香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因倚賴 該等內容而引致的任何損失承擔任何責任。 T.S. Lines Limited 德翔海運有限公司 （於香港註冊成立的有限公司） （股份代號：2510） 截至2025年6月30日止六個月的未經審核中期業績公告 財務摘要 德翔海運有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然公佈本公司及其 附屬公司（統稱「本集團」）截至2025年6月30日止六個月的未經審核綜合業績，連 同截至2024年6月30日止六個月的比較數字如下： 1 ‧ 截至2025年6月30日止六個月的收入約為641.4百萬美元，增加約18.7%。 ‧ 截至2025年6月30日止六個月的毛利約為127.1百萬美元，增加約170.1%。 ‧ 截至2025年6月30日止六個月的本公司權益股東應佔利潤約為188.7百萬美 元，增加約222.0%。 ‧ 截至2025年6月30日止六個月的本公司權益股東應佔每股基本盈利約為 0.113美元（截至2024年6月30日止六個月：0.042美元 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 Sino-Synergy Hydrogen Energy Technology (Jiaxing) Co., Ltd. 國鴻氫能科技（嘉興）股份有限公司 （於中華人民共和國註冊成立之股份有限公司） （股份代號：9663） 截至2025年6月30日止六個月的中期業績公告 財務摘要 國鴻氫能科技（嘉興）股份有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此 宣佈本公司及其附屬公司（「本集團」或「我們」）截至2025年6月30日止六個月（「報 告期間」）的未經審核中期業績，連同截至去年同期（「過往期間」）的比較數字如 下： 1 • 於報告期間，總收入約為人民幣58.9百萬元，較去年同期減少55.7%； • 於報告期間，本公司擁有人應佔虧損約為人民幣184.2百萬元，較去年同期 減少13.2%； • 每股基本虧損為人民幣0.36元，較過往期間每股基本虧損人民幣0.41元減少 12.2%；及 • 董事會已 ...

（於香港註冊成立之有限公司） （股份代號：00270） 截至2025年6月30日止六個月 中期業績公告 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚賴該等內 容而引致的任何損失承擔任何責任。 | 截至 6 月 30 日止六個月未經審核財務摘要 | | | | | --- | --- | --- | --- | | 2025 | 年 | 2024 年 （經重列） | 變動 | | | 千港元 | 千港元 | % | | 來自持續經營業務 | | | | | 收入 | 9,428,291 | 9,486,866 | -0.6 | | 稅前利潤 | 4,105,084 | 3,848,913 | +6.7 | | 歸屬於本公司所有者的溢利╱ （虧損） | | | | | 持續經營業務 | 2,698,784 | 2,473,445 | | | 終止經營業務 | (17,051) | (62,460) | | | 2,681,733 | | 2,410,985 | +11.2 | | 每股盈利－基 ...

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

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

[Financial Highlights](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) [Overview of Financial Highlights](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81%E6%A6%82%E8%A7%88) The Group achieved **19.4% revenue growth** to **HKD 1,461.5 million** in H1 2025, driven by freight forwarding and cruise logistics, maintaining **HKD 19.1 million net profit** and declaring **HKD 0.01 interim dividend** Key Financial Indicators for H1 2025 | Indicator | H1 2025 (HKD Million) | H1 2024 (HKD Million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,461.5 | 1,223.6 | +19.4% | | Freight Forwarding & Cruise Logistics Revenue | 1,307.0 | 1,038.9 | +25.8% | | Net Profit | 19.1 | 20.2 | -5.4% | | EBITDA | 93.6 | 104.4 | -10.4% | | Interim Dividend (Per Share) | HKD 0.01 | - | - | [Financial Statements](index=2&type=section&id=%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) [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) The Group's H1 2025 revenue grew **19.4%**, but operating profit and profit for the period slightly decreased, with basic EPS falling from **HKD 0.064 to HKD 0.053** Consolidated Statement of Profit or Loss Summary (Six Months Ended June 30) | Indicator | 2025 (HKD Thousand) | 2024 (HKD Thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,461,540 | 1,223,581 | +19.4% | | Cost of Services | (1,219,692) | (995,331) | +22.5% | | Gross Profit | 241,848 | 228,250 | +6.0% | | Net Other Income | 1,430 | 6,164 | -76.8% | | Operating Profit | 47,908 | 50,033 | -4.2% | | Profit for the Period | 19,093 | 20,248 | -5.7% | | Profit Attributable to Equity Holders of the Company | 15,429 | 18,610 | -17.2% | | Basic and Diluted EPS (HK Cents) | 5.3 | 6.4 | -17.1% | [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) The Group's H1 2025 total comprehensive income significantly increased, driven by positive exchange differences from overseas subsidiaries and associates, reversing a prior period negative trend Consolidated Statement of Profit or Loss and Other Comprehensive Income Summary (Six Months Ended June 30) | Indicator | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Profit for the Period | 19,093 | 20,248 | | Exchange Differences on Translation | 27,796 | (14,233) | | Total Comprehensive Income for the Period | 46,645 | 6,097 | | Total Comprehensive Income Attributable to Equity Holders of the Company | 41,152 | 6,253 | [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) As of June 30, 2025, the Group's total assets and net current assets increased due to higher receivables and contract assets, reflecting improved financial health Consolidated Statement of Financial Position Summary (As of June 30) | Indicator | June 30, 2025 (HKD Thousand) | December 31, 2024 (HKD Thousand) | | :--- | :--- | :--- | | Non-current Assets | 490,033 | 474,324 | | Current Assets | 1,261,428 | 1,126,464 | | Current Liabilities | 1,099,554 | 982,521 | | Net Current Assets | 161,874 | 143,943 | | Total Assets Less Current Liabilities | 651,907 | 618,267 | | Net Assets | 582,858 | 548,458 | | Total Equity | 582,858 | 548,458 | [Notes to the Consolidated Financial Statements](index=6&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) [Principal Accounting Policies](index=6&type=section&id=%E4%B8%BB%E8%A6%81%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) This interim financial report is prepared under **HKAS 34**, using consistent accounting policies with 2024 annual statements, and **HKAS 21 (Revised)** had no material impact - The interim financial report is prepared in accordance with **HKAS 34** and reviewed by **KPMG**[10](index=10&type=chunk)[11](index=11&type=chunk) - **HKAS 21 (Revised)**, "The Effects of Changes in Foreign Exchange Rates — Lack of Exchangeability," has been applied but has no material impact on this interim report[12](index=12&type=chunk) [Revenue and Segment Information](index=7&type=section&id=%E6%94%B6%E7%9B%8A%E5%8F%8A%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group's H1 2025 total revenue reached **HKD 1,461.5 million**, primarily from air and ocean freight, with Mainland China, Italy, and Hong Kong as key geographical contributors Revenue from Contracts with Customers by Major Service Items (HKD Thousand) | Service Item | 2025 | 2024 | | :--- | :--- | :--- | | Air Freight Forwarding Services | 627,359 | 503,592 | | Ocean Freight Forwarding Services | 424,718 | 308,940 | | Distribution and Logistics Services | 154,515 | 184,659 | | Cruise Logistics Services | 254,948 | 226,390 | | **Total** | **1,461,540** | **1,223,581** | Revenue from Customers by Geographical Location (HKD Thousand) | Region | 2025 | 2024 | | :--- | :--- | :--- | | Hong Kong | 284,883 | 258,302 | | Mainland China | 333,627 | 252,615 | | Italy | 349,739 | 303,858 | | Taiwan | 64,087 | 59,389 | | United States | 240,114 | 224,835 | | Other Countries | 189,090 | 124,582 | | **Total** | **1,461,540** | **1,223,581** | - Revenue from air freight forwarding, ocean freight forwarding, and cruise logistics services is recognized over time, while revenue from distribution and logistics services is recognized at a point in time when the services are provided[15](index=15&type=chunk)[16](index=16&type=chunk) [Profit Before Tax](index=10&type=section&id=%E9%99%A4%E7%A8%85%E5%89%8D%E6%BA%A2%E5%88%A9) The Group's H1 2025 profit before tax was **HKD 37.9 million**, a slight decrease, with lower finance costs but stable depreciation and amortization expenses Components of Profit Before Tax (HKD Thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Finance Costs | 11,770 | 12,983 | | Interest on Bank Loans and Overdrafts | 9,859 | 10,384 | | Interest on Lease Liabilities | 1,818 | 2,599 | | Depreciation — Property, Plant and Equipment | 14,011 | 14,505 | | Depreciation — Right-of-use Assets | 30,965 | 38,081 | | Amortisation of Intangible Assets | 206 | 209 | | Reversal of Provision for Expected Credit Losses on Trade Receivables | (181) | — | - As of June 30, 2025, amounts payable to the DP World Group include an unsecured loan of **HKD 20,223,000**, bearing interest at **6.54% per annum** and repayable on demand[26](index=26&type=chunk) [Income Tax in Consolidated Statement of Profit or Loss](index=11&type=section&id=%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8%E4%B8%AD%E7%9A%84%E6%89%80%E5%BE%97%E7%A8%85) The Group's H1 2025 total income tax was **HKD 18.8 million**, consistent with the prior year, with Hong Kong profits tax at **16.5%** and overseas taxes including withholding taxes in Taiwan and France Components of Income Tax (HKD Thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Current Tax — Hong Kong Profits Tax | 2,085 | 1,855 | | Current Tax — Outside Hong Kong | 18,151 | 16,499 | | Withholding Tax on Distributable Profits of Subsidiaries | 2,258 | 1,981 | | Deferred Tax | (3,673) | (1,502) | | **Total** | **18,821** | **18,833** | - Hong Kong profits tax rate is **16.5%**, while withholding tax rates in Taiwan and France are **21%** and **10%**, respectively[28](index=28&type=chunk)[29](index=29&type=chunk) [Earnings Per Share](index=11&type=section&id=%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) The Group's H1 2025 basic EPS was **HKD 0.053**, down from **HKD 0.064** last year, with diluted EPS remaining identical due to no dilutive shares Earnings Per Share Calculation (HK Cents) | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Profit Attributable to Equity Holders of the Company (HKD Thousand) | 15,429 | 18,610 | | Weighted Average Number of Ordinary Shares in Issue (Thousand Shares) | 292,692 | 292,692 | | Basic and Diluted EPS (HK Cents) | 5.3 | 6.4 | [Dividends](index=12&type=section&id=%E8%82%A1%E6%81%AF) The Group's subsidiaries declared and paid **HKD 12.3 million** in dividends to non-controlling interests in H1 2025, a significant increase year-on-year Dividends Paid to Non-controlling Interests (HKD Thousand) | Period | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Dividends Paid | 12,295 | 5,489 | [Goodwill](index=12&type=section&id=%E5%95%86%E8%AD%BD) As of June 30, 2025, the Group's total goodwill was **HKD 227.3 million**, mainly allocated to Taiwan air freight and Allport Cruise logistics, affected by exchange adjustments Goodwill Allocation (HKD Thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | As at January 1 | 222,224 | 224,762 | | Exchange Adjustments | 5,077 | (2,538) | | End of Period/Year | 227,301 | 222,224 | | Air Freight Forwarding Business — Taiwan | 24,104 | 21,188 | | Cruise Logistics Business — Allport Cruise Group | 203,197 | 201,036 | [Loans Receivable](index=12&type=section&id=%E6%87%89%E6%94%B6%E8%B2%B8%E6%AC%BE) As of June 30, 2025, loans receivable include an unsecured **USD 1,750,000** employee loan at **5% annual interest**, repayable by August 31, 2029 - As of June 30, 2025, the balance of loans receivable was **HKD 13,636,000**, primarily an **USD 1,750,000** loan provided to an employee[34](index=34&type=chunk) - This employee loan is unsecured, bears interest at **5% per annum**, and is repayable in five equal annual installments of one-fifth of the loan balance plus accrued interest by August 31, 2029[34](index=34&type=chunk) - A loan of **HKD 2,800,000** provided to a director as of December 31, 2024, was settled in March 2025[35](index=35&type=chunk) [Trade and Other Receivables and Contract Assets](index=13&type=section&id=%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%E5%8F%8A%E5%90%88%E7%B4%84%E8%B3%87%E7%94%A2) As of June 30, 2025, total trade and other receivables and contract assets increased to **HKD 921.1 million**, with trade receivables mostly due within one month Ageing Analysis of Trade Receivables (HKD Thousand) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 1 month | 469,275 | 432,883 | | 1 to 2 months | 85,999 | 63,671 | | 2 to 3 months | 46,863 | 25,111 | | Over 3 months | 15,041 | 13,249 | | **Total Trade Receivables** | **617,178** | **534,914** | | Other Receivables, Prepayments and Deposits | 111,689 | 107,179 | | **Total Contract Assets** | **192,226** | **153,233** | | **Total** | **921,093** | **795,326** | - Contract assets primarily represent unbilled amounts from freight forwarding contracts where revenue recognition exceeds amounts billed[37](index=37&type=chunk) [Trade and Other Payables and Contract Liabilities](index=14&type=section&id=%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%E5%8F%8A%E5%90%88%E7%B4%84%E8%B2%A0%E5%80%B5) As of June 30, 2025, total trade and other payables and contract liabilities increased to **HKD 432.8 million**, with trade payables mostly due within one month Ageing Analysis of Trade Payables (HKD Thousand) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 1 month | 270,354 | 228,272 | | 1 to 3 months | 57,004 | 68,235 | | Over 3 months | 14,779 | 11,832 | | **Total Trade Payables** | **342,137** | **308,339** | | Other Payables and Accruals | 69,564 | 77,487 | | **Total Contract Liabilities** | **21,147** | **20,756** | | **Total** | **432,848** | **406,582** | - Contract liabilities represent amounts billed to customers for certain freight forwarding contracts before service performance at the end of the reporting period[38](index=38&type=chunk) [Share Capital](index=14&type=section&id=%E8%82%A1%E6%9C%AC) As of June 30, 2025, the Company had **300,489,000 ordinary shares** in issue, with a par value of **USD 0.001 per share**, unchanged from December 31, 2024 - The Company has **300,489,000 ordinary shares** in issue, with a par value of **USD 0.001 per share**[40](index=40&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) [Business Review](index=15&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) The Group, specializing in high-end logistics, saw H1 2025 revenue grow **19.4%**, but profit attributable to equity holders decreased **17.2%** due to cruise logistics changes and project delays - The Group operates **28 branch offices** in **16 countries and regions** globally, collaborating with over **100 business partners** to cover more than **100 countries** worldwide[41](index=41&type=chunk) - The global air cargo industry demonstrated robust growth despite complex geopolitical challenges, primarily driven by e-commerce demand[41](index=41&type=chunk) Key Financial Data from Business Review (HKD Million) | Indicator | H1 2025 | H1 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,461.5 | 1,223.6 | +19.4% | | Profit Attributable to Equity Holders of the Company | 15.4 | 18.6 | -17.2% | [Geographical Analysis — Greater China](index=15&type=section&id=%E5%9C%B0%E5%8D%80%E5%88%86%E6%9E%90%20%E2%80%94%20%E5%A4%A7%E4%B8%AD%E8%8F%AF%E5%8D%80) Greater China revenue grew **21.1%** to **HKD 618.5 million**, driven by increased business volume and surging e-commerce demand, particularly via Cargo Services Express Greater China Revenue (HKD Million) | Region | H1 2025 | H1 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | China and Hong Kong | 618.5 | 510.9 | +21.1% | [Geographical Analysis — Europe](index=16&type=section&id=%E5%9C%B0%E5%8D%80%E5%88%86%E6%9E%90%20%E2%80%94%20%E6%AD%90%E6%B4%B2) European market revenue grew **15.1%** to **HKD 349.7 million**, driven by increased volume, strong luxury demand, and rapid e-commerce expansion, especially in air freight and last-mile delivery Europe Region Revenue (HKD Million) | Region | H1 2025 | H1 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Italy | 349.7 | 303.9 | +15.1% | [Geographical Analysis — Southeast Asia](index=16&type=section&id=%E5%9C%B0%E5%8D%80%E5%88%86%E6%9E%90%20%E2%80%94%20%E6%9D%B1%E5%8D%97%E4%BA%9E) The Group saw continuous growth in Southeast Asia, with Vietnam and Indonesia revenues up **64.1%** and **26.8%** respectively, benefiting from RCEP and "China+1" strategies Southeast Asia Region Revenue (HKD Million) | Region | H1 2025 | H1 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Vietnam | 52.3 | - | +64.1% | | Indonesia | 8.6 | - | +26.8% | [Cargo Services Express: New Partnerships, Expanded Reach, and Volume Growth](index=16&type=section&id=Cargo%20Services%20Express%3A%20New%20Partnerships%2C%20Expanded%20Reach%2C%20and%20Volume%20Growth) Cargo Services Express revenue reached **HKD 246.1 million**, a **178.6% YoY increase**, driven by expanded partnerships with Chinese e-commerce platforms into more European and African cities Cargo Services Express Revenue (HKD Million) | Indicator | H1 2025 | YoY Change (%) | | :--- | :--- | :--- | | Cargo Services Express Revenue | 246.1 | +178.6% | - Cargo Services Express has successfully expanded its service scope with major Chinese e-commerce platforms, providing freight forwarding, customs clearance, and last-mile delivery services to more cities in European and African countries[46](index=46&type=chunk) [Steady Global Tourism Recovery Benefits Cruise Logistics Business](index=17&type=section&id=Steady%20Global%20Tourism%20Recovery%20Benefits%20Cruise%20Logistics%20Business) Cruise logistics revenue grew **12.6%** to **HKD 254.9 million** due to tourism recovery, but US "reciprocal tariffs" delayed upgrades, impacting profit margins Cruise Logistics Segment Revenue (HKD Million) | Indicator | H1 2025 | H1 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Cruise Logistics Revenue | 254.9 | 226.4 | +12.6% | - US "reciprocal tariffs" led some cruise operators to postpone major upgrade and renovation projects, impacting the profit margins of the cruise logistics business[48](index=48&type=chunk) [Financial Performance](index=17&type=section&id=%E8%B2%A1%E5%8B%99%E6%A5%AD%E7%B8%BE) The Group's H1 2025 revenue grew **19.4%** to **HKD 1,461.5 million**, gross profit increased **6.0%** to **HKD 241.8 million**, but **EBITDA decreased to HKD 93.6 million** Financial Performance Overview (HKD Million) | Indicator | H1 2025 | H1 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,461.5 | 1,223.6 | +19.4% | | Gross Profit | 241.8 | 228.3 | +6.0% | | EBITDA | 93.6 | 104.9 | -10.8% | [Segment Analysis](index=17&type=section&id=%E5%88%86%E9%83%A8%E5%88%86%E6%9E%90) The Group's main segments are air freight, ocean freight, cruise logistics, and distribution; air freight is largest, ocean freight saw significant growth, cruise logistics grew steadily, while distribution declined due to a weak Chinese luxury market - The Group is primarily engaged in providing freight forwarding services (including air and ocean freight forwarding services), cruise logistics, and distribution and logistics services[50](index=50&type=chunk) [Air Freight Forwarding Services](index=17&type=section&id=%E7%A9%BA%E9%81%8B%E4%BB%A3%E7%90%86%E6%9C%8D%E5%8B%99) Air freight forwarding, the Group's largest segment, grew **24.6%** to **HKD 627.4 million** in H1 2025, accounting for **42.9% of total revenue**, driven by Cargo Services Express's e-commerce logistics Air Freight Forwarding Services Revenue (HKD Million) | Indicator | H1 2025 | H1 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Air Freight Forwarding Revenue | 627.4 | 503.6 | +24.6% | | % of Total Revenue | 42.9% | 41.2% | +1.7 percentage points | | Cargo Services Express E-commerce Logistics Solutions Revenue Growth | 157.8 | - | - | - The Group is one of the few specialized companies providing freight forwarding services for wine exports from France and the UK to Hong Kong[51](index=51&type=chunk) [Ocean Freight Forwarding Services](index=18&type=section&id=%E6%B5%B7%E9%81%8B%E4%BB%A3%E7%90%86%E6%9C%8D%E5%8B%99) Ocean freight forwarding revenue grew **37.5%** to **HKD 424.7 million**, with gross profit up **74.0%** to **HKD 90.3 million**, driven by rising freight rates, increased demand, and new client partnerships Ocean Freight Forwarding Services Financial Data (HKD Million) | Indicator | H1 2025 | H1 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Ocean Freight Forwarding Revenue | 424.7 | 308.9 | +37.5% | | Gross Profit | 90.3 | 51.9 | +74.0% | - The increase in revenue and gross profit was primarily due to rising ocean freight rates, increased local demand from existing customers for tire products, luxury raw materials, and tableware, and a significant increase in export shipments from a growing number of factories in Vietnam and Indonesia[53](index=53&type=chunk) - The Group's Japan branch began collaborating with a leading international automotive brand, expanding its customer base[53](index=53&type=chunk) [Cruise Logistics](index=18&type=section&id=%E9%83%B5%E8%BC%AA%E7%89%A9%E6%B5%81) Cruise logistics revenue grew **12.6%** to **HKD 254.9 million**, providing freight forwarding for the cruise industry, including dry-dock transport and provisioning across multiple global cities Cruise Logistics Segment Revenue (HKD Million) | Indicator | H1 2025 | H1 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Cruise Logistics Revenue | 254.9 | 226.4 | +12.6% | [Distribution and Logistics Services](index=19&type=section&id=%E9%85%8D%E9%80%81%E5%8F%8A%E7%89%A9%E6%B5%81%E6%9C%8D%E5%8B%99) Distribution and logistics revenue fell **16.4%** to **HKD 154.5 million**, with gross profit down **45.8%** to **HKD 7.7 million**, mainly due to weak Chinese luxury demand Distribution and Logistics Services Financial Data (HKD Million) | Indicator | H1 2025 | H1 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Distribution and Logistics Revenue | 154.5 | 184.7 | -16.4% | | Gross Profit | 7.7 | 14.2 | -45.8% | | % of Total Revenue | 10.6% | 15.1% | -4.5 percentage points | - The decrease in revenue and gross profit was primarily due to reduced domestic demand for luxury goods in China and a weaker-than-expected Chinese luxury market[56](index=56&type=chunk) - The Group manages and operates **33 distribution centers** with a total gross floor area of approximately **1,063,000 square feet**, offering specialized warehousing, logistics, and other value-added services like wine distribution[55](index=55&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=19&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) The Group's working capital increased to **HKD 161.9 million** as of June 30, 2025, with a current ratio of **1.15**, significantly increased operating cash inflow, and an improved gearing ratio of **-24.3%**, maintaining a net cash position Liquidity and Capital Structure Indicators (HKD Million) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Working Capital | 161.9 | 143.9 | | Current Ratio | 1.15 | 1.15 | | Cash and Cash Equivalents | 263.7 | 255.0 | | Operating Cash Inflow | 49.5 | 15.0 | | Outstanding Bank Loans and Overdrafts | 363.3 | 384.1 | | Gearing Ratio | -24.3% | 35.2% | - The Group maintains a net cash position and will continue to secure financing as needed[58](index=58&type=chunk) [Foreign Exchange Risk](index=20&type=section&id=%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA) The Group faces foreign exchange risk from multiple currencies, with **RMB fluctuations** having the most significant impact, and does not engage in specific hedging or speculative transactions - The Group's borrowings and cash and cash equivalents are primarily denominated in **RMB, USD, HKD, and EUR**[59](index=59&type=chunk) - As the HKD is pegged to the USD, the Group's operations are primarily affected by **RMB fluctuations**[59](index=59&type=chunk) - The Group does not maintain any specific hedging policies or foreign currency forward contracts for foreign exchange risk and does not engage in speculative trading of debt securities or financial derivatives[59](index=59&type=chunk) [Material Investments](index=20&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87) The Group held **no material investments** during the reporting period - The Group held **no material investments** during the reporting period[60](index=60&type=chunk) [Capital Commitments](index=21&type=section&id=%E8%B3%87%E6%9C%AC%E9%96%8B%E6%94%AF%E6%89%BF%E6%93%94) As of June 30, 2025, the Group had **no significant capital commitments** contracted but not provided for - The Group had **no significant capital commitments** contracted but not provided for as of June 30, 2025[61](index=61&type=chunk) [Contingent Liabilities](index=21&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%80%B5) As of June 30, 2025, the Company provided financial guarantees for subsidiaries' bank facilities, with a maximum liability of **HKD 331.2 million**, and has no material legal proceedings - The Company provided financial guarantees for subsidiaries' bank facilities, with a maximum liability of **HKD 331.2 million** (December 31, 2024: HKD 345.8 million)[62](index=62&type=chunk) - The Group is not involved in any existing material legal proceedings, nor is it aware of any pending or potential material legal proceedings[62](index=62&type=chunk) [Pledged Group Assets](index=21&type=section&id=%E6%8A%B5%E6%8A%BC%E9%9B%86%E5%9C%98%E8%B3%87%E7%94%A2) As of June 30, 2025, approximately **HKD 2.4 million** of the Group's pledged bank deposits were used for certain bank guarantees - Approximately **HKD 2.4 million** (December 31, 2024: HKD 2.3 million) of the Group's pledged bank deposits were used for certain bank guarantees[63](index=63&type=chunk) [Events After Reporting Period](index=21&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) No material events affecting the Group have occurred from the end of the reporting period up to the date of this announcement - No material events affecting the Group have occurred from the end of the reporting period up to the date of this announcement[64](index=64&type=chunk) [Material Acquisitions or Disposals of Subsidiaries and Associates](index=21&type=section&id=%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E6%88%96%E5%87%BA%E5%94%AE%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8%E5%8F%8A%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8) There were **no material acquisitions or disposals** of the Company's subsidiaries or associates during the reporting period - There were **no material acquisitions or disposals** of the Company's subsidiaries or associates during the reporting period[65](index=65&type=chunk) [Use of Proceeds](index=21&type=section&id=%E6%89%80%E5%BE%97%E6%AC%BE%E9%A0%85%E7%94%A8%E9%80%94) The Company raised **HKD 35.6 million** from a May 2021 share subscription; **HKD 7.7 million** was used for expansion, with **HKD 19.7 million** remaining for use by June 2, 2026 Use of Net Proceeds from Share Subscription (HKD Million) | Item | Net Proceeds | Unutilized Amount as at January 1, 2025 | Amount Utilized During the Reporting Period | Unutilized Amount as at June 30, 2025 | Expected Timeline for Utilization | | :--- | :--- | :--- | :--- | :--- | :--- | | Expansion of business and local presence in Hainan, Southeast Asia, and the UK | 35.6 | 27.4 | 7.7 | 19.7 | By June 2, 2026 | - There were no material changes in the use of proceeds, consistent with the Company's previously disclosed intentions[68](index=68&type=chunk) [Outlook](index=22&type=section&id=%E5%89%8D%E6%99%AF) [Prospects](index=22&type=section&id=%E5%B1%95%E6%9C%9B) Despite geopolitical tensions, the Group is optimistic about global logistics recovery, planning organic growth and market position enhancement through new verticals, e-commerce partnerships, and synergies with DP World - The Group plans to expand into the aerospace industry, having established a dedicated logistics team and providing services to the largest aviation and engineering companies in China, Singapore, and Taiwan[69](index=69&type=chunk)[70](index=70&type=chunk) - Cargo Services Express will strengthen e-commerce platform collaborations, having partnered with several globally renowned platforms to expand freight forwarding, customs clearance, and last-mile delivery services from China to South Africa, Algeria, and the UK[71](index=71&type=chunk) - The Group will enhance synergies with its controlling shareholder, **DP World**, leveraging its global network to provide more comprehensive services and gain new client referrals[72](index=72&type=chunk) [Human Resources](index=23&type=section&id=%E4%BA%BA%E5%8A%9B%E8%B3%87%E6%BA%90) [Human Resources Overview](index=23&type=section&id=%E4%BA%BA%E5%8A%9B%E8%B3%87%E6%BA%90%E6%A6%82%E6%B3%81) As of June 30, 2025, the Group employed **883 staff** with **HKD 172.0 million** in employee costs, utilizing share option and award schemes to reward contributors and providing regular training Human Resources Data | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Number of Employees | 883 | 823 | | Employee Costs (HKD Thousand) | 172,021 | 166,624 | - The Company has adopted a share option scheme and a share award scheme to reward eligible participants who contribute to the Group's business achievements[73](index=73&type=chunk)[74](index=74&type=chunk) [Purchase, Redemption or Sale of the Company's Listed Securities](index=24&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E8%B4%96%E5%9B%9E%E6%88%96%E5%87%BA%E5%94%AE%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) [Listed Securities Transaction Status](index=24&type=section&id=%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E6%83%85%E6%B3%81) During the reporting period, neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities, and the Company held **no treasury shares** as of June 30, 2025 - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[75](index=75&type=chunk) - As of June 30, 2025, the Company held **no treasury shares**[75](index=75&type=chunk) [Interim Dividend](index=24&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) [Declaration of Interim Dividend](index=24&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF%E5%AE%A3%E6%B4%BE) The Board declared an interim dividend of **HKD 0.01 per ordinary share**, totaling **HKD 3,004,890**, payable on October 30, 2025, to shareholders registered on October 8, 2025 - The Board has declared an interim dividend of **HKD 0.01 per ordinary share** for the reporting period, with a total dividend amount of **HKD 3,004,890**[76](index=76&type=chunk) - The proposed interim dividend is expected to be paid on **October 30, 2025**, to shareholders whose names appear on the Company's register of members on **October 8, 2025**[76](index=76&type=chunk) [Closure of Register of Members](index=24&type=section&id=%E6%9A%AB%E5%81%9C%E8%BE%A6%E7%90%86%E8%82%A1%E4%BB%BD%E9%81%8E%E6%88%B6%E7%99%BB%E8%A8%98) [Share Transfer Registration Arrangements](index=24&type=section&id=%E8%82%A1%E4%BB%BD%E9%81%8E%E6%88%B6%E7%99%BB%E8%A8%98%E5%AE%89%E6%8E%92) To determine interim dividend eligibility, share transfer registration will be suspended from **October 3 to October 8, 2025**, requiring shareholders to register transfers by **4:30 p.m. on October 2, 2025** - Share transfer registration will be suspended from **Friday, October 3, 2025, to Wednesday, October 8, 2025**[77](index=77&type=chunk) - To qualify for the interim dividend, all share transfer documents must be lodged with the Company's Hong Kong share registrar by **4:30 p.m. (Hong Kong time) on Tuesday, October 2, 2025**[77](index=77&type=chunk) [Corporate Governance Practices](index=24&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%B8%B8%E8%A6%8F) [Compliance with Corporate Governance Code](index=24&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%88%99%E9%81%B5%E5%AE%88%E6%83%85%E6%B3%81) The Company adopted and complied with the Corporate Governance Code in **Appendix C1 Part 2 of the Listing Rules** during the reporting period, with the Board reviewing its corporate governance - The Company has adopted the code provisions of the Corporate Governance Code set out in **Appendix C1 Part 2 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited**[78](index=78&type=chunk) - The Board has reviewed the Company's corporate governance and is satisfied that the Company has complied with the code provisions of the Corporate Governance Code during the reporting period[78](index=78&type=chunk) [Standard Code for Securities Transactions by Directors](index=25&type=section&id=%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%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) [Directors' Securities Dealing Code](index=25&type=section&id=%E8%91%A3%E4%BA%8B%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E8%A1%8C%E7%82%BA%E5%AE%88%E5%88%99) The Company established a directors' securities dealing code, with terms no less exacting than **Appendix C3 of the Listing Rules**, and all directors confirmed compliance during the reporting period - The Company has adopted its own code of conduct for directors' dealings in the Company's securities, with terms no less exacting than the **Standard Code for Securities Transactions by Directors of Listed Issuers** as set out in **Appendix C3 of the Listing Rules**[79](index=79&type=chunk) - Following specific enquiries with all Directors, they confirmed compliance with the Securities Dealing Code and the Standard Code throughout the reporting period[79](index=79&type=chunk) [Audit Committee](index=25&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) [Audit Committee Responsibilities](index=25&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83%E8%81%B7%E8%B2%AC) The Audit Committee, composed of three independent non-executive directors, reviewed the Group's unaudited consolidated financial results, including accounting principles, financial reporting, and risk management - The Audit Committee comprises three independent non-executive directors: **Mr. Lam Hing Lun, Alain** (Chairman), **Mr. Chan Chun Hung** and **Mr. Chun Chi Ming**[80](index=80&type=chunk) - The Audit Committee has reviewed the Group's unaudited consolidated financial results for the reporting period and discussed accounting principles, financial reporting systems, and risk management and internal control systems[80](index=80&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=25&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) [Announcement and Report Publication Channels](index=25&type=section&id=%E5%85%AC%E5%91%8A%E5%8F%8A%E5%A0%B1%E5%91%8A%E5%88%8A%E7%99%BC%E6%B8%A0%E9%81%93) This interim results announcement is published on the **Stock Exchange** and the Company's website; the interim report will be provided to shareholders and published on both platforms in due course - This interim results announcement is published on the **Stock Exchange** and the Company's website[81](index=81&type=chunk) - The interim report will be provided to the Company's shareholders in due course in accordance with the Listing Rules and published on the **Stock Exchange** and the Company's website[81](index=81&type=chunk) [By Order of the Board](index=25&type=section&id=%E6%89%BF%E8%91%A3%E4%BA%8B%E6%9C%83%E5%91%BD) [Board of Directors Composition](index=25&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83%E6%88%90%E5%93%A1) This announcement is issued by **Mr. Lau Shek Yau**, Chairman and Executive Director; the Board comprises five executive, one non-executive, and four independent non-executive directors - This announcement is issued by **Mr. Lau Shek Yau**, Chairman and Executive Director[82](index=82&type=chunk) - The Board comprises Executive Directors **Mr. Lau Shek Yau**, **Mr. Ngan Tim Wing**, **Ms. Chan Nga Man**, **Ms. Augusta Morandin**, and **Mr. Fabio Di Nello**; Non-executive Director **Mr. Zissis Jason Varsamidis**; and Independent Non-executive Directors **Mr. Lam Hing Lun, Alain**, **Mr. Chan Chun Hung**, **Mr. Chun Chi Ming**, and **Mr. Roussel Christophe Albert Jean**[82](index=82&type=chunk)

[Financial Performance Overview](index=2&type=section&id=%E8%B2%A1%E5%8B%99%E6%A5%AD%E7%B8%BE%E6%A6%82%E8%A6%BD) For the six months ended June 30, 2025, the company reported a net loss of RMB 122.87 million, an improvement from RMB 160.39 million in the prior year, primarily due to a significant reduction in R&D costs [Interim Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the company's net loss improved to RMB 122.87 million, driven by reduced R&D expenses Key Profit or Loss Data | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | – | – | | Other income | 986 | 4,197 | | Other gains | 2,652 | 6,221 | | Research and development costs | (98,432) | (142,494) | | Administrative expenses | (27,471) | (28,080) | | Loss before tax | (122,866) | (160,387) | | Loss for the period and attributable to owners of the Company | (122,866) | (160,387) | - Basic and diluted loss per share improved from **RMB (0.42)** in 2024 to **RMB (0.32)** in 2025[3](index=3&type=chunk) [Interim Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, total comprehensive loss narrowed to RMB 122.89 million, with minimal impact from exchange differences Key Comprehensive Income Data | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Loss for the period | (122,866) | (160,387) | | Exchange differences on translation of overseas operations | (28) | 48 | | Total comprehensive loss for the period | (122,894) | (160,339) | [Interim Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, total assets increased to RMB 692.86 million, driven by a significant rise in financial assets at fair value through profit or loss, with equity also growing due to the recent listing Key Financial Position Data | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total non-current assets | 43,768 | 44,350 | | Total current assets | 649,092 | 585,251 | | Financial assets at fair value through profit or loss | 186,792 | 3,027 | | Cash and cash equivalents | 449,072 | 569,506 | | Total current liabilities | 110,248 | 103,361 | | Total equity | 582,201 | 525,033 | [Notes to the Interim Condensed Consolidated Financial Information](index=5&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E9%99%84%E8%A8%BB) This section provides detailed notes to the interim condensed consolidated financial information, covering company details, basis of preparation, accounting policy changes, and specific financial data analysis [1. Company Information](index=5&type=section&id=1.%20%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) TransThera Biosciences (Nanjing) Co., Ltd. was established in 2014, restructured in 2021, and listed on the HKEX Main Board on June 23, 2025, focusing on pharmaceutical R&D - The company was established in Nanjing, China on April 15, 2014, and restructured into a joint stock company in July 2021[7](index=7&type=chunk) - The company was listed on the Main Board of The Stock Exchange of Hong Kong Limited on June 23, 2025[9](index=9&type=chunk) - The Group is primarily engaged in pharmaceutical product research and development[8](index=8&type=chunk) [2. Basis of Preparation](index=5&type=section&id=2.%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) The interim condensed consolidated financial information is prepared in accordance with IAS 34 and should be read in conjunction with the 2024 annual financial statements - The interim condensed consolidated financial information is prepared in accordance with International Accounting Standard 34 Interim Financial Reporting[10](index=10&type=chunk) - It should be read in conjunction with the Group’s annual consolidated financial statements for the year ended December 31, 2024[10](index=10&type=chunk) [3. Changes in Accounting Policies](index=5&type=section&id=3.%20%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96%E8%AE%8A%E5%8B%95) Accounting policies for the interim financial information are consistent with the prior year, with the adoption of IAS 21 amendment 'Lack of Exchangeability' having no impact due to the Group's convertible transaction currencies - The amendment to International Accounting Standard 21 "Lack of Exchangeability" was adopted for the first time[11](index=11&type=chunk)[12](index=12&type=chunk) - These amendments had no impact on the interim condensed consolidated financial information as the Group's transaction currencies are all convertible[12](index=12&type=chunk) [4. Operating Segment Information](index=5&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, innovative drug development, thus no further segment analysis or geographical information is presented - The Group has only one reportable operating segment: innovative drug development[13](index=13&type=chunk) - No geographical segment information is presented as almost all non-current assets are located in mainland China[14](index=14&type=chunk) [5. Other Income and Other Gains](index=6&type=section&id=5.%20%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A) For the six months ended June 30, 2025, total other income and gains decreased by 65.1% to RMB 3.6 million, primarily due to reduced bank interest income and government grants Analysis of Other Income and Other Gains | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Bank interest income | 899 | 1,432 | | Government grants | 87 | 2,765 | | Fair value gains on financial assets at fair value through profit or loss | 2,652 | 6,216 | | Net foreign exchange gains | – | 5 | | **Total** | **3,638** | **10,418** | - Other income and gains decreased by **65.1%**, primarily due to a **RMB 4.1 million** reduction in bank deposit interest and wealth management income, and a **RMB 2.7 million** decrease in government grants[60](index=60&type=chunk) [6. Other Expenses](index=6&type=section&id=6.%20%E5%85%B6%E4%BB%96%E8%B2%BB%E7%94%A8) For the six months ended June 30, 2025, other expenses increased significantly to RMB 522 thousand, primarily driven by net foreign exchange losses Analysis of Other Expenses | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net foreign exchange losses | 396 | – | | Donations | 126 | 138 | | Others | – | 11 | | **Total** | **522** | **149** | [7. Loss Before Tax](index=7&type=section&id=7.%20%E7%A8%85%E5%89%8D%E虧%E6%90%8D) For the six months ended June 30, 2025, the Group's loss before tax improved to RMB 122.87 million, influenced by reduced R&D costs and fair value gains Key Deductions for Loss Before Tax | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 1,046 | 1,568 | | Depreciation of right-of-use assets | 1,468 | 1,778 | | Amortisation of intangible assets | 136 | 136 | | Fair value gains on financial assets at fair value through profit or loss | (2,652) | (6,216) | | Professional fees | 1,958 | 1,058 | | Listing expenses | 9,880 | 11,669 | | Employee benefit expenses | 28,415 | 32,866 | | Net foreign exchange losses/(gains) | 396 | (5) | | Government grants | (87) | (2,765) | | Bank interest income | (899) | (1,432) | [8. Finance Costs](index=7&type=section&id=8.%20%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) For the six months ended June 30, 2025, finance costs, primarily lease liability interest, slightly decreased to RMB 79 thousand Analysis of Finance Costs | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest on lease liabilities | 79 | 89 | [9. Income Tax Expense](index=8&type=section&id=9.%20%E6%89%80%E5%BE%97%E7%A8%85%E8%B2%BB%E7%94%A8) For the six months ended June 30, 2025, no income tax provision was made due to operating losses across entities and unlikelihood of future taxable profits - No income tax provision was made for the six months ended June 30, 2025[24](index=24&type=chunk) - This is because the Group did not generate any taxable profits in mainland China, Hong Kong, and the United States[22](index=22&type=chunk)[23](index=23&type=chunk)[24](index=24&type=chunk) - No deferred tax assets were recognized for losses and deductible temporary differences, as it is unlikely that taxable profits will be available in the foreseeable future[24](index=24&type=chunk) [10. Dividends](index=8&type=section&id=10.%20%E8%82%A1%E6%81%AF) For the six months ended June 30, 2025, the company neither paid nor declared any dividends - For the six months ended June 30, 2025, the company neither paid nor declared any dividends[25](index=25&type=chunk) [11. Loss Per Share Attributable to Ordinary Equity Holders of the Company](index=9&type=section&id=11.%20%E6%9C%AC%E5%85%AC%E5%8F%B8%E6%99%AE%E9%80%9A%E6%AC%8A%E7%9B%8A%E6%8C%81%E6%9C%89%E4%BA%BA%E6%87%89%E4%BD%B5%E6%AF%8F%E8%82%A1%E虧%E6%90%8D) For the six months ended June 30, 2025, basic and diluted loss per share improved to RMB (0.32), with no potential dilutive ordinary shares Loss Per Share Calculation | Indicator | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Loss attributable to ordinary equity holders of the Company (RMB thousand) | (122,866) | (160,387) | | Weighted average number of ordinary shares assumed to be in issue during the year | 382,210,894 | 381,616,633 | | Loss per share (basic and diluted) (RMB) | (0.32) | (0.42) | - No adjustment has been made to the basic loss per share amounts presented for dilution, as the Group had no potentially dilutive ordinary shares in issue during the reporting period[26](index=26&type=chunk) [12. Property, Plant and Equipment](index=9&type=section&id=12.%20%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%A8%AD%E5%82%99) As of June 30, 2025, property, plant and equipment decreased by 10.3% to RMB 8.47 million, primarily due to normal depreciation, with minimal asset acquisitions and no disposals Changes in Property, Plant and Equipment | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Property, plant and equipment | 8,472 | 9,441 | - Property, plant and equipment decreased by **10.3%**, primarily due to normal depreciation of fixed assets[63](index=63&type=chunk) - For the six months ended June 30, 2025, the Group acquired assets at a cost of **RMB 77 thousand** and did not dispose of any assets[29](index=29&type=chunk) [13. Prepayments, Other Receivables and Other Assets](index=10&type=section&id=13.%20%E9%A0%90%E4%BB%98%E6%AC%BE%E9%A0%85%E3%80%81%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B3%87%E7%94%A2) As of June 30, 2025, non-current prepayments, other receivables, and other assets increased to RMB 16.86 million, mainly due to higher deductible input VAT not recoverable within one year Prepayments, Other Receivables and Other Assets | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total non-current | 16,857 | 14,866 | | Total current | 12,974 | 12,545 | - Prepayments, other receivables, and other assets in non-current assets increased by **13.4%**, primarily due to an increase in deductible input VAT not recoverable or offset within one year[65](index=65&type=chunk) [14. Trade and Other Payables](index=11&type=section&id=14.%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) As of June 30, 2025, trade payables increased by 7.3% to RMB 87.17 million, driven by R&D activities, with other payables and accrued listing fees also rising Trade and Other Payables | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade payables | 87,165 | 81,243 | | Government grants | 6,400 | 6,400 | | Accrued staff salaries, bonuses and welfare | 5,148 | 7,550 | | Accrued listing expenses | 8,488 | 4,487 | | **Total** | **107,600** | **100,198** | - Trade payables increased by **7.3%**, primarily driven by the progress of research and development activities[67](index=67&type=chunk) - Trade payables are interest-free and generally settled within one year, while other payables and accruals are unsecured, interest-free, and repayable on demand[32](index=32&type=chunk)[33](index=33&type=chunk) [Management Discussion and Analysis](index=12&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 management's detailed discussion and analysis of the company's business, operating results, financial position, and liquidity, including pipeline progress and key financial changes [Business Review](index=12&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) TransThera Biosciences is a clinical-stage innovative drug company focused on small molecule therapies for oncology, inflammation, and cardiometabolic diseases, with core product Tinengotinib showing significant progress [Overview](index=12&type=section&id=%E6%A6%82%E8%A6%BD) The company is a clinical-need-oriented innovative drug company dedicated to discovering and developing small molecule therapies for oncology, inflammation, and cardiometabolic diseases - The company is a clinical-need-oriented, registration-clinical-stage innovative drug company focused on small molecule innovative therapies for oncology, inflammation, and cardiometabolic diseases[34](index=34&type=chunk) - Its mission is to provide innovative and differentiated therapeutic solutions for global patients, driven by original technology[34](index=34&type=chunk) [Our Pipeline](index=12&type=section&id=%E6%88%91%E5%80%91%E7%9A%84%E7%AE%A1%E7%B7%9A) As of June 30, 2025, the company's pipeline includes six clinical-stage and multiple pre-clinical candidates across oncology and non-oncology, with core product Tinengotinib advancing rapidly - As of June 30, 2025, the company's main pipeline includes **six clinical-stage** and multiple preclinical-stage candidate products[34](index=34&type=chunk) - The core product, Tinengotinib (TT-00420), has potential in multiple oncology indications including cholangiocarcinoma, prostate cancer, liver cancer, breast cancer, biliary tract cancer, and pan-FGFR solid tumors[38](index=38&type=chunk) - The non-oncology pipeline includes TT-01688 (S1P1 modulator), TT-00920 (PDE9 inhibitor), TT-01025 (VAP-1 inhibitor), and TT-02332 (NLRP3 inhibitor)[40](index=40&type=chunk)[41](index=41&type=chunk) [Core Product (Tinengotinib)](index=14&type=section&id=%E6%A0%B8%E5%BF%83%E7%94%A2%E5%93%81) Tinengotinib (TT-00420) is a proprietary global multi-kinase inhibitor targeting FGFR/VEGFR, JAK, and Aurora kinases, with breakthrough and orphan drug designations, currently in global registration trials for cholangiocarcinoma and showing promising data in other indications - Tinengotinib is a proprietary, globally patented pipeline product developed by the company, targeting FGFR/VEGFR, JAK, and Aurora kinases[38](index=38&type=chunk)[42](index=42&type=chunk) - It has received China NMPA Breakthrough Therapy Designation for cholangiocarcinoma, US FDA Fast Track Designation for cholangiocarcinoma and mCRPC, FDA Orphan Drug Designation for cholangiocarcinoma, and EMA Orphan Drug Designation for biliary tract cancer[38](index=38&type=chunk)[42](index=42&type=chunk) - The cholangiocarcinoma indication is undergoing a **Phase II registration clinical trial** in China (expected to complete in H2 2025) and an international multi-center **Phase III clinical trial** in other global regions (patient enrollment expected to complete in H2 2026)[44](index=44&type=chunk)[47](index=47&type=chunk) - Monotherapy for metastatic castration-resistant prostate cancer showed good efficacy (**ORR 46%**, **DCR 85%**), with a Phase II clinical trial for combination therapy with novel hormonal agents approved and initiated in the US and China[48](index=48&type=chunk)[50](index=50&type=chunk) - Collaboration with Akeso Biopharma to explore combination therapy for hepatocellular carcinoma, with a Phase II clinical trial approved by NMPA and expected to start in H2 2025[44](index=44&type=chunk)[51](index=51&type=chunk) - Monotherapy in HR+/HER2- breast cancer patients achieved an **ORR of 50%**, and in patients who converted to TNBC, the ORR reached **60%**[52](index=52&type=chunk) [Other Oncology Pipeline Products](index=18&type=section&id=%E5%85%B6%E4%BB%96%E8%85%AB%E7%98%A4%E7%AE%A1%E7%B7%9A%E7%94%A2%E5%93%81) TT-01488 is a potential best-in-class non-covalent reversible BTK inhibitor for relapsed/refractory hematological malignancies, showing good tolerability and 57% ORR in Phase I; TT-00973 is a novel AXL/FLT3 inhibitor for AXL-overexpressing solid tumors, showing good tolerability and partial response in Phase I - TT-01488 is a potential best-in-class, non-covalent, reversible BTK inhibitor designed to overcome acquired resistance to frontline covalent BTK inhibitor therapies[38](index=38&type=chunk)[56](index=56&type=chunk) - TT-01488 is undergoing a **Phase I clinical study** in China for B-cell lymphoma, showing good tolerability and an **ORR of 57%** in 14 evaluable patients[57](index=57&type=chunk) - TT-00973 is a potential best-in-class novel AXL/FLT3 inhibitor with high activity in inhibiting AXL phosphorylation and activation in tumor cells[39](index=39&type=chunk)[57](index=57&type=chunk) - TT-00973 is undergoing a **Phase I study** for solid tumors in China, showing good tolerability and partial responses observed in some patients[57](index=57&type=chunk) [Non-Oncology Pipeline Products](index=19&type=section&id=%E9%9D%9E%E8%85%AB%E7%98%A4%E7%AE%A1%E7%B7%9A%E7%94%A2%E5%93%81) Non-oncology pipeline includes TT-01688 (S1P1 modulator for UC/AD, completed Ib/II), TT-00920 (PDE9 inhibitor for chronic heart failure, completed Phase I), and TT-01025 (VAP-1 inhibitor for NASH, completed Phase I) - TT-01688 is a highly selective oral S1P1 modulator in-licensed from LG Chem, for the treatment of ulcerative colitis (UC) and atopic dermatitis (AD)[40](index=40&type=chunk)[58](index=58&type=chunk) - TT-01688 completed its **Phase Ib clinical trial** for UC in July 2024 and its **Phase II clinical trial** for AD in January 2025[58](index=58&type=chunk) - TT-00920 is a proprietary, highly selective oral PDE9 inhibitor for chronic heart failure, which has completed **Phase I trials** in healthy subjects in China and the US[40](index=40&type=chunk)[59](index=59&type=chunk) - TT-01025 is a proprietary, irreversible VAP-1 inhibitor intended for oral treatment of NASH, which completed its **Phase I study** in healthy subjects in China in April 2022[41](index=41&type=chunk)[59](index=59&type=chunk) [Analysis of Key Items of Operating Results](index=21&type=section&id=%E7%B6%93%E7%87%9F%E6%A5%AD%E7%B8%BE%E7%9A%84%E4%B8%BB%E8%A6%81%E9%A0%85%E7%9B%AE%E5%88%86%E6%9E%90) For the six months ended June 30, 2025, the Group's other income and gains significantly decreased, while R&D costs notably reduced due to TT-00420's US clinical trials nearing completion, and administrative expenses remained stable [Other Income and Gains](index=21&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A) For the six months ended June 30, 2025, other income and gains decreased by 65.1% to RMB 3.6 million, primarily due to a RMB 4.1 million reduction in bank interest and wealth management income, and a RMB 2.7 million decrease in government grants - Other income and gains decreased by **65.1%** from **RMB 10.4 million** to **RMB 3.6 million**[60](index=60&type=chunk) - This was primarily due to a **RMB 4.1 million** reduction in bank deposit interest and wealth management income, and a **RMB 2.7 million** decrease in government grants[60](index=60&type=chunk) [Research and Development Costs](index=21&type=section&id=%E7%A0%94%E7%99%BC%E6%88%90%E6%9C%AC) For the six months ended June 30, 2025, R&D costs decreased by 30.9% to RMB 98.4 million, mainly due to a RMB 46.7 million reduction in clinical trial expenses as two US trials for TT-00420 completed major operations, while preclinical expenses increased by RMB 1.9 million - Research and development costs decreased by **30.9%** from **RMB 142.5 million** to **RMB 98.4 million**[61](index=61&type=chunk) - Clinical trial expenses decreased by **RMB 46.7 million**, mainly due to reduced clinical trial fees for the TT-00420 project, as two US clinical trials completed major operational work[62](index=62&type=chunk) - Preclinical expenses increased by **RMB 1.9 million**, primarily due to increased R&D investment in preclinical projects compared to the previous period[62](index=62&type=chunk) [Administrative Expenses](index=21&type=section&id=%E7%AE%A1%E7%90%86%E8%B2%BB%E7%94%A8) For the six months ended June 30, 2025, administrative expenses remained relatively stable, decreasing slightly by 2.2% to RMB 27.5 million - Administrative expenses decreased by **2.2%** from **RMB 28.1 million** to **RMB 27.5 million**[61](index=61&type=chunk) [Analysis of Key Items of Financial Position](index=22&type=section&id=%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E4%B8%BB%E8%A6%81%E9%A0%85%E7%9B%AE%E5%88%86%E6%9E%90) As of June 30, 2025, property, plant and equipment and right-of-use assets decreased due to depreciation/amortization, while other non-current assets rose from deductible input VAT; cash and equivalents declined due to R&D and operating expenses, trade payables increased with R&D progress, and share capital grew significantly from the Hong Kong IPO [Property, Plant and Equipment](index=22&type=section&id=%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%A8%AD%E5%82%99) As of June 30, 2025, property, plant and equipment decreased by 10.3% to RMB 8.5 million, primarily due to normal depreciation of fixed assets - Property, plant and equipment decreased by **10.3%** from **RMB 9.4 million** to **RMB 8.5 million**[63](index=63&type=chunk) - This was primarily due to normal depreciation of fixed assets[63](index=63&type=chunk) [Right-of-Use Assets](index=22&type=section&id=%E4%BD%BF%E7%94%A8%E6%AC%8A%E8%B3%87%E7%94%A2) As of June 30, 2025, right-of-use assets decreased by 7.6% to RMB 17.9 million, primarily due to normal amortization of these assets - Right-of-use assets decreased by **7.6%** from **RMB 19.3 million** to **RMB 17.9 million**[64](index=64&type=chunk) - This was primarily due to the normal amortization of right-of-use assets[64](index=64&type=chunk) [Other Non-Current Assets](index=22&type=section&id=%E5%85%B6%E4%BB%96%E9%9D%9E%E6%B5%81%E5%8B%95%E8%B3%87%E7%94%A2) As of June 30, 2025, other non-current assets increased by 13.4% to RMB 16.9 million, mainly due to an increase in deductible input VAT not recoverable within one year - Other non-current assets increased by **13.4%** from **RMB 14.9 million** to **RMB 16.9 million**[65](index=65&type=chunk) - This was primarily due to an increase in deductible input VAT that cannot be recovered or offset within one year[65](index=65&type=chunk) [Cash and Cash Equivalents](index=22&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 decreased by 21.1% to RMB 449.1 million, primarily due to purchases of R&D services and operating expenditures - Cash and cash equivalents decreased by **21.1%** from **RMB 569.5 million** to **RMB 449.1 million**[66](index=66&type=chunk) - This was primarily due to purchases of R&D services and operating expenditures[66](index=66&type=chunk) [Trade Payables](index=22&type=section&id=%E8%B2%BF%E6%98%93%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2025, trade payables increased by 7.3% to RMB 87.2 million, primarily driven by the progress of R&D activities - Trade payables increased by **7.3%** from **RMB 81.2 million** to **RMB 87.2 million**[67](index=67&type=chunk) - This was primarily driven by the progress of our research and development activities[67](index=67&type=chunk) [Lease Liabilities](index=22&type=section&id=%E7%A7%9F%E8%B3%83%E8%B2%A0%E5%82%B5) As of June 30, 2025, lease liabilities decreased by 30.0% to RMB 3.1 million, primarily due to lease payments for right-of-use assets during the period - Lease liabilities decreased by **30.0%** from **RMB 4.4 million** to **RMB 3.1 million**[68](index=68&type=chunk) - This was primarily due to lease payments for right-of-use assets during the period[68](index=68&type=chunk) [Share Capital](index=23&type=section&id=%E8%82%A1%E6%9C%AC) As of June 30, 2025, share capital increased by 4.0% to RMB 396.9 million, primarily due to the company's listing on the HKEX Main Board on June 23, 2025, with a public offering of 15,281,000 shares - Share capital increased by **4.0%** from **RMB 381.6 million** to **RMB 396.9 million**[69](index=69&type=chunk) - This was primarily due to the company's listing on the Main Board of The Stock Exchange of Hong Kong Limited on June 23, 2025, with a public offering of **15,281,000 shares**[69](index=69&type=chunk) [Liquidity and Financial Resources](index=23&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) The Group primarily uses cash for R&D services and operating expenses, maintaining sufficient cash and equivalents, totaling RMB 635.86 million as of June 30, 2025, with a debt-to-asset ratio improving to 16.0% and no bank loans [Liquidity Overview](index=23&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E6%A6%82%E8%A6%BD) The Group primarily uses cash for R&D services and operating expenses, maintaining sufficient cash and cash equivalents, which totaled RMB 635.86 million as of June 30, 2025 - Cash is primarily used for purchasing R&D services and operating expenditures[70](index=70&type=chunk) - As of June 30, 2025, cash and cash equivalents, along with wealth management products, totaled **RMB 635.86 million**[70](index=70&type=chunk) [Gearing Ratio](index=23&type=section&id=%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E6%AF%94%E7%8E%87) As of June 30, 2025, the gearing ratio improved to 16.0% from 16.6% as of December 31, 2024 - As of June 30, 2025, the gearing ratio was **16.0%** (December 31, 2024: **16.6%**)[71](index=71&type=chunk) [Exchange Rate Fluctuation Risk](index=23&type=section&id=%E5%BD%99%E7%8E%87%E6%B3%A2%E5%8B%95%E9%A2%A8%E9%9A%AA) The Group faces transactional currency risks but currently has no hedging policy; management monitors these risks and will consider hedging if necessary, with no significant foreign exchange risk as of June 30, 2025 - The Group faces certain transactional currency risks and currently has no foreign exchange hedging policy[72](index=72&type=chunk) - Management monitors foreign exchange risks and will consider hedging when necessary[72](index=72&type=chunk) - As of June 30, 2025, the Group had no significant foreign exchange risk arising from its operations[72](index=72&type=chunk) [Bank Loans and Other Borrowings](index=23&type=section&id=%E9%8A%80%E8%A1%8C%E8%B2%B8%E6%AC%BE%E5%8F%8A%E5%85%B6%E4%BB%96%E5%80%9F%E6%AC%BE) As of June 30, 2025, the Group had no bank loans or other forms of borrowings - As of June 30, 2025, the Group had no bank loans or other forms of borrowings[73](index=73&type=chunk) [Other Information](index=24&type=section&id=%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) During the reporting period, the Group had no pledged assets, significant investments, acquisitions, disposals, or material contingent liabilities; future major investment plans are disclosed in the prospectus [Pledged Assets](index=24&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, the Group had no pledged assets - As of June 30, 2025, the Group had no pledged assets[74](index=74&type=chunk) [Material Investments / Material Acquisitions and Disposals](index=24&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E2%88%95%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE) Except as disclosed in the Management Discussion and Analysis, the Group made no material investments or significant acquisitions and disposals of subsidiaries during the reporting period - The Group made no material investments or significant acquisitions and disposals of subsidiaries during the reporting period[75](index=75&type=chunk) [Contingent Liabilities](index=24&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[76](index=76&type=chunk) [Future Plans for Material Investments and Capital Assets](index=24&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2%E7%9A%84%E6%9C%AA%E4%BE%86%E8%A8%88%E5%8A%83) Except as disclosed in the 'Future Plans and Use of Proceeds' section of the prospectus, the Group has no major investment and capital asset plans as of the date of this announcement - Except as disclosed in the "Future Plans and Use of Proceeds" section of the prospectus, the Group has no major investment and capital asset plans as of the date of this announcement[77](index=77&type=chunk) [Other Information](index=25&type=section&id=%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) This section provides other important information on employee and remuneration policies, interim dividends, litigation and compliance, securities transactions, post-balance sheet events, use of IPO proceeds, and corporate governance [Employees and Remuneration Policy](index=25&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June 30, 2025, the Group had 121 employees, with 76.9% in R&D; total employee benefits expenses were RMB 36.32 million, with remuneration based on market levels, government policies, and individual performance, in strict compliance with Chinese law Employee Function Distribution | Function | Number | Percentage | | :--- | :--- | :--- | | Research and Development | 93 | 76.9% | | General and Administrative | 28 | 23.1% | | **Total** | **121** | **100.0%** | - Total employee benefit expenses for the reporting period were **RMB 36.32 million**[78](index=78&type=chunk) - Remuneration and benefits are determined based on market levels, government policies, and individual performance, including salaries, bonuses, and equity incentives, in strict compliance with Chinese law[78](index=78&type=chunk) [Interim Dividend](index=25&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The company will not declare any interim dividend for the six months ended June 30, 2025 - The company will not declare any interim dividend for the six months ended June 30, 2025[79](index=79&type=chunk) [Litigation and Compliance](index=25&type=section&id=%E8%A8%B4%E8%A8%9F%E5%8F%8A%E5%90%88%E8%A6%8F) During the reporting period, the Group had no material breaches of laws and regulations or non-compliance events that could significantly adversely affect its business, financial position, or operating results - During the reporting period, the Group had no material breaches of laws and regulations, nor any non-compliance events that the directors believed could materially adversely affect its business, financial position, or operating results as a whole[80](index=80&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=25&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) For the six months ended June 30, 2025, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities on the Stock Exchange, and the company held no treasury shares - For the six months ended June 30, 2025, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities on the Stock Exchange[81](index=81&type=chunk) - As of June 30, 2025, the company held no treasury shares[81](index=81&type=chunk) [Material Post-Balance Sheet Events](index=26&type=section&id=%E9%87%8D%E5%A4%A7%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) Subsequent to June 30, 2025, and up to the date of this announcement, the Group has not undertaken any material post-balance sheet events - Subsequent to June 30, 2025, and up to the date of this announcement, the Group has not undertaken any material post-balance sheet events[82](index=82&type=chunk) [Use of Net Proceeds from Listing](index=26&type=section&id=%E4%B8%8A%E5%B8%82%E6%89%80%E5%BE%97%E6%AC%BE%E9%A0%85%E6%B7%A8%E9%A1%8D%E7%94%A8%E9%80%94) The company's H-shares listed on June 23, 2025, raising approximately HKD 161.3 million net proceeds, primarily allocated (84%) to Tinengotinib's multi-regional Phase III clinical trials for cholangiocarcinoma, with the remainder for working capital and general corporate purposes (10%); all proceeds remained unutilized as of June 30, 2025 - The global offering received net proceeds of approximately **HKD 161.3 million**[83](index=83&type=chunk) Intended Use of Net Proceeds from Listing | Use | Percentage of Net Proceeds | Net Proceeds (HKD million) | Amount Utilized as of June 30, 2025 (HKD million) | | :--- | :--- | :--- | :--- | | Tinengotinib cholangiocarcinoma multi-regional registration Phase III clinical trial (Europe) | 42% | 68.5 | 0 | | Tinengotinib cholangiocarcinoma multi-regional registration Phase III clinical trial (United States) | 26% | 41.2 | 0 | | Tinengotinib cholangiocarcinoma multi-regional registration Phase III clinical trial (South Korea) | 8% | 13.1 | 0 | | Tinengotinib cholangiocarcinoma multi-regional registration Phase III clinical trial (Taiwan) | 8% | 12.4 | 0 | | Tinengotinib cholangiocarcinoma multi-regional registration Phase III clinical trial (United Kingdom) | 6% | 10.1 | 0 | | Working capital and other general corporate purposes | 10% | 16.1 | 0 | | **Total** | **100%** | **161.3** | **0** | - As of June 30, 2025, all net proceeds remained unutilized[84](index=84&type=chunk) [Corporate Governance](index=27&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) The company is committed to high corporate governance standards; the Chairman and CEO roles are combined, which the Board believes ensures leadership consistency and efficiency, with a diverse and experienced board ensuring balanced power; the company has complied with all CG Code provisions since listing, except for the combined roles - The company is committed to achieving high standards of corporate governance, implementing effective internal control measures, and enhancing the Board's transparency and accountability to all shareholders[85](index=85&type=chunk) - The roles of Chairman and Chief Executive Officer are combined and held by Dr. Wu, which deviates from Code Provision C.2.1 of the Corporate Governance Code, but the Board believes this is beneficial for ensuring leadership consistency and efficiency[85](index=85&type=chunk) - The Board comprises two executive directors, two non-executive directors, and three independent non-executive directors, ensuring independence[85](index=85&type=chunk) - Except for the aforementioned disclosure, the company has complied with all code provisions under the Corporate Governance Code from the listing date up to June 30, 2025[85](index=85&type=chunk) [Compliance with the Model Code](index=27&type=section&id=%E9%81%B5%E5%AE%88%E3%80%8A%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87%E3%80%8B) The company adopted the Model Code as its code of conduct for directors' and supervisors' securities transactions, with all confirming full compliance during the reporting period - The company has adopted the Model Code as its own code of conduct for securities transactions by its directors and supervisors[87](index=87&type=chunk) - All directors and supervisors have each confirmed full compliance with the required standards set out in the Model Code during the reporting period[87](index=87&type=chunk) [Audit Committee Review](index=27&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83%E5%AF%A9%E9%96%B1) The Audit Committee reviewed the Group's unaudited interim condensed consolidated financial statements for the six months ended June 30, 2025, discussing matters with senior management and Ernst & Young, who reviewed the statements per HKICPA standards - The Audit Committee, comprising three independent non-executive directors, has reviewed the Group's unaudited interim condensed consolidated financial statements for the six months ended June 30, 2025[88](index=88&type=chunk) - The Audit Committee discussed matters such as accounting policies and practices, and internal controls with members of senior management and the company's auditor, Ernst & Young[88](index=88&type=chunk) - The company's auditor, Ernst & Young, has reviewed the financial statements in accordance with Hong Kong Standard on Review Engagements 2410 issued by the Hong Kong Institute of Certified Public Accountants[88](index=88&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=28&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 announcement is published on the HKEX and company websites; the interim report for the six months ended June 30, 2025, will be dispatched to shareholders requesting printed corporate communications and published on the aforementioned websites [Publication of Interim Results Announcement and Interim Report](index=28&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 announcement is published on the HKEX and company websites; the interim report for the six months ended June 30, 2025, will be dispatched to shareholders requesting printed corporate communications and published on the aforementioned websites - This announcement has been published on the HKEX website (www.hkexnews.hk) and the company's website (www.transthera.com)[89](index=89&type=chunk) - The interim report for the six months ended June 30, 2025, will be dispatched to shareholders who have requested printed corporate communications and will be published on the aforementioned websites in due course[89](index=89&type=chunk) [Definitions](index=28&type=section&id=%E9%87%8B%E7%BE%A9) This section provides definitions for key terms used in this announcement to ensure consistent understanding of the report content [Definitions](index=28&type=section&id=%E9%87%8B%E7%BE%A9) This section provides definitions for key terms used in this announcement to ensure consistent understanding of the report content - This section defines key terms used in this announcement, such as "Articles of Association", "Audit Committee", and "Core Product"[90](index=90&type=chunk)[91](index=91&type=chunk)[92](index=92&type=chunk) - "Core Product" refers to the company's core product, Tinengotinib[90](index=90&type=chunk) - "Listing Date" refers to June 23, 2025, the date on which the H shares were listed on the Main Board of the Stock Exchange of Hong Kong Limited[91](index=91&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 之 內 容 概 不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 就 因 本 公 告 全部或任何部份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 * 僅 供 識 別 – 1 – 本 公 告 的 資 料 乃 遵 照《香 港 聯 合 交 易 所 有 限 公 司 的GEM證 券 上 市 規 則》而 刊 載， 旨 在 提 供 有 關 本 公 司 的 資 料；各 董 事 願 就 本 公 告 的 資 料 共 同 及 個 別 地 承 擔 全 部 責 任。董 事 在 作 出 一 切 合 理 查 詢 後，確 認 就 彼 等 所 知 及 所 信，本 公 告 所 載 資 料 在 各 重 要 方 面 均 屬 準 確 完 備，沒 有 誤 導 或 欺 詐 成 分，且 並 無 遺 漏 任 何 其 他 事 項，足 以 令 致 本 文 件 或 其 所 載 任 何 陳 述 產 生 誤 導。 Zhejiang RuiYuan Intelligent Control T ...

[Financial Summary](index=1&type=section&id=Financial%20Summary) [Condensed Consolidated Financial Summary](index=1&type=section&id=Condensed%20Consolidated%20Financial%20Summary) The Group's revenue increased by 8.8% to RMB 133,740 thousand, but gross profit decreased by 2.7%, and loss for the period widened by 16.6%, while total assets and equity declined and liabilities slightly rose Condensed Consolidated Financial Summary for the Six Months Ended June 30, 2025 | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | Year-on-year change (%) | | :--- | :--- | :--- | :--- | | Revenue | 133,740 | 122,905 | 8.8% | | Gross Profit | 24,066 | 24,725 | -2.7% | | Loss Before Tax | (64,609) | (55,403) | 16.6% (Loss widened) | | Loss for the Period | (64,633) | (55,418) | 16.6% (Loss widened) | Balance Sheet (Period-end) | Indicator | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 815,909 | 882,822 | -7.6% | | Total Liabilities | 145,628 | 143,384 | 1.6% | | Total Equity | 670,281 | 739,438 | -9.4% | [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) [Details of Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Details%20of%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) Revenue increased, but higher cost of sales, increased fair value losses on equity investments, and rising operating expenses led to a decline in gross profit and a widened loss for the period Key Data from Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | Year-on-year change (%) | | :--- | :--- | :--- | :--- | | Revenue | 133,740 | 122,905 | 8.8% | | Cost of sales and services | (109,674) | (98,180) | 11.7% | | Gross Profit | 24,066 | 24,725 | -2.7% | | Other income and gains | 3,645 | 5,868 | -37.9% | | Fair value changes of equity investments at fair value through profit or loss | (18,218) | (4,262) | 327.5% (Loss widened) | | Selling and distribution expenses | (9,672) | (8,002) | 20.9% | | Administrative expenses | (23,728) | (22,476) | 5.6% | | Research and development expenses | (27,627) | (37,648) | -26.6% | | Loss Before Tax | (64,609) | (55,403) | 16.6% (Loss widened) | | Loss for the Period | (64,633) | (55,418) | 16.6% (Loss widened) | | Basic and diluted loss per share (RMB cents) | (6.86) | (6.67) | 2.8% (Loss widened) | [Condensed Consolidated Statement of Financial Position](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) [Details of Condensed Consolidated Statement of Financial Position](index=5&type=section&id=Details%20of%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) Both non-current and current assets decreased, particularly intangible assets and cash, while current liabilities increased due to trade payables and consideration payable, despite reduced bank borrowings, resulting in an overall decline in net assets and total equity Key Data from Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | **Non-current Assets** | | | | | Intangible assets | 89,297 | 100,169 | -10.9% | | Investment in an associate | 4,741 | 6,369 | -25.6% | | Equity investments at fair value through profit or loss | 17,600 | 23,438 | -24.9% | | Total Non-current Assets | 195,228 | 214,434 | -9.0% | | **Current Assets** | | | | | Trade receivables | 172,333 | 159,087 | 8.3% | | Contract assets | 130,503 | 108,479 | 20.3% | | Bank balances and cash | 279,505 | 346,805 | -19.5% | | Total Current Assets | 620,681 | 668,388 | -7.1% | | **Current Liabilities** | | | | | Trade payables | 81,406 | 60,856 | 33.8% | | Interest-bearing bank borrowings | 10,000 | 20,000 | -50.0% | | Consideration payable | 19,424 | – | Newly added | | Contingent consideration | – | 21,000 | Removed | | Total Current Liabilities | 137,017 | 133,861 | 2.4% | | Net Assets | 670,281 | 739,438 | -9.4% | | Total Equity | 670,281 | 739,438 | -9.4% | [Notes to the Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) [1. General Information](index=7&type=section&id=1.%20General%20Information) Newlink Technology, incorporated in the Cayman Islands in 2019 and listed in Hong Kong in 2021, primarily engages in software development and maintenance in China, with its ultimate beneficial owner being Executive Director Mr. Zhai Shuchun - The company was incorporated in the Cayman Islands as an exempted company on November 8, 2019, and listed on the Main Board of the Hong Kong Stock Exchange on January 6, 2021[12](index=12&type=chunk) - The Group is principally engaged in software development and maintenance business in China[13](index=13&type=chunk) - The ultimate beneficial owner of the Company is Mr. Zhai Shuchun, who is an executive Director of the Company[13](index=13&type=chunk) [2. Basis of Preparation](index=7&type=section&id=2.%20Basis%20of%20Preparation) Interim financial information is prepared under HKAS 34 and Listing Rules, with consistent accounting policies and no material impact from new/revised HKFRSs effective January 1, 2025 - The interim condensed consolidated financial information has been prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of Appendix D2 to the Rules Governing the Listing of Securities on the Stock Exchange[14](index=14&type=chunk) - The adoption of new/revised HKFRSs (such as HKAS 21 (Amendment) Lack of Exchangeability) has not resulted in any material changes to the Group's accounting policies and reported amounts for the current and prior periods[15](index=15&type=chunk) - The Directors anticipate that the adoption of new/revised HKFRSs in the future will not have any material impact on the interim condensed consolidated financial statements[16](index=16&type=chunk) [3. Revenue and Segment Information](index=8&type=section&id=3.%20Revenue%20and%20Segment%20Information) The Group operates as a single IT solution services segment in China, with a single customer contributing over 10% of revenue, and software development services as the primary revenue source, growing by 13.3% - The Group's operating activities are attributable to a single operating and reportable segment of providing IT solution services primarily in China[17](index=17&type=chunk) - Total revenue of approximately **RMB 65,310,000** (2024: approximately RMB 60,993,000) was derived from a single customer which accounted for over **10%** of the Group's total revenue[18](index=18&type=chunk) Disaggregated Revenue Information (by type of goods or services) | Type of goods or services | 2025 (RMB '000) | 2024 (RMB '000) | Year-on-year change (%) | | :--- | :--- | :--- | :--- | | Software development services | 118,661 | 104,769 | 13.3% | | Technology and maintenance services | 12,839 | 13,839 | -7.2% | | Standard software sales | 2,240 | 4,297 | -47.9% | | Total revenue from contracts with customers | 133,740 | 122,905 | 8.8% | [4. Other Income and Gains](index=9&type=section&id=4.%20Other%20Income%20and%20Gains) Total other income and gains decreased by 37.9% to RMB 3,645 thousand, primarily due to a significant reduction in bank interest income Details of Other Income and Gains | Item | 2025 (RMB '000) | 2024 (RMB '000) | Year-on-year change (%) | | :--- | :--- | :--- | :--- | | Bank interest income | 1,822 | 4,674 | -61.0% | | VAT refunds and other tax subsidies | 1,018 | 787 | 29.3% | | Others | 805 | 407 | 97.8% | | Total | 3,645 | 5,868 | -37.9% | [5. Finance Costs](index=10&type=section&id=5.%20Finance%20Costs) Finance costs decreased by 49.5% to RMB 539 thousand, mainly due to reduced interest expenses on bank borrowings and lease liabilities Details of Finance Costs | Item | 2025 (RMB '000) | 2024 (RMB '000) | Year-on-year change (%) | | :--- | :--- | :--- | :--- | | Interest expense on interest-bearing bank borrowings | 194 | 352 | -44.9% | | Interest on lease liabilities | 345 | 715 | -51.7% | | Total | 539 | 1,067 | -49.5% | [6. Loss Before Tax](index=10&type=section&id=6.%20Loss%20Before%20Tax) Loss before tax widened by 16.6% to RMB 64,609 thousand, influenced by increased cost of sales, reduced R&D expenses, higher employee benefits, and intangible asset amortization Key Components of Loss Before Tax | Item | 2025 (RMB '000) | 2024 (RMB '000) | Year-on-year change (%) | | :--- | :--- | :--- | :--- | | Cost of sales and services | 109,674 | 98,180 | 11.7% | | Research and development expenses | 27,627 | 37,648 | -26.6% | | Employee benefit expenses | 80,083 | 77,222 | 3.7% | | Amortization of intangible assets | 23,698 | 25,871 | -8.4% | | Expected credit loss provision for trade receivables | 10,314 | 11,128 | -7.3% | | Loss Before Tax | (64,609) | (55,403) | 16.6% (Loss widened) | - Amortization of deferred development costs has been classified as research and development expenses and included in amortization of intangible assets[23](index=23&type=chunk) [7. Income Tax Expense](index=11&type=section&id=7.%20Income%20Tax%20Expense) Income tax expense increased to RMB 24 thousand, with PRC operations subject to statutory or preferential rates, while Cayman Islands and Hong Kong entities are exempt or have no taxable profits Income Tax Expense | Item | 2025 (RMB '000) | 2024 (RMB '000) | Year-on-year change (%) | | :--- | :--- | :--- | :--- | | Current income tax: PRC Enterprise Income Tax | 24 | 15 | 60.0% | | Income tax expense | 24 | 15 | 60.0% | - The Company was incorporated in the Cayman Islands as an exempted company and is not subject to income tax[25](index=25&type=chunk) - The Group's PRC operations' income tax provision is subject to a statutory tax rate of **25%**, except for certain subsidiaries that have obtained "High and New Technology Enterprise" qualifications and are subject to a preferential tax rate of **15%**[27](index=27&type=chunk) [8. Dividends](index=12&type=section&id=8.%20Dividends) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025, consistent with the prior period - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 (June 30, 2024: nil)[30](index=30&type=chunk) [9. Loss Per Share](index=12&type=section&id=9.%20Loss%20Per%20Share) Basic and diluted loss per share widened to RMB 6.86 cents, primarily due to an increased loss attributable to owners of the Company Details of Loss Per Share Calculation | Item | 2025 (RMB '000/Number of shares) | 2024 (RMB '000/Number of shares) | | :--- | :--- | :--- | | Loss for the period attributable to owners of the Company used in the calculation of basic and diluted loss per share | (64,378) | (55,226) | | Weighted average number of ordinary shares used in the calculation of basic and diluted loss per share | 937,864,480 | 827,361,004 | | Basic and diluted loss per share | RMB cents (6.86) | RMB cents (6.67) | - The Company had no potential dilutive ordinary shares outstanding for the six months ended June 30, 2025 and 2024[32](index=32&type=chunk) [10. Property and Equipment](index=13&type=section&id=10.%20Property%20and%20Equipment) Cost of additions to property and equipment significantly increased to RMB 298 thousand, primarily for electronic equipment, furniture, and leasehold improvements - For the six months ended June 30, 2025, the Group's cost of additions to property and equipment was approximately **RMB 298,000** (June 30, 2024: approximately RMB 15,000)[35](index=35&type=chunk) [11. Intangible Assets](index=13&type=section&id=11.%20Intangible%20Assets) Intangible asset additions were RMB 12,826 thousand, with amortization of RMB 23,698 thousand, and deferred development costs not yet available for use increased, but no material adverse changes were identified Changes in Intangible Assets | Item | June 30, 2025 (RMB '000) | June 30, 2024 (RMB '000) | | :--- | :--- | :--- | | Additions | 12,826 | 14,078 | | Amortization | 23,698 | 25,871 | Period-end Data | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Deferred development costs not yet available for use | 25,284 | 22,008 | - The Directors of the Company have not identified any material adverse changes in the intangible asset related items corresponding to deferred development costs not yet available for use for the six months ended June 30, 2025, compared to the year ended December 31, 2024[36](index=36&type=chunk) [12. Trade Receivables](index=13&type=section&id=12.%20Trade%20Receivables) Net trade receivables increased by 8.3% to RMB 172,333 thousand, with higher expected credit loss provisions and an increase in balances over 3 years Trade Receivables and Provisions | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Gross trade receivables | 227,525 | 203,965 | 11.5% | | Less: Expected credit loss provision | (55,192) | (44,878) | 23.0% | | Net trade receivables | 172,333 | 159,087 | 8.3% | Ageing Analysis of Trade Receivables (net of provisions) | Ageing | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Within 90 days | 50,746 | 28,412 | | 91 to 180 days | 9,361 | 9,475 | | 181 to 365 days | 29,936 | 38,490 | | 1 to 2 years | 46,994 | 39,232 | | 2 to 3 years | 20,576 | 31,737 | | Over 3 years | 14,720 | 11,741 | | Total | 172,333 | 159,087 | [13. Contract Assets](index=14&type=section&id=13.%20Contract%20Assets) Net contract assets increased by 20.2% to RMB 131,179 thousand, with current assets forming the largest portion and corresponding increases in expected credit loss provisions Contract Assets and Provisions | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Gross contract assets | 132,196 | 110,009 | 20.2% | | Less: Expected credit loss provision | (1,017) | (854) | 19.1% | | Net contract assets | 131,179 | 109,155 | 20.2% | | Classified as current assets | 130,503 | 108,479 | 20.3% | | Classified as non-current assets | 676 | 676 | 0.0% | [14. Prepayments, Deposits and Other Receivables](index=15&type=section&id=14.%20Prepayments,%20Deposits%20and%20Other%20Receivables) Total prepayments, deposits, and other receivables slightly increased to RMB 21,459 thousand, with growth in the current asset portion Details of Prepayments, Deposits and Other Receivables | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Prepayments | 9,477 | 9,622 | -1.5% | | Rental deposits | 1,305 | 1,580 | -17.4% | | Deposits and other receivables | 10,722 | 9,132 | 17.4% | | Less: Expected credit loss provision | (45) | (50) | -10.0% | | Total | 21,459 | 20,284 | 5.8% | | Classified as current assets | 13,672 | 12,435 | 9.9% | | Classified as non-current assets | 7,787 | 7,849 | -0.8% | [15. Trade Payables](index=15&type=section&id=15.%20Trade%20Payables) Total trade payables significantly increased by 33.8% to RMB 81,406 thousand, driven by a notable rise in short-term payables Ageing Analysis of Trade Payables | Ageing | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Within 90 days | 51,035 | 18,959 | | 91 to 180 days | 384 | 286 | | 181 to 365 days | 4,412 | 16,396 | | 1 to 2 years | 7,125 | 7,995 | | Over 2 years | 18,450 | 17,220 | | Total | 81,406 | 60,856 | - Trade payables are non-interest bearing and are generally settled within 180 days[40](index=40&type=chunk) [16. Other Payables and Accrued Expenses](index=16&type=section&id=16.%20Other%20Payables%20and%20Accrued%20Expenses) Total other payables and accrued expenses significantly decreased by 46.9% to RMB 6,821 thousand from RMB 12,835 thousand at year-end 2024, primarily due to reductions in other payables and accrued staff costs Details of Other Payables and Accrued Expenses | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Other payables | 42 | 1,795 | -97.7% | | Accrued staff costs | 286 | 924 | -69.0% | | Other tax payables | 6,493 | 10,116 | -35.8% | | Total | 6,821 | 12,835 | -46.9% | [17. Interest-bearing Bank Borrowings](index=16&type=section&id=17.%20Interest-bearing%20Bank%20Borrowings) Interest-bearing bank borrowings decreased by 50% to RMB 10,000 thousand from RMB 20,000 thousand at year-end 2024, with all unsecured loans maturing in 2026 at floating annual interest rates between 3.5% and 3.6% Details of Interest-bearing Bank Borrowings | Item | June 30, 2025 (RMB '000) | Effective interest rate (%) | Maturity date | | :--- | :--- | :--- | :--- | | Bank loans－unsecured | 10,000 | 3.5-3.6 | 2026 | Comparative Data | Item | December 31, 2024 (RMB '000) | Effective interest rate (%) | Maturity date | | :--- | :--- | :--- | :--- | | Bank loans－unsecured | 20,000 | 3.85 | 2025 | [18. Share Capital](index=16&type=section&id=18.%20Share%20Capital) Authorized share capital comprised 50 billion ordinary shares of US$0.000001 each, with 943,817,280 issued and fully paid shares totaling RMB 7 thousand, consistent with year-end 2024 Details of Share Capital | Item | June 30, 2025 (Number of shares) | June 30, 2025 (RMB '000) | | :--- | :--- | :--- | | Authorized: Ordinary shares of US$0.000001 each | 50,000,000,000 | – | | Issued and fully paid: At period-end | 943,817,280 | 7 | Comparative Data | Item | December 31, 2024 (Number of shares) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Issued and fully paid: At period-end | 943,817,280 | 7 | | New shares issued (2024) | 157,302,880 | 2 | [Business Overview and Review](index=17&type=section&id=Business%20Overview%20and%20Review) The Group navigated complex economic challenges in H1 2025, achieving resilient growth through strategic focus on core capabilities, risk prevention, market expansion, and operational efficiency, with revenue increasing by 8.8% [Overview](index=17&type=section&id=Overview) Newlink Technology is a leading technology-driven IT solution service provider in China, specializing in AI and big data analytics applications across finance, healthcare, and transportation, offering comprehensive solutions like RPA, smart campus, and medical big data management - Newlink Technology is a leading technology-driven IT solution service provider in China, based on self-developed software products[42](index=42&type=chunk) - The company has long focused on IT solutions centered on advanced innovative technologies such as artificial intelligence and big data analytics, serving customers in specific industries like finance, healthcare, transportation, logistics, education, and energy, as well as general industries[42](index=42&type=chunk) - The Group provides scenario-based comprehensive solutions such as RPA robotic process automation, smart campus, intelligent management of healthcare big data, and deep semantic analysis and risk prevention based on large models[42](index=42&type=chunk) [Business Review](index=17&type=section&id=Business%20Review) Facing complex economic challenges in H1 2025, Newlink Technology focused on core capabilities, risk prevention, and strategic initiatives in market, revenue, cost, innovation, and governance, achieving resilient business growth - For the first half of 2025, global economic operations faced complex and severe challenges, with the company's operating environment affected by multiple pressures[43](index=43&type=chunk) - The Group's management actively responded by focusing on core capability building and risk prevention, achieving total revenue of **RMB 133.7 million**, a **year-on-year increase of 8.8%**, breaking through seasonal business constraints[43](index=43&type=chunk) - The company continued to deeply cultivate the domestic market, increased investment in new product R&D and marketing innovation, and steadily expanded into the Asia-Pacific regional market centered in Hong Kong[43](index=43&type=chunk) [Operating Environment and Response Strategies](index=17&type=section&id=Operating%20Environment%20and%20Response%20Strategies) Amidst rising global costs, debt risks, and geopolitical tensions, coupled with unstable domestic demand, Newlink Technology focused on core capabilities and risk prevention, expanding into Asia-Pacific and achieving resilient growth - Global costs are rigidly rising, debt risks and financial environments are tightening, protectionism and geopolitical risks are escalating, and the foundation for domestic effective demand recovery remains unstable[43](index=43&type=chunk) - The Group's management actively responded by focusing on core capability building and risk prevention, continuously deepening its presence in the domestic market, and steadily expanding into the Asia-Pacific regional market centered in Hong Kong[43](index=43&type=chunk) - Despite sales pressure, the Group achieved total revenue of **RMB 133.7 million** during the reporting period, a **year-on-year increase of 8.8%**[43](index=43&type=chunk) [Revenue Structure and Performance](index=18&type=section&id=Revenue%20Structure%20and%20Performance) IT solution services contributed all revenue in H1 2025, with software development services growing by 13.3% to RMB 118.7 million as the core, while technology and maintenance services and standard software sales both declined - In the first half of 2025, all of the Group's revenue was derived from IT solution services business[44](index=44&type=chunk) 2025 H1 Revenue Structure | Service Type | 2025 H1 Revenue (RMB million) | 2024 H1 Revenue (RMB million) | Year-on-year change (%) | | :--- | :--- | :--- | :--- | | Software development services | 118.7 | 104.8 | 13.3% | | Technology and maintenance services | 12.8 | 13.8 | -7.2% | | Standard software sales | 2.2 | 4.3 | -48.8% | [Cost Control and Operational Resilience](index=18&type=section&id=Cost%20Control%20and%20Operational%20Resilience) Despite strict cost control and procurement optimization, gross profit decreased by 2.4% to RMB 24.1 million, with gross margin falling to 18.0%, and loss widened due to increased fair value losses on equity investments and higher operating expenses - The Group strictly controlled various expenses, strengthened rigid budget constraints, and offset rising cost pressures by optimizing procurement strategies, strengthening diversified supply chain layouts, and refining inventory management[44](index=44&type=chunk) - Gross profit recorded during the reporting period was **RMB 24.1 million**, a slight **year-on-year decrease of 2.4%**, with gross margin decreasing from **20.1% to 18.0%**[44](index=44&type=chunk)[54](index=54&type=chunk) - Loss for the period attributable to owners of the Company was **RMB 64.4 million**, an increase of **RMB 9.2 million** compared to the same period last year, mainly due to the combined impact of increased fair value losses on equity investments at fair value through profit or loss, higher selling and distribution expenses, and reduced R&D expenses[44](index=44&type=chunk) [Innovation and Digital Transformation](index=18&type=section&id=Innovation%20and%20Digital%20Transformation) The Group prioritizes key technological breakthroughs and core product upgrades, leveraging advanced technologies to enhance R&D, procurement, marketing, and management, thereby improving decision efficiency and customer responsiveness to strengthen its technological barriers - The Group focuses on key technological breakthroughs and core product iteration and upgrades to consolidate its technological barriers[45](index=45&type=chunk) - Applying advanced technologies to empower R&D, procurement, marketing, and management, enhancing decision-making efficiency and customer response speed[45](index=45&type=chunk) [Financial Management and Risk Prevention](index=18&type=section&id=Financial%20Management%20and%20Risk%20Prevention) The Group emphasizes cash flow management, capital structure optimization, and diversified financing to ensure liquidity, while enhancing ESG and comprehensive risk management to address supply chain, market, and geopolitical risks - The Group focuses on cash flow forecasting and management, optimizing capital structure to ensure liquidity safety, and actively expanding diversified financing channels[45](index=45&type=chunk) - Continuously improving the ESG (Environmental, Social, and Governance) management system, actively responding to green compliance requirements, and integrating sustainable development into its strategy[45](index=45&type=chunk) - Strengthening comprehensive risk management to enhance the ability to identify, assess, and respond to supply chain risks, market risks, compliance risks, and geopolitical risks[45](index=45&type=chunk) [Regional Market Expansion and Industry-Academia-Research Collaboration](index=19&type=section&id=Regional%20Market%20Expansion%20and%20Industry-Academia-Research%20Collaboration) The Group deepens its mainland China presence and expands into Asia-Pacific from Hong Kong, partnering with local firms and establishing a joint laboratory with Hong Kong Polytechnic University to accelerate FinTech industrialization and talent development - The Group initiated a strategic plan in 2023 to establish itself in the Hong Kong SAR and radiate across the Asia-Pacific region and Greater Bay Area market, and has successfully partnered with several well-known local financial, energy, retail, trade, and cultural tourism enterprises in Hong Kong[46](index=46&type=chunk) - In the first half of 2025, the Company established a strategic industry-academia-research collaboration with Hong Kong Polytechnic University, forming a joint laboratory and setting up common joint projects, aiming to accelerate the practical implementation and application of FinTech empowering broader business scenarios[46](index=46&type=chunk) [Industry Honors and Awards](index=19&type=section&id=Industry%20Honors%20and%20Awards) In H1 2025, Newlink Technology and Beijing Newlink Technology Co., Ltd. received multiple industry accolades, including the "Golden Tripod Product Award" and several "Haino Awards" for service innovation, brand leadership, and industry leadership - Beijing Newlink won the "Golden Tripod Product Award" in the financial track of the 3rd "Dingxin Cup" competition with its IT solution "IFR Financial Intelligent Process Robot based on Newlink RPA V4.0"[47](index=47&type=chunk) - Newlink Technology and Mr. Zhai Shuchun, Executive Director, Chairman of the Board, and CEO, successfully received three honors: "Haino Award – 2025 Service Innovation Model Enterprise," "Haino Award – 2025 (Industry) Leading Brand," and "Haino Award – 2025 (Industry) Leading Figure"[47](index=47&type=chunk) [Outlook](index=20&type=section&id=Outlook) Newlink Technology remains cautiously optimistic amidst global economic complexities, focusing on technological R&D and business model innovation in H2, building long-term growth engines through strategic collaborations, market expansion, and operational excellence to enhance resilience and shareholder value - Looking ahead, the complexity, severity, and uncertainty of the global economy persist, with cost pressures, geopolitical risks, and market demand fluctuations remaining key challenges for the Group's operations[48](index=48&type=chunk) - The Group remains cautiously optimistic about its development prospects and will adhere to the dual innovation development goals of "technological R&D innovation" and "business model innovation"[48](index=48&type=chunk) - In the second half, the Group will build long-term growth engines through important implementation paths such as deepening subsidiary collaboration mechanisms, integrating internal and external technology supply chains, and establishing a customer experience monitoring matrix, and implement a dual-path expansion strategy of "core region penetration + emerging market cultivation" to comprehensively enhance core competitiveness[48](index=48&type=chunk) [Financial Performance Analysis](index=21&type=section&id=Financial%20Performance%20Analysis) The Group's financial performance analysis reveals an 8.8% revenue increase, a 2.4% gross profit decrease, and a 16.6% widened loss for the period, driven by increased costs and fair value losses [Revenue](index=21&type=section&id=Revenue) During the reporting period, the Group's revenue, entirely from IT solution services, totaled RMB 133.7 million, an 8.8% year-on-year increase, primarily driven by increased software development services revenue, with innovative solutions contributing significantly - During the reporting period, the Group's revenue was entirely derived from IT solution services business, totaling **RMB 133.7 million**, an **increase of 8.8%** compared to **RMB 122.9 million** in the prior period[49](index=49&type=chunk) - The increase in revenue was primarily due to the increase in software development services revenue, which accounted for **88.8%** of the Group's total revenue[49](index=49&type=chunk) [Software Development Services](index=21&type=section&id=Software%20Development%20Services) Software development services revenue increased by 13.3% to RMB 118.7 million, with innovative solutions contributing 58.5%, making it a significant component of the Group's business revenue Software Development Services Revenue | Item | 2025 (RMB million) | 2024 (RMB million) | Year-on-year change (%) | | :--- | :--- | :--- | :--- | | Software development services revenue | 118.7 | 104.8 | 13.3% | | Innovative solution revenue (as % of software development services) | 69.4 | N/A | N/A | - Innovative solutions primarily include Robotic Process Automation (RPA) solutions, intelligent management solutions for healthcare big data, and other advanced technologies utilizing data mining and analysis, cloud computing, distributed database management, knowledge graphs, and deep learning[50](index=50&type=chunk) [Technology and Maintenance Services](index=22&type=section&id=Technology%20and%20Maintenance%20Services) Technology and maintenance services revenue amounted to RMB 12.8 million, a 7.2% decrease from RMB 13.8 million in the prior period, accounting for 9.6% of the Group's total revenue Technology and Maintenance Services Revenue | Item | 2025 (RMB million) | 2024 (RMB million) | Year-on-year change (%) | | :--- | :--- | :--- | :--- | | Technology and maintenance services revenue | 12.8 | 13.8 | -7.2% | | Proportion of total revenue | 9.6% | N/A | N/A | [Standard Software Sales](index=22&type=section&id=Standard%20Software%20Sales) Standard software sales revenue was RMB 2.2 million, accounting for only 1.6% of total revenue, with innovative solutions comprising 95.5%, primarily including medical quality control and smart healthcare platform products Standard Software Sales Revenue | Item | 2025 (RMB million) | 2024 (RMB million) | Year-on-year change (%) | | :--- | :--- | :--- | :--- | | Standard software sales revenue | 2.2 | 4.3 | -48.8% | | Innovative solution revenue (as % of standard software sales) | 2.1 | N/A | N/A | - Innovative solutions primarily include medical quality control and smart healthcare platform products[52](index=52&type=chunk) [Cost of Sales and Services](index=22&type=section&id=Cost%20of%20Sales%20and%20Services) During the reporting period, the cost of sales and services increased by 11.7% to RMB 109.7 million from RMB 98.2 million in the prior period, primarily due to higher implementation costs associated with increased software development services revenue Cost of Sales and Services | Item | 2025 (RMB million) | 2024 (RMB million) | Year-on-year change (%) | | :--- | :--- | :--- | :--- | | Cost of sales and services | 109.7 | 98.2 | 11.7% | - The increase in cost was mainly due to higher implementation costs associated with the growth in software development services revenue[53](index=53&type=chunk) [Gross Profit and Gross Margin](index=22&type=section&id=Gross%20Profit%20and%20Gross%20Margin) Gross profit decreased by 2.4% to RMB 24.1 million from RMB 24.7 million in the prior period, with gross margin falling from 20.1% to 18.0%, primarily because sales cost growth outpaced revenue growth in software development services Gross Profit and Gross Margin | Item | 2025 (RMB million) | 2024 (RMB million) | Year-on-year change (%) | | :--- | :--- | :--- | :--- | | Gross Profit | 24.1 | 24.7 | -2.4% | | Gross Margin | 18.0% | 20.1% | -2.1 percentage points | - The decrease in gross profit and gross margin was mainly due to the increase in sales costs for software development services exceeding the increase in revenue from that business[54](index=54&type=chunk) [Other Income and Gains](index=22&type=section&id=Other%20Income%20and%20Gains) During the reporting period, other income and gains amounted to RMB 3.6 million, a 39.0% decrease from RMB 5.9 million in the prior period, primarily due to reduced bank interest income Other Income and Gains | Item | 2025 (RMB million) | 2024 (RMB million) | Year-on-year change (%) | | :--- | :--- | :--- | :--- | | Other income and gains | 3.6 | 5.9 | -39.0% | - The decrease was mainly due to reduced bank interest income[55](index=55&type=chunk) [Fair Value Changes of Equity Investments at Fair Value Through Profit or Loss](index=22&type=section&id=Fair%20Value%20Changes%20of%20Equity%20Investments%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) During the reporting period, the Group incurred additional fair value losses of RMB 18.2 million on equity investments at fair value through profit or loss, a significant increase from RMB 4.3 million in the prior period, primarily due to fair value fluctuations of secondary market stocks Fair Value Changes of Equity Investments | Item | 2025 (RMB million) | 2024 (RMB million) | Year-on-year change (%) | | :--- | :--- | :--- | :--- | | Fair value change loss | (18.2) | (4.3) | 323.3% (Loss widened) | - The loss was due to fair value fluctuations of stocks purchased in the secondary market[56](index=56&type=chunk) [Fair Value Changes of Contingent Consideration](index=23&type=section&id=Fair%20Value%20Changes%20of%20Contingent%20Consideration) The Group recognized a gain of RMB 1.6 million from fair value changes of contingent consideration arising from the acquisition of subsidiary Neusoft Yutong Fair Value Changes of Contingent Consideration | Item | 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | | Fair value changes of contingent consideration | 1.6 | – | - The change arose from the acquisition of subsidiary Neusoft Yutong[57](index=57&type=chunk) [Selling and Distribution Expenses](index=23&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and distribution expenses increased by 21.3% to RMB 9.7 million from RMB 8.0 million in the prior period, primarily due to higher sales expenses related to revenue-generating contracts Selling and Distribution Expenses | Item | 2025 (RMB million) | 2024 (RMB million) | Year-on-year change (%) | | :--- | :--- | :--- | :--- | | Selling and distribution expenses | 9.7 | 8.0 | 21.3% | - The increase was mainly due to higher sales expenses related to revenue-generating contracts[58](index=58&type=chunk) [Administrative Expenses](index=23&type=section&id=Administrative%20Expenses) Administrative expenses increased by 5.3% to RMB 23.7 million from RMB 22.5 million in the prior period, primarily due to higher staff remuneration and amortization expenses Administrative Expenses | Item | 2025 (RMB million) | 2024 (RMB million) | Year-on-year change (%) | | :--- | :--- | :--- | :--- | | Administrative expenses | 23.7 | 22.5 | 5.3% | - The increase was mainly due to higher staff remuneration and amortization expenses[59](index=59&type=chunk) [Research and Development Expenses](index=23&type=section&id=Research%20and%20Development%20Expenses) R&D expenses decreased by 26.6% to RMB 27.6 million from RMB 37.6 million in the prior period, mainly due to fewer R&D personnel and lower amortization of deferred development costs, while the Group added 7 new software copyrights Research and Development Expenses | Item | 2025 (RMB million) | 2024 (RMB million) | Year-on-year change (%) | | :--- | :--- | :--- | :--- | | Research and development expenses | 27.6 | 37.6 | -26.6% | - The decrease was mainly due to a reduction in the number of R&D personnel and lower amortization of the Group's deferred development costs[60](index=60&type=chunk) - As of June 30, 2025, the Group held a total of **245 software copyrights**, with **7 new software copyrights** related to innovative solutions developed or upgraded during the six months ended June 30, 2025[60](index=60&type=chunk) [Expected Credit Loss Provision for Trade Receivables, Contract Assets and Other Receivables, Net](index=23&type=section&id=Expected%20Credit%20Loss%20Provision%20for%20Trade%20Receivables,%20Contract%20Assets%20and%20Other%20Receivables,%20Net) The Group recorded a net expected credit loss provision of RMB 10.5 million, primarily due to increased expected credit losses on trade receivables balances over three years old Expected Credit Loss Provision, Net | Item | 2025 (RMB million) | | :--- | :--- | | Expected credit loss provision, net | 10.5 | - Primarily due to increased expected credit losses on trade receivables balances over three years old[61](index=61&type=chunk) [Other Expenses](index=24&type=section&id=Other%20Expenses) Other expenses amounted to RMB 2.0 million, primarily including donation expenses and impairment losses on inventories Other Expenses | Item | 2025 (RMB million) | | :--- | :--- | | Other expenses | 2.0 | - Primarily including donation expenses and impairment losses on inventories[62](index=62&type=chunk) [Finance Costs](index=24&type=section&id=Finance%20Costs) Finance costs decreased by 54.5% to RMB 0.5 million, primarily due to reduced interest expenses on interest-bearing bank borrowings and lease interest Finance Costs | Item | 2025 (RMB million) | 2024 (RMB million) | Year-on-year change (%) | | :--- | :--- | :--- | :--- | | Finance costs | 0.5 | 1.1 | -54.5% | - The decrease was mainly due to reduced interest expenses on interest-bearing bank borrowings and lease interest[63](index=63&type=chunk) [Share of Results of an Associate](index=24&type=section&id=Share%20of%20Results%20of%20an%20Associate) The Company's share of loss from an investment in an associate was RMB 1.6 million, stemming from the loss of Beijing Heshun Huikang Technology Co., Ltd. Share of Results of an Associate | Item | 2025 (RMB million) | | :--- | :--- | | Share of loss from an investment in an associate | (1.6) | - The loss stemmed from the loss of Beijing Heshun Huikang Technology Co., Ltd., an associate invested by subsidiary Neusoft Yutong, during the reporting period[64](index=64&type=chunk) [Loss Before Tax](index=24&type=section&id=Loss%20Before%20Tax) Loss before tax widened by 16.6% to RMB 64.6 million, an increase of RMB 9.2 million from the prior period Loss Before Tax | Item | 2025 (RMB million) | 2024 (RMB million) | Year-on-year change (RMB million) | | :--- | :--- | :--- | :--- | | Loss Before Tax | (64.6) | (55.4) | (9.2) (Loss widened) | [Income Tax Expense](index=24&type=section&id=Income%20Tax%20Expense) Income tax expense increased by RMB 0.009 million to RMB 0.024 million from RMB 0.015 million in the prior period Income Tax Expense | Item | 2025 (RMB million) | 2024 (RMB million) | Year-on-year change (RMB million) | | :--- | :--- | :--- | :--- | | Income tax expense | 0.024 | 0.015 | 0.009 | [Loss for the Period](index=24&type=section&id=Loss%20for%20the%20Period) Loss for the period widened by 16.6% to RMB 64.6 million, an increase of RMB 9.2 million from the prior period Loss for the Period | Item | 2025 (RMB million) | 2024 (RMB million) | Year-on-year change (RMB million) | | :--- | :--- | :--- | :--- | | Loss for the Period | (64.6) | (55.4) | (9.2) (Loss widened) | [Liquidity, Financial and Capital Resources](index=24&type=section&id=Liquidity,%20Financial%20and%20Capital%20Resources) The Group primarily funded capital expenditure and working capital through operations, bank borrowings, and global offering/placing proceeds, with RMB 279.5 million in cash and cash equivalents at period-end [Sources and Uses of Funds](index=24&type=section&id=Sources%20and%20Uses%20of%20Funds) The Group primarily met capital expenditure and working capital needs through cash generated from operations, bank borrowings, and global offering/placing proceeds, with RMB 279.5 million in cash and cash equivalents at period-end - The Group primarily met its capital expenditure and working capital needs through cash generated from operations, bank borrowings, and net proceeds from the global offering and 2024 placing[68](index=68&type=chunk) Cash and Cash Equivalents | Item | June 30, 2025 (RMB million) | | :--- | :--- | | Total available cash and cash equivalents | 279.5 | [Bank Borrowings](index=25&type=section&id=Bank%20Borrowings) Bank borrowings decreased by 50% to RMB 10.0 million from RMB 20.0 million at year-end 2024, with these borrowings maturing between March and April 2026 at floating annual interest rates ranging from 3.5% to 3.6% Details of Bank Borrowings | Item | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Bank borrowings | 10.0 | 20.0 | -50.0% | | Annual floating interest rate | 3.5% to 3.6% | 3.85% | N/A | | Maturity date | March to April 2026 | 2025 | N/A | [Net Current Assets](index=25&type=section&id=Net%20Current%20Assets) Net current assets decreased by 9.5% to RMB 483.7 million from RMB 534.5 million at December 31, 2024, reflecting the company's prudent strategy to balance liquidity needs with short-term debt Net Current Assets | Item | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Net current assets | 483.7 | 534.5 | -9.5% | - This indicates that the Group adopted a prudent strategy to balance liquidity needs with short-term debt, while retaining sufficient resources for strategic growth initiatives[69](index=69&type=chunk) [Exchange Rate Fluctuation Risk](index=25&type=section&id=Exchange%20Rate%20Fluctuation%20Risk) The Group, operating primarily in China with RMB transactions, faces no significant foreign exchange risk, and undertook no hedging transactions during the reporting period - Most of the Group's monetary assets are denominated in US dollars and RMB, with risks minimized by regularly reviewing net foreign exchange exposure and utilizing natural hedges where possible[70](index=70&type=chunk) - Management believes there are no significant financial assets or liabilities denominated in currencies other than the functional currency of each entity, thus the business does not face any significant foreign exchange risk[70](index=70&type=chunk) - During the reporting period, the Group did not undertake any foreign exchange hedging transactions[70](index=70&type=chunk) [Commitments](index=25&type=section&id=Commitments) As of June 30, 2025, the Group had contracted but unprovided short-term lease commitments of RMB 0.7 million due within one year Short-term Lease Commitments | Item | June 30, 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | | Unprovided short-term lease commitments | 0.7 | 0.5 | [Contingent Liabilities](index=25&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities, guarantees, or any pending or threatened material litigation or claims - As of June 30, 2025, the Group had no significant contingent liabilities, guarantees, or any pending or threatened material litigation or claims against any member of the Group[72](index=72&type=chunk) [Future Plans for Material Investments and Capital Assets](index=25&type=section&id=Future%20Plans%20for%20Material%20Investments%20and%20Capital%20Assets) Except as disclosed, the Group had no future plans for material investments and capital assets as of June 30, 2025 - Except as disclosed in this announcement, as of June 30, 2025, the Group had no future plans for material investments and capital assets[73](index=73&type=chunk) [Material Acquisitions and Disposals of Subsidiaries and Affiliated Companies](index=25&type=section&id=Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%20and%20Affiliated%20Companies) For the six months ended June 30, 2025, the Group had no material acquisitions or disposals of subsidiaries and affiliated companies - For the six months ended June 30, 2025, the Group had no material acquisitions or disposals of subsidiaries and affiliated companies[74](index=74&type=chunk) [Material Investments](index=26&type=section&id=Material%20Investments) As of June 30, 2025, the Group held no material investments representing 5% or more of its total assets - As of June 30, 2025, we did not hold any material investments representing **5%** or more of the Group's total assets as of June 30, 2025[75](index=75&type=chunk) [Pledge of Assets](index=26&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the Group had no pledge of assets - As of June 30, 2025, the Group had no pledge of assets[76](index=76&type=chunk) [Customer Credit Risk](index=26&type=section&id=Customer%20Credit%20Risk) The Group faces customer payment risks, with RMB 227.5 million in trade receivables and RMB 55.2 million in impairment losses, but manages credit risk through various measures, as receivables are mainly from reputable major clients - As of June 30, 2025, our trade receivables amounted to **RMB 227.5 million**, with recorded impairment losses on trade receivables of **RMB 55.2 million**[77](index=77&type=chunk) - The outstanding trade receivables primarily originate from reputable major customers with high credit ratings, mostly state-owned enterprises and listed public companies, accounting for **67.8%**[79](index=79&type=chunk) - The Group has established credit management policies, implementing measures such as increasing sales to customers with shorter payment cycles, strictly controlling outstanding trade receivables, regular collection efforts, and performance appraisals, to minimize credit risk[82](index=82&type=chunk) [Details of Subsequent Settlement of Trade Receivables](index=26&type=section&id=Details%20of%20Subsequent%20Settlement%20of%20Trade%20Receivables) Total trade receivables were RMB 227.5 million, with RMB 11.8 million subsequently settled, showing lower settlement for balances over 3 years old Details of Subsequent Settlement of Trade Receivables as of June 30, 2025 | Ageing | Gross Amount (RMB '000) | Subsequently Settled (RMB '000) | | :--- | :--- | :--- | | Within 180 days | 60,492 | 7,394 | | 181 days to 1 year | 30,161 | 1,349 | | 1 to 2 years | 47,774 | 1,577 | | 2 to 3 years | 21,110 | 1,463 | | Over 3 years | 67,988 | 62 | | Total | 227,525 | 11,845 | [Analysis of Recoverability of Long-term Trade Receivables and Sufficiency of Credit Loss Provisions](index=27&type=section&id=Analysis%20of%20Recoverability%20of%20Long-term%20Trade%20Receivables%20and%20Sufficiency%20of%20Credit%20Loss%20Provisions) Long-term trade receivables are mainly from reputable state-owned and listed companies (67.8%), whose strict payment processes cause delays, but the company considers provisions sufficient, citing normal business arrangements and no prior unrecoverable cases - The outstanding trade receivables primarily originate from reputable major customers with high credit ratings, mostly state-owned enterprises and listed public companies, accounting for **67.8%**[79](index=79&type=chunk) - The outstanding trade receivables over 180 days as of June 30, 2025, mainly originate from long-term cooperating state-owned enterprises and listed public company customers in China, with no unrecoverable trade receivables in previous years[79](index=79&type=chunk) - The Group believes that normal business arrangements have been entered into with these customers, and as of now, no issues of unrecoverability or insufficient impairment provisions have been identified[80](index=80&type=chunk) [Actions Taken or to be Taken to Recover Long-term Receivables](index=28&type=section&id=Actions%20Taken%20or%20to%20be%20Taken%20to%20Recover%20Long-term%20Receivables) The Group actively manages long-term receivables by prioritizing sales to short-cycle customers, strictly controlling outstanding amounts, implementing credit control policies, regular collection, and integrating collection progress into employee performance appraisals - The Group improves the trade receivables collection cycle by increasing sales to customers with shorter payment cycles while gradually reducing sales to customers with longer payment cycles[82](index=82&type=chunk) - A credit control department has been established to formulate and strictly adhere to credit management policies, including follow-ups by sales personnel, telephone collection, reporting by business departments, and customer visits[82](index=82&type=chunk) - Strengthening cooperation between the technical team and the sales and marketing team to improve collection efficiency and incorporate collection progress into employee performance appraisals[82](index=82&type=chunk) [Key Financial and Business Performance Indicators](index=28&type=section&id=Key%20Financial%20and%20Business%20Performance%20Indicators) This section presents key financial and business performance indicators, including return on equity, gearing ratio, and employee information, providing insights into the Group's operational efficiency and financial health [Return on Equity](index=28&type=section&id=Return%20on%20Equity) Return on equity decreased from -7.2% to -9.6%, primarily due to the increased loss recorded during the reporting period Return on Equity | Item | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--- | :--- | :--- | | Return on Equity | -9.6% | -7.2% | - The decrease was primarily due to the increased loss recorded during the reporting period[83](index=83&type=chunk) [Gearing Ratio](index=28&type=section&id=Gearing%20Ratio) Gearing ratio decreased from 2.7% to 1.5%, primarily due to a reduction in bank borrowings Gearing Ratio | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Gearing Ratio | 1.5% | 2.7% | - The decrease was primarily due to a reduction in bank borrowings[83](index=83&type=chunk) [Employee Information](index=29&type=section&id=Employee%20Information) The Group had 664 employees, an increase of 49, with employee costs of RMB 80.1 million, and determines remuneration based on performance, seniority, position, and qualifications, while providing continuous training Employee Data | Item | June 30, 2025 | | :--- | :--- | | Number of employees | 664 | | Year-on-year increase | 49 employees | | Employee costs (RMB million) | 80.1 | - The company determines employee remuneration based on each employee's performance, seniority, position, and qualifications, and provides pre-job and regular ongoing training[84](index=84&type=chunk) - The company adopted a post-IPO share option scheme on December 5, 2020, to provide incentives and rewards to eligible persons[84](index=84&type=chunk) [Other Information](index=29&type=section&id=Other%20Information) This section covers other important information, including the use of proceeds from the global offering and 2024 placing, compliance with corporate governance codes, and details regarding the audit committee and interim dividend [Use of Proceeds from Global Offering](index=29&type=section&id=Use%20of%20Proceeds%20from%20Global%20Offering) Net proceeds of HK$790.4 million were reallocated for equity transfer, capital injection, and increased R&D in innovative products, with unutilized funds expected to be fully used by December 2025, and working capital by December 2027 - The net proceeds from the Company's global offering were approximately **HK$790.4 million**[85](index=85&type=chunk) - The Board has reviewed and reallocated the proceeds, including up to **HK$71.0 million** for equity transfer consideration, capital injection, and capital contribution obligations for the acquisition of Neusoft Yutong[86](index=86&type=chunk) - Further reallocation of approximately **HK$49.2 million** for working capital and general corporate purposes, and an increase of approximately **HK$38.9 million** for the development of innovative general products and approximately **HK$20.0 million** for the development of innovative financial products[86](index=86&type=chunk) Details of Utilization of Global Offering Proceeds (as of period-end) | Use | Initial Allocation (HK$ million) | After Further Reallocation (HK$ million) | Unutilized at start of period (HK$ million) | Utilized during period (HK$ million) | Unutilized at period-end (HK$ million) | | :--- | :--- | :--- | :--- | :--- | :--- | | Development of new solutions and upgrade of existing solutions | 632.3 | 144.8 | 117.6 | 64.6 | 53.0 | | －Development and upgrade of medical quality control and safety early warning platform | 158.1 | 24.4 | 16.5 | 2.9 | 13.6 | | －Development of clinical pathway management system | 158.1 | 24.2 | 24.0 | 5.9 | 18.1 | | －Development of telemedicine system | 79.0 | 7.3 | 4.3 | 0.1 | 4.2 | | －Development of new smart healthcare platform solutions | 79.0 | 12.7 | 10.7 | 3.5 | 7.2 | | －Upgrade of RPA solutions | 158.1 | 17.3 | 12.6 | 12.6 | 0.0 | | －Development of innovative general products | – | 38.9 | 34.8 | 34.8 | 0.0 | | －Development of innovative financial products | – | 20.0 | 14.7 | 4.8 | 9.9 | | Increased sales and marketing efforts | 79.1 | 14.7 | 9.5 | 9.2 | 0.3 | | Working capital and other general corporate purposes | 79.0 | 49.2 | 0.6 | 0.6 | – | | Funds planned for Neusoft Yutong acquisition | – | – | – | – | – | | Total | 790.4 | 208.7 | 127.7 | 74.4 | 53.3 | - The unutilized proceeds from the initial public offering are expected to be fully utilized by **December 2025** (except for the unutilized proceeds reallocated for working capital and other general corporate purposes, which are expected to be fully utilized by **December 2027**)[90](index=90&type=chunk) [Use of Proceeds from 2024 Placing](index=32&type=section&id=Use%20of%20Proceeds%20from%202024%20Placing) Net proceeds of HK$43.60 million from the 2024 placing were fully utilized to supplement the Group's general working capital by the end of the reporting period - The net proceeds from the 2024 placing were approximately **HK$43.60 million**, all of which were used to supplement the Group's general working capital[89](index=89&type=chunk) Utilization of Net Proceeds from 2024 Placing (as of period-end) | Use | Net Proceeds from Placing (HK$ million) | Unutilized at start of period (HK$ million) | Utilized during period (HK$ million) | Unutilized at period-end (HK$ million) | | :--- | :--- | :--- | :--- | :--- | | Supplement the Group's general working capital | 43.6 | 33.06 | 33.06 | – | - The unutilized funds are expected to be fully utilized by **December 2027**[91](index=91&type=chunk) [Compliance with Corporate Governance Code](index=33&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The Group maintains high corporate governance standards, complying with the Code, though the Chairman and CEO roles are combined, which the Board believes benefits management and strategic planning - The Group is committed to maintaining a high level of corporate governance and has adopted all applicable principles and code provisions of the Corporate Governance Code[92](index=92&type=chunk)[93](index=93&type=chunk) - Mr. Zhai Shuchun serves as both Chairman and Chief Executive Officer, and the Board believes this arrangement is beneficial to the Group's management, ensuring consistent internal leadership and enabling the company to make and implement decisions more efficiently[92](index=92&type=chunk) - Save for the deviation where the roles of Chairman and Chief Executive Officer are performed by the same individual, the Group has complied with the Corporate Governance Code throughout the six months ended June 30, 2025[93](index=93&type=chunk) [Compliance with Model Code for Securities Transactions](index=34&type=section&id=Compliance%20with%20Model%20Code%20for%20Securities%20Transactions) The Company adopted the Model Code for Directors' securities transactions, and all Directors confirmed 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 to the Listing Rules as its code of conduct for Directors' securities transactions[94](index=94&type=chunk) - Following specific enquiry with the Directors, all Directors confirmed that they have complied with the requirements of the Model Code throughout the six months ended June 30, 2025[94](index=94&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=34&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) Neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities, with 5,952,800 treasury shares held for employee incentives or liquidity purposes - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[95](index=95&type=chunk) - As of June 30, 2025, the Company held **5,952,800 treasury shares**, intended for employee incentives, sale, or transfer to obtain liquidity, among other uses[95](index=95&type=chunk) [Audit Committee and Review of Financial Statements](index=34&type=section&id=Audit%20Committee%20and%20Review%20of%20Financial%20Statements) The Audit Committee, comprising three independent non-executive Directors, reviewed the unaudited financial information for H1 2025, confirming compliance with accounting standards and proper disclosure - The Audit Committee comprises three independent non-executive Directors, namely Mr. You Linfeng (Chairman of the Audit Committee), Mr. Tang Baoqi, and Ms. Yang Juan[96](index=96&type=chunk) - The financial information for the six months ended June 30, 2025, contained in the interim report is unaudited but has been reviewed by the Company's external auditor, RSM Hong Kong, in accordance with Hong Kong Standard on Review Engagements 2410[96](index=96&type=chunk) - The Audit Committee has reviewed the interim results and is satisfied that the unaudited financial information of the Company contained in this announcement has been prepared in accordance with applicable accounting standards and is duly and properly disclosed[96](index=96&type=chunk)[97](index=97&type=chunk) [Interim Dividend](index=35&type=section&id=Interim%20Dividend) The Board does not recommend the declaration of an interim dividend to shareholders for the six months ended June 30, 2025 - The Board does not recommend the declaration of an interim dividend to shareholders for the six months ended June 30, 2025[98](index=98&type=chunk) [Events After the Reporting Period](index=35&type=section&id=Events%20After%20the%20Reporting%20Period) No material events occurred after June 30, 2025, and up to the date of this announcement - No material events occurred after June 30, 2025, and up to the date of this announcement[99](index=99&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=35&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) This announcement is published on the HKEX and Company websites, with the interim report for H1 2025 to follow at an appropriate time - This announcement is published on the HKEX website (www.hkexnews.hk) and the Company's website (www.newlinktech.com.cn)[100](index=100&type=chunk) - The Company's interim report for the six months ended June 30, 2025, will be published on the aforementioned websites at an appropriate time[100](index=100&type=chunk) [Acknowledgement](index=35&type=section&id=Acknowledgement) Chairman and CEO Mr. Zhai Shuchun, on behalf of the Board, thanks all colleagues for their dedication and expresses gratitude to shareholders, customers, banks, and business partners for their trust and support - Mr. Zhai Shuchun, Chairman and Chief Executive Officer, on behalf of the Board, expresses gratitude for the efforts, dedication, loyalty, and integrity of all colleagues[101](index=101&type=chunk)[102](index=102&type=chunk) - Sincere thanks for the trust and support from shareholders, customers, banks, and other business partners[101](index=101&type=chunk) [Board of Directors](index=35&type=section&id=Board%20of%20Directors) As of this announcement date, the Board comprises Mr. Zhai Shuchun, Ms. Qin Yi, and Mr. Li Xiaodong as executive Directors, and Mr. Tang Baoqi, Ms. Yang Juan, and Mr. You Linfeng as independent non-executive Directors - The executive Directors are Mr. Zhai Shuchun, Ms. Qin Yi, and Mr. Li Xiaodong[102](index=102&type=chunk) - The independent non-executive Directors are Mr. Tang Baoqi, Ms. Yang Juan, and Mr. You Linfeng[102](index=102&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 之 內 容 概不 負 責 ， 對 其 準 確 性 或 完 整性 亦 不 發 表 任 何 聲 明， 並 明 確 表 示 概 不 就因 本 公 告 全 部 或 任 何部 分 內 容 而 產 生 或因倚賴該等內容而引致之任何損失承擔任何責任。 China Ruyi Holdings Limited 中 國 儒 意 控 股 有 限 公 司 （ 於百慕達註冊成立之有限公司） （股份代號：136） 截至二零二五年六月三十日止六個月之中期業績 中期業績 中國儒意控股有限公司（「本公司」）董事（「董事」）會（「董事會」）公佈本公司及 其附屬公司及其控制的實體（「本集團」）截至二零二五年六月三十日止六個月 之未經審核中期業績，連同比較數字如下： | 財務摘要 收入 | | | | | | | | | | | | | | | 二零二五年 六月三十日 人民幣千元 | | | | | | | 1,839,559 | | | 2,206,249 | 截至以下日期止六個月 | | | | | | | 二零二四年 六月三十日 人民幣千 ...