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。 Maoyan Entertainment 貓眼娛樂 （於開曼群島註冊成立的有限公司） （股份代號：1896） 截 至2025年6月30日止六個月的中期業績公告 董事會欣然宣佈本集團截至2025年6月30日止六個月的未經審核綜合業績。該等 業績已經由審核委員會連同本公司管理層及核數師審閱。 表現摘要 | | 截 至6月30日止六個月 | | | | --- | --- | --- | --- | | | 2025年 | 2024年 | 同比變動 | | | 人民幣百萬元 | 人民幣百萬元 | % | | | （未經審核） | （未經審核） | | | 收 益 | 2,472.2 | 2,170.9 | 13.9 | | 毛 利 | 936.5 | 1,156.2 | (19.0) | | 經營溢利 | 261.1 | 406.9 | (35.8) | | 期內溢利 | 178.5 | 284.8 | (3 ...

[Report Overview](index=1&type=section&id=Report%20Overview) [GEM Market Features and Disclaimer](index=2&type=section&id=1.1%20GEM%20Market%20Features%20and%20Disclaimer) This section outlines the positioning of the GEM market of the Stock Exchange of Hong Kong, noting its provision of listing opportunities for small and medium-sized companies, accompanied by higher investment risks and market volatility - The GEM market provides a listing platform for small and medium-sized companies, entailing **higher investment risks** and potential for **significant market volatility** in securities[2](index=2&type=chunk) - Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited are not responsible for the contents of this report, make no representation as to its accuracy or completeness, and accept no liability whatsoever for any loss arising from or in reliance upon the whole or any part of the contents of this report[2](index=2&type=chunk) - The Company's directors confirm that the information contained in this report is **accurate and complete** in all material respects and is not misleading or fraudulent[3](index=3&type=chunk) [Company Information](index=3&type=section&id=1.2%20Company%20Information) This section details the composition of the company's board of directors, including executive, non-executive, and independent non-executive directors, as well as members of the audit, nomination, and remuneration committees - The Board of Directors comprises **3 executive directors, 3 non-executive directors, and 3 independent non-executive directors**[4](index=4&type=chunk) - The Company Secretary is Mr. Tsang Hing Wan, and the auditor is **Ernst & Young**[4](index=4&type=chunk) - The Company's registered office is in the Cayman Islands, its principal place of business in Hong Kong is in Kwai Chung, and its **stock code is 8362**[4](index=4&type=chunk)[5](index=5&type=chunk) [Management Discussion and Analysis](index=4&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review and Prospects](index=4&type=section&id=2.1%20Business%20Review%20and%20Prospects) The Group primarily engages in the processing, sale, and transportation of fresh, frozen, and cooked foods, and operates restaurants in Hong Kong - The Group primarily engages in the processing and sale of fresh, frozen, and cooked foods (including provision of transportation services) and operates restaurants in Hong Kong[6](index=6&type=chunk) - The Group holds a **55% interest** in Wing Tai Catering, a joint venture established with Wing's Global Holdings Limited, participating in the Hong Kong catering and food business[6](index=6&type=chunk) - A joint venture, Sun King Tai Limited, was established with Tin King Limited, in which the Group holds a **60% interest**, and serves as the **primary supplier of food and beverage materials** to all its restaurants, expected to enhance future sales and revenue[7](index=7&type=chunk)[8](index=8&type=chunk) [Financial Review](index=5&type=section&id=2.2%20Financial%20Review) For the six months ended June 30, 2025, the Group's revenue slightly increased, but the cost of inventories consumed and operating loss before tax significantly rose, leading to a decrease in gross profit and gross margin, and an expanded net loss for the period Key Financial Indicators Comparison for H1 2025 | Indicator | 2025 H1 (HKD Thousand) | 2024 H1 (HKD Thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 55,106 | 54,172 | +1.7% | | Food Processing and Trading Revenue | 48,300 | 43,600 | +10.8% | | Restaurant Operations Revenue | 6,800 | 10,600 | -35.9% | | Cost of Inventories Consumed | 32,800 | 29,400 | +11.6% | | Operating Loss Before Tax | 2,100 | 600 | +250.0% | | Gross Profit | 22,300 | 24,800 | -10.1% | | Gross Margin | 40.5% | 45.8% | -5.3 percentage points | | Employee Benefit Expenses | 12,400 | 12,900 | -3.9% | | Net Loss for the Period | 2,200 | 800 | +175.0% | - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[16](index=16&type=chunk) [Liquidity and Financial Resources](index=6&type=section&id=2.3%20Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group's net current assets increased, cash at bank slightly decreased, and the gearing ratio remained low Liquidity and Financial Resources Overview as of June 30, 2025 | Indicator | 2025-06-30 (HKD Thousand) | 2024-12-31 (HKD Thousand) | Change | | :--- | :--- | :--- | :--- | | Net Current Assets | 18,600 | 14,900 | Increase 3,700 | | Cash at Bank | 11,800 | 13,200 | Decrease 1,400 | | Bank Borrowings | 2,000 | 2,200 | Decrease 200 | | Gearing Ratio | 2.2% | 2.4% | Decrease 0.2 percentage points | - The Company has **1,400,000,000 issued shares** with a par value of **HKD 0.01 per share**, and its capital structure has remained unchanged since listing[19](index=19&type=chunk) - The Group adopts **prudent financial management measures** for its treasury policy, maintaining a **robust liquidity position** during the period, with no significant contingent liabilities or capital commitments[20](index=20&type=chunk)[21](index=21&type=chunk)[24](index=24&type=chunk) - Leasehold land and buildings held for own use by the Group, with a net book value of approximately **HKD 55.6 million**, have been pledged to secure bank financing[22](index=22&type=chunk) [Employees and Remuneration Policy](index=7&type=section&id=2.4%20Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group employed 73 staff, with a competitive remuneration policy offering performance-linked incentives and other benefits such as MPF, insurance, and medical compensation - As of June 30, 2025, the Group employed **73 staff** (June 30, 2024: 73 staff)[26](index=26&type=chunk) - The Group's employee remuneration scale is maintained at a **competitive level**, offering **performance-linked incentives** and other employee benefits, including MPF, insurance, and medical compensation[26](index=26&type=chunk) [Post Balance Sheet Events](index=7&type=section&id=2.5%20Post%20Balance%20Sheet%20Events) No significant events have occurred after the six months ended June 30, 2025, other than those already disclosed in this report - Save as disclosed above, no significant events have occurred after the six months ended June 30, 2025[27](index=27&type=chunk) [Directors' and Chief Executive's Interests](index=8&type=section&id=2.6%20Directors'%20and%20Chief%20Executive's%20Interests) This section discloses the interests of directors and the chief executive in the Company's shares as of June 30, 2025, where Ms. Au Hung Lin and Mr. Chung Yuk Wah hold 70% of the shares, and Ms. Au Hung Lin is the spouse of Mr. Chung Yuk Wah Directors' and Chief Executive's Interests in the Company's Shares (June 30, 2025) | Director's Name | Number of Shares | Approximate Percentage | | :--- | :--- | :--- | | Lai Ho Yin | 14,000,000 | 1.00% | | Ho Kin Wah | 28,000,000 | 2.00% | | Yu Ting Hei | 28,000,000 | 2.00% | | Au Hung Lin | 980,000,000 | 70.00% | | Chung Yuk Wah | 980,000,000 | 70.00% | - Ms. Au Hung Lin is the **spouse of Mr. Chung Yuk Wah**[28](index=28&type=chunk) - Save as disclosed, no director or chief executive of the Company had any disclosable interests or short positions in the shares, underlying shares, or debentures of the Company or any of its associated corporations[29](index=29&type=chunk) [Substantial Shareholders' Interests](index=9&type=section&id=2.7%20Substantial%20Shareholders'%20Interests) As of June 30, 2025, Kin King Ventures Limited was a substantial shareholder of the Company, holding 70% of the issued share capital Substantial Shareholders' Interests in the Company's Shares (June 30, 2025) | Shareholder Name | Number of Shares | Percentage of Company's Issued Share Capital | | :--- | :--- | :--- | | Kin King Ventures Limited | 980,000,000 | 70% | - Save as disclosed, no other person had any interests or short positions in the shares or underlying shares of the Company or any of its associated corporations that were required to be entered in the register[30](index=30&type=chunk) [Share Option Scheme](index=9&type=section&id=2.8%20Share%20Option%20Scheme) The Company adopted a share option scheme on June 5, 2017, valid for ten years, but no share options have been granted since its adoption - The Company has a share option scheme, approved and adopted by shareholders on **June 5, 2017**, with a **ten-year validity period**[31](index=31&type=chunk) - **No share options have been granted** under the share option scheme since its adoption[32](index=32&type=chunk) [Directors' Rights to Acquire Shares](index=9&type=section&id=2.9%20Directors'%20Rights%20to%20Acquire%20Shares) At no time during the six months ended June 30, 2025, were any rights to acquire benefits by means of the acquisition of shares or debentures of the Company granted to or exercised by the directors or their respective spouses or children under 18 years of age - At no time during the six months ended June 30, 2025, were any rights to acquire benefits by means of the acquisition of shares or debentures of the Company granted to or exercised by the directors or their respective spouses or children under 18 years of age[33](index=33&type=chunk) [Purchase, Sale or Redemption of Securities](index=9&type=section&id=2.10%20Purchase%2C%20Sale%20or%20Redemption%20of%20Securities) Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's securities during the six months ended June 30, 2025 - During the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's securities[34](index=34&type=chunk) [Other Information](index=10&type=section&id=Other%20Information) [Compliance with Model Code for Securities Transactions by Directors](index=10&type=section&id=3.1%20Compliance%20with%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company has adopted a model code for securities transactions by directors, no less exacting than that set out in the GEM Listing Rules, and all directors have confirmed compliance with this code during the six months ended June 30, 2025 - The Company has adopted a model code for securities transactions by directors, with terms **no less exacting** than the required standard of dealings set out in Rules 5.48 to 5.67 of the GEM Listing Rules[35](index=35&type=chunk) - Following specific enquiries made to all directors, all directors have confirmed their **compliance** with the required standard of dealings and the model code for securities transactions by directors adopted by the Company for the six months ended June 30, 2025[35](index=35&type=chunk) [Competing Interests](index=10&type=section&id=3.2%20Competing%20Interests) As of June 30, 2025, no director, substantial shareholder, or their respective associates had any interest in a business that directly or indirectly competes or may compete with the Group's business - As of June 30, 2025, no director, substantial shareholder, or their respective associates had any interest in a business that directly or indirectly competes or may compete with the Group's business[36](index=36&type=chunk) [Corporate Governance](index=10&type=section&id=3.3%20Corporate%20Governance) The Company has adopted and complied with the Corporate Governance Code set out in Appendix C1 of the GEM Listing Rules, with an exception regarding the engagement of the company secretary - The Company has adopted the principles and code provisions of the Corporate Governance Code set out in Appendix C1 to the GEM Listing Rules and has **complied with them throughout the review period**, save for the engagement of the company secretary[37](index=37&type=chunk) - The Company has appointed Mr. Lai Ho Yin, an executive director, as the contact person for the company secretary, Mr. Tsang Hing Wan, to ensure prompt access to the Group's developments and provision of professional advice[37](index=37&type=chunk) [Audit Committee](index=11&type=section&id=3.4%20Audit%20Committee) The Company has established an Audit Committee in compliance with the GEM Listing Rules, comprising three independent non-executive directors - The Company has established an Audit Committee in compliance with the GEM Listing Rules, comprising **three independent non-executive directors**: Mr. Lo Sun Tong (Chairman), Mr. Chow Chun Wai, and Mr. Lam Lai Kiu[38](index=38&type=chunk) - The Audit Committee has **reviewed this report** and considers that it complies with applicable accounting standards and has made **adequate disclosures**[38](index=38&type=chunk) [Board Approval](index=11&type=section&id=3.5%20Board%20Approval) This report was approved and authorized for issue by the Board of Directors on August 8, 2025 - The condensed consolidated financial statements were **approved and authorized for issue by the Board** on August 8, 2025[39](index=39&type=chunk) [Condensed Consolidated Financial Statements](index=12&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss](index=12&type=section&id=4.1%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, the Group recorded revenue of HKD 55.1 million, but due to increased cost of inventories consumed and operating expenses, the operating loss before tax expanded to HKD 2.142 million, resulting in a net loss for the period of HKD 2.24 million and basic loss per share of HKD 0.17 cents Key Data from Condensed Consolidated Statement of Profit or Loss (For the six months ended June 30, 2025) | Indicator | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Revenue | 55,106 | 54,172 | | Cost of Inventories Consumed | (32,813) | (29,443) | | Operating Loss Before Tax | (2,142) | (648) | | Loss for the Period | (2,240) | (807) | | Loss Attributable to Owners of the Company | (2,387) | (414) | | Basic Loss Per Share (HK Cents) | (0.17) | (0.03) | [Condensed Consolidated Statement of Comprehensive Income](index=13&type=section&id=4.2%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group's total comprehensive income for the period was a loss of HKD 933 thousand, a deterioration from the previous year's income of HKD 489 thousand, primarily due to increased loss for the period, partially offset by a net revaluation surplus Key Data from Condensed Consolidated Statement of Comprehensive Income (For the six months ended June 30, 2025) | Indicator | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Loss for the Period | (2,240) | (807) | | Net Revaluation Surplus | 1,565 | 1,552 | | Total Comprehensive Income for the Period | (933) | 489 | | Total Comprehensive Income Attributable to Owners of the Company | (1,080) | 882 | [Condensed Consolidated Statement of Financial Position](index=14&type=section&id=4.3%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total non-current assets slightly decreased to HKD 78.052 million, net current assets remained stable at HKD 18.585 million, while net assets and equity attributable to owners of the Company both slightly decreased Key Data from Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | Indicator | 2025-06-30 (HKD Thousand) | 2024-12-31 (HKD Thousand) | | :--- | :--- | :--- | | Total Non-Current Assets | 78,052 | 79,188 | | Total Current Assets | 32,484 | 32,859 | | Total Current Liabilities | 13,899 | 14,216 | | Net Current Assets | 18,585 | 18,643 | | Net Assets | 87,283 | 88,216 | | Equity Attributable to Owners of the Company | 89,718 | 90,798 | [Condensed Consolidated Statement of Changes in Equity](index=16&type=section&id=4.4%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, equity attributable to owners of the Company decreased from HKD 90,798 thousand at the beginning of the period to HKD 89,718 thousand at the end, primarily due to a loss for the period of HKD 2,387 thousand, partially offset by a net revaluation surplus in other comprehensive income Changes in Equity Attributable to Owners of the Company (As of June 30, 2025) | Indicator | 2025-01-01 (HKD Thousand) | Loss for the Period (HKD Thousand) | Other Comprehensive Income for the Period (HKD Thousand) | 2025-06-30 (HKD Thousand) | | :--- | :--- | :--- | :--- | :--- | | Equity Attributable to Owners of the Company | 90,798 | (2,387) | 1,307 | 89,718 | [Condensed Consolidated Statement of Cash Flows](index=17&type=section&id=4.5%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash flows from operating activities significantly decreased to HKD 1.327 million, cash outflows from investing activities increased, and cash outflows from financing activities decreased, ultimately leading to a net decrease in cash and cash equivalents of HKD 1.346 million at period-end Key Data from Condensed Consolidated Statement of Cash Flows (For the six months ended June 30, 2025) | Indicator | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Net Cash Flows from Operating Activities | 1,327 | 8,024 | | Net Cash Flows Used in Investing Activities | (443) | (86) | | Net Cash Flows Used in Financing Activities | (2,230) | (4,109) | | Net Increase/(Decrease) in Cash and Cash Equivalents | (1,346) | 3,829 | | Cash and Cash Equivalents at End of Period | 11,809 | 14,112 | [Notes to the Condensed Consolidated Financial Statements](index=19&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) [Company Information (Notes)](index=19&type=section&id=5.1%20Company%20Information%20(Notes)) This section discloses the company's place of incorporation, principal activities, ultimate holding company, functional currency, and the unaudited status of the financial information - The Company is an exempted company incorporated in the Cayman Islands under the Companies Law of the Cayman Islands, with its principal activities being **investment holding, food processing and trading, and restaurant operations**[48](index=48&type=chunk) - The Directors consider the Company's ultimate holding company to be **Kin King Ventures Limited**[48](index=48&type=chunk) - The condensed consolidated financial information is presented in **Hong Kong Dollars**, the Company's functional currency, and is **unaudited**[49](index=49&type=chunk)[50](index=50&type=chunk) [Basis of Preparation](index=19&type=section&id=5.2%20Basis%20of%20Preparation) The condensed consolidated financial information is prepared in accordance with the applicable disclosure requirements of the GEM Listing Rules and Hong Kong Accounting Standards issued by the HKICPA, using the historical cost convention, except for leasehold land and buildings held for own use, classified as right-of-use assets and property, plant and equipment, which are measured at fair value - The condensed consolidated financial information has been prepared in accordance with the applicable disclosure requirements of the GEM Listing Rules and **Hong Kong Accounting Standards** ("HKASs") issued by the Hong Kong Institute of Certified Public Accountants[51](index=51&type=chunk) - The condensed consolidated financial information has been prepared on the **historical cost basis**, except for leasehold land and buildings held for own use, classified as right-of-use assets and property, plant and equipment respectively, which are measured at **fair value**[51](index=51&type=chunk) [Accounting Policies](index=20&type=section&id=5.3%20Accounting%20Policies) The accounting policies adopted in the preparation of the unaudited interim condensed consolidated financial information are consistent with those used for the Group's financial information for the year ended December 31, 2024 - The accounting policies adopted in the preparation of the unaudited interim condensed consolidated financial information are **consistent** with those used for the Group's financial information for the year ended December 31, 2024[52](index=52&type=chunk) - The adoption of new and revised Hong Kong Financial Reporting Standards has **no significant impact** on the results and financial position[53](index=53&type=chunk) [Segment Information](index=20&type=section&id=5.4%20Segment%20Information) The Group has two reportable operating segments: food processing and trading (including transportation services) and restaurant operations - The Group is organised into **two reportable operating segments** based on products and services: food processing and trading (including provision of transportation services) and restaurant operations[54](index=54&type=chunk)[56](index=56&type=chunk) Segment Revenue and Results (For the six months ended June 30, 2025) | Segment | 2025 Revenue (HKD Thousand) | 2024 Revenue (HKD Thousand) | 2025 Results (HKD Thousand) | 2024 Results (HKD Thousand) | | :--- | :--- | :--- | :--- | :--- | | Food Processing and Trading | 48,289 | 43,564 | (2,561) | (2,960) | | Restaurant Operations | 6,817 | 10,608 | 324 | 2,143 | | Total | 55,106 | 54,172 | (2,237) | (817) | - No further analysis of geographical information is presented as **all the Group's revenue from external customers is derived from Hong Kong**, and **all non-current assets are located in Hong Kong**[58](index=58&type=chunk) - **Customer A** is a major customer of the food processing and trading segment, contributing **HKD 22,171 thousand in revenue** for the six months ended June 30, 2025[58](index=58&type=chunk) [Revenue](index=22&type=section&id=5.5%20Revenue) For the six months ended June 30, 2025, the Group's total revenue from contracts with customers was HKD 55.1 million Revenue Breakdown (For the six months ended June 30, 2025) | Type of Goods or Services | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Sales of Food | 48,249 | 43,534 | | Revenue from Provision of Transportation Services | 40 | 30 | | Revenue from Restaurant Operations | 6,817 | 10,608 | | Total | 55,106 | 54,172 | - Performance obligations for **food sales and restaurant operations** are satisfied at a **point in time** upon delivery of products or completion of services, while performance obligations for **provision of transportation services** are satisfied **over time**[60](index=60&type=chunk)[61](index=61&type=chunk)[62](index=62&type=chunk) [Loss Before Tax](index=25&type=section&id=5.6%20Loss%20Before%20Tax) For the six months ended June 30, 2025, the Group's loss before tax was HKD 2.24 million, primarily impacted by increased cost of inventories consumed and total depreciation, while employee benefit expenses and bank interest income decreased Key Components of Loss Before Tax (For the six months ended June 30, 2025) | Indicator | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Cost of Inventories Consumed | 32,813 | 29,766 | | Total Depreciation | 3,338 | 3,107 | | Total Employee Benefit Expenses | 12,425 | 12,879 | | Bank Interest Income | (47) | (95) | [Income Tax](index=26&type=section&id=5.7%20Income%20Tax) For the six months ended June 30, 2025, the Group recorded no income tax expense or credit - For the six months ended June 30, 2025, **no income tax expense or credit** was recorded[65](index=65&type=chunk) - Hong Kong profits tax is provided at **16.5%** on the estimated assessable profits arising in Hong Kong, with the first **HKD 2,000,000** for qualifying subsidiaries taxed at a rate of **8.25%** under the two-tiered profits tax rate regime[64](index=64&type=chunk) [Dividends](index=26&type=section&id=5.8%20Dividends) The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does **not recommend the payment of an interim dividend** for the six months ended June 30, 2025 (2024: nil)[65](index=65&type=chunk) [Earnings/(Loss) Per Share](index=27&type=section&id=5.9%20Earnings%2F(Loss)%20Per%20Share) For the six months ended June 30, 2025, the basic loss per share attributable to owners of the Company was HKD 0.17 cents, an increase from the prior year Earnings/(Loss) Per Share (For the six months ended June 30, 2025) | Indicator | 2025 (HK Cents) | 2024 (HK Cents) | | :--- | :--- | :--- | | Basic Loss Per Share | (0.17) | (0.03) | - The weighted average number of ordinary shares in issue used for calculating basic loss per share was **1,400,000 thousand shares**[67](index=67&type=chunk) - No diluted adjustment was made to the basic loss per share presented for the six months ended June 30, 2025 and 2024, as the Group had **no potentially dilutive ordinary shares** in issue during these periods[67](index=67&type=chunk) [Trade Receivables](index=28&type=section&id=5.10%20Trade%20Receivables) As of June 30, 2025, the Group's net book value of trade receivables was HKD 11.568 million, primarily from third-party customers Net Book Value and Ageing Analysis of Trade Receivables (As of June 30, 2025) | Indicator | 2025-06-30 (HKD Thousand) | 2024-12-31 (HKD Thousand) | | :--- | :--- | :--- | | Net Book Value | 11,568 | 11,795 | | Of which: Third-party Customers | 10,613 | 11,345 | | Related Companies | 1,367 | 862 | | Impairment | (412) | (412) | | Ageing: Within 1 month | 9,707 | 6,851 | | 1 to 2 months | 1,495 | 3,828 | | 2 to 3 months | 366 | 1,116 | - The Group's trade terms with customers are primarily on a credit basis, with credit periods generally ranging from **30 to 45 days**[68](index=68&type=chunk) - The Group strives to maintain **strict control over outstanding receivables** to minimize credit risk and holds no collateral or other credit enhancements for its trade receivables balances[68](index=68&type=chunk) [Balances with Related Parties and Ultimate Holding Company](index=29&type=section&id=5.11%20Balances%20with%20Related%20Parties%20and%20Ultimate%20Holding%20Company) Balances with related companies are non-trade in nature, unsecured, interest-free, and repayable on demand - Balances with related companies are **non-trade in nature, unsecured, interest-free, and repayable on demand**[69](index=69&type=chunk) [Trade and Bills Payables](index=29&type=section&id=5.12%20Trade%20and%20Bills%20Payables) As of June 30, 2025, the Group's total trade and bills payables amounted to HKD 4.179 million, primarily to third-party suppliers, with settlement terms typically ranging from 30 to 60 days Total Trade and Bills Payables and Ageing Analysis (As of June 30, 2025) | Indicator | 2025-06-30 (HKD Thousand) | 2024-12-31 (HKD Thousand) | | :--- | :--- | :--- | | Total Trade and Bills Payables | 4,179 | 3,866 | | Of which: Third-party Suppliers | 4,179 | 3,327 | | Related Companies | – | 539 | | Ageing: Within 1 month | 4,179 | 3,866 | - Trade payables are **non-interest bearing** and usually have settlement periods of **30 to 60 days**[69](index=69&type=chunk) [Interest-bearing Bank Borrowings](index=30&type=section&id=5.13%20Interest-bearing%20Bank%20Borrowings) As of June 30, 2025, the Group's total interest-bearing bank borrowings amounted to HKD 2.014 million, all of which are secured loans with an effective interest rate of prime rate minus 3.0%, maturing between July 2025 and 2030 Interest-bearing Bank Borrowings (As of June 30, 2025) | Type | Effective Interest Rate (%) | Maturity Date | 2025-06-30 (HKD Thousand) | 2024-12-31 (HKD Thousand) | | :--- | :--- | :--- | :--- | :--- | | Current Bank Loans | Prime rate minus 3.0 | July 2025 to June 2026 | 376 | 372 | | Non-Current Bank Loans | Prime rate minus 3.0 | July 2026 to 2030 | 1,638 | 1,827 | | **Total** | | | **2,014** | **2,199** | - All bank loans are **secured**[70](index=70&type=chunk) [Share Capital](index=30&type=section&id=5.14%20Share%20Capital) As of June 30, 2025, the Company's authorised share capital was HKD 100,000 thousand, with issued and fully paid share capital of HKD 14,000 thousand, corresponding to 1,400,000,000 ordinary shares of HKD 0.01 each Share Capital Details (As of June 30, 2025) | Type | Number of Shares | Par Value (HKD/Share) | Amount (HKD Thousand) | | :--- | :--- | :--- | :--- | | Authorised Ordinary Shares | 10,000,000,000 | 0.01 | 100,000 | | Issued and Fully Paid Ordinary Shares | 1,400,000,000 | 0.01 | 14,000 | [Contingent Liabilities](index=31&type=section&id=5.15%20Contingent%20Liabilities) As of the end of the reporting period, the Group had no significant contingent liabilities - As of the end of the reporting period, the Group had **no significant contingent liabilities**[72](index=72&type=chunk) [Commitments](index=31&type=section&id=5.16%20Commitments) As of the end of the reporting period, the Group had no capital commitments - As of the end of the reporting period, the Group had **no capital commitments**[73](index=73&type=chunk) [Related Party Transactions](index=31&type=section&id=5.17%20Related%20Party%20Transactions) This section discloses significant related party transactions between the Group and several directors and their associates (e.g., Yau Hing, Wing Chi, Wing's Group), including sales of goods, purchases, and transportation service revenue, all conducted on mutually agreed terms - The Group identified Ms. Yeung Suk Ying, Yau Hing, Yau Yip Property Investment Limited, Guangzhou Geyun, Wing Chi, Wing's Holdings Limited and its subsidiaries as **related parties**[74](index=74&type=chunk) Significant Related Party Transactions (For the six months ended June 30, 2025) | Related Party | Type of Transaction | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | :--- | | Yau Hing | Sales of Goods | 3,930 | 2,787 | | Yau Hing | Transportation Service Revenue | 40 | 30 | | Wing Chi | Sales of Goods | 706 | – | | Wing Chi | Purchases of Goods | 2,878 | 875 | | Wing's Group | Sales of Goods | 3,524 | 2,980 | - Transactions with related companies were conducted on **mutually agreed terms and conditions**[77](index=77&type=chunk) - Total remuneration for the Group's key management personnel amounted to **HKD 2.83 million** (2024: HKD 2.498 million)[77](index=77&type=chunk) [Approval of Condensed Consolidated Financial Statements](index=33&type=section&id=5.18%20Approval%20of%20Condensed%20Consolidated%20Financial%20Statements) The condensed consolidated financial statements were approved and authorized for issue by the Board of Directors on August 8, 2025 - The condensed consolidated financial statements were **approved and authorized for issue by the Board** on August 8, 2025[78](index=78&type=chunk)

[Interim Results Summary](index=1&type=section&id=Interim%20Results%20Summary) [Interim Results Summary Table](index=1&type=section&id=Interim%20Results%20Summary%20Table) For the six months ended June 30, 2025, the company's revenue decreased by 20.8% year-on-year to RMB 821.8 million, but gross profit margin significantly increased by 6.2 percentage points to 52.2%. Loss for the period narrowed substantially by 78.3%, and adjusted net profit of RMB 10.3 million was achieved, turning around from an adjusted net loss of RMB 160.7 million in the prior year period | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 821,752 | 1,037,343 | (20.8) | | Gross Profit | 429,080 | 477,322 | (10.1) | | Gross Profit Margin (%) | 52.2 | 46.0 | 6.2 percentage points | | Loss for the Period | (35,429) | (163,353) | (78.3) | | Adjusted Net Profit/(Loss) for the Period | 10,347 | (160,690) | (106.4) | | Adjusted Net Profit/(Loss) Margin (%) | 1.3 | (15.5) | 16.8 percentage points | - The company achieved its first adjusted net profit of **RMB 10.3 million**, successfully turning around losses, with an adjusted net profit margin of **1.3%**[3](index=3&type=chunk) [Management Discussion and Analysis](index=2&type=section&id=Management%20Discussion%20and%20Analysis) [Overall Strategy and Performance Overview](index=2&type=section&id=Overall%20Strategy%20and%20Performance%20Overview) Keep successfully advanced its dual strategy of AI-driven platform architecture transformation and operational turnaround in H1 2025, achieving adjusted net profit by streamlining non-core businesses, optimizing product structure, and enhancing gross margin and operational efficiency for long-term sustainable development - The company focused on two strategic directions: advancing AI-driven platform architecture transformation and achieving an operational turnaround[6](index=6&type=chunk) - In H1 2025, the company completed AI infrastructure reconstruction, launched the basic AI coach, and achieved adjusted net profit, marking a profitability inflection point[6](index=6&type=chunk)[8](index=8&type=chunk)[9](index=9&type=chunk) - Total revenue contracted by **20.8%** to **RMB 821.8 million** year-on-year, primarily due to the company's strategic focus on AI and active streamlining of non-core, low-efficiency businesses[9](index=9&type=chunk) - Gross profit margin increased by **6.2 percentage points** year-on-year to **52.2%** for the period, benefiting from improved gross margins in online, consumer goods, and advertising businesses[9](index=9&type=chunk) [Key Operating Data](index=2&type=section&id=Key%20Operating%20Data) Despite a decrease in average monthly active users and subscribers, membership penetration and average monthly revenue per MAU increased, reflecting the company's strategic shift to prioritize user activity and retention over scale expansion before the AI product system is fully developed | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Average Monthly Active Users (thousands) | 22,486 | 29,660 | | Average Monthly Revenue Per Monthly Active User (RMB) | 6.1 | 5.8 | | Average Monthly Subscribing Members (thousands) | 2,787 | 3,282 | | Membership Penetration | 12.4% | 11.1% | - Membership penetration reached **12.4%**, an increase from **11.1%** in the same period of 2024[10](index=10&type=chunk) - Average monthly revenue per monthly active user increased year-on-year to **RMB 6.1**, a **4.5%** increase from **RMB 5.8** in the prior year period[10](index=10&type=chunk) - Customer acquisition costs decreased by approximately **60%** year-on-year, reflecting the company's optimized marketing efficiency[10](index=10&type=chunk) [Reshaping Online Fitness Services: Centered on AI-Powered and Data-Driven Coaching Services](index=4&type=section&id=Reshaping%20Online%20Fitness%20Services%3A%20Centered%20on%20AI-Powered%20and%20Data-Driven%20Coaching%20Services) Keep is transforming from a content-driven platform to an AI-driven, data-centric fitness intelligent entity, achieving key AI milestones in H1 2025, including Multi-Agent System (MAS) implementation, AI coach core function iteration, and AIGC workflow innovation, aiming to provide personalized, intelligent, and scientific fitness experiences - Keep is transforming from a content-driven platform to an AI-driven, data-centric fitness intelligent entity[12](index=12&type=chunk) - In H1 2025, three major AI milestones were completed: Multi-Agent System (MAS) implementation, AI coach core function iteration, and Artificial Intelligence Generated Content (AIGC) workflow innovation[12](index=12&type=chunk) [AI Milestones and Core Functions](index=4&type=section&id=AI%20Milestones%20and%20Core%20Functions) The company successfully deployed MAS infrastructure, integrated large language models with fitness tools, and launched the trial version of its first AI coach 'Kaka,' enhancing personalized training, voice guidance, diet tracking, data analysis, and posture assessment capabilities, while upgrading AIGC content architecture to improve course production efficiency and personalization - Achieved Multi-Agent System (MAS) infrastructure construction, integrating large language models with full-platform fitness tool services, and optimizing the self-developed vertical model Kinetic.ai[13](index=13&type=chunk) - Launched the trial version of its first AI coach 'Kaka' in March 2025, offering personalized training plan generation, voice guidance, diet recording and suggestions, exercise data recording and analysis, and posture and movement assessment functions[13](index=13&type=chunk) - Through a triple upgrade of the AIGC content architecture, AI training plans were launched (covering **70%** of user needs), new course production processes and evaluation systems were established (covering **50%** of course demand points), and AI voice guidance scenarios were implemented[14](index=14&type=chunk) [Early Achievements and Outlook of AI Coach 'Kaka'](index=5&type=section&id=Early%20Achievements%20and%20Outlook%20of%20AI%20Coach%20%27Kaka%27) AI coach 'Kaka' has opened core functions to all users, showing positive early trends with over **150,000** AI core daily active users (DAU), particularly in AI diet recording, which demonstrates significant retention advantages. Future plans include a tiered coaching service matrix to drive member ARPU growth and a self-reinforcing flywheel effect for user scale, membership penetration, and commercial value growth - AI coach 'Kaka' has opened core functions to all users, with usage frequency restrictions for non-members[15](index=15&type=chunk) - According to July 2025 data, AI core daily active users (DAU) exceeded **150,000**[15](index=15&type=chunk) - The AI diet recording function covers **one-third** of AI dialogue users, with a next-day retention rate of **50%**, and has boosted the App DAU retention rate to **79%**[15](index=15&type=chunk) - Looking ahead, the company plans to launch a tiered coaching service matrix to drive growth in member Average Revenue Per User (ARPU) and achieve triple growth in user scale, membership penetration, and commercial value through a self-reinforcing flywheel effect[16](index=16&type=chunk) [Online Sports Events and Advertising Business](index=5&type=section&id=Online%20Sports%20Events%20and%20Advertising%20Business) Online sports event revenue contracted due to insufficient top-tier IP event scheduling, but the company is solidifying long-term development by optimizing operations, focusing on niche categories, and enhancing the medal event system. Advertising and other segments saw overall revenue decline due to Keepland's closure, yet advertising revenue remained stable with a significant gross margin improvement, and the K-MARS city running IP event performed strongly - Online sports event business revenue contracted, primarily due to insufficient scheduling of top-tier IP events[16](index=16&type=chunk) - The company optimized event business processes, focused on niche categories like ACG and gaming, and enhanced the medal event operating system[16](index=16&type=chunk) - Overall revenue for the advertising and other segments decreased year-on-year, mainly due to the gradual closure of Keepland operations, but advertising revenue remained stable year-on-year[17](index=17&type=chunk) - Gross profit margin for the advertising and other segments increased by **34.7 percentage points**, primarily benefiting from optimized advertising business costs and the positive impact of Keepland's closure[17](index=17&type=chunk) - The advertising business focused on building the K-MARS city running IP event, achieving increases in both advertiser industry coverage and average customer transaction value[17](index=17&type=chunk) [Consumer Goods Business](index=6&type=section&id=Consumer%20Goods%20Business) Facing consumer recovery pressure and intensified industry competition, Keep's consumer goods business drove profitability improvement through structural optimization. Revenue for the period was approximately **RMB 400 million**, with gross profit margin increasing by **3.3 percentage points** year-on-year to **34.8%**, primarily due to category structure optimization, refined channel operations, and supply chain efficiency improvements - Consumer goods business revenue was approximately **RMB 400 million**, with gross profit margin increasing by **3.3 percentage points** year-on-year to **34.8%**[19](index=19&type=chunk) - Category structure optimization: actively scaled back low-margin businesses (e.g., large home fitness equipment) and developed high-potential categories such as equipment, apparel, and wearables[19](index=19&type=chunk) - Refined channel operations: established a 'category-channel' profit and loss analysis model, focusing on improving operational capabilities on third-party e-commerce platforms like Tmall and Douyin[19](index=19&type=chunk) - Supply chain efficiency: core categories leveraged economies of scale and engineering cost reduction to deepen supply chain integration efficiency[20](index=20&type=chunk) [Category Structure Optimization](index=6&type=section&id=Category%20Structure%20Optimization) The company actively scaled back low-margin businesses in consumer goods, shifting to high-potential categories. Equipment business contributed over **50%** of revenue, enhancing competitiveness through differentiated positioning and product iteration. Apparel focused on aesthetic design, constructing all-season development capabilities. Smart wearables evolved around vertical scenarios, strengthening software differentiation. Food business advanced health-oriented product iteration and improved supply chain efficiency - Equipment business revenue contribution increased to over **50%**, enhancing competitiveness through differentiated product positioning, classic product iteration, and filling missing categories[19](index=19&type=chunk) - Apparel business improved merchandise operational capabilities, focusing on aesthetic design and building all-season product development capabilities[19](index=19&type=chunk) - Smart wearables continued to evolve around vertical scenarios, with watches focusing on advanced runner needs and bands expanding to interest-based sports users[19](index=19&type=chunk) [Refined Channel Operations and Supply Chain Efficiency](index=6&type=section&id=Refined%20Channel%20Operations%20and%20Supply%20Chain%20Efficiency) The company refined operations on third-party e-commerce platforms like Tmall and Douyin, and expanded distribution channels by building a 'category-channel' profit and loss analysis model to increase the share of high-potential emerging channels. Concurrently, it deepened supply chain integration efficiency through scale and engineering cost reductions, optimizing core category costs and enhancing overall operational efficiency and profitability - Established a 'category-channel' horizontal and vertical profit and loss analysis model, focusing on improving operational capabilities on third-party e-commerce platforms like Tmall and Douyin, and enhancing marketing efficiency[19](index=19&type=chunk) - Core categories leveraged economies of scale and engineering cost reduction to deepen supply chain integration efficiency[20](index=20&type=chunk) [Future Outlook](index=7&type=section&id=Future%20Outlook) For H2 2025, the company will simultaneously advance gross margin improvement and operational efficiency optimization strategies, and while ensuring profitability, seize key marketing windows to enhance product exposure and drive business scale recovery. This includes continuous iteration of AI coach core capabilities, enhancing consumer product strength, and focusing on AI-driven motion tracking, real-time health monitoring, and other innovative technologies through self-development and fund investments for long-term sustainable growth - In H2 2025, the company will simultaneously advance strategies for gross margin improvement and operational efficiency optimization, and while ensuring profitability, enhance product exposure to drive business scale recovery[21](index=21&type=chunk) - Continuously iterate AI coach core capabilities and strengthen exposure at key nodes to attract user return[21](index=21&type=chunk) - Enhance consumer goods business product strength, driving scale growth through precise channel expansion and increased volume in high-potential categories[21](index=21&type=chunk) - Smart wearables business will focus on long-term innovation in sports science and breakthroughs in next-generation products around AI, paying attention to AI-driven motion tracking, real-time health monitoring, and personalized training and other innovative technologies[22](index=22&type=chunk) [Financial Review](index=8&type=section&id=Financial%20Review) [Revenue](index=8&type=section&id=Revenue) For the six months ended June 30, 2025, total revenue was RMB 821.8 million, a year-on-year decrease of 20.8%, primarily due to reduced revenue from self-branded sports products and online membership and paid content, linked to the company's active streamlining of inefficient categories and decreased online sports event revenue | Revenue Source | 2025 (RMB thousands) | 2024 (RMB thousands) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Self-branded Sports Products | 396,650 | 501,477 | (20.9) | | Online Membership and Paid Content | 337,122 | 436,996 | (22.9) | | Advertising and Other | 87,980 | 98,870 | (11.0) | | **Total** | **821,752** | **1,037,343** | **(20.8)** | - Revenue from self-branded sports products decreased by **20.9%**, primarily due to the active streamlining of inefficient categories[23](index=23&type=chunk) - Revenue from online membership and paid content decreased by **22.9%**, mainly due to reduced online sports event revenue[24](index=24&type=chunk) - Advertising and other revenue decreased by **11.0%**, primarily due to the gradual closure of Keepland operations in 2024, but advertising revenue remained stable year-on-year[24](index=24&type=chunk) [Cost of Sales](index=8&type=section&id=Cost%20of%20Sales) For the six months ended June 30, 2025, cost of sales was RMB 392.7 million, a year-on-year decrease of 29.9%, consistent with the revenue trend. Costs across all business segments significantly declined, primarily benefiting from lower inventory sales costs, supply chain optimization, reduced online sports event costs, and cost savings from Keepland's closure | Cost Source | 2025 (RMB thousands) | 2024 (RMB thousands) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Self-branded Sports Products | 258,653 | 343,301 | (24.7) | | Online Membership and Paid Content | 96,609 | 140,368 | (31.2) | | Advertising and Other | 37,410 | 76,352 | (51.0) | | **Total** | **392,672** | **560,021** | **(29.9)** | - Cost of self-branded sports products decreased by **24.7%**, primarily due to lower inventory sales costs and supply chain optimization[27](index=27&type=chunk) - Cost of online membership and paid content decreased by **31.2%**, mainly attributable to reduced online sports event costs and channel expenses[28](index=28&type=chunk) - Cost of advertising and other decreased by **51.0%**, mainly attributable to optimized advertising production costs and reduced costs related to Keepland's closure[28](index=28&type=chunk) [Gross Profit and Gross Profit Margin](index=9&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) Despite a 10.1% decrease in total gross profit due to reduced revenue, the total gross profit margin significantly increased by 6.2 percentage points to 52.2%, primarily benefiting from business structure and related cost optimization. Gross profit margins improved across all business segments, with the advertising and other segment showing the largest increase - Gross profit was **RMB 429.1 million**, a year-on-year decrease of **10.1%**[29](index=29&type=chunk) - Gross profit margin was **52.2%**, an increase of **6.2 percentage points** from the prior year period, primarily due to business structure and related cost optimization[29](index=29&type=chunk) - Gross profit margin for self-branded sports products increased by **3.3 percentage points** to **34.8%**[29](index=29&type=chunk) - Gross profit margin for online membership and paid content increased by **3.4 percentage points** to **71.3%**[30](index=30&type=chunk) - Gross profit margin for advertising and other increased by **34.7 percentage points** to **57.5%**[30](index=30&type=chunk) [Operating Expenses](index=10&type=section&id=Operating%20Expenses) During the reporting period, all operating expenses decreased. Fulfillment expenses, selling and marketing expenses, administrative expenses, and research and development expenses decreased by 29.3%, 30.9%, 8.5% and 17.0% respectively, primarily due to reduced sales, optimized promotion efficiency, lower professional fees, and increased labor productivity from AI technology enhancements - Fulfillment expenses were **RMB 43.8 million**, a year-on-year decrease of **29.3%**, primarily due to reduced sales of self-branded sports products and online sports events, as well as optimized logistics and warehousing expenses[31](index=31&type=chunk) - Selling and marketing expenses were **RMB 223.5 million**, a year-on-year decrease of **30.9%**, primarily benefiting from optimized promotion efficiency, with brand and marketing promotion expenses decreasing by **RMB 102.8 million**[32](index=32&type=chunk) - Administrative expenses were **RMB 82.8 million**, a year-on-year decrease of **8.5%**, primarily due to reduced professional fees, partially offset by an increase in share-based compensation expenses[33](index=33&type=chunk) - Research and development expenses were **RMB 162.4 million**, a year-on-year decrease of **17.0%**, primarily due to reduced R&D personnel costs and increased labor productivity from AI technology enhancements[34](index=34&type=chunk) [Loss/Profit for the Period](index=11&type=section&id=Loss%2FProfit%20for%20the%20Period) For the six months ended June 30, 2025, the company's loss significantly narrowed to RMB 35.4 million, a 78.3% reduction from RMB 163.4 million in the prior year period. After adjustments, the company achieved a net profit of RMB 10.3 million, successfully turning around losses, primarily due to increased gross profit margin and reduced operating expenses - Loss for the period was **RMB 35.4 million**, a **78.3%** decrease from **RMB 163.4 million** in the prior year period[35](index=35&type=chunk) - Adjusted net profit (non-IFRS measure) was **RMB 10.3 million**, compared to an adjusted net loss of **RMB 160.7 million** in the prior year period, achieving a turnaround to profitability[35](index=35&type=chunk) [Non-IFRS Measures](index=11&type=section&id=Non-IFRS%20Measures) The company uses adjusted net profit/(loss) as an additional financial measure to supplement IFRS-presented consolidated financial information. This metric is defined as loss for the period excluding share-based compensation expenses, as it does not involve cash outflow, helping investors more clearly assess operating performance - Adjusted net profit/(loss) is defined as loss for the period, excluding share-based compensation expenses, as it does not involve cash outflow[36](index=36&type=chunk) Adjusted Net Profit/(Loss) for the Period (RMB thousands) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Loss for the Period | (35,429) | (163,353) | | Share-based Compensation Expenses | 45,776 | 2,663 | | **Adjusted Net Profit/(Loss) for the Period** | **10,347** | **(160,690)** | [Liquidity and Capital Resources](index=12&type=section&id=Liquidity%20and%20Capital%20Resources) [Total Available Funds](index=12&type=section&id=Total%20Available%20Funds) As of June 30, 2025, the company's total available funds were RMB 1 billion, a decrease from RMB 1.2 billion as of December 31, 2024. Available funds primarily include cash and cash equivalents, short-term time deposits, restricted bank deposits, and short-term investments, mostly denominated in USD and RMB - As of June 30, 2025, total available funds were **RMB 1 billion**, compared to **RMB 1.2 billion** as of December 31, 2024[39](index=39&type=chunk) - Total available funds include cash and cash equivalents, short-term time deposits, restricted bank deposits, and short-term investments[39](index=39&type=chunk) [Cash and Cash Equivalents](index=12&type=section&id=Cash%20and%20Cash%20Equivalents) As of June 30, 2025, the company's cash and cash equivalents were RMB 534.0 million, a decrease from RMB 764.3 million as of December 31, 2024, primarily due to investments in financial assets and cash used in operating activities - As of June 30, 2025, cash and cash equivalents were **RMB 534.0 million**, compared to **RMB 764.3 million** as of December 31, 2024[39](index=39&type=chunk) - The decrease in cash and cash equivalents was primarily due to investments in financial assets and cash used in operating activities[39](index=39&type=chunk) [Other Financial Information](index=13&type=section&id=Other%20Financial%20Information) [Material Investments](index=13&type=section&id=Material%20Investments) As of June 30, 2025, the company held no material investments representing 5% or more of the Group's total assets - As of June 30, 2025, the company held no material investments representing **5%** or more of the Group's total assets[40](index=40&type=chunk) [Material Acquisitions and/or Disposals of Subsidiaries, Associates and Joint Ventures](index=13&type=section&id=Material%20Acquisitions%20and%2For%20Disposals%20of%20Subsidiaries%2C%20Associates%20and%20Joint%20Ventures) During the reporting period, the company did not undertake any material acquisitions and/or disposals of subsidiaries, associates, and joint ventures - During the reporting period, the company did not undertake any material acquisitions and/or disposals of subsidiaries, associates, and joint ventures[41](index=41&type=chunk) [Future Plans for Material Investments and Capital Assets](index=13&type=section&id=Future%20Plans%20for%20Material%20Investments%20and%20Capital%20Assets) As of the date of this announcement, the company has no other specific future plans for material investments and capital assets - As of the date of this announcement, the company has no other specific future plans for material investments and capital assets[42](index=42&type=chunk) [Employees and Remuneration](index=13&type=section&id=Employees%20and%20Remuneration) As of June 30, 2025, the company had 669 full-time employees. Total employee benefit expenses were RMB 270.2 million, a decrease from the prior year period. The company offers competitive remuneration and benefits, along with comprehensive career development and talent cultivation systems - As of June 30, 2025, the number of full-time employees was **669**[43](index=43&type=chunk) - Total employee benefit expenses were **RMB 270.2 million**, a decrease from **RMB 282.0 million** in the prior year period[43](index=43&type=chunk) [Bank Borrowings and Gearing Ratio](index=13&type=section&id=Bank%20Borrowings%20and%20Gearing%20Ratio) As of June 30, 2025, the company had no outstanding bank borrowings. The gearing ratio improved to 0.25 from 0.29 as of December 31, 2024, indicating a more robust financial structure - As of June 30, 2025, the company had no outstanding bank borrowings[44](index=44&type=chunk) - The gearing ratio was **0.25**, an improvement from **0.29** as of December 31, 2024[44](index=44&type=chunk) [Contingent Liabilities](index=14&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the company had no material contingent liabilities or guarantees - As of June 30, 2025, the company had no material contingent liabilities or guarantees[45](index=45&type=chunk) [Pledge of Assets](index=14&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the company had no material pledge of assets - As of June 30, 2025, the company had no material pledge of assets[46](index=46&type=chunk) [Interest Rate Risk and Foreign Exchange Risk](index=14&type=section&id=Interest%20Rate%20Risk%20and%20Foreign%20Exchange%20Risk) The company's exposure to interest rate risk and foreign exchange risk is not material, primarily because it holds no significant assets or liabilities accounted for at floating rates, most transactions are settled in RMB, and financial assets and liabilities are mainly composed of fixed-rate instruments - The company's interest rate risk is not material, primarily because it holds no significant assets or liabilities accounted for at floating rates[47](index=47&type=chunk) - The company's foreign exchange risk is not material, primarily because most transactions are settled in RMB, and it holds no significant financial assets or liabilities denominated in currencies other than its functional currency[47](index=47&type=chunk) [Condensed Consolidated Financial Statements](index=15&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss](index=15&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, the company reported revenue of RMB 821.8 million and gross profit of RMB 429.1 million. Operating loss significantly narrowed to RMB 42.4 million, with loss for the period at RMB 35.4 million, and basic and diluted loss per share both at RMB 0.08 | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 821,752 | 1,037,343 | | Cost of Sales | (392,672) | (560,021) | | Gross Profit | 429,080 | 477,322 | | Operating Loss | (42,353) | (187,816) | | Loss Before Income Tax | (35,429) | (163,353) | | Loss for the Period Attributable to Owners of the Company | (35,429) | (163,353) | | Basic Loss Per Share (RMB) | (0.08) | (0.35) | | Diluted Loss Per Share (RMB) | (0.08) | (0.35) | [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=16&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 loss for the period was RMB 35.4 million. Other comprehensive expenses primarily included currency translation differences of RMB 2.8 million, resulting in a total comprehensive expense for the period attributable to owners of the company of RMB 38.2 million, a significant narrowing from the prior year period | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Loss for the Period | (35,429) | (163,353) | | Currency Translation Differences | (2,787) | 7,518 | | Total Comprehensive Expense for the Period Attributable to Owners of the Company | (38,216) | (155,835) | [Condensed Consolidated Statement of Financial Position](index=17&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets were RMB 1.7946 billion, a decrease from RMB 1.9058 billion as of December 31, 2024. Total equity was RMB 1.3503 billion, and total liabilities were RMB 444.3 million, maintaining a robust asset and liability structure | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | **Assets** | | | | Non-current Assets | 263,259 | 169,867 | | Current Assets | 1,531,378 | 1,735,935 | | **Total Assets** | **1,794,637** | **1,905,802** | | **Equity** | | | | Total Equity | 1,350,331 | 1,355,802 | | **Liabilities** | | | | Non-current Liabilities | 8,334 | 23,101 | | Current Liabilities | 435,972 | 526,899 | | **Total Liabilities** | **444,306** | **550,000** | | **Total Equity and Liabilities** | **1,794,637** | **1,905,802** | [Notes to the Condensed Consolidated Interim Financial Information](index=19&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Information) [General Information](index=19&type=section&id=General%20Information) Keep Inc. was incorporated in the Cayman Islands on April 21, 2015, and listed on the Main Board of the Hong Kong Stock Exchange on July 12, 2023. The company and its subsidiaries primarily operate an integrated online and offline fitness service platform and online retail of fitness-related products in China, with Mr. Wang Ning as the single largest shareholder - Keep Inc. was incorporated in the Cayman Islands on April 21, 2015, and listed on the Main Board of the Hong Kong Stock Exchange on July 12, 2023[52](index=52&type=chunk) - The company primarily operates an integrated online and offline fitness service platform and online retail of fitness-related products in China[52](index=52&type=chunk) - Mr. Wang Ning is the single largest shareholder of the company[53](index=53&type=chunk) [Basis of Preparation](index=19&type=section&id=Basis%20of%20Preparation) The unaudited condensed consolidated interim financial information for the six months ended June 30, 2025, was prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting' and applicable disclosure requirements of the Hong Kong Stock Exchange Listing Rules, consistent with accounting policies used for the consolidated financial statements for the year ended December 31, 2024 - The unaudited condensed consolidated interim financial information was prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting' and applicable disclosure requirements of the Hong Kong Stock Exchange Listing Rules[55](index=55&type=chunk) - The accounting policies adopted are consistent with those used for the consolidated financial statements for the year ended December 31, 2024[55](index=55&type=chunk) [Adoption of New and Revised IFRS Accounting Standards](index=19&type=section&id=Adoption%20of%20New%20and%20Revised%20IFRS%20Accounting%20Standards) The Group first applied IAS 21 (Amendment) 'Lack of Exchangeability' from January 1, 2025, but did not change its accounting policies or make retrospective adjustments as a result - The Group first applied IAS 21 (Amendment) 'Lack of Exchangeability' from January 1, 2025[56](index=56&type=chunk) - The Group did not change its accounting policies or make retrospective adjustments as a result of adopting the above revised standard[56](index=56&type=chunk) [Segment Information](index=20&type=section&id=Segment%20Information) The company's chief operating decision-maker assesses the performance of three operating segments based on revenue and gross profit: self-branded sports products, online membership and paid content, and advertising and other. During the reporting period, revenue and gross profit varied across segments, with no material inter-segment sales, and the vast majority of operations and non-current assets are located in China - The company's operating segments include: self-branded sports products, online membership and paid content, and advertising and other[57](index=57&type=chunk)[60](index=60&type=chunk) - The chief operating decision-maker primarily assesses the performance of operating segments based on their revenue and gross profit[57](index=57&type=chunk) Segment Results for the Six Months Ended June 30, 2025 (RMB thousands) | Segment | Revenue | Cost of Sales | Gross Profit | | :--- | :--- | :--- | :--- | | Self-branded Sports Products | 396,650 | (258,653) | 137,997 | | Online Membership and Paid Content | 337,122 | (96,609) | 240,513 | | Advertising and Other | 87,980 | (37,410) | 50,570 | | **Total** | **821,752** | **(392,672)** | **429,080** | Segment Results for the Six Months Ended June 30, 2024 (RMB thousands) | Segment | Revenue | Cost of Sales | Gross Profit | | :--- | :--- | :--- | :--- | | Self-branded Sports Products | 501,477 | (343,301) | 158,176 | | Online Membership and Paid Content | 436,996 | (140,368) | 296,628 | | Advertising and Other | 98,870 | (76,352) | 22,518 | | **Total** | **1,037,343** | **(560,021)** | **477,322** | [Revenue](index=21&type=section&id=Revenue) For the six months ended June 30, 2025, total revenue was RMB 821.8 million. Revenue breakdown shows online retail and wholesale channel sales constitute self-branded sports product revenue, with online membership and paid content, and advertising and other as the other two major revenue sources | Revenue Source | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | **Self-branded Sports Products** | | | | – Online Retail | 230,142 | 337,647 | | – Wholesale Channel Sales | 166,508 | 163,830 | | Online Membership and Paid Content | 337,122 | 436,996 | | Advertising and Other | 87,980 | 98,870 | | **Total** | **821,752** | **1,037,343** | [Net Other Income](index=21&type=section&id=Net%20Other%20Income) For the six months ended June 30, 2025, net other income was RMB 13.4 million, a significant increase from RMB 2.5 million in the prior year period, primarily due to a substantial increase in net fair value gains on financial assets measured at fair value through profit or loss | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Net Loss on Disposal of Property and Equipment | (98) | (877) | | Net Fair Value Gains on Financial Assets Measured at Fair Value Through Profit or Loss | 12,127 | 4,266 | | Net Foreign Exchange Gains/(Losses) | 352 | (775) | | Investment Income from Financial Assets Measured at Amortized Cost | 170 | 334 | | Other | 835 | (417) | | **Total** | **13,386** | **2,531** | [Income Tax Expense](index=22&type=section&id=Income%20Tax%20Expense) For the six months ended June 30, 2025 and 2024, the company made no provision for PRC corporate income tax, Hong Kong profits tax, and Singapore corporate income tax, primarily due to no estimated taxable profits or available unused tax losses to offset - For the six months ended June 30, 2025 and 2024, no provision was made for PRC corporate income tax, Hong Kong profits tax, and Singapore corporate income tax[64](index=64&type=chunk) - The reason for no provision was the absence of estimated taxable profits or available unused tax losses to offset[64](index=64&type=chunk) [Loss for the Period](index=22&type=section&id=Loss%20for%20the%20Period) The Group's loss for the period was RMB 35.4 million, primarily derived after deducting items such as employee benefit expenses, cost of sales of self-branded sports products, online sports event costs, depreciation and amortization, credit loss provisions, and inventory impairment provisions | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Employee Benefit Expenses | 270,215 | 282,011 | | Cost of Sales of Self-branded Sports Products | 253,414 | 329,503 | | Online Sports Event Costs | 45,477 | 70,920 | | Depreciation of Property and Equipment | 4,235 | 5,685 | | Depreciation of Right-of-Use Assets | 8,945 | 16,637 | | Amortization of Intangible Assets | 1,328 | 1,938 | | Provision for Credit Losses on Trade and Other Receivables | 841 | 449 | | Provision for Impairment of Inventories | 312 | 5,989 | [Loss Per Share](index=23&type=section&id=Loss%20Per%20Share) For the six months ended June 30, 2025, both basic and diluted loss per share were RMB 0.08, a significant narrowing from RMB 0.35 in the prior year period. As the company incurred a loss, potential ordinary shares had an anti-dilutive effect, resulting in identical basic and diluted loss per share amounts | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Net Loss Attributable to Owners of the Company (RMB thousands) | (35,429) | (163,353) | | Weighted Average Number of Ordinary Shares in Issue (thousands of shares) | 459,558 | 469,109 | | Basic Loss Per Share (RMB) | (0.08) | (0.35) | - As the company incurred a loss during the reporting period, potential ordinary shares had an anti-dilutive effect, thus the diluted loss per share amount was the same as the basic loss per share amount[68](index=68&type=chunk) [Trade and Bills Receivables](index=23&type=section&id=Trade%20and%20Bills%20Receivables) As of June 30, 2025, trade and bills receivables totaled RMB 217.0 million. The credit period for trade receivables is generally three months, and the provision for credit losses decreased, reflecting improved trade receivables management Trade and Bills Receivables (RMB thousands) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade Receivables | 238,819 | 237,178 | | Bills Receivables | 1,600 | – | | Less: Provision for Credit Losses | (23,403) | (31,987) | | **Total** | **217,016** | **205,191** | - The credit period for trade receivables is generally three months[70](index=70&type=chunk) Aging Analysis of Trade Receivables (RMB thousands) | Aging | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 3 Months | 189,405 | 158,405 | | 3 to 6 Months | 17,581 | 23,403 | | 6 to 9 Months | 4,192 | 11,903 | | 9 Months to 1 Year | 3,117 | 2,172 | | Over 1 Year | 24,524 | 41,295 | | **Total** | **238,819** | **237,178** | - The provision for credit losses decreased from **RMB 31,987 thousand** as of December 31, 2024, to **RMB 23,403 thousand** as of June 30, 2025[70](index=70&type=chunk) [Dividends](index=25&type=section&id=Dividends) For the six months ended June 30, 2025 and 2024, the company neither paid nor declared any dividends - For the six months ended June 30, 2025 and 2024, the company neither paid nor declared any dividends[71](index=71&type=chunk) [Trade Payables](index=25&type=section&id=Trade%20Payables) As of June 30, 2025, trade payables were RMB 156.5 million, primarily for amounts due within three months. Trade payables are unsecured and typically settled within three months from the invoice date Aging Analysis of Trade Payables (RMB thousands) | Aging | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 3 Months | 156,549 | 149,240 | - Trade payables are unsecured and generally settled within three months from the invoice date[72](index=72&type=chunk) [Events After the Reporting Period](index=25&type=section&id=Events%20After%20the%20Reporting%20Period) No material events occurred after June 30, 2025, for the company or the Group - No material events occurred after June 30, 2025, for the company or the Group[73](index=73&type=chunk) [Corporate Governance and Other Information](index=26&type=section&id=Corporate%20Governance%20and%20Other%20Information) [Compliance with Corporate Governance Code](index=26&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The company adopted the Corporate Governance Code set out in Appendix C1 of the Listing Rules and complied with all applicable code provisions during the reporting period, except for the deviation where the roles of Chairman and Chief Executive Officer are combined - The company adopted the Corporate Governance Code set out in Appendix C1 of the Listing Rules[74](index=74&type=chunk) - During the reporting period, the company complied with all applicable code provisions of the Corporate Governance Code, except for the deviation where the roles of Chairman and Chief Executive Officer are combined and held by Mr. Wang Ning[74](index=74&type=chunk)[75](index=75&type=chunk) [Chairman and Chief Executive Officer](index=26&type=section&id=Chairman%20and%20Chief%20Executive%20Officer) Mr. Wang Ning currently holds both the Chairman and Chief Executive Officer positions. The Board believes this arrangement ensures consistent leadership within the Group, enhances strategic planning efficiency, and does not compromise the balance of power and authority - Mr. Wang Ning currently holds both the Chairman and Chief Executive Officer positions, deviating from Code Provision C.2.1 of the Corporate Governance Code[75](index=75&type=chunk) - The Board believes that combining these roles ensures consistent leadership within the Group, making overall strategic planning more effective and efficient[75](index=75&type=chunk) [Standard Code for Securities Transactions by Directors of Listed Issuers](index=26&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors%20of%20Listed%20Issuers) The company adopted the Standard 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' dealings in company securities. Upon enquiry, all directors confirmed strict compliance with the Standard Code during the reporting period - The company adopted the Standard Code for Securities Transactions by Directors of Listed Issuers, as set out in Appendix C3 of the Listing Rules[76](index=76&type=chunk) - All directors confirmed strict compliance with the required standards set out in the Standard Code during the reporting period[76](index=76&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=27&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) During the reporting period, the company repurchased a total of 3,207,500 shares on the Stock Exchange for a total consideration of HKD 14,805,147, aiming to benefit the company and create shareholder value. As of June 30, 2025, the company held 11,235,400 treasury shares and 3,510,600 repurchased shares pending cancellation - During the reporting period, the company repurchased a total of **3,207,500** shares on the Stock Exchange for a total consideration of **HKD 14,805,147**[77](index=77&type=chunk) Share Repurchases on the Stock Exchange | Month of Repurchase | Number of Shares Repurchased | Price Paid Per Share (Highest/Lowest HKD) | Total Consideration (HKD) | | :--- | :--- | :--- | :--- | | January 2025 | 1,300,000 | 5.66 / 4.65 | 6,447,178 | | March 2025 | 207,700 | 4.71 / 4.56 | 968,952 | | April 2025 | 1,078,800 | 4.98 / 3.76 | 4,673,227 | | May 2025 | 621,000 | 4.75 / 3.83 | 2,715,790 | | **Total** | **3,207,500** | | **14,805,147** | - As of June 30, 2025, **11,235,400** shares of the company were held as treasury shares by the company, and **3,510,600** repurchased shares of the company were pending cancellation[78](index=78&type=chunk) [Audit Committee](index=27&type=section&id=Audit%20Committee) The company's Audit Committee comprises three independent non-executive directors, with Ms. Ge Xin as Chairwoman. Its primary responsibilities include reviewing and overseeing financial reporting processes, internal control systems, and connected transactions, and it has reviewed the Group's unaudited condensed consolidated interim financial information for the six months ended June 30, 2025 - The Audit Committee comprises three independent non-executive directors, with Ms. Ge Xin as Chairwoman[79](index=79&type=chunk) - The primary responsibilities of the Audit Committee include reviewing and overseeing the Group's financial reporting processes and internal control systems, and reviewing and approving connected transactions[79](index=79&type=chunk) - The Audit Committee has reviewed the Group's unaudited condensed consolidated interim financial information for the six months ended June 30, 2025, and agreed with the accounting treatments adopted by the company[79](index=79&type=chunk) [Other Information](index=28&type=section&id=Other%20Information) [Independent External Auditor](index=28&type=section&id=Independent%20External%20Auditor) The company's independent external auditor, RSM Hong Kong, has reviewed the Group's unaudited condensed consolidated interim financial information for the six months ended June 30, 2025, in accordance with Hong Kong Standard on Review Engagements 2410 - The independent external auditor, RSM Hong Kong, has reviewed the Group's unaudited condensed consolidated interim financial information for the six months ended June 30, 2025[80](index=80&type=chunk) [Material Events After Reporting Period](index=28&type=section&id=Material%20Events%20After%20Reporting%20Period) The company is not aware of any material events that occurred from June 30, 2025, up to the date of this announcement that could affect the Group - The company is not aware of any material events that occurred from June 30, 2025, up to the date of this announcement that could affect the Group[81](index=81&type=chunk) [Use of Proceeds](index=28&type=section&id=Use%20of%20Proceeds) The net proceeds from the company's share listing, approximately HKD 192.0 million, have been and will continue to be used for the purposes stated in the prospectus, with no change in the intended use. Unutilized proceeds will be held as short-term deposits, cash, and cash equivalents with licensed banks or financial institutions - The net proceeds from the global offering, approximately **HKD 192.0 million**, have been and will continue to be used for the purposes stated in the prospectus[82](index=82&type=chunk) - As of the date of this announcement, there has been no change in the intended use of the net proceeds[82](index=82&type=chunk) [Interim Dividend](index=28&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[83](index=83&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=28&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) This interim results announcement has been published on the Stock Exchange website and the company's website. The company's interim report for the six months ended June 30, 2025, will be dispatched to shareholders and published on the aforementioned websites in due course - This interim results announcement has been published on the Stock Exchange website www.hkexnews.hk and the company's website https://keep.com[84](index=84&type=chunk) [Acknowledgement](index=29&type=section&id=Acknowledgement) The Board extends its sincere gratitude to the Group's shareholders, management team, employees, business partners, and customers for their support and contributions to the Group - The Board extends its sincere gratitude to the Group's shareholders, management team, employees, business partners, and customers[85](index=85&type=chunk) [Board of Directors](index=29&type=section&id=Board%20of%20Directors) As of the date of this announcement, the company's executive directors are Mr. Wang Ning, Mr. Peng Wei, and Mr. Liu Dong; independent non-executive directors are Ms. Ge Xin, Mr. Shan Yigang, and Mr. Wang Haining - The executive directors are Mr. Wang Ning, Mr. Peng Wei, and Mr. Liu Dong; independent non-executive directors are Ms. Ge Xin, Mr. Shan Yigang, and Mr. Wang Haining[87](index=87&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或 完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚賴該 等內容而引致的任何損失承擔任何責任。 （於百慕達註冊成立之有限公司） （股份代號：00124） 2025 年中期業績公告 摘要 | | 截至 6 月 30 | 日止六個月 | | | --- | --- | --- | --- | | | 2025 年 | 2024 年 | 變動 | | 收入（千港元） | 5,751,820 | 2,803,824 | +105.1% | | 毛利（千港元） | 2,062,754 | 115,920 | +1,679.5% | | 投資物業公允值(虧損)/收益（千港元） | (131,749) | 193 | 不適用 | | 歸屬於本公司持有者溢利/(虧損) | | | | | （千港元） | 282,053 | (217,031) | 不適用 | | 每股基本溢利/(虧損)（港仙） | 16.48 | (12.68) | 不適用 | | | 於 2025 年 | 於 2024 年 | | | | 6 ...

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。 Activation Group Holdings Limited 艾 德 韋 宣 集 團 控 股 有 限 公 司 （ 於 開 曼 群 島 註 冊 成 立 的 有 限 公 司 ） （股份代號：9919） 截至2025年6月30日止六個月的 中期業績公告 艾德韋宣集團控股有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然宣佈本公司及其附 屬公司（統稱「本集團」）截至2025年6月30日止六個月（「2025年中期」）的未經審核簡明綜合 中期業績連同截至2024年6月30日止六個月（「2024年中期」）的比較數字及於2024年12月31 日的若干比較數字。該等中期業績已經由本公司審核委員會審閱。 中期股息 為了向本公司股東「( 股東」）提供更高回報並分享本集團的成長成果，經審慎考量盈利能力、 現金流產生能力以及未來發展需求後，本公司決議宣派2025年中期股息每股本公司普通股 （「股份」）2.3港仙（2 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 對 因 本 公 告 全部或任何部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責 任。 Strawbear Entertainment Group 稻草熊娛樂集團 （於開曼群島註冊成立的有限公司） （股 份 代 號：2125） 截 至2025年6月30日止六個月的 中期業績公告 財務摘要 截 至2025年6月30日止六個月的收入約為人民幣445.7百 萬 元，較2024年同期 約人民幣846.9百萬元下降47.4%。 截 至2025年6月30日止六個月的毛利約為人民幣62.9百 萬 元，較2024年同期約 人民幣142.9百萬元下降56.0%。 截 至2025年6月30日止六個月的虧損約為人民幣5.8百 萬 元，而 截 至2024年6月 30日止六個月的溢利約為人民幣30.0百 萬 元。 截 至2025年6月30日止六個月的經調整虧損淨額*約為人民幣0.4百 萬 元，而 2024年同期的經調整純利約人民幣37.9百 萬 元。 截 至2 ...

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布之內容概不負責，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布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。 MEDIA CHINESE INTERNATIONAL LIMITED 世界華文媒體有限公司 ( 於百慕達註冊成立之有限公司 ) (馬來西亞公司編號：200702000044) (香港股份代號：685) (馬來西亞股份代號：5090) 公布 截至 2025 年 6 月 30 日止第 1 季度財務報告 根據馬來西亞證券交易所(「馬來西亞證交所」)主要板上市規定 9.22 段之規定， 世界華文媒體有限公司(「本公司」)為馬來西亞證交所主要板之上市公司，於 2025 年 8 月 25 日向馬來西亞證交所公布本公司及其附屬公司(統稱為「本集團」)截至 2025 年 6 月 30 日止季度之未經審核簡明綜合業績。 本公布同時根據香港聯合交易所有限公司證券上市規則(「香港上市規則」)第 13.09(2)(a)條及香港法例第 571 章《證券及期貨條例》第 XIVA 部項下的內幕消 息條文(按香港上市規則之定義)之規定 ...

茲提述方正控股有限公司（「本公司」）於二零二五年四月十六日刊載之截至 二零二四年十二月三十一日止年度的年報（「二零二四年年報」）。除另有界 定外，本公告所用之詞彙與二零二四年年報所界定者俱有相同涵義。 本公告旨在就二零二四年年報中有關本公司股份期權計劃及關連交易提供補充 資料如下： 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。 (股份代號: 00418) 有關截至二零二四年十二月三十一日止 年度年報之 補充公告 股份期權計劃 於二零二四年年報日期，根據計劃下可供發行之股份數目總計為119,974,699股 股份，佔本公司已發行股份的10%。 關連交易 於二零二四年十二月三十一日，方正電子（作為買方）與新方正及方正信息 （作為賣方）訂立股權轉讓協議，據此方正電子已同意向新方正及方正信息收 購天津方正手迹數字技術有限公司（「天津方正手迹」）之100%股權，代價為 人民幣3,579,811.24元（相等於約3,876,000港元），其將由方正電子於(i)訂 ...

[Company Information and Disclaimer](index=1&type=section&id=Company%20Information%20and%20Disclaimer) [Disclaimer and Directors' Responsibility Statement](index=1&type=section&id=Disclaimer%20and%20Directors'%20Responsibility%20Statement) This announcement contains the interim results of PHOENITRON HOLDINGS LIMITED for the six months ended June 30, 2025, for which Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility - Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the content of this announcement, make no representation, and assume no liability for any loss[1](index=1&type=chunk)[2](index=2&type=chunk) - The company's directors jointly and severally assume full responsibility for the information contained in this announcement, confirming it is accurate, complete, and free from misleading or fraudulent elements[3](index=3&type=chunk) [Interim Results Summary](index=2&type=section&id=Interim%20Results%20Summary) [Financial Highlights](index=2&type=section&id=Financial%20Highlights) For the six months ended June 30, 2025, the company's revenue significantly increased by **307.3%** due to new e-commerce and AI businesses, turning a loss into a profit of approximately **HKD 40.4 million** attributable to owners of the company Key Financial Data Comparison for H1 2025 | Indicator | H1 2025 (HKD) | H1 2024 (HKD) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 88,096,000 | 21,628,000 | +307.3% | | Profit/(Loss) Attributable to Owners of the Company | 40,400,000 | (3,049,000) | Turned from loss to profit | - The significant revenue growth is primarily attributed to the launch of new e-commerce and artificial intelligence businesses[4](index=4&type=chunk) - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025[4](index=4&type=chunk) [Unaudited Interim Results](index=3&type=section&id=Unaudited%20Interim%20Results) [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) For the six months ended June 30, 2025, the Group's revenue significantly increased to **HKD 88.10 million**, gross profit substantially rose to **HKD 67.05 million**, and achieved a profit for the period of **HKD 40.40 million**, reversing the loss from the same period last year Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Summary) | Indicator | H1 2025 (HKD) | H1 2024 (HKD) | | :--- | :--- | :--- | | Revenue | 88,096,187 | 21,628,172 | | Cost of sales | (21,047,112) | (15,061,348) | | Gross profit | 67,049,075 | 6,566,824 | | Profit/(loss) before income tax | 52,940,658 | (3,050,402) | | Profit/(loss) for the period | 40,398,451 | (3,050,402) | | Profit/(loss) for the period attributable to owners of the Company | 40,399,551 | (3,049,302) | | Basic earnings/(loss) per share (HK cents) | 7.542 | (0.580) | | Diluted earnings/(loss) per share (HK cents) | 7.023 | (0.580) | - Gross profit significantly increased by **920.5%** year-on-year, reflecting the high profitability of new businesses[5](index=5&type=chunk) - Total comprehensive income for the period turned from a loss of **HKD 3.13 million** in the same period last year to an income of **HKD 40.99 million**[5](index=5&type=chunk) [Condensed Consolidated Statement of Financial Position](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's net assets significantly increased to **HKD 98.81 million**, primarily due to a substantial increase in intangible assets and cash and cash equivalents, as well as the conversion of convertible bonds Condensed Consolidated Statement of Financial Position (Summary) | Indicator | June 30, 2025 (HKD) | December 31, 2024 (HKD) | | :--- | :--- | :--- | | Non-current assets | 54,386,788 | 47,338,871 | | Current assets | 73,399,346 | 30,795,215 | | Current liabilities | 27,674,976 | 19,174,764 | | Non-current liabilities | 1,304,589 | 18,034,696 | | Net assets | 98,806,569 | 40,924,626 | | Total equity | 98,806,569 | 40,924,626 | - Intangible assets increased from **HKD 4.71 million** to **HKD 14.25 million**, primarily reflecting investments in new businesses[7](index=7&type=chunk) - Cash and cash equivalents increased from **HKD 13.82 million** to **HKD 53.53 million**, indicating significant improvement in liquidity[7](index=7&type=chunk) - Convertible bonds in non-current liabilities were fully converted, decreasing from **HKD 16.54 million** to zero[7](index=7&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, equity attributable to owners of the Company significantly increased from **HKD 40.70 million** at the beginning of the period to **HKD 98.58 million**, mainly due to profit contribution for the period and the conversion of convertible bonds Changes in Equity Attributable to Owners of the Company (Summary) | Indicator | January 1, 2025 (HKD) | June 30, 2025 (HKD) | | :--- | :--- | :--- | | Equity attributable to owners of the Company | 40,696,262 | 98,579,305 | | Profit for the period | - | 40,399,551 | | Conversion of convertible bonds | - | 16,895,778 | - The conversion of convertible bonds resulted in an increase in share capital of **HKD 11.00 million** and share premium of **HKD 6.03 million**[9](index=9&type=chunk) - Accumulated losses decreased from **HKD (454.99 million)** at the beginning of the period to **HKD (414.59 million)**, reflecting improved profitability[9](index=9&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, the Group's net cash from operating activities significantly increased to **HKD 52.60 million**, with cash and cash equivalents reaching **HKD 53.53 million** at period-end, demonstrating strong cash generation capability Condensed Consolidated Statement of Cash Flows (Summary) | Indicator | H1 2025 (HKD) | H1 2024 (HKD) | | :--- | :--- | :--- | | Net cash from operating activities | 52,598,901 | 631,624 | | Net cash used in investing activities | (11,705,675) | (5,122,468) | | Net cash (used in)/from financing activities | (1,739,126) | 4,013,397 | | Net increase/(decrease) in cash and cash equivalents | 39,154,100 | (477,447) | | Cash and cash equivalents at end of period | 53,530,994 | 6,554,583 | - Net cash from operating activities significantly increased year-on-year, primarily due to the profit contribution from new businesses[11](index=11&type=chunk) - Net cash outflow from investing activities increased, reflecting investments in new businesses and assets[11](index=11&type=chunk) [Notes to the Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) [1. Basis of Preparation](index=9&type=section&id=1.%20Basis%20of%20Preparation) These interim financial statements are prepared in accordance with Hong Kong Financial Reporting Standards and GEM Listing Rules, using the historical cost convention, except for investment in television programs measured at fair value - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards and GEM Listing Rules, presented in HKD[12](index=12&type=chunk)[13](index=13&type=chunk) - Except for investment in television programs measured at fair value, the statements are prepared on a historical cost basis[13](index=13&type=chunk) - The Directors do not expect the adoption of new and revised Hong Kong Financial Reporting Standards to have a significant impact on the Group's financial statements[13](index=13&type=chunk) [2. Segment Information](index=9&type=section&id=2.%20Segment%20Information) The Group currently comprises six operating segments: smart cards and application systems, private domain e-commerce platform, AI voice technology data services, financial and management consulting, scrap metal sales and trading, and media and entertainment - The Group currently has six operating segments: sales of smart cards and smart card application systems, operation of private domain e-commerce platform, provision of AI voice technology data services, financial and management consulting services, sales and trading of scrap metal, and media and entertainment[14](index=14&type=chunk) Reportable Segment Revenue and Profit (H1 2025) | Segment | Revenue (HKD) | Profit/(Loss) (HKD) | | :--- | :--- | :--- | | Sales of smart cards and smart card application systems | 27,179,313 | 2,846,761 | | Operation of private domain e-commerce platform | 54,936,874 | 49,849,509 | | Provision of AI voice technology data services | 5,980,000 | 5,772,930 | | Sales and trading of scrap metal | – | (1,681,427) | | Media and entertainment | – | (2,500) | | **Consolidated** | **88,096,187** | **56,785,273** | - The private domain e-commerce platform and AI voice technology data services had no revenue in the same period of 2024, becoming major sources of revenue and profit in H1 2025[17](index=17&type=chunk) [3. Revenue](index=12&type=section&id=3.%20Revenue) The Group's total revenue for the six months ended June 30, 2025, was **HKD 88.10 million**, with private domain e-commerce platform operations and AI voice technology data services as new revenue sources, and smart card sales also showing growth Revenue Stream Details | Revenue Stream | H1 2025 (HKD) | H1 2024 (HKD) | | :--- | :--- | :--- | | Sales of smart cards and smart card application systems | 27,179,313 | 21,628,172 | | Operation of private domain e-commerce platform | 54,936,874 | – | | Provision of AI voice technology data services | 5,980,000 | – | | **Total Revenue** | **88,096,187** | **21,628,172** | - Operation of private domain e-commerce platform and provision of AI voice technology data services contributed **HKD 60.92 million** in new revenue in H1 2025[19](index=19&type=chunk) [4. Other Income](index=13&type=section&id=4.%20Other%20Income) For the six months ended June 30, 2025, the Group's other income increased to **HKD 0.16 million**, mainly from increased miscellaneous income and bank interest income Other Income Details | Income Source | H1 2025 (HKD) | H1 2024 (HKD) | | :--- | :--- | :--- | | Bank interest income | 8,998 | 3,105 | | Miscellaneous income | 151,671 | 79,545 | | **Total** | **160,669** | **82,650** | [5. Other Gains/(Losses), Net](index=13&type=section&id=5.%20Other%20Gains%2F(Losses),%20Net) For the six months ended June 30, 2025, the Group recorded a net exchange gain of **HKD 0.55 million**, reversing the net loss from the same period last year Exchange Gains/(Losses), Net | Indicator | H1 2025 (HKD) | H1 2024 (HKD) | | :--- | :--- | :--- | | Exchange gains/(losses), net | 544,905 | (593,541) | [6. Finance Costs](index=13&type=section&id=6.%20Finance%20Costs) For the six months ended June 30, 2025, the Group's finance costs increased to **HKD 0.43 million**, primarily due to the new interest expense on convertible bonds Finance Costs Details | Type of Cost | H1 2025 (HKD) | H1 2024 (HKD) | | :--- | :--- | :--- | | Interest expense on lease liabilities | 78,200 | 121,492 | | Interest expense on convertible bonds | 355,505 | – | | **Total** | **433,705** | **121,492** | [7. Profit/(Loss) Before Income Tax](index=13&type=section&id=7.%20Profit%2F(Loss)%20Before%20Income%20Tax) For the six months ended June 30, 2025, the Group's profit before income tax was **HKD 52.94 million**, mainly due to revenue growth and improved gross profit, while deducting increased inventory costs and depreciation expenses Deductions for Profit/(Loss) Before Income Tax | Deduction Item | H1 2025 (HKD) | H1 2024 (HKD) | | :--- | :--- | :--- | | Cost of inventories recognised as an expense | 21,047,112 | 15,061,348 | | Depreciation—property, plant and equipment | 888,790 | 1,114,217 | | Depreciation—right-of-use assets | 1,649,215 | 1,662,392 | [8. Income Tax Expense](index=14&type=section&id=8.%20Income%20Tax%20Expense) For the six months ended June 30, 2025, the Group recorded an income tax expense of **HKD 12.54 million**, primarily due to profit generated from operating the private domain e-commerce platform, while Hong Kong, Cayman Islands, British Virgin Islands, and Taiwan had no income tax payable or tax losses available for offset Income Tax Expense | Indicator | H1 2025 (HKD) | H1 2024 (HKD) | | :--- | :--- | :--- | | Income tax expense | 12,542,207 | – | - No provision for Hong Kong profits tax was made due to sufficient tax losses available for offset[24](index=24&type=chunk) - China enterprise income tax is calculated at a **25%** rate, mainly due to taxable profits generated by the private domain e-commerce platform[25](index=25&type=chunk) - No income tax is payable in the Cayman Islands, British Virgin Islands, and Taiwan[26](index=26&type=chunk) [9. Dividends](index=14&type=section&id=9.%20Dividends) The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025, consistent with the same period last year - The Board does not recommend the payment of any interim dividend (2024: nil)[27](index=27&type=chunk) [10. Earnings/(Loss) Per Share Attributable to Owners of the Company](index=15&type=section&id=10.%20Earnings%2F(Loss)%20Per%20Share%20Attributable%20to%20Owners%20of%20the%20Company) For the six months ended June 30, 2025, basic earnings per share attributable to owners of the Company were **7.542 HK cents**, and diluted earnings per share were **7.023 HK cents**, a significant improvement from the loss per share in the same period last year Earnings/(Loss) Per Share Details | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit/(loss) attributable to owners of the Company (HKD) | 40,399,551 | (3,049,302) | | Weighted average number of ordinary shares for basic earnings/(loss) per share | 535,678,992 | 525,347,500 | | Basic earnings/(loss) per share (HK cents) | 7.542 | (0.580) | | Diluted earnings/(loss) per share (HK cents) | 7.023 | (0.580) | - The conversion of convertible bonds resulted in an increase of **10,331,492** ordinary shares, affecting the earnings per share calculation[28](index=28&type=chunk) - In H1 2024, diluted loss per share was the same as basic loss per share due to the anti-dilutive effect of share options[28](index=28&type=chunk) [11. Property, Plant and Equipment](index=16&type=section&id=11.%20Property,%20Plant%20and%20Equipment) For the six months ended June 30, 2025, the Group acquired approximately **HKD 1.37 million** in property, plant, and equipment, a decrease compared to the same period last year Acquisitions of Property, Plant and Equipment | Indicator | H1 2025 (HKD) | H1 2024 (HKD) | | :--- | :--- | :--- | | Acquisitions | 1,370,000 | 3,000,000 | [12. Investment in Television Program](index=16&type=section&id=12.%20Investment%20in%20Television%20Program) The Group's investment in the television program "Snow Leopard II" was **HKD 32.46 million** as of June 30, 2025, classified as a non-current asset, with revenue distribution expected to be delayed until the end of Q3 2026 Investment in Television Program | Indicator | June 30, 2025 (HKD) | December 31, 2024 (HKD) | | :--- | :--- | :--- | | Balance | 32,459,016 | 31,663,113 | - The television program is expected to be released in China by mid-2026, with net profit distribution received by the end of Q3 2026[31](index=31&type=chunk) - Fair value measurement uses the discounted cash flow method, with key unobservable inputs including a discount rate of **21.29%** and estimated television program revenue of **RMB 210 million**[33](index=33&type=chunk)[36](index=36&type=chunk) - An increase or decrease of **3%** in the discount rate would result in a decrease or increase of approximately **HKD 0.98 million** in fair value, respectively; an increase or decrease of **10%** in estimated revenue would result in an increase or decrease of approximately **HKD 3.28 million** in fair value, respectively[36](index=36&type=chunk) [13. Inventories](index=17&type=section&id=13.%20Inventories) As of June 30, 2025, the Group's total inventories amounted to **HKD 1.62 million**, a decrease from December 31, 2024, primarily due to a reduction in finished goods inventory Inventories Details | Inventory Type | June 30, 2025 (HKD) | December 31, 2024 (HKD) | | :--- | :--- | :--- | | Raw materials | 347,378 | 570,933 | | Work in progress | 1,266,857 | 396,825 | | Finished goods | 7,075 | 1,136,396 | | **Total** | **1,621,310** | **2,104,154** | [14. Trade and Other Receivables, Deposits and Prepayments](index=17&type=section&id=14.%20Trade%20and%20Other%20Receivables,%20Deposits%20and%20Prepayments) As of June 30, 2025, the Group's current trade and other receivables, deposits, and prepayments increased to **HKD 18.25 million**, with trade receivables primarily concentrated within **30 days** Trade and Other Receivables, Deposits and Prepayments | Indicator | June 30, 2025 (HKD) | December 31, 2024 (HKD) | | :--- | :--- | :--- | | Trade receivables | 10,833,526 | 10,386,299 | | Other receivables, deposits and prepayments | 8,038,844 | 8,134,845 | | Current trade and other receivables, deposits and prepayments | 18,247,042 | 14,868,358 | Ageing Analysis of Trade Receivables | Ageing | June 30, 2025 (HKD) | December 31, 2024 (HKD) | | :--- | :--- | :--- | | 0 to 30 days | 10,828,626 | 3,002,212 | | 31 to 90 days | 4,900 | 7,260,739 | | Over 90 days | – | 123,348 | - The credit period for trade receivables typically ranges from **30 to 90 days**[40](index=40&type=chunk) [15. Trade and Other Payables](index=18&type=section&id=15.%20Trade%20and%20Other%20Payables) As of June 30, 2025, the Group's trade payables were **HKD 5.22 million**, a decrease from December 31, 2024, with an improved ageing structure Ageing Analysis of Trade Payables | Ageing | June 30, 2025 (HKD) | December 31, 2024 (HKD) | | :--- | :--- | :--- | | 0 to 30 days | 2,890,718 | 1,179,900 | | 31 to 60 days | 1,296,843 | 1,936,419 | | 61 to 90 days | 301,131 | 2,198,257 | | Over 90 days | 731,076 | 2,078,009 | | **Total** | **5,219,768** | **7,392,585** | - The credit period granted by suppliers to the Group typically ranges from **30 to 90 days**[41](index=41&type=chunk) [16. Convertible Bonds](index=19&type=section&id=16.%20Convertible%20Bonds) The Company fully converted convertible bonds with a total principal amount of **HKD 16.5 million** on May 28, 2025, resulting in an increase in share capital and a zero balance for convertible bonds at period-end - The Company issued unsecured convertible bonds with a total principal amount of **HKD 16.5 million** to Mr. Kwok Yung Cheung on September 3, 2024, at an annual interest rate of **5%**[42](index=42&type=chunk) - On May 28, 2025, Mr. Kwok fully converted the convertible bonds, and the Company issued **55 million** shares at **HKD 0.30** per share[43](index=43&type=chunk) Changes in Convertible Bonds | Indicator | December 31, 2024 (HKD) | June 30, 2025 (HKD) | | :--- | :--- | :--- | | Balance of liability component | 16,540,273 | – | | Balance of equity component | 129,000 | – | [17. Share Capital](index=20&type=section&id=17.%20Share%20Capital) As of June 30, 2025, the Company's issued and fully paid share capital increased by **55 million** shares due to convertible bond conversion, totaling **580.3 million** shares with a total value of **HKD 116.1 million** Changes in Issued and Fully Paid Share Capital | Indicator | December 31, 2024 | June 30, 2025 | | :--- | :--- | :--- | | Number of ordinary shares issued | 525,347,500 | 580,347,500 | | Total value of ordinary shares issued (HKD) | 105,069,500 | 116,069,500 | - The increase in share capital is primarily due to the conversion of convertible bonds, resulting in the issuance of **55 million** new shares[45](index=45&type=chunk) [Management Discussion and Analysis](index=21&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review and Strategies](index=21&type=section&id=Business%20Review%20and%20Strategies) While maintaining stable core smart card business, the Group strategically expanded into e-commerce and AI voice technology services, achieving business diversification and significant growth through the acquisition of Dongchuang and the development of Cyber Fantasy - The Group's strategy is to consolidate its core smart card business while actively expanding into e-commerce and high-end AI technology services[46](index=46&type=chunk)[66](index=66&type=chunk) - The addition of the e-commerce business in 2024 represents strategic diversification, enhancing the Group's revenue streams through synergy with existing technological capabilities[54](index=54&type=chunk) - The Company has no intention, understanding, negotiation, or arrangement to scale down, cease, or dispose of its existing businesses[54](index=54&type=chunk) [Sales of Smart Cards and Smart Card Application Systems](index=21&type=section&id=Sales%20of%20Smart%20Cards%20and%20Smart%20Card%20Application%20Systems) The smart card business is a primary revenue source for the Group, focusing on the production, manufacturing, and global trade of telecom SIM cards with an annual capacity exceeding **300 million** cards - The smart card business is a primary revenue source for the Group, with an annual production capacity exceeding **300 million** cards, serving international clients such as IDEMIA, VALID, and G&D[46](index=46&type=chunk) - A "international + domestic" dual-driven business model has been formed, establishing cooperation with domestic clients including Hengbao Co., Ltd., Wango Smart, and Shenzhen Zhida Smart[47](index=47&type=chunk)[48](index=48&type=chunk) - Plans to allocate additional capital investment to a new factory in Shenzhen, specifically for the smart card business, to meet Global System for Mobile Communications (GSMA) Security Accreditation Scheme (SAS) certification requirements and expand international market opportunities[48](index=48&type=chunk) [Sales and Trading of Scrap Metal](index=22&type=section&id=Sales%20and%20Trading%20of%20Scrap%20Metal) The Group has temporarily ceased its scrap metal sales and trading business and is adopting a wait-and-see approach, planning to gradually resume when signs of global economic recovery and stability become clear - The scrap metal sales and trading business has been temporarily suspended due to the substantial investment required to maintain operations[49](index=49&type=chunk) - The Company will gradually resume this business when signs of global economic recovery and stability become clearer[49](index=49&type=chunk) [Provision of Financial and Management Consulting Services](index=22&type=section&id=Provision%20of%20Financial%20and%20Management%20Consulting%20Services) The Company has not generated any revenue from financial and management consulting services since Q3 2016, with this business being inactive since 2015, but remains open to re-initiating it - Financial and management consulting services have not generated any revenue since Q3 2016, and Hota Group has been inactive since 2015[50](index=50&type=chunk) - The Company remains open to re-initiating this segment when suitable opportunities arise[50](index=50&type=chunk) [Media and Entertainment](index=23&type=section&id=Media%20and%20Entertainment) The Company's invested TV series "Snow Leopard II" was completed in 2023, with an anticipated release in Q1 2026 and revenue sharing expected in Q3 2026 - The TV series "Snow Leopard II" was completed in 2023, with an anticipated release in Q1 2026 and revenue sharing expected in Q3 2026[51](index=51&type=chunk) - The Company will seek similar investments in the future but currently prioritizes realizing returns from the TV series[51](index=51&type=chunk) [E-commerce Business](index=23&type=section&id=E-commerce%20Business) The Company successfully acquired all equity in Dongchuang, officially entering the e-commerce market, and collaborates with Cyber Fantasy to provide data support for AI voice technology, forming a unique customized voice data collection platform - The Company successfully completed the acquisition of all equity in Dongchuang in December 2024, entering the e-commerce market[52](index=52&type=chunk) - Dongchuang's user ecosystem strategically shares resources with Cyber Fantasy, serving as a fundamental source of voice data material, forming a globally unique customized voice data collection platform[53](index=53&type=chunk) - Dongchuang recorded revenue of approximately **HKD 54.9 million** and pre-tax profit of **HKD 49.8 million** in H1 2025; Cyber Fantasy recorded revenue of approximately **HKD 6 million** and pre-tax profit of approximately **HKD 5.7 million**[64](index=64&type=chunk) [Dongchuang](index=24&type=section&id=Dongchuang) Dongchuang, a membership-based entertainment e-commerce platform, launched its public beta in January 2025, generating revenue through a commission-driven social e-commerce model, coupon transaction commissions, and platform-operated mall sales - Dongchuang launched its public beta in January 2025, operating as a membership-based entertainment e-commerce platform focused on private domain traffic[56](index=56&type=chunk) - Revenue structure includes membership tiers, coupon transaction commissions (local lifestyle services and external e-commerce merchants), and sales revenue from the platform's self-operated mall[56](index=56&type=chunk)[57](index=57&type=chunk) - The platform has over **200,000** registered individual users, primarily acquired through WeChat Moments and WeChat group invitations[58](index=58&type=chunk) - Dongchuang's business model is asset-light, not involved in product procurement, inventory holding, warehousing, logistics, or product ownership, enjoying high profit margins[64](index=64&type=chunk) [Cyber Fantasy](index=26&type=section&id=Cyber%20Fantasy) Cyber Fantasy, a wholly-owned subsidiary of the Company, specializes in AI voice technology R&D, including speech recognition, natural language processing, and speech synthesis, and has applied for national invention patents - Cyber Fantasy established an AI technology team in 2024, responsible for developing and advancing AI algorithms for voice-related technologies, and has developed proprietary voice algorithm technology, with national invention patent applications underway[61](index=61&type=chunk) - Provides personalized intelligent agent customization and data services, customized speech recognition development services, and agent training services using voice data[62](index=62&type=chunk) - Collaborates with Dongchuang, leveraging Dongchuang's **200,000** user platform to efficiently release data collection tasks and develop highly customized voice AI training databases[63](index=63&type=chunk) - The strategic goal is to establish a global first-mover advantage by creating a globally leading voice training database with emotional annotations[63](index=63&type=chunk) - Revenue sources include customized speech recognition technology service fees and data licensing fees for voice big data used in AI development, as well as annual service fees[64](index=64&type=chunk)[65](index=65&type=chunk) [Financial Review](index=29&type=section&id=Financial%20Review) The Group's financial performance significantly improved in H1 2025, with substantial total revenue growth, soaring gross profit, and a return to profitability, driven by new e-commerce and AI services - The Group's financial results are primarily derived from smart card contract manufacturing and sales, private domain e-commerce platform operations, and the provision of AI voice technology data services[68](index=68&type=chunk) - The improvement in 2025 financial results is a direct outcome of the 2024 strategic transformation, focusing on core smart card expertise while strategically expanding into targeted e-commerce services and high-end AI technology services[66](index=66&type=chunk) [Revenue](index=29&type=section&id=Revenue) For the six months ended June 30, 2025, the Group's total revenue significantly increased, with private domain e-commerce platform operations contributing **HKD 54.94 million**, AI voice technology data services contributing **HKD 5.98 million**, and smart card sales growing by **25.7%** to **HKD 27.18 million** Segment Revenue Comparison | Segment | H1 2025 (HKD) | H1 2024 (HKD) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operation of private domain e-commerce platform | 54,940,000 | – | New | | Sales of smart cards and smart card application systems | 27,180,000 | 21,630,000 | +25.7% | | Provision of AI voice technology data services | 5,980,000 | – | New | [Cost of Sales and Gross Profit](index=29&type=section&id=Cost%20of%20Sales%20and%20Gross%20Profit) The Group's gross profit substantially increased by **920.5%** to **HKD 67.05 million** during the reporting period, primarily due to the introduction of private domain e-commerce platform and AI voice technology data services, as well as relatively low growth in smart card sales costs Segment Cost of Sales Comparison | Segment | H1 2025 (HKD) | H1 2024 (HKD) | | :--- | :--- | :--- | | Cost of sales for operation of private domain e-commerce platform | 3,320,000 | – | | Cost of sales for smart cards and smart card application systems | 17,570,000 | 15,060,000 | | Cost of sales for provision of AI voice technology data services | 160,000 | – | Gross Profit Comparison | Indicator | H1 2025 (HKD) | H1 2024 (HKD) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Gross profit | 67,050,000 | 6,570,000 | +920.5% | [Other Income](index=30&type=section&id=Other%20Income) The Group's other income increased to **HKD 0.16 million**, primarily comprising bank interest income and miscellaneous income Other Income Details | Income Source | H1 2025 (HKD) | H1 2024 (HKD) | | :--- | :--- | :--- | | Bank interest income | 8,998 | 3,105 | | Miscellaneous income | 151,671 | 79,545 | | **Total** | **160,669** | **82,650** | [Other Gains (Losses), Net](index=30&type=section&id=Other%20Gains%20(Losses),%20Net) The Group recorded approximately **HKD 0.55 million** in other net gains during the reporting period, primarily from exchange differences on investment in television programs, reversing the net loss from the same period last year Other Gains (Losses), Net | Indicator | H1 2025 (HKD) | H1 2024 (HKD) | | :--- | :--- | :--- | | Other gains (net) | 550,000 | (590,000) | - Primarily refers to exchange differences arising from the translation of the carrying amount of investment in television programs, partially offset by exchange losses incurred in foreign currency transactions[77](index=77&type=chunk) [Selling and Distribution Costs](index=30&type=section&id=Selling%20and%20Distribution%20Costs) The Group's selling and distribution costs increased by **5%** to **HKD 1.05 million**, mainly due to increased transportation costs and sales commissions from higher smart card business revenue, partially offset by reduced other selling expenses Selling and Distribution Costs Comparison | Indicator | H1 2025 (HKD) | H1 2024 (HKD) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Selling and distribution costs | 1,050,000 | 1,000,000 | +5% | - The increase is mainly due to the year-on-year increase in smart card business revenue, with corresponding increases in transportation costs and sales commissions[78](index=78&type=chunk) [Administrative Expenses](index=30&type=section&id=Administrative%20Expenses) The Group's administrative expenses increased by **22.4%** to **HKD 13.33 million**, primarily due to approximately **HKD 1.82 million** in administrative expenses from new business launches, as well as increased legal and professional fees and salaries and wages Administrative Expenses Comparison | Indicator | H1 2025 (HKD) | H1 2024 (HKD) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Administrative expenses | 13,330,000 | 10,890,000 | +22.4% | - Administrative expenses totaling approximately **HKD 1.82 million** were recorded for the launch of new businesses[79](index=79&type=chunk) [Fair Value Change of Investment in Television Program](index=30&type=section&id=Fair%20Value%20Change%20of%20Investment%20in%20Television%20Program) No fair value gains or losses on investment in television programs were recognized during this reporting period, compared to a gain of approximately **HKD 2.9 million** in the same period last year Fair Value Change of Investment in Television Program | Indicator | H1 2025 (HKD) | H1 2024 (HKD) | | :--- | :--- | :--- | | Fair value gains or losses | – | 2,900,000 | - The estimated timeline for television program revenue inflow will be delayed by six months to the end of Q3 2026[80](index=80&type=chunk) [Finance Costs](index=31&type=section&id=Finance%20Costs) The Group's finance costs increased to **HKD 0.43 million**, primarily including interest expense on lease liabilities and new interest expense on convertible bonds Finance Costs Comparison | Indicator | H1 2025 (HKD) | H1 2024 (HKD) | | :--- | :--- | :--- | | Finance costs | 430,000 | 120,000 | - Finance costs include interest expense on lease liabilities and interest expense on convertible bonds[81](index=81&type=chunk) [Income Tax Expense](index=31&type=section&id=Income%20Tax%20Expense) Income tax expense of **HKD 12.54 million** was recognized during this reporting period, primarily for profits generated from operating the private domain e-commerce platform Income Tax Expense Comparison | Indicator | H1 2025 (HKD) | H1 2024 (HKD) | | :--- | :--- | :--- | | Income tax expense | 12,540,000 | – | - Income tax expense is primarily provided for profits generated from operating the private domain e-commerce platform[82](index=82&type=chunk) [Non-controlling Interests](index=31&type=section&id=Non-controlling%20Interests) A loss attributable to non-controlling interests of **HKD 1,100** was recognized during this reporting period, consistent with the same period last year Non-controlling Interests and Profit Attributable to Owners of the Company | Indicator | H1 2025 (HKD) | H1 2024 (HKD) | | :--- | :--- | :--- | | Loss attributable to non-controlling interests | 1,100 | 1,100 | | Profit/(loss) attributable to owners of the Company | 40,400,000 | (3,050,000) | [Liquidity and Financial Resources](index=31&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group's liquidity significantly improved, with cash and bank balances increasing to **HKD 53.5 million**, the current ratio rising to **2.65**, and no outstanding long-term convertible bonds Liquidity and Financial Resources Comparison | Indicator | June 30, 2025 (HKD) | December 31, 2024 (HKD) | | :--- | :--- | :--- | | Cash and bank balances | 53,500,000 | 13,800,000 | | Outstanding long-term convertible bonds | – | 16,500,000 | | Current assets | 73,400,000 | 30,800,000 | | Current liabilities | 27,700,000 | 19,200,000 | | Current ratio | 2.65 | 1.6 | - The Group funds its business operations and investments through cash, revenue generated from operating activities, and proceeds from the issuance of convertible bonds[84](index=84&type=chunk) [Employee Information](index=31&type=section&id=Employee%20Information) As of June 30, 2025, the Group employed **137** staff, with approximately **36%** being female and **29%** of senior management positions held by women Employee Headcount and Costs Comparison | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total number of employees | 137 | 136 | | Employee costs (HKD) | 11,800,000 | 11,000,000 (H1 2024) | - Approximately **36%** of employees (including senior management) are female, and approximately **29%** of senior management positions are held by women, indicating the company's balanced gender diversity in its workforce[85](index=85&type=chunk) - Employee benefits include basic salary, Mandatory Provident Fund Scheme, medical plans, and share options[86](index=86&type=chunk) [Material Investments and Acquisitions](index=32&type=section&id=Material%20Investments%20and%20Acquisitions) Apart from the e-commerce business acquisition disclosed in the management discussion and analysis, the Group had no other material investments, acquisitions, or disposals of subsidiaries and associates during this reporting period - For the six months ended June 30, 2025, the Group had no other material investments[87](index=87&type=chunk) - For the six months ended June 30, 2025, the Group had no material acquisitions or disposals of subsidiaries and associates[88](index=88&type=chunk) - As of June 30, 2025, there were no future plans for material investments or capital assets[89](index=89&type=chunk) [Capital Structure and Commitments](index=32&type=section&id=Capital%20Structure%20and%20Commitments) As of June 30, 2025, the Group had no pledged assets, its gearing ratio significantly decreased to **2.4%**, and it had capital commitments of approximately **HKD 0.2 million** for property, plant, and equipment - As of June 30, 2025, the Group had no pledged assets[90](index=90&type=chunk) Gearing Ratio Comparison | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Gearing ratio | 2.4% | 26.3% | Capital Commitments | Indicator | June 30, 2025 (HKD) | December 31, 2024 (HKD) | | :--- | :--- | :--- | | Capital commitments for acquisition of property, plant and equipment | 200,000 | 200,000 | [Contingent Liabilities](index=32&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no material contingent liabilities - As of June 30, 2025, the Group had no material contingent liabilities[93](index=93&type=chunk) [Exposure to Exchange Rate Fluctuations](index=33&type=section&id=Exposure%20to%20Exchange%20Rate%20Fluctuations) The Group's currency risk exposure primarily arises from investment in television programs and overseas sales and purchases denominated in RMB and USD - The Group's currency risk exposure arises from investment in television programs and overseas sales and purchases, primarily denominated in RMB and USD[95](index=95&type=chunk) - The Group monitors foreign currency cash flows in accordance with its risk management policy and considers this foreign exchange risk management policy effective[95](index=95&type=chunk) [Other Information](index=33&type=section&id=Other%20Information) [Directors' and Chief Executive's Interests in Shares and Share Options](index=33&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20in%20Shares%20and%20Share%20Options) As of June 30, 2025, several executive and independent non-executive directors held shares and share options in the Company, with Mr. Kwok Yung Cheung holding **55 million** shares, representing **9.48%** of the issued share capital, due to convertible bond conversion Directors' and Chief Executive's Interests in Shares and Share Options | Name of Director | Nature of Interest | Long/Short Position | Number of Shares in the Company | Number of Relevant Shares in the Company | Approximate Percentage of Interest in the Company's Issued Share Capital | | :--- | :--- | :--- | :--- | :--- | :--- | | Ms. Ng Yuk Kwan | Beneficial owner | Long | 100,000 | 4,500,000 | 0.79% | | Mr. Kwok Yung Cheung | Beneficial owner | Long | 55,000,000 | – | 9.48% | | Mr. Cheung Wai Man | Beneficial owner | Long | 525,000 | 4,500,000 | 0.87% | | Mr. Yeung Mang Sau | Beneficial owner | Long | 3,750,000 | 4,500,000 | 1.42% | | Mr. Chan Siu Wing | Beneficial owner | Long | – | 450,000 | 0.08% | | Ms. Wong Ka Wai | Beneficial owner | Long | – | 450,000 | 0.08% | - Number of relevant shares primarily refers to share options entitling the holder to subscribe for shares[97](index=97&type=chunk) [Substantial Shareholders' Interests in Shares and Related Shares](index=35&type=section&id=Substantial%20Shareholders'%20Interests%20in%20Shares%20and%20Related%20Shares) As of June 30, 2025, Mr. Choi Kei Yuen was considered a substantial shareholder of the Company, holding a total of **24.02%** of shares through Golden Dice Co., Ltd. and Best Heaven Limited Substantial Shareholders' Interests in Shares and Related Shares | Name of Shareholder | Type of Interest | Long/Short Position | Number of Shares | Approximate Percentage of Interest | | :--- | :--- | :--- | :--- | :--- | | Golden Dice Co., Ltd. | Beneficial | Long | 107,787,512 | 18.57% | | Best Heaven Limited | Beneficial | Long | 31,586,500 | 5.45% | | Mr. Choi Kei Yuen | Interest in controlled corporation | Long | 139,374,012 | 24.02% | - Mr. Choi Kei Yuen is deemed a substantial shareholder of the Company due to his **100%** beneficial ownership in Golden Dice Co., Ltd. and Best Heaven Limited[99](index=99&type=chunk) [Share Option Scheme](index=35&type=section&id=Share%20Option%20Scheme) The Company has adopted a new share option scheme to attract and retain talent and incentivize performance optimization, with options granted under the new scheme having an exercise price of **HKD 0.427** per share, a ten-year validity period, and a vesting period - The new share option scheme was approved and adopted on April 10, 2025, aiming to attract and retain the Group's best personnel and promote business success[100](index=100&type=chunk)[101](index=101&type=chunk) - Options granted under the new scheme have an exercise price of **HKD 0.427** per share, a ten-year validity period, and grantees must hold options for at least **twelve months** before exercise[94](index=94&type=chunk)[101](index=101&type=chunk)[102](index=102&type=chunk) - As of June 30, 2025, no share options were granted under the new share option scheme[103](index=103&type=chunk) Existing Share Option Scheme (Unexercised) | Participant Type | January 1, 2025 (Options) | June 30, 2025 (Options) | Exercise Price (HKD) | Remaining Term (Years) | | :--- | :--- | :--- | :--- | :--- | | Executive Directors | 13,500,000 | 13,500,000 | 0.20 | Approx. 2.51 | | Independent Non-executive Directors | 900,000 | 900,000 | 0.20 | Approx. 2.51 | | Other Employees | 22,779,250 | 22,779,250 | 0.20 | Approx. 2.51 | | **Total** | **37,179,250** | **37,179,250** | | | [Audit Committee](index=38&type=section&id=Audit%20Committee) The Audit Committee comprises three independent non-executive directors, chaired by Ms. Wong Ka Wai, and has reviewed these interim results, finding them to comply with accounting standards - The Audit Committee comprises three independent non-executive directors, with Ms. Wong Ka Wai as the chairperson[105](index=105&type=chunk) - Its primary functions are to review the Company's financial controls, internal controls, and risk management systems; review and monitor the independence of external auditors; and review the consolidated financial statements[105](index=105&type=chunk) - The Audit Committee has reviewed the Group's unaudited interim results for the six months ended June 30, 2025, and found them to be prepared in compliance with applicable accounting standards and requirements[105](index=105&type=chunk) [Compliance with Corporate Governance Code](index=38&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The Company has complied with all code provisions of the Corporate Governance Code during the reporting period, except for code provision C.2.1 (separation of Chairman and Chief Executive functions) - The Company has complied with all code provisions of the Corporate Governance Code for the six months ended June 30, 2025, except for code provision C.2.1 (separation of the roles of Chairman and Chief Executive)[106](index=106&type=chunk) - Ms. Ng Yuk Kwan resigned as Chief Executive Officer with effect from April 17, 2025, and continues to serve as an executive director and Chairman of the Board[107](index=107&type=chunk) - Mr. Cheung Wai Man was appointed as the Company's Chief Executive Officer on the same day to ensure a clearer division of responsibilities at the Board level and within the management team[107](index=107&type=chunk) [Directors' Securities Transactions](index=39&type=section&id=Directors'%20Securities%20Transactions) The Company has adopted a code of conduct for directors' securities transactions no less stringent than that required by the GEM Listing Rules, and all directors have complied with the relevant code during the reporting period - The Company has adopted a code of conduct for directors' securities transactions, the terms of which are no less stringent than those required by the GEM Listing Rules[108](index=108&type=chunk) - Following specific enquiry, the Directors have complied with the code of conduct and required standards for such dealings during the six months ended June 30, 2025[108](index=108&type=chunk) [Competing Interests](index=39&type=section&id=Competing%20Interests) As of June 30, 2025, none of the Company's directors or controlling shareholders or their respective associates had any interests in businesses that directly or indirectly compete with the Group's businesses - As of June 30, 2025, none of the Company's directors or controlling shareholders or any of their respective associates had any interests in businesses that directly or indirectly compete with the Group's businesses[109](index=109&type=chunk) [Purchase, Sale or Redemption of Securities](index=39&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20Securities) 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 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 securities[110](index=110&type=chunk) [Board Information](index=39&type=section&id=Board%20Information) This announcement is signed by Ms. Ng Yuk Kwan, Chairman of the Board, and lists the composition of the Board as of the announcement date, including four executive directors and three independent non-executive directors - The Board comprises four executive directors (Ms. Ng Yuk Kwan, Mr. Cheung Wai Man, Mr. Kwok Yung Cheung, Mr. Yeung Mang Sau) and three independent non-executive directors (Ms. Wong Ka Wai, Mr. Yeung Man Che, Mr. Chan Siu Wing)[112](index=112&type=chunk) - This announcement will be published on the HKEX website and the Company's website for at least seven consecutive days from the date of publication[112](index=112&type=chunk)

[Summary](index=1&type=section&id=Summary) [Financial Summary](index=1&type=section&id=Financial%20Summary) For the six months ended June 30, 2025, Neutech Group Limited experienced significant declines in revenue, gross profit, and profit for the period, with medical and eldercare services revenue growing substantially but failing to offset the decrease in education technology and services revenue, while gross margin and adjusted net margin also declined | Indicator | 2025 (Thousand RMB) | 2024 (Thousand RMB) | Change (Thousand RMB) | Change % | | :--- | :--- | :--- | :--- | :--- | | Revenue | 924,953 | 968,108 | -43,155 | -4.5% | | Gross Profit | 398,132 | 510,656 | -112,524 | -22.0% | | Profit for the Period | 204,038 | 277,571 | -73,533 | -26.5% | | Profit for the Period Attributable to Owners of the Company | 203,923 | 277,414 | -73,491 | -26.5% | | Adjusted Net Profit | 204,129 | 276,794 | -72,665 | -26.3% | | Adjusted Net Profit Attributable to Owners of the Company | 204,014 | 276,637 | -72,623 | -26.3% | | Gross Margin | 43.0% | 52.7% | -9.7% | N/A | | Adjusted Net Margin | 22.1% | 28.6% | -6.5% | N/A | | Basic Earnings Per Share (RMB) | 0.32 | 0.43 | -0.11 | -25.6% | [Interim Condensed Consolidated Financial Information](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Information) [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company's revenue decreased by 4.5% year-on-year to RMB 924,953 thousand, and gross profit decreased by 22.0% to RMB 398,132 thousand, with profit for the period at RMB 204,038 thousand, a 26.5% year-on-year decrease, and basic earnings per share at RMB 0.32, down 25.6% from the prior year period | Indicator | 2025 (Thousand RMB) | 2024 (Thousand RMB) | | :--- | :--- | :--- | | Revenue | 924,953 | 968,108 | | Cost of Sales | (526,821) | (457,452) | | Gross Profit | 398,132 | 510,656 | | Selling Expenses | (17,659) | (21,429) | | Administrative Expenses | (94,288) | (92,228) | | Research and Development Expenses | (12,977) | (20,623) | | Net Impairment Losses on Financial Assets | (2,869) | (14,434) | | Other Income | 53,349 | 55,499 | | Other Gains, Net | 527 | 315 | | Finance Income | 5,850 | 8,032 | | Finance Expenses | (61,501) | (50,861) | | Net Finance Expenses | (55,651) | (42,829) | | Profit Before Tax | 252,581 | 360,298 | | Income Tax Expense | (48,543) | (82,727) | | Profit for the Period | 204,038 | 277,571 | | Profit for the Period Attributable to Owners of the Company | 203,923 | 277,414 | | Non-controlling Interests | 115 | 157 | | Basic Earnings Per Share (RMB) | 0.32 | 0.43 | - Total comprehensive income for the period was **RMB 204,820 thousand**, a decrease from **RMB 276,222 thousand** in the prior year period[5](index=5&type=chunk) [Interim Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets were RMB 7,366,877 thousand, slightly higher than RMB 7,355,053 thousand as of December 31, 2024, with total non-current assets increasing while total current assets decreased, and total liabilities and total equity remaining relatively stable | Indicator | June 30, 2025 (Thousand RMB) | December 31, 2024 (Thousand RMB) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Property, Plant and Equipment | 3,729,441 | 3,674,793 | | Investment Properties | 18,600 | 18,600 | | Right-of-Use Assets | 990,694 | 875,417 | | Goodwill | 330,953 | 330,953 | | Other Intangible Assets | 197,137 | 204,637 | | Investments in Associates | 75,000 | – | | Deferred Tax Assets | 87,688 | 80,212 | | Prepayments and Other Assets | 5,342 | 5,270 | | Financial Assets at Fair Value Through Profit or Loss | 31,500 | 22,500 | | **Total Non-current Assets** | **5,466,355** | **5,212,382** | | **Current Assets** | | | | Inventories | 13,764 | 8,674 | | Trade and Bills Receivables | 77,412 | 67,588 | | Other Receivables | 40,977 | 38,314 | | Prepayments and Other Assets | 99,423 | 103,999 | | Financial Assets at Fair Value Through Profit or Loss | 178,099 | 226,443 | | Restricted Cash | 34,405 | 32,854 | | Cash and Cash Equivalents | 1,456,442 | 1,664,799 | | **Total Current Assets** | **1,900,522** | **2,142,671** | | **Total Assets** | **7,366,877** | **7,355,053** | | **Current Liabilities** | | | | Trade and Other Payables | 1,428,688 | 687,802 | | Interest-bearing Bank and Other Borrowings | 688,453 | 629,727 | | Lease Liabilities | 9,649 | 9,279 | | Contract Liabilities | 219,098 | 1,018,382 | | Current Income Tax Liabilities | 49,541 | 46,206 | | Deferred Income | 16,033 | 26,796 | | **Total Current Liabilities** | **2,411,462** | **2,418,192** | | **Non-current Liabilities** | | | | Trade and Other Payables | 675 | 675 | | Interest-bearing Bank and Other Borrowings | 2,454,414 | 2,474,243 | | Deferred Tax Liabilities | 77,164 | 89,338 | | Lease Liabilities | 19,057 | 23,242 | | Deferred Income | 105,684 | 35,411 | | **Total Non-current Liabilities** | **2,656,994** | **2,622,909** | | **Total Liabilities** | **5,068,456** | **5,041,101** | | **Equity** | | | | Share Capital | 113 | 113 | | Share Premium | 2,214,564 | 2,444,289 | | Reserves | (1,909,367) | (1,910,123) | | Retained Earnings | 1,975,059 | 1,771,136 | | Non-controlling Interests | 18,052 | 8,537 | | **Total Equity** | **2,298,421** | **2,313,952** | | **Total Equity and Liabilities** | **7,366,877** | **7,355,053** | [Notes to the Interim Condensed Consolidated Financial Information](index=6&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information) [Company and Group Information](index=6&type=section&id=Company%20and%20Group%20Information) Neutech Group Limited, formerly Neusoft Education Technology Co. Limited, was incorporated in the Cayman Islands on August 20, 2018, and changed its name on December 4, 2024, with the Group primarily providing academic higher education services, education technology and services, and medical and eldercare services in mainland China - The Company changed its English name from 'Neusoft Education Technology Co. Limited' to 'Neutech Group Limited' on **December 4, 2024**[8](index=8&type=chunk) - The Group primarily provides academic higher education services, education technology and services, and medical and eldercare services in mainland China[8](index=8&type=chunk) [Basis of Preparation and Accounting Policies](index=6&type=section&id=Basis%20of%20Preparation%20and%20Accounting%20Policies) The interim condensed consolidated financial information is prepared in accordance with IAS 34 and is consistent with the accounting policies used in the 2024 annual financial statements, except for the initial adoption of IAS 21 (amended), which had no material impact on the Group's financial information - The interim condensed consolidated financial information is prepared in accordance with **International Accounting Standard 34 'Interim Financial Reporting'**[9](index=9&type=chunk) - The amendments to IAS 21 clarify how an entity should assess whether a currency is exchangeable into another currency and how to estimate the spot exchange rate when convertibility is lacking; as the currencies used by the Group for transactions and the functional currencies of Group entities translated into the Group's presentation currency are all convertible, the amendments had no impact on the interim condensed consolidated financial information[11](index=11&type=chunk) [Revenue and Other Income](index=7&type=section&id=Revenue%20and%20Other%20Income) For the six months ended June 30, 2025, total revenue was RMB 924,953 thousand, with academic higher education services remaining the primary source but decreasing by 2.9% year-on-year, while medical and eldercare services revenue significantly increased by 622.8%, and education technology and services revenue decreased by 39.7%, with other income, mainly from rent and property services, slightly decreasing in total | Service Type | 2025 (Thousand RMB) | 2024 (Thousand RMB) | | :--- | :--- | :--- | | Academic Higher Education Services | 779,904 | 802,937 | | Tuition Fees | 716,835 | 737,135 | | Accommodation Fees | 62,347 | 63,685 | | Telecommunication Equipment Rental Income | 722 | 2,117 | | Education Technology and Services | 95,393 | 158,301 | | Education Resources | 50,629 | 101,509 | | Lifelong Education Services | 44,764 | 56,792 | | Medical and Eldercare Services | 49,656 | 6,870 | | **Total Revenue** | **924,953** | **968,108** | | **Other Income** | | | | Rental Income and Property Services | 40,007 | 41,648 | | Government Grants and Subsidies | 7,220 | 9,475 | | Software System Technology Development | 3,981 | 3,559 | | Others | 2,141 | 817 | | **Total Other Income** | **53,349** | **55,499** | [Income Tax Expense](index=7&type=section&id=Income%20Tax%20Expense) The Group's entities in different jurisdictions are subject to varying income tax policies, including exemptions in the Cayman Islands and BVI, Hong Kong profits tax (no taxable profit this period), and PRC corporate income tax (25% standard rate, with some subsidiaries enjoying 15%-20% preferential rates), while the PRC withholding tax rate decreased from 10% in 2024 to 5% in 2025 - The Company's subsidiaries in the Cayman Islands and the British Virgin Islands are **exempt from income tax**[14](index=14&type=chunk)[15](index=15&type=chunk) - Hong Kong subsidiaries are subject to **8.25%** profits tax on the first HKD 2,000,000 of assessable profits and **16.5%** on the remainder; no assessable profits were generated in the current period[16](index=16&type=chunk)[17](index=17&type=chunk) - PRC subsidiaries are subject to a corporate income tax rate of **25%**, with some enjoying preferential rates of **15%-20%**; the applicable withholding tax rate decreased from **10% in 2024 to 5% in 2025**[19](index=19&type=chunk)[20](index=20&type=chunk) | Indicator | 2025 (Thousand RMB) | 2024 (Thousand RMB) | | :--- | :--- | :--- | | Current – PRC Current Income Tax Expense | 63,435 | 92,436 | | Under-provision in Prior Periods | 4,758 | – | | Deferred Income Tax | (19,650) | (9,709) | | **Total Income Tax Expense** | **48,543** | **82,727** | [Dividends](index=9&type=section&id=Dividends) On May 30, 2025, the company approved a final dividend of HKD 0.388 per share for the year ended December 31, 2024, totaling approximately RMB 229,775 thousand, with no interim dividend declared or paid for the six months ended June 30, 2025 - On **May 30, 2025**, the annual general meeting approved a final dividend of **HKD 0.388 per share** for the year ended December 31, 2024, totaling approximately **RMB 229,775 thousand**[22](index=22&type=chunk) - No interim dividend was declared or paid by the Company for the six months ended **June 30, 2025**[24](index=24&type=chunk) [Earnings Per Share Attributable to Owners of the Company](index=9&type=section&id=Earnings%20Per%20Share%20Attributable%20to%20Owners%20of%20the%20Company) For the six months ended June 30, 2025, basic earnings per share attributable to owners of the Company was RMB 0.32, a 25.6% decrease from RMB 0.43 in the prior year period, with earnings per share calculated based on profit attributable to ordinary equity holders and the weighted average number of ordinary shares - Basic earnings per share are calculated based on the profit attributable to ordinary equity holders of the Company for the year, using the weighted average number of ordinary shares in issue of **646,207,135 shares** (2024: **646,205,135 shares**)[25](index=25&type=chunk) | Indicator | 2025 (Thousand RMB) | 2024 (Thousand RMB) | | :--- | :--- | :--- | | Profit Attributable to Ordinary Equity Holders of the Company Used in Basic Earnings Per Share Calculation | 203,923 | 277,414 | | Weighted Average Number of Ordinary Shares in Issue for the Year Used in Basic and Diluted Earnings Per Share Calculation (Thousand Shares) | 646,207 | 646,205 | [Property, Plant and Equipment](index=10&type=section&id=Property%2C%20Plant%20and%20Equipment) For the six months ended June 30, 2025, the Group's asset acquisitions cost was RMB 150,085 thousand, a significant 59.6% year-on-year decrease, while during the same period, the net book value of assets disposed was RMB 982 thousand, resulting in a net loss of RMB 732 thousand - For the six months ended **June 30, 2025**, the Group's cost of asset acquisitions was **RMB 150,085 thousand** (June 30, 2024: **RMB 370,751 thousand**), a year-on-year decrease of **59.6%**[28](index=28&type=chunk) - The net book value of assets disposed by the Group for the six months ended **June 30, 2025**, was **RMB 982 thousand** (June 30, 2024: **RMB 1,436 thousand**), with a net loss on disposal of **RMB 732 thousand** (June 30, 2024: **RMB 1,322 thousand**)[28](index=28&type=chunk) [Trade and Bills Receivables](index=10&type=section&id=Trade%20and%20Bills%20Receivables) As of June 30, 2025, total trade and bills receivables were RMB 77,412 thousand, an increase from RMB 67,588 thousand as of December 31, 2024, with impairment provisions for trade receivables increasing from RMB 28,111 thousand to RMB 30,110 thousand, and the proportion of trade receivables over 2 years significantly increasing | Indicator | June 30, 2025 (Thousand RMB) | December 31, 2024 (Thousand RMB) | | :--- | :--- | :--- | | Trade Receivables | 104,311 | 95,699 | | Impairment | (30,110) | (28,111) | | Net Book Value | 74,201 | 67,588 | | Bills Receivable | 3,211 | – | | **Total** | **77,412** | **67,588** | | **Aging Analysis** | | | | Less Than 6 Months | 46,276 | 36,930 | | 6 Months to 1 Year | 14,687 | 19,632 | | 1 Year to 2 Years | 16,036 | 27,210 | | Over 2 Years | 27,312 | 11,927 | | **Total** | **104,311** | **95,699** | [Trade and Other Payables](index=11&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables significantly increased to RMB 1,429,363 thousand, a 107.6% increase from RMB 688,477 thousand as of December 31, 2024, with amounts due to related parties surging from RMB 97,214 thousand to RMB 645,544 thousand, and dividends payable increasing from zero to RMB 228,654 thousand | Indicator | June 30, 2025 (Thousand RMB) | December 31, 2024 (Thousand RMB) | | :--- | :--- | :--- | | **Trade and Other Payables** | | | | Trade Payables | 26,399 | 21,045 | | Bills Payable | 41,749 | 24,541 | | **Subtotal** | **68,148** | **45,586** | | **Other Payables** | | | | Amounts Due to Related Parties | 645,544 | 97,214 | | Sundry Fees Collected from Students | 35,335 | 58,000 | | Accrued Salaries and Welfare | 48,342 | 90,614 | | Deposits | 26,810 | 29,425 | | Government Subsidies Payable to Students | 38,951 | 10,800 | | Payables for Property, Plant and Equipment | 251,764 | 304,420 | | Accrued Administrative Expenses | 21,094 | 15,036 | | Other Taxes Payable | 8,696 | 11,188 | | Interest Payable | 3,286 | 3,708 | | Dividends Payable | 228,654 | – | | Others | 52,739 | 22,486 | | **Subtotal** | **1,361,215** | **642,891** | | **Total** | **1,429,363** | **688,477** | | **Analyzed as:** | | | | Non-current Portion | 675 | 675 | | Current Portion | 1,428,688 | 687,802 | - Trade payables are non-interest bearing and typically settled within **180 days**[30](index=30&type=chunk) [Interest-bearing Bank and Other Borrowings](index=12&type=section&id=Interest-bearing%20Bank%20and%20Other%20Borrowings) As of June 30, 2025, total interest-bearing bank and other borrowings were RMB 3,142,867 thousand, a slight increase from RMB 3,103,970 thousand as of December 31, 2024, with total current borrowings increasing to RMB 688,453 thousand while total non-current borrowings slightly decreased, and borrowing interest rates ranging from 3.00% to 6.67% with various maturity dates | Category | June 30, 2025 (Thousand RMB) | December 31, 2024 (Thousand RMB) | | :--- | :--- | :--- | | **Current** | | | | Bank Loans – Unsecured | 227,938 | 330,081 | | Other Loans – Secured | 31,372 | 36,135 | | Current Portion of Long-term Bank Loans – Secured | 277,820 | 232,910 | | Current Portion of Long-term Bank Loans – Unsecured | 150,983 | 30,269 | | Current Portion of Long-term Other Borrowings – Unsecured | 340 | 332 | | **Total – Current** | **688,453** | **629,727** | | **Non-current** | | | | Bank Loans – Secured | 1,821,301 | 1,862,392 | | Bank Loans – Unsecured | 620,138 | 595,623 | | Other Loans – Secured | 12,975 | 16,228 | | **Total – Non-current** | **2,454,414** | **2,474,243** | | **Grand Total** | **3,142,867** | **3,103,970** | - Borrowings have maturity dates ranging from **within one year to over five years**, with interest rates between **3.00% and 6.67%**[31](index=31&type=chunk) [Contract Liabilities](index=13&type=section&id=Contract%20Liabilities) As of June 30, 2025, total contract liabilities were RMB 219,098 thousand, a significant 78.5% decrease from RMB 1,018,382 thousand as of December 31, 2024, primarily due to a substantial reduction in advance payments from customers for academic higher education services, from RMB 953,754 thousand to RMB 186,219 thousand | Category of Advance Payments from Customers | June 30, 2025 (Thousand RMB) | December 31, 2024 (Thousand RMB) | | :--- | :--- | :--- | | Academic Higher Education Services | 186,219 | 953,754 | | Tuition Fees | 165,095 | 870,170 | | Accommodation Fees | 21,124 | 83,584 | | Education Technology and Services | 27,871 | 58,268 | | Education Resources | 14,657 | 18,366 | | Lifelong Education Services | 13,214 | 39,902 | | Medical and Eldercare Services | 4,231 | 5,604 | | Software System Technology Development | 777 | 756 | | **Total** | **219,098** | **1,018,382** | [Fair Value and Fair Value Hierarchy of Financial Instruments](index=13&type=section&id=Fair%20Value%20and%20Fair%20Value%20Hierarchy%20of%20Financial%20Instruments) As of June 30, 2025, financial assets at fair value through profit or loss were RMB 209,599 thousand, a decrease from RMB 248,943 thousand as of December 31, 2024, with these financial assets primarily classified under Level 3 of the fair value hierarchy, and valuations relying on unobservable inputs such as expected yields of bank wealth management products and net asset values of unlisted funds | Indicator | June 30, 2025 (Thousand RMB) | December 31, 2024 (Thousand RMB) | | :--- | :--- | :--- | | Financial Assets at Fair Value Through Profit or Loss | 209,599 | 248,943 | | Interest-bearing Bank and Other Borrowings | 3,142,867 | 3,103,970 | - Key unobservable inputs for financial instrument valuation include expected yields of bank wealth management products (**0.84% to 2.76%**) and net asset values of unlisted fund investments; fair value is sensitive to these inputs[32](index=32&type=chunk) | Inputs Used in Fair Value Measurement | June 30, 2025 (Thousand RMB) | December 31, 2024 (Thousand RMB) | | :--- | :--- | :--- | | Level 3 (Significant Unobservable Inputs) Financial Assets | 209,599 | 248,943 | | Level 2 (Significant Observable Inputs) Interest-bearing Bank and Other Borrowings | 3,142,867 | 3,103,970 | - No transfers between Level 1 and Level 2 occurred during the period, and no transfers into or out of Level 3 for financial assets and liabilities[34](index=34&type=chunk) [About Us](index=16&type=section&id=About%20Us) [Group Overview and Strategic Transformation](index=16&type=section&id=Group%20Overview%20and%20Strategic%20Transformation) Neutech Group Limited, since its founding in 2000, has become a leader in digital talent education services in China, and starting in 2025, the Group fully initiated a strategic transformation to build a new integrated "Education, Medical, Eldercare, Wellness, and Tourism" ecosystem, establishing five diversified business segments aimed at achieving sustainable development through technology empowerment and educational innovation - The Group has become a leader in digital talent education services in China and, starting in **2025**, fully initiated a strategic transformation to build a new integrated 'Education, Medical, Eldercare, Wellness, and Tourism' ecosystem[38](index=38&type=chunk) - The Group has established five diversified business segments: (i) Education Services; (ii) Medical and Eldercare Services; (iii) Health Technology; (iv) Wellness and Tourism Services; and (v) University Science Parks and Campus Services[38](index=38&type=chunk) - The Group's vision is 'Committed to becoming a leader in the Education, Medical, Eldercare, Wellness, and Tourism ecosystem', and its mission is 'Technology empowers the Education, Medical, and Eldercare ecosystem, educational innovation for a smart digital life'[38](index=38&type=chunk) | Business Type | 2025 (Thousand RMB) | 2024 (Thousand RMB) | Change % | Proportion of Total Revenue | | :--- | :--- | :--- | :--- | :--- | | Academic Higher Education Services | 779,904 | 802,937 | –2.9% | 84.3% | | Education Technology and Services | 95,393 | 158,301 | –39.7% | 10.3% | | Education Resource Output | 50,629 | 101,509 | –50.1% | 5.5% | | Lifelong Education Services | 44,764 | 56,792 | –21.2% | 4.8% | | Medical and Eldercare Services | 49,656 | 6,870 | 622.8% | 5.4% | | **Total** | **924,953** | **968,108** | **–4.5%** | **100.0%** | [Business Review](index=17&type=section&id=Business%20Review) [Academic Higher Education Services](index=17&type=section&id=Academic%20Higher%20Education%20Services) Academic higher education services generated approximately RMB 779.9 million in revenue, a 2.9% year-on-year decrease, with the Group's three IT application-oriented undergraduate universities maintaining their leading positions, receiving numerous awards for educational quality, program development, and innovation and entrepreneurship education, while enrollment quotas and student numbers continued to grow, with an increasing proportion of high-quality students - Academic higher education services generated approximately **RMB 779.9 million** in revenue during the reporting period[41](index=41&type=chunk) - The total enrollment quota for the three universities for the **2025/2026 academic year** exceeded **21,000 students**, a **6.0%** increase from the previous academic year, with undergraduate quotas growing by **8.5%**; as of **June 30, 2025**, the total number of enrolled students across the three universities was nearly **58,000**, a **1.8%** increase from the same period in **2024**[48](index=48&type=chunk)[50](index=50&type=chunk)[51](index=51&type=chunk) - As the **2025/2026 academic year** enrollment is nearing completion, the highest admission scores for the physics group at Dalian, Chengdu, and Guangdong campuses all exceeded their respective provincial undergraduate control lines, indicating a continuous increase in high-quality student intake[52](index=52&type=chunk) [Dalian Campus](index=17&type=section&id=Dalian%20Campus) Dalian Campus offers 33 undergraduate programs, 9 vocational programs, etc., including 8 health technology-related programs, with two new vocational programs to be added in the 2025/2026 academic year, and has accumulated 7 national-level first-class undergraduate program construction sites, ranking first among private universities nationwide, and also ranks first in the national private university innovation and entrepreneurship education index - Dalian Campus offers **33 undergraduate programs**, **9 vocational programs**, **9 junior-to-senior transfer programs**, and **2 vocational undergraduate programs**, including **8 health technology-related programs**[42](index=42&type=chunk) - For the **2025/2026 academic year**, **2 new vocational programs** (nursing, elderly health management) were approved[42](index=42&type=chunk) - Accumulated **7 national-level first-class undergraduate program construction sites** and **8 provincial-level first-class undergraduate program construction sites**, with the number of national-level first-class undergraduate program construction sites ranking **first among private universities nationwide**[42](index=42&type=chunk)[43](index=43&type=chunk) - Ranked **first among national private universities** in the **2024 China Undergraduate Innovation and Entrepreneurship Education Index**[43](index=43&type=chunk) [Chengdu Campus](index=18&type=section&id=Chengdu%20Campus) Chengdu Campus offers 33 undergraduate programs, 14 junior-to-senior transfer programs, etc., including 6 health technology-related programs, with one new undergraduate program and one vocational undergraduate program to be added in the 2025/2026 academic year, and ranks third among national private universities and first among Sichuan private universities in the National University Computer Competition Index, also holding national first place in several professional rankings - Chengdu Campus offers **33 undergraduate programs**, **14 junior-to-senior transfer programs**, and **1 vocational undergraduate program**, including **6 health technology-related programs**[44](index=44&type=chunk) - For the **2025/2026 academic year**, **1 new undergraduate program** (robotics engineering) and **1 vocational undergraduate program** (software engineering technology) were approved[44](index=44&type=chunk) - Ranked **third among national private universities** and **first among Sichuan private universities** in the **National University Computer Competition Index**, and has consistently ranked **first among national private universities**[45](index=45&type=chunk)[46](index=46&type=chunk) - In the **2025 Alumni Association Private University Professional Rankings**, software engineering, digital media technology, integrated circuit design, and integrated systems programs all ranked **first nationwide**[46](index=46&type=chunk) [Guangdong Campus](index=19&type=section&id=Guangdong%20Campus) Guangdong Campus offers 23 undergraduate programs, 3 vocational programs, etc., including 1 health technology-related program, and has accumulated 3 provincial-level first-class undergraduate program construction sites, with the Visual Communication Design program ranking first among Guangdong private universities in the 2025 Soft Science China University Professional Rankings, and the campus receiving honors such as "Guangdong Province 2024 Most Network Influential Undergraduate University" - Guangdong Campus offers **23 undergraduate programs**, **3 vocational programs**, and **12 junior-to-senior transfer programs**, including **1 health technology-related program**[47](index=47&type=chunk) - Accumulated **3 provincial-level first-class undergraduate program construction sites**, **1 national-level first-class undergraduate course**, and **20 provincial-level first-class undergraduate courses**[47](index=47&type=chunk) - In the **2025 Soft Science China University Professional Rankings**, the Visual Communication Design program ranked **first among Guangdong private universities**[49](index=49&type=chunk) - Awarded 'Guangdong Province **2024 Most Network Influential Undergraduate University**' and '**2024 High-Quality Employment Best Innovation and Practice University**' honors[49](index=49&type=chunk) [Enrollment Quotas and Student Numbers](index=19&type=section&id=Enrollment%20Quotas%20and%20Student%20Numbers) For the 2025/2026 academic year, the total enrollment quota for the three universities reached 21,396 students, a 6.0% year-on-year increase, with undergraduate quotas growing by 8.5%, while as of June 30, 2025, the total number of enrolled students was 57,791, a 1.8% year-on-year increase, and Chengdu Campus ceased vocational program enrollment for the 2025/2026 academic year due to campus capacity issues | Campus | 2025/2026 Academic Year Enrollment Quota | 2024/2025 Academic Year Enrollment Quota | Change in Number | Change % | | :--- | :--- | :--- | :--- | :--- | | Dalian Campus Subtotal | 9,742 | 9,251 | 491 | 5.3% | | Chengdu Campus Subtotal | 7,123 | 6,723 | 400 | 5.9% | | Guangdong Campus Subtotal | 4,531 | 4,206 | 325 | 7.7% | | **Total** | **21,396** | **20,180** | **1,216** | **6.0%** | | **Number of Enrolled Students** | **June 30, 2025** | **June 30, 2024** | **Change %** | | | Dalian Campus Subtotal | 23,224 | 21,229 | 9.4% | | | Chengdu Campus Subtotal | 21,557 | 21,934 | –1.7% | | | Guangdong Campus Subtotal | 13,010 | 13,618 | –4.5% | | | **Total** | **57,791** | **56,781** | **1.8%** | | - Chengdu Campus ceased vocational program enrollment for the **2025/2026 academic year**, primarily due to **campus capacity issues**[50](index=50&type=chunk) [High-Quality Student Intake](index=22&type=section&id=High-Quality%20Student%20Intake) Benefiting from high-quality program development and reputation, the Group's three universities continue to attract high-quality students, with the highest admission scores for the physics group at Dalian, Chengdu, and Guangdong campuses in the 2025/2026 academic year enrollment significantly exceeding their respective provincial undergraduate control lines by 99, 100, and 68 points, respectively - The highest admission score for the physics group at Dalian Campus exceeded Liaoning Province's undergraduate control line by **99 points**[52](index=52&type=chunk) - The highest admission score for the physics group at Chengdu Campus exceeded Sichuan Province's undergraduate control line by **100 points**[52](index=52&type=chunk) - The highest admission score for the physics group at Guangdong Campus exceeded Guangdong Province's undergraduate control line by **68 points**[52](index=52&type=chunk) [Education Technology and Services](index=22&type=section&id=Education%20Technology%20and%20Services) Education technology and services revenue was approximately RMB 95.4 million, a 39.7% year-on-year decrease, with the Group building a "4S" product and service system covering content, software, platforms, and data, and fully advancing the R&D and application of emerging technologies like AI, big data, and metaverse in education, while lifelong education services combine continuing education with eldercare education to explore new business opportunities - Education technology and services generated approximately **RMB 95.4 million** in revenue during the reporting period[53](index=53&type=chunk) - The Group has built a '4S' product and service system covering content, software, platforms, and data (CaaS, SaaS, PaaS, DaaS), combined with online and offline lifelong education services[53](index=53&type=chunk) - Fully advancing the technology R&D and application of emerging frontier technologies such as AI, big data, and metaverse in the education sector, developing and iterating multiple platform software, teaching content, and smart training rooms[54](index=54&type=chunk) [Education Resource Output](index=22&type=section&id=Education%20Resource%20Output) Education resource output business generated approximately RMB 50.6 million in revenue, a 50.1% year-on-year decrease, mainly due to delayed delivery of education technology products, with the Group continuing to optimize its smart education platform software, digital teaching content, and smart training room product matrix, and partnering with 60 institutions for program co-construction and industry-academia collaboration, covering nearly 18,000 enrolled students - Education resource output business generated approximately **RMB 50.6 million** in revenue[65](index=65&type=chunk) - Smart Education Platform V3.0 fully optimizes functions, providing a lightweight online experimental environment, supporting full-process data tracking and automatic code detection, and deeply integrating AI teaching assistant tools[57](index=57&type=chunk) - Developed digital teaching content products for six major professional fields: computer and software, artificial intelligence, big data, digital media, health and medical care, and innovation and entrepreneurship[59](index=59&type=chunk) - Built smart training rooms serving the cultivation of application-oriented talents and practical teaching in universities, covering multiple professional directions such as computer and software, artificial intelligence, big data, and digital media[60](index=60&type=chunk)[61](index=61&type=chunk) - Partnered with **60 institutions** for program co-construction and industry-academia collaboration, covering nearly **18,000 enrolled students**[65](index=65&type=chunk) [Lifelong Education Services](index=27&type=section&id=Lifelong%20Education%20Services) Lifelong education services generated approximately RMB 44.8 million in revenue, a 21.2% year-on-year decrease, mainly due to reduced student intake caused by market changes, with the Group obtaining national and provincial training qualifications in continuing education, delivering 53 training programs for 43 institutional clients, and simultaneously expanding into eldercare education, establishing "Neusoft Phoenix College" and proposing the "LIFECARES" new concept for eldercare education, enrolling over 360 students during the reporting period - Lifelong education business generated approximately **RMB 44.8 million** in revenue during the reporting period[66](index=66&type=chunk) - Continuing education services successfully obtained **2 national-level** and **2 provincial-level training qualifications**, delivering **53 training programs** for **43 institutional clients**, with government and state-owned enterprise training programs accounting for **81%**[67](index=67&type=chunk) - Self-developed online education platform 'Neusoft Education Online' has accumulated **2.328 million registered users**[68](index=68&type=chunk) - Expanded into eldercare education, establishing 'Neusoft Phoenix College' and proposing the 'LIFECARES' new concept for eldercare education, integrating leisure, eldercare, medical care, learning, and contribution, enrolling over **360 students** during the reporting period[69](index=69&type=chunk)[70](index=70&type=chunk) [Medical and Eldercare Business](index=29&type=section&id=Medical%20and%20Eldercare%20Business) Medical and eldercare business generated approximately RMB 49.7 million in revenue, a significant 622.8% year-on-year increase, primarily due to the acquisition of Neusoft Health Medical and its subsidiaries completed on May 31, 2024, with the Group strategically expanding into the silver economy market by integrating education and medical/eldercare businesses to build a new mutually beneficial ecosystem, including medical services, wellness, and eldercare technology services - Medical and eldercare business generated approximately **RMB 49.7 million** in revenue during the reporting period, a **622.8%** increase from the same period last year[71](index=71&type=chunk) - Medical and eldercare facilities serve as practical bases for students and research bases for teachers in related university programs; the universities' teaching foundation and infrastructure support eldercare education, which in turn provides a customer base for medical and eldercare businesses, while medical services offer healthcare support for eldercare education and services[71](index=71&type=chunk) [Medical Services](index=29&type=section&id=Medical%20Services) Ruikang Cardiovascular Hospital, a non-profit tertiary specialized hospital, handled over 28,000 outpatient and emergency visits and over 5,800 inpatient and surgical cases, a 34% year-on-year increase, while Ruikang Dental Hospital, Dalian's second tertiary standard dental specialized hospital, handled over 10,000 outpatient visits and received the "Liaoning Province Elderly-Friendly Medical Institution" honor - Ruikang Cardiovascular Hospital is a non-profit tertiary specialized cardiovascular hospital operated in cooperation with the Second Affiliated Hospital of Dalian Medical University, and has obtained medical insurance settlement qualifications[72](index=72&type=chunk) - During the reporting period, Ruikang Cardiovascular Hospital handled over **28,000 outpatient and emergency visits** and over **5,800 inpatient and surgical cases**, with an average bed occupancy rate of **45%**; inpatient and surgical cases increased by **34%** compared to the same period in **2024**[73](index=73&type=chunk) - Ruikang Dental Hospital is Dalian's second large-scale smart dental specialized hospital built to tertiary standards, has obtained medical insurance settlement qualifications, and handled over **10,000 outpatient visits** during the reporting period[74](index=74&type=chunk)[75](index=75&type=chunk) - Ruikang Dental Hospital received the 'Liaoning Province Elderly-Friendly Medical Institution' honor awarded by the Liaoning Provincial Health Commission[74](index=74&type=chunk) [Wellness and Eldercare Technology Services](index=30&type=section&id=Wellness%20and%20Eldercare%20Technology%20Services) Ruikang Home Eldercare Institute, a high-end eldercare center deeply integrating medical and eldercare services, achieved an 88% occupancy rate, primarily serving semi-disabled and higher-level care elderly, with the Group's Chengdu Qingcheng Kangdao Hotel officially opening, and in May 2025, the Group acquired approximately 4.2255% equity in Xikang Yunshe to expand wellness tourism services, while simultaneously actively developing eldercare technology businesses, launching Shenyang City's smart eldercare platform "Shengqing Kangyang," with Dalian City's platform entering internal testing - Ruikang Home Eldercare Institute is planned with **50 rooms** and **59 beds**, fully covered with millimeter-wave radar sensing equipment, achieving an **88% occupancy rate**; **92%** of residents are over **80 years old**, primarily requiring semi-disabled and higher-level care[76](index=76&type=chunk)[77](index=77&type=chunk) - Chengdu Qingcheng Kangdao Hotel (Qingcheng Mountain Xikang Yunshe Resort Hotel) officially opened, focusing on health and healing, and serving as a venue for academic exchanges and student practical training[78](index=78&type=chunk) - In **May 2025**, acquired approximately **4.2255%** equity in Xikang Yunshe for a consideration of **RMB 30 million**, and invested **RMB 45 million**; as of **June 30, 2025**, the Group held approximately **9.9341%** equity in Xikang Yunshe[79](index=79&type=chunk) - Officially launched Shenyang City's smart eldercare platform – 'Shengqing Kangyang', and Dalian City's smart eldercare platform has entered internal testing[82](index=82&type=chunk) [University Science Parks and Campus Services](index=33&type=section&id=University%20Science%20Parks%20and%20Campus%20Services) The Group, through its industrial service company, unifies management and professional operations for the three universities' science park operations, campus support services, and infrastructure maintenance, aiming to build a high-quality "Education, Medical, Eldercare, Wellness, and Tourism" logistics service, with science park operations forming a distinctive "three locations, three parks, three platforms" system, campus life services introducing well-known brands, and infrastructure project management promoting campus expansion projects - The Group, through its industrial service company, unifies management and professional operations for the three universities' science park operations, campus support services, and campus infrastructure maintenance[83](index=83&type=chunk) - Science park operations have established a distinctive operating system of 'three locations (Dalian, Chengdu, Foshan parks), three parks (Education Park, Digital Park, Medical and Eldercare Park), and three platforms (Lifelong Education, Technology Innovation, Medical and Eldercare Wellness and Tourism)'[84](index=84&type=chunk) - Dalian Park has become Liaoning Province's first provincial-level university science park for private universities, approved as a national-level makerspace; Chengdu Park and Foshan Park have also been recognized as national-level makerspaces and national-level technology business incubators, respectively[85](index=85&type=chunk) - As of **June 30, 2025**, provided campus life services to over **60,000 faculty and staff**, with nearly **150 merchants** on campus, and newly introduced well-known brands such as KFC, McDonald's, Luckin Coffee, and Tea Baidao[87](index=87&type=chunk) - Dalian Campus and Guangdong Campus have initiated construction projects for the Health Medical Technology Park Apartments and the International Exchange Center and University Science Park, respectively, expected to add approximately **8,000 beds**[88](index=88&type=chunk)[89](index=89&type=chunk) [Science Park Operations](index=33&type=section&id=Science%20Park%20Operations) The Group operates university science parks leveraging the infrastructure of its three universities, forming a distinctive "three locations, three parks, three platforms" operating system, with Dalian Park becoming Liaoning Province's first provincial-level university science park for private universities and approved as a national-level makerspace, while Chengdu Park and Foshan Park have also been approved as national-level makerspaces and national-level technology business incubators, respectively, attracting IT enterprises and promoting industry-academia-research integration - Science park operations have established a distinctive operating system of 'three locations (Dalian Park, Chengdu Park, Foshan Park), three parks (Education Park, Digital Park, Medical and Eldercare Park), and three platforms (Lifelong Education, Technology Innovation, Medical and Eldercare Wellness and Tourism)'[84](index=84&type=chunk) - Dalian Park has become Liaoning Province's first provincial-level university science park for private universities, approved as a national-level makerspace, and an important component of the 'National Software Industry Base' and 'China Service Outsourcing Demonstration City'[85](index=85&type=chunk) - Chengdu Park and Foshan Park have been successively recognized as 'national-level makerspaces' and 'national-level technology business incubators', constructing an open, shared, and industry-education integrated innovation and entrepreneurship ecosystem through industry-academia-research integration and enterprise-into-campus initiatives[85](index=85&type=chunk) [Campus Life Services](index=34&type=section&id=Campus%20Life%20Services) The Group actively responds to national policies, providing quality campus life services for faculty and students, improving the service system, and innovating service models, with over 60,000 faculty and staff receiving safe, high-quality, and efficient campus life services as of June 30, 2025, and nearly 150 merchants on campus, with new introductions including well-known brands such as KFC, McDonald's, Luckin Coffee, and Tea Baidao to meet diverse needs - As of **June 30, 2025**, provided safe, high-quality, and efficient campus life services to over **60,000 faculty and staff**[87](index=87&type=chunk) - Nearly **150 merchants** are located on campus, with new introductions during the reporting period including well-known brands such as KFC, McDonald's, Luckin Coffee, and Tea Baidao[87](index=87&type=chunk) [Infrastructure Project Management and Property Maintenance Management](index=34&type=section&id=Infrastructure%20Project%20Management%20and%20Property%20Maintenance%20Management) The industrial service company is solely responsible for the infrastructure project management and property maintenance management of the three universities, aiming to build a beautiful, comfortable, and high-quality campus environment while improving efficiency, with Dalian Campus initiating the Health Medical Technology Park Apartment construction project in October 2024, expected to be completed by December 2025, adding approximately 6,000 beds, and Guangdong Campus initiating the International Exchange Center and University Science Park construction project in February 2025, with some buildings expected to be completed by August 2026, adding approximately 2,000 beds - The industrial service company is solely responsible for the infrastructure project management and property maintenance management of the three universities, promoting standardized business processes, centralized management, and maximized efficiency[88](index=88&type=chunk) - Dalian Campus purchased land use rights and initiated the Health Medical Technology Park Apartment construction project, expected to be completed by **December 2025**, which is projected to add approximately **6,000 beds** to the campus capacity[88](index=88&type=chunk) - Guangdong Campus purchased land use rights and initiated the International Exchange Center and University Science Park construction project, with some buildings expected to be completed by **August 2026**, which is projected to add approximately **2,000 beds** to the campus capacity[89](index=89&type=chunk) [Financial Review](index=35&type=section&id=Financial%20Review) [Revenue](index=35&type=section&id=Revenue) For the six months ended June 30, 2025, total revenue was approximately RMB 925.0 million, a 4.5% decrease from the prior year period, with academic higher education services revenue decreasing by 2.9%, education technology and services revenue decreasing by 39.7%, while medical and eldercare services revenue significantly increased by 622.8% due to the acquisition of Neusoft Health Medical and its subsidiaries - For the six months ended **June 30, 2025**, revenue was approximately **RMB 925.0 million**, a **4.5%** decrease from the prior year period[90](index=90&type=chunk) - Academic higher education services revenue decreased by **2.9%**, primarily due to differences in the academic calendar; education technology and services revenue decreased by **39.7%**, with education resource output revenue decreasing by **50.1%** (due to delayed delivery) and lifelong education services revenue decreasing by **21.2%** (due to reduced student intake from market changes)[92](index=92&type=chunk) - Medical and eldercare services revenue increased by **622.8%**, primarily due to the acquisition of Neusoft Health Medical Management Co., Ltd. and its subsidiaries completed on **May 31, 2024**, with all related revenue consolidated into the Group in the first half of **2025**[92](index=92&type=chunk) [Cost of Sales](index=35&type=section&id=Cost%20of%20Sales) For the six months ended June 30, 2025, cost of sales was approximately RMB 526.8 million, a 15.2% year-on-year increase, primarily attributable to the full consolidation of cost of sales from Neusoft Health Medical and its subsidiaries after the acquisition in May 2024, as well as increased staff remuneration and depreciation expenses due to expanded school scale and completion of expansion projects - For the six months ended **June 30, 2025**, cost of sales was approximately **RMB 526.8 million**, a **15.2%** increase from the prior year period[90](index=90&type=chunk) - Primarily due to the full consolidation of cost of sales from Neusoft Health Medical Management Co., Ltd. and its subsidiaries into the Group in the first half of **2025** after the acquisition[90](index=90&type=chunk) - Increased staff remuneration and depreciation expenses due to the expanded student scale of the three universities and the successive completion and operation of expansion projects[90](index=90&type=chunk) [Gross Profit](index=35&type=section&id=Gross%20Profit) For the six months ended June 30, 2025, gross profit was approximately RMB 398.1 million, a 22.0% year-on-year decrease, with this decline being a combined result of reduced revenue and increased cost of sales - For the six months ended **June 30, 2025**, gross profit was approximately **RMB 398.1 million**, a **22.0%** decrease from the prior year period[91](index=91&type=chunk) [Selling Expenses](index=36&type=section&id=Selling%20Expenses) For the six months ended June 30, 2025, selling expenses were approximately RMB 17.7 million, a 17.6% year-on-year decrease, with this reduction primarily due to the company optimizing its sales team structure, leading to lower staff remuneration for sales personnel - For the six months ended **June 30, 2025**, selling expenses were approximately **RMB 17.7 million**, a **17.6%** decrease from the prior year period[93](index=93&type=chunk) - Primarily due to the company optimizing its sales team structure, resulting in reduced staff remuneration for sales personnel[93](index=93&type=chunk) [Research and Development Expenses](index=36&type=section&id=Research%20and%20Development%20Expenses) For the six months ended June 30, 2025, research and development expenses were approximately RMB 13.0 million, a 37.1% year-on-year decrease, with this decline mainly due to the substantial completion of major R&D projects, such as the smart education platform, in the previous period - For the six months ended **June 30, 2025**, research and development expenses were approximately **RMB 13.0 million**, a **37.1%** decrease from the prior year period[94](index=94&type=chunk) - This decrease was primarily due to the substantial completion of major R&D projects, such as the smart education platform, in the previous period[94](index=94&type=chunk) [Net Impairment Losses on Financial Assets](index=36&type=section&id=Net%20Impairment%20Losses%20on%20Financial%20Assets) For the six months ended June 30, 2025, net impairment losses on financial assets were approximately RMB 2.9 million, an 80.1% year-on-year decrease, with this reduction primarily due to the recovery of some receivables, leading to a lower bad debt ratio - For the six months ended **June 30, 2025**, net impairment losses on financial assets were approximately **RMB 2.9 million**, an **80.1%** decrease from the prior year period[95](index=95&type=chunk) - Primarily due to the recovery of some receivables, leading to a lower bad debt ratio[95](index=95&type=chunk) [Other Income](index=36&type=section&id=Other%20Income) For the six months ended June 30, 2025, other income was approximately RMB 53.3 million, a 3.9% year-on-year decrease, with this decline primarily due to a reduction in government grants - For the six months ended **June 30, 2025**, other income was approximately **RMB 53.3 million**, a **3.9%** decrease from the prior year period[96](index=96&type=chunk) - Primarily due to a reduction in government grants[96](index=96&type=chunk) [Net Finance Expenses](index=36&type=section&id=Net%20Finance%20Expenses) For the six months ended June 30, 2025, net finance expenses were approximately RMB 55.7 million, a 29.9% year-on-year increase, with this primarily due to an increase in interest expenses - For the six months ended **June 30, 2025**, net finance expenses were approximately **RMB 55.7 million**, a **29.9%** increase from the prior year period[97](index=97&type=chunk) - Primarily due to an increase in interest expenses[97](index=97&type=chunk) [Income Tax Expense](index=36&type=section&id=Income%20Tax%20Expense) For the six months ended June 30, 2025, income tax expense was approximately RMB 48.5 million, a 41.3% year-on-year decrease, with this decline primarily due to a reduction in taxable profit during the reporting period - For the six months ended **June 30, 2025**, income tax expense was approximately **RMB 48.5 million**, a **41.3%** decrease from the prior year period[98](index=98&type=chunk) - Primarily due to a reduction in taxable profit during the reporting period[98](index=98&type=chunk) [Profit for the Period](index=37&type=section&id=Profit%20for%20the%20Period) For the six months ended June 30, 2025, profit for the period decreased by approximately 26.5% year-on-year, and profit attributable to owners of the Company was approximately RMB 203.9 million, also a 26.5% decrease, with earnings per share also decreasing by approximately 25.6%, primarily due to the decline in profit for the period - For the six months ended **June 30, 2025**, profit for the period decreased by approximately **26.5%** year-on-year[99](index=99&type=chunk) - Profit attributable to owners of the Company was approximately **RMB 203.9 million**, a **26.5%** decrease from the prior year period[99](index=99&type=chunk) - Earnings per share decreased by approximately **25.6%** year-on-year, primarily due to the decline in profit for the period[99](index=99&type=chunk) [Non-IFRS Measures](index=37&type=section&id=Non-IFRS%20Measures) To supplement IFRS, the Group uses "adjusted net profit," "adjusted net profit attributable to owners of the Company," and "adjusted net profit margin" as additional financial measures to eliminate the impact of non-recurring items (such as net exchange losses/gains) that management believes do not reflect operating performance, with adjusted net profit approximately RMB 204.1 million as of June 30, 2025, a 26.3% year-on-year decrease, and an adjusted net profit margin of 22.1% - The Group's adjusted net profit is derived by deducting the impact of net exchange losses/(gains) from the profit for the year/period[100](index=100&type=chunk) | Indicator | 2025 (Thousand RMB) | 2024 (Thousand RMB) | | :--- | :--- | :--- | | Profit for the Period | 204,038 | 277,571 | | Adjustments: Net Exchange Losses/(Gains) | 91 | (777) | | **Adjusted Net Profit** | **204,129** | **276,794** | | Profit for the Period Attributable to Owners of the Company | 203,923 | 277,414 | | Adjustments: Net Exchange Losses/(Gains) | 91 | (777) | | **Adjusted Net Profit Attributable to Owners of the Company** | **204,014** | **276,637** | - For the six months ended **June 30, 2025**, adjusted net profit was approximately **RMB 204.1 million**, a **26.3%** decrease from the prior year period; the adjusted net profit margin was **22.1%** (2024: **28.6%**)[103](index=103&type=chunk) [Financial and Liquidity Position](index=39&type=section&id=Financial%20and%20Liquidity%20Position) As of June 30, 2025, the Group's cash and cash equivalents were approximately RMB 1,456.4 million, a decrease from December 31, 2024, with total borrowings from financial institutions at approximately RMB 3,142.9 million, primarily denominated in RMB, and comprising both fixed and floating interest rates, while net current liabilities increased and the current ratio decreased, and the Group had no significant contingent liabilities or foreign exchange risks, with both the interest-bearing debt to asset ratio and capital gearing ratio slightly decreasing, and capital expenditures mainly for campus upgrades and expansion, and equity acquisition of Xikang Yunshe completed during the reporting period, with land acquisition for Guangdong Campus planned - As of **June 30, 2025**, the Group's cash and cash equivalents were approximately **RMB 1,456.4 million** (December 31, 2024: approximately **RMB 1,664.8 million**)[106](index=106&type=chunk) - The Group's total borrowings from financial institutions as of **June 30, 2025**, were approximately **RMB 3,142.9 million** (December 31, 2024: approximately **RMB 3,104.0 million**)[106](index=106&type=chunk) - As of **June 30, 2025**, net current liabilities were approximately **RMB 510.9 million** (December 31, 2024: approximately **RMB 275.5 million**), and the current ratio was **0.79** (December 31, 2024: **0.89**)[108](index=108&type=chunk) - As of **June 30, 2025**, the Group's interest-bearing debt to asset ratio was **43.1%** (December 31, 2024: **44.0%**), and the capital gearing ratio was **138.0%** (December 31, 2024: **139.7%**)[112](index=112&type=chunk)[113](index=113&type=chunk) - For the six months ended **June 30, 2025**, the Group's capital expenditure was approximately **RMB 331.2 million**, primarily related to upgrading and expanding campuses[114](index=114&type=chunk) - On **May 20, 2025**, approximately **4.2255%** equity in Xikang Yunshe was acquired for a consideration of **RMB 30.0 million**, and an investment of **RMB 45.0 million** was made in Xikang Yunshe; as of **June 30, 2025**, the Group held approximately **9.9341%** equity in Xikang Yunshe[115](index=115&type=chunk) - Guangdong Campus successfully acquired land use rights for two plots in Nanhai District, Foshan City, in **February 2025**, for a total consideration of **RMB 108.53 million**[117](index=117&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=39&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital%20Structure) As of June 30, 2025, the company's issued share capital was HKD 129,243, with 646,213,135 ordinary shares in issue, cash and cash equivalents at approximately RMB 1,456.4 million, and total borrowings from financial institutions at approximately RMB 3,142.9 million, with maturity dates ranging from within one year to over five years, primarily denominated in RMB, and comprising fixed-rate (approximately RMB 648.7 million) and floating-rate (approximately RMB 2,494.2 million) borrowings - As of **June 30, 2025**, the Company's issued share capital was **HKD 129,243** and the number of ordinary shares in issue was **646,213,135 shares**[105](index=105&type=chunk) - As of **June 30, 2025**, the Group's cash and cash equivalents were approximately **RMB 1,456.4 million** (December 31, 2024: approximately **RMB 1,664.8 million**)[106](index=106&type=chunk) - The Group's total borrowings from financial institutions as of **June 30, 2025**, were approximately **RMB 3,142.9 million** (December 31, 2024: approximately **RMB 3,104.0 million**)[106](index=106&type=chunk) - Borrowings have maturity dates ranging from **within one year to over five years**, with approximately **RMB 648.7 million** at fixed rates and approximately **RMB 2,494.2 million** at floating rates[106](index=106&type=chunk) [Treasury Policy](index=39&type=section&id=Treasury%20Policy) The Group adopts a prudent financial management approach to its treasury policy, with the Board closely monitoring liquidity to ensure the Group's asset, liability, and other commitment liquidity structure consistently meets its funding needs - The Group adopts a **prudent financial management approach** to its treasury policy[107](index=107&type=chunk) - The Board closely monitors the Group's liquidity position to ensure that the Group's asset, liability, and other commitment liquidity structure consistently meets its funding needs[107](index=107&type=chunk) [Net Current Liabilities](index=39&type=section&id=Net%20Current%20Liabilities) As of June 30, 2025, net current liabilities were approximately RMB 510.9 million, a significant increase from RMB 275.5 million as of December 31, 2024, with the current ratio decreasing from 0.89 to 0.79, primarily due to a reduction in total current assets caused by decreased cash and cash equivalents - As of **June 30, 2025**, net current liabilities were approximately **RMB 510.9 million** (December 31, 2024: approximately **RMB 275.5 million**); the increase in net current liabilities was primarily due to a decrease in cash and cash equivalents, leading to a reduction in total current assets[108](index=108&type=chunk) - As of **June 30, 2025**, the Group's current ratio (current assets divided by current liabilities) was **0.79** (December 31, 2024: **0.89**)[108](index=108&type=chunk) [Contingent Liabilities](index=39&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no contingent liabilities or any significant litigation against it - As of **June 30, 2025**, the Group had **no contingent liabilities** or any significant litigation against it[109](index=109&type=chunk) [Foreign Exchange Risk](index=40&type=section&id=Foreign%20Exchange%20Risk) The majority of the Group's income and expenses are denominated in RMB, and for the six months ended June 30, 2025, there were no significant difficulties or impacts on its operations or liquidity due to currency exchange rate fluctuations, with the Directors believing the Group has sufficient foreign exchange and will take measures to prevent exchange rate risks - The majority of the Group's income and expenses are denominated in **RMB**; for the six months ended **June 30, 2025**, the Group experienced **no significant difficulties or impacts** on its operations or liquidity due to currency exchange rate fluctuations[110](index=110&type=chunk) - The Directors believe that the Group has **sufficient foreign exchange** to meet its own foreign exchange requirements and will take practical and effective measures to prevent exchange rate risks[110](index=110&type=chunk) [Pledge of Assets](index=40&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the Group's bank borrowings of RMB 1,942.1 million were pledged by the right to collect certain tuition and accommodation fees, bank borrowings of RMB 157.0 million were pledged by certain equity interests, and other borrowings of RMB 44.3 million were pledged by certain equipment and intellectual property rights - As of **June 30, 2025**, the Group's bank borrowings of **RMB 1,942.1 million** were pledged by the right to collect certain tuition and accommodation fees[111](index=111&type=chunk) - Bank borrowings of **RMB 157.0 million** were pledged by certain equity interests[111](index=111&type=chunk) - Other borrowings of **RMB 44.3 million** were pledged by certain equipment and intellectual property rights[111](index=111&type=chunk) [Interest-bearing Debt to Asset Ratio](index=40&type=section&id=Interest-bearing%20Debt%20to%20Asset%20Ratio) As of June 30, 2025, the Group's interest-bearing debt to asset ratio was 43.1%, a slight decrease from 44.0% as of December 31, 2024 - As of **June 30, 2025**, the Group's interest-bearing debt to asset ratio was **43.1%** (December 31, 2024: **44.0%**)[112](index=112&type=chunk) [Capital Gearing Ratio](index=40&type=section&id=Capital%20Gearing%20Ratio) As of June 30, 2025, the Group's capital gearing ratio was 138.0%, a slight decrease from 139.7% as of December 31, 2024 - As of **June 30, 2025**, the Group's capital gearing ratio was **138.0%** (December 31, 2024: **139.7%**)[113](index=113&type=chunk) [Capital Expenditure](index=40&type=section&id=Capital%20Expenditure) For the six months ended June 30, 2025, the Group's capital expenditure was approximately RMB 331.2 million, primarily for upgrading and expanding campuses - For the six months ended **June 30, 2025**, the Group's capital expenditure was approximately **RMB 331.2 million**, primarily related to upgrading and expanding campuses[114](index=114&type=chunk) [Significant Acquisitions or Disposals of Subsidiaries, Associates and Joint Ventures](index=40&type=section&id=Significant%20Acquisitions%20or%20Disposals%20of%20Subsidiaries%2C%20Associates%20and%20Joint%20Ventures) On May 20, 2025, the Group acquired approximately 4.2255% equity in Xikang Yunshe for a consideration of RMB 30.0 million and invested RMB 45.0 million, with the Group holding approximately 9.9341% equity in Xikang Yunshe as of June 30, 2025, and no other significant acquisitions or disposals occurring during the reporting period - On **May 20, 2025**, approximately **4.2255%** equity in Xikang Yunshe was acquired for a consideration of **RMB 30.0 million**, and an investment of **RMB 45.0 million** was made in Xikang Yunshe[115](index=115&type=chunk) - As of **June 30, 2025**, the Group held approximately **9.9341%** equity in Xikang Yunshe[115](index=115&type=chunk) - Other than the above, for the six months ended **June 30, 2025**, the Group had **no other significant acquisitions or disposals** of subsidiaries, associates, and joint ventures[115](index=115&type=chunk) [Material Investments Held](index=40&type=section&id=Material%20Investments%20Held) For the six months ended June 30, 2025, the Company held no material investments with a value equal to or exceeding 5% of its total assets - For the six months ended **June 30, 2025**, the Company held **no material investments** with a value equal to or exceeding **5%** of its total assets[116](index=116&type=chunk) [Future Plans for Material Investments or Capital Assets](index=41&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) Guangdong Campus successfully acquired land use rights for two plots in Nanhai District, Foshan City, through public auction on February 26, 2025, for a total consideration of RMB 108.53 million, which has been fully paid, and other than this, as of the date of this announcement, the Group has no other future plans for material investments or capital assets - Guangdong Campus successfully acquired land use rights for two plots in Nanhai District, Foshan City, through public auction on **February 26, 2025**[117](index=117&type=chunk) - The consideration for the acquisition of land use rights for the