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。 眾安集團有限公 司 Zhong An Group Limited （於開曼群島註冊成立之有限公司） （股份代 號：672） 截至2025年6月30日止六個月期間之中期業績公告 摘要 1 • 回顧期內本集團收入約為人民幣6,558.7百萬元，較2024年同期下降約 29.3% • 回顧期內本集團的毛利約為人民幣688.7百萬元，較2024年同期下降約 62.4% • 回顧期內本集團利潤約為人民幣90.7百萬元，較2024年同期下降約 23.0% • 回顧期內本集團合同銷售約為人民幣1,973.3百萬元，較2024年同期下降 約31.4% • 於2025年6月30日，本集團總資產負債率及淨負債率分別為約60.0%和 45.0%，維持在合理水平 眾安集團有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然提呈本公司及 其附屬公司（統稱為「本集團」）截至2025年6月30日止六個月期間（「本期間」或 「 ...

[Financial Summary](index=1&type=section&id=Financial%20Summary) The Group experienced a significant decline in revenue and gross profit for the six months ended June 30, 2025, resulting in a net loss and a decrease in total assets and net assets Financial Summary for the Six Months Ended June 30, 2025 | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Revenue | 366,307 | 2,921,774 | -87.5% | | Gross Profit | 77,089 | 1,579,596 | -95.1% | | (Loss)/Profit for the Period | (39,448) | 347,502 | -111.4% | | (Loss)/Profit Attributable to Owners of the Parent | (35,522) | 377,789 | -109.4% | | (Loss)/Earnings Per Share Attributable to Ordinary Equity Holders of the Parent - Basic and Diluted | RMB (1.77) cents | RMB 18.79 cents | -109.4% | | **As of June 30, 2025** | **RMB thousand** | **As of December 31, 2024** | **Change** | | Total Assets | 13,282,430 | 13,385,727 | -0.8% | | Net Assets | 5,262,481 | 5,342,134 | -1.5% | | Net Asset Value Per Share | RMB 2.62 | RMB 2.66 | -1.5% | [Interim Condensed Consolidated Financial Statements](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Statements) This section presents the Group's interim condensed consolidated financial statements, including the statement of profit or loss, comprehensive income, and financial position, reflecting a shift from profit to loss and changes in asset and liability structures [Interim Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, the Group turned from profit to loss, recording a net loss of RMB 39,448 thousand, compared to a profit of RMB 347,502 thousand in the prior period, primarily due to an 87.5% revenue decline and 95.1% gross profit reduction from decreased property sales Interim Condensed Consolidated Statement of Profit or Loss (For the Six Months Ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 366,307 | 2,921,774 | | Cost of Sales | (289,218) | (1,342,178) | | Gross Profit | 77,089 | 1,579,596 | | Other Income and Gains | 174,232 | 25,876 | | Selling and Distribution Expenses | (53,587) | (66,588) | | Administrative Expenses | (45,165) | (67,991) | | Other Expenses | (79,080) | (5,833) | | Finance Costs | (97,642) | (47,317) | | Fair Value Change of Investment Properties | (8,600) | (535,900) | | (Loss)/Profit Before Tax | (32,753) | 877,358 | | Income Tax Expense | (6,695) | (529,856) | | (Loss)/Profit for the Period | (39,448) | 347,502 | | (Loss)/Profit Attributable to Owners of the Parent | (35,522) | 377,789 | [Interim Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) Total comprehensive loss for the period was RMB 75,937 thousand, a significant deterioration from the prior period's total comprehensive income of RMB 362,518 thousand, mainly due to the period's loss and negative impacts from other comprehensive income, including exchange differences and fair value changes in equity investments Interim Condensed Consolidated Statement of Comprehensive Income (For the Six Months Ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | (Loss)/Profit for the Period | (39,448) | 347,502 | | Exchange Differences Arising from Translation of Financial Statements of Overseas Subsidiaries | (7,613) | 10,812 | | Exchange Differences Arising from Translation of Overseas Operations | (12,467) | 5,690 | | Equity Investments Designated at Fair Value Through Other Comprehensive Income: Fair Value Changes | (21,879) | (1,982) | | Income Tax Impact | 5,470 | 496 | | Other Comprehensive Income for the Period, Net of Tax | (36,489) | 15,016 | | Total Comprehensive (Loss)/Income for the Period | (75,937) | 362,518 | | Attributable to Owners of the Parent | (72,011) | 392,805 | [Interim Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets slightly decreased by 0.8% to RMB 13,282,430 thousand, and net assets decreased by 1.5% to RMB 5,262,481 thousand, with a notable increase in net current assets due to reduced current assets and liabilities Interim Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Property and Equipment | 2,128,801 | 2,183,115 | | Investment Properties | 4,328,300 | 4,336,900 | | Properties Under Development | 447,663 | 439,451 | | Investments in Associates | 681,873 | – | | Total Non-current Assets | 7,875,606 | 7,736,991 | | **Current Assets** | | | | Completed Properties Held for Sale | 3,910,663 | 4,085,699 | | Trade Receivables | 75,580 | 61,081 | | Amounts Due from Related Companies | 965,030 | 237,788 | | Cash and Cash Equivalents | 208,647 | 838,999 | | Total Current Assets | 5,406,824 | 5,648,736 | | **Current Liabilities** | | | | Trade Payables | 1,077,301 | 1,543,308 | | Contract Liabilities | 286,895 | 923,714 | | Interest-bearing Bank and Other Borrowings (Current) | 327,079 | 1,072,160 | | Total Current Liabilities | 3,229,136 | 5,055,477 | | Net Current Assets | 2,177,688 | 593,259 | | **Non-current Liabilities** | | | | Interest-bearing Bank and Other Borrowings (Non-current) | 4,127,840 | 2,327,020 | | Total Non-current Liabilities | 4,790,813 | 2,988,116 | | Net Assets | 5,262,481 | 5,342,134 | | Total Equity | 5,262,481 | 5,342,134 | [Notes to the Interim Condensed Consolidated Financial Information](index=6&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information) This section provides detailed notes to the interim condensed consolidated financial information, covering company details, accounting policies, segment information, and specific financial line items [1. Company Information](index=6&type=section&id=1.%20Company%20Information) China New City Group Limited, incorporated in the Cayman Islands in 2013, operates as an investment holding company primarily engaged in commercial property development, leasing, and hotel operations, with Quanhao Management Limited as its ultimate controlling entity - The Company was incorporated in the Cayman Islands on **July 2, 2013**, as an investment holding company[9](index=9&type=chunk) - The Group is principally engaged in **commercial property development, leasing, and hotel operations**[10](index=10&type=chunk) - The ultimate controlling company of the Company is **Quanhao Management Limited**[11](index=11&type=chunk) [2. Basis of Preparation and Accounting Policies](index=6&type=section&id=2.%20Basis%20of%20Preparation%20and%20Accounting%20Policies) The interim condensed consolidated financial information is prepared in accordance with IAS 34 and should be read with the 2024 annual consolidated financial statements, with the first-time adoption of revised IAS 21 having no significant financial impact [2.1 Basis of Preparation](index=6&type=section&id=2.1%20Basis%20of%20Preparation) The interim condensed consolidated financial information is prepared in accordance with IAS 34 and presented in RMB, rounded to the nearest thousand - The interim condensed consolidated financial information is prepared in accordance with **International Accounting Standard 34 "Interim Financial Reporting"** issued by the International Accounting Standards Board[12](index=12&type=chunk) - These financial statements are presented in **RMB** and adjusted to the nearest thousand[12](index=12&type=chunk) [2.2 Changes in Accounting Policies and Disclosures](index=6&type=section&id=2.2%20Changes%20in%20Accounting%20Policies%20and%20Disclosures) The Group adopted revised IAS 21 "Lack of Exchangeability" for the first time during the period, which had no significant financial impact on the financial statements - The Group adopted the revised **International Accounting Standard 21 "Lack of Exchangeability"** for the first time during the period[14](index=14&type=chunk) - The new and revised standards had **no significant financial impact** on these financial statements[14](index=14&type=chunk) [3. Operating Segment Information](index=7&type=section&id=3.%20Operating%20Segment%20Information) The Group operates four reportable segments: commercial property development, property leasing, hotel operations, and other services; in H1 2025, a significant decline in commercial property development revenue led to a sharp drop in overall revenue and segment results, while property leasing revenue increased - The Group has four reportable operating segments: **commercial property development, property leasing, hotel operations, and "other" segments**[17](index=17&type=chunk) [Segment Revenue and Results](index=8&type=section&id=Segment%20Revenue%20and%20Results) Segment revenue and results for the six months ended June 30, showing a substantial decrease in commercial property development revenue and a shift to loss for the segment | Segment | 2025 Revenue (RMB thousand) | 2024 Revenue (RMB thousand) | Change (%) | 2025 Segment Results (RMB thousand) | 2024 Segment Results (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | | Commercial Property Development | 175,269 | 2,723,530 | -93.6% | (19,071) | 1,403,421 | | Property Leasing | 64,896 | 48,646 | +33.4% | 12,049 | (426,319) | | Hotel Operations | 99,181 | 112,651 | -12.0% | (20,646) | (30,498) | | Other Services | 26,961 | 36,947 | -27.1% | 76,145 | (26,026) | | **Total** | **366,307** | **2,921,774** | **-87.5%** | **48,477** | **920,578** | [Segment Assets and Liabilities](index=10&type=section&id=Segment%20Assets%20and%20Liabilities) Segment assets and liabilities as of June 30, 2025, indicating a slight decrease in total assets and liabilities, with notable changes in commercial property development segment assets and liabilities | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | **Total Assets** | **13,282,430** | **13,385,727** | **-0.8%** | | Commercial Property Development Segment Assets | 6,015,169 | 6,201,139 | -3.0% | | Property Leasing Segment Assets | 4,644,508 | 4,673,438 | -0.6% | | Hotel Operations Segment Assets | 1,777,294 | 1,913,326 | -7.1% | | Other Services Segment Assets | 1,642,575 | 765,905 | +114.5% | | **Total Liabilities** | **8,019,949** | **8,043,593** | **-0.3%** | | Commercial Property Development Segment Liabilities | 1,471,772 | 2,479,054 | -40.6% | | Property Leasing Segment Liabilities | 376,571 | 371,202 | +1.4% | | Hotel Operations Segment Liabilities | 643,226 | 679,232 | -5.3% | | Other Services Segment Liabilities | 447,718 | 412,300 | +8.6% | [Geographical Information](index=11&type=section&id=Geographical%20Information) Geographical breakdown of revenue from external customers and non-current assets, primarily concentrated in Mainland China | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue from External Customers (Mainland China) | 366,307 | 2,921,774 | | Non-current Assets (Mainland China) | 7,752,031 | 7,299,787 | | Non-current Assets (Other) | 64,245 | 59,891 | [Information about Major Customers](index=11&type=section&id=Information%20about%20Major%20Customers) No single customer or group of customers under common control accounted for 10% or more of the Group's revenue for the six months ended June 30, 2025 and 2024 - No single customer or group of customers under common control accounted for **10% or more of the Group's revenue** for the six months ended June 30, 2025 and 2024[23](index=23&type=chunk) [4. Revenue, Other Income and Gains](index=12&type=section&id=4.%20Revenue%2C%20Other%20Income%20and%20Gains) Total revenue for the period was RMB 366,307 thousand, an 87.5% year-on-year decrease primarily due to a sharp decline in customer contract revenue, especially property sales, while other income and gains surged by 573.3% mainly from remeasurement of associate investments [Analysis of Revenue](index=12&type=section&id=Analysis%20of%20Revenue) Analysis of revenue sources for the six months ended June 30, showing a significant decrease in customer contract revenue but an increase in gross rental income from investment properties | Revenue Source | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue from Contracts with Customers | 301,411 | 2,873,128 | -89.5% | | Gross Rental Income from Operating Leases of Investment Properties | 64,896 | 48,646 | +33.4% | | **Total** | **366,307** | **2,921,774** | **-87.5%** | [Disaggregated Revenue Information from Contracts with Customers](index=12&type=section&id=Disaggregated%20Revenue%20Information%20from%20Contracts%20with%20Customers) Disaggregated revenue from contracts with customers for the six months ended June 30, highlighting a substantial decrease in property sales | Type of Goods or Services | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Property Sales | 175,269 | 2,723,530 | -93.6% | | Hotel Operations Revenue | 99,181 | 112,651 | -12.0% | | Other Services | 26,961 | 36,947 | -27.1% | | **Total** | **301,411** | **2,873,128** | **-89.5%** | - The majority of customer contract revenue, including **property sales and hotel operations revenue**, is recognized at a point in time[25](index=25&type=chunk)[26](index=26&type=chunk) [Details of Other Income and Gains](index=13&type=section&id=Details%20of%20Other%20Income%20and%20Gains) Details of other income and gains for the six months ended June 30, showing a significant increase primarily due to a gain from remeasurement of an investment in an associate | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Subsidy Income | 570 | 80 | +612.5% | | Interest Income | 16,412 | 4,097 | +300.6% | | Other Income | 3,852 | 4,137 | -6.9% | | Gain from Remeasurement of an Investment in an Associate | 153,398 | – | N/A | | Gain on Disposal of Items of Property and Equipment | – | 576 | -100% | | Compensation for Lease Termination | – | 2,876 | -100% | | Gain on Disposal of Subsidiaries | – | 2,863 | -100% | | Gain on Disposal of Items of Right-of-use Assets | – | 5,918 | -100% | | Exchange Gain | – | 5,329 | -100% | | **Total** | **174,232** | **25,876** | **+573.3%** | - The significant increase in other income and gains is primarily due to a **gain of approximately RMB 153,398 thousand from the remeasurement of an investment in an associate**[26](index=26&type=chunk)[27](index=27&type=chunk) - This gain resulted from the fair value of Xin Nong Du's identifiable net assets attributable to the buyer exceeding the investment cost after acquiring a **42.50% equity interest** in Xin Nong Du[27](index=27&type=chunk) [5. Profit/Loss Before Tax](index=14&type=section&id=5.%20Profit%2FLoss%20Before%20Tax) The Group's loss before tax was RMB 32,753 thousand, a significant deterioration from the prior period's profit of RMB 877,358 thousand, primarily due to a sharp decrease in property sales costs and reduced fair value losses on investment properties, offset by increased impairment provisions for financial assets and property and equipment Profit/Loss Before Tax Components (For the Six Months Ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of Properties Sold | 175,036 | 1,217,435 | | Depreciation of Property and Equipment | 57,275 | 62,147 | | Depreciation of Right-of-use Assets | 3,088 | 6,182 | | Staff Costs (Including Directors' and Key Management's Emoluments) | 42,240 | 50,995 | | Fair Value Change of Investment Properties | 8,600 | 535,900 | | Gain from Remeasurement of an Investment in an Associate | (153,398) | – | | Impairment Provision for Financial Assets | 48,367 | – | | Impairment Provision for Property and Equipment | 24,186 | – | | Impairment Provision for Right-of-use Assets | 337 | – | | Impairment of Investment in a Joint Venture | – | 5,626 | [6. Income Tax Expense](index=15&type=section&id=6.%20Income%20Tax%20Expense) Income tax expense for the period was RMB 6,695 thousand, a substantial decrease from RMB 529,856 thousand in the prior period, mainly due to reduced PRC income tax and land appreciation tax, and the impact of deferred tax - Hong Kong-incorporated subsidiaries were **not subject to income tax** during the period[30](index=30&type=chunk) - PRC income tax is provided at a rate of **25%**, and land appreciation tax is levied at progressive rates from **30% to 60%**[30](index=30&type=chunk) Income Tax Expense (For the Six Months Ended June 30) | Tax Category | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | PRC Income Tax for the Period | 14,306 | 295,642 | -95.2% | | PRC Land Appreciation Tax for the Period | 6,006 | 428,946 | -98.6% | | Deferred Tax | (13,617) | (194,732) | -93.0% | | **Total Tax Expense for the Period** | **6,695** | **529,856** | **-98.7%** | [7. Loss/Earnings Per Share Attributable to Ordinary Equity Holders of the Parent](index=15&type=section&id=7.%20Loss%2FEarnings%20Per%20Share%20Attributable%20to%20Ordinary%20Equity%20Holders%20of%20the%20Parent) For the six months ended June 30, 2025, basic loss per share was RMB (1.77) cents, compared to earnings per share of RMB 18.79 cents in the prior period, primarily due to the loss attributable to owners of the parent during the period Loss/Earnings Per Share (For the Six Months Ended June 30) | Indicator | 2025 | 2024 | Change (%) | | :--- | :--- | :--- | :--- | | (Loss)/Profit Attributable to Ordinary Equity Holders of the Parent | (35,522) thousand RMB | 377,789 thousand RMB | -109.4% | | Basic and Diluted (Loss)/Earnings Per Share | RMB (1.77) cents | RMB 18.79 cents | -109.4% | | Weighted Average Number of Ordinary Shares Outstanding During the Period | 2,010,768,000 shares | 2,010,768,000 shares | 0% | - The Group had **no potentially dilutive ordinary shares** outstanding for the period ended June 30, 2025[33](index=33&type=chunk) [8. Dividends](index=16&type=section&id=8.%20Dividends) The Board 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[34](index=34&type=chunk) [9. Trade Receivables](index=16&type=section&id=9.%20Trade%20Receivables) As of June 30, 2025, total trade receivables increased to RMB 75,580 thousand from RMB 61,081 thousand on December 31, 2024, with the largest proportion due within six months Ageing Analysis of Trade Receivables (As of Reporting Period End) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Within Six Months | 65,119 | 55,063 | +18.3% | | Over Six Months but Within One Year | 7,180 | 4,802 | +49.5% | | Over One Year but Within Two Years | 3,281 | 1,216 | +169.8% | | **Total** | **75,580** | **61,081** | **+23.7%** | [10. Trade Payables](index=16&type=section&id=10.%20Trade%20Payables) As of June 30, 2025, total trade payables significantly decreased to RMB 1,077,301 thousand from RMB 1,543,308 thousand on December 31, 2024, primarily due to a substantial reduction in amounts due between six months and one year Ageing Analysis of Trade Payables (As of Reporting Period End) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Within Six Months | 733,802 | 701,370 | +4.6% | | Over Six Months but Within One Year | 330,547 | 828,857 | -60.1% | | Over One Year but Within Two Years | 5,946 | 3,557 | +67.2% | | Over Two Years but Within Three Years | 7,006 | 9,524 | -26.4% | | **Total** | **1,077,301** | **1,543,308** | **-30.2%** | - The balances are **unsecured and interest-free**, generally payable according to construction progress[36](index=36&type=chunk) [11. Commitments](index=17&type=section&id=11.%20Commitments) As of June 30, 2025, the Group's contracted but unprovided commitments for property development expenditures were RMB 156,839 thousand, a slight decrease from December 31, 2024 Property Development Expenditure Commitments (As of Reporting Period End) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Properties Under Development | 156,839 | 160,697 | -2.4% | [12. Contingent Liabilities](index=17&type=section&id=12.%20Contingent%20Liabilities) As of June 30, 2025, the Group's bank guarantees for property buyers' mortgage loans decreased to RMB 286,410 thousand from December 31, 2024, with directors believing the net realizable value of the properties is sufficient for repayment, thus no provision was made - The Group provides **guarantees for mortgage loans** granted by certain banks to buyers of the Group's properties[38](index=38&type=chunk) - Directors believe that the **net realizable value of the relevant properties is sufficient** to cover the outstanding mortgage loans and any accrued interest and penalties in case of default, thus no provision has been made for these guarantees[38](index=38&type=chunk) Contingent Liabilities (As of Reporting Period End) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Guarantees to Banks for Mortgage Loans Granted to Buyers of the Group's Properties | 286,410 | 359,727 | -20.4% | [Management Discussion and Analysis](index=18&type=section&id=Management%20Discussion%20and%20Analysis) This section provides management's discussion and analysis of the Group's business performance, financial position, and future outlook, highlighting key operational and financial trends [Overview](index=18&type=section&id=Overview) The Group is a large enterprise integrating commercial development and operations, hotel management, film, education, and cultural tourism, recognized as a leading commercial real estate integrated operator in the Yangtze River Delta region with multiple industry accolades - The Group is a large enterprise integrating **commercial development and operations, hotel management, film, education, and cultural tourism**[40](index=40&type=chunk) - The Group has developed into a leading **commercial real estate integrated operator in the Yangtze River Delta region**, having been recognized as one of the "Top 10 Commercial Real Estate Operators in China"[40](index=40&type=chunk) [Business Review](index=18&type=section&id=Business%20Review) The Group's core business segments include industrial property development, commercial operations, hotel management, and industrial investment, with diversified new industry layouts; consolidated revenue for the period was approximately RMB 366 million, down 87.5% year-on-year, and gross profit was approximately RMB 77 million, down 95.1%, primarily due to a significant reduction in property sales - The Group's core business segments are **industrial property development, commercial operations, hotel management, and industrial investment**, while also diversifying into industrial services, rural cultural tourism, smart agricultural wholesale, film and education, and digital health[41](index=41&type=chunk) Key Financial Data for Business Review (For the Current Period) | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Consolidated Revenue | 366 | 2,922 | -87.5% | | Gross Profit | 77 | 1,580 | -95.1% | | Gross Profit Margin | 21.0% | 54.1% | -33.1 percentage points | - As of June 30, 2025, the Group's **total equity was approximately RMB 5,262 million**, and **cash book value was approximately RMB 226 million**[41](index=41&type=chunk) [Policies and Outlook](index=18&type=section&id=Policies%20and%20Outlook) China's 2025 real estate policy continues its 'stabilize and recover' approach, fully implementing 'four cancellations, four reductions, and two additions' to support the market and accelerate inventory reduction; the Group will maintain prudent operations, advance urban renewal, and explore new models for the existing market - China's 2025 real estate policy continues its core principle of **"stabilizing decline and achieving recovery"**, fully implementing a policy package of "four cancellations, four reductions, and two additions"[42](index=42&type=chunk) - Policies include **cancelling purchase restrictions, resale restrictions, price caps, and ordinary housing standards**; **reducing down payment ratios, mortgage interest rates, and transaction taxes and fees**; and **adding urban village renovation and "white list" financing for property developers**[42](index=42&type=chunk) - The Group will continue to adhere to a **prudent operating philosophy**, maintain financial stability, effectively integrate Group resources, and intensify business innovation efforts, promoting urban renewal projects and exploring new development models[43](index=43&type=chunk) [Progress of Major Projects](index=19&type=section&id=Progress%20of%20Major%20Projects) The Group's International Office Center (IOC) Plot A2 and Longying Huijinzuo (Binhe Yin) projects in Hangzhou achieved expected sales, with Longying Huijinzuo completed in 2024 [International Office Center (IOC)](index=19&type=section&id=International%20Office%20Center%20%28IOC%29) The International Office Center (IOC) Plot A3 is largely sold out, and Plot A2 sales met expectations during the period - International Office Center (IOC) Plot A3 was completed in **2015** and is largely sold out, except for a small number of units and parking spaces[44](index=44&type=chunk) - Plot A2 commenced construction in **2019**, with sales meeting expectations during the period[44](index=44&type=chunk) [Longying Huijinzuo (Binhe Yin)](index=19&type=section&id=Longying%20Huijinzuo%20%28Binhe%20Yin%29) The Longying Huijinzuo (Binhe Yin) project was completed in 2024, with sales meeting expectations during the current period - The Longying Huijinzuo (Binhe Yin) project was completed in **2024**[45](index=45&type=chunk) - Sales for this project met expectations during the period[45](index=45&type=chunk) [Sales Review](index=20&type=section&id=Sales%20Review) Confirmed sales amount and area significantly decreased during the period, with contracted sales amount and area also declining year-on-year, reflecting a weak property sales market [Confirmed Sales](index=20&type=section&id=Confirmed%20Sales) Confirmed sales amount and total gross floor area delivered for the six months ended June 30, showing a substantial year-on-year decrease Confirmed Sales Data (For the Six Months Ended June 30) | Indicator | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Confirmed Sales Amount | RMB 175,269 thousand | RMB 2,723,530 thousand | -93.6% | | Total Gross Floor Area of Properties Delivered | 10,415 square meters | 73,493 square meters | -85.8% | Confirmed Sales Project Details (H1 2025) | Project | Region | Confirmed Amount (RMB million) | Area (square meters) | | :--- | :--- | :--- | :--- | | Longying Huijinzuo (Binhe Yin) | Hangzhou | 133.8 | 6,212 | | Mingcaicheng | Hangzhou | 28.8 | 2,225 | | Zhong'an Times Square Phase II | Yuyao | 6.9 | 1,200 | | Cixi New City | Cixi | 5.4 | 778 | | Other Remaining Units | Hangzhou | 0.4 | – | | **Total** | | **175.3** | **10,415** | [Contracted Sales](index=20&type=section&id=Contracted%20Sales) Contracted sales area and revenue for the six months ended June 30, both showing a significant year-on-year decrease Contracted Sales Data (For the Six Months Ended June 30) | Indicator | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Contracted Sales Area | 14,981 square meters | 29,997 square meters | -50.0% | | Contracted Sales Revenue | RMB 326,848 thousand | RMB 663,350 thousand | -50.8% | Major Project Contracted Sales Details (H1 2025) | Project | Region | Contracted Amount (RMB million) | Area (square meters) | | :--- | :--- | :--- | :--- | | International Office Center (IOC) A2 | Hangzhou | 195.9 | 4,845 | | Xin Nong Du | Hangzhou | 74.5 | 7,489 | | Longying Huijinzuo (Binhe Yin) | Hangzhou | 48.2 | 1,943 | | Mingcaicheng | Hangzhou | 5.0 | 312 | | Cixi New City | Cixi | 2.8 | 392 | | Zhong'an Times Square Phase II | Yuyao | 0.5 | – | | Chaoyang Ginza | Hangzhou | 0.1 | – | | **Total** | | **326.8** | **14,981** | [Hotel Operations](index=21&type=section&id=Hotel%20Operations) Hotel management revenue for the period was approximately RMB 99,181 thousand, a 12.0% year-on-year decrease, primarily due to a weak market leading to a decline in hotel occupancy rates to approximately 60% - The Group manages **four self-owned hotels**[49](index=49&type=chunk) Hotel Operations Data (For the Six Months Ended June 30) | Indicator | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Hotel Management Revenue | RMB 99,181 thousand | RMB 112,651 thousand | -12.0% | | Hotel Occupancy Rate | Approximately 60% | Approximately 62% | -2 percentage points | - The decrease in revenue is primarily due to a **weak market and a decline in hotel occupancy rates**[49](index=49&type=chunk) [Commercial Operations](index=21&type=section&id=Commercial%20Operations) Total commercial operations revenue for the period was approximately RMB 64,896 thousand, a 33.4% year-on-year increase, primarily benefiting from new community commercial projects, increased occupancy at Yuyao Zhong'an Plaza, and higher per-square-meter rent at Yiwu Zhong'an Plaza, despite a slight decrease in average occupancy rate - The Group's commercial operations revenue primarily derives from **rental income from office buildings, shopping malls, and community commercial complexes**[50](index=50&type=chunk) Commercial Operations Data (For the Six Months Ended June 30) | Indicator | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Total Commercial Operations Revenue | RMB 64,896 thousand | RMB 48,646 thousand | +33.4% | | Average Occupancy Rate of Leased Properties | Approximately 80% | Approximately 84% | -4 percentage points | - The increase in total revenue primarily benefited from **revenue generation from new community commercial projects, increased occupancy at Yuyao Zhong'an Plaza, and higher per-square-meter rent at Yiwu Zhong'an Plaza**[50](index=50&type=chunk) [Land Bank](index=21&type=section&id=Land%20Bank) As of June 30, 2025, the Group's total land bank for development and/or sale was approximately 3,673,020 square meters, a slight decrease from December 31, 2024 Total Land Bank Gross Floor Area (As of Reporting Period End) | Indicator | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Total Land Bank Gross Floor Area | 3,673,020 square meters | 3,690,924 square meters | -0.5% | [Financial Performance Analysis](index=21&type=section&id=Financial%20Performance%20Analysis) The Group's financial performance significantly deteriorated during the period, with revenue and gross profit sharply declining due to a substantial drop in property sales, leading to a shift from profit to loss; despite controlled selling and administrative expenses, other expenses and finance costs rose significantly due to increased impairment provisions and interest expenses [Revenue](index=21&type=section&id=Revenue) Consolidated revenue for the six months ended June 30, showing a substantial year-on-year decrease Consolidated Revenue (For the Six Months Ended June 30) | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Consolidated Revenue | 366,307 | 2,921,774 | -87.5% | - The decrease in revenue is primarily due to a **reduction in property sales business** of approximately RMB 2,548,261 thousand compared to the prior period in 2024[52](index=52&type=chunk) [Gross Profit](index=21&type=section&id=Gross%20Profit) Consolidated gross profit and gross profit margin for the six months ended June 30, both showing a significant year-on-year decrease Consolidated Gross Profit and Gross Profit Margin (For the Six Months Ended June 30) | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Consolidated Gross Profit | 77,089 | 1,579,596 | -95.1% | | Consolidated Gross Profit Margin | 21.0% | 54.1% | -33.1 percentage points | - The decrease in consolidated gross profit is primarily due to a **significant reduction in gross profit from property sales revenue** during the period[53](index=53&type=chunk) [Other Income and Gains](index=22&type=section&id=Other%20Income%20and%20Gains) Other income and gains for the six months ended June 30, showing a substantial year-on-year increase Other Income and Gains (For the Six Months Ended June 30) | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Other Income and Gains | 174,232 | 25,876 | +573.3% | - The increase is primarily due to a **gain of approximately RMB 153,398 thousand** from the fair net value of an associate's identifiable net assets exceeding the investment cost attributable to the Group[54](index=54&type=chunk) [Selling and Distribution Expenses](index=22&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and distribution expenses for the six months ended June 30, showing a year-on-year decrease Selling and Distribution Expenses (For the Six Months Ended June 30) | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Selling and Distribution Expenses | 53,587 | 66,588 | -19.5% | - The decrease is primarily due to the Group's **effective implementation of cost management strategies**[55](index=55&type=chunk) [Administrative Expenses](index=22&type=section&id=Administrative%20Expenses) Administrative expenses for the six months ended June 30, showing a year-on-year decrease Administrative Expenses (For the Six Months Ended June 30) | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Administrative Expenses | 45,165 | 67,991 | -33.6% | - The decrease is primarily due to the Group's **effective implementation of cost management strategies**[56](index=56&type=chunk) [Other Expenses](index=22&type=section&id=Other%20Expenses) Other expenses for the six months ended June 30, showing a significant year-on-year increase Other Expenses (For the Six Months Ended June 30) | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Other Expenses | 79,080 | 5,833 | +1,255.7% | - The increase is primarily due to **higher impairment provisions for financial assets, property, and equipment** during the period compared to the prior period in 2024[57](index=57&type=chunk) [Finance Costs](index=22&type=section&id=Finance%20Costs) Finance costs for the six months ended June 30, showing a significant year-on-year increase Finance Costs (For the Six Months Ended June 30) | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Finance Costs | 97,642 | 47,317 | +106.4% | - The increase is primarily due to a **decrease in capitalized interest expenses and an increase in loan balances** during the period[58](index=58&type=chunk) [Loss for the Period](index=22&type=section&id=Loss%20for%20the%20Period) Loss for the period for the six months ended June 30, showing a significant shift from profit to loss (Loss)/Profit for the Period (For the Six Months Ended June 30) | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | (Loss)/Profit for the Period | (39,448) | 347,502 | -111.4% | - The loss for the period is primarily due to a **significant decrease in revenue generated from the Group's commercial property projects**[59](index=59&type=chunk) [Capital Expenditure](index=22&type=section&id=Capital%20Expenditure) During the period, the Group incurred approximately RMB 31,016 thousand in property and equipment expenditure, an increase compared to the prior period Property and Equipment Capital Expenditure (For the Six Months Ended June 30) | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Property and Equipment Expenditure | 31,016 | 24,835 | +24.9% | [Significant Investments](index=23&type=section&id=Significant%20Investments) The Group held no significant investments during the period - The Group held **no significant investments** during the period[61](index=61&type=chunk) [Capital Structure](index=23&type=section&id=Capital%20Structure) As of June 30, 2025, the Group's total cash and cash equivalents decreased, while the current ratio rose to 1.67; the gearing ratio increased to 52%, reflecting a higher proportion of net debt relative to capital Key Capital Structure Indicators (As of Reporting Period End) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total Cash and Cash Equivalents and Restricted Cash | 225,937 | 886,087 | -74.5% | | Current Ratio | 1.67 | 1.12 | +49.1% | | Gearing Ratio | 52% | 46% | +6 percentage points | - As of June 30, 2025, bank and other borrowings repayable within one year amounted to approximately **RMB 327,079 thousand**, and those repayable after one year amounted to approximately **RMB 4,127,840 thousand**[62](index=62&type=chunk) [Pledge of Assets](index=23&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the Group's bank and other borrowings of approximately RMB 4,454,919 thousand were secured by pledged assets including property and equipment, investment properties, completed properties held for sale, and investments in associates, with the total value of pledged assets increasing from year-end 2024 - As of June 30, 2025, the Group's bank and other borrowings of approximately **RMB 4,454,919 thousand** were secured by the following pledged assets[64](index=64&type=chunk) Pledged Assets Details (As of Reporting Period End) | Pledged Asset Category | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Property and Equipment | 1,507,805 | 957,123 | +57.5% | | Investment Properties | 3,005,621 | 3,043,315 | -1.2% | | Completed Properties Held for Sale | 2,377,202 | 2,328,953 | +2.1% | | Investments in Associates | 318,475 | – | N/A | | **Total Pledged Assets** | **7,209,103** | **6,329,391** | **+13.9%** | [Foreign Exchange Risk and Funding Policy](index=23&type=section&id=Foreign%20Exchange%20Risk%20and%20Funding%20Policy) Operating primarily in China with revenues, costs, and borrowings denominated in RMB, the Group faces minimal foreign exchange fluctuation risk; it adopts a prudent funding policy, holding most cash in short-term RMB deposits without hedging - As the Group primarily operates in China, with revenues, operating costs, and borrowings mainly denominated in RMB, the **foreign exchange fluctuation risk undertaken by the Group is minimal**[65](index=65&type=chunk) - The Group adopts a **prudent funding policy** for cash and financial management, with cash typically held in short-term deposits, mostly denominated in RMB[66](index=66&type=chunk) - The Group **did not use any financial instruments for hedging purposes** during the period[66](index=66&type=chunk) [Guarantees and Contingent Liabilities](index=24&type=section&id=Guarantees%20and%20Contingent%20Liabilities) As of June 30, 2025, the Group's contingent liabilities, primarily mortgage loan guarantees for property buyers, amounted to approximately RMB 286,410 thousand, a decrease from year-end 2024 Guarantees and Contingent Liabilities (As of Reporting Period End) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Contingent Liabilities (Mortgage Loan Guarantees) | 286,410 | 359,727 | -20.4% | [Capital Commitments](index=24&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group's capital commitments for property development expenditures were approximately RMB 156,839 thousand, expected to be funded by internal resources and bank borrowings Capital Commitments (As of Reporting Period End) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Capital Commitments for Property Development Expenditures | 156,839 | 160,697 | -2.4% | - The Group expects to **fund the relevant capital commitments from its own resources and bank borrowings**[68](index=68&type=chunk) [Human Resources and Remuneration Policy](index=24&type=section&id=Human%20Resources%20and%20Remuneration%20Policy) As of June 30, 2025, the Group employed 1,147 staff, a decrease from year-end 2024; remuneration policy considers market conditions, industry trends, company performance, and employee performance, alongside providing continuous education and training Number of Employees (As of Reporting Period End) | Indicator | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Number of Employees | 1,147 persons | 1,232 persons | -7.06% | - Employee remuneration policy is determined by referencing **local market salary conditions**, combined with overall industry salary levels, inflation, corporate operating efficiency, and employee performance[69](index=69&type=chunk) - The Group also provides **continuous education and training programs** to enhance employees' skills and knowledge[69](index=69&type=chunk) [Strategies](index=24&type=section&id=Strategies) The Group will formulate effective marketing strategies, enhance product and service quality, strengthen cost and risk management, internal controls, and sustainable environmental management; growth strategies include identifying viable acquisition projects and improving investor relations management - Formulate **effective marketing strategies and plans** and enhance product and service quality to strengthen the brand[70](index=70&type=chunk) - Intensify efforts to develop **new policies, guidelines, systems, and procedures** to effectively facilitate cost management, risk management, internal controls, and sustainable environmental management[70](index=70&type=chunk) - Committed to identifying **acquirable projects with future development and profitability potential**, improving asset returns, and focusing on investor relations management[70](index=70&type=chunk) [Relationships with Employees, Customers and Suppliers](index=24&type=section&id=Relationships%20with%20Employees%2C%20Customers%20and%20Suppliers) The Group considers employees key to success, having adopted a share option scheme for motivation and continuously exploring mechanisms to align employee interests with Group development; it engages with customers to meet needs and adjusts operating strategies based on market trends - The Group believes that its **talent is a key factor for its success and competitive advantage** in the market[72](index=72&type=chunk) - A **share option scheme was adopted on May 20, 2015**, to incentivize and reward eligible participants, and the Group continues to explore suitable mechanisms to align employee interests with its long-term development[72](index=72&type=chunk) - A professional sales team continuously communicates with customers and potential customers to **identify and meet their needs** and assist them in making informed decisions[72](index=72&type=chunk) [Other Information](index=25&type=section&id=Other%20Information) This section covers additional information including events after the reporting period, environmental policies, interim dividends, audit committee review, securities transactions, corporate governance, and board composition [Events After the Reporting Period](index=25&type=section&id=Events%20After%20the%20Reporting%20Period) In July 2025, the Company repurchased and cancelled 166,744,883 shares arising from the Xin Nong Du acquisition transaction - In July 2025, the Company **repurchased and cancelled 166,744,883 shares** arising from the Xin Nong Du acquisition transaction[73](index=73&type=chunk) [Environmental Policies and Performance](index=25&type=section&id=Environmental%20Policies%20and%20Performance) The Group is committed to environmental protection, ensuring operations meet environmental standards, closely monitoring construction at all project stages, collaborating with suppliers to prevent pollution and reduce waste, and promoting environmental awareness among employees - The Group is committed to **protecting the environment** in its operating regions and ensuring consistent compliance with government environmental standards[74](index=74&type=chunk) - Construction processes are **closely monitored at different project stages** to ensure compliance with environmental and safety laws and regulations[74](index=74&type=chunk) - The Group collaborates with suppliers and contractors to ensure they are aware of environmental importance, **prevent pollution, reduce waste**, and encourages all employees to enhance environmental awareness[74](index=74&type=chunk) [Interim Dividends](index=25&type=section&id=Interim%20Dividends) The Board does not recommend the payment of any interim dividend for the current period - The Board does not recommend the payment of any **interim dividend** for the current period (six months ended June 30, 2024: nil)[75](index=75&type=chunk) [Audit Committee](index=25&type=section&id=Audit%20Committee) The Audit Committee reviewed the Group's unaudited consolidated interim results, discussing accounting standards, internal controls, and financial reporting with management; external auditor Ernst & Young reviewed these results in accordance with HKSAE 2410 - The Company's Audit Committee has reviewed the Group's **unaudited consolidated interim results** for the period, and discussed the accounting standards and practices adopted by the Group, as well as internal controls and financial reporting matters with the Group's management[76](index=76&type=chunk) - The Company's external auditor, Ernst & Young, has reviewed the Group's unaudited consolidated interim results for the period in accordance with **Hong Kong Standard on Review Engagements 2410** issued by the Hong Kong Institute of Certified Public Accountants[76](index=76&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=26&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) During the reporting period, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities on the Stock Exchange - During the period, neither the Company nor its subsidiaries **purchased, sold, or redeemed any of the Company's shares** on the Stock Exchange[77](index=77&type=chunk) [Standard Code for Securities Transactions by Directors](index=26&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company adopted a code of conduct for directors' securities transactions no less exacting than the Listing Rules' standard code, with all directors confirming compliance during the reporting period - The Company has adopted a **code of conduct for directors' securities transactions** whose terms are no less exacting than the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 to the Listing Rules[78](index=78&type=chunk) - All Directors have confirmed that they have **complied with the required standards** set out in the Model Code during the period and up to the date of this announcement[78](index=78&type=chunk) [Compliance with the Corporate Governance Code](index=26&type=section&id=Compliance%20with%20the%20Corporate%20Governance%20Code) The Board adopted and reviewed the Corporate Governance Code, confirming the Company's compliance with the code during the reporting period - The Board has adopted the applicable principles and code provisions set out in the **Corporate Governance Code** in Appendix C1 to the Listing Rules[79](index=79&type=chunk) - The Board has reviewed the Company's corporate governance practices and is satisfied that the Company has **complied with the code provisions** set out in the Corporate Governance Code during the period and up to the date of this announcement[79](index=79&type=chunk) [Publication of Interim Results Announcement and Interim Report on the Company's and HKEX Websites](index=26&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report%20on%20the%20Company%27s%20and%20HKEX%20Websites) This interim results announcement is published on the Company's and HKEX websites, with the interim report to be published and dispatched to shareholders in due course - This announcement is published on the Company's website (www.chinanewcity.com.cn) and the HKEX website (www.hkexnews.hk)[80](index=80&type=chunk) - The Company's interim report for the period, containing relevant information required by the Listing Rules, will be **published on the aforementioned websites and dispatched to the Company's shareholders** in due course[80](index=80&type=chunk) [Board of Directors](index=26&type=section&id=Board%20of%20Directors) As of this announcement date, the Company's Board of Directors comprises Executive Directors Mr. Shi Nanlu, Mr. Jin Jianrong, and Ms. Chen Jing; Non-executive Director Mr. Shi Zhongan; and Independent Non-executive Directors Mr. Xu Chengfa, Mr. Lin Youyao, and Mr. Yuan Yuan - As of the date of this announcement, the Company's Board of Directors comprises **Executive Directors Mr. Shi Nanlu, Mr. Jin Jianrong, and Ms. Chen Jing**; **Non-executive Director Mr. Shi Zhongan**; and **Independent Non-executive Directors Mr. Xu Chengfa, Mr. Lin Youyao, and Mr. Yuan Yuan**[80](index=80&type=chunk)

[Financial Highlights](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) The company reported interim results for the six months ended June 30, 2025, showing revenue growth but a decline in profit for the period and attributable to owners of the parent, while total assets and net assets increased [Overview of Financial Highlights](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%BD%E6%A6%82%E8%A6%BD) Zhong An Smart Living Services Co., Ltd. reported interim results for the six months ended June 30, 2025, with revenue increasing by 17.76% to RMB 214.485 million, but profit for the period and profit attributable to owners of the parent decreased by 23.53% and 20.45% respectively, while total assets and net assets both increased Interim Financial Highlights for the Six Months Ended June 30, 2025 | Metric | 2025 (thousand RMB) | 2024 (thousand RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 214,485 | 182,145 | 17.76% | | Gross Profit | 65,484 | 57,711 | 13.47% | | Profit for the Period | 10,904 | 14,260 | -23.53% | | Profit Attributable to Owners of the Parent | 11,419 | 14,354 | -20.45% | | Earnings Per Share Attributable to Owners of the Parent (Basic and Diluted) | RMB 2.21 cents | RMB 2.77 cents | - | | **Balance Sheet (Period End):** | **2025年6月30日** | **2024年12月31日** | **Change (%)** | | Total Assets | 514,130 | 469,846 | 9.43% | | Net Assets | 300,278 | 299,343 | 0.31% | | Net Asset Value Per Share | RMB 0.58 | RMB 0.58 | 0.00% | [Interim Condensed Consolidated Financial Information](index=2&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99) The notes provide detailed information on the company's incorporation, accounting policies, operating segments, revenue, and financial performance [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the company experienced revenue growth but a decline in profit for the period and attributable to owners of the parent due to various increased expenses and impairment losses Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the Six Months Ended June 30) | Metric | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Revenue | 214,485 | 182,145 | | Cost of Sales | (149,001) | (124,434) | | Gross Profit | 65,484 | 57,711 | | Other Income | 474 | 2,581 | | Selling and Distribution Expenses | (766) | – | | Administrative Expenses | (38,364) | (37,353) | | Net Impairment Loss on Financial Assets | (10,503) | (3,862) | | Finance Costs | (390) | – | | Profit Before Tax | 15,965 | 19,077 | | Income Tax Expense | (5,061) | (4,817) | | Profit for the Period | 10,904 | 14,260 | | Profit Attributable to Owners of the Parent | 11,419 | 14,354 | | Non-controlling Interests | (515) | (94) | | Earnings Per Share Attributable to Owners of the Parent (Basic and Diluted) | RMB 2.21 cents | RMB 2.77 cents | [Interim Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, the company's total assets and net assets increased, with significant growth in trade receivables and cash, alongside shifts in current liabilities Interim Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | Metric | 2025年6月30日 (thousand RMB) | 2024年12月31日 (thousand RMB) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Property and Equipment | 4,455 | 4,348 | | Intangible Assets | 52 | 70 | | Investment in an Associate | 87 | 57 | | Deferred Tax Assets | 7,458 | 5,051 | | **Total Non-current Assets** | **12,052** | **9,526** | | **Current Assets** | | | | Inventories | 702 | 719 | | Trade Receivables | 195,359 | 153,294 | | Amounts Due from Related Companies | 81,316 | 104,625 | | Prepayments, Other Receivables and Other Assets | 60,650 | 61,602 | | Cash and Cash Equivalents | 164,051 | 137,178 | | Pledged Deposits | – | 2,902 | | **Total Current Assets** | **502,078** | **460,320** | | **Current Liabilities** | | | | Trade Payables | 20,227 | 24,530 | | Other Payables, Deposits Received and Accrued Charges | 72,832 | 57,433 | | Contract Liabilities | 48,523 | 49,950 | | Tax Payables | 27,866 | 32,980 | | Dividends Payable | 9,779 | – | | Deferred Tax Liabilities | 2,534 | 2,241 | | Interest-bearing Bank Borrowings | 8,000 | – | | **Total Current Liabilities** | **189,761** | **167,134** | | **Net Assets** | **300,278** | **299,343** | | **Total Equity** | **300,278** | **299,343** | [Notes to the Interim Condensed Consolidated Financial Information](index=6&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E9%99%84%E8%A8%BB) The notes provide detailed information on the company's incorporation, accounting policies, operating segments, revenue, and financial performance [1. Company Information](index=6&type=section&id=1.%20%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) Zhong An Smart Living Services Co., Ltd. was incorporated in the Cayman Islands on November 16, 2020, as a member of Zhong An Group, primarily providing property management, value-added services to property developers, and community value-added services in China - Company was incorporated in the Cayman Islands on **November 16, 2020**, and is a member of Zhong An Group[7](index=7&type=chunk) - The Group primarily provides **property management services**, **value-added services to property developers**, and **community value-added services** in China[7](index=7&type=chunk) [2. Basis of Preparation and Accounting Policies](index=6&type=section&id=2.%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96%E5%8F%8A%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) Interim condensed consolidated financial information is prepared in accordance with IAS 34 and presented in RMB, with no material impact from new accounting standard amendments - Interim condensed consolidated financial information is prepared in accordance with **International Accounting Standard 34 'Interim Financial Reporting'** and presented in **RMB**[8](index=8&type=chunk) - The amendments to **IAS

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。 Wise Living Technology Co., Ltd 慧 居 科 技 股 份 有 限 公 司 （ 於 中 華 人 民 共 和 國 註 冊 成 立 的 股 份 有 限 公 司 ） （股份代號：2481） 截至2025年6月30日止六個月之 中期業績公告 及 變更上市所得款項用途 董事會欣然宣佈，本集團於報告期的未經審核中期業績，連同同期的比較數字 如下： 財務表現摘要 – 1 – ‧ 報告期收入約人民幣759.6百萬元，較同期的約人民幣834.0百萬元減少約 8.9%。 ‧ 報告期毛利約人民幣239.6百萬元，較同期的約人民幣233.8百萬元增加約 2.5%。 ‧ 本公司擁有人應佔利潤約人民幣111.7百萬元，較同期的約人民幣112.3百 萬元減少約0.5%。 管理層討論與分析 行業回顧 中國供熱服務行業概覽 對於冬季面臨極寒天氣的中國北方地區（尤其是「三北地區」）居民而言，供熱 服務為其所需的 ...

[Financial Summary](index=1&type=section&id=Financial%20Summary) The company's financial performance for the six months ended June 30, 2025, shows revenue growth and reduced segment loss, with overall loss stable [Financial Summary for the Six Months Ended June 30, 2025](index=1&type=section&id=Financial%20Summary) | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | Period-on-period Change | | :--- | :--- | :--- | :--- | | Revenue | 353,380 | 301,203 | 17.3% | | Selling and Distribution Expenses | (145,070) | (151,565) | -4.3% | | Administrative Expenses | (62,745) | (62,625) | 0.2% | | Research and Development Expenses | (115,636) | (100,484) | 15.1% | | Segment Loss | (75,828) | (95,809) | -20.9% | | Including: Segment Profit from Neuro-Interventional Business | 40,903 | 28,716 | 42.4% | | Loss for the Period | (71,178) | (71,283) | -0.1% | | Bank Balances, Cash and Time Deposits (End of Period) | 611,769 | 707,775 | -13.6% | [Business Summary](index=2&type=section&id=Business%20Summary) The company achieved significant revenue growth from transcatheter valve therapy and neuro-interventional businesses, improving efficiency and narrowing net loss [Overall Performance and Revenue Composition](index=2&type=section&id=Overall%20Performance%20and%20Revenue%20Composition) Revenue grew by 17.3% to RMB 353.4 million, driven by transcatheter valve therapy and neuro-interventional products, maintaining a stable revenue mix [Revenue Composition and Growth](index=2&type=section&id=Overall%20Performance%20and%20Revenue%20Composition) | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Year-on-year Growth | | :--- | :--- | :--- | :--- | | Total Revenue | 353.4 | 301.2 | 17.3% | | TAVR-related Product Sales | 161.6 | 130.3 | 24.0% | | Neuro-interventional Product Sales | 191.8 | 170.9 | 12.2% | - TAVR-related product sales revenue increased by **24.0%** year-on-year, driven by increased market share in China's transfemoral TAVR market and a shift towards newly launched high-end products, with total terminal implantations exceeding **2,050 units**, a year-on-year increase of approximately **18.8%**[4](index=4&type=chunk) - Neuro-interventional product sales revenue increased by **12.2%** year-on-year, primarily due to deeper market penetration of existing products (DCwire® micro-guidewire, Tethys AS® aspiration catheter, and Fastunnel® delivery balloon dilatation catheter) and the successful launch of the newly approved YonFlow® flow diverter stent[4](index=4&type=chunk) [Improved Operating Performance and Narrowed Net Loss](index=2&type=section&id=Improved%20Operating%20Performance%20and%20Narrowed%20Net%20Loss) The Group significantly improved operating performance and narrowed net loss through economies of scale and lean management, optimizing segment expense ratios - Segment profit from the neuro-interventional business increased by **42.4%** year-on-year to **RMB 40.9 million**[5](index=5&type=chunk) - Segment loss from the transcatheter valve therapy business narrowed by **35.3%** to **RMB 76.1 million**[5](index=5&type=chunk) - Excluding the impact of the frontier technology business, the Group's net loss for the period was **RMB 30.7 million**, a year-on-year reduction of **52.4%**[5](index=5&type=chunk) [Transcatheter Valve Therapy Business Market and Product Progress](index=2&type=section&id=Transcatheter%20Valve%20Therapy%20Business%20Market%20and%20Product%20Progress) The company expanded TAVR surgery coverage to over 720 medical institutions and launched upgraded TAVR products with positive clinical feedback - TAVR products saw over **70 new hospital admissions**, accumulating coverage of over **720 medical institutions** in China[6](index=6&type=chunk) - The comprehensive commercial TAVR product portfolio includes TaurusOne®, TaurusElite®, and TaurusMax™, with the high-end product TaurusMax™ receiving positive clinical feedback[6](index=6&type=chunk) [Transcatheter Valve Therapy Business Financial Performance and R&D Investment](index=3&type=section&id=Transcatheter%20Valve%20Therapy%20Business%20Financial%20Performance%20and%20R%26D%20Investment) Improved operating efficiency significantly reduced segment loss for transcatheter valve therapy, achieving commercial profitability for the first time - The transcatheter valve therapy business segment loss significantly narrowed by **35.3%** to **RMB 76.1 million**[7](index=7&type=chunk) - This segment achieved commercial profitability for the first time, reaching **RMB 29.1 million**[7](index=7&type=chunk) - Selling and distribution expenses decreased by **8.3%** year-on-year, and R&D expenses decreased by **17.2%** year-on-year[7](index=7&type=chunk) [Transcatheter Valve Therapy Business Core Pipeline Product Progress](index=4&type=section&id=Transcatheter%20Valve%20Therapy%20Business%20Core%20Pipeline%20Product%20Progress) Three core pipeline products (TaurusTrioTM, TaurusNXT®, GeminiOne®) completed one-year patient follow-up with excellent data, with regulatory submissions underway - TaurusTrioTM, TaurusNXT®, and GeminiOne® three pipeline products completed one-year patient follow-up, with data demonstrating excellent safety and efficacy[8](index=8&type=chunk) - The registration application for TaurusTrioTM was officially accepted by the NMPA in May 2025[8](index=8&type=chunk) - Registration applications for TaurusNXT® and GeminiOne® are expected to be submitted in the coming months, with approvals anticipated between late 2025 and mid-2026[8](index=8&type=chunk) [Transcatheter Valve Therapy Business Other Clinical Stage Product Milestones](index=4&type=section&id=Transcatheter%20Valve%20Therapy%20Business%20Other%20Clinical%20Stage%20Product%20Milestones) Clinical-stage products like HighLife® TSMVR, MonarQ TTVR®, and ReachTactile™ robotic-assisted TAVR are advancing with positive early results - HighLife® TSMVR system is accelerating patient enrollment, expected to complete enrollment in 2026, making it China's most advanced TMVR product in clinical progress[9](index=9&type=chunk) - MonarQ TTVR® system initiated global clinical studies, with the first implantation successfully completed in the United States[9](index=9&type=chunk) - ReachTactile™ robotic-assisted TAVR system completed FIM studies with 5 patients and will soon initiate pivotal clinical trials[9](index=9&type=chunk) [Neuro-Interventional Business Product Launches and Centralized Procurement Performance](index=5&type=section&id=Neuro-Interventional%20Business%20Product%20Launches%20and%20Centralized%20Procurement%20Performance) The neuro-interventional business achieved sustainable revenue growth through new product launches and successful centralized procurement bids, deepening market penetration - DCwire® micro-guidewire revenue increased by nearly **140%** year-on-year and has submitted a US FDA 510(k) application, with approval expected by the end of 2025[10](index=10&type=chunk) - YonFlow® flow diverter stent was approved by the NMPA in April 2025 and has completed procurement listings in over **20 provinces**[10](index=10&type=chunk) - SacSpeed® balloon dilatation catheter and Fastunnel® delivery balloon dilatation catheter won bids in centralized procurement led by Hebei Province, and coil products successfully renewed bids in Jiangsu Province centralized procurement[11](index=11&type=chunk) [Neuro-Interventional Business Operating Efficiency and Profit Growth](index=5&type=section&id=Neuro-Interventional%20Business%20Operating%20Efficiency%20and%20Profit%20Growth) Lean production and supply chain integration partially offset centralized procurement pressure, leading to a **42.4%** year-on-year increase in segment profit - The neuro-interventional business segment gross margin slightly decreased by **1.9 percentage points** to **61.8%** compared to full-year 2024[11](index=11&type=chunk) - Selling and distribution expense ratio, administrative expense ratio, and R&D expense ratio decreased by **1.3, 1.7, and 5.3 percentage points** year-on-year, respectively[11](index=11&type=chunk) - Segment profit from the neuro-interventional business increased by **42.4%** year-on-year to **RMB 40.9 million**[11](index=11&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This statement presents the Group's financial performance, showing a slight decrease in loss for the period despite revenue growth [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the Six Months Ended June 30, 2025)](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Revenue | 353,380 | 301,203 | | Cost of Sales | (105,757) | (82,338) | | Gross Profit | 247,623 | 218,865 | | Other Income | 9,898 | 9,944 | | Other Gains and Losses | (2,394) | 1,091 | | Selling and Distribution Expenses | (145,070) | (151,565) | | Administrative Expenses | (62,745) | (62,625) | | Research and Development Expenses | (115,636) | (100,484) | | Net Finance (Costs) Income | (709) | 16,295 | | Loss Before Tax | (69,033) | (68,479) | | Income Tax Expense | (2,145) | (2,804) | | Loss and Total Comprehensive Expense for the Period | (71,178) | (71,283) | | Loss Attributable to Owners of the Company | (69,880) | (71,273) | | Basic and Diluted Loss Per Share (RMB) | (0.10) | (0.10) | [Condensed Consolidated Statement of Financial Position](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This statement provides a snapshot of the Group's assets, liabilities, and equity as of June 30, 2025, showing changes in key financial positions [Condensed Consolidated Statement of Financial Position (As at June 30, 2025)](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) | Indicator | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Property, Plant and Equipment | 700,531 | 650,417 | | Intangible Assets | 678,383 | 655,997 | | Financial Assets at Fair Value Through Profit or Loss | 330,666 | 316,814 | | **Current Assets** | | | | Bank Balances and Cash | 601,769 | 666,736 | | Trade and Other Receivables | 58,699 | 101,038 | | **Current Liabilities** | | | | Trade and Other Payables | 235,877 | 349,563 | | Borrowings | 224,534 | 89,775 | | **Non-current Liabilities** | | | | Borrowings | 91,199 | 158,312 | | **Total Equity** | 1,986,253 | 2,044,599 | [Notes to the Condensed Consolidated Interim Financial Information](index=9&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Information) This section details the preparation basis, accounting policies, segment information, and other financial disclosures for the interim period [1 General Information](index=9&type=section&id=1%20General%20Information) Peijia Medical Limited, incorporated in the Cayman Islands, primarily engages in R&D, manufacturing, and sales of transcatheter valve therapy and neuro-interventional medical devices in China - The company was incorporated in the Cayman Islands on May 30, 2012, and its shares are listed on the Main Board of the Hong Kong Stock Exchange[15](index=15&type=chunk) - Its principal business involves the research, development, manufacturing, and sale of transcatheter valve therapy and neuro-interventional medical devices[15](index=15&type=chunk) [2. Basis of Preparation](index=9&type=section&id=2.%20Basis%20of%20Preparation) The condensed consolidated financial statements are prepared according to International Accounting Standard 34 and HKEX Listing Rules - The financial statements are prepared in accordance with International Accounting Standard 34 and the HKEX Listing Rules[17](index=17&type=chunk) [3. Accounting Policies](index=9&type=section&id=3.%20Accounting%20Policies) Financial statements are prepared on a historical cost basis, with some financial instruments at fair value, applying new share-based payment policies - The financial statements are prepared on a historical cost basis, with certain financial instruments measured at fair value[18](index=18&type=chunk) - The revised International Financial Reporting Standards accounting standards applied for the first time in this period had no significant impact on financial position and performance[19](index=19&type=chunk) - New accounting policies for share-based payments treat cancellation of share options as accelerated vesting and forfeiture as a transfer to accumulated losses[20](index=20&type=chunk) [4. Segments](index=10&type=section&id=4.%20Segments) The Group's operations are divided into transcatheter valve therapy, neuro-interventional, and frontier technology businesses, primarily located in China - The Group's businesses are categorized into transcatheter valve therapy, neuro-interventional, and frontier technology businesses[21](index=21&type=chunk)[22](index=22&type=chunk)[23](index=23&type=chunk)[24](index=24&type=chunk) - The Group's operations are primarily located in China, with both revenue and non-current assets (excluding financial assets at fair value through profit or loss) originating from China[25](index=25&type=chunk) [Segment (Loss) Profit (For the Six Months Ended June 30, 2025)](index=10&type=section&id=4.%20Segments) | Segment | Revenue (RMB '000) | Cost of Sales (RMB '000) | Selling and Distribution Expenses (RMB '000) | Administrative Expenses (RMB '000) | R&D Expenses (RMB '000) | Segment (Loss) Profit (RMB '000) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Transcatheter Valve Therapy Business | 161,606 | (32,492) | (100,029) | (50,982) | (54,195) | (76,092) | | Neuro-Interventional Business | 191,774 | (73,265) | (45,041) | (10,278) | (22,287) | 40,903 | | Frontier Technology Business | — | — | — | (1,485) | (39,154) | (40,639) | | Total | 353,380 | (105,757) | (145,070) | (62,745) | (115,636) | (75,828) | [Major Customer Revenue Contribution (For the Six Months Ended June 30, 2025)](index=10&type=section&id=4.%20Segments) | Customer | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Customer A | 104,292 | 48,790 | | Customer B | 76,950 | 65,922 | | Customer C | 73,922 | 62,627 | | Customer D | 41,791 | Not Applicable* | [5. Revenue](index=13&type=section&id=5.%20Revenue) The Group's medical device sales revenue for the six months ended June 30, 2025, increased by **17.3%** to **RMB 353,380 thousand** [Revenue from Medical Device Sales](index=13&type=section&id=5.%20Revenue) | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Revenue from Medical Device Sales | 353,380 | 301,203 | [6. Other Income](index=13&type=section&id=6.%20Other%20Income) The Group's other income for the six months ended June 30, 2025, totaled **RMB 9,898 thousand**, mainly from government grants and additional VAT deductions [Other Income Details](index=13&type=section&id=6.%20Other%20Income) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Government Grants | 6,444 | 9,743 | | Additional VAT Deductions | 3,096 | 201 | | Others | 358 | — | | Total | 9,898 | 9,944 | [7. Other Gains and Losses](index=13&type=section&id=7.%20Other%20Gains%20and%20Losses) The Group's net other gains and losses for the six months ended June 30, 2025, resulted in a loss of **RMB 2,394 thousand**, primarily due to net foreign exchange losses [Other Gains and Losses Details](index=13&type=section&id=7.%20Other%20Gains%20and%20Losses) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Net Foreign Exchange (Losses) Gains | (3,399) | 4,660 | | Net Fair Value Change of Financial Assets at Fair Value Through Profit or Loss | — | 2,002 | | Gains (Losses) on Disposal of Property, Plant and Equipment | 76 | (307) | | Loss on Forward Foreign Exchange Contracts | — | (4,826) | | Others | 929 | (438) | | Total | (2,394) | 1,091 | [8. Expense Analysis](index=14&type=section&id=8.%20Expense%20Analysis) Total expenses for the six months ended June 30, 2025, increased to **RMB 429,208 thousand**, driven by higher employee benefits, raw materials, R&D services, and professional fees [Expense Analysis (For the Six Months Ended June 30, 2025)](index=14&type=section&id=8.%20Expense%20Analysis) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Employee Benefit Expenses | 171,142 | 162,235 | | Raw Materials and Consumables Used | 83,505 | 66,798 | | R&D Service Expenses | 28,330 | 21,467 | | Professional Service Fees | 34,325 | 20,458 | | Depreciation of Property, Plant and Equipment | 24,616 | 16,538 | | Total Cost of Sales, Selling and Distribution Expenses, Administrative Expenses and R&D Expenses | 429,208 | 397,012 | [9. Net Finance (Costs) Income](index=15&type=section&id=9.%20Net%20Finance%20%28Costs%29%20Income) Net finance income for the six months ended June 30, 2025, became a net cost of **RMB 709 thousand**, driven by reduced bank interest income and increased borrowing interest expense [Net Finance (Costs) Income Details](index=15&type=section&id=9.%20Net%20Finance%20%28Costs%29%20Income) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Bank Interest Income | 5,106 | 16,427 | | Interest on Lease Liabilities | (208) | (132) | | Interest Expense on Borrowings | (5,607) | — | | Net Finance Income | (709) | 16,295 | [10. Income Tax Expense](index=15&type=section&id=10.%20Income%20Tax%20Expense) Income tax expense for the six months ended June 30, 2025, was **RMB 2,145 thousand**, with PRC entities benefiting from preferential tax rates and R&D deductions [Income Tax Expense Details](index=15&type=section&id=10.%20Income%20Tax%20Expense) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Current Income Tax: PRC Enterprise Income Tax | (1,699) | (2,380) | | Current Income Tax: Other Jurisdictions | (2,727) | (424) | | Deferred Tax Credit | 2,281 | — | | Total | (2,145) | (2,804) | - PRC entities are subject to Enterprise Income Tax rates of **25% or 15%** (for high-tech enterprises)[34](index=34&type=chunk) - Enterprises engaged in R&D activities are entitled to claim **200%** of their incurred R&D expenses as deductible expenses for tax purposes[34](index=34&type=chunk) [11. Loss Per Share](index=16&type=section&id=11.%20Loss%20Per%20Share) Basic and diluted loss per share for the six months ended June 30, 2025, remained at **RMB 0.10**, with potential ordinary shares excluded due to anti-dilutive effect [Loss Per Share (For the Six Months Ended June 30, 2025)](index=16&type=section&id=11.%20Loss%20Per%20Share) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Loss for the Period Attributable to Owners of the Company (RMB '000) | (69,880) | (71,273) | | Weighted Average Number of Ordinary Shares for Basic Loss Per Share (in thousands) | 665,991 | 679,375 | | Basic Loss Per Share (RMB) | (0.10) | (0.10) | | Diluted Loss Per Share (RMB) | (0.10) | (0.10) | - Due to the Group incurring a loss, potential ordinary shares (share options granted to employees) are not included in the calculation of diluted loss per share as they would have an anti-dilutive effect[37](index=37&type=chunk) [12. Trade and Other Receivables](index=17&type=section&id=12.%20Trade%20and%20Other%20Receivables) Total trade and other receivables decreased to RMB 65,568 thousand as of June 30, 2025, with trade receivables typically due within 60 days [Trade and Other Receivables Details](index=17&type=section&id=12.%20Trade%20and%20Other%20Receivables) | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Trade Receivables | 30,674 | 22,336 | | Loans to Employees | 10,312 | 11,186 | | Recoverable VAT | 15,173 | 8,463 | | Deposits | 6,735 | 4,634 | | Interest Receivable | 1,141 | 722 | | Other Receivables | 1,533 | 57,621 | | Total | 65,568 | 104,962 | - The credit period for trade receivables is generally around **60 days**[38](index=38&type=chunk) - Unsecured, interest-free loans provided to certain key management personnel are repayable between March 2026 and January 2027[38](index=38&type=chunk) [13. Trade and Other Payables](index=18&type=section&id=13.%20Trade%20and%20Other%20Payables) Total trade and other payables decreased to **RMB 257,897 thousand** as of June 30, 2025, with an average credit period of **30 days** for goods purchased [Trade and Other Payables Details](index=18&type=section&id=13.%20Trade%20and%20Other%20Payables) | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Trade Payables | 38,717 | 25,722 | | Other Payables | 151,973 | 262,340 | | Other Tax Payables | 22,548 | 13,170 | | Accrued Staff Salaries and Welfare | 33,958 | 40,465 | | Liabilities Arising from Share-based Payments with Cash Alternatives | 10,701 | 10,186 | | Total | 257,897 | 351,883 | - The average credit period for the purchase of goods is **30 days**[39](index=39&type=chunk) - An investment of **RMB 20,000,000** by an independent investor in a subsidiary is classified as a non-current liability due to a repurchase obligation under specific conditions[40](index=40&type=chunk) [14. Dividends](index=19&type=section&id=14.%20Dividends) No dividends were paid, declared, or proposed by the company or its existing subsidiaries for the six months ended June 30, 2025 - No dividends were paid or declared by the company or its existing subsidiaries for the six months ended June 30, 2025[41](index=41&type=chunk) [I. Business Review](index=20&type=section&id=I.%20Business%20Review) This section reviews the company's business operations, product lines, R&D, intellectual property, manufacturing, commercialization strategies, and future outlook [Overview](index=20&type=section&id=Overview) Peijia Medical established a leading medical technology platform focused on high-growth, underserved, and high-barrier interventional medical device markets globally - The company is committed to addressing high-growth interventional medical device market challenges in China and globally[42](index=42&type=chunk) - Key markets include transcatheter valve therapy medical device market and neuro-interventional surgery medical device market[42](index=42&type=chunk) [Products and Product Pipeline](index=20&type=section&id=Products%20and%20Product%20Pipeline) As of the announcement date, the company boasts a comprehensive product portfolio across transcatheter valve therapy, frontier technology, and neuro-interventional businesses - Transcatheter valve therapy business: **eight registered products** and multiple pipeline products under development[43](index=43&type=chunk) - Frontier technology business: **three pipeline products** under development[43](index=43&type=chunk) - Neuro-interventional business: **seventeen registered products** and multiple pipeline products under development[43](index=43&type=chunk) [Transcatheter Valve Therapy Products and Pipeline Products](index=22&type=section&id=Transcatheter%20Valve%20Therapy%20Products%20and%20Pipeline%20Products) The transcatheter valve therapy business generated **RMB 161.6 million** in revenue, growing by **24.0%** year-on-year, with a comprehensive portfolio covering TAVR, TMVR, and TTVR - Transcatheter valve therapy product sales revenue reached **RMB 161.6 million**, a year-on-year increase of **24.0%**[47](index=47&type=chunk) [Transcatheter Aortic Valve Replacement and Repair Products and Pipeline Products](index=22&type=section&id=Transcatheter%20Aortic%20Valve%20Replacement%20and%20Repair%20Products%20and%20Pipeline%20Products) The company's TAVR product line includes commercialized and upgraded systems, with advanced pipeline products like TaurusNXT® and TaurusTrioTM progressing towards regulatory approval - TaurusOne® (first-generation TAVR system) was commercialized in May 2021, with AV21 specifications approved in April 2024 and delivery system performance optimization approved in December 2024[48](index=48&type=chunk) - TaurusElite® (second-generation retrievable TAVR system) was commercialized in July 2021, with AV21 specifications approved in April 2024, making it the fastest-approved domestic retrievable TAVR product in the industry[50](index=50&type=chunk) - TaurusMax™ (new iteration steerable TAVR system) was approved by the NMPA in August 2024, commercialized in February 2025, and has received positive clinical feedback[51](index=51&type=chunk) - TaurusNXT® (third-generation "non-aldehyde cross-linked" dry valve TAVR system) is preparing for NMPA registration application submission, expected to significantly enhance artificial valve durability[53](index=53&type=chunk) - TaurusTrioTM (exclusively licensed JenaValve TrilogyTM THV system) has been implanted in Hong Kong and Taiwan, China, and its NMPA registration application was accepted in April 2025[57](index=57&type=chunk) [Transcatheter Mitral Valve Replacement and Repair Pipeline Products](index=25&type=section&id=Transcatheter%20Mitral%20Valve%20Replacement%20and%20Repair%20Pipeline%20Products) The company's TMVR and TTVR pipeline includes HighLife® TSMVR, GeminiOne®, and Sutra Hemi Valve, all advancing in clinical development - HighLife® TSMVR system has received FDA IDE approval and Breakthrough Device Designation, and is undergoing multi-center pivotal clinical trials[60](index=60&type=chunk) - GeminiOne® (edge-to-edge repair system) is preparing for NMPA registration application submission and has received FDA IDE approval for an early feasibility study[61](index=61&type=chunk) - Sutra Hemi Valve (transcatheter mitral valve coaptation enhancement system) is preparing for FIM study[63](index=63&type=chunk) [Frontier Technology Pipeline Products](index=27&type=section&id=Frontier%20Technology%20Pipeline%20Products) The frontier technology business focuses on global cutting-edge treatment solutions for heart valve diseases, with three pipeline products addressing unmet clinical needs - The frontier technology business focuses on providing global cutting-edge treatment solutions for various heart valve diseases, with all projects addressing unmet clinical needs in markets lacking mature treatment options[64](index=64&type=chunk) - Currently, there are three pipeline products: shockwave calcification remodeling system, MonarQ TTVR® system, and ReachTactile™ robotic-assisted TAVR system[64](index=64&type=chunk) - Two of these projects have independently secured external financing[64](index=64&type=chunk) [Shockwave Calcification Remodeling System](index=27&type=section&id=Shockwave%20Calcification%20Remodeling%20System) The shockwave calcification remodeling system uses shockwave technology to reshape calcified valve structures, showing positive early safety and efficacy data in FIM studies - The shockwave calcification remodeling system applies shockwave technology to reshape calcified structures on heart valves, usable as a standalone transcatheter aortic valve treatment or pre-TAVR procedure[65](index=65&type=chunk) - FIM studies for aortic valve stenosis and calcific mitral valve stenosis have been completed, showing positive early safety and efficacy data[65](index=65&type=chunk) [MonarQ TTVR® System](index=28&type=section&id=MonarQ%20TTVR%C2%AE%20System) The MonarQ TTVR® system, an innovative technology for tricuspid regurgitation, initiated global clinical studies following FDA IDE approval for EFS - The MonarQ TTVR® system is an innovative technology for treating tricuspid regurgitation, featuring a unique bio-dynamically compatible attachment system[67](index=67&type=chunk) - It has received FDA IDE approval for EFS, with global clinical studies underway, and the first implantation successfully completed in June 2025[67](index=67&type=chunk) [ReachTactile™ Robotic-Assisted TAVR System](index=28&type=section&id=ReachTactile%E2%84%A2%20Robotic-Assisted%20TAVR%20System) ReachTactile™ is a self-developed robotic-assisted TAVR system addressing surgical challenges and physician shortages, with modular design, haptic feedback, and remote control - ReachTactile™ is a self-developed robotic-assisted TAVR system aimed at addressing technical challenges during surgery and the shortage of experienced interventional cardiologists capable of performing transcatheter valve replacement or repair procedures[68](index=68&type=chunk) - The system features a modular mobile design, force-sensing mechanisms providing immediate haptic feedback, and remote control capabilities[68](index=68&type=chunk) - FIM studies have been completed, and pivotal clinical trials are being prepared for initiation soon[69](index=69&type=chunk) [Platform Technologies](index=29&type=section&id=Platform%20Technologies) The company possesses three patented platform technologies: "non-aldehyde cross-linked" dry valve, polymer leaflet, and shockwave calcification remodeling, applied in TAVR pipeline products - The company holds three patented platform technologies: "non-aldehyde cross-linked" dry valve technology, polymer leaflet technology, and shockwave calcification remodeling technology[70](index=70&type=chunk) - "Non-aldehyde cross-linked" dry valve technology and polymer leaflet technology are currently used in the third-generation TAVR product TaurusNXT® and fourth-generation TAVR product TaurusApex®, and can also be applied to other TAVR, TMVR, or TTVR pipeline products[70](index=70&type=chunk) - Shockwave calcification remodeling technology is currently used in the shockwave calcification remodeling system, applicable independently or as a pre-treatment step before transcatheter valve replacement surgery[70](index=70&type=chunk) [Neuro-Interventional Products and Pipeline Products](index=29&type=section&id=Neuro-Interventional%20Products%20and%20Pipeline%20Products) The neuro-interventional business achieved **RMB 191.8 million** in revenue, a **12.2%** year-on-year increase, with a comprehensive product portfolio for hemorrhagic and ischemic stroke markets - Neuro-interventional product sales revenue reached **RMB 191.8 million**, a year-on-year increase of **12.2%**[71](index=71&type=chunk) [Hemorrhagic Products](index=30&type=section&id=Hemorrhagic%20Products) Total revenue from hemorrhagic products was **RMB 59.9 million**, growing by **8.7%** year-on-year, with four registered detachable coil products and the newly approved YonFlow® flow diverter stent - Total revenue from hemorrhagic products was **RMB 59.9 million**, an increase of **8.7%** compared to approximately RMB 55.1 million for the six months ended June 30, 2024, accounting for **31.3%** of total neuro-interventional business revenue[72](index=72&type=chunk) - The company possesses **four registered detachable coil products**, including the latest generation NRcoilTM detachable coil[72](index=72&type=chunk) - YonFlow® flow diverter stent received NMPA registration approval in April 2025 and is exclusively distributed by the company[73](index=73&type=chunk) [Ischemic Products](index=30&type=section&id=Ischemic%20Products) Total revenue from ischemic products was **RMB 56.8 million**, a **3.3%** year-on-year decrease, offering comprehensive solutions for acute ischemic stroke and intracranial atherosclerotic disease - Total revenue from ischemic products was **RMB 56.8 million**, a decrease of **3.3%** compared to approximately RMB 58.8 million for the six months ended June 30, 2023, accounting for **29.6%** of total neuro-interventional business revenue[74](index=74&type=chunk) - Syphonet® thrombectomy stent, Tethys AS® aspiration catheter, and Fluxcap® balloon guide catheter have received NMPA approval, providing a one-stop solution for mechanical thrombectomy procedures[75](index=75&type=chunk)[76](index=76&type=chunk)[77](index=77&type=chunk) - Fastunnel® delivery balloon dilatation catheter is the first domestic medical device capable of simultaneous balloon dilatation and stent delivery, utilizing an innovative "zero-exchange" technology[78](index=78&type=chunk) [Vascular Access Products](index=32&type=section&id=Vascular%20Access%20Products) Total revenue from vascular access products increased by **32.3%** to **RMB 75.0 million**, driven by approved products and the DCwire® micro-guidewire with US FDA 510(k) application - Total revenue from vascular access products was **RMB 75.0 million**, an increase of **32.3%** compared to approximately RMB 56.7 million for the six months ended June 30, 2024, accounting for **39.1%** of total neuro-interventional business revenue[79](index=79&type=chunk) - Tethys® intermediate guiding catheter and Heralder® DA distal access guiding catheter have received NMPA approval[79](index=79&type=chunk)[80](index=80&type=chunk) - DCwire® micro-guidewire has received NMPA approval, and has submitted a 510(k) application to the US FDA[80](index=80&type=chunk) [Research and Development](index=33&type=section&id=Research%20and%20Development) The company's R&D, led by Dr. Zhang Yi and Dr. Chen Jianfeng, focuses on internal innovation, BD opportunities, global collaborations, and establishing overseas R&D capabilities - The core R&D team is led by Dr. Zhang Yi, Chairman and CEO, and Dr. Chen Jianfeng, CTO, with Mr. Pan Kongrong transitioning to company advisor for R&D projects[81](index=81&type=chunk) - Overseas R&D capabilities are being established through collaborations with Sutra, inQB8, and others, alongside close cooperation with world-class advisors such as Dr. Nicolo PIAZZA, Dr. Saibal KAR, and Dr. Gilbert Tang[82](index=82&type=chunk)[83](index=83&type=chunk)[84](index=84&type=chunk) - Suzhou Institute of Interventional Medical Technology (IMI) was established to provide opportunities for acquiring emerging medical device technologies with significant global impact[84](index=84&type=chunk) - As of June 30, 2025, the internal R&D team consisted of **169 employees**[84](index=84&type=chunk) [Intellectual Property](index=35&type=section&id=Intellectual%20Property) The company is committed to independent innovation, enhancing its IP architecture to an offensive-defensive strategy, strengthening trademark compliance, and establishing trade secret management - The company has upgraded its intellectual property architecture from a defensive stance to an offensive-defensive strategy, marked by strengthened trademark usage compliance, the establishment of a preliminary framework for trade secret management, and more comprehensive protection of core technologies[85](index=85&type=chunk) - It has obtained GB/T 29490-2013 Intellectual Property Management System certification and is upgrading to meet the requirements of GB/T 29490-2023 Enterprise Intellectual Property Compliance Management System[85](index=85&type=chunk) - The company possesses a strong intellectual property portfolio, including a total of **228 granted and valid patents**, **155 pending patent applications**, and **137 registered trademarks**[85](index=85&type=chunk) [Manufacturing](index=36&type=section&id=Manufacturing) The transcatheter valve therapy business's new headquarters boasts expanded production capacity, while the neuro-interventional business expands its Suzhou factory, supported by an advanced quality management system - The new headquarters for the transcatheter valve therapy business has approximately **10,000 square meters** of production area and an annual production capacity of approximately **30,000 sets**, both more than three times the original capacity, and has passed NMPA inspection and obtained a medical device production license[86](index=86&type=chunk) - The neuro-interventional business is renovating and expanding its factory in Zhongtian Lane, Suzhou, to increase production capacity[86](index=86&type=chunk) - An advanced quality management system has been established, complying with GMP standards and ISO 13485:2016 Medical Devices — Quality Management Systems[87](index=87&type=chunk) [Commercialization](index=36&type=section&id=Commercialization) The company focuses on becoming a trusted partner for physicians through precise product positioning, comprehensive sales and marketing, and end-to-end engagement, achieving market penetration and successful centralized procurement bids - Transcatheter valve therapy products saw over **70 new hospital admissions**, covering approximately **720 medical institutions** as of June 30, 2025, with total terminal implantations exceeding **2,050 units**, a year-on-year increase of approximately **18.8%**[89](index=89&type=chunk) - The neuro-interventional business's YonFlow® flow diverter stent was successfully launched, completing procurement listings in over **20 provinces** and winning bids in Guangdong Province's centralized procurement for flow diverter stents[91](index=91&type=chunk) - The neuro-interventional product distributor network covers approximately **2,300 hospitals** across **31 provinces and cities** nationwide[91](index=91&type=chunk) - The company actively participates in centralized procurement for neuro-interventional products and has won multiple bids, with coil products covering over **90%** of provinces nationwide[93](index=93&type=chunk) [Future Outlook](index=38&type=section&id=Future%20Outlook) The company aims to lead innovative interventional therapies for structural heart and neurovascular diseases, focusing on market penetration, R&D advancement, and profitability - The transcatheter valve therapy business will steadfastly pursue the goal of becoming the **number one TAVR brand in China**, focusing on expanding market penetration of approved products and accelerating the regulatory process for pipeline products[94](index=94&type=chunk) - The frontier technology business will continuously advance subsidiary financing plans and R&D of cutting-edge therapeutic products, accelerating the translation of technological innovation into clinical application[95](index=95&type=chunk) - The neuro-interventional business will maintain its revenue growth momentum while implementing cost control measures to enhance profitability and maximize shareholder value[95](index=95&type=chunk) [II. Financial Review](index=39&type=section&id=II.%20Financial%20Review) This section provides a detailed review of the Group's financial performance, including revenue, costs, profitability, and financial position [Revenue](index=39&type=section&id=Revenue) The Group's revenue for the six months ended June 30, 2025, increased by **17.3%** to **RMB 353.4 million**, driven by strong performance in transcatheter valve therapy and neuro-interventional businesses [Revenue Details](index=39&type=section&id=Revenue) | Business | H1 2025 (RMB million) | H1 2024 (RMB million) | Year-on-year Growth | | :--- | :--- | :--- | :--- | | Total Revenue | 353.4 | 301.2 | 17.3% | | Neuro-Interventional Business | 191.8 | 170.9 | 12.2% | | Transcatheter Valve Therapy Business | 161.6 | 130.3 | 24.0% | - Revenue growth is primarily attributable to further market share growth in China's TAVR market and a shift in product portfolio towards newly launched high-end products[96](index=96&type=chunk) - Strong performance of key neuro-interventional products (including DCwire® micro-guidewire, Tethys AS® aspiration catheter, Fastunnel® delivery balloon dilatation catheter, and YonFlow® flow diverter stent) also contributed to revenue growth[96](index=96&type=chunk) [Neuro-Interventional Business Revenue Details](index=39&type=section&id=Revenue) | Product Category | 2025 (RMB '000) | Share (%) | 2024 (RMB '000) | Share (%) | | :--- | :--- | :--- | :--- | :--- | | Vascular Access Products | 74,978 | 39.1 | 56,665 | 33.2 | | Ischemic Products | 59,920 | 31.3 | 55,138 | 32.3 | | Hemorrhagic Products | 56,813 | 29.6 | 58,763 | 34.3 | | Others | 63 | —* | 320 | 0.2 | | Total | 191,774 | 100.0 | 170,886 | 100.0 | [Cost of Sales](index=40&type=section&id=Cost%20of%20Sales) Cost of sales increased by **28.4%** to **RMB 105.8 million** for the six months ended June 30, 2025, mainly due to higher sales volumes in both transcatheter valve therapy and neuro-interventional businesses - Cost of sales was **RMB 105.8 million**, a year-on-year increase of **28.4%**[97](index=97&type=chunk) - The increase was primarily due to higher sales volumes in both the transcatheter valve therapy business and the neuro-interventional business, leading to increased material costs, labor costs, and overheads[97](index=97&type=chunk) [Gross Profit and Gross Margin](index=40&type=section&id=Gross%20Profit%20and%20Gross%20Margin) Gross profit increased by **13.1%** to **RMB 247.6 million**, but gross margin decreased from **72.7%** to **70.1%**, primarily impacted by centralized procurement for neuro-interventional products - Gross profit increased by **13.1%** from **RMB 218.9 million** for the six months ended June 30, 2024, to **RMB 247.6 million** for the six months ended June 30, 2025[98](index=98&type=chunk) - Gross margin was **70.1%** for the six months ended June 30, 2025, compared to **72.7%** for the six months ended June 30, 2024, with the decrease primarily due to the impact of centralized procurement for neuro-interventional products[98](index=98&type=chunk) [Selling and Distribution Expenses](index=40&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and distribution expenses decreased by **4.3%** to **RMB 145.1 million**, mainly due to savings from refined management of conference, promotion, and travel expenses - Selling and distribution expenses decreased by **4.3%** from **RMB 151.6 million** for the six months ended June 30, 2024, to **RMB 145.1 million** during the reporting period[99](index=99&type=chunk) - The decrease was primarily due to savings achieved through refined management of conference expenses, promotion expenses, travel costs, and other expenses[99](index=99&type=chunk) [Administrative Expenses](index=41&type=section&id=Administrative%20Expenses) Administrative expenses slightly increased by **0.2%** to **RMB 62.7 million**, mainly due to higher depreciation expenses partially offset by cost control - Administrative expenses increased by **0.2%** from **RMB 62.6 million** for the six months ended June 30, 2024, to **RMB 62.7 million** for the six months ended June 30, 2025[100](index=100&type=chunk) - The increase was primarily due to higher depreciation expenses, partially offset by cost control measures[100](index=100&type=chunk) [Research and Development Expenses](index=41&type=section&id=Research%20and%20Development%20Expenses) R&D expenses increased by 15.1% to RMB 115.6 million, primarily due to higher service expenses for frontier technology product development - R&D expenses increased by **15.1%** from **RMB 100.5 million** for the six months ended June 30, 2024, to **RMB 115.6 million** during the reporting period[101](index=101&type=chunk) - The increase was primarily due to service expenses paid for the development of frontier technology products[101](index=101&type=chunk) [R&D Expense Components](index=41&type=section&id=Research%20and%20Development%20Expenses) | Item | 2025 (RMB '000) | Share (%) | 2024 (RMB '000) | Share (%) | | :--- | :--- | :--- | :--- | :--- | | R&D Service Expenses | 23,571 | 20.4 | 21,467 | 21.4 | | Employee Benefit Expenses | 43,967 | 38.0 | 43,477 | 43.3 | | Professional Service Fees | 17,613 | 15.2 | 2,695 | 2.7 | | Cost of Raw Materials and Consumables Used | 21,116 | 18.3 | 22,527 | 22.4 | | Depreciation and Amortization | 6,125 | 5.3 | 5,628 | 5.6 | | Others | 3,244 | 2.8 | 4,690 | 4.6 | | Total | 115,636 | 100.0 | 100,484 | 100.0 | [Net Other Gains and Losses](index=42&type=section&id=Net%20Other%20Gains%20and%20Losses) Net other gains and losses shifted from a gain of **RMB 1.1 million** to a loss of **RMB 2.4 million**, primarily due to changes in foreign exchange gains and losses - Net other gains and losses decreased from a net gain of **RMB 1.1 million** for the six months ended June 30, 2024, to a net loss of **RMB 2.4 million** for the six months ended June 30, 2025[103](index=103&type=chunk) - This decrease was primarily due to changes in foreign exchange gains and losses, shifting from a foreign exchange gain of **RMB 4.6 million** in the prior year to a foreign exchange loss of **RMB 3.4 million**[103](index=103&type=chunk) [Net Finance (Costs) Income](index=42&type=section&id=Net%20Finance%20%28Costs%29%20Income) Net finance income decreased significantly from **RMB 16.3 million** to a net cost of **RMB 0.7 million**, mainly due to reduced bank interest income from lower bank balances - Net finance income decreased from **RMB 16.3 million** for the six months ended June 30, 2024, to a net finance cost of **RMB 0.7 million** during the reporting period[104](index=104&type=chunk) - This decrease was primarily due to reduced bank balances (especially large-denomination time deposits), leading to lower interest income[104](index=104&type=chunk) [Capital Gearing Ratio](index=42&type=section&id=Capital%20Gearing%20Ratio) The Group's capital gearing ratio decreased from 31.5% as of December 31, 2024, to 30.9% as of June 30, 2025 - As of June 30, 2025, the Group's capital gearing ratio decreased from **31.5%** as of December 31, 2024, to **30.9%**[105](index=105&type=chunk) [Net Current Assets](index=42&type=section&id=Net%20Current%20Assets) The Group's net current assets decreased by **RMB 180.0 million** to **RMB 364.3 million** as of June 30, 2025, due to reduced trade and other receivables and lower short-term deposit balances - The Group's net current assets as of June 30, 2025, were **RMB 364.3 million**, a decrease of **RMB 180.0 million** compared to RMB 544.3 million as of December 31, 2024[106](index=106&type=chunk) - This decrease was primarily attributable to reduced trade and other receivables, and lower short-term deposit balances driven by investments in property and plant[106](index=106&type=chunk) [Borrowings](index=42&type=section&id=Borrowings) Total borrowings increased to RMB 315.7 million as of June 30, 2025, primarily for new headquarters construction financing and managing funding costs - As of June 30, 2025, the Group's interest-bearing borrowings at rates of **2.7%-3.6%** amounted to **RMB 315.7 million**, compared to RMB 248.1 million as of December 31, 2024[107](index=107&type=chunk) - Long-term borrowings are for financing the construction of the new headquarters, while short-term borrowings aim to better manage funding costs by securing more favorable interest rates[107](index=107&type=chunk) [Liquidity and Financial Resources](index=43&type=section&id=Liquidity%20and%20Financial%20Resources) The Group's total cash, cash equivalents, and time deposits decreased by **13.6%** to **RMB 611.8 million**, but the company maintains a strong financial position and expects increased cash inflows - As of June 30, 2025, the Group's total cash, cash equivalents, and time deposits were approximately **RMB 611.8 million**, a decrease of **13.6%** compared to RMB 707.8 million as of December 31, 2024[109](index=109&type=chunk) - The Group relies on capital contributions from shareholders as its primary source of liquidity and generates cash from sales of existing commercialized products[109](index=109&type=chunk) - With business development and expansion, the Group expects to generate more net cash inflows from operating activities through increasing sales of existing commercialized products and launching new products[109](index=109&type=chunk) [Capital Expenditure](index=43&type=section&id=Capital%20Expenditure) Total capital expenditure for the six months ended June 30, 2025, was approximately **RMB 188.1 million**, primarily for pipeline products, property, plant, and equipment - Total capital expenditure for the six months ended June 30, 2025, was approximately **RMB 188.1 million**[110](index=110&type=chunk) - Primarily used for ongoing investments in TaurusTrioTM and TaurusNXT®, construction of property and plant, and equipment procurement[110](index=110&type=chunk) [Significant Investments](index=43&type=section&id=Significant%20Investments) As of June 30, 2025, the Group held **RMB 330.7 million** in non-current financial assets at fair value through profit or loss, comprising nine unlisted equity investments, including a **50%** stake in inQB8 - As of June 30, 2025, the balance of non-current financial assets at fair value through profit or loss was **RMB 330.7 million**, representing **nine unlisted equity investments**[111](index=111&type=chunk) - The Group holds a **50%** equity interest in inQB8, with the fair value of the Group's interest being **RMB 164.6 million**, accounting for **6.3%** of total assets as of June 30, 2025[112](index=112&type=chunk) - inQB8 is strategically collaborating with the Group to develop the innovative MonarQ TTVR® system for tricuspid regurgitation, with global clinical studies currently underway[112](index=112&type=chunk) [Contingent Liabilities](index=44&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities[113](index=113&type=chunk) [Significant Acquisitions and Disposals](index=44&type=section&id=Significant%20Acquisitions%20and%20Disposals) As of June 30, 2025, the Group had no significant acquisitions or disposals of subsidiaries, associates, or joint ventures - As of June 30, 2025, the Group had no significant acquisitions or disposals of subsidiaries, associates, or joint ventures[114](index=114&type=chunk) [Future Plans for Material Investments or Capital Assets](index=44&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) As of the announcement date, the Group has no authorized or specific plans for any material investments or acquisitions of capital assets - As of the date of this announcement, the Group has no authorized or specific plans for any material investments or acquisitions of capital assets[115](index=115&type=chunk) [Pledge of Assets](index=44&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, land use rights and property, plant, and equipment with carrying values of **RMB 8.7 million** and **RMB 346.0 million** were pledged for long-term bank borrowings - As of June 30, 2025, land use rights and property, plant and equipment with carrying values of **RMB 8.7 million** and **RMB 346.0 million**, respectively, were pledged for long-term bank borrowings[116](index=116&type=chunk) [Foreign Exchange Risk](index=45&type=section&id=Foreign%20Exchange%20Risk) The Group is exposed to transactional currency risk, with certain cash, cash equivalents, and financial assets at fair value through profit or loss denominated in foreign currencies - The Group is exposed to transactional currency risk, with certain cash and cash equivalents and financial assets at fair value through profit or loss denominated in foreign currencies[117](index=117&type=chunk) [Use of Proceeds from Global Offering](index=45&type=section&id=Use%20of%20Proceeds%20from%20Global%20Offering) Net proceeds from the global offering, approximately **HKD 2,587.98 million**, are utilized consistent with the intended purposes disclosed in the prospectus - Net proceeds from the global offering were approximately **HKD 2,587.98 million** and will be utilized in a manner consistent with the intended purposes disclosed in the prospectus[118](index=118&type=chunk) [Use of Net Proceeds from Global Offering (As of June 30, 2025)](index=45&type=section&id=Use%20of%20Proceeds%20from%20Global%20Offering) | Business Objective | Percentage of Total (%) | Net Proceeds (HKD million) | Unutilized Amount as at December 31, 2024 (HKD million) | Amount Utilized During the Reporting Period (HKD million) | Unutilized Amount as at June 30, 2025 (HKD million) | Expected Timeline for Utilizing Unutilized Amount | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Development and Commercialization of Core Products and Other Key Pipeline Products | 65 | 1,682.18 | 399.44 | 81.65 | 317.79 | 2028(2) | | Ongoing Pre-clinical Studies and Proposed Clinical Trials, Preparation for Registration Filings, and Potential Commercial Launch (including Sales and Marketing) for Other Pipeline Products | 10 | 258.80 | 0 | 0 | 0 | — | | Strengthening R&D Capabilities to Enrich Our Product Pipeline | 8 | 207.04 | 30.45 | 18.30 | 12.15 | 2025 | | Expanding Our Product Portfolio or Intellectual Property Portfolio Through Potential Strategic Acquisitions, Investments, Partnerships, and Licensing Opportunities | 10 | 258.80 | 0 | 0 | 0 | — | | Working Capital and Other General Corporate Purposes | 7 | 181.16 | 0 | 0 | 0 | — | | Total | 100 | 2,587.98 | 429.89 | 99.95 | 329.94 | | - The expected timeline for the development and commercialization of core products and other key pipeline products has been extended from 2025 to **2028**[122](index=122&type=chunk) [Use of Proceeds from Placing](index=46&type=section&id=Use%20of%20Proceeds%20from%20Placing) Net proceeds from the placing, approximately **HKD 971.48 million**, are used to strengthen the Group's financial position and fund its business, expansion, and growth plans - Net proceeds from the placing were approximately **HKD 971.48 million**, used to strengthen the Group's financial position and long-term fund its business, expansion, and growth plans[121](index=121&type=chunk) [Use of Net Proceeds from Placing (As of June 30, 2025)](index=46&type=section&id=Use%20of%20Proceeds%20from%20Placing) | Business Objective | Percentage of Total (%) | Net Proceeds (HKD million) | Unutilized Amount as at December 31, 2024 (HKD million) | Amount Utilized During the Reporting Period (HKD million) | Unutilized Amount as at June 30, 2025 (HKD million) | Expected Timeline for Utilizing Unutilized Amount | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Funding Potential Product Licensing and M&A Opportunities in the Mitral Valve Replacement and Repair Treatment Field | 30 | 291.44 | 25.31 | 0 | 25.31 | 2028(2) | | Funding Potential Product Licensing and M&A Opportunities in Other Fields, including Tricuspid Valve Replacement and Repair Treatment | 40 | 388.59 | 0 | 0 | 0 | — | | Funding the Group's Ongoing Technology Transfer, Product Development, and R&D | 25 | 242.87 | 0 | 0 | 0 | — | | For Other General Corporate Purposes | 5 | 48.58 | 48.58 | 37.60 | 10.98 | 2025 | | Total | 100 | 971.48 | 73.89 | 37.60 | 36.29 | | - The company has extended the timeline for utilizing placing proceeds for the execution of the licensing agreement with HighLife SAS from 2025 to **2028**, aligning with expected outcomes of key milestones around 2028[125](index=125&type=chunk) [Employees and Remuneration Policy](index=48&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had **1,035 employees** in China, with total employee benefit expenses of approximately **RMB 171.1 million**, and a policy of continuous education and performance-based remuneration - As of June 30, 2025, the Group had **1,035 employees**, all located in China[126](index=126&type=chunk) - During the reporting period, the Group's total employee benefit expenses were approximately **RMB 171.1 million**, including wages, salaries and bonuses, social security costs and housing benefits, employee welfare, and share-based compensation expenses[126](index=126&type=chunk) - The company provides employees with continuous education programs, regular feedback, and internal and external training, and evaluates their performance to determine salaries, promotion opportunities, and career development[126](index=126&type=chunk) [Events After Reporting Period](index=48&type=section&id=Events%20After%20Reporting%20Period) No significant events occurred after the reporting period and up to the date of this announcement, other than those disclosed herein - Except as disclosed in this announcement, no significant events occurred after the reporting period and up to the date of this announcement for the company or the Group[127](index=127&type=chunk) [Interim Dividend](index=48&type=section&id=Interim%20Dividend) The Board of Directors resolved not to declare any interim dividend for the reporting period - The Board of Directors has resolved not to declare any interim dividend for the reporting period (for the six months ended June 30, 2024: nil)[128](index=128&type=chunk) [Corporate Governance Practices](index=48&type=section&id=Corporate%20Governance%20Practices) The company adopted and complied with the Corporate Governance Code, maintaining a highly independent Board of Directors despite the Chairman and CEO being the same person - The company has adopted the code provisions of the Corporate Governance Code as the code governing its corporate governance practices and has complied with the relevant code provisions during the reporting period[129](index=129&type=chunk)[130](index=130&type=chunk) - The Board Chairman and CEO are held by the same person (Dr. Zhang), which the Board believes is beneficial to the Group's management, and the Board currently comprises three executive directors, three non-executive directors, and four independent non-executive directors, demonstrating a high degree of independence[130](index=130&type=chunk) [Standard Code for Securities Transactions](index=49&type=section&id=Standard%20Code%20for%20Securities%20Transactions) The company adopted the Standard Code for securities transactions by directors and senior management, with all directors confirming compliance during the reporting period - The company has adopted the Standard Code as the code of conduct for directors and senior management of the company in dealing in the company's securities[132](index=132&type=chunk) - Following specific inquiries with all directors, each confirmed compliance with the Standard Code for the six months ended June 30, 2025, and the company is unaware of any non-compliance by the Group's senior management during the reporting period[132](index=132&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities or Sale of Treasury Shares](index=49&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities%20or%20Sale%20of%20Treasury%20Shares) From September 1, 2020, to June 30, 2025, the RSU trustee purchased **5,859,000 shares** under the Restricted Share Unit Scheme, with no other significant transactions by the company or its subsidiaries - From September 1, 2020, to June 30, 2025, the Restricted Share Unit Scheme trustee purchased a total of **5,859,000 shares** (approximately **0.8751%** of the company's total issued share capital as of June 30, 2025) under the Restricted Share Unit Scheme[133](index=133&type=chunk) - Except as disclosed above, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities or sold any treasury shares during the reporting period[133](index=133&type=chunk) [Review of Financial Information](index=50&type=section&id=Review%20of%20Financial%20Information) The Audit Committee reviewed the Group's unaudited interim financial statements, confirming compliance with applicable accounting standards, laws, and regulations - The Audit Committee discussed with the company's management and reviewed the Group's unaudited interim financial statements for the reporting period, deeming them compliant with applicable accounting standards, laws, and regulations, with appropriate disclosures made by the company[134](index=134&type=chunk) [Publication of Results Announcement and Interim Report](index=50&type=section&id=Publication%20of%20Results%20Announcement%20and%20Interim%20Report) This announcement is published on the HKEX and company websites, with the full interim report to be dispatched to shareholders and published online - This announcement is published on the HKEX website (www.hkexnews.hk) and the company's website (www.peijiamedical.com)[135](index=135&type=chunk) - The company's interim report for the reporting period, containing all information required by the Listing Rules, will be dispatched to shareholders and published on the aforementioned websites in due course, in accordance with the company's corporate communication arrangements[135](index=135&type=chunk) [Acknowledgements](index=50&type=section&id=Acknowledgements) The Board expresses gratitude to all colleagues for their dedication and integrity, and to shareholders, customers, banks, and business partners for their trust and support - The Board extends its sincere gratitude to all colleagues for their hard work, dedication, loyalty, and integrity, and expresses deep appreciation to shareholders, customers, banks, and other business partners for their trust and support[136](index=136&type=chunk) [Definitions](index=50&type=section&id=Definitions) This section provides key terms and their meanings used in this interim results announcement to ensure clear understanding of the report content - This section provides key terms and their meanings used in this interim results announcement to ensure clear understanding of the report content[137](index=137&type=chunk)

[Performance Overview](index=1&type=section&id=Performance%20Overview) [Financial Performance Overview](index=1&type=section&id=1.1%20Financial%20Performance%20Overview) The company's revenue significantly decreased by 33.5% year-on-year due to business restructuring, but achieved a net profit turnaround through cost-efficiency measures and fair value gains on financial assets Financial Performance Summary | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Y-o-Y Change | Change Rate | Primary Reasons | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 120,392 | 181,011 | (60,619) | -33.5% | Strategic business structure adjustment, reduced revenue from data solutions, integrated services, IT maintenance and support | | Gross Profit | 9,111 | 14,577 | (5,466) | -37.5% | Revenue structure adjustment, increased proportion of commodity trading | | Net Profit | 41,098 | (38,635) | 79,733 | N/A (Turnaround to Profit) | Fair value gain on Tokyo Chuo Auction shares, cost-reduction and efficiency-improvement measures | | Basic EPS | 6.28 cents | (5.48 cents) | N/A (Turnaround to Profit) | N/A (Turnaround to Profit) | Increase in Net Profit | - The company strategically adjusted its business composition, leading to a reduction in data solutions business revenue by approximately **54.4%** (RMB 37,251,000), integrated services revenue (selling software, hardware, and related services) by approximately **39.1%** (RMB 18,376,000), and IT maintenance and support services revenue by approximately **88.9%** (RMB 3,406,000)[2](index=2&type=chunk) - During the reporting period, the company recognized a fair value gain of approximately **RMB 63,015,000** from holding 15,000,000 shares of Tokyo Chuo Auction Holdings Limited, a key factor in achieving profitability[4](index=4&type=chunk) - The Group vigorously implemented cost-reduction and efficiency-improvement measures, resulting in decreased R&D expenses, administrative expenses, finance costs, and selling expenses compared to the same period last year[4](index=4&type=chunk) [Interim Condensed Consolidated Financial Statements](index=3&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Statements) [Interim Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=2.1%20Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For H1 2025, the company reported a net profit of RMB 41,098 thousand, reversing a prior-year loss, driven by fair value gains and reduced expenses Consolidated Statement of Comprehensive Income Summary | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 120,392 | 181,011 | (60,619) | | Cost of Sales | (111,281) | (166,434) | 55,153 | | Gross Profit | 9,111 | 14,577 | (5,466) | | Selling Expenses | (2,586) | (5,528) | 2,942 | | Administrative Expenses | (20,983) | (24,053) | 3,070 | | R&D Expenses | (7,385) | (19,449) | 12,064 | | Operating Loss | (18,170) | (32,320) | 14,150 | | Fair value gain on financial assets at FVTPL | 63,015 | - | 63,015 | | Profit/(Loss) for the period | 41,098 | (38,635) | 79,733 | | Profit/(Loss) for the period attributable to owners of the Company | 43,186 | (36,040) | 79,226 | | Basic EPS/(Loss) (RMB cents) | 6.28 | (5.48) | N/A | - Selling expenses, administrative expenses, and R&D expenses all significantly decreased by **53.2%**, **12.8%**, and **62%** respectively, reflecting the company's efforts in cost reduction and efficiency improvement[5](index=5&type=chunk) - Fair value gain on financial assets was a key factor in the period's turnaround to profit, contributing **RMB 63,015 thousand** in income[5](index=5&type=chunk) [Interim Condensed Consolidated Statement of Financial Position](index=5&type=section&id=2.2%20Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets reached RMB 343,872 thousand and total equity grew to RMB 117,634 thousand, driven by reduced accumulated losses and increased share capital Consolidated Statement of Financial Position Summary | Metric | June 30, 2025 (RMB thousands) | Dec 31, 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 343,872 | 298,852 | 45,020 | | Non-current Assets | 163,982 | 105,900 | 58,082 | | Current Assets | 179,890 | 192,952 | (13,062) | | Total Equity | 117,634 | 42,881 | 74,753 | | Total Liabilities | 226,238 | 255,971 | (29,733) | | Net Current Liabilities | (45,765) | (50,851) | 5,086 | - Financial assets at fair value through profit or loss increased from zero to **RMB 67,700 thousand**, representing a significant component of total asset growth[7](index=7&type=chunk) - Accumulated losses decreased from **RMB (400,508) thousand** as of December 31, 2024, to **RMB (357,322) thousand**, reflecting the positive impact of current period's profit on equity[8](index=8&type=chunk) - Share capital increased to **RMB 7,149 thousand**, and other reserves also significantly grew, collectively driving the increase in total equity[8](index=8&type=chunk) [Notes to the Interim Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Statements) [General Information and Basis of Preparation](index=7&type=section&id=3.1%20General%20Information%20and%20Basis%20of%20Preparation) The company, an investment holding entity registered in the Cayman Islands, operates in data solutions, integrated IT services, and commodity trading, with interim financials prepared under IAS 34 in RMB - The Group is primarily engaged in providing data solutions, integrated services for selling software, hardware, and related services, IT maintenance and support services, and commodity trading[9](index=9&type=chunk) - The interim condensed financial information is prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting' and presented in RMB[10](index=10&type=chunk) [Revenue and Segment Information](index=8&type=section&id=3.2%20Revenue%20and%20Segment%20Information) Total revenue for the period was RMB 120,392 thousand, down 33.5% year-on-year, primarily due to a significant decline in integrated data technology services, with all revenue from mainland China Revenue by Source | Revenue Source | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Y-o-Y Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Data Solutions | 31,240 | 68,491 | (37,251) | -54.4% | | Integrated Services for Software, Hardware & Related Services | 28,592 | 46,968 | (18,376) | -39.1% | | IT Maintenance & Support Services | 426 | 3,832 | (3,406) | -88.9% | | **Subtotal: Integrated Data Technology Services** | **60,258** | **119,291** | **(59,033)** | **-49.5%** | | Commodity Trading | 60,134 | 61,720 | (1,586) | -2.6% | | **Total Revenue** | **120,392** | **181,011** | **(60,619)** | **-33.5%** | - The chief operating decision maker segments the Group's business into two reportable segments: integrated data technology services and commodity trading[12](index=12&type=chunk) - All of the Group's revenue and non-current assets are primarily located in mainland China[16](index=16&type=chunk) [Components of Profit/(Loss) Before Income Tax](index=10&type=section&id=3.3%20Components%20of%20Profit%2F%28Loss%29%20Before%20Income%20Tax) The company achieved a profit before income tax of RMB 40,931 thousand, reversing a prior-year loss, mainly due to a RMB 63,015 thousand fair value gain on financial assets and reduced operating expenses Profit/(Loss) Before Income Tax Components | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Employee Benefit Expenses | 31,237 | 56,944 | (25,707) | | Amortization of Intangible Assets | 7,152 | 8,142 | (990) | | Depreciation of Right-of-Use Assets | 502 | 2,631 | (2,129) | | Depreciation of Property and Equipment | 2,346 | 3,370 | (1,024) | | Depreciation of Investment Property | 363 | - | 363 | | (Reversal of expected credit losses)/Expected credit losses on trade receivables | (2,221) | 1,898 | (4,119) | | Reversal of expected credit losses on contract assets | (713) | (498) | (215) | | Fair value gain on financial assets at FVTPL | (63,015) | - | (63,015) | - Employee benefit expenses significantly decreased from **RMB 56,944 thousand** to **RMB 31,237 thousand**, representing a key achievement in cost control[17](index=17&type=chunk) - Provisions for expected credit losses on trade receivables and contract assets both shifted from an increase to a reversal, indicating an improvement in asset quality[17](index=17&type=chunk) [Finance Costs and Income Tax](index=11&type=section&id=3.4%20Finance%20Costs%20and%20Income%20Tax) Net finance costs decreased to RMB (3,914) thousand, and income tax credit was RMB 167 thousand, with Chinese subsidiaries benefiting from preferential high-tech enterprise tax rates Finance Costs and Income Tax Summary | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Interest income from bank deposits | 29 | 128 | (99) | | Interest expense on bank and other borrowings | (3,423) | (6,236) | 2,813 | | Net finance costs | (3,914) | (6,801) | 2,887 | | Income tax credit | 167 | 473 | (306) | - The reduction in net finance costs was primarily due to a decrease in interest expenses on bank and other borrowings[19](index=19&type=chunk) - Subsidiaries including Shenzhen Suoxinda, Ruihe Zhizhi (Beijing) Technology, and Shenzhen Yinxing are subject to a preferential enterprise income tax rate of **15%** due to their recognition as National High-Tech Enterprises[21](index=21&type=chunk) [Earnings/(Loss) Per Share](index=12&type=section&id=3.5%20Earnings%2F%28Loss%29%20Per%20Share) Basic and diluted earnings per share both reached **RMB 6.28 cents**, reversing a prior-year loss of **RMB 5.48 cents**, reflecting significant net profit improvement Earnings/(Loss) Per Share Summary | Metric | H1 2025 (RMB cents) | H1 2024 (RMB cents) | Change | | :--- | :--- | :--- | :--- | | Basic EPS/(Loss) | 6.28 | (5.48) | Turnaround to Profit | | Diluted EPS/(Loss) | 6.28 | (5.48) | Turnaround to Profit | - The weighted average number of ordinary shares used to calculate basic and diluted earnings per share increased from **657,948 thousand** shares to **687,544 thousand** shares[22](index=22&type=chunk) [Notes to Key Balance Sheet Items](index=13&type=section&id=3.6%20Notes%20to%20Key%20Balance%20Sheet%20Items) This section details key balance sheet item changes, noting reduced expected credit loss provisions for trade receivables and contract assets, declining bank borrowings and trade payables, and some bank deposits frozen due to litigation Key Balance Sheet Items | Item | June 30, 2025 (RMB thousands) | Dec 31, 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Property and Equipment | 1,335 | 3,047 | (1,712) | | Intangible Assets | 52,002 | 59,158 | (7,156) | | Trade Receivables (Net) | 80,662 | 90,660 | (9,998) | | Provision for ECL on Trade Receivables | (61,437) | (63,658) | 2,221 (Decrease) | | Contract Assets (Net) | 58,295 | 66,653 | (8,358) | | Provision for ECL on Contract Assets | (30,947) | (32,600) | 1,653 (Decrease) | | Trade Payables | 55,251 | 91,612 | (36,361) | | Bank and Other Borrowings (Total) | 127,449 | 108,660 | 18,789 | | Lease Liabilities (Total) | 3,356 | 5,340 | (1,984) | - The weighted average expected loss rate for trade receivables was adjusted across different aging buckets, with an expected loss rate of up to **89%** for receivables over one year old[28](index=28&type=chunk) - Approximately **RMB 3,034 thousand** of bank deposits were frozen by Chinese courts due to employee labor contract compensation lawsuits[41](index=41&type=chunk) - The weighted average annual interest rate for bank borrowings increased from **4.2%** as of December 31, 2024, to **4.5%** as of June 30, 2025[32](index=32&type=chunk) - The company did not declare any interim dividends and was not involved in any material litigation or arbitration[40](index=40&type=chunk)[42](index=42&type=chunk) [Management Discussion and Analysis](index=21&type=section&id=Management%20Discussion%20and%20Analysis) [Industry Background Analysis](index=21&type=section&id=4.1%20Industry%20Background%20Analysis) China's economy saw steady growth in H1 2025, with the digital economy and IT services sector expanding significantly, driven by financial sector AI and big data investments and a growing banking IT solutions market - In H1 2025, China's GDP grew by **5.3%** year-on-year, with the information transmission, software, and IT services sector growing by **11.1%**, and the financial sector by **7.3%**[43](index=43&type=chunk) - Financial regulators require commercial banks to increase technology investment to over **3%** of operating revenue, focusing on core technologies like AI, big data, and blockchain[43](index=43&type=chunk) - IDC forecasts China's banking IT solutions market to reach **RMB 103.939 billion** by 2029, with a **2.9%** year-on-year growth in 2024, and anticipates **65%** of financial institutions leveraging AI large model platforms to enhance digital intelligence by the end of 2025[45](index=45&type=chunk) - China's big data industry is reshaping the digital economy landscape with an average annual growth rate of **20%**, projected to exceed **RMB 2.8 trillion** by 2025 and **RMB 6.5 trillion** by 2030[46](index=46&type=chunk) [Business Review](index=22&type=section&id=4.2%20Business%20Review) The Group strengthened its market position in data intelligence and marketing technology through collaborations with major banks, expanded into new ventures like the 'Quanxinrong Platform,' and recognized fair value gains from strategic investments, while a share placement enhanced financing for debt repayment and working capital - The Group continuously signed cooperation projects with a major state-owned bank's head office and its Shenzhen and Macau branches, covering data warehouse application migration, credit corporate cards, basic platform upgrades, precision marketing, Xinchuang transformation, payroll systems, and operation and maintenance[47](index=47&type=chunk) - The Group secured a 'Model Development' project with a state-owned commercial bank in Southeast China, enhancing its AI analytical modeling capabilities for data-driven decision-making, and also secured 'Database' and 'Business System Xinchuang Transformation' projects[48](index=48&type=chunk) - A partnership was established with Quanzhou Data Group to jointly operate the 'Quanxinrong Platform,' exploring innovative cooperation models to provide convenient and efficient financial services to SMEs in Quanzhou[50](index=50&type=chunk) - The acquisition of **15,000,000** ordinary shares of Tokyo Chuo Auction Holdings Limited for **HKD 6.6 million** resulted in a recognized fair value gain of approximately **HKD 67.65 million**, marking the Group's diversification efforts[51](index=51&type=chunk) - A placement of **130,000,000** shares was completed, yielding net proceeds of approximately **HKD 38.6 million**, with **80%** allocated to debt repayment and **20%** to general working capital[53](index=53&type=chunk) [Future Outlook](index=26&type=section&id=4.3%20Future%20Outlook) The Group plans to strengthen core financial services, deepen data intelligence and marketing technology, and expand into digital assets, data element marketization, and IT integration. It will also explore Web3.0 and cryptocurrency assets, and partner with domestic GPU vendors to build integrated 'hardware+software+solution' capabilities for new growth - The Group will continue to deepen its presence in the FinTech sector, optimize client portfolio, expand its national market footprint, strengthen strategic relationships with key major clients, and actively broaden its client base across wider industries[55](index=55&type=chunk) - The Group will firmly focus on data intelligence and marketing technology, leveraging its end-to-end full-link data capabilities to strengthen its in-depth professional layout[56](index=56&type=chunk) - The Group plans to actively enter the Web3.0 and cryptocurrency asset sectors, investing in digital assets and fostering on-chain financial resources to accelerate the transformation of traditional financial services to on-chain, focusing on digital asset services in Greater China[57](index=57&type=chunk) - Plans include collaborating with domestic GPU hardware manufacturers to build integrated 'hardware + software + industry solution' capabilities centered on domestic GPUs, establishing an innovation business unit to cultivate cutting-edge technology applications such as AI, blockchain, software-hardware integration, and digital asset trading[58](index=58&type=chunk) - The Group will deepen its 'investment empowerment' model, continuously exploring value investment opportunities, integrating investment into a new growth paradigm, and achieving synergistic innovation and value enhancement through post-investment deep empowerment of enterprise development[58](index=58&type=chunk) [Financial Performance Analysis](index=28&type=section&id=4.4%20Financial%20Performance%20Analysis) Revenue declined 33.5% and gross profit 37.5% due to business restructuring, but significant reductions in selling, R&D, and administrative expenses, coupled with fair value gains, led to a profit of RMB 41,098 thousand for the period Financial Performance Metrics | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Y-o-Y Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Revenue | 120,392 | 181,011 | (60,619) | -33.5% | | Gross Profit | 9,111 | 14,577 | (5,466) | -37.5% | | Gross Profit Margin | 7.6% | 8.1% | -0.5% | - | | Selling Expenses | 2,586 | 5,528 | (2,942) | -53.2% | | R&D Expenses | 7,385 | 19,449 | (12,064) | -62.0% | | Administrative Expenses | 20,983 | 24,053 | (3,070) | -12.8% | | Income Tax Credit | 167 | 473 | (306) | -64.7% | | Profit for the Period | 41,098 | (38,635) | 79,733 | Turnaround to Profit | | Profit for the Period Attributable to Owners of the Company | 43,186 | (36,040) | 79,226 | Turnaround to Profit | | Basic EPS (RMB cents) | 6.28 | (5.48) | Turnaround to Profit | - | - The decrease in selling expenses was primarily due to organizational restructuring and optimized remuneration incentive mechanisms[61](index=61&type=chunk) - The reduction in R&D expenses was mainly due to the increasing maturity of previously developed products, shifting focus to product promotion and application[62](index=62&type=chunk) - The decrease in administrative expenses was primarily due to the optimization of the administrative management team and reduced office expenses[63](index=63&type=chunk) [Liquidity and Financial Resources](index=30&type=section&id=4.5%20Liquidity%20and%20Financial%20Resources) Net cash outflow from operating activities decreased, while investing outflow increased due to an acquisition. Financing inflow significantly rose from share issuance, leading to a reduced gearing ratio of 110.9% and improved financial position Cash Flow Summary | Cash Flow Type | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Net cash from/(used in) operating activities | (30,650) | (32,104) | 1,454 (Decreased outflow) | | Net cash from/(used in) investing activities | (6,796) | (5,308) | (1,488) (Increased outflow) | | Net cash from/(used in) financing activities | 47,079 | (7,228) | 54,307 (Turned from outflow to inflow) | - The decrease in net cash used in operating activities was primarily due to reduced project procurement, payroll expenses, and other miscellaneous expenditures[69](index=69&type=chunk) - The increase in net cash used in investing activities was mainly due to the acquisition of shares in Tokyo Chuo Auction Holdings Limited, resulting in a cash outflow of approximately **RMB 6,197 thousand**[70](index=70&type=chunk) - Net cash generated from financing activities significantly increased, primarily due to proceeds from share issuance of approximately **RMB 36,086 thousand** during the reporting period[71](index=71&type=chunk) - The gearing ratio decreased from **277.9%** as of December 31, 2024, to **110.9%** as of June 30, 2025, primarily due to an increase in total equity of approximately **RMB 74,753 thousand**[76](index=76&type=chunk) [Material Investments and Risk Management](index=33&type=section&id=4.6%20Material%20Investments%20and%20Risk%20Management) The company holds **15,000,000** ordinary shares of Tokyo Chuo Auction Holdings Limited, valued at approximately **RMB 67.7 million**, with no other material investments or capital commitments. Foreign exchange risks are managed, and no other significant investment plans exist - As of June 30, 2025, the company held **15,000,000** ordinary shares of Tokyo Chuo Auction Holdings Limited, with a carrying amount of approximately **RMB 67.7 million**[78](index=78&type=chunk) - The Group is exposed to certain foreign currency risks and implements management policies to closely monitor exchange rate fluctuations, regularly review foreign exchange risks, and consider hedging when necessary[81](index=81&type=chunk) - The Group currently has no other material investment or capital asset plans[82](index=82&type=chunk) [Other Information](index=34&type=section&id=Other%20Information) [Remuneration Policy and Employee Benefits](index=34&type=section&id=5.1%20Remuneration%20Policy%20and%20Employee%20Benefits) As of June 30, 2025, the Group employed **183** staff, providing competitive remuneration and benefits, with no labor disputes or recruitment difficulties for experienced personnel - As of June 30, 2025, the Group had a total of **183** employees in mainland China and Hong Kong[83](index=83&type=chunk) - The Group provides employees with comprehensive and competitive remuneration, retirement plans, and benefits, along with discretionary bonuses based on employee performance[83](index=83&type=chunk) - During the reporting period, the Group did not encounter any serious issues with employees due to labor disputes or experience operational disruptions[83](index=83&type=chunk) [Use of Proceeds from Share Placement](index=35&type=section&id=5.2%20Use%20of%20Proceeds%20from%20Share%20Placement) A share placement on May 21, 2025, yielded net proceeds of approximately **HKD 38.6 million**, primarily used for debt repayment (**HKD 29.6 million**) and general working capital (**HKD 7.7 million**), with **HKD 1.3 million** unutilized - On May 21, 2025, the company completed a placement of **130,000,000** shares, with net proceeds of approximately **HKD 38.6 million**[86](index=86&type=chunk) Use of Share Placement Proceeds | Purpose | Allocation Ratio | Allocated Amount (HKD millions) | Utilized Amount (HKD millions) | Unutilized Amount (HKD millions) | | :--- | :--- | :--- | :--- | :--- | | Repayment of Group Borrowings | 80% | 30.9 | 29.6 | 1.3 | | Replenishment of General Working Capital | 20% | 7.7 | 7.7 | - | | **Total** | **100%** | **38.6** | **37.3** | **1.3** | [Corporate Governance and Compliance](index=35&type=section&id=5.3%20Corporate%20Governance%20and%20Compliance) The company adheres to HKEX Corporate Governance Code, maintains consistent leadership with a combined Chairman/CEO role, and achieved full compliance with independent non-executive director requirements. It maintained sufficient public float and had no material litigation - The company has adopted the HKEX Corporate Governance Code and Model Code as the foundation for its corporate governance practices[88](index=88&type=chunk)[91](index=91&type=chunk) - Mr. Xue Shouguang serves as both Chairman of the Board and Chief Executive Officer, a structure the Board believes ensures consistent leadership[88](index=88&type=chunk) - The company previously had non-compliance issues regarding the number of independent non-executive directors and audit committee members but achieved full compliance after the appointment of Ms. Chu Ji Jun on March 14, 2025[89](index=89&type=chunk)[90](index=90&type=chunk) - The company has maintained a sufficient public float, with at least **25%** of its issued shares held by the public as required by the Listing Rules[93](index=93&type=chunk) - During the reporting period, the company was not involved in any material litigation or arbitration[94](index=94&type=chunk) [Review and Publication of Financial Information](index=37&type=section&id=5.4%20Review%20and%20Publication%20of%20Financial%20Information) The Audit Committee reviewed the unaudited interim condensed consolidated financial information, confirming fair presentation under applicable accounting standards, with the interim results announcement and report to be published on HKEX and the company website - The Audit Committee has reviewed the Group's unaudited interim condensed consolidated financial information and is satisfied that it is prepared in accordance with applicable accounting standards and presents fairly[95](index=95&type=chunk) - The Group's interim condensed consolidated financial information for the reporting period has not been audited by the company's auditors[96](index=96&type=chunk) - This interim results announcement will be published on the HKEX website and the company's website, and the interim report will be dispatched to shareholders in due course[98](index=98&type=chunk)

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) The company reported increased revenue and gross profit in H1 2025, but also a widened operating and net loss due to strategic investments Financial Highlights (RMB thousands, except percentages) | Financial Highlights | 2025 (Unaudited) | 2024 (Audited) | | :--- | :--- | :--- | | Revenue | 345,719 | 236,675 | | Gross Profit | 51,751 | 33,421 | | Gross Margin | 15.0% | 14.1% | | Operating Loss | (162,389) | (109,935) | | Loss for the Period | (162,287) | (112,048) | | Loss for the Period Attributable to Owners of the Company | (151,558) | (108,135) | | Loss for the Period Attributable to Non-controlling Interests | (10,729) | (3,913) | [Business Review and Outlook](index=2&type=section&id=Business%20Review%20and%20Outlook) The company achieved strong growth in H1 2025, driven by policy and market demand, with significant product iterations and market expansion [Business Highlights](index=2&type=section&id=Business%20Highlights) In H1 2025, the company achieved strong business growth, particularly benefiting from policy-driven intelligent driving and smart cockpit market penetration - National policies are driving the development of the intelligent driving and smart cockpit industries, with AEBS mandatory installation expanding to passenger cars and light commercial vehicles, and DMS penetration expected to accelerate[4](index=4&type=chunk) Key Financial Indicators (RMB millions) | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Year-on-Year Growth | | :--- | :--- | :--- | :--- | | Total Revenue | 345.7 | 236.7 | 46.1% | | Gross Profit | 51.8 | 33.4 | 54.8% | | Gross Margin | 15.0% | 14.1% | +0.9 percentage points | | Loss for the Period | (162.3) | (112.0) | 44.8% | | Adjusted Loss for the Period | (142.6) | (82.4) | 73.0% | [Intelligent Driving Product Iteration](index=3&type=section&id=Intelligent%20Driving%20Product%20Iteration) The company continuously iterates intelligent driving solutions, launching iPilot 4 Plus and iPilot 4 Pro, enhancing capabilities and securing OEM platform nominations - iPilot 4 Plus was launched in February 2025, based on Horizon Journey 6M chip, supporting multi-sensor fusion for full-scenario navigation assistance across urban, highway, and parking environments[6](index=6&type=chunk) - iPilot 4 Pro, launched in June 2025, utilizes a higher computing power chip (256 TOPS) to enhance decision-making in complex scenarios, extreme weather, and intricate intersections, securing OEM platform-level project nominations with mass production expected in H1 2026[6](index=6&type=chunk) [L4 Autonomous Driving Business Breakthrough](index=3&type=section&id=L4%20Autonomous%20Driving%20Business%20Breakthrough) L4 autonomous mini-bus operations achieved commercial deployment in Suzhou and are expanding, with unmanned logistics vehicles expected for Q4 delivery - L4 autonomous mini-bus business achieved commercial deployment in Suzhou in February 2025, and has expanded operations to multiple provinces and cities including Heilongjiang, Shanghai, and Hangzhou, securing over **10** project orders[7](index=7&type=chunk) - The company is actively exploring cargo scenarios such as unmanned logistics, with the first generation of unmanned logistics vehicles designed for **5.5 cubic meters** capacity and over **1 ton** maximum load, expected for formal delivery in Q4 2025[7](index=7&type=chunk) [Smart Cockpit Business Innovation](index=3&type=section&id=Smart%20Cockpit%20Business%20Innovation) Smart cockpit business achieved dual breakthroughs, launching a large model solution and a full-stack self-developed DMS all-in-one machine, aligning with integration trends - The new "Smart Butler BamBam" large model solution for cockpits was launched, deeply integrating multi-modal large model capabilities to enhance feature extraction and logical reasoning performance[8](index=8&type=chunk) - The full-stack self-developed iCabin Lite smart cockpit DMS all-in-one machine was released, highly integrating DMS cameras and controllers, meeting automakers' demands for development efficiency, cost control, and multi-model adaptation[9](index=9&type=chunk) [Driving-Cockpit Integration Strategy](index=4&type=section&id=Driving-Cockpit%20Integration%20Strategy) The company's core strategy is "driving-cockpit integration," building a unified technical architecture to connect intelligent driving and cockpit data chains for closed-loop synergy - The core strategy of "driving-cockpit integration" involves building an integrated technical architecture covering perception, decision-making, and interaction layers[10](index=10&type=chunk) - This strategy aims to establish a closed-loop collaborative capability from environmental perception to human-machine interaction by connecting the data links of intelligent driving and smart cockpit functions[10](index=10&type=chunk) [Customer Expansion and Platform Nominations](index=4&type=section&id=Customer%20Expansion%20and%20Platform%20Nominations) The company expanded its customer ecosystem, securing new nominations from global joint ventures, luxury brands, and NEV manufacturers, enhancing expected production scale - During the reporting period, new customer nominations were secured from a global renowned automaker's joint venture and luxury brand, and a new energy vehicle manufacturer[11](index=11&type=chunk) - As of June 30, 2025, the company has mass-produced for **42** automotive original equipment manufacturers (OEMs), with **18** new project nominations from OEMs and Tier-1 suppliers[11](index=11&type=chunk) - The company secured model platform nominations from Great Wall Motor and a global renowned automaker, totaling **6** model platform projects from **4** OEM customers, expected to lead to higher mass production scale and operational efficiency[11](index=11&type=chunk) [Overseas Development Strategy](index=4&type=section&id=Overseas%20Development%20Strategy) The company actively pursues overseas expansion, with products in multiple export models, collaborating with joint ventures and international Tier-1 suppliers, and establishing a Singapore subsidiary - Products have been applied in multiple export models, covering target markets including the EU, Australia, Singapore, Malaysia, India, South Korea, Dubai, Turkey, and Mexico[12](index=12&type=chunk) - The company has secured nomination collaborations with several joint venture automakers and entered the supply chains of international Tier-1 automotive parts enterprises through partnerships[12](index=12&type=chunk) - A subsidiary was established in Singapore, focusing on technical services and customer expansion, laying the foundation for broader overseas market cooperation[12](index=12&type=chunk) [Business Review](index=5&type=section&id=Business%20Review) The company's H1 2025 performance shows significant revenue growth across intelligent driving, smart cockpit, and vehicle-road coordination solutions [I. Intelligent Driving Solutions](index=5&type=section&id=I.%20Intelligent%20Driving%20Solutions) Intelligent driving solutions revenue increased by **32.4%** to **RMB 241.4 million**, accounting for **69.8%** of total revenue, offering comprehensive L0 to L4 solutions Intelligent Driving Solutions Revenue (RMB thousands) | Indicator | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | % of Total (2025) | % of Total (2024) | | :--- | :--- | :--- | :--- | :--- | | Intelligent Driving Solutions Revenue | 241,392 | 182,279 | 69.8% | 77.0% | | iSafety Solutions | 193,269 | 152,867 | 55.9% | 64.6% | | iPilot Solutions | 38,064 | 29,412 | 11.0% | 12.4% | | iRobo Solutions | 10,058 | – | 2.9% | – | - Intelligent driving solutions revenue increased by **32.4%** from **RMB 182.3 million** for the six months ended June 30, 2024, to **RMB 241.4 million** for the six months ended June 30, 2025[14](index=14&type=chunk)[25](index=25&type=chunk) [iSafety Solutions](index=5&type=section&id=iSafety%20Solutions) iSafety series offers L0 to L2 intelligent driving functions focused on enhancing vehicle safety, securing AEBS project nominations with expected mass production scale increase - iSafety solutions focus on L0 to L2 intelligent driving functions, highly compatible with mainstream single-chip system platforms, implementing functions based on low-computing power ECUs[15](index=15&type=chunk) - The company secured AEBS project nominations from multiple domestic mainstream commercial vehicle manufacturers, with mass production scale expected to further increase next year as new industry standards are implemented[15](index=15&type=chunk) [iPilot Solutions](index=6&type=section&id=iPilot%20Solutions) iPilot series focuses on L2+ functions like NOA and HAVP, experiencing rapid market growth, with 4 new advanced driving assistance project nominations - iPilot series focuses on L2+ functions, offering Navigation on Autopilot (NOA), Home Area View Parking (HAVP), and Automated Parking Assist (APA), with the market experiencing rapid growth driven by the "Intelligent Driving for All" strategy, and NOA pre-installation increasing by **134.68%** year-on-year[16](index=16&type=chunk) - **4** new advanced driving assistance project nominations were secured, covering multiple vehicle platforms from various OEMs, including **2** platform-level project nominations from Great Wall Motor[16](index=16&type=chunk) [iRobo Solutions](index=6&type=section&id=iRobo%20Solutions) iRobo L4 autonomous driving business achieved commercial deployment of unmanned mini-buses in Suzhou, securing over 10 project orders, and is actively exploring unmanned logistics - iRobo L4 autonomous driving business achieved its first commercial deployment of unmanned mini-buses in Suzhou in February 2025, accumulating over **10** project orders[17](index=17&type=chunk) - The company is actively exploring cargo scenarios such as unmanned logistics, with the first generation of unmanned logistics vehicles now in open road testing, expected for formal delivery in Q4 2025[17](index=17&type=chunk) [II. Smart Cockpit Solutions](index=7&type=section&id=II.%20Smart%20Cockpit%20Solutions) Smart cockpit solutions revenue increased by **99.0%** to **RMB 60.8 million**, representing **17.6%** of total revenue, with DMS projects achieving ASPICE V4.0 CL3 international assessment Smart Cockpit Solutions Revenue (RMB thousands) | Indicator | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | % of Total (2025) | % of Total (2024) | | :--- | :--- | :--- | :--- | :--- | | Smart Cockpit Solutions Revenue | 60,784 | 30,540 | 17.6% | 12.9% | - Smart cockpit solutions revenue increased by **99.0%** from **RMB 30.5 million** for the six months ended June 30, 2024, to **RMB 60.8 million** for the six months ended June 30, 2025[18](index=18&type=chunk)[26](index=26&type=chunk) - The DMS driver monitoring project successfully passed the Automotive SPICE (ASPICE) V4.0 CL3 international assessment, marking the first domestic case to pass the in-vehicle machine learning model ML-SPICE assessment[19](index=19&type=chunk) - Products fully comply with EU ADDW (Advanced Driver Distraction Warning) and DDAW (Driver Drowsiness and Attention Warning System) regulations, contributing to OEMs achieving E-NCAP five-star ratings, demonstrating rich experience in overseas deployment[20](index=20&type=chunk) - EU GSR regulations mandate DDAW for all new passenger and commercial vehicles from July 2024, upgrading to ADDW by July 2026; domestic DMS installation rate is only **22.4%**, with policy implementation expected to accelerate market development[21](index=21&type=chunk) - During the reporting period, the company continued to secure multiple project nominations, covering domestic brands, joint venture brands, and international Tier-1 suppliers, spanning commercial to passenger vehicles[22](index=22&type=chunk) [III. Vehicle-Road Coordination](index=8&type=section&id=III.%20Vehicle-Road%20Coordination) Vehicle-road coordination revenue increased by **63.4%** to **RMB 38.6 million**, accounting for **11.2%** of total revenue, expanding application scenarios and enhancing traffic safety Vehicle-Road Coordination Revenue (RMB thousands) | Indicator | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | % of Total (2025) | % of Total (2024) | | :--- | :--- | :--- | :--- | :--- | | Vehicle-Road Coordination Revenue | 38,599 | 23,626 | 11.2% | 10.0% | - Vehicle-road coordination revenue increased by **63.4%** from **RMB 23.6 million** for the six months ended June 30, 2024, to **RMB 38.6 million** for the six months ended June 30, 2025[23](index=23&type=chunk)[26](index=26&type=chunk) - Solutions integrate self-developed sensor equipment like radar and cameras, proprietary algorithms, and V2X technology, applied in highway and intersection traffic analysis, and industrial park access management[23](index=23&type=chunk) [Business Outlook](index=9&type=section&id=Business%20Outlook) The company will focus on intelligent driving and smart cockpit as core businesses, emphasizing innovation, solution optimization, global market expansion, and strategic partnerships - The company will focus on intelligent driving and smart cockpit as core businesses, emphasizing technological innovation, solution optimization, global market expansion, and seeking cooperation opportunities to drive the development of the autonomous driving industry[24](index=24&type=chunk) - No material adverse changes in financial or trading position or prospects have occurred from June 30, 2025, to the date of this announcement[24](index=24&type=chunk) [Management Discussion and Analysis](index=9&type=section&id=Management%20Discussion%20and%20Analysis) The company's H1 2025 financial performance shows significant revenue and gross profit growth, alongside increased losses due to strategic R&D investments [Financial Review](index=9&type=section&id=Financial%20Review) During the reporting period, total revenue increased by **46.1%** to **RMB 345.7 million**, gross profit grew by **54.8%**, but loss for the period expanded by **44.8%** Financial Performance Summary (RMB thousands) | Indicator | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Change | Change Rate | Primary Reason | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 345,719 | 236,675 | +109,044 | +46.1% | Increase in solution deliveries | | Cost of Sales | 293,968 | 203,254 | +90,714 | +44.6% | Increase in deliveries | | Gross Profit | 51,751 | 33,421 | +18,330 | +54.8% | Business growth and improved gross margin | | Gross Margin | 15.0% | 14.1% | +0.9% | - | Scale effect and increased iPilot revenue | | Selling Expenses | 53,382 | 32,015 | +21,367 | +66.7% | Consistent with revenue growth | | General and Administrative Expenses | 58,936 | 50,196 | +8,740 | +17.4% | Increase in management personnel salaries and recruitment | | Research and Development Expenses | 95,110 | 63,310 | +31,800 | +50.2% | Increase in R&D personnel and project investment | | Net Impairment Loss on Financial Assets | 9,936 | 6,595 | +3,341 | +50.7% | Increase in provisions for trade and other receivables | | Other Income | 8,362 | 6,259 | +2,103 | +33.6% | Amortization of deferred income and VAT refunds | | Other Gains/(Losses), Net | (5,138) | 2,501 | -7,639 | -305.4% | Foreign exchange loss due to HKD settlement increase | | Net Finance Costs | 102 | (2,113) | +2,215 | -104.8% | Increase in interest income from time deposits | | Loss for the Period | (162,287) | (112,048) | +50,239 | +44.8% | Increased investment in advanced assisted driving and L4 technologies | [Non-IFRS Measures](index=12&type=section&id=Non-IFRS%20Measures) The company uses adjusted net loss as a non-IFRS measure to exclude non-cash expenses, facilitating comparable operational performance analysis Reconciliation of Loss for the Period to Adjusted Net Loss (RMB thousands) | Indicator | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Loss for the Period | (162,287) | (112,048) | | Add: Share-based Payment Expenses | 19,737 | 15,311 | | Add: Listing Expenses | – | 14,298 | | **Adjusted Net Loss** | **(142,550)** | **(82,439)** | [Liquidity and Capital Resources](index=12&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, total cash and equivalents decreased, with increased net cash outflow from operations and higher total borrowings due to business expansion Liquidity and Capital Resources (RMB millions) | Indicator | June 30, 2025 (RMB millions) | December 31, 2024 (RMB millions) | Change | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents, Restricted Cash, and Time Deposits | 635.3 | 798.8 | -163.5 | | Net Cash Outflow from Operating Activities | 159.3 | 84.6 | +74.7 | | Total Borrowings | 289.2 | 191.5 | +97.7 | | Total Lease Liabilities | 13.7 | 21.0 | -7.3 | - The current ratio decreased from **3.14 times** at year-end 2024 to **2.9 times** as of June 30, 2025, and the debt-to-asset ratio decreased from **3.14 times** to **2.8 times**, primarily due to reduced cash and increased bank borrowings[42](index=42&type=chunk) [Pledged Assets](index=13&type=section&id=Pledged%20Assets) As of June 30, 2025, the company secured **RMB 30.0 million** in loans by pledging certain non-core patents - As of June 30, 2025, the company obtained **RMB 30.0 million** in loans by pledging certain non-core patents[43](index=43&type=chunk) [Capital Expenditure and Commitments](index=13&type=section&id=Capital%20Expenditure%20and%20Commitments) Capital expenditure decreased to **RMB 24.0 million**, while capital commitments, mainly for property, plant, and equipment, increased to **RMB 14.9 million** Capital Expenditure and Commitments (RMB millions) | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Change | | :--- | :--- | :--- | :--- | | Capital Expenditure | 24.0 | 59.7 | -35.7 | | Capital Commitments | 14.9 (June 30, 2025) | 3.5 (Dec 31, 2024) | +11.4 | [Contingent Liabilities](index=14&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the company had no significant contingent liabilities - As of June 30, 2025, the company had no significant contingent liabilities[45](index=45&type=chunk) [Financial Risk Management](index=14&type=section&id=Financial%20Risk%20Management) The company's finance department manages market, credit, and liquidity risks according to board-approved policies to identify, assess, and hedge financial risks - Business activities are exposed to market risks (including foreign exchange risk, cash flow and fair value interest rate risk, and price risk), credit risk, and liquidity risk[46](index=46&type=chunk) - Risk management is primarily controlled by the finance department in accordance with policies approved by the Board, covering foreign exchange risk, interest rate risk, and credit risk[46](index=46&type=chunk) [Significant Investments and Acquisitions/Disposals of Subsidiaries, Associates, and Joint Ventures](index=14&type=section&id=Significant%20Investments%20and%20Acquisitions%2FDisposals%20of%20Subsidiaries%2C%20Associates%2C%20and%20Joint%20Ventures) For the six months ended June 30, 2025, the company had no significant investments or major acquisitions/disposals of subsidiaries, associates, and joint ventures - For the six months ended June 30, 2025, the company had no significant investments and/or major acquisitions or disposals of subsidiaries, associates, and joint ventures[47](index=47&type=chunk) [Human Resources](index=14&type=section&id=Human%20Resources) As of June 30, 2025, the company had 686 full-time employees, offering competitive compensation, long-term incentive plans, and prioritizing staff training and development - As of June 30, 2025, the company had **686** full-time employees, all located in China[48](index=48&type=chunk) - The company offers competitive compensation packages, including performance-based bonuses, long-term incentive plans (e.g., employee incentive plans for selected managers, high-potential talents, and key technical professionals), and employee benefit programs[48](index=48&type=chunk) - The company emphasizes employee training and development, providing onboarding training for new employees and tailored continuous training courses to enhance their skills[49](index=49&type=chunk) [Condensed Consolidated Financial Statements](index=15&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the company's condensed consolidated financial statements, including the statement of comprehensive loss and statement of financial position [Condensed Consolidated Statement of Comprehensive Loss](index=15&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Loss) For the six months ended June 30, 2025, the company's loss for the period expanded to **RMB 162,287 thousand**, primarily due to increased operating expenses Condensed Consolidated Statement of Comprehensive Loss (RMB thousands) | Indicator (RMB thousands) | H1 2025 (Unaudited) | H1 2024 (Audited) | | :--- | :--- | :--- | | Revenue | 345,719 | 236,675 | | Cost of Sales | (293,968) | (203,254) | | Gross Profit | 51,751 | 33,421 | | Operating Loss | (162,389) | (109,935) | | Net Finance Costs | 102 | (2,113) | | Loss for the Period | (162,287) | (112,048) | | Loss for the Period Attributable to Owners of the Company | (151,558) | (108,135) | | Basic and Diluted Loss Per Share (RMB yuan) | (0.38) | (0.31) | [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 decreased to **RMB 1,578,619 thousand**, while total liabilities increased to **RMB 563,953 thousand** Condensed Consolidated Statement of Financial Position (RMB thousands) | Indicator (RMB thousands) | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | **Assets** | | | | Non-current Assets | 141,097 | 139,193 | | Current Assets | 1,437,522 | 1,539,097 | | **Total Assets** | **1,578,619** | **1,678,290** | | **Equity** | | | | Equity Attributable to Owners of the Company | 1,014,645 | 1,134,802 | | Non-controlling Interests | 21 | 8,323 | | **Total Equity** | **1,014,666** | **1,143,125** | | **Liabilities** | | | | Non-current Liabilities | 69,374 | 45,359 | | Current Liabilities | 494,579 | 489,806 | | **Total Liabilities** | **563,953** | **535,165** | | **Total Equity and Liabilities** | **1,578,619** | **1,678,290** | [Notes to the Financial Statements](index=19&type=section&id=Notes%20to%20the%20Financial%20Statements) This section provides detailed notes to the condensed consolidated financial statements, covering general information, accounting policies, and specific financial line items [1. General Information](index=19&type=section&id=1.%20General%20Information) Shenzhen iDriverPlus Technology Co., Ltd., established in 2014 and listed on the HKEX in 2024, primarily develops, manufactures, and sells intelligent driving solutions in China - The company was incorporated in Shenzhen on December 10, 2014, and restructured into a joint stock company on June 7, 2023[54](index=54&type=chunk) - The company successfully listed on the Main Board of the Stock Exchange of Hong Kong on December 27, 2024[55](index=55&type=chunk) - The Group is primarily engaged in the development, manufacturing, and sale of intelligent driving products and solutions in China[54](index=54&type=chunk) [2. Basis of Preparation and Changes in Accounting Policies](index=19&type=section&id=2.%20Basis%20of%20Preparation%20and%20Changes%20in%20Accounting%20Policies) The condensed consolidated interim financial information is prepared under IAS 34, with no significant impact from new or amended standards adopted during the period - The condensed consolidated interim financial information is prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting"[58](index=58&type=chunk) - New and amended standards adopted during the reporting period (e.g., amendments to IAS 21) had no significant impact on the Group's financial position or operating results[60](index=60&type=chunk) - New or amended accounting standards issued but not yet effective (e.g., IFRS 18, IFRS 19) are not expected to have a significant impact on the Group's financial performance and position[60](index=60&type=chunk) [5. Revenue and Segment Information](index=21&type=section&id=5.%20Revenue%20and%20Segment%20Information) The Group operates as a single segment, primarily generating revenue from product sales (**RMB 225,195 thousand**) and service/vehicle-road coordination (**RMB 115,580 thousand**) in China - The Group considers its business as a single operating segment, with its primary market and revenue sources originating from mainland China[61](index=61&type=chunk)[62](index=62&type=chunk) Revenue by Type (RMB thousands) | Revenue Type (RMB thousands) | H1 2025 (Unaudited) | H1 2024 (Audited) | | :--- | :--- | :--- | | Product Sales | 225,195 | 199,958 | | Services and Vehicle-Road Coordination | 115,580 | 36,487 | | Others | 4,944 | 230 | | **Total** | **345,719** | **236,675** | [4. Expenses by Nature](index=22&type=section&id=4.%20Expenses%20by%20Nature) Total expenses increased to **RMB 501,396 thousand**, driven by higher raw materials, employee benefits, service fees, and share-based payment expenses Expenses by Nature (RMB thousands) | Expense Type (RMB thousands) | H1 2025 (Unaudited) | H1 2024 (Audited) | | :--- | :--- | :--- | | Raw Materials and Consumables Used | 261,441 | 160,660 | | Employee Benefit Expenses | 111,818 | 86,751 | | Service Fees | 53,248 | 18,940 | | Share-based Payment Expenses | 19,737 | 15,311 | | Office and Travel Expenses | 13,108 | 7,562 | | Depreciation and Amortization | 8,387 | 7,121 | | Advertising and Promotion Expenses | 5,379 | 1,029 | | Inventory Impairment Provision | 2,247 | 9,119 | | Listing Expenses | – | 14,298 | | **Total** | **501,396** | **348,775** | [5. Other Income](index=22&type=section&id=5.%20Other%20Income) Other income, primarily government grants and VAT refunds, totaled **RMB 8,362 thousand** during the period, representing a **33.6%** year-on-year increase Other Income (RMB thousands) | Income Type (RMB thousands) | H1 2025 (Unaudited) | H1 2024 (Audited) | | :--- | :--- | :--- | | Government Grants | 4,729 | 3,214 | | VAT Refunds | 3,633 | 3,045 | | **Total** | **8,362** | **6,259** | [6. Other (Losses) / Gains, Net](index=23&type=section&id=6.%20Other%20(Losses)%20%2F%20Gains%2C%20Net) Other gains, net, shifted from a **RMB 2,501 thousand** gain in the prior year to a **RMB 5,138 thousand** loss, primarily due to a significant increase in net foreign exchange losses Other (Losses) / Gains, Net (RMB thousands) | Indicator (RMB thousands) | H1 2025 (Unaudited) | H1 2024 (Audited) | | :--- | :--- | :--- | | Net Fair Value Gains on Financial Assets | 3,545 | 2,385 | | Net Foreign Exchange Losses | (6,300) | (204) | | **Total** | **(5,138)** | **2,501** | [7. Net Finance Costs](index=23&type=section&id=7.%20Net%20Finance%20Costs) Net finance costs shifted from a **RMB 2,113 thousand** loss in the prior year to a **RMB 102 thousand** gain, primarily driven by a significant increase in interest income from bank deposits Net Finance Costs (RMB thousands) | Indicator (RMB thousands) | H1 2025 (Unaudited) | H1 2024 (Audited) | | :--- | :--- | :--- | | Interest Income from Bank Deposits | 5,092 | 1,606 | | Interest Expense on Bank Borrowings | (4,568) | (3,039) | | Interest Expense on Lease Liabilities | (422) | (743) | | **Net Finance Costs** | **102** | **(2,113)** | [8. Income Tax Expense](index=23&type=section&id=8.%20Income%20Tax%20Expense) Income tax expense for the period was zero, benefiting from preferential tax rates for high-tech and small low-profit enterprises, and R&D expense super deduction policies - Income tax expense for the reporting period was zero[69](index=69&type=chunk) - The company and its subsidiaries, such as Nanjing iDriverPlus Technology, have obtained High-Tech Enterprise qualifications, enjoying a preferential income tax rate of **15%**[70](index=70&type=chunk) - Certain mainland China subsidiaries qualify as "small low-profit enterprises," enjoying a preferential income tax rate of **20%** and benefiting from R&D expense super deduction policies[71](index=71&type=chunk) [9. Loss Per Share](index=24&type=section&id=9.%20Loss%20Per%20Share) Basic and diluted loss per share expanded to **RMB 0.38** from **RMB 0.31** in the prior year, with potential ordinary shares having an anti-dilutive effect due to the loss Loss Per Share (RMB yuan) | Indicator | H1 2025 (Unaudited) | H1 2024 (Audited) | | :--- | :--- | :--- | | Loss Attributable to Owners of the Company (RMB thousands) | (151,558) | (108,135) | | Weighted Average Number of Ordinary Shares in Issue (thousands) | 399,858 | 351,277 | | **Basic and Diluted Loss Per Share (RMB yuan)** | **(0.38)** | **(0.31)** | - As the Group incurred losses for the six months ended June 30, 2025, and 2024, the inclusion of any potential ordinary shares in the calculation of diluted loss per share would have an anti-dilutive effect; therefore, diluted loss per share is the same as basic loss per share for each period[74](index=74&type=chunk) [10. Inventories](index=25&type=section&id=10.%20Inventories) Total inventories amounted to **RMB 140,666 thousand**, with a net value of **RMB 121,913 thousand** after inventory provision, a slight decrease from year-end 2024 Inventories (RMB thousands) | Inventory Type (RMB thousands) | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Raw Materials | 54,685 | 62,364 | | Work-in-Progress | 13,275 | 9,990 | | Finished Goods | 45,924 | 45,508 | | Contract Fulfillment Costs | 26,782 | 22,936 | | **Total** | **140,666** | **140,798** | | Less: Provision for Inventories | (18,753) | (16,637) | | **Net Value** | **121,913** | **124,161** | [11. Trade and Bills Receivables](index=25&type=section&id=11.%20Trade%20and%20Bills%20Receivables) Net trade and bills receivables totaled **RMB 505,177 thousand**, largely consistent with year-end 2024, including **RMB 517,027 thousand** due from third parties Trade and Bills Receivables (RMB thousands) | Indicator (RMB thousands) | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Bills Receivable | 22,867 | 49,681 | | Trade Receivables (Due from Third Parties) | 517,027 | 489,779 | | Less: Provision for Credit Losses | (34,717) | (32,970) | | **Net Amount** | **505,177** | **506,490** | Ageing Analysis of Trade Receivables (RMB thousands) | Ageing (RMB thousands) | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Within 1 year | 434,145 | 459,444 | | 1 to 2 years | 66,113 | 65,479 | | 2 to 3 years | 20,893 | 9,109 | | Over 3 years | 18,743 | 5,428 | | **Total** | **539,894** | **539,460** | [12. Borrowings](index=26&type=section&id=12.%20Borrowings) Total borrowings significantly increased to **RMB 289,154 thousand** (non-current **RMB 64,100 thousand**, current **RMB 225,054 thousand**) from **RMB 191,508 thousand** at year-end 2024, primarily for business expansion Borrowings (RMB thousands) | Borrowing Type (RMB thousands) | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | **Non-current Liabilities** | | | | Bank Borrowings (Unsecured and Unguaranteed) | 68,100 | 53,500 | | Bank Borrowings (Unsecured but Guaranteed) | 33,362 | 39,796 | | Less: Long-term Borrowings Due Within One Year | (37,362) | (61,196) | | **Total Non-current Borrowings** | **64,100** | **32,100** | | **Current Liabilities** | | | | Long-term Borrowings Due Within One Year (Unsecured and Unguaranteed) | 4,000 | 21,400 | | Long-term Borrowings Due Within One Year (Unsecured but Guaranteed) | 33,362 | 39,796 | | Bank Borrowings (Unsecured and Unguaranteed) | 157,692 | 78,212 | | Bank Borrowings (Unsecured but Pledged) | 30,000 | 20,000 | | **Total Current Borrowings** | **225,054** | **159,408** | | **Total Borrowings** | **289,154** | **191,508** | - As of June 30, 2025, the effective annual interest rate for guaranteed long-term loans ranged from **3.45%** to **3.5%**, and the annualized interest rate for short-term loans was **3.9%**, secured by certain non-core patents[76](index=76&type=chunk) [13. Trade Payables](index=27&type=section&id=13.%20Trade%20Payables) Trade payables amounted to **RMB 186,775 thousand**, primarily for raw material purchases, representing a decrease from year-end 2024 Trade Payables Ageing Analysis (RMB thousands) | Ageing (RMB thousands) | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Within 1 year | 159,426 | 181,829 | | 1 to 2 years | 7,636 | 23,787 | | Over 2 years | 19,713 | 20,725 | | **Total** | **186,775** | **226,341** | [14. Other Payables and Accruals](index=27&type=section&id=14.%20Other%20Payables%20and%20Accruals) Total other payables and accruals were **RMB 68,359 thousand**, mainly comprising wages and welfare payables, warranty provisions, and payables for long-term assets Other Payables and Accruals (RMB thousands) | Type (RMB thousands) | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Wages and Welfare Payables | 23,541 | 22,860 | | Warranty Provisions | 15,480 | 13,292 | | Accrued Listing Expenses | – | 16,654 | | Payables for Long-term Assets | 9,246 | 10,801 | | **Total** | **68,359** | **80,854** | [15. Dividends](index=27&type=section&id=15.%20Dividends) For the six months ended June 30, 2025, the company neither paid, declared, nor proposed any dividends, and the Board does not recommend an interim dividend - For the six months ended June 30, 2025, the company neither paid, declared, nor proposed any dividends[79](index=79&type=chunk)[81](index=81&type=chunk) [Events After the Reporting Period](index=28&type=section&id=Events%20After%20the%20Reporting%20Period) Key events after the reporting period include a share placement agreement with CITIC CLSA and resolutions passed at an EGM regarding auditor appointment and charter amendments - On July 2, 2025, the company entered into a placing agreement with CITIC CLSA to place up to **6,800,000** new shares at **HKD 23.26** per share, representing approximately **1.67%** of the enlarged issued shares[83](index=83&type=chunk) - On August 13, 2025, the company held an extraordinary general meeting, passing resolutions to appoint Rongcheng (Hong Kong) Certified Public Accountants as auditor and to amend the company's articles of association[84](index=84&type=chunk) [Corporate Governance](index=29&type=section&id=Corporate%20Governance) The company adheres to corporate governance principles, including compliance with the Corporate Governance Code and Model Code for securities transactions [Compliance with Corporate Governance Code](index=29&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The company complied with all applicable Corporate Governance Code provisions, with the Chairman and CEO roles concurrently held by Dr. Liu Guoqing, an arrangement deemed beneficial - The company has adopted corporate governance practices based on the principles and code provisions set out in the Corporate Governance Code and complied with all applicable code provisions during the reporting period[85](index=85&type=chunk) - The roles of Chairman and Chief Executive Officer are concurrently held by Dr. Liu Guoqing, deviating from Code Provision C.2.1, an arrangement the Board considers appropriate and beneficial to the company's business development and prospects[86](index=86&type=chunk) [Compliance with Model Code](index=30&type=section&id=Compliance%20with%20Model%20Code) The company adopted the Model Code for securities transactions by directors, supervisors, and employees with inside information, with all confirming compliance during the period - The company has adopted the Model Code as a code of conduct for securities transactions by its directors, supervisors, and employees with inside information regarding the Group or the company's securities[87](index=87&type=chunk) - All directors and supervisors confirmed that they have complied with the provisions of the Model Code during the reporting period[87](index=87&type=chunk) [Review of Interim Financial Information](index=30&type=section&id=Review%20of%20Interim%20Financial%20Information) The Group's unaudited condensed consolidated interim financial statements for H1 2025 have been reviewed by the company's Audit Committee - The Group's condensed consolidated interim financial statements for the six months ended June 30, 2025, are unaudited but have been reviewed by the company's Audit Committee[88](index=88&type=chunk) [Audit Committee](index=30&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors, reviewed the unaudited interim financial statements and deemed them compliant with applicable standards - The Audit Committee currently comprises Dr. Xiang Yang, Mr. Tan Kaiguo, and Dr. Tan Mingkui, all independent non-executive directors, with Mr. Tan Kaiguo serving as Chairman of the Audit Committee[89](index=89&type=chunk) - The Audit Committee has reviewed the Group's unaudited condensed interim consolidated financial statements for the reporting period and considers them to be prepared in accordance with applicable accounting standards, rules, and regulations, with appropriate disclosures made[89](index=89&type=chunk) [Publication of Interim Report](index=30&type=section&id=Publication%20of%20Interim%20Report) This interim results announcement has been published on the HKEX and the company's website, with the interim report to be published in due course - This interim results announcement has been published on the HKEX website and the company's website[90](index=90&type=chunk) - The company's interim report for the six months ended June 30, 2025, will be published on the HKEX and the company's aforementioned website in due course[90](index=90&type=chunk) [Definitions](index=31&type=section&id=Definitions) This section provides definitions for key terms used throughout the report, including "the Group," "H Shares," "AI," "Board," and "IFRS" - This section provides definitions for key terms used in the report, including "the Group," "H Shares," "Artificial Intelligence," "Board," and "International Financial Reporting Standards"[91](index=91&type=chunk)[92](index=92&type=chunk)[93](index=93&type=chunk)[94](index=94&type=chunk)[95](index=95&type=chunk)

Financial Highlights [Financial Highlights](index=1&type=section&id=Financial%20Highlights) For the six months ended June 30, 2025, Lushang Life Services Co., Ltd. saw revenue decline by 4.8% to **RMB 293.8 million** and net profit decrease by 27.1% to **RMB 16.0 million**, despite a gross profit margin increase from 19.6% to 21.1% Financial Performance Summary | Metric | June 30, 2025 (RMB thousands) | June 30, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 293,850 | 308,549 | -4.8% | | Gross Profit | 62,058 | 60,455 | +2.7% | | Gross Profit Margin | 21.1% | 19.6% | +1.5pp | | Profit Before Tax | 21,266 | 28,897 | -26.4% | | Net Profit | 15,989 | 21,928 | -27.1% | | Net Profit Attributable to Owners of the Parent | 16,034 | 21,667 | -26.0% | | Basic Earnings Per Share (RMB) | 0.12 | 0.16 | -25.0% | | GFA Under Management (million sq.m.) | 23.1 | 23.5 | -1.7% | | Contracted GFA (million sq.m.) | 26.0 | 26.8 | -3.0% | - The Board resolved not to declare an interim dividend for the period[5](index=5&type=chunk) Interim Condensed Consolidated Financial Statements [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&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 4.8% to **RMB 294 million**, with operating costs, taxes, and finance costs declining, while administrative and R&D expenses increased, and credit impairment losses significantly rose, leading to a substantial drop in operating profit and net profit Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Item | June 30, 2025 (RMB) | June 30, 2024 (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 293,849,628.79 | 308,549,283.42 | -4.8% | | Cost of Sales | 231,791,940.13 | 248,094,201.19 | -6.6% | | Administrative Expenses | 24,747,828.25 | 23,572,203.44 | +5.0% | | Research and Development Expenses | 3,530,783.29 | 2,463,604.88 | +43.3% | | Finance Costs | -2,589,553.45 | -2,289,369.13 | +13.1% (decrease in expenses) | | Credit Impairment Losses | -13,627,852.13 | -7,158,903.19 | +90.4% (increase in losses) | | Operating Profit | 21,361,288.69 | 27,486,579.91 | -22.3% | | Profit Before Tax | 21,265,760.31 | 28,896,622.78 | -26.4% | | Net Profit | 15,988,719.39 | 21,928,273.60 | -27.1% | | Net Profit Attributable to Owners of the Parent | 16,034,324.40 | 21,666,723.76 | -26.0% | | Basic Earnings Per Share | 0.12 | 0.16 | -25.0% | [Interim Condensed Consolidated Statement of Financial Position](index=5&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets decreased by 2.4% to **RMB 907 million**, with current assets remaining dominant but cash, bills receivable, and contract assets declining, while accounts receivable, other receivables, and inventories increased; total liabilities decreased by 6.6% mainly due to lower accounts payable and contract liabilities, with shareholder equity remaining stable and the gearing ratio improving Interim Condensed Consolidated Statement of Financial Position | Item | June 30, 2025 (RMB) | December 31, 2024 (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Total Current Assets | 801,752,795.82 | 825,295,747.75 | -2.8% | | Cash and Cash Equivalents | 397,758,342.49 | 426,558,420.34 | -6.8% | | Bills Receivable | 34,656,861.39 | 46,441,738.61 | -25.4% | | Accounts Receivable | 295,358,344.98 | 276,364,740.99 | +6.9% | | Contract Assets | 58,274,162.74 | 61,756,374.04 | -5.7% | | Total Non-current Assets | 105,158,383.93 | 103,796,917.18 | +1.3% | | Total Assets | 906,911,179.75 | 929,092,664.93 | -2.4% | | **Liabilities and Equity** | | | | | Total Current Liabilities | 336,493,467.36 | 360,262,951.93 | -6.6% | | Accounts Payable | 152,433,363.87 | 165,827,631.03 | -8.1% | | Contract Liabilities | 67,473,120.52 | 80,569,022.21 | -16.3% | | Total Liabilities | 336,493,467.36 | 360,262,951.93 | -6.6% | | Total Equity Attributable to Owners of the Parent | 566,480,594.13 | 564,846,989.73 | +0.3% | | Total Equity | 570,417,712.39 | 568,829,713.00 | +0.3% | | Total Liabilities and Equity | 906,911,179.75 | 929,092,664.93 | -2.4% | Notes to the Interim Condensed Consolidated Financial Statements [Company Information](index=9&type=section&id=Company%20Information) Lushang Life Services Co., Ltd., established in China in 2006 and listed on the HKEX Main Board in July 2022, primarily provides property management, value-added services to property owners, and value-added services to non-property owners in China, with Lushang Furida Pharmaceutical Co., Ltd. as its direct parent and Shandong Commercial Group Co., Ltd. as its ultimate parent - The company was established in China on March 24, 2006, and converted into a joint stock company on March 12, 2021[14](index=14&type=chunk) - The company's H shares were listed on the Main Board of the Hong Kong Stock Exchange on July 8, 2022[15](index=15&type=chunk) - The Group is principally engaged in providing property management services, value-added services to property owners, and value-added services to non-property owners in China[14](index=14&type=chunk) [Summary of Significant Accounting Policies](index=9&type=section&id=Summary%20of%20Significant%20Accounting%20Policies) The company has changed its financial statement preparation basis from IFRS to China Accounting Standards for Business Enterprises since the interim report for the six months ended June 30, 2023, and these financial statements are prepared under the going concern assumption - Since the interim report for the six months ended June 30, 2023, the company has prepared its financial statements in accordance with China Accounting Standards for Business Enterprises to improve efficiency and reduce costs[17](index=17&type=chunk)[18](index=18&type=chunk) - These financial statements are prepared on a going concern basis, with no matters or circumstances identified that would cast significant doubt on the company's ability to continue as a going concern[19](index=19&type=chunk) [Details of Notes](index=10&type=section&id=Details%20of%20Notes) This section details the composition, changes, and bad debt provisions for the company's assets, liabilities, and equity accounts, along with specifics on revenue, costs, income tax expense, and earnings per share, noting decreases in bills receivable and contract assets, increases in accounts receivable and inventories, reductions in accounts payable and contract liabilities, and an increase in other payables, alongside declines in revenue, costs, income tax expense, and earnings per share [3 Bills Receivable](index=10&type=section&id=3%20Bills%20Receivable) As of June 30, 2025, the carrying amount of bills receivable was **RMB 34.66 million**, a 25.4% decrease from **RMB 46.44 million** as of December 31, 2024, primarily comprising related party and aging portfolios Bills Receivable | Category | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Carrying amount of Bills Receivable | 34,656,861.39 | 46,441,738.61 | | Of which: Related Party Portfolio | 31,238,500.05 | 40,153,712.46 | | Aging Portfolio | 3,203,788.45 | 6,288,026.15 | [4 Accounts Receivable](index=11&type=section&id=4%20Accounts%20Receivable) As of June 30, 2025, the carrying amount of accounts receivable was **RMB 295.36 million**, a 6.9% increase from **RMB 276.36 million** as of December 31, 2024, with the provision for bad debts ratio rising from 9.70% to 12.80% Accounts Receivable | Category | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Carrying amount of Accounts Receivable | 295,358,344.98 | 276,364,740.99 | | Provision for Bad Debts Ratio | 12.80% | 9.70% | | Of which: Aging Portfolio | 180,775,699.95 | 145,739,659.44 | | Related Party Portfolio | 114,582,645.03 | 130,625,081.55 | - As of June 30, 2025, the aging portfolio of accounts receivable showed the highest proportion within 1 year, totaling **RMB 210 million**[22](index=22&type=chunk) [5 Contract Assets](index=11&type=section&id=5%20Contract%20Assets) As of June 30, 2025, the carrying amount of contract assets was **RMB 58.27 million**, a 5.7% decrease from **RMB 61.76 million** as of December 31, 2024, primarily due to reductions in contract assets for landscape greening and fine decoration projects Contract Assets | Item | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Carrying amount of Contract Assets | 58,274,162.74 | 61,756,374.04 | | Of which: Landscape Greening Projects | 36,312,508.53 | 37,287,909.42 | | Design Services | 9,671,019.60 | 6,746,784.79 | | Fine Decoration Projects | 12,290,634.61 | 17,721,679.83 | [6 Property, Plant and Equipment](index=12&type=section&id=6%20Property%2C%20Plant%20and%20Equipment) As of June 30, 2025, the carrying amount of property, plant and equipment was **RMB 49.03 million**, a slight increase of 0.6% from **RMB 48.74 million** as of December 31, 2024, with additions to original cost of **RMB 3.35 million** and accumulated depreciation increasing by **RMB 3.04 million** during the period Property, Plant and Equipment | Item | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Carrying amount of Property, Plant and Equipment | 49,025,988.42 | 48,738,575.11 | | Original Cost, Period-end Balance | 77,779,384.61 | 74,956,549.17 | | Accumulated Depreciation, Period-end Balance | 28,753,396.19 | 26,217,974.06 | [7 Accounts Payable](index=13&type=section&id=7%20Accounts%20Payable) As of June 30, 2025, total accounts payable amounted to **RMB 152.43 million**, an 8.1% decrease from **RMB 165.83 million** as of December 31, 2024, primarily due to reductions in payables for project costs and other items Accounts Payable | Item | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Total Accounts Payable | 152,433,363.87 | 165,827,631.03 | | Of which: Payables for Engineering Projects | 75,560,742.63 | 72,234,232.98 | | Payables for Project Costs | 65,443,902.52 | 83,817,728.39 | - Accounts payable with an aging of less than 1 year accounted for the highest proportion, totaling **RMB 105 million**[26](index=26&type=chunk) [8 Contract Liabilities](index=13&type=section&id=8%20Contract%20Liabilities) As of June 30, 2025, total contract liabilities amounted to **RMB 67.47 million**, a 16.3% decrease from **RMB 80.57 million** as of December 31, 2024, mainly due to a reduction in property management fee contract liabilities Contract Liabilities | Item | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Total Contract Liabilities | 67,473,120.52 | 80,569,022.21 | | Of which: Property Management Fees | 58,469,712.36 | 79,092,601.23 | | Value-added Services to Property Owners | 9,003,408.16 | 1,476,420.98 | [9 Other Payables](index=14&type=section&id=9%20Other%20Payables) As of June 30, 2025, other payables by nature amounted to **RMB 51.55 million**, a 4.2% increase from **RMB 49.45 million** as of December 31, 2024, primarily due to increases in deposits and guarantees, and entrusted funds Other Payables | Nature of Payment | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Total Other Payables | 51,545,137.87 | 49,454,437.43 | | Of which: Deposits and Guarantees | 30,014,908.38 | 28,084,358.15 | | Entrusted Funds | 9,422,820.36 | 8,553,839.88 | [10 Share Capital, 11 Capital Reserve, 12 Surplus Reserve](index=14&type=section&id=10%20Share%20Capital%2C%2011%20Capital%20Reserve%2C%2012%20Surplus%20Reserve) As of June 30, 2025, the company's share capital, capital reserve, and surplus reserve remained stable with no changes Share Capital, Capital Reserve, Surplus Reserve | Item | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Share Capital | 133,340,000.00 | 133,340,000.00 | | Capital Reserve | 213,924,223.38 | 213,924,223.38 | | Surplus Reserve | 16,964,526.57 | 16,964,526.57 | [13 Revenue, Cost of Sales](index=15&type=section&id=13%20Revenue%2C%20Cost%20of%20Sales) For the six months ended June 30, 2025, the company's total revenue was **RMB 294 million** and total cost of sales was **RMB 232 million**, both decreasing year-on-year, with property management services revenue increasing while value-added services to non-property owners and value-added services to property owners revenue declined Revenue and Cost of Sales | Item | January-June 2025 (RMB) | January-June 2024 (RMB) | | :--- | :--- | :--- | | Total Revenue | 293,849,628.79 | 308,549,283.42 | | Total Cost of Sales | 231,791,940.13 | 248,094,201.19 | | Property Management Services Revenue | 182,327,043.76 | 165,518,934.84 | | Value-added Services to Non-Property Owners Revenue | 47,129,630.01 | 75,737,995.23 | | Value-added Services to Property Owners Revenue | 64,392,955.02 | 67,292,353.35 | [14 Income Tax Expense](index=16&type=section&id=14%20Income%20Tax%20Expense) For the six months ended June 30, 2025, income tax expense was **RMB 5.28 million**, a 24.3% decrease from **RMB 6.97 million** in the same period of 2024, primarily due to a reduction in current income tax and an increase in deferred income tax expense Income Tax Expense | Item | January-June 2025 (RMB) | January-June 2024 (RMB) | | :--- | :--- | :--- | | Total Income Tax Expense | 5,277,040.92 | 6,968,349.18 | | China Mainland Corporate Income Tax | 7,723,040.29 | 8,072,056.63 | | Deferred Income Tax Expense | -2,445,999.37 | -1,103,707.45 | - The Group had no assessable income in Hong Kong during the year, hence no Hong Kong income tax[32](index=32&type=chunk) [15 Return on Equity and Earnings Per Share](index=16&type=section&id=15%20Return%20on%20Equity%20and%20Earnings%20Per%20Share) As of June 30, 2025, the return on equity attributable to ordinary shareholders of the parent company was 2.81%, with both basic and diluted earnings per share at **RMB 0.12** Return on Equity and Earnings Per Share | Item | Return on Equity (%) | Basic Earnings Per Share (RMB) | Diluted Earnings Per Share (RMB) | | :--- | :--- | :--- | :--- | | Net Profit Attributable to Ordinary Shareholders of the Parent | 2.81 | 0.12 | 0.12 | | Net Profit Attributable to Ordinary Shareholders of the Parent (Excluding Non-recurring Items) | 2.81 | 0.12 | 0.12 | Management Discussion and Analysis [Business Review](index=17&type=section&id=Business%20Review) As a leading integrated property management service provider in Shandong Province, the company managed 100 projects with a total GFA under management of **23.1 million sq.m.** as of June 30, 2025, a 1.7% year-on-year decrease, with revenue primarily derived from property management services, value-added services to non-property owners, and value-added services to property owners, where property management services revenue grew while the other two declined - As of June 30, 2025, the Group managed 100 projects, with a total GFA under management of **23.1 million sq.m.**, a 1.7% decrease compared to June 30, 2024[34](index=34&type=chunk) - The company's business scope covers almost all prefecture-level cities in Shandong Province, as well as Beijing and Harbin, with Shandong Province being a strategic development focus[34](index=34&type=chunk) - Revenue is primarily derived from three service lines: property management services, value-added services to non-property owners, and value-added services to property owners[35](index=35&type=chunk) [Property Management Services](index=18&type=section&id=Property%20Management%20Services) Property management services revenue accounted for approximately 62.1% of total revenue, reaching **RMB 182.3 million** for the period, a 10.2% year-on-year increase, primarily driven by optimizing project portfolio and strategically expanding integrated complex businesses, with GFA under management from related parties increasing and third-party GFA under management decreasing due to the exit of low-profit projects Property Management Services Revenue and GFA Under Management | Item | June 30, 2025 (RMB thousands) | June 30, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Property Management Services Revenue | 182,327 | 165,519 | +10.2% | | Proportion of Total Revenue | 62.1% | 53.6% | +8.5pp | | Related Party GFA Under Management (thousand sq.m.) | 16,461 | 15,691 | +4.9% | | Third-Party GFA Under Management (thousand sq.m.) | 6,614 | 7,818 | -15.4% | | Total GFA Under Management (thousand sq.m.) | 23,075 | 23,509 | -1.8% | - The decrease in third-party GFA under management was mainly due to the company exiting some low-profit resettlement housing projects[37](index=37&type=chunk) - The company provides property management for a diversified property portfolio, including residential and non-residential properties, contributing to diversified revenue sources[40](index=40&type=chunk) [Value-added Services to Non-Property Owners](index=20&type=section&id=Value-added%20Services%20to%20Non-Property%20Owners) Value-added services to non-property owners revenue accounted for approximately 16.0% of total revenue, reaching **RMB 47.1 million** for the period, a 37.8% year-on-year decrease, primarily due to reduced pre-delivery services revenue amid a sluggish real estate market and decreased landscape beautification services revenue following the disposal of a subsidiary (Chengfa Decoration) Value-added Services to Non-Property Owners Revenue | Service Type | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total Value-added Services to Non-Property Owners Revenue | 47,130 | 75,738 | -37.8% | | Design Services | 18,973 | 17,188 | +10.4% | | Landscape Beautification Services | 20,993 | 49,994 | -58.0% | | Early-stage Property Management Services | 5,433 | 5,983 | -9.2% | | Pre-delivery Services | 1,073 | 1,641 | -34.6% | - The decrease in revenue was mainly due to reduced pre-delivery services revenue caused by the sluggish real estate market, and decreased landscape beautification services revenue due to the disposal of a subsidiary (Chengfa Decoration)[41](index=41&type=chunk) [Value-added Services to Property Owners](index=21&type=section&id=Value-added%20Services%20to%20Property%20Owners) Value-added services to property owners revenue accounted for approximately 21.9% of total revenue, reaching **RMB 64.4 million** for the period, a 4.3% year-on-year decrease, primarily due to a reduction in community living services asset disposal business, with parking space management services revenue increasing while community living services revenue declined Value-added Services to Property Owners Revenue | Service Type | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total Value-added Services to Property Owners Revenue | 64,393 | 67,292 | -4.3% | | Parking Space Management Services | 21,907 | 18,757 | +16.8% | | Community Living Services | 23,771 | 29,292 | -18.8% | | Water and Electricity Management Services | 15,244 | 14,439 | +5.6% | - The decrease in revenue was mainly due to a reduction in community living services asset disposal business[44](index=44&type=chunk) [Financial Review](index=22&type=section&id=Financial%20Review) During the period, the company's total revenue decreased by 4.8% year-on-year, primarily impacted by a significant decline in value-added services to non-property owners revenue; while cost of sales decreased with revenue, gross profit margin improved, but increased administrative and R&D expenses led to a 27.1% year-on-year decrease in profit for the period [Revenue](index=22&type=section&id=Revenue) Total revenue for the period was **RMB 293.8 million**, a 4.8% year-on-year decrease, primarily due to a 37.8% reduction in value-added services to non-property owners revenue and a 4.3% reduction in value-added services to property owners revenue, while property management services revenue increased by 10.2% Revenue by Service Line | Service Line | 2025 (RMB thousands) | 2024 (RMB thousands) | Growth Rate (%) | | :--- | :--- | :--- | :--- | | Property Management Services | 182,327 | 165,519 | +10.2% | | Value-added Services to Non-Property Owners | 47,130 | 75,738 | -37.8% | | Value-added Services to Property Owners | 64,393 | 67,292 | -4.3% | | Total | 293,850 | 308,549 | -4.8% | - The decrease in value-added services to non-property owners revenue was mainly due to reduced pre-delivery services revenue caused by the sluggish real estate market, and decreased landscape beautification services revenue due to the disposal of Chengfa Decoration[46](index=46&type=chunk) - The increase in property management services revenue was mainly due to optimizing the project portfolio and strategically expanding integrated complex businesses[47](index=47&type=chunk) [Cost of Sales](index=23&type=section&id=Cost%20of%20Sales) Cost of sales for the period was approximately **RMB 231.8 million**, a 6.6% year-on-year decrease, primarily due to reduced pre-delivery services costs amid a sluggish real estate market and decreased landscape beautification services costs following the disposal of Chengfa Decoration Cost of Sales | Item | 2025 (RMB millions) | 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Cost of Sales | 231.8 | 248.1 | -6.6% | - The decrease in cost of sales was mainly due to reduced pre-delivery services costs caused by the sluggish real estate market, and decreased landscape beautification services costs due to the disposal of Chengfa Decoration[48](index=48&type=chunk) [Gross Profit and Gross Profit Margin](index=23&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) Gross profit for the period was approximately **RMB 62.1 million**, a 2.7% year-on-year increase, with the gross profit margin improving from 19.6% to 21.1%, notably with a significant rise in value-added services to non-property owners gross profit margin, while property management services gross profit margin slightly declined due to the expansion of integrated complex businesses Gross Profit and Gross Profit Margin by Service Type | Service Type | 2025 Gross Profit (RMB thousands) | 2025 Gross Profit Margin (%) | 2024 Gross Profit (RMB thousands) | 2024 Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | :--- | | Property Management Services | 33,547 | 18.4 | 32,202 | 19.5 | | Value-added Services to Non-Property Owners | 11,871 | 25.2 | 10,737 | 14.1 | | Value-added Services to Property Owners | 16,639 | 25.8 | 17,516 | 26.0 | | Total | 62,058 | 21.1 | 60,455 | 19.6 | - The increase in gross profit margin for value-added services to non-property owners was mainly due to increased revenue from high-margin design services and decreased revenue from low-margin landscape beautification services[50](index=50&type=chunk) - The decline in property management services gross profit margin was mainly due to the relatively lower gross profit margin of integrated complex businesses expanded during the period[50](index=50&type=chunk) [Administrative and Research and Development Expenses](index=24&type=section&id=Administrative%20and%20Research%20and%20Development%20Expenses) Administrative and research and development expenses for the period were approximately **RMB 28.3 million**, an 8.8% year-on-year increase, primarily due to higher administrative costs incurred to enhance management quality and expand external business Administrative and Research and Development Expenses | Item | 2025 (RMB millions) | 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Administrative and Research and Development Expenses | 28.3 | 26.0 | +8.8% | - The increase in expenses was mainly due to higher administrative costs incurred to enhance management quality and expand external business[51](index=51&type=chunk) [Profit for the Period](index=24&type=section&id=Profit%20for%20the%20Period) Profit for the period was approximately **RMB 16.0 million**, a 27.1% year-on-year decrease Profit for the Period | Item | 2025 (RMB millions) | 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Profit for the Period | 16.0 | 21.9 | -27.1% | [Liquidity and Capital Resources](index=25&type=section&id=Liquidity%20and%20Capital%20Resources) The company's total current assets slightly decreased, but its current ratio remained robust; trade receivables increased while trade payables decreased, and cash and cash equivalents declined primarily due to increased operational investments, with the gearing ratio improving and financial position remaining sound - The company's primary source of liquidity is cash flow from operations, and it adopts a prudent capital management policy[59](index=59&type=chunk) [Current Assets](index=25&type=section&id=Current%20Assets) As of June 30, 2025, current assets were approximately **RMB 801.8 million**, a 2.8% decrease from **RMB 825.3 million** as of December 31, 2024, with the current ratio improving to approximately **2.4 times** from **2.3 times** at the end of 2024 Current Assets and Current Ratio | Item | June 30, 2025 (RMB millions) | December 31, 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Current Assets | 801.8 | 825.3 | -2.8% | | Current Ratio | 2.4 times | 2.3 times | +0.1 times | [Property, Plant and Equipment, Right-of-Use Assets](index=25&type=section&id=Property%2C%20Plant%20and%20Equipment%2C%20Right-of-Use%20Assets) As of June 30, 2025, property, plant and equipment and right-of-use assets were approximately **RMB 49.6 million**, a slight decrease of **RMB 0.1 million** from **RMB 49.7 million** as of December 31, 2024, primarily due to depreciation during the period Property, Plant and Equipment, Right-of-Use Assets | Item | June 30, 2025 (RMB millions) | December 31, 2024 (RMB millions) | Change (RMB millions) | | :--- | :--- | :--- | :--- | | Property, Plant and Equipment, Right-of-Use Assets | 49.6 | 49.7 | -0.1 | [Trade and Bills Receivable](index=25&type=section&id=Trade%20and%20Bills%20Receivable) As of June 30, 2025, trade and bills receivable amounted to approximately **RMB 330.1 million**, an increase of **RMB 7.3 million** from **RMB 322.8 million** as of December 31, 2024, primarily due to the growth in property business scale and property owners' payment habits Trade and Bills Receivable | Item | June 30, 2025 (RMB millions) | December 31, 2024 (RMB millions) | Change (RMB millions) | | :--- | :--- | :--- | :--- | | Trade and Bills Receivable | 330.1 | 322.8 | +7.3 | - The increase was mainly due to the natural increase in accounts receivable resulting from the growth in property business scale and property owners' payment habits[55](index=55&type=chunk) [Prepayments and Other Receivables](index=25&type=section&id=Prepayments%20and%20Other%20Receivables) As of June 30, 2025, prepayments and other receivables amounted to approximately **RMB 7.0 million**, an increase of **RMB 0.5 million** from **RMB 6.5 million** as of December 31, 2024, primarily due to an increase in deposits received as the catering business expanded Prepayments and Other Receivables | Item | June 30, 2025 (RMB millions) | December 31, 2024 (RMB millions) | Change (RMB millions) | | :--- | :--- | :--- | :--- | | Prepayments and Other Receivables | 7.0 | 6.5 | +0.5 | - The increase was mainly due to an increase in deposits received as the catering business expanded[56](index=56&type=chunk) [Trade Payables](index=26&type=section&id=Trade%20Payables) As of June 30, 2025, trade payables amounted to approximately **RMB 152.4 million**, a decrease of **RMB 13.4 million** from **RMB 165.8 million** as of December 31, 2024, primarily due to reductions in landscape beautification outsourcing fees and design outsourcing fees Trade Payables | Item | June 30, 2025 (RMB millions) | December 31, 2024 (RMB millions) | Change (RMB millions) | | :--- | :--- | :--- | :--- | | Trade Payables | 152.4 | 165.8 | -13.4 | - The decrease was mainly due to reductions in landscape beautification outsourcing fees and design outsourcing fees[57](index=57&type=chunk) [Other Payables](index=26&type=section&id=Other%20Payables) As of June 30, 2025, other payables amounted to approximately **RMB 95.2 million**, an increase of **RMB 11.0 million** from **RMB 84.2 million** as of December 31, 2024, primarily due to an increase in dividends payable Other Payables | Item | June 30, 2025 (RMB millions) | December 31, 2024 (RMB millions) | Change (RMB millions) | | :--- | :--- | :--- | :--- | | Other Payables | 95.2 | 84.2 | +11.0 | - The increase was mainly due to an increase in dividends payable within other payables[58](index=58&type=chunk) [Cash and Cash Equivalents](index=26&type=section&id=Cash%20and%20Cash%20Equivalents) As of June 30, 2025, cash and cash equivalents amounted to approximately **RMB 395.3 million**, a 7.0% year-on-year decrease, primarily due to increased investment in daily maintenance and upkeep of building facilities and equipment Cash and Cash Equivalents | Item | June 30, 2025 (RMB millions) | December 31, 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 395.3 | 425.2 | -7.0% | - The decrease was mainly due to increased investment in daily maintenance and upkeep of building facilities and equipment to enhance service quality during the period[60](index=60&type=chunk) [Interest-bearing Borrowings](index=27&type=section&id=Interest-bearing%20Borrowings) As of June 30, 2025, interest-bearing borrowings amounted to **RMB 8.01 million**, remaining unchanged from December 31, 2024, all bearing a fixed annual interest rate of 3.1% and maturing on March 17, 2026 Interest-bearing Borrowings | Item | June 30, 2025 (RMB millions) | December 31, 2024 (RMB millions) | | :--- | :--- | :--- | | Interest-bearing Borrowings | 8.01 | 8.01 | - Interest-bearing borrowings bear a fixed annual interest rate of 3.1% and are due on March 17, 2026[61](index=61&type=chunk) [Pledge of Assets](index=27&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the company had not pledged any assets - As of June 30, 2025, the company had not pledged any assets[62](index=62&type=chunk) [Gearing Ratio](index=27&type=section&id=Gearing%20Ratio) As of June 30, 2025, the gearing ratio was 37.1%, a decrease from 38.8% as of December 31, 2024 Gearing Ratio | Item | June 30, 2025 (%) | December 31, 2024 (%) | | :--- | :--- | :--- | | Gearing Ratio | 37.1% | 38.8% | [Material Investments, Acquisitions and Disposals](index=27&type=section&id=Material%20Investments%2C%20Acquisitions%20and%20Disposals) On March 21, 2025, the company entered into a capital increase agreement with an investor to inject **RMB 36,320,000.00** into Shandong Lan'an Landscape Engineering Co., Ltd.; upon completion of the capital increase, the target company ceased to be a subsidiary and became an associate of the company, with no other material investments, acquisitions, or disposals during the period - The company entered into a capital increase agreement with an investor to inject **RMB 36,320,000.00** into Shandong Lan'an Landscape Engineering Co., Ltd[64](index=64&type=chunk) - Upon completion of the capital increase, the investor and the company will own 51% and 49% respectively of the enlarged equity interest in the target company, which will cease to be a subsidiary and become an associate of the company[65](index=65&type=chunk) - The capital increase was completed on July 1, 2025[67](index=67&type=chunk) [Future Plans for Material Investments and Capital Assets](index=28&type=section&id=Future%20Plans%20for%20Material%20Investments%20and%20Capital%20Assets) During the period, the Group had no future plans for material investments or capital assets but will continue to identify new business development opportunities - The Group had no future plans for material investments or capital assets but will continue to identify new business development opportunities[68](index=68&type=chunk) [Contingent Liabilities and Commitments](index=28&type=section&id=Contingent%20Liabilities%20and%20Commitments) As of June 30, 2025, the company had no other outstanding guarantees or other material contingent liabilities - As of June 30, 2025, the company had no other outstanding guarantees or other material contingent liabilities[69](index=69&type=chunk) [Use of Proceeds from Listing and Foreign Exchange Risk](index=28&type=section&id=Use%20of%20Proceeds%20from%20Listing%20and%20Foreign%20Exchange%20Risk) The company's H shares were listed on July 8, 2022, with net proceeds of approximately **HKD 138 million** to be used as planned in the prospectus; the company conducts its business in RMB and has not adopted a foreign currency hedging policy but will continue to monitor foreign exchange risk - The company's H shares were listed on July 8, 2022, with net proceeds of approximately **HKD 138 million** to be used as planned in the prospectus[70](index=70&type=chunk) - The Group conducts its business in RMB and has not adopted any foreign currency hedging policy but will continue to monitor foreign exchange risk[71](index=71&type=chunk) [Employees and Remuneration Policy](index=29&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had 1,369 employees, a decrease from the end of 2024, and continues to optimize its remuneration incentive mechanism based on a "performance-based pay, excellent performance, excellent reward" principle, while advancing management structure reforms and talent development through various programs to enhance employee capabilities and talent reserves Employee Count | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Employees | 1,369 | 1,405 | - The company continues to optimize its remuneration incentive mechanism, based on a "star rating" system, linking performance to salary growth, and advancing management structure reforms[72](index=72&type=chunk) - In talent development, the company continues to upgrade its tiered and categorized training system, focusing on enhancing the capabilities of middle and senior management, reserve cadres, and new employees through "Head Goose Program," "Gold Casting Program," and "Spark Program"[73](index=73&type=chunk) [Events After Reporting Period](index=29&type=section&id=Events%20After%20Reporting%20Period) Except for the capital increase disclosed in this announcement, no other disclosable events that could significantly impact the Group's operations and financial performance occurred between June 30, 2025, and the date of this announcement - Except for those disclosed in this announcement, no other disclosable events that could significantly impact the Group's operations and financial performance occurred between June 30, 2025, and the date of this announcement[74](index=74&type=chunk) Other Information [Compliance with Corporate Governance Code](index=30&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The Group has adopted and complied with the code provisions set out in Part 2 of Appendix C1 to the Listing Rules of the Stock Exchange - The Group has adopted and complied with the code provisions set out in Part 2 of Appendix C1 to the Listing Rules of the Stock Exchange[75](index=75&type=chunk) [Compliance with Model Code for Securities Transactions](index=30&type=section&id=Compliance%20with%20Model%20Code%20for%20Securities%20Transactions) The company has adopted the Model Code set out in Appendix C3 to the Listing Rules as the code of conduct for directors and supervisors in securities transactions, and all directors and supervisors confirm compliance with this code - The company has adopted the Model Code set out in Appendix C3 to the Listing Rules as the code of conduct for directors and supervisors in securities transactions[76](index=76&type=chunk) - All directors and supervisors confirmed that they have complied with the Model Code during the period[77](index=77&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=30&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) During the period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities, and no treasury shares were held at the end of the period - During the period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[78](index=78&type=chunk) - As of the end of the period, the company held no treasury shares[78](index=78&type=chunk) [Review of Interim Results](index=30&type=section&id=Review%20of%20Interim%20Results) The company's audit committee has reviewed the Group's unaudited consolidated financial information and discussed accounting principles with management and auditors; independent auditor Shinewing has conducted a review of the interim financial information in accordance with China Review Standards for Certified Public Accountants - The company's audit committee has reviewed the Group's unaudited consolidated financial information[79](index=79&type=chunk) - Independent auditor Shinewing has conducted a review of the interim financial information in accordance with China Review Standards for Certified Public Accountants No. 2101[79](index=79&type=chunk) [Dividends](index=31&type=section&id=Dividends) The Board resolved not to declare an interim dividend for the period - The Board resolved not to declare an interim dividend for the period[80](index=80&type=chunk) [Publication of Interim Results and Interim Report](index=31&type=section&id=Publication%20of%20Interim%20Results%20and%20Interim%20Report) This announcement has been published on the company's website and the Stock Exchange website; the 2025 interim report will be available for review on these websites in September 2025 - This announcement is published on the company's website (www.lushangfuwu.com) and the Stock Exchange website (www.hkexnews.hk)[81](index=81&type=chunk) - The 2025 interim report will be available for review on the company's and the Stock Exchange's websites in September 2025[81](index=81&type=chunk)

香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM的定位，乃為相比起其他在聯交所上市的公司帶有較高投資風險的中小型公 司提供一個上市的市場。有意投資的人士應了解投資於該等公司的潛在風險，並 應經過審慎周詳的考慮後方作出投資決定。 由於在GEM上市的公司普遍為中小型公司，在GEM買賣的證券可能會較於聯交所 主板買賣的證券承受較大的市場波動風險，同時無法保證在GEM買賣的證券會有 高流通量的市場。 香港交易及結算所有限公司及聯交所對本報告的內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示概不就因本報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。 中期報告 2025 董事會 執行董事 李秋雁女士 （主席） 童星先生 （行政總裁） 杜永衛女士 獨立非執行董事 葉敬仲先生 潘慶偉先生 鄧維祐先生 審核委員會 鄧維祐先生 （主席） 葉敬仲先生 潘慶偉先生 本報告乃根據GEM證券上市規則（「GEM上市規則」）之規定提供有關中國金典集團 有限公司（「本公司」，連同其附屬公司統稱「本集團」）之資料。本公司各董事（「董 事」）共同及個別對本報告承擔全部責任。各董事於作出一切合理諮詢 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部 或任何部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 温嶺浙江工量刃具交易中心股份有限公司 Wenling Zhejiang Measuring and Cutting Tools Trading Centre Company Limited* （於中華人民共和國註冊成立的股份有限公司） （股份代號：1379） 截 至2025年6月30日止六個月之中期業績公告 | 財務摘要 | | | | --- | --- | --- | | | 截 至6月30日止六個月 | | | | 2025年 | 2024年 | | | （未經審核） | （未經審核） | | （人民幣千元） 收 益 | 34,461 | 33,887 | | 毛 利 （人民幣千元） | 26,934 | 27,393 | | 毛利率 | 78.2% | 80.8% | | 期內溢利 （人民幣千元） | 7,417 | 3,307 | | 純利率 | 21.5% | 9.8% | | 每股基本及攤 ...