company and exchange differences[76](index=76&type=chunk) [Fair Value Loss on Financial Liabilities at Fair Value Through Profit or Loss](index=29&type=section&id=%E4%BB%A5%E5%85%AC%E5%85%81%E5%83%B9%E5%80%BC%E8%A8%88%E9%87%8F%E4%B8%94%E5%85%B6%E8%AE%8A%E5%8B%95%E8%A8%88%E5%85%A5%E7%95%B6%E6%9C%9F%E6%90%8D%E7%9B%8A%E7%9A%84%E9%87%91%E8%9E%8D%E8%B2%A0%E5%82%B5%E7%9A%84%E5%85%AC%E5%85%81%E5%83%B9%E5%80%BC%E6%90%8D%E5%A4%B1) A fair value loss of RMB 119.2 million was recorded, a significant increase from the prior year, mainly due to adjustments in the carrying value of contingently redeemable preference shares, with future fluctuations expected to cease following their conversion to ordinary shares post-IPO - A fair value loss of **RMB 119.2 million** was recorded, a significant increase from **RMB 8.0 million** in the same period of 2024[77](index=77&type=chunk) - This change primarily stemmed from adjustments to the carrying value of contingently redeemable preference shares, driven by changes in their redemption price[77](index=77&type=chunk) - Following the Group's successful listing, these preference shares have been automatically converted into ordinary shares, and such fair value fluctuations are not expected to recur in the future[77](index=77&type=chunk) [Non-IFRS Measures](index=29&type=section&id=%E9%9D%9E%E5%9C%8B%E9%9A%9B%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A%E6%BA%96%E5%89%87%E8%A8%88%E9%87%8F) The Group uses adjusted net profit (non-IFRS measure) as a supplementary indicator, excluding fair value losses on financial liabilities, listing expenses, share-based payment expenses, and fair value changes of equity investments, to better reflect core operating performance - Adjusted net profit (non-IFRS measure) is defined as (loss)/profit for the year/period, adjusted to exclude (i) fair value loss on financial liabilities at fair value through profit or loss, (ii) listing expenses, (iii) share-based payment expenses, and (iv) fair value changes of equity investments at fair value[79](index=79&type=chunk) - The new adjustment item (iv) was added because the fair value fluctuations of these equity investments significantly increased in the first half of 2025, being non-operating and non-cash in nature, and having a material impact on reflecting the Group's core operating performance[79](index=79&type=chunk) Adjusted Net Profit (Non-IFRS Measure) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Profit/(Loss) for the Period | (125,505) | 226 | | Adjustments for: | | | | Fair Value Loss on Financial Liabilities at Fair Value Through Profit or Loss | 119,202 | 8,006 | | Listing Expenses | 17,499 | 12,371 | | Share-based Payment Expenses | 13,275 | 6,467 | | Fair Value Changes of Equity Investments at Fair Value | 3,712 | (424) | | **Adjusted Net Profit (Non-IFRS Measure)** | **28,183** | **26,646** | [Liquidity and Capital Resources](index=31&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E6%BA%90) The Group's liquidity significantly improved, with a substantial increase in cash and cash equivalents, a shift to positive net current assets, and a sharp decrease in the gearing ratio, primarily due to IPO fundraising and the conversion of preference shares to ordinary shares [Overview of Liquidity and Capital Resources](index=31&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E6%BA%90%E6%A6%82%E8%A7%80) Net cash generated from operating activities was RMB 0.8 million, net cash used in investing activities was RMB 16.9 million, and net cash generated from financing activities was RMB 207.7 million, primarily from IPO proceeds and new bank borrowings - Net cash generated from operating activities was **RMB 0.8 million**, primarily affected by loss before income tax (mostly non-cash items)[80](index=80&type=chunk) - Net cash used in investing activities was **RMB 16.9 million**, mainly for the purchase of financial investments, partially offset by the redemption of matured structured deposits[81](index=81&type=chunk) - Net cash generated from financing activities was **RMB 207.7 million**, primarily from proceeds of the global offering and new bank borrowings[81](index=81&type=chunk) [Cash and Cash Equivalents](index=32&type=section&id=%E7%8F%BE%E9%87%91%E5%8F%8A%E7%8F%BE%E9%87%91%E7%AD%89%E5%83%B9%E7%89%A9) As of June 30, 2025, cash and cash equivalents significantly increased to RMB 246.5 million, a 337.8% growth from December 31, 2024, primarily due to IPO proceeds - As of June 30, 2025, cash and cash equivalents were **RMB 246.5 million**, a **337.8%** increase from December 31, 2024[83](index=83&type=chunk) - The increase was primarily due to the completion of the listing on **June 10, 2025**, and proceeds from the initial public offering of shares[83](index=83&type=chunk) [Trade Receivables](index=32&type=section&id=%E6%87%89%E6%94%B6%E8%B3%87%E6%AC%BE) As of June 30, 2025, trade receivables increased to RMB 38.1 million, a RMB 4.4 million increase from December 31, 2024, mainly due to higher single-month advertising revenue in June from events like 618 - As of June 30, 2025, trade receivables were **RMB 38.1 million**, an increase of **RMB 4.4 million** compared to December 31, 2024[84](index=84&type=chunk) - The increase was mainly due to higher single-month advertising revenue in June driven by festivals such as 618[84](index=84&type=chunk) [Trade Payables](index=32&type=section&id=%E6%87%89%E4%BB%98%E8%B3%87%E6%AC%BE) As of June 30, 2025, trade payables decreased to RMB 5.0 million, a RMB 2.8 million decrease from December 31, 2024, primarily due to the payment of previously accrued commercial promotion expenses - As of June 30, 2025, trade payables were **RMB 5.0 million**, a decrease of **RMB 2.8 million** compared to December 31, 2024[85](index=85&type=chunk) - The decrease was mainly due to the Company's payment of previously accrued commercial promotion expenses during the period[85](index=85&type=chunk) [Bank Loans as at June 30, 2025](index=32&type=section&id=%E6%96%BC2025%E5%B9%B46%E6%9C%8830%E6%97%A5%E7%9A%84%E9%8A%80%E8%A1%8C%E8%B2%B8%E6%AC%BE) As of June 30, 2025, the Group had several bank loans totaling RMB 40 million, secured by patent pledges and guarantees, with two loans maturing in July and August 2025 already fully repaid Bank Loan Details (As of June 30, 2025) | Borrower | Loan Amount (RMB '000) | Annual Interest Rate | Maturity Date | Collateral, Guarantee Status | | :--- | :--- | :--- | :--- | :--- | | Beijing YuanGuang ZhiXing Information Technology Co., Ltd. | 10,000 | 2.8% | 2025-07-19 | Patent pledge | | Beijing YuanGuang ZhiXing Information Technology Co., Ltd. | 10,000 | 2.2% | 2026-06-27 | Wuhan YuanGuang Technology Co., Ltd. guarantee | | Wuhan YuanGuang Technology Co., Ltd. | 10,000 | 2.9% | 2025-12-10 | Patent pledge and Beijing YuanGuang ZhiXing Information Technology Co., Ltd. guarantee | | Wuhan YuanGuang Technology Co., Ltd. | 10,000 | 3.0% | 2025-08-20 | Patent pledge and Wuhan YuanGuang Technology Co., Ltd. and Beijing YuanGuang ZhiXing Information Technology Co., Ltd. guarantee | - As of the date of the interim results announcement, two loans maturing in July and August 2025, respectively, have been fully repaid[87](index=87&type=chunk) [Gearing Ratio](index=33&type=section&id=%E8%B3%87%E7%94%A2%E5%82%B5%E5%8B%99%E6%AF%94%E7%8E%87) As of June 30, 2025, the gearing ratio significantly decreased to 18.1% from 239.2% as of December 31, 2024 - As of June 30, 2025, the gearing ratio was **18.1%**, a significant decrease from **239.2%** as of December 31, 2024[88](index=88&type=chunk) [Net Current Assets/(Liabilities)](index=33&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E7%94%A2%EF%BC%8F%EF%BC%88%E8%B2%A0%E5%82%B5%EF%BC%89%E6%B7%A8%E5%80%BC) As of June 30, 2025, the Group recorded net current assets of RMB 283.9 million, a significant improvement from net current liabilities of RMB 379.7 million as of December 31, 2024, primarily due to the conversion of redeemable preference shares from liabilities to equity - As of June 30, 2025, net current assets of **RMB 283.9 million** were recorded, compared to net current liabilities of **RMB 379.7 million** as of December 31, 2024[89](index=89&type=chunk) - The current ratio increased from **0.3** as of December 31, 2024, to **4.7** as of June 30, 2025[89](index=89&type=chunk) - The change was primarily due to the conversion of redeemable preference shares from liabilities to equity[89](index=89&type=chunk) [Capital Structure](index=33&type=section&id=%E8%B3%87%E6%9C%AC%E6%9E%B6%E6%A7%8B) The Company's capital comprises ordinary shares and reserves, funded by operating cash flow, shareholder contributions, bank financing, and net proceeds from the initial public offering - The Company's capital comprises ordinary shares and reserves, with funding sources including cash flow from operating activities, shareholder contributions, bank financing, and net proceeds from the initial public offering[90](index=90&type=chunk) [Contingent Liabilities](index=33&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group had no material contingent liabilities - As of June 30, 2025, the Group had no material contingent liabilities[91](index=91&type=chunk) [Human Resources](index=34&type=section&id=%E4%BA%BA%E5%8A%9B%E8%B3%87%E6%BA%90) The Group values its employees, with 138 staff members all located in China as of June 30, 2025, offering competitive compensation, equity incentives, and comprehensive training programs to attract and retain talent - As of June 30, 2025, the Group had a total of **138** employees, all located in China[92](index=92&type=chunk) - Total staff costs (including directors' remuneration) for the six months ended June 30, 2025, amounted to **RMB 39.6 million**[92](index=92&type=chunk) - Compensation policy is based on employee performance and experience, offering competitive salaries, performance bonuses, and share options, with participation in various government-organized employee social security schemes[93](index=93&type=chunk)[95](index=95&type=chunk) - The Group provides comprehensive training programs, including new employee onboarding, core competency development, internal training team capability enhancement, and key talent development plans[96](index=96&type=chunk) [Material Acquisitions and Disposals and Significant Investments](index=35&type=section&id=%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE%E4%BA%8B%E9%A0%85%E4%BB%A5%E5%8F%8A%E9%87%8D%E8%A6%81%E6%8A%95%E8%B3%87) The Group has not undertaken any material acquisitions or disposals since its listing date, and during the period, it subscribed to structured deposit products to enhance capital returns, with these investments not sourced from IPO proceeds [Material Acquisitions and Disposals](index=35&type=section&id=%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE%E4%BA%8B%E9%A0%85) From the listing date to June 30, 2025, the Group did not hold any material acquisitions or disposals of subsidiaries, associates, or joint ventures - From the listing date to June 30, 2025, the Group did not hold any material acquisitions or disposals of subsidiaries, associates, or joint ventures, nor any other material acquisitions[97](index=97&type=chunk) [Future Plans for Material Investments and Capital Assets](index=35&type=section&id=%E6%9C%89%E9%97%9C%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2%E7%9A%84%E6%9C%AA%E4%BE%86%E8%A8%88%E5%8A%83) The Group invested in structured deposit products with Shanghai Sci-Tech Bank, totaling RMB 45.1 million in fair value as of June 30, 2025, representing 10.7% of total assets, with these funds not sourced from IPO proceeds Structured Deposit Product Details (As of June 30, 2025) | Trustee | Wealth Management Type | Wealth Management Amount (RMB) | Start Date | End Date | Annualized Yield | Actual Gain or (Loss) (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shanghai Sci-Tech Bank | Structured Deposit | 5,000,000.00 | 2025-03-31 | 2025-07-01 | 2.25% | 28,750.00 | | Shanghai Sci-Tech Bank | Structured Deposit | 20,000,000.00 | 2025-04-21 | 2025-07-21 | 2.25% | 88,750.00 | | Shanghai Sci-Tech Bank | Structured Deposit | 5,000,000.00 | 2025-06-13 | 2025–09-15 | 2.05% | 5,125.00 | | Shanghai Sci-Tech Bank | Structured Deposit | 15,000,000.00 | 2025-06-20 | 2025-09-22 | 2.05% | 9,395.83 | - As of June 30, 2025, the fair value of Shanghai Sci-Tech Bank structured deposits was **RMB 45.1 million**, accounting for **10.7%** of total assets[98](index=98&type=chunk) - These investment funds were not sourced from the Company's initial public offering proceeds[98](index=98&type=chunk) [Capital Commitments](index=36&type=section&id=%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94) As of June 30, 2025, the Group had no capital commitments contracted but not recognized as liabilities - As of June 30, 2025, the Group had no capital commitments contracted but not recognized as liabilities[100](index=100&type=chunk) [Capital Expenditure](index=36&type=section&id=%E8%B3%87%E6%9C%AC%E9%96%8B%E6%94%AF) The Group incurred no capital expenditure during the reporting period - The Group incurred no capital expenditure during the reporting period[101](index=101&type=chunk) [Pledged Assets](index=36&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, the Group pledged certain patent rights for RMB 30 million in bank borrowings, with these patents retaining economic value and legal enforceability despite a zero carrying value - As of June 30, 2025, the Group pledged certain patent rights in exchange for **RMB 30 million** in bank borrowings[102](index=102&type=chunk) - Despite a net carrying value of zero for these patents, they retain economic value and legal enforceability[102](index=102&type=chunk) [Financial Risks](index=36&type=section&id=%E9%87%91%E8%9E%8D%E9%A2%A8%E9%9A%AA) The Group faces credit, liquidity, and exchange rate risks, which are managed through credit verification, maintaining adequate cash levels, and continuous monitoring of exchange rate fluctuations [Credit Risk](index=36&type=section&id=%E4%BF%A1%E8%B2%B8%E9%A2%A8%E9%9A%AA) Credit risk primarily arises from trade receivables and is managed through individual credit verification procedures for customers and continuous monitoring of outstanding balances - Credit risk primarily arises from trade receivables and is managed through individual credit verification procedures for customers and continuous monitoring of outstanding balances[104](index=104&type=chunk) [Liquidity Risk](index=36&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E9%A2%A8%E9%9A%AA) The Group manages liquidity risk by monitoring and maintaining sufficient levels of cash and cash equivalents to fund operations and mitigate the impact of cash flow fluctuations - The Group manages liquidity risk by monitoring and maintaining sufficient levels of cash and cash equivalents to fund operations and mitigate the impact of cash flow fluctuations[105](index=105&type=chunk) [Exchange Rate Fluctuation Risk](index=37&type=section&id=%E5%8C%AF%E7%8E%87%E6%B3%A2%E5%8B%95%E9%A2%A8%E9%9A%AA) The Group's functional currency is RMB, but some cash and financial assets are denominated in USD and HKD, exposing it to foreign exchange risk, which management continuously monitors without a current hedging policy - The Group's functional currency is RMB, but some cash and financial assets are denominated in USD and HKD, exposing it to foreign exchange risk[106](index=106&type=chunk) - Currently, there is no foreign currency hedging policy, and management will continue to monitor and take prudent measures when appropriate[106](index=106&type=chunk) [Other Information](index=37&type=section&id=%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) This section covers the interim dividend, corporate governance, transactions involving the Company's listed securities, compliance with the Model Code, post-reporting period events, review of interim results, and publication of the interim results announcement and report [Interim Dividend](index=37&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board of Directors does not recommend the payment of any interim dividend for the six months ended June 30, 2025 - The Board of Directors does not recommend the payment of any interim dividend for the six months ended June 30, 2025[107](index=107&type=chunk) [Corporate Governance](index=37&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) Since its listing on June 10, 2025, the Company has adopted and complied with the Corporate Governance Code set out in Appendix C1 of the Listing Rules, committed to achieving high standards of corporate governance - The Company has adopted the Corporate Governance Code as its corporate governance code since the listing date[108](index=108&type=chunk) - From the listing date to the date of this announcement, the Company has complied with all applicable code provisions under the Corporate Governance Code[108](index=108&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=37&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E7%9A%84%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities from the listing date to June 30, 2025, and no treasury shares were held at period-end - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities from the listing date to June 30, 2025[109](index=109&type=chunk) - As of June 30, 2025, the Company did not hold any treasury shares[109](index=109&type=chunk) [Compliance with the Model Code for Securities Transactions by Directors of Listed Issuers](index=37&type=section&id=%E9%81%B5%E5%AE%88%E4%B8%8A%E5%B8%82%E8%A6%8F%E5%89%87%E4%B9%8B%E3%80%8A%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87%E3%80%8B) 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 and has complied with it since the listing date - 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[110](index=110&type=chunk) - Following specific inquiries made to all Directors, each Director has confirmed compliance with the Model Code from the listing date to the date of this announcement[110](index=110&type=chunk) [Post-Reporting Period Events](index=38&type=section&id=%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) On July 31, 2025, the Group converted an RMB 1.0 million unlisted convertible debt investment into a 5.0% equity stake in the investee entity and made an additional RMB 1.0 million investment, increasing its total shareholding to 10.0% - On July 31, 2025, the Group agreed to convert the entire principal amount of its unlisted convertible debt investment of **RMB 1.0 million**, along with related accrued interest, into a **5.0%** equity stake in the investee entity[111](index=111&type=chunk) - It also agreed to invest an additional **RMB 1.0 million** in the investee entity, resulting in the Group collectively owning a **10.0%** equity stake in the investee entity[111](index=111&type=chunk) [Review of Interim Results](index=38&type=section&id=%E5%AF%A9%E9%96%B1%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE) The Company's Audit Committee reviewed the Group's unaudited consolidated financial statements and results for the six months ended June 30, 2025, confirming their preparation in accordance with applicable accounting standards, and the interim results were reviewed by Ernst & Young in accordance with HKSRE 2410 - The Audit Committee has reviewed the Group's unaudited consolidated financial statements and results for the six months ended June 30, 2025, and considers them to be prepared in accordance with applicable accounting standards[112](index=112&type=chunk) - The interim results are unaudited but have been reviewed by the Company's independent auditor, Ernst & Young, in accordance with Hong Kong Standard on Review Engagements 2410[112](index=112&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=38&type=section&id=%E5%88%8A%E7%99%BC%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%85%AC%E5%91%8A%E5%8F%8A%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) This interim results announcement has been published on the HKEX and Company websites, and the Company's 2025 interim report will be published in due course - This interim results announcement is published on the HKEX website (www.hkexnews.hk) and the Company's website (www.metalight.com.cn)[113](index=113&type=chunk) - The Company's 2025 interim report will be published on the HKEX and Company websites in due course[113](index=113&type=chunk) [Definitions](index=38&type=section&id=%E9%87%8B%E7%BE%A9) This section provides a glossary of key terms and abbreviations used throughout the report for clarity and consistency