四川德康農牧食品集團股份有限公司 DEKON FOOD AND AGRICULTURE GROUP （於中華人民共和國註冊成立的股份有限公司） (A joint stock company incorporated in the People's Republic of China with limited liability) 股份代號 STOCK CODE : 2419 中期報告 INTERIM REPORT 2025 四 川 德 康 農 有 限 公 品 集 團 股 牧 份 食 司 D E K O N F O OD A ND A G RIC U LTU RE G R O U | 公司資料 | 2 | | --- | --- | | 財務摘要 | 3 | | 董事長致辭 | 4 | | 釋義 | 7 | | 技術詞彙表 | 9 | | 管理層討論與分析 | 10 | | 企業管治及其他資料 | 23 | | 獨立審閱報告 | 31 | | 綜合損益及其他全面收益表 | 33 | | 綜合財務狀況表 | 35 | | 綜合權益變動表 | 37 | | 簡明綜合現金流量表 | 39 | | 未經審核中期財務報告 ...

Report Overview [Company Information and GEM Characteristics](index=1&type=section&id=Company%20Information%20and%20GEM%20Characteristics) The report presents the Company's H1 2025 unaudited interim results, detailing its GEM listing for SMEs with higher investment risk and its core business in pharmaceutical and medical device operations in China - The Company is a joint stock limited company incorporated in the People's Republic of China, with shares listed on the GEM of The Stock Exchange of Hong Kong Limited[1](index=1&type=chunk)[10](index=10&type=chunk) - The GEM market is positioned as a listing platform for small and medium-sized enterprises, carrying **higher investment risks** and potential for greater market volatility[2](index=2&type=chunk) - The Group's principal activities include the development, production, and sale of pharmaceuticals and medical devices, research and development of modern biotechnology, and the purchase and sale of pharmaceuticals, health products, and medical devices, primarily located in China[10](index=10&type=chunk) Financial Statements [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For H1 2025, the Group's revenue decreased by 8.92% to RMB 495,920'000, gross profit fell by 18.78%, and profit and total comprehensive income dropped by 46.57% to RMB 22,041'000, with basic EPS at RMB 0.0114 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Key Data (For the six months ended June 30) | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 495,920 | 544,504 | -8.92% | | Cost of sales | (337,566) | (349,538) | -3.42% | | Gross profit | 158,354 | 194,966 | -18.78% | | Other income and net other income | 9,191 | 6,703 | 37.12% | | Selling and distribution expenses | (74,120) | (82,983) | -10.68% | | Administrative expenses | (45,050) | (42,379) | 6.30% | | Operating profit | 24,992 | 50,761 | -50.77% | | Profit before tax | 22,746 | 48,292 | -52.90% | | Profit and total comprehensive income for the period | 22,041 | 41,254 | -46.57% | | Profit attributable to owners of the Company | 19,065 | 37,907 | -49.71% | | Basic and diluted earnings per share | RMB 0.0114 | RMB 0.0226 | -49.56% | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets less current liabilities decreased by 23.34% to RMB 810,728'000, with net assets falling 24.12% due to reduced time deposits and net current assets Condensed Consolidated Statement of Financial Position Key Data (As at June 30) | Indicator | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current assets | 486,440 | 589,059 | -17.39% | | Current assets | 625,199 | 809,027 | -22.69% | | Current liabilities | 300,911 | 340,423 | -11.61% | | Net current assets | 324,288 | 468,604 | -30.79% | | Total assets less current liabilities | 810,728 | 1,057,663 | -23.34% | | Non-current liabilities | 31,575 | 31,564 | 0.03% | | Net assets | 779,153 | 1,026,099 | -24.12% | | Total equity | 779,153 | 1,026,099 | -24.12% | - Time deposits significantly decreased from **RMB 115,000'000** as of December 31, 2024, to **RMB 20,000'000** as of June 30, 2025[5](index=5&type=chunk) - Bank balances and cash decreased from **RMB 283,424'000** as of December 31, 2024, to **RMB 139,327'000** as of June 30, 2025[5](index=5&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For H1 2025, total equity attributable to owners of the Company decreased by 24.21% to RMB 707,260'000, primarily due to RMB 244,988'000 in dividends paid to equity holders Condensed Consolidated Statement of Changes in Equity Key Data (For the six months ended June 30) | Indicator | June 30, 2025 (RMB'000) | January 1, 2025 (RMB'000) | June 30, 2024 (RMB'000) | January 1, 2024 (RMB'000) | | :--- | :--- | :--- | :--- | :--- | | Subtotal of equity attributable to owners of the Company | 707,260 | 933,183 | 946,076 | 908,169 | | Non-controlling interests | 71,893 | 92,916 | 111,360 | 108,013 | | Total equity | 779,153 | 1,026,099 | 1,057,436 | 1,016,182 | | Profit and total comprehensive income for the period | 22,041 | N/A | 41,254 | N/A | | Dividends paid to equity holders of the Company | (244,988) | N/A | – | N/A | | Dividends paid to non-controlling interests | (23,999) | N/A | – | N/A | - In H1 2025, dividends of **RMB 244,988'000** were paid to equity holders of the Company, and **RMB 23,999'000** to non-controlling interests[7](index=7&type=chunk)[35](index=35&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For H1 2025, net cash from operating activities significantly increased, and investing activities turned to net inflow due to reduced time deposits; however, large dividend payments led to a substantial net outflow from financing activities, resulting in a net decrease in cash and cash equivalents Condensed Consolidated Statement of Cash Flows Key Data (For the six months ended June 30) | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Net cash generated from operating activities | 41,171 | 21,217 | 94.05% | | Net cash generated from/(used in) investing activities | 89,648 | (79,019) | 213.45% | | Net cash used in financing activities | (274,916) | (2,457) | 11129.30% | | Net decrease in cash and cash equivalents | (144,097) | (60,259) | 139.13% | | Cash and cash equivalents at end of period | 139,327 | 311,947 | -55.49% | - Cash flow from investing activities shifted from a net outflow of **RMB 79,019'000** in the prior year to a net inflow of **RMB 89,648'000** in H1 2025, primarily due to a **RMB 95,000'000** reduction in time deposits[8](index=8&type=chunk) - Net cash outflow from financing activities significantly increased, mainly due to dividend payments of **RMB 244,988'000** to equity holders of the Company and **RMB 23,999'000** to non-controlling interests[9](index=9&type=chunk) Notes to the Financial Statements [Company Information](index=8&type=section&id=Company%20Information) Shenzhen Neptunus Interlong Bio-technique Co., Ltd., incorporated in China and listed on HKEX GEM, primarily develops, produces, sells, and procures pharmaceuticals and medical devices, with the Group controlled by Neptunus Bioengineering and ultimately by Shenzhen Neptunus Holding Group Co., Ltd - The Company's principal activities include the development, production, and sale of pharmaceuticals and medical devices, research and development of modern biotechnology, and the purchase and sale of pharmaceuticals, health products, and medical devices[10](index=10&type=chunk) - The Group is controlled by Shenzhen Neptunus Bioengineering Co., Ltd., listed on the Shenzhen Stock Exchange, with Shenzhen Neptunus Holding Group Co., Ltd. as the ultimate parent company[10](index=10&type=chunk) [Basis of Preparation and Accounting Policies](index=8&type=section&id=Basis%20of%20Preparation%20and%20Accounting%20Policies) The condensed consolidated interim financial statements are prepared in accordance with GEM Listing Rules and HKAS 34, using the historical cost basis, presented in RMB, and authorized for issue - The condensed consolidated interim financial statements are prepared in accordance with the GEM Listing Rules of the Stock Exchange and Hong Kong Accounting Standard 34 "Interim Financial Reporting"[11](index=11&type=chunk) - The financial statements are prepared on a historical cost basis and presented in Renminbi, with all amounts rounded to the nearest thousand[12](index=12&type=chunk) [Adoption of Revised Hong Kong Financial Reporting Standards](index=9&type=section&id=Adoption%20of%20Revised%20Hong%20Kong%20Financial%20Reporting%20Standards) The Group has adopted revised HKFRS effective January 1, 2025, including HKAS 21 (Amendment) "Lack of Exchangeability", with no material impact on current or prior period results or financial position, and expects no significant impact from new standards not yet effective - The Group has adopted HKAS 21 (Amendment) "Lack of Exchangeability" for the first time, with no material impact on the results and financial position for the current and prior periods[14](index=14&type=chunk) - The Board is assessing the potential impact of new Hong Kong Financial Reporting Standards that have been issued but are not yet effective, and does not expect them to have a significant impact on the condensed consolidated financial statements[16](index=16&type=chunk) [Revenue, Other Income and Net Other Income](index=10&type=section&id=Revenue,%20Other%20Income%20and%20Net%20Other%20Income) For H1 2025, the Group's total revenue decreased by 8.92% to RMB 495,920'000, mainly from production and sales of pharmaceuticals/medical devices and sales/distribution of pharmaceuticals/health products, while other income and net other income increased by 37.12% due to reversal of trade and other payables Revenue Composition (For the six months ended June 30) | Revenue Source | 2025 (RMB'000) | 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Production and sales of pharmaceuticals and medical devices | 251,003 | 295,150 | -14.96% | | Sales and distribution of pharmaceuticals, health products and medical devices | 244,917 | 249,354 | -1.78% | | **Total Revenue** | **495,920** | **544,504** | **-8.92%** | Other Income and Net Other Income (For the six months ended June 30) | Item | 2025 (RMB'000) | 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Interest income from bank deposits | 1,553 | 1,708 | -9.08% | | Reversal of inventory write-down | 201 | 2,001 | -89.91% | | Government grants | 1,679 | 2,612 | -35.72% | | Reversal of trade and other payables | 5,642 | – | N/A | | Others | 116 | 382 | -69.63% | | **Total** | **9,191** | **6,703** | **37.12%** | - The decrease in revenue is primarily due to seasonal fluctuations in certain pharmaceuticals and a decline in medical device revenue[69](index=69&type=chunk) [Segment Reporting](index=11&type=section&id=Segment%20Reporting) The Group manages its operations through two business lines: "Production and Sales of Pharmaceuticals and Medical Devices" and "Sales and Distribution of Pharmaceuticals, Health Products, and Medical Devices," with all operations in China; in H1 2025, external customer revenue for both segments declined, and the "Production and Sales" segment shifted from profit to loss - The Group manages its operations through two business lines: "Production and Sales of Pharmaceuticals and Medical Devices" and "Sales and Distribution of Pharmaceuticals, Health Products, and Medical Devices"[19](index=19&type=chunk)[22](index=22&type=chunk) - All of the Group's operations are conducted in China, thus no geographical segment analysis is provided[20](index=20&type=chunk)[29](index=29&type=chunk) [Segment Results, Assets and Liabilities](index=11&type=section&id=Segment%20Results,%20Assets%20and%20Liabilities) For H1 2025, external customer revenue for "Production and Sales of Pharmaceuticals and Medical Devices" decreased by 14.96% year-on-year, resulting in a loss of RMB 3,562'000, while "Sales and Distribution of Pharmaceuticals, Health Products, and Medical Devices" saw revenue decline by 1.78% and profit by 14.49% to RMB 27,644'000, with total assets for both segments decreasing Segment Revenue and Profit (For the six months ended June 30) | Segment | 2025 External Customer Revenue (RMB'000) | 2024 External Customer Revenue (RMB'000) | YoY Change (%) | 2025 Segment (Loss)/Profit (RMB'000) | 2024 Segment Profit (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Production and sales of pharmaceuticals and medical devices | 251,003 | 295,150 | -14.96% | (3,562) | 17,721 | -120.10% | | Sales and distribution of pharmaceuticals, health products and medical devices | 244,917 | 249,354 | -1.78% | 27,644 | 32,281 | -14.49% | | **Total** | **495,920** | **544,504** | **-8.92%** | **24,082** | **50,002** | **-51.84%** | Segment Assets and Additions to Non-current Assets (As at June 30) | Segment | 2025 Segment Assets (RMB'000) | 2024 Segment Assets (RMB'000) | Change (%) | 2025 Additions to Non-current Segment Assets (RMB'000) | 2024 Additions to Non-current Segment Assets (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Production and sales of pharmaceuticals and medical devices | 737,235 | 895,155 | -17.64% | 7,884 | 20,558 | -61.65% | | Sales and distribution of pharmaceuticals, health products and medical devices | 694,254 | 834,669 | -16.82% | 186 | 8,544 | -97.82% | | **Total** | **1,431,489** | **1,729,824** | **-17.24%** | **8,070** | **29,102** | **-72.27%** | [Reconciliation of Reportable Segment Revenue, Profit Before Tax, Assets and Liabilities](index=13&type=section&id=Reconciliation%20of%20Reportable%20Segment%20Revenue,%20Profit%20Before%20Tax,%20Assets%20and%20Liabilities) This section provides a reconciliation of reportable segment revenue, profit before tax, assets, and liabilities to the consolidated statements, with consolidated revenue at RMB 495,920'000, profit before tax at RMB 22,746'000, total assets at RMB 1,111,639'000, and total liabilities at RMB 332,486'000 Segment to Consolidated Statement Reconciliation (For the six months ended June 30/As at June 30) | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Consolidated Revenue | 495,920 | 544,504 | | Consolidated Profit Before Tax | 22,746 | 48,292 | | Total Consolidated Assets (2025/06/30 vs 2024/12/31) | 1,111,639 | 1,398,086 | | Total Consolidated Liabilities (2025/06/30 vs 2024/12/31) | 332,486 | 371,987 | [Revenue from Major Products and Services](index=15&type=section&id=Revenue%20from%20Major%20Products%20and%20Services) For H1 2025, revenue from sales of pharmaceuticals and health products was RMB 400,411'000, a 5.55% decrease year-on-year, while medical device sales revenue was RMB 95,509'000, a 20.80% decrease year-on-year Revenue from Major Products and Services (For the six months ended June 30) | Product/Service | 2025 (RMB'000) | 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Sales of pharmaceuticals and health products | 400,411 | 423,917 | -5.55% | | Sales of medical devices | 95,509 | 120,587 | -20.80% | | **Total** | **495,920** | **544,504** | **-8.92%** | [Geographical Information](index=15&type=section&id=Geographical%20Information) The Group's revenue and non-current assets are entirely derived from and located in China, thus no geographical segment analysis is provided - The Group's revenue and non-current assets are entirely derived from and located in China, thus no geographical segment analysis is provided[29](index=29&type=chunk) [Disaggregation of Revenue from Contracts with Customers](index=15&type=section&id=Disaggregation%20of%20Revenue%20from%20Contracts%20with%20Customers) For H1 2025, revenue from pharmacies accounted for the largest share at RMB 460,644'000, but decreased by 7.84% year-on-year, while revenue from hospitals decreased by 12.89% to RMB 34,325'000 year-on-year Revenue by Customer Category (For the six months ended June 30) | Customer Category | 2025 (RMB'000) | 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Hospitals | 34,325 | 39,292 | -12.89% | | Pharmacies | 460,644 | 499,812 | -7.84% | | Others | 951 | 5,400 | -82.39% | | **Total** | **495,920** | **544,504** | **-8.92%** | - Pharmacies are the Group's largest source of revenue, but their revenue decreased by **7.84%** year-on-year[30](index=30&type=chunk) [Profit Before Tax](index=16&type=section&id=Profit%20Before%20Tax) For H1 2025, profit before tax was RMB 22,746'000, a significant decrease of 52.90% year-on-year, with finance costs decreasing, staff costs increasing, and depreciation, amortization, and R&D expenses decreasing Profit Before Tax Components (For the six months ended June 30) | Item | 2025 (RMB'000) | 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Finance costs | 2,246 | 2,469 | -9.03% | | Staff costs | 83,948 | 80,645 | 4.10% | | Depreciation of right-of-use assets | 2,314 | 2,593 | -10.79% | | Amortisation of intangible assets | 1,862 | 2,010 | -7.36% | | Depreciation of property, plant and equipment | 10,881 | 11,974 | -9.13% | | Cost of inventories | 333,206 | 338,296 | -1.50% | | Research and development expenses | 16,848 | 18,057 | -6.70% | | Impairment/(reversal) net - trade receivables | (1,304) | 3,197 | -140.79% | | Impairment/(reversal) net - other receivables | 2,446 | 176 | 1289.77% | | Write-down of inventories | 2,485 | 1,597 | 55.60% | | Reversal of inventory write-down | (201) | (2,001) | -89.91% | - The decline in profit before tax is primarily influenced by decreased revenue and gross margin, increased administrative expenses, and a reduction in trade receivables impairment offset by a significant increase in other receivables impairment[70](index=70&type=chunk) [Income Tax Expense](index=17&type=section&id=Income%20Tax%20Expense) For H1 2025, income tax expense was RMB 705'000, a significant decrease of 89.95% year-on-year, mainly due to reduced current China corporate income tax and prior year over-provision adjustments, with three subsidiaries enjoying a 15% preferential tax rate and 200% super deduction for R&D expenses as "High-Tech Enterprises" Income Tax Expense (For the six months ended June 30) | Item | 2025 (RMB'000) | 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Current China corporate income tax | 2,367 | 8,378 | -71.74% | | Over-provision in respect of prior year | (995) | – | N/A | | Deferred tax | (667) | (1,340) | -50.15% | | **Total** | **705** | **7,038** | **-89.95%** | - Three subsidiaries are eligible as "High-Tech Enterprises" and enjoy a **15%** preferential tax rate[32](index=32&type=chunk) - The three subsidiaries are eligible for a **200%** super deduction for research and development expenses[33](index=33&type=chunk) [Dividends](index=17&type=section&id=Dividends) For H1 2025, the Company approved and paid total dividends of RMB 244,988'000, including a 2024 final dividend of RMB 0.005 per ordinary share and a special dividend of RMB 0.141 per ordinary share, with no interim dividend recommended for this reporting period Dividends Paid (For the six months ended June 30) | Dividend Type | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | 2024 Final dividend (RMB 0.005 per share) | 8,390 | – | | 2024 Special dividend (RMB 0.141 per share) | 236,598 | – | | **Total** | **244,988** | **–** | - The Board does not recommend the payment of any interim dividend for this reporting period[35](index=35&type=chunk)[78](index=78&type=chunk) [Earnings Per Share](index=18&type=section&id=Earnings%20Per%20Share) For H1 2025, basic earnings per share were RMB 0.0114, a 49.56% decrease from RMB 0.0226 in the prior year, with diluted earnings per share being equal to basic earnings per share due to no potential dilutive effects Earnings Per Share (For the six months ended June 30) | Indicator | 2025 | 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Basic earnings per share | RMB 0.0114 | RMB 0.0226 | -49.56% | | Profit attributable to owners of the Company | RMB 19,065'000 | RMB 37,907'000 | -49.71% | | Weighted average number of ordinary shares in issue | 1,678,000,000 shares | 1,678,000,000 shares | 0.00% | - Diluted earnings per share are equal to basic earnings per share, as there are no outstanding ordinary shares with potential dilutive effects[37](index=37&type=chunk) [Property, Plant and Equipment and Right-of-Use Assets](index=18&type=section&id=Property,%20Plant%20and%20Equipment%20and%20Right-of-Use%20Assets) For H1 2025, the Group purchased property, plant and equipment costing approximately RMB 5,371'000, a 54.79% decrease year-on-year, with disposals/write-offs of RMB 1,079'000, and recognized right-of-use assets of RMB 141'000, a significant 97.06% decrease Property, Plant and Equipment and Right-of-Use Assets Movement (For the six months ended June 30) | Item | 2025 (RMB'000) | 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Cost of purchases of property, plant and equipment | 5,371 | 11,885 | -54.79% | | Carrying amount of property, plant and equipment disposed of/written off | 1,079 | 2,732 | -60.58% | | Right-of-use assets recognised | 141 | 4,804 | -97.06% | [Trade and Other Receivables](index=18&type=section&id=Trade%20and%20Other%20Receivables) As of June 30, 2025, total trade and other receivables were RMB 303,689'000, a 4.66% decrease from December 31, 2024, with trade receivables (net of allowance) increasing by 8.08% and bills receivable decreasing by 52.56%, alongside significant changes in amounts due from fellow subsidiaries and related companies Trade and Other Receivables (As at June 30) | Item | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Trade receivables (net of allowance) | 172,429 | 159,529 | 8.08% | | Bills receivable | 33,849 | 71,328 | -52.56% | | Amounts due from fellow subsidiaries | 11,575 | 24,972 | -53.65% | | Amounts due from related companies | 30,028 | 11,947 | 151.35% | | Other receivables (net of allowance) | 97,411 | 87,676 | 11.11% | | **Total** | **303,689** | **318,533** | **-4.66%** | [Ageing Analysis](index=19&type=section&id=Ageing%20Analysis) As of June 30, 2025, trade receivables due within 3 months constituted the largest portion at RMB 147,099'000, a 46.75% increase from December 31, 2024, while bills receivable due within 3 months were RMB 17,156'000 and those due in 4 to 6 months were RMB 16,693'000 Ageing Analysis of Trade Receivables (As at June 30) | Ageing | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Within 3 months | 147,099 | 100,243 | 46.75% | | 4 to 6 months | 10,507 | 31,018 | -66.13% | | 7 to 12 months | 1,798 | 12,436 | -85.54% | | Over 1 year | 13,025 | 15,832 | -17.60% | | **Total** | **172,429** | **159,529** | **8.08%** | Ageing Analysis of Bills Receivable (As at June 30) | Ageing | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Within 3 months | 17,156 | 25,753 | -33.40% | | 4 to 6 months | 16,693 | 45,575 | -63.37% | | **Total** | **33,849** | **71,328** | **-52.56%** | [Impairment of Trade Receivables](index=20&type=section&id=Impairment%20of%20Trade%20Receivables) As of June 30, 2025, the allowance for expected credit losses on trade receivables was RMB 21,269'000, a 14.37% decrease from December 31, 2024, with RMB 122'000 recognized, RMB 1,426'000 reversed, and RMB 2,265'000 written off during the period Movement in Impairment Allowance for Trade Receivables (As at June 30) | Item | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Balance at January 1 | 24,838 | 22,771 | 9.08% | | Expected credit losses recognised during the period | 122 | 4,246 | -97.13% | | Expected credit losses reversed during the period | (1,426) | (2) | 71200.00% | | Amounts written off during the period | (2,265) | (2,177) | 4.04% | | **Balance at end of period** | **21,269** | **24,838** | **-14.37%** | [Impairment of Other Receivables](index=20&type=section&id=Impairment%20of%20Other%20Receivables) As of June 30, 2025, the allowance for expected credit losses on other receivables was RMB 3,945'000, an 82.81% increase from December 31, 2024, with RMB 2,446'000 recognized, no reversals, and RMB 659'000 written off during the period Movement in Impairment Allowance for Other Receivables (As at June 30) | Item | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Balance at January 1 | 2,158 | 2,090 | 3.25% | | Expected credit losses recognised during the period | 2,446 | 822 | 197.57% | | Expected credit losses reversed during the period | – | (4) | N/A | | Amounts written off during the period | (659) | (750) | -12.13% | | **Balance at end of period** | **3,945** | **2,158** | **82.81%** | [Trade and Other Payables](index=21&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables were RMB 188,856'000, a 14.90% decrease from December 31, 2024, with trade payables decreasing by 15.03% and other payables and accrued expenses decreasing by 11.79% Trade and Other Payables (As at June 30) | Item | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Trade payables | 121,564 | 143,306 | -15.03% | | Other payables and accrued expenses | 62,870 | 71,285 | -11.79% | | Amounts due to fellow subsidiaries | 3,276 | 6,545 | -49.95% | | Amounts due to intermediate parent company | 285 | 367 | -22.34% | | Amounts due to related companies | 61 | 74 | -17.57% | | Amounts due to ultimate holding company | 800 | 800 | 0.00% | | **Total** | **188,856** | **222,377** | **-14.90%** | [Interest-Bearing Borrowings](index=21&type=section&id=Interest-Bearing%20Borrowings) As of June 30, 2025, the Group's total interest-bearing borrowings were RMB 99,378'000, a 2.30% decrease from December 31, 2024, comprising short-term bank loans of RMB 90,091'000 and other borrowings of RMB 9,287'000, with some secured by properties and guaranteed by non-controlling shareholders and subsidiaries Interest-Bearing Borrowings (As at June 30) | Item | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current liabilities - other borrowings | 4,928 | 3,514 | 40.24% | | Current liabilities - short-term bank loans | 90,091 | 94,424 | -4.59% | | Current liabilities - other borrowings | 4,359 | 3,777 | 15.41% | | **Total** | **99,378** | **101,715** | **-2.30%** | - Bank borrowings of **RMB 61,071'000** are secured by the Group's buildings and guaranteed by non-controlling shareholders and several subsidiaries, with effective interest rates ranging from **3.25% to 3.65%**[45](index=45&type=chunk) - Bank borrowings of **RMB 29,020'000** are guaranteed by a non-controlling shareholder of a subsidiary and a subsidiary, with effective interest rates ranging from **3.75% to 4.80%**[45](index=45&type=chunk) [Lease Liabilities](index=23&type=section&id=Lease%20Liabilities) As of June 30, 2025, the present value of lease liabilities was RMB 2,511'000, a 32.43% decrease from December 31, 2024, with RMB 1,924'000 due within one year and RMB 587'000 due after one year; total cash outflow for leases during the period was approximately RMB 2,222'000, a 12.93% decrease year-on-year Lease Liabilities (As at June 30) | Item | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Present value of lease liabilities | 2,511 | 3,716 | -32.43% | | Due within one year | 1,924 | 1,949 | -1.30% | | Due in second to fifth years | 587 | 1,767 | -66.78% | | Total cash outflow for leases (For the six months ended June 30) | 2,222 | 2,553 | -12.93% | [Share Capital](index=24&type=section&id=Share%20Capital) As of June 30, 2025, the Company's total registered, issued, and fully paid share capital was RMB 167,800'000, comprising 1,252,000 thousand domestic shares and 426,000 thousand H shares, both with a par value of RMB 0.10, unchanged from January 1, 2025 Share Capital Composition (As at June 30) | Share Type | Number of Shares (thousands) | Amount (RMB'000) | | :--- | :--- | :--- | | Domestic shares (par value RMB 0.10 per share) | 1,252,000 | 125,200 | | H shares (par value RMB 0.10 per share) | 426,000 | 42,600 | | **Total** | **1,678,000** | **167,800** | - As of June 30, 2025, the Company's share capital structure remained unchanged from January 1, 2025[47](index=47&type=chunk) [Commitments](index=24&type=section&id=Commitments) As of June 30, 2025, the Group's capital commitments for contracted but unprovided property, plant and equipment were approximately RMB 1,005'000, an 18.37% increase from December 31, 2024, while short-term lease commitments were RMB 1,313'000, a 9.64% decrease Capital Commitments (As at June 30) | Item | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Property, plant and equipment (contracted but not provided for) | 1,005 | 849 | 18.37% | | Short-term lease commitments (within one year) | 1,313 | 1,452 | -9.64% | - The Group has no specific plans for material investments and capital assets[81](index=81&type=chunk) [Significant Related Party Transactions](index=25&type=section&id=Significant%20Related%20Party%20Transactions) The Group engages in various related party transactions with its intermediate parent, immediate parent, fellow subsidiaries, and related companies, primarily involving sales of goods, purchases of finished goods, office rentals, and lease expenses, all conducted on terms comparable to those with third parties in the ordinary course of business - The Group engages in related party transactions with Neptunus Group (intermediate parent company), Neptunus Bioengineering (immediate parent company), and several fellow subsidiaries and related companies, including sales of goods, purchases of finished goods, and office rentals[48](index=48&type=chunk)[49](index=49&type=chunk)[50](index=50&type=chunk)[51](index=51&type=chunk) - Related party transactions are conducted in the ordinary course of business on terms comparable to those with other third-party suppliers and customers[51](index=51&type=chunk) [Related Party Transactions](index=25&type=section&id=Related%20Party%20Transactions) For H1 2025, total sales of goods to related parties were RMB 28,486'000, a 29.79% decrease year-on-year, while total purchases of finished goods and merchandise from related parties were RMB 26,274'000, a 53.83% decrease year-on-year Key Related Party Transaction Amounts (For the six months ended June 30) | Transaction Nature | 2025 (RMB'000) | 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Sales of goods (total) | 28,486 | 40,604 | -29.79% | | Purchases of finished goods/merchandise (total) | 26,274 | 56,907 | -53.83% | | Office rental | 716 | 716 | 0.00% | | Lease expenses | 193 | 148 | 30.41% | - Purchases of finished goods from Shenzhen Neptunus Pharmaceutical Co., Ltd. amounted to **RMB 25,793'000**, a **10.40%** decrease year-on-year[48](index=48&type=chunk) - Purchases of goods from Nanning Neptunus Health Biotechnology Co., Ltd. significantly decreased from **RMB 17,282'000** to **RMB 296'000**[48](index=48&type=chunk) [Outstanding Balances with Related Parties](index=28&type=section&id=Outstanding%20Balances%20with%20Related%20Parties) As of June 30, 2025, total amounts due from related parties were RMB 41,854'000, a 12.59% increase from December 31, 2024, while total amounts due to related parties were RMB 4,422'000, a 43.21% decrease, with all balances unsecured, interest-free, and repayable on demand Outstanding Balances with Related Parties (As at June 30) | Item | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Total amounts due from related parties | 41,854 | 37,170 | 12.59% | | Total amounts due to related parties | 4,422 | 7,786 | -43.21% | | Trade nature amounts due from related parties | 41,531 | 36,850 | 12.70% | | Trade nature amounts due to related parties | 3,337 | 6,619 | -49.59% | - Among trade nature amounts due from related parties, those due within 3 months accounted for the largest portion at **RMB 24,825'000**[59](index=59&type=chunk) - All related party balances are unsecured, interest-free, and repayable on demand[57](index=57&type=chunk) [Key Management Personnel Compensation](index=32&type=section&id=Key%20Management%20Personnel%20Compensation) For H1 2025, total key management personnel compensation was RMB 2,778'000, an 8.69% increase year-on-year, primarily comprising short-term employee benefits and post-employment benefits Key Management Personnel Compensation (For the six months ended June 30) | Item | 2025 (RMB'000) | 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Short-term employee benefits | 2,634 | 2,435 | 8.17% | | Post-employment benefits | 144 | 121 | 19.01% | | **Total** | **2,778** | **2,556** | **8.69%** | Management Discussion and Analysis [Business Review](index=33&type=section&id=Business%20Review) The Group primarily engages in pharmaceutical and medical device R&D, production, sales, and trading in China, covering various therapeutic areas; during the period, some business segments declined due to new medical insurance reform policies and rising procurement costs, but the Group actively adjusted sales strategies, optimized product structure, and strengthened medical device expansion and sales network development - The Group primarily engages in pharmaceutical and medical device research and development, production, and sales, as well as the procurement and sales of pharmaceuticals and health food in China, covering therapeutic areas such as oncology, cardiovascular, respiratory, digestive, and mental illnesses[61](index=61&type=chunk) - New medical insurance reform policies adversely affected retail pharmacy sales, consequently impacting the procurement and sales business of pharmaceuticals and health food[66](index=66&type=chunk) - The Group actively adjusted its sales strategies, focusing on key product sales, vigorously developing the health food market, and increasing product promotion through self-media[66](index=66&type=chunk) [R&D, Production and Sales of Pharmaceuticals and Medical Devices](index=33&type=section&id=R%26D,%20Production%20and%20Sales%20of%20Pharmaceuticals%20and%20Medical%20Devices) The Group operates two pharmaceutical production bases in Fuzhou and Beijing, holding 505 national drug approval numbers, most in the National Basic Medical Insurance Drug List, and continues to invest in generic drug consistency evaluation and new drug R&D, holding 97 patents with 5 varieties having passed consistency evaluation; during the period, two Fujian pharmaceutical subsidiaries saw performance decline due to rising procurement costs and reduced sales of high-margin products, while the Beijing pharmaceutical subsidiary improved operational quality through capacity expansion, product structure adjustment, and marketing model changes - The Group operates two pharmaceutical production bases in Fuzhou and Beijing, holding **505** national drug approval numbers, most of which are included in the National Basic Medical Insurance Drug List[62](index=62&type=chunk) - The Group holds **97** patents (**31** invention, **13** design, **53** utility model), with **5** varieties having passed consistency evaluation[63](index=63&type=chunk) - Two Fujian pharmaceutical subsidiaries experienced a decline in performance, primarily due to rising procurement costs and reduced sales of high-margin products[64](index=64&type=chunk) - Beijing Neptunus Zhongxin Pharmaceutical Co., Ltd. improved its operational quality through capacity expansion, product structure adjustment, and marketing model changes, striving to turn losses into profits[65](index=65&type=chunk) [Procurement and Sales of Pharmaceuticals, Health Food and Medical Devices](index=35&type=section&id=Procurement%20and%20Sales%20of%20Pharmaceuticals,%20Health%20Food%20and%20Medical%20Devices) The Group primarily distributes its own and the parent company group's pharmaceuticals, medical devices, and health food, including Neptunus Ginkgo Biloba Tablets and Neptunus Golden Zun series; new medical insurance reform policies adversely affected retail pharmacy sales, leading to a decline in this segment's performance, prompting the Group to plan H2 sales strategy adjustments, focusing on key products, vigorously developing the health food market, and strengthening medical institution terminal development to stabilize and grow the business - The Group primarily distributes and sells its own and the parent company group's pharmaceuticals, medical devices, and health food, including Neptunus Ginkgo Biloba Tablets and Neptunus Golden Zun series[66](index=66&type=chunk) - New medical insurance reform policies adversely affected retail pharmacy sales, leading to a decline in this segment's performance compared to the prior year[66](index=66&type=chunk)[68](index=68&type=chunk) - The Group plans to adjust its H2 sales strategy, focusing on key product sales, vigorously developing the health food market, and increasing product promotion through self-media[66](index=66&type=chunk) - Fuzhou Fuyao Pharmaceutical Co., Ltd. achieved significant results in medical device expansion and regional pharmaceutical and medical device agency, and plans to strengthen medical institution terminal development[67](index=67&type=chunk) [Financial Review](index=36&type=section&id=Financial%20Review) For H1 2025, the Group's revenue decreased by 8.92% to RMB 495,920'000, gross margin declined by 4 percentage points to 32%, leading to an 18.78% decrease in gross profit; sales and distribution expenses decreased by 10.68%, administrative expenses increased by 6.30%, and finance costs decreased by 9.03%, resulting in a 46.57% decrease in profit after tax and a 49.71% decrease in profit attributable to owners of the Company Key Financial Indicators Movement (For the six months ended June 30) | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 495,920 | 544,504 | -8.92% | | Gross margin | 32% | 36% | -4 percentage points | | Gross profit | 158,354 | 194,966 | -18.78% | | Selling and distribution expenses | 74,120 | 82,983 | -10.68% | | Administrative expenses | 45,050 | 42,379 | 6.30% | | Finance costs | 2,246 | 2,469 | -9.03% | | Profit after tax | 22,041 | 41,254 | -46.57% | | Profit attributable to owners of the Company | 19,065 | 37,907 | -49.71% | - The decrease in revenue is primarily due to seasonal fluctuations in certain pharmaceuticals and a decline in medical device revenue[69](index=69&type=chunk) - The decline in gross margin is mainly due to increased procurement costs for certain products and reduced revenue from high-margin products[69](index=69&type=chunk) - The increase in administrative expenses is primarily due to higher staff costs and trademark registration fees[70](index=70&type=chunk) [Liquidity and Financial Resources](index=37&type=section&id=Liquidity%20and%20Financial%20Resources) The Group primarily funds its operations and investing activities through internal financial resources and bank borrowings; as of June 30, 2025, short-term bank borrowings were RMB 90,091'000, with some bank financing secured by properties, and the Group faces minimal foreign exchange risk, currently not using financial instruments for hedging, while the asset-liability ratio increased to 42.67% - The Group generally funds its operating and investing activities through internal financial resources and bank borrowings[71](index=71&type=chunk) - As of June 30, 2025, short-term bank borrowings amounted to **RMB 90,091'000**[72](index=72&type=chunk) - Utilized bank financing of **RMB 61,071'000** is secured by properties with a carrying value of approximately **RMB 21,826'000**[73](index=73&type=chunk) - The Group faces minimal foreign exchange risk and currently does not use financial instruments for hedging purposes[74](index=74&type=chunk) Asset-Liability Ratio (As at June 30) | Indicator | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Asset-liability ratio | 42.67% | 36.25% | 6.42 percentage points | [Material Investments Held](index=37&type=section&id=Material%20Investments%20Held) Other than as disclosed in this announcement, the Company held no other material investments during the reporting period - During the reporting period, the Company held no other material investments[76](index=76&type=chunk) [Capital Structure](index=37&type=section&id=Capital%20Structure) During the reporting period, the Company's capital structure remained unchanged, with capital comprising its shares and other reserves - During the reporting period, the Company's capital structure remained unchanged, with capital comprising its shares and other reserves[77](index=77&type=chunk) [Interim Dividend](index=37&type=section&id=Interim%20Dividend) The Board does not recommend the payment of any interim dividend for the reporting period - The Board does not recommend the payment of any interim dividend for the reporting period[78](index=78&type=chunk) [Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=37&type=section&id=Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries,%20Associates%20and%20Joint%20Ventures) During the reporting period, the Group did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures - During the reporting period, the Group did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures[79](index=79&type=chunk) [Contingent Liabilities](index=37&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no material contingent liabilities - As of June 30, 2025, the Group had no material contingent liabilities[80](index=80&type=chunk) [Future Plans for Material Investments and Capital Assets](index=37&type=section&id=Future%20Plans%20for%20Material%20Investments%20and%20Capital%20Assets) As of June 30, 2025, the Group had no specific plans for material investments and capital assets - As of June 30, 2025, the Group had no specific plans for material investments and capital assets[81](index=81&type=chunk) [No Material Changes](index=38&type=section&id=No%20Material%20Changes) Except as disclosed in this announcement, there have been no material changes in the Group's financial position or business since the publication of the latest annual report for the six months ended June 30, 2025 - Except as disclosed in this announcement, there have been no material changes in the Group's financial position or business since the publication of the latest annual report[82](index=82&type=chunk) [Employees and Remuneration Policy](index=38&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group employed a total of 1,474 staff, with employee costs (including directors' emoluments) of approximately RMB 83,948'000 for the period; the Group determines salaries based on employee performance and experience, offering various benefits, training, and development opportunities - As of June 30, 2025, the Group employed a total of **1,474** staff[83](index=83&type=chunk) Employee Costs (For the six months ended June 30) | Item | 2025 (RMB'000) | 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Employee costs (including directors' emoluments) | 83,948 | 80,645 | 4.10% | - The Group determines salaries based on employee performance and work experience, offering various benefits, training, and development opportunities[83](index=83&type=chunk)[84](index=84&type=chunk) [Capital Commitments](index=38&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group had contractual commitments for future capital expenditure of approximately RMB 1,005'000 - As of June 30, 2025, the Group had contractual commitments for future capital expenditure of approximately **RMB 1,005'000**[85](index=85&type=chunk) [Directors', Supervisors' and Chief Executive's Interests and Short Positions in Listed Securities](index=38&type=section&id=Directors',%20Supervisors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Listed%20Securities) As of June 30, 2025, directors Mr. Zhang Feng and Ms. Yu Lin beneficially owned approximately 0.05% and 0.03% respectively of the shares in Neptunus Bioengineering, the Company's controlling shareholder; other than this, no directors, supervisors, chief executive, or their associates had any disclosable interests or short positions in the shares, underlying shares, or debentures of the Company or its associated corporations Directors' Long Positions in Shares of Associated Corporations (As at June 30) | Director | Name of Associated Corporation | Number of Shares | Approximate Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Mr. Zhang Feng | Neptunus Bioengineering | 1,331,093 | 0.05% | | Ms. Yu Lin | Neptunus Bioengineering | 900,000 | 0.03% | - Except as disclosed, no directors, supervisors, or chief executive had any disclosable interests or short positions in the shares, underlying shares, or debentures of the Company or its associated corporations[87](index=87&type=chunk) [Share Schemes, Convertible Securities and Warrants](index=39&type=section&id=Share%20Schemes,%20Convertible%20Securities%20and%20Warrants) As of June 30, 2025, neither the Company nor its subsidiaries had adopted any share schemes, nor had they granted any options, convertible securities, warrants, or other similar rights - As of June 30, 2025, neither the Company nor its subsidiaries had adopted any share schemes, nor had they granted any options, convertible securities, warrants, or other similar rights[88](index=88&type=chunk) [Options, Warrants or Convertible Bonds of Directors and Supervisors](index=39&type=section&id=Options,%20Warrants%20or%20Convertible%20Bonds%20of%20Directors%20and%20Supervisors) At no time during the reporting period were any options, warrants, or convertible bonds of the Company, its subsidiaries, or associated corporations granted to any director or supervisor, or their respective spouses or minor children - At no time during the reporting period were any options, warrants, or convertible bonds of the Company, its subsidiaries, or associated corporations granted to any director or supervisor, or their respective spouses or minor children[89](index=89&type=chunk) [Interests of Substantial Shareholders in Shares and Underlying Shares](index=40&type=section&id=Interests%20of%20Substantial%20Shareholders%20in%20Shares%20and%20Underlying%20Shares) As of June 30, 2025, Neptunus Bioengineering directly and indirectly held approximately 73.51% of the Company's issued share capital, making it the controlling shareholder, while Neptunus Group, Neptunus Holdings, and Mr. Zhang Simin are deemed to own approximately 73.51% of the Company's interests through controlled corporations Substantial Shareholders' Long Positions in the Company's Shares (As at June 30) | Substantial Shareholder | Capacity | Number of Domestic Shares Held | Approximate Percentage of the Company's Issued Share Capital | | :--- | :--- | :--- | :--- | | Neptunus Bioengineering | Beneficial owner and interest in controlled corporation | 1,233,464,500 | 73.51% | | Shenzhen Neptunus Group Co., Ltd. | Interest in controlled corporation | 1,233,464,500 | 73.51% | | Neptunus Holdings | Interest in controlled corporation | 1,233,464,500 | 73.51% | | Mr. Zhang Simin | Interest in controlled corporation | 1,233,464,500 | 73.51% | - Neptunus Bioengineering directly and indirectly holds interests in **1,233,464,500** domestic shares of the Company, representing approximately **73.51%** of the issued share capital[93](index=93&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=41&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) During the reporting period, neither the Company nor its subsidiaries purchased, redeemed, or sold any of the Company's listed securities, nor did they hold any treasury shares - During the reporting period, neither the Company nor its subsidiaries purchased, redeemed, or sold any of the Company's listed securities, nor did they sell any treasury shares of the Company[94](index=94&type=chunk) [Competing Interests](index=41&type=section&id=Competing%20Interests) Neptunus Bioengineering, the Company's controlling shareholder, has provided a non-competition undertaking to the Company and complied with it during the reporting period, refraining from directly or indirectly participating in or operating any business that competes with the Company's business - Neptunus Bioengineering, the Company's controlling shareholder, has provided a non-competition undertaking to the Company and complied with it during the reporting period[95](index=95&type=chunk)[96](index=96&type=chunk)[100](index=100&type=chunk) - Pursuant to the non-competition undertaking, Neptunus Bioengineering and its associates shall not directly or indirectly participate in or operate any business that directly or indirectly competes with the Company's business[100](index=100&type=chunk) [Code of Conduct for Securities Transactions by Directors](index=41&type=section&id=Code%20of%20Conduct%20for%20Securities%20Transactions%20by%20Directors) The Company has adopted a code of conduct for directors' securities transactions no less stringent than the GEM Listing Rules' "Required Standard of Dealings," and all directors confirmed compliance after specific inquiry - The Company has adopted a code of conduct for directors' securities transactions that is no less stringent than the "Required Standard of Dealings" set out in the GEM Listing Rules[97](index=97&type=chunk) - Following specific inquiries made to all directors, all directors confirmed their compliance with the code of conduct[97](index=97&type=chunk) [Audit Committee](index=41&type=section&id=Audit%20Committee) The Audit Committee comprises one non-executive director and two independent non-executive directors, with Mr. Yi Yongfa as Chairman; its main responsibilities include reviewing financial statements, providing advice, and reviewing accounting standards, internal controls, and financial reporting procedures, and the Committee has reviewed the Group's unaudited condensed consolidated results - The Audit Committee comprises Ms. Yu Lin, a non-executive director, and Mr. Yi Yongfa (Chairman) and Mr. Pan Jiayang, two independent non-executive directors[98](index=98&type=chunk) - The Audit Committee's primary responsibilities include reviewing the Company's annual reports, financial statements, and half-yearly reports, providing advice and recommendations to the Board, and reviewing accounting standards, internal controls, and financial reporting procedures[98](index=98&type=chunk) - The Audit Committee has reviewed the Group's unaudited condensed consolidated results for the reporting period[99](index=99&type=chunk) [Compliance with Corporate Governance Code](index=41&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The Company complied with the Corporate Governance Code during the reporting period, except for the combined roles of Chairman and General Manager, and three independent non-executive directors serving over nine years, requiring new appointments to meet code requirements; the Board is seeking suitable candidates and has appointed Ms. Yu Lin as a member of the Nomination Committee - The roles of Chairman and General Manager are combined and held by Mr. Zhang Feng, which does not comply with Rule C.2.1 of the Corporate Governance Code[101](index=101&type=chunk) - Three independent non-executive directors have served for more than nine years, requiring the appointment of a new independent non-executive director to comply with Rule B.2.4(b) of the Corporate Governance Code[101](index=101&type=chunk) - The Board is seeking suitable candidates for new independent non-executive directors and has appointed Ms. Yu Lin, a non-executive director, as a member of the Nomination Committee[102](index=102&type=chunk)[103](index=103&type=chunk) [Events After Reporting Period](index=42&type=section&id=Events%20After%20Reporting%20Period) After the reporting period, the Board appointed Ms. Yu Lin as a member of the Nomination Committee on August 22, 2025, to address the revised Corporate Governance Code and GEM Listing Rules effective July 1, 2025; no other significant events affecting the Group occurred between the end of the reporting period and the date of this announcement - The Board appointed Ms. Yu Lin, a non-executive director, as a member of the Nomination Committee on August 22, 2025, to address the revised Corporate Governance Code and GEM Listing Rules effective July 1, 2025[103](index=103&type=chunk) - Other than the aforementioned disclosure, no other significant events affecting the Group occurred between the end of the reporting period and the date of this announcement[104](index=104&type=chunk)

[Financial Highlights](index=1&type=section&id=%E8%B4%A2%E5%8A%A1%E6%91%98%E8%A6%81) For the six months ended June 30, 2025, Edensoft Holdings Limited saw a decrease in unaudited revenue and gross profit, but a significant increase in profit attributable to owners of the parent and basic and diluted earnings per share 2025 H1 Key Financial Data Comparison | Indicator | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 455.7 | 503.6 | -9.5% | | Gross Profit | 53.9 | 61.8 | -12.8% | | Profit Attributable to Owners of the Parent for the Period | 10.9 | 7.8 | +40.8% | | Basic and Diluted Earnings Per Share Attributable to Owners of the Parent | 0.53 cents | 0.38 cents | +39.5% | - The Board does not recommend an interim dividend for the six months ended June 30, 2025[2](index=2&type=chunk) [Unaudited Condensed Consolidated Interim Financial Results](index=2&type=section&id=%E6%9C%AA%E7%BB%8F%E5%AE%A1%E6%A0%B8%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E4%B8%AD%E6%9C%9F%E8%B4%A2%E5%8A%A1%E4%B8%9A%E7%BB%A9) This section presents the unaudited condensed consolidated financial statements for the six months ended June 30, 2025, including the statement of profit or loss and other comprehensive income, statement of financial position, statement of changes in equity, and statement of cash flows, reflecting the company's overall financial performance and changes in asset and liability structure [Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=%E6%9C%AA%E7%BB%8F%E5%AE%A1%E6%A0%B8%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E6%8D%9F%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) During the reporting period, the company's revenue and gross profit decreased year-on-year, but effective control over selling, administrative, and R&D expenses, along with reduced finance costs, led to a significant increase in profit attributable to owners of the parent Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Summary) | Indicator | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 455,711 | 503,584 | -9.5% | | Cost of Sales | (401,765) | (441,749) | -9.0% | | Gross Profit | 53,946 | 61,835 | -12.8% | | Selling and Distribution Expenses | (15,179) | (16,206) | -6.3% | | Administrative Expenses | (10,221) | (12,797) | -20.1% | | Research and Development Expenses | (15,200) | (22,975) | -33.8% | | Profit Before Tax | 10,419 | 7,377 | +41.2% | | Profit for the Period | 10,919 | 7,757 | +40.8% | | Profit Attributable to Owners of the Parent for the Period | 10,919 | 7,757 | +40.8% | | Basic and Diluted Earnings Per Share Attributable to Owners of the Parent | RMB 0.53 cents | RMB 0.38 cents | +39.5% | - Other comprehensive loss during the period primarily resulted from exchange differences on currency translation, amounting to **RMB (789) thousand** in H1 2025, compared to **RMB 30 thousand** in H1 2024[4](index=4&type=chunk) [Unaudited Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E6%9C%AA%E7%BB%8F%E5%AE%A1%E6%A0%B8%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E8%B4%A2%E5%8A%A1%E7%8A%B6%E5%86%B5%E8%A1%A8) As of June 30, 2025, the company's total non-current assets slightly increased, while total current assets and total current liabilities significantly decreased, leading to growth in both net current assets and total equity Condensed Consolidated Statement of Financial Position (Summary) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total Non-current Assets | 22,100 | 21,430 | +3.1% | | Total Current Assets | 318,965 | 416,216 | -23.4% | | Total Current Liabilities | 133,116 | 235,553 | -43.5% | | Net Current Assets | 185,849 | 180,663 | +2.9% | | Total Equity | 207,580 | 200,793 | +3.4% | | Total Equity | 207,580 | 200,793 | +3.4% | - Inventories significantly decreased from **RMB 120,278 thousand** as of December 31, 2024, to **RMB 61,720 thousand** as of June 30, 2025[5](index=5&type=chunk) - Interest-bearing bank borrowings decreased from **RMB 38,034 thousand** as of December 31, 2024, to **RMB 0 thousand** as of June 30, 2025[5](index=5&type=chunk) [Unaudited Condensed Consolidated Statement of Changes in Equity](index=6&type=section&id=%E6%9C%AA%E7%BB%8F%E5%AE%A1%E6%A0%B8%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E6%9D%83%E7%9B%8A%E5%8F%98%E5%8A%A8%E8%A1%A8) For the six months ended June 30, 2025, total equity attributable to owners of the parent increased, mainly due to profit for the period and employee share award scheme service value, partially offset by exchange fluctuations and declared dividends Changes in Equity Attributable to Owners of the Parent (Summary) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (RMB thousand) | | :--- | :--- | :--- | :--- | | Total Equity | 207,580 | 200,793 | +6,787 | | Profit for the Year | 10,919 | - | +10,919 | | Exchange Differences | (789) | - | (789) | | Employee Share Award Scheme – Employee Service Value | 40 | - | +40 | | Final Dividend Declared for 2024 | (3,383) | - | (3,383) | - For the six months ended June 30, 2024, total equity was **RMB 199,477 thousand**, and profit for the period was **RMB 7,757 thousand**[8](index=8&type=chunk) [Unaudited Condensed Consolidated Statement of Cash Flows](index=8&type=section&id=%E6%9C%AA%E7%BB%8F%E5%AE%A1%E6%A0%B8%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) During the reporting period, net cash flow from operating activities significantly decreased, net cash flow from investing activities remained positive, and net cash flow used in financing activities substantially increased, resulting in a decrease in cash and cash equivalents at period-end Condensed Consolidated Statement of Cash Flows (Summary) | Indicator | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | Change (RMB thousand) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 30,262 | 180,789 | -150,527 | | Net Cash Flow from Investing Activities | 164 | 142 | +22 | | Net Cash Flow Used in Financing Activities | (42,805) | (15,981) | -26,824 | | Net (Decrease)/Increase in Cash and Cash Equivalents | (12,379) | 164,950 | -177,329 | | Cash and Cash Equivalents at Period-End | 71,304 | 169,724 | -98,420 | - Net cash flow from operating activities significantly decreased, primarily due to the combined effects of reduced inventories, trade receivables, and prepayments[9](index=9&type=chunk) - Net cash flow used in financing activities increased, mainly due to increased repayment of bank and other borrowings and dividends paid[10](index=10&type=chunk) [Notes to the Unaudited Condensed Consolidated Interim Financial Information](index=10&type=section&id=%E6%9C%AA%E7%BB%8F%E5%AE%A1%E6%A0%B8%E4%B8%AD%E6%9C%9F%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E8%B4%A2%E5%8A%A1%E8%B5%84%E6%96%99%E9%99%84%E6%B3%A8) This section details the basis of preparation, accounting policies, segment information, specific components and changes of financial items, related party transactions, fair value of financial instruments, and other important disclosures, providing context for understanding the financial data [Company Information](index=10&type=section&id=%E5%85%AC%E5%8F%B8%E8%B5%84%E6%96%99) Edensoft Holdings Limited, incorporated in the Cayman Islands, primarily provides IT infrastructure services, IT implementation and business application services, and cloud and AI services through its subsidiaries in mainland China - The company was incorporated in the Cayman Islands on **September 4, 2018**, as an investment holding company[11](index=11&type=chunk) - Its principal business is providing IT infrastructure services, IT implementation and business application services, and cloud and AI services in mainland China[11](index=11&type=chunk) [Basis of Presentation](index=10&type=section&id=%E5%91%88%E5%88%97%E5%9F%BA%E5%87%86) The interim condensed consolidated financial information is prepared in accordance with HKAS 34 and the HKEX Listing Rules, and should be read in conjunction with the Group's annual consolidated financial statements for the year ended December 31, 2024 - The interim financial information is prepared in accordance with **HKAS 34** and the disclosure requirements of the Listing Rules[12](index=12&type=chunk) - It does not include all information and disclosures required in annual financial statements and should be read in conjunction with the **2024 annual consolidated financial statements**[12](index=12&type=chunk) [Changes in Accounting Policies and Disclosures](index=10&type=section&id=%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96%E5%8F%8A%E6%8A%AB%E9%9C%B2%E4%BA%8B%E9%A1%B9%E5%8F%98%E5%8A%A8) This period's financial information first adopted the revised HKFRSs, with the amendments to HKAS 21 regarding lack of exchangeability having no impact on the Group's interim condensed consolidated financial information - The accounting policies adopted in preparing the interim financial information are consistent with those in the 2024 annual consolidated financial statements, but revised HKFRSs were adopted for the first time[13](index=13&type=chunk) - The amendments to HKAS 21 regarding lack of exchangeability had no impact on the Group's interim condensed consolidated financial information, as the Group's transaction and functional currencies are exchangeable[14](index=14&type=chunk) [Segment Information](index=11&type=section&id=%E5%88%86%E9%83%A8%E8%B5%84%E6%96%99) The Group has three reportable operating segments: IT infrastructure services, IT implementation and business application services, and cloud and AI services; during the reporting period, revenue from cloud and AI services decreased, while revenue from IT infrastructure services and IT implementation and business application services increased Reportable Segment Revenue and Gross Profit Comparison | Segment | 2025 H1 Revenue (RMB thousand) | 2024 H1 Revenue (RMB thousand) | Revenue Change (%) | 2025 H1 Gross Profit (RMB thousand) | 2024 H1 Gross Profit (RMB thousand) | Gross Profit Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | IT Infrastructure Services | 168,895 | 147,126 | +14.8% | 13,943 | 15,216 | -8.3% | | IT Implementation and Business Application Services | 75,235 | 67,186 | +12.0% | 26,655 | 19,090 | +39.6% | | Cloud and AI Services | 211,581 | 289,272 | -26.9% | 13,348 | 27,529 | -51.5% | | **Total** | **455,711** | **503,584** | **-9.5%** | **53,946** | **61,835** | **-12.8%** | - Cloud and AI services include providing design, management, and technical support using cloud platforms (self-developed and third-party)[16](index=16&type=chunk) - IT infrastructure services involve assessing customer needs, recommending hardware/software products, procurement, and installation[16](index=16&type=chunk) [Revenue, Other Income and Gains](index=12&type=section&id=%E6%94%B6%E7%9B%8A%E3%80%81%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A) The Group's revenue primarily comes from IT infrastructure services, IT implementation and business application services, and cloud and AI services, with adjustments in cloud solution services and IT design and implementation services in H1 2025; Mainland China remains the main revenue source, with increased contribution from Hong Kong; other income mainly includes bank interest, government grants, and foreign exchange gains Revenue by Service Type and Geographical Market (Summary) | Service Type/Geographical Market | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | **Service Type** | | | | Sales of Software and/or Hardware Products and Related Services | 168,895 | 147,126 | | Sales of Solution-based Software and/or Hardware Products and Related Services | 46,005 | 25,802 | | IT Support and Maintenance Services | 11,866 | 8,596 | | IT Design and Implementation Services | 17,364 | 32,788 | | Cloud Solution Services | - | 285,644 | | Cloud Platform Design Services | 131,829 | 3,628 | | **Geographical Market** | | | | Mainland China | 409,800 | 489,233 | | Hong Kong | 45,914 | 14,351 | | **Timing of Revenue Recognition** | | | | At a point in time | 294,652 | 172,928 | | Over time | 161,059 | 330,656 | Other Income Comparison | Other Income Item | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Bank Interest Income | 222 | 154 | | Government Grants – Income Related | 573 | 820 | | Foreign Exchange Gains | 58 | - | | **Total** | **853** | **974** | [Profit Before Tax](index=13&type=section&id=%E9%99%A4%E7%A8%8E%E5%89%8D%E6%BA%A2%E5%88%A9) The Group's profit before tax increased during the reporting period, mainly due to reduced cost of sales, R&D expenses, employee benefit expenses, and net foreign exchange differences, partially offset by increased impairment of trade and bills receivables Profit Before Tax Deductions/(Additions) (Summary) | Item | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Cost of Goods Sold and Services Rendered | 401,765 | 441,749 | | Depreciation of Property, Plant and Equipment | 180 | 113 | | Depreciation of Right-of-Use Assets | 1,057 | 1,618 | | Research and Development Expenses | 15,200 | 22,975 | | Total Employee Benefit Expenses | 34,161 | 36,087 | | Net Foreign Exchange Differences | (58) | 914 | | Impairment of Trade and Bills Receivables | 2,846 | 1,392 | [Income Tax Expense](index=13&type=section&id=%E6%89%80%E5%BE%97%E7%A8%8E%E5%BC%80%E6%94%AF) The Group faces varying income tax policies across jurisdictions, with Cayman Islands and BVI being tax-exempt; Hong Kong profits tax is 16.5% (8.25% for eligible entities); Mainland China subsidiaries enjoy preferential tax rates based on high-tech enterprise or small and micro enterprise qualifications, resulting in an income tax credit during the reporting period - Cayman Islands and British Virgin Islands are exempt from any taxation[20](index=20&type=chunk)[21](index=21&type=chunk) - Hong Kong profits tax is levied at **16.5%**, with eligible subsidiaries taxed at **8.25%** on the first **HKD 2,000,000** of assessable profits[21](index=21&type=chunk) - Mainland China subsidiaries enjoy preferential tax rates: high-tech enterprises (**15%**), small and micro enterprises (**5%** on the first **RMB 1,000,000**, **10%** on the remaining less than **RMB 3,000,000**)[22](index=22&type=chunk) Total Income Tax Credit | Item | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Deferred | (500) | (380) | | **Total Tax Credit for the Period** | **(500)** | **(380)** | [Finance Costs](index=14&type=section&id=%E8%9E%8D%E8%B5%84%E6%88%90%E6%9C%AC) During the reporting period, the Group's finance costs significantly decreased, primarily due to reduced interest on bank loans and lease liabilities Finance Costs Comparison | Item | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Interest on Bank Loans | 405 | 1,006 | | Interest on Lease Liabilities | 68 | 136 | | **Total** | **473** | **1,142** | [Dividends](index=14&type=section&id=%E8%82%A1%E6%81%AF) The company approved a final dividend of HK 0.18 cents per share for 2024 on May 23, 2025, totaling HKD 3,681,000, which was fully paid on June 23, 2025 - A final dividend of **HK 0.18 cents per share** for 2024, totaling **HKD 3,681,000**, was approved on May 23, 2025[24](index=24&type=chunk) - The related dividend was fully paid on June 23, 2025[24](index=24&type=chunk) [Earnings Per Share Attributable to Ordinary Equity Holders of the Parent](index=14&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E6%99%AE%E9%80%9A%E6%AC%8A%E7%9B%8A%E6%8C%81%E6%9C%89%E4%BA%BA%E6%87%89%E4%BD%94%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) For the six months ended June 30, 2025, basic and diluted earnings per share attributable to owners of the parent were RMB 0.53 cents, an increase from RMB 0.38 cents in the prior year, calculated based on profit for the period and weighted average number of ordinary shares outstanding Earnings Per Share Comparison | Indicator | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Profit Attributable to Owners of the Parent for the Period | RMB 10,900,000 | RMB 7,800,000 | | Weighted Average Number of Ordinary Shares Outstanding | 2,044,947,350 shares | 2,044,947,350 shares | | Basic and Diluted Earnings Per Share | RMB 0.53 cents | RMB 0.38 cents | - The Group had no potentially dilutive ordinary shares outstanding during the reporting period[25](index=25&type=chunk) [Property, Plant and Equipment](index=14&type=section&id=%E7%89%A9%E4%B8%9A%E3%80%81%E5%8E%82%E6%88%BF%E5%8F%8A%E8%AE%BE%E5%A4%87) For the six months ended June 30, 2025, the Group's cost of assets purchased was RMB 58,379, an increase from the prior year Asset Purchase Cost Comparison | Item | 2025 H1 (RMB) | 2024 H1 (RMB) | | :--- | :--- | :--- | | Cost of Assets Purchased | 58,379 | 11,574 | - Assets with zero net book value were disposed of during the reporting period[26](index=26&type=chunk) [Trade and Bills Receivables](index=15&type=section&id=%E8%B4%B8%E6%98%93%E5%BA%94%E6%94%B6%E6%AC%BE%E9%A1%B9%E5%8F%8A%E5%BA%94%E6%94%B6%E7%A5%A8%E6%8D%AE) As of June 30, 2025, the Group's net trade receivables increased, while bills receivables significantly decreased, leading to an overall decline in total trade and bills receivables; overdue balances are regularly reviewed by senior management Trade and Bills Receivables Comparison | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Receivables | 188,774 | 172,328 | | Impairment | (23,701) | (20,855) | | Net Trade Receivables | 165,073 | 151,473 | | Bills Receivables | 262 | 30,688 | | **Total** | **165,335** | **182,161** | Ageing Analysis of Trade Receivables | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 6 months | 131,759 | 123,330 | | 6 to 12 months | 25,018 | 19,557 | | Over 12 months | 31,997 | 29,441 | | **Total** | **188,774** | **172,328** | [Trade and Bills Payables](index=16&type=section&id=%E8%B4%B8%E6%98%93%E5%BA%94%E4%BB%98%E6%AC%BE%E9%A1%B9%E5%8F%8A%E5%BA%94%E4%BB%98%E7%A5%A8%E6%8D%AE) As of June 30, 2025, the Group's total trade and bills payables significantly decreased, primarily due to a substantial reduction in payables within 30 days Ageing Analysis of Trade Payables | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 30 days | 100,672 | 154,339 | | 31 to 60 days | 1,793 | 3,868 | | 61 to 90 days | – | 1,337 | | Over 90 days | 4,926 | 2,549 | | **Total** | **107,391** | **162,093** | - Trade payables are non-interest bearing and typically settled within **30 to 90 days**, with carrying amounts approximating fair values[30](index=30&type=chunk) [Share Capital](index=16&type=section&id=%E8%82%A1%E6%9C%AC) As of June 30, 2025, the company's issued and fully paid share capital remained unchanged at 2,044,947,350 ordinary shares of HKD 0.01 each, equivalent to RMB 18,654,000 Share Capital Information | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of Issued and Fully Paid Ordinary Shares | 2,044,947,350 shares | 2,044,947,350 shares | | Par Value Per Share | HKD 0.01 | HKD 0.01 | | RMB Equivalent | RMB 18,654,000 | RMB 18,654,000 | [Pledged Assets](index=16&type=section&id=%E8%B5%84%E4%BA%A7%E8%B4%A8%E6%8A%BC) As of June 30, 2025, pledged bank deposits of RMB 4,786,000 were restricted due to judicial freezing - As of June 30, 2025, pledged bank deposits of **RMB 4,786,000** were restricted due to judicial freezing[32](index=32&type=chunk) [Related Party Transactions and Balances](index=16&type=section&id=%E5%85%B3%E8%81%94%E6%96%B9%E4%BA%A4%E6%98%93%E5%8F%8A%E7%BB%93%E4%BD%99) The Group's bank financing and borrowings are guaranteed by controlling shareholder Ms. Ding Xinyun, and key management personnel's remuneration slightly increased during the reporting period Bank Financing and Borrowings Guaranteed by Related Party | Guarantor | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Ms. Ding Xinyun (Controlling Shareholder) | 175,000 | 175,000 | Key Management Personnel Remuneration Comparison | Item | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Salaries, Allowances and Benefits in Kind | 1,666 | 1,648 | | Contributions to Retirement Benefit Schemes | 146 | 95 | | **Total** | **1,812** | **1,743** | [Fair Value and Fair Value Hierarchy of Financial Instruments](index=17&type=section&id=%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7%E4%B9%8B%E5%85%AC%E5%85%81%E4%BB%B7%E5%80%BC%E5%8F%8A%E5%85%AC%E5%85%81%E4%BB%B7%E5%80%BC%E5%B1%82%E7%BA%A7) The fair values of the Group's financial assets and liabilities approximate their respective carrying amounts, mainly due to their short-term maturity; the company has a corporate finance team responsible for fair value measurement policies and procedures, approved by the CFO - The fair values of the Group's financial assets and financial liabilities approximate their respective carrying amounts, mainly due to their short-term maturity[36](index=36&type=chunk) - The corporate finance team is responsible for determining policies and procedures for fair value measurement of financial instruments, reporting directly to the Chief Financial Officer, with valuations approved by the Chief Financial Officer[37](index=37&type=chunk) [Events After the Reporting Period](index=17&type=section&id=%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%90%8E%E4%BA%8B%E9%A1%B9) The Group had no significant events after June 30, 2025, up to the date of approval of the financial statements - The Group had no significant events after June 30, 2025, and up to the date of approval of the financial statements[38](index=38&type=chunk) [Approval of Unaudited Condensed Consolidated Interim Financial Statements](index=17&type=section&id=%E6%9C%AA%E7%BB%8F%E5%AE%A1%E6%A0%B8%E4%B8%AD%E6%9C%9F%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E4%B9%8B%E6%89%B9%E5%87%86) The unaudited condensed consolidated interim financial statements were approved and authorized for issue by the Board on August 22, 2025 - The unaudited condensed consolidated interim financial statements were approved and authorized for issue by the Board on **August 22, 2025**[39](index=39&type=chunk) [Management Discussion and Analysis](index=18&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E5%8F%8A%E5%88%86%E6%9E%90) This section provides a detailed review of the company's business performance during the reporting period, particularly advancements in cloud services and generative AI, and outlines future strategic directions, along with an in-depth analysis of financial position, corporate governance, employee policies, and other important matters [Business Review](index=18&type=section&id=%E4%B8%9A%E5%8A%A1%E5%9B%9E%E9%A1%B1) In H1 2025, the Group adhered to its Data+AI strategy, leveraging AI R&D capabilities and IT infrastructure and cloud service advantages to rapidly implement AI vertical industry applications and drive product AI-ization and high-value transformation, achieving significant results - The Group adhered to its **Data+AI strategy**, leveraging AI R&D capabilities and IT infrastructure and cloud service advantages to rapidly implement AI vertical industry applications[40](index=40&type=chunk) - It promoted product AI-ization and high-value transformation, achieving significant operating results and positive market feedback[40](index=40&type=chunk) [Core Business – Cloud Services and Generative AI](index=18&type=section&id=%E6%A0%B8%E5%BF%83%E4%B8%9A%E5%8A%A1%EF%BC%8D%E4%BA%91%E6%9C%8D%E5%8A%A1%E5%8F%8A%E7%94%9F%E6%88%90%E5%BC%8FAI) During the reporting period, cloud services and generative AI business revenue was approximately RMB 211.6 million, with a gross profit margin of 6.3%; the Group, as an independent third-party cloud managed service provider, offers comprehensive cloud solutions; its self-developed Yi AI Enterprise Intelligent Assistant and eCopilot Office AI Assistant rapidly responded to the market, obtaining multiple certifications and successfully deploying in finance, retail, and education sectors Cloud Services and Generative AI Business Performance | Indicator | 2025 H1 | | :--- | :--- | | Business Revenue | Approximately RMB 211.6 million | | Gross Profit Margin | 6.3% | - The Group acts as an independent third-party cloud managed service provider (MSP), offering domestic and international basic cloud resources and comprehensive cloud solutions[41](index=41&type=chunk) - Self-developed Yi AI Enterprise Intelligent Assistant and eCopilot Office AI Assistant have passed Huawei Cloud platform professional certification, Huawei Kunpeng/Ascend domestic technology certification, and successfully listed on AWS overseas Marketplace, achieving scaled deployment in finance, retail, and education markets[42](index=42&type=chunk)[44](index=44&type=chunk)[45](index=45&type=chunk)[46](index=46&type=chunk) [IT Infrastructure Services](index=20&type=section&id=IT%E5%9F%BA%E7%A1%80%E8%AE%BE%E6%96%BD%E6%9C%8D%E5%8A%A1) During the reporting period, IT infrastructure services revenue was RMB 168.9 million, a 14.8% year-on-year increase, with a gross profit margin of 8.3%, a 2.0% year-on-year decrease; the Group, through its partnership with H3C, holds a leading position in virtualization services IT Infrastructure Services Business Performance | Indicator | 2025 H1 | Year-on-Year Growth | | :--- | :--- | :--- | | Business Revenue | RMB 168.9 million | 14.8% | | Gross Profit Margin | 8.3% | Decreased by 2.0% | - The Group's IT infrastructure services cover hardware, network components, operating systems, data storage, and technical operation and maintenance services[47](index=47&type=chunk) - Successfully joined the "H3C Virtualization Software Sales Alliance," aiming to secure a leading position in the domestic virtual machine market[47](index=47&type=chunk) [IT Implementation and Business Application Services](index=20&type=section&id=IT%E5%AE%9E%E6%96%BD%E5%8F%8A%E5%95%86%E4%B8%9A%E5%BA%94%E7%94%A8%E6%9C%8D%E5%8A%A1) During the reporting period, IT implementation and business application services revenue was approximately RMB 75.2 million, a 12.0% year-on-year increase, with a gross profit margin of 35.4%, a 7.0% year-on-year increase; the Group provides business application, data and cybersecurity, infrastructure, and modern office solutions to enterprises using AI-driven tools and digital transformation methods; as a key Huawei Cloud ecosystem partner, the Group participates in the "Huawei Cloud AI Application Innovation Leading Program" IT Implementation and Business Application Services Business Performance | Indicator | 2025 H1 | Year-on-Year Growth | | :--- | :--- | :--- | | Business Revenue | Approximately RMB 75.2 million | 12.0% | | Gross Profit Margin | 35.4% | Increased by 7.0% | - The Group utilizes AI-driven tools and comprehensive digital transformation methods to provide business application, data and cybersecurity, infrastructure, and modern office solutions[48](index=48&type=chunk) - As a key Huawei Cloud ecosystem partner, it was invited to participate in the "Huawei Cloud AI Application Innovation Leading Program" to accelerate AI application deployment across various industries[49](index=49&type=chunk) [Outlook](index=21&type=section&id=%E5%B1%95%E6%9C%9B) The Group will continue to advance its Data+AI strategy, especially in GenAI, by iterating and innovating AI products, promoting the deployment of core AI products across multiple industries, and enhancing product value and profitability through AI, to capitalize on the strong growth opportunities in the cloud and AI market - Gartner data shows the global cloud computing market reached **USD 692.9 billion** in 2024, with a **20.3%** year-on-year growth, projected to approach **USD 2 trillion** by 2030[50](index=50&type=chunk) - The Group will fully commit to its **Data+AI strategy**, particularly in the **GenAI domain**, continuously monitoring global top large models and GenAI trends, and providing competitive customized solutions that meet customer business requirements[50](index=50&type=chunk) [Continuously Advancing Data+AI Strategy and Iterating AI Product Innovation](index=21&type=section&id=%E6%8C%81%E7%BB%AD%E6%8E%A8%E8%BF%9BData%2BAI%E6%88%98%E7%95%A5%EF%BC%8C%E8%BF%AD%E4%BB%A3%E5%88%9B%E6%96%B0AI%E4%BA%A7%E5%93%81) The Group will fully commit to its Data+AI strategy, especially in GenAI, continuously monitoring global top large models and GenAI trends, and providing competitive customized solutions, aiming to take a proactive stance in the new wave of intelligence and achieve long-term sustainable business growth - The Group will fully commit to its **Data+AI strategy**, particularly in the **GenAI domain**, continuously monitoring global top large models and GenAI trends[50](index=50&type=chunk) - It aims to provide competitive customized solutions that meet customer business requirements, taking a proactive stance in the new wave of intelligence to achieve long-term sustainable business growth[50](index=50&type=chunk) [Promoting Multi-Industry Deployment of Core AI Products](index=21&type=section&id=%E6%8E%A8%E5%8A%A8%E6%A0%B8%E5%BF%83AI%E4%BA%A7%E5%93%81%E5%A4%9A%E8%A1%8C%E4%B8%9A%E8%90%BD%E5%9C%B0) eCopilot, an AI office assistant plugin, has completed localization and domestic technology adaptation, and successfully listed on leading domestic and international cloud vendor marketplaces, with future plans to enhance industry-specific customization capabilities; Yi AI Enterprise Intelligent Assistant, a commercial enterprise intelligent application platform, supports AI Agent and MCP toolbox, transforming AI from a general capability into industry productivity, enabling replicable and scalable solutions - eCopilot has completed localization and domestic technology adaptation, and successfully listed on leading domestic and international cloud vendor marketplaces, with future plans to enhance industry-specific customization capabilities[51](index=51&type=chunk) - Yi AI Enterprise Intelligent Assistant supports **AI Agent** and **MCP toolbox**, enabling deep integration with various vertical industries, transforming AI from a general capability into industry productivity[52](index=52&type=chunk) - By deeply understanding customer business needs, it aims to achieve deep application of AI in enterprise business and form replicable and scalable solutions[52](index=52&type=chunk) [AI-Driven Enhancement of Product Value and Profitability](index=22&type=section&id=AI%E9%A9%B1%E5%8A%A8%E4%BA%A7%E5%93%81%E4%BB%B7%E5%80%BC%E5%92%8C%E7%9B%88%E5%88%A9%E8%83%BD%E5%8A%9B%E6%8F%90%E5%8D%87) The company significantly enhances the value of its self-developed products through vigorous R&D and promotion of AI products and deep application of AI technology, committed to continuous growth in product value and sustainable improvement in profitability - Deep application of AI technology in products has significantly enhanced the value of the company's self-developed products[53](index=53&type=chunk) - The company is committed to continuously growing product value and sustainably improving profitability through vigorous R&D and promotion of AI products[53](index=53&type=chunk) [Financial Review](index=22&type=section&id=%E8%B4%A2%E5%8A%A1%E5%9B%9E%E9%A1%B1) This section details the changes in various financial indicators during the reporting period, including revenue, costs, profits, expenses, impairments, finance costs, taxes, profit for the period, pledged assets, capital expenditures, prepayments, litigation, liquidity, and capital structure, revealing the drivers and risk profile of the company's financial performance - Profit attributable to owners of the parent was approximately **RMB 10.9 million**, an increase of approximately **40.8%** compared to the same period last year[66](index=66&type=chunk) - As of June 30, 2025, the Group's gearing ratio was **15.6%**, a significant decrease from **38.0%** as of December 31, 2024[72](index=72&type=chunk) [Revenue](index=22&type=section&id=%E6%94%B6%E7%9B%8A) For the six months ended June 30, 2025, the Group's revenue was approximately RMB 455.7 million, a 9.5% year-on-year decrease, primarily due to reduced revenue from the cloud and AI services segment Revenue Comparison | Indicator | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 455.7 | 503.6 | -9.5% | - The decrease in revenue was primarily due to a reduction in the cloud and AI services segment compared to the same period last year[54](index=54&type=chunk) [Cost of Sales](index=22&type=section&id=%E9%94%80%E5%94%AE%E6%88%90%E6%9C%AC) The Group's cost of sales decreased by 9.1% from approximately RMB 441.7 million in the same period of 2024 to approximately RMB 401.8 million in H1 2025, a reduction broadly consistent with the decrease in revenue for the period Cost of Sales Comparison | Indicator | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Cost of Sales | 401.8 | 441.7 | -9.1% | - The decrease in cost of sales was broadly consistent with the decrease in revenue for the same period[55](index=55&type=chunk) [Gross Profit and Gross Profit Margin](index=22&type=section&id=%E6%AF%9B%E5%88%A9%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87) The Group's gross profit decreased by 12.8% from approximately RMB 61.8 million in the same period of 2024 to approximately RMB 53.9 million in H1 2025; the gross profit margin decreased from 12.3% to 11.8%, mainly due to lower margins to expand existing customers and win orders Gross Profit and Gross Profit Margin Comparison | Indicator | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Gross Profit | 53,946 | 61,835 | -12.8% | | Gross Profit Margin | 11.8% | 12.3% | -0.5 percentage points | - The decrease in gross profit margin was primarily due to lower margins to expand new industry customers and win orders[57](index=57&type=chunk) [Other Income and Gains](index=23&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A) Other income and gains decreased by 12.4% from approximately RMB 1.0 million in the same period of 2024 to approximately RMB 0.9 million in H1 2025, mainly due to reduced government grants during the reporting period Other Income and Gains Comparison | Indicator | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Other Income and Gains | 0.9 | 1.0 | -12.4% | - The decrease was primarily due to reduced government grants during the reporting period[58](index=58&type=chunk) [Selling and Distribution Expenses](index=23&type=section&id=%E9%94%80%E5%94%AE%E5%8F%8A%E5%88%86%E9%94%80%E5%BC%80%E6%94%AF) Selling and distribution expenses decreased by 6.3% from approximately RMB 16.2 million in the same period of 2024 to approximately RMB 15.2 million in H1 2025, primarily due to a decrease in staff costs Selling and Distribution Expenses Comparison | Indicator | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Selling and Distribution Expenses | 15.2 | 16.2 | -6.3% | - The decrease was primarily due to a decrease in staff costs incurred during the reporting period[59](index=59&type=chunk) [Administrative Expenses](index=23&type=section&id=%E8%A1%8C%E6%94%BF%E5%BC%80%E6%94%AF) Administrative expenses decreased by 20.1% from approximately RMB 12.8 million in the same period of 2024 to approximately RMB 10.2 million in H1 2025, primarily due to a decrease in staff costs Administrative Expenses Comparison | Indicator | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Administrative Expenses | 10.2 | 12.8 | -20.1% | - The decrease was primarily due to a decrease in staff costs incurred during the reporting period[60](index=60&type=chunk) [Research and Development Expenses](index=23&type=section&id=%E7%A0%94%E7%A9%B6%E5%8F%8A%E5%BC%80%E5%8F%91%E5%BC%80%E6%94%AF) Research and development expenses decreased by 33.8% from approximately RMB 23.0 million in the same period of 2024 to approximately RMB 15.2 million in H1 2025, primarily due to a strategic adjustment in the direction of some projects, leading to a short-term cost reduction Research and Development Expenses Comparison | Indicator | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Research and Development Expenses | 15.2 | 23.0 | -33.8% | - The decrease was primarily due to a strategic adjustment in the direction of some projects during the reporting period, leading to a short-term cost reduction[61](index=61&type=chunk) [Other Expenses](index=23&type=section&id=%E5%85%B6%E4%BB%96%E5%BC%80%E6%94%AF) The Group's other expenses decreased by 55.3% from approximately RMB 1.0 million in the same period of 2024 to approximately RMB 0.4 million in H1 2025, primarily due to a narrower fluctuation in the RMB exchange rate against the USD, leading to reduced foreign exchange losses Other Expenses Comparison | Indicator | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Other Expenses | 0.4 | 1.0 | -55.3% | - The decrease was primarily due to a narrower fluctuation in the RMB exchange rate against the USD during the reporting period, leading to reduced foreign exchange losses for the Group[62](index=62&type=chunk) [Impairment Recognized](index=24&type=section&id=%E7%A1%AE%E8%AE%A4%E5%87%8F%E5%80%BC) During the reporting period, the Group recognized an impairment of approximately RMB 2.9 million for trade and bills receivables, an increase from approximately RMB 1.4 million in the same period of 2024, due to higher bad debt provisions based on the ageing of receivables Impairment of Trade and Bills Receivables Comparison | Indicator | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Impairment of Trade and Bills Receivables | 2.9 | 1.4 | +107.1% | - The increase in impairment was due to higher bad debt provisions based on the ageing of receivables[63](index=63&type=chunk) [Finance Costs](index=24&type=section&id=%E8%9E%8D%E8%B5%84%E6%88%90%E6%9C%AC) Finance costs decreased by 58.6% from approximately RMB 1.1 million in the same period of 2024 to approximately RMB 0.5 million in H1 2025, due to reduced borrowings and interest expenses during the reporting period Finance Costs Comparison | Indicator | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Finance Costs | 0.5 | 1.1 | -58.6% | - The decrease was due to reduced borrowings and interest expenses during the reporting period[64](index=64&type=chunk) [Income Tax Credit](index=24&type=section&id=%E6%89%80%E5%BE%97%E7%A8%8E%E6%8A%B5%E5%85%8D) Income tax credit increased by 31.5% from approximately RMB 0.4 million in the same period of 2024 to approximately RMB 0.5 million in H1 2025, primarily due to an increase in deferred tax credit resulting from increased provisions for trade receivables Income Tax Credit Comparison | Indicator | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Income Tax Credit | 0.5 | 0.4 | +31.5% | - The increase in deferred tax credit was primarily due to increased provisions for trade receivables during the six months ended June 30, 2025[65](index=65&type=chunk) [Profit Attributable to Owners of the Parent for the Period](index=24&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E6%8B%A5%E6%9C%89%E4%BA%BA%E5%BA%94%E4%BD%94%E6%9C%9F%E5%86%85%E6%BA%A2%E5%88%A9) The Group recorded a profit attributable to owners of the parent of approximately RMB 10.9 million during the reporting period, an increase of 40.8% compared to approximately RMB 7.8 million in the same period of 2024 Profit Attributable to Owners of the Parent for the Period Comparison | Indicator | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Profit Attributable to Owners of the Parent for the Period | 10.9 | 7.8 | +40.8% | [Pledged Assets](index=24&type=section&id=%E8%B5%84%E4%BA%A7%E8%B4%A8%E6%8A%BC) As of June 30, 2025, pledged bank deposits of approximately RMB 4.8 million were restricted due to judicial freezing related to litigation - As of June 30, 2025, pledged bank deposits of approximately **RMB 4.8 million** were restricted due to judicial freezing related to litigation[67](index=67&type=chunk) [Capital Expenditure and Commitments](index=24&type=section&id=%E8%B5%84%E6%9C%AC%E5%BC%80%E6%94%AF%E5%8F%8A%E6%89%BF%E6%8B%84) As of June 30, 2025, the Group's capital expenditure for equipment purchases was RMB 58,379, an increase from December 31, 2024; the Group had no contracted but unprovided commitments Capital Expenditure Comparison | Indicator | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Capital Expenditure for Equipment Purchases | 58,379 | 36,000 | - As of June 30, 2025, the Group had no contracted but unprovided commitments[68](index=68&type=chunk) [Prepayments, Deposits and Other Receivables](index=25&type=section&id=%E9%A2%84%E4%BB%98%E6%AC%BE%E9%A1%B9%E3%80%81%E6%8C%89%E9%87%91%E5%8F%8A%E5%85%B6%E4%BB%96%E5%BA%94%E6%94%B6%E6%AC%BE%E9%A1%B9) As of June 30, 2025, the Group's prepayments, deposits, and other receivables were approximately RMB 12.6 million, a 42.6% decrease from December 31, 2024, primarily due to a reduction in tax receivables (recoverable VAT) Prepayments, Deposits and Other Receivables Comparison | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Prepayments, Deposits and Other Receivables | 12.6 | 21.9 | -42.6% | - The decrease was primarily due to a reduction of approximately **RMB 7.7 million** in tax receivables (i.e., recoverable VAT) during the reporting period[69](index=69&type=chunk) [Litigation and Contingent Liabilities](index=25&type=section&id=%E8%AF%89%E8%AE%BC%E5%8F%8A%E6%88%96%E7%84%B6%E8%B4%9F%E5%80%BA) Shenzhen Edensoft, a subsidiary of the Group, was claimed by a supplier for contract payment disputes, resulting in approximately RMB 4.8 million in its bank accounts being judicially frozen; other than this, the Group had no significant contingent liabilities - Shenzhen Edensoft was claimed by a supplier for contract payment disputes (approximately **RMB 3.38 million**)[70](index=70&type=chunk) - As of June 30, 2025, approximately **RMB 4.8 million** in Shenzhen Edensoft's bank accounts was judicially frozen[70](index=70&type=chunk) - Other than the above disclosure, the Group had no significant contingent liabilities[70](index=70&type=chunk) [Liquidity and Financial Resources](index=25&type=section&id=%E6%B5%81%E5%8A%A8%E8%B5%84%E9%87%91%E5%8F%8A%E8%B4%A2%E5%8A%A1%E8%B5%84%E6%BA%90) As of June 30, 2025, the Group's total current assets and cash and cash equivalents both decreased, but total equity increased; the gearing ratio significantly decreased to 15.6% Liquidity and Financial Resources Comparison | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Current Assets | 319.0 | 416.2 | -23.4% | | Cash and Cash Equivalents | 71.3 | 84.2 | -15.3% | | Pledged Deposits | 4.8 | 4.8 | 0% | | Total Equity | 207.6 | 200.8 | +3.4% | | Gearing Ratio | 15.6% | 38.0% | -22.4 percentage points | [Capital Structure and Exchange Rate Risk](index=26&type=section&id=%E8%B5%84%E6%9C%AC%E6%9E%B6%E6%9E%84%E5%8F%8A%E6%B1%87%E7%8E%87%E9%A3%8E%E9%99%A9) The Group's capital structure comprises debt and equity attributable to owners of the parent; the Board reviews the capital structure semi-annually and considers balancing it through new share issues, share repurchases, new debt issuance, or redemption of existing debt; the Group's monetary assets, liabilities, and transactions are primarily denominated in RMB, with no exchange rate hedging, but risks are closely monitored - The Group's capital structure comprises debt (interest-bearing bank borrowings, lease liabilities, financial liabilities from trade and other payables) and equity attributable to owners of the parent[74](index=74&type=chunk) - The Board reviews the capital structure semi-annually and considers balancing it through new share issues, share repurchases, new debt issuance, or redemption of existing debt[74](index=74&type=chunk) - The Group's monetary assets, liabilities, and transactions are primarily denominated in RMB, with no exchange rate hedging, but this risk is closely monitored[74](index=74&type=chunk) [Interest Rate Risk](index=26&type=section&id=%E5%88%A9%E7%8E%87%E9%A3%8E%E9%99%A9) The Group faces fair value interest rate risk from fixed-rate bank borrowings and cash flow interest rate risk from market interest rate fluctuations on bank deposits and borrowings; the Group has not entered into derivative agreements or used financial instruments to hedge interest rate risk, but management monitors and considers hedging when necessary - The Group faces fair value interest rate risk from fixed-rate bank borrowings and cash flow interest rate risk from market interest rate fluctuations on bank deposits and borrowings[75](index=75&type=chunk) - The Group has not entered into derivative agreements or used financial instruments to hedge interest rate risk[75](index=75&type=chunk) - Management monitors interest rate risk and will consider hedging significant interest rate risks when necessary[75](index=75&type=chunk) [Employees and Remuneration Policy](index=26&type=section&id=%E5%83%B1%E5%91%98%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June 30, 2025, the Group employed 251 staff, with total employee benefit expenses of approximately RMB 34.2 million; remuneration policy considers market levels, employee responsibilities, and Group performance, offering basic salaries, fringe benefits, and discretionary bonuses; the Group also provides continuous education and training, and has adopted a share option scheme to attract and retain talent Employee Headcount and Benefit Expenses Comparison | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Employee Headcount | 251 persons | 234 persons | | Total Employee Benefit Expenses | Approximately RMB 34.2 million | Approximately RMB 36.1 million | - Remuneration is determined by reference to market salary levels paid by comparable companies, individual employee responsibilities, and the Group's performance[76](index=76&type=chunk) - The Group provides continuous education and training courses, and has adopted a share option scheme to recognize and reward employee contributions[77](index=77&type=chunk) [Share Option Scheme](index=27&type=section&id=%E8%B4%AD%E8%82%A1%E6%9D%83%E8%AE%A1%E5%88%92) The company adopted a share option scheme on April 14, 2020, to attract and retain talent and promote business development; as of June 30, 2025, no share options were granted, exercised, cancelled, or lapsed - The company adopted a share option scheme on **April 14, 2020**, to attract and retain competent personnel and provide additional incentives[78](index=78&type=chunk) - As of June 30, 2025, no share options were granted, exercised, cancelled, or lapsed[78](index=78&type=chunk) [Share Award Scheme](index=27&type=section&id=%E8%82%A1%E4%BB%BD%E5%A5%96%E5%8A%B1%E8%AE%A1%E5%88%92) The company adopted a share award scheme to reward eligible participants who contribute to the Group's business success; the scheme became effective on November 9, 2021, for a period of 10 years; on March 23, 2022, the Board granted 44,947,350 award shares to 42 selected employees - The company adopted a share award scheme to reward eligible participants who contribute to the Group's business success[79](index=79&type=chunk) - The scheme became effective on **November 9, 2021**, for a period of **10 years** from the adoption date[79](index=79&type=chunk) - On **March 23, 2022**, the Board granted **44,947,350 award shares** to **42 selected employees**, representing approximately **2.25%** of the issued share capital at the adoption date[81](index=81&type=chunk) [Dividends](index=28&type=section&id=%E8%82%A1%E6%81%AF) The Board does not recommend an interim dividend for the reporting period - The Board does not recommend an interim dividend for the reporting period (June 30, 2024: nil)[82](index=82&type=chunk) [Material Investments, Significant Acquisitions or Disposals of Subsidiaries and Affiliated Companies](index=28&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B5%84%E3%80%81%E9%99%84%E5%B1%9E%E5%85%AC%E5%8F%B8%E5%8F%8A%E8%81%94%E5%B1%9E%E5%85%AC%E5%8F%B8%E4%B9%8B%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B4%AD%E6%88%96%E5%87%BA%E5%94%AE) The Group held no material investments or conducted any significant acquisitions or disposals of subsidiaries and affiliated companies during the reporting period, nor did it have any plans for material investments or capital assets - The Group held no material investments or conducted any significant acquisitions or disposals of subsidiaries and affiliated companies during the reporting period[83](index=83&type=chunk) - As of June 30, 2025, the Group had no plans for material investments or capital assets[83](index=83&type=chunk) [Repurchase, Sale or Redemption of the Company's Securities](index=28&type=section&id=%E8%B4%AD%E5%9B%9E%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B5%8E%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B9%8B%E8%AF%81%E5%88%B8) For the six months ended June 30, 2025, and up to the date of this announcement, neither the company nor any of its subsidiaries repurchased, sold, or redeemed any of the company's securities, and the company held no treasury shares - For the six months ended June 30, 2025, and up to the date of this announcement, neither the company nor any of its subsidiaries repurchased, sold, or redeemed any of the company's securities[84](index=84&type=chunk) - As of June 30, 2025, the company held no treasury shares[84](index=84&type=chunk) [Compliance with Corporate Governance Code](index=28&type=section&id=%E9%81%B5%E5%AE%88%E4%BC%81%E4%B8%9A%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%88%99) The company is committed to high standards of corporate governance and has complied with Appendix C1 of the Listing Rules Corporate Governance Code, except for a deviation from code provision C.2.1 (non-segregation of roles of Chairman and Chief Executive); the Board believes Ms. Ding Xinyun's dual role benefits the Group's operations and management and will review the role segregation when appropriate - The company has complied with Appendix C1 of the Listing Rules Corporate Governance Code, except for a deviation from code provision C.2.1[85](index=85&type=chunk) - Code provision C.2.1 stipulates that the roles of Chairman and Chief Executive should be separate and not performed by the same individual; Ms. Ding Xinyun holds both positions[86](index=86&type=chunk) - The Board believes Ms. Ding's dual role benefits the Group's business operations and management and will review the role segregation when appropriate[86](index=86&type=chunk)[87](index=87&type=chunk) [Standard Code for Securities Transactions by Directors](index=29&type=section&id=%E8%91%A3%E4%BA%8B%E8%BF%9B%E8%A1%8C%E8%AF%81%E5%88%B8%E4%BA%A4%E6%98%93%E4%B9%8B%E6%A0%87%E5%87%86%E5%AE%88%E5%88%99) The company has adopted the Standard Code set out in Appendix C3 of the Listing Rules as the code of conduct for directors' securities transactions; upon enquiry, all directors confirmed compliance with the required dealing standards during the reporting period - The company has adopted the Standard Code set out in Appendix C3 of the Listing Rules as its code of conduct for directors' securities transactions[88](index=88&type=chunk) - All directors confirmed compliance with the required dealing standards set out in the Standard Code for the six months ended June 30, 2025, and up to the date of this announcement[88](index=88&type=chunk) [Review of Results by Audit Committee](index=29&type=section&id=%E5%AE%A1%E6%A0%B8%E5%A7%94%E5%91%98%E4%BC%9A%E5%AE%A1%E9%98%85%E4%B8%9A%E7%BB%A9) The company's Audit Committee has reviewed the Group's unaudited condensed consolidated interim results for the period ended June 30, 2025, and found the statements to comply with applicable accounting standards, Listing Rules, and legal requirements, with sufficient disclosures made - The Audit Committee has reviewed the Group's unaudited condensed consolidated interim results for the period ended June 30, 2025[89](index=89&type=chunk) - The Audit Committee believes the statements comply with applicable accounting standards, Listing Rules, and legal requirements, and that sufficient disclosures have been made[89](index=89&type=chunk) [Events After the Reporting Period](index=29&type=section&id=%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%90%8E%E4%BA%8B%E9%A1%B9) The Group had no significant events after June 30, 2025, up to the date of approval of the financial statements - The Group had no significant events after June 30, 2025, and up to the date of approval of the financial statements[90](index=90&type=chunk) [Publication of Interim Results Announcement and 2025 Interim Report on HKEX and Company Websites](index=30&type=section&id=%E4%BA%8E%E8%81%94%E4%BA%A4%E6%89%80%E7%BD%91%E7%AB%99%E5%8F%8A%E6%9C%AC%E5%85%AC%E5%8F%B8%E7%BD%91%E7%AB%99%E7%99%BB%E8%BD%BD%E4%B8%AD%E6%9C%9F%E4%B8%9A%E7%BB%A9%E5%85%AC%E5%91%8A%E5%8F%8A%E4%BA%8C%E9%9B%B6%E4%BA%8C%E4%BA%94%E5%B9%B4%E4%B8%AD%E6%9C%9F%E6%8A%A5%E5%91%8A) This interim results announcement has been published on the HKEX website and the company's website, and the 2025 Interim Report, containing all information required by the Listing Rules, will be published on the aforementioned websites in due course - This interim results announcement has been published on the HKEX website (www.hkexnews.hk) and the company's website (www.edensoft.com.cn)[91](index=91&type=chunk) - The 2025 Interim Report, containing all information required by the Listing Rules, will be published on the aforementioned websites in due course[91](index=91&type=chunk) [Board of Directors](index=30&type=section&id=%E8%91%A3%E4%BA%8B%E4%BC%9A) As of the date of this announcement, the Board of Directors includes Executive Directors Ms. Ding Xinyun (Chairman and Chief Executive Officer) and Ms. Li Yi, and Independent Non-executive Directors Mr. Leung Chu Tung, Ms. Zhu Weili, and Mr. Cai Jiong - The Board of Directors includes Executive Directors Ms. Ding Xinyun (Chairman and Chief Executive Officer) and Ms. Li Yi[93](index=93&type=chunk) - Independent Non-executive Directors include Mr. Leung Chu Tung, Ms. Zhu Weili, and Mr. Cai Jiong[93](index=93&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任 何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 EEKA Fashion Holdings Limited 贏家時尚控股有限公司 （於開曼群島註冊成立之有限公司） （股份代號：3709） 截至二零二五年六月三十日止六個月 中期業績公告 概要 1 • 截至二零二五年六月三十日止六個月的收益為人民幣3,104.02百萬元，較截 至二零二四年六月三十日止六個月的人民幣3,306.37百萬元減少6.12% 或人 民幣202.35百萬元。 • 截至二零二五年六月三十日止六個月的純利為人民幣288.99百萬元，較截至 二零二四年六月三十日止六個月的人民幣282.85百萬元增加2.17%或人民幣 6.14百萬元。 • 截至二零二五年六月三十日止六個月，經營活動產生的現金流入淨額為人 民幣895.86百萬元（截至二零二四年六月三十日止六個月：人民幣451.83百 萬元）。 • 截至二零二五年六月三十日止六個月的每股基本盈利為人民幣0.43元（截 至二零二四年六月三十 ...

Vanov Holdings Company Limited 環龍控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：2260） 截至2025年6月30日止六個月之中期業績公告 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或 因依賴該等內容而引致的任何損失承擔任何責任。 | 未經審核之業績摘要 | | | | | --- | --- | --- | --- | | | 截至6月30日止六個月 | | | | | 2025年 人民幣千元 | 2024年 人民幣千元 | 變動 | | | （未經審核）（未經審核） | | | | 收益 | 102,579 | 96,537 | 6.3% | | 期內溢利及全面收益總額 | 6,727 | 18,631 | -63.9% | | EBITDA | 32,400 | 38,176 | -15.1% | 除利息、稅項、折舊及攤銷前利潤（「EBITDA」）乃基於期內溢利扣除利息支 出及收入、所得稅開支、折舊及攤銷計算，並為本公司管理層用以評估本集 團 ...

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。 Kimou Environmental Holding Limited 金茂源環保控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：6805） 截 至2025年6月30日 止 六 個 月 的 未 經 審 核 中 期 業 績 公 告 財 務 摘 要 截 至6月30日 止 六 個 月 2025年 2024年 人 民 幣 千 元 人 民 幣 千 元 收 益 753,980 657,625 經 營 所 得 溢 利 144,266 136,705 本 公 司 權 益 股 東 應 佔 溢 利 58,979 49,706 每 股 基 本 盈 利 （人 民 幣 元） 0.05 0.04 每 股 攤 薄 盈 利 （人 民 幣 元） ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公佈全部或任何 部份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 DT CAPITAL LIMITED 鼎立資本有限公司 （於開曼群島註冊成立之有限公司） （股份代號：356） 截至二零二五年六月三十日止六個月之 中期業績公佈 中期報告及簡明綜合賬目 鼎立資本有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此提呈本公司及其 附屬公司（「本集團」）截至二零二五年六月三十日止六個月之未經審核簡明綜合 賬目。中期業績已經由本公司審核委員會審閱並經由董事會批准。 簡明綜合損益及其他全面收益表 截至二零二五年六月三十日止六個月 | | | 截至 | 截至 | | --- | --- | --- | --- | | | | 二零二五年 | 二零二四年 | | | | 六月三十日 | 六月三十日 | | | | 止六個月 | 止六個月 | | | | （未經審核） | （未經審核） | | | 附註 | 港元 | 港元 | | 收入 | 4 | 277,614 | 443,1 ...

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的任 何 損 失 承 擔 任 何 責 任。 Zhou Liu Fu Jewellery Co., Ltd. 周六福珠宝股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：6168） 截至二零二五年六月三十日止六個月之 中期業績公告 中期業績摘要 本集團的收入由截至2024年6月30日止六個月的約人民幣2,993.9百萬元 增加約5.2%至截至2025年6月30日止六個月的約人民幣3,150.4百 萬 元。 本集團的毛利由截至2024年6月30日止六個月的約人民幣761.1百萬元增 加 約8.7%至截至2025年6月30日止六個月的約人民幣827.2百 萬 元。 本集團的淨利潤由截至2024年6月30日止六個月的約人民幣371.2百萬元 增加約11.9%至截至2025年6月30日止六個月的約人民幣415.3百 萬 元。 週六福珠寶 股 份 有 限 公 司（「本公司 ...

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 會 就 本 公 告 全 部 或 任 何 部 分 內 容 而 產 生 或 因 依 賴 該 等 內 容 而 引 致 的 任 何 損 失 承 擔 任 何 責 任。 YesAsia Holdings Limited 麗 控 股 有 限 公 司 （於 香 港 註 冊 成 立 之 有 限 公 司） （股 份 代 號：2209） 截至二零二五年六月三十日止六個月之 中期業績公告 喆麗控股有限公司（「本公司」）董 事（「董 事」）會（「董事會」）欣然宣佈本公司及其 附屬公司（下 文 統 稱「本集團」）截至二零二五年六月三十日止六個月的未經審 核 綜 合 業 績。本 公 告 載 有 本 公 司 截 至 二 零 二 五 年 六 月 三 十 日 止 六 個 月 的 中 期 報 告（「中期報告」）全 文，符 合 香 港 聯 合 交 易 所 有 限 公 司 證 券 上 市 規 則（「上市規 則」）關 於 中 期 業 績 初 步 公 告 所 載 資 料 的 相 關 規 定 ...

香港交易及結算所有限公司以及聯交所對本公佈之內容概不負責，對其準確性或完整性亦不 發表任何聲明，並明確表示概不就因本公佈全部或任何部分內容而產生或因依賴該等內容而 引致之任何損失承擔任何責任。 Capital Finance Holdings Limited 首都金融控股有限公司 （股份代號：8239） （於開曼群島註冊成立及於百慕達存續之有限公司） 中期業績公佈 截至二零二五年六月三十日止六個月 香港聯合交易所有限公司（「聯交所」）GEM之特色 由於GEM上市公司一般為中小型公司，在GEM買賣之證券可能會較於主板買賣之證券承受 較大之市場波動風險，同時無法保證在GEM買賣之證券會有高流通量之市場。 本公佈乃遵照聯交所GEM證券上市規則（「GEM上市規則」）之規定提供有關首都金融控股有 限公司（「本公司」）之資料。本公司董事（「董事」）願共同及個別對此負全責。董事經作出一切合 理查詢後確認，就彼等所深知及確信，本公佈所載資料在各重大方面均屬準確完整，且無誤導 或欺詐成分，本公佈亦無遺漏任何其他事實，致使本公佈所載任何聲明或本公佈產生誤導。 1 本公司董事會（「董事會」）欣然呈報本公司及其附屬公司（統稱「本集團 ...