香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部分內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 TechStar Acquisition Corporation （於開曼群島註冊成立的有限公司） （股份代號：7855） （權證代號：4855） | | | 2025年 | 2024年 | | --- | --- | --- | --- | | | | （未經審核）（未經審核） | | | | 附註 | 千港元 | 千港元 | | 收益 | 4 | – | – | | 利息收入 | | 1 | 2 | | 行政開支 | | (47,774) | (48,880) | | 權證負債公平值變動 | | (11,762) | – | | 除所得稅開支前虧損 | 5 | (59,535) | (48,878) | | 所得稅開支 | 6 | – | – | | 期內虧損及全面虧損總額 | | (59,535) | (48,878) | | 每股虧損 | 8 | 港元 | 港元 | | －基本及攤薄 | | ( ...

[Performance Overview](index=1&type=section&id=%E6%A5%AD%E7%B8%BE) The Group's financial performance for the first half of 2025 shows increased revenue and profit attributable to equity holders, alongside changes in comprehensive income and balance sheet items [Condensed Consolidated Statement of Profit or Loss](index=1&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) The Group recorded revenue of **RMB 561,692 thousand**, gross profit of **RMB 93,478 thousand**, and profit attributable to equity holders of **RMB 1,701,404 thousand** for the first half of 2025, with basic earnings per share of **RMB 0.33723**, showing growth from the prior period Condensed Consolidated Statement of Profit or Loss | Metric | 1H 2025 (RMB '000) | 1H 2024 (RMB '000) | | :--- | :--- | :--- | | Revenue | 561,692 | 518,038 | | Cost of Sales | (468,214) | (414,486) | | Gross Profit | 93,478 | 103,552 | | Other Income | 14,829 | 8,088 | | Interest Income | 78,164 | 295,169 | | Selling Expenses | (33,440) | (12,463) | | General and Administrative Expenses | (279,895) | (176,593) | | Share of Results of Associates | 2,048,529 | 2,734,677 | | Profit for the Period | 1,654,217 | 1,465,637 | | Profit Attributable to Equity Holders of the Company | 1,701,404 | 1,473,258 | | Basic Earnings Per Share | RMB 0.33723 | RMB 0.29201 | [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E5%85%A5%E5%A0%B1%E8%A1%A8) The Group's total comprehensive income for the first half of 2025 significantly increased to **RMB 3,243,017 thousand** from **RMB 1,196,013 thousand** in the prior period, primarily due to a turnaround in the share of other comprehensive income (expense) of associates Condensed Consolidated Statement of Comprehensive Income | Metric | 1H 2025 (RMB '000) | 1H 2024 (RMB '000) | | :--- | :--- | :--- | | Profit for the Period | 1,654,217 | 1,465,637 | | Share of Other Comprehensive Income (Expense) of Associates | 1,588,677 | (270,274) | | Total Comprehensive Income for the Period | 3,243,017 | 1,196,013 | | Total Comprehensive Income Attributable to Equity Holders of the Company | 3,290,204 | 1,203,634 | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, the Group's total assets decreased to **RMB 27,406,376 thousand** from **RMB 29,105,715 thousand** at December 31, 2024, with reductions in net current assets and net assets, while total equity remained at **RMB 25,602,221 thousand** Condensed Consolidated Statement of Financial Position | Metric | As of June 30, 2025 (RMB '000) | As of Dec 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Total Non-current Assets | 15,914,768 | 15,686,102 | | Total Current Assets | 11,491,608 | 13,419,613 | | Total Current Liabilities | 1,635,457 | 1,835,649 | | Net Current Assets | 9,856,151 | 11,583,964 | | Total Assets Less Current Liabilities | 25,770,919 | 27,270,066 | | Net Assets | 25,602,221 | 27,097,881 | | Total Equity | 25,602,221 | 27,097,881 | [Notes to Financial Statements](index=6&type=section&id=%E9%99%84%E8%A8%BB) This section details the Group's organizational structure, accounting policies, segment information, and specific financial items, including provisions and receivables [Organization and Operations](index=6&type=section&id=%E7%B5%84%E7%B9%94%E5%8F%8A%E7%87%9F%E9%81%8B) Brilliance China Automotive Holdings Limited is incorporated in Bermuda, listed on the HKEX, with Shenyang Automotive Group Co., Ltd. as its ultimate largest shareholder, and its principal businesses are detailed in Note 4 - Company incorporated in Bermuda on June 9, 1992, with shares traded on the Main Board of the Hong Kong Stock Exchange[11](index=11&type=chunk) - Shenyang Automotive Group Co., Ltd. is considered the Company's single ultimate largest shareholder, indirectly holding a **29.99% equity interest**[11](index=11&type=chunk) [Compliance Statement and Accounting Policies](index=6&type=section&id=%E9%81%B5%E4%BE%8B%E8%81%B2%E6%98%8E%E5%8F%8A%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) The condensed consolidated interim financial statements are prepared in accordance with HKFRS 34 and HKEX Listing Rules, adopting the same accounting policies as the 2024 annual financial statements, except for the adoption of revised HKFRSs - Condensed interim financial statements prepared in accordance with applicable disclosure provisions of the HKEX Listing Rules and HKAS 34 "Interim Financial Reporting" issued by the HKICPA[13](index=13&type=chunk) - These statements are prepared using the same accounting policies as the consolidated annual financial statements for the year ended December 31, 2024, except for the adoption of revised HKFRSs[13](index=13&type=chunk) [Adoption of Revised HKFRSs](index=6&type=section&id=%E6%8E%A1%E7%B4%8D%E7%B6%93%E4%BF%AE%E8%A8%82%E9%A6%99%E6%B8%AF%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A%E6%BA%96%E5%89%87) The Group first applied HKAS 21 (Amendment) "Lack of Exchangeability" during this period, but its adoption had no impact on the preparation and presentation of results and financial position for current or prior periods - The Group first applied HKAS 21 (Amendment) "Lack of Exchangeability"[15](index=15&type=chunk) - The adoption of revised HKFRSs had no impact on the preparation and presentation of the results and financial position for the current and prior periods[15](index=15&type=chunk) [Revenue and Segment Information](index=7&type=section&id=%E6%94%B6%E7%9B%8A%E5%8F%8A%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group's principal businesses include manufacturing and sales of BMW vehicles and parts, non-BMW vehicles and parts, and providing auto financing services, with non-BMW vehicle sales increasing and auto financing revenue decreasing in 1H 2025 - The Group's principal businesses include manufacturing and sales of BMW vehicles and parts through BMW Brilliance, non-BMW vehicles and parts through Jinbei Shenyang, Ningbo Yumin, and Mianyang Rui'an, and providing auto financing services through Brilliance East Asia Auto Finance[16](index=16&type=chunk) Revenue by Source | Revenue Source | 1H 2025 (RMB '000) | 1H 2024 (RMB '000) | | :--- | :--- | :--- | | Sales of non-BMW vehicles and auto parts | 481,951 | 405,380 | | Interest and service fee income from auto financing services | 79,741 | 112,658 | | **Total Revenue** | **561,692** | **518,038** | Segment Sales to External Customers | Segment | 1H 2025 Segment Sales to External Customers (RMB '000) | 1H 2024 Segment Sales to External Customers (RMB '000) | | :--- | :--- | :--- | | Manufacturing and sales of non-BMW vehicles and auto parts | 481,951 | 405,380 | | Manufacturing and sales of BMW vehicles and parts | 85,796,182 | 111,521,948 | | Providing auto financing services | 79,741 | 112,658 | | **Total** | **561,692** | **518,038** | [Profit Before Income Tax Expense](index=10&type=section&id=%E9%99%A4%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF%E5%89%8D%E6%BA%A2%E5%88%A9) Profit before income tax expense for the period decreased to **RMB 1,906,261 thousand** from **RMB 2,937,756 thousand** in the prior period, mainly due to significant increases in impairment losses on property, plant and equipment and research and development costs Items Deducted from Profit Before Income Tax Expense | Item | 1H 2025 (RMB '000) | 1H 2024 (RMB '000) | | :--- | :--- | :--- | | Allowance for expected credit losses on loans receivable | 34,344 | 24,608 | | Cost of inventories | 449,924 | 379,184 | | Amortisation of intangible assets | 15,519 | 9,439 | | Depreciation of property, plant and equipment | 54,203 | 48,862 | | Impairment loss on property, plant and equipment | 55,486 | – | | Employee costs | 145,550 | 116,157 | | Research and development costs | 52,701 | 16,579 | | Exchange losses, net | 21,269 | 42,577 | [Income Tax Expense](index=11&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Income tax expense for the period significantly decreased to **RMB 252,044 thousand** from **RMB 1,472,119 thousand** in the prior period, primarily due to a substantial reduction in PRC dividend withholding tax Income Tax Expense Breakdown | Item | 1H 2025 (RMB '000) | 1H 2024 (RMB '000) | | :--- | :--- | :--- | | PRC Enterprise Income Tax - Current Period | 2,044 | 969 | | PRC Dividend Withholding Tax | 250,000 | 1,474,000 | | **Total Income Tax Expense** | **252,044** | **1,472,119** | [Earnings Per Share](index=11&type=section&id=%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) Basic earnings per share for the six months ended June 30, 2025, was **RMB 0.33723**, with diluted earnings per share being the same as basic earnings per share due to no outstanding potentially dilutive ordinary shares - Basic earnings per share calculated based on profit attributable to equity holders of the Company of **RMB 1,701,404,000** divided by the weighted average of **5,045,269,000** ordinary shares[28](index=28&type=chunk) - Diluted earnings per share is the same as basic earnings per share as there were no potentially dilutive ordinary shares outstanding during the period[28](index=28&type=chunk) [Dividends](index=11&type=section&id=%E8%82%A1%E6%81%AF) The Company declared a special dividend of **HKD 1.0 per share**, totaling **RMB 4,738,677 thousand**, on March 3, 2025, and the Board declared an interim dividend of **HKD 0.8 per share** on August 22, 2025 Dividends Declared | Dividend Type | 1H 2025 (RMB '000) | 1H 2024 (RMB '000) | | :--- | :--- | :--- | | Special Dividend | 4,738,677 | 27,210,904 | | Interim Dividend | HKD 0.8/share (2025) | None (2024) | [Short-term Bank Deposits](index=12&type=section&id=%E7%9F%AD%E6%9C%9F%E9%8A%80%E8%A1%8C%E5%AD%98%E6%AC%BE) As of June 30, 2025, total short-term bank deposits were **RMB 1,236,152 thousand**, including **RMB 748,000 thousand** in time deposits and **RMB 488,152 thousand** in pledged and restricted short-term bank deposits, with restricted deposits primarily related to unauthorized guarantee events Short-term Bank Deposits Breakdown | Deposit Type | As of June 30, 2025 (RMB '000) | As of Dec 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Time Deposits | 748,000 | – | | Restricted Short-term Bank Deposits | 347,200 | 347,200 | | Short-term Bank Deposits Pledged for Bank Acceptance Bills | 140,952 | 234,915 | | **Total Short-term Bank Deposits** | **1,236,152** | **582,115** | - As of June 30, 2025, the Group had cumulatively repaid approximately **RMB 1,362,863,000** directly from restricted short-term deposits under PRC court orders, reducing the relevant restricted short-term deposits to approximately **RMB 347,200,000**[31](index=31&type=chunk) [Trade Receivables](index=13&type=section&id=%E6%87%89%E6%94%B6%E8%B3%A6%E6%AC%BE) As of June 30, 2025, total trade receivables amounted to **RMB 466,010 thousand**, with most amounts due in less than six months, and the Group maintains strict credit policies to mitigate credit risk Trade Receivables Composition | Trade Receivables Component | As of June 30, 2025 (RMB '000) | As of Dec 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Trade Receivables | 455,525 | 402,189 | | Amounts Due from Affiliated Companies | 10,485 | 1,362 | | **Total** | **466,010** | **403,551** | Aging Analysis of Trade Receivables | Aging Analysis | As of June 30, 2025 (RMB '000) | As of Dec 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Less than six months | 452,340 | 407,906 | | Six months to one year | 10,709 | 1,323 | | One year to two years | 1,599 | 883 | | Two years to five years | 19,302 | 20,629 | | Over five years | 19,387 | 17,957 | | Less: Allowance for Expected Credit Losses | (47,812) | (46,509) | | **Net** | **455,525** | **402,189** | - The Group's credit policy aims to minimize credit risk by conducting credit assessments for new customers and debtors and requiring deposits or letters of credit from major customers[33](index=33&type=chunk) [Trade Payables](index=14&type=section&id=%E6%87%89%E4%BB%98%E8%B3%A6%E6%AC%BE) As of June 30, 2025, total trade payables increased to **RMB 320,980 thousand** from **RMB 260,379 thousand** at December 31, 2024, with the majority of amounts due in less than six months Trade Payables Composition | Trade Payables Component | As of June 30, 2025 (RMB '000) | As of Dec 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Trade Payables | 311,501 | 249,835 | | Amounts Due to Affiliated Companies | 9,479 | 10,544 | | **Total** | **320,980** | **260,379** | Aging Analysis of Trade Payables | Aging Analysis | As of June 30, 2025 (RMB '000) | As of Dec 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Less than six months | 239,456 | 178,048 | | Six months to one year | 13,959 | 9,828 | | One year to less than two years | 11,694 | 13,255 | | Two years or more | 46,392 | 48,704 | | **Total** | **311,501** | **249,835** | [Loss Provision](index=14&type=section&id=%E虧%E6%90%8D%E6%92%A5%E5%82%99) Loss provision primarily stems from estimated losses related to Jinbei Auto Control's unauthorized guarantees for Brilliance Auto Group Holdings Co., Ltd.'s bank borrowings, with **RMB 1,362,863 thousand** cumulatively settled as of June 30, 2025, and management deems the provision adequate - Loss provision refers to estimated losses arising from Jinbei Auto Control's unauthorized guarantees for bank borrowings of Brilliance Auto Group Holdings Co., Ltd[36](index=36&type=chunk) - The Group recognized a provision of approximately **RMB 1,917,062,000** for related losses in prior years[37](index=37&type=chunk) - As of June 30, 2025, the Group had cumulatively settled debts and related legal fees totaling approximately **RMB 1,362,863,000**, and management considers the provision adequate[37](index=37&type=chunk) [Management Discussion and Analysis](index=15&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) This section provides an in-depth review of the Group's business performance, market outlook, liquidity, capital structure, and significant events during the period [Business Discussion and Analysis](index=15&type=section&id=%E6%A5%AD%E5%8B%99%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) The Group's 1H 2025 revenue increased by **8.4%** to **RMB 561.7 million**, driven by electric and hybrid vehicle orders, but partially offset by reduced auto financing income; gross margin declined to **16.6%** due to new order setup costs and unrecovered fixed costs, while interest income significantly decreased by **73.5%**, and share of results of associates (BMW Brilliance) fell by **25.1%** due to a **16.7%** drop in sales - The Group's unaudited consolidated revenue for 1H 2025 was **RMB 561.7 million**, an **8.4% increase** from 1H 2024, primarily due to steady growth in orders from electric and hybrid vehicle manufacturers[38](index=38&type=chunk) - Unaudited gross profit margin decreased from **20.0%** in 1H 2024 to **16.6%** in 1H 2025, mainly due to additional initial setup costs for new orders and unrecovered fixed costs at Jinbei Shenyang[39](index=39&type=chunk) - Unaudited interest income decreased by **73.5%** from **RMB 295.2 million** in 1H 2024 to **RMB 78.2 million** in 1H 2025, attributed to lower interest rates and a general reduction in bank deposits, cash, and cash equivalents[40](index=40&type=chunk) - The Group's share of results of associates (BMW Brilliance) decreased by **25.1%** from **RMB 2,734.7 million** in 1H 2024 to **RMB 2,048.5 million** in 1H 2025, primarily due to a decline in BMW Brilliance's performance[43](index=43&type=chunk) BMW Brilliance Sales Volume | BMW Brilliance Model | 1H 2025 Sales Volume (units) | 1H 2024 Sales Volume (units) | Change (%) | | :--- | :--- | :--- | :--- | | 1 Series | 2 | 81 | -97.5% | | 3 Series | 85,486 | 103,099 | -17.1% | | 5 Series | 61,127 | 43,660 | 40.0% | | X1 | 32,588 | 51,289 | -36.5% | | X2 | 298 | – | 99.3% | | X3 | 37,188 | 68,562 | -45.8% | | X5 | 39,032 | 45,741 | -14.7% | | **Total** | **260,455** | **312,730** | **-16.7%** | | Of which BEV | 27,591 | 50,750 | -45.6% | [Outlook](index=18&type=section&id=%E5%B1%95%E6%9C%9B) China's economy expanded steadily in 1H 2025 with **11.4%** growth in total vehicle sales and **40.3%** in NEV sales; BMW Brilliance plans new models and "Neue Klasse" production, Jinbei Shenyang aims for capacity expansion, Brilliance East Asia Auto Finance seeks new business models, and new products from Mianyang Rui'an, Ningbo Yumin, and Yuxin JV are expected to launch - China's economy grew by **5.3%** year-on-year in 1H 2025, with total vehicle sales increasing by **11.4%** and new energy vehicle sales by **40.3%**[47](index=47&type=chunk) - BMW Brilliance's total sales decreased by **16.7%** in 1H 2025, but it will add several new models and is preparing for the production of "Neue Klasse" models starting in 2026[48](index=48&type=chunk)[49](index=49&type=chunk) - Jinbei Shenyang has resumed production of the Haise, Haise King, and EV models, with a focus on gradually increasing production capacity and improving domestic and international sales and after-sales service systems during the year[50](index=50&type=chunk) - Brilliance East Asia Auto Finance faces increased competition from banks entering the auto finance sector, narrowing profit margins, and limited funding, prompting it to seek new business models, lower-cost funding sources, and strengthen risk management[51](index=51&type=chunk) - Mianyang Rui'an will focus on "three key areas" (new market product development, cost control, and safe production for delivery), while Ningbo Yumin will deepen cooperation with OEMs like BYD and develop lightweight aluminum alloy new products[52](index=52&type=chunk)[53](index=53&type=chunk) - The production base of Yuxin Zhixing Technology (Shenyang) Co., Ltd. is expected to be completed and gradually put into operation in 2H 2025, with smart cockpit and display products developed for Zeekr anticipated to commence mass production soon[54](index=54&type=chunk) [Liquidity and Financial Resources](index=19&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) As of June 30, 2025, the Group's cash and cash equivalents significantly decreased to **RMB 5,857 million** from **RMB 10,539.6 million** at the end of 2024, while short-term bank deposits increased to **RMB 1,236.2 million** and short-term bank borrowings decreased to **RMB 130 million**, with both trade receivables and inventory turnover days increasing Liquidity and Financial Resources Summary | Metric | As of June 30, 2025 (RMB '000) | As of Dec 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 5,857,011 | 10,539,550 | | Statutory Reserve Deposits with Central Bank | – | 42,500 | | Short-term Bank Deposits | 1,236,152 | 582,115 | | Trade Payables | 320,980 | 260,379 | | Bills Payable | 178,560 | 279,853 | | Short-term Bank Borrowings | 130,000 | 330,000 | - For the six months ended June 30, 2025, the Group's trade receivables turnover days were **139 days** (Year ended December 31, 2024: **123 days**), and inventory turnover days were **119 days** (Year ended December 31, 2024: **77 days**)[60](index=60&type=chunk) [Capital Structure and Financial Policies](index=20&type=section&id=%E8%B3%87%E6%9C%AC%E7%B5%90%E6%A7%8B%E5%8F%8A%E8%B2%A1%E5%8B%99%E6%94%BF%E7%AD%96) As of June 30, 2025, the Group's total assets were approximately **RMB 27,406.4 million**, primarily funded by share capital, reserves, total liabilities, and non-controlling interests, with **84.5%** of cash and cash equivalents denominated in RMB, and the Group manages short-term working capital and long-term capital expenditures through a combination of operational cash flow, bank borrowings, and other financing methods Funding Sources | Funding Source | As of June 30, 2025 (RMB '000) | As of Dec 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Total Assets | 27,406,400 | 29,105,700 | | Share Capital | 397,200 | 397,200 | | Reserves | 24,215,300 | 25,663,800 | | Total Liabilities | 1,804,200 | 2,007,800 | | Contribution from Non-controlling Interests | 989,700 | 1,036,900 | - Of the Group's cash and cash equivalents, **84.5%** was denominated in RMB and **15.5%** in other currencies, with the increase in foreign currency proportion mainly due to a decrease in RMB-denominated cash and cash equivalents[62](index=62&type=chunk) - The Group primarily meets short-term working capital needs through operating cash flow, short-term bank borrowings, issuance of bank acceptance bills, and credit purchases from suppliers, and funds long-term capital expenditures through a combination of operating cash flow, bank borrowings, dividends, and capital market fundraising[63](index=63&type=chunk) [Capital Expenditure and Commitments](index=21&type=section&id=%E8%B3%87%E6%9C%AC%E9%96%8B%E6%94%AF%E5%8F%8A%E6%89%BF%E6%93%94) In 1H 2025, the Group incurred **RMB 1,248.5 million** in capital expenditure, mainly for tools, machinery, construction in progress, software, and investments in new associates and joint ventures, with contracted capital commitments of **RMB 210.8 million** primarily for plant and machinery purchases - In 1H 2025, the Group incurred capital expenditure of **RMB 1,248,500,000**, primarily for the purchase of tools and dies, machinery and equipment, construction in progress, special software, and investments in a new associate and a joint venture[64](index=64&type=chunk) - As of June 30, 2025, the Group's contracted capital commitments amounted to **RMB 210,800,000**, related to capital expenditure for the purchase of plant and machinery[65](index=65&type=chunk) [Significant Investments Held, Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=21&type=section&id=%E6%8C%81%E6%9C%89%E4%B9%8B%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E3%80%81%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8%E3%80%81%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%90%88%E8%B3%87%E4%BC%81%E6%A5%AD%E4%B9%8B%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE) During the reporting period, the Group increased its equity interest in Jinbei Shenyang to **87.3364%** with an additional **RMB 500 million** investment; BMW Brilliance remains a key associate, contributing **RMB 2,051.6 million** in profit and **RMB 2,143.96 million** in dividends; and the newly formed Yuxin joint venture, with a **50%** stake, was acquired for **RMB 700 million** - The Company invested an additional **RMB 500,000,000** in Jinbei Shenyang, with the industrial and commercial registration change completed on July 7, 2025, increasing the Group's interest in Jinbei Shenyang from **80.72%** to **87.3364%**[66](index=66&type=chunk) - As of June 30, 2025, the Group held a **25% equity interest** in BMW Brilliance, with a carrying amount of **RMB 10,885,000,000**, representing **39.7%** of the Group's total assets[68](index=68&type=chunk) - The Group's share of BMW Brilliance's profit was **RMB 2,051,600,000**, a **25% decrease** year-on-year, and dividends of **RMB 2,143,960,000** were received[68](index=68&type=chunk) - Jinbei Auto Control and TCL Ningbo signed a strategic joint venture agreement to establish Yuxin, in which the Group holds a **50% equity interest** with an investment cost of **RMB 700,000,000** in cash[69](index=69&type=chunk) [New Businesses and Products](index=22&type=section&id=%E6%96%B0%E6%A5%AD%E5%8B%99%E5%8F%8A%E6%96%B0%E7%94%A2%E5%93%81) BMW Brilliance will accelerate "Neue Klasse" development for 2026 local production, Jinbei Shenyang has upgraded facilities and expanded sales, Brilliance East Asia Auto Finance focuses on NEVs and digital strategy, Ningbo Yumin secured new product orders and collaborates on lightweight aluminum, Mianyang Rui'an strengthens existing and new markets, and Yuxin's smart cockpit and display products for Zeekr are nearing mass production - BMW Brilliance will accelerate the development of the "Neue Klasse" new generation of vehicles, with the first locally produced model to be manufactured at the Lydia plant in Shenyang, expected to commence in 2026[71](index=71&type=chunk) - Jinbei Shenyang has completed production process upgrades, with Haise, Haise King, and EV models successively put into production, restoring **80 dealers** and **105 service stations** domestically, and gradually resuming and developing overseas channels[72](index=72&type=chunk) - Brilliance East Asia Auto Finance is increasingly focusing on the new energy vehicle sector and leveraging digital strategies to enhance operational efficiency, streamline organizational layers, and optimize cost structures[73](index=73&type=chunk) - Ningbo Yumin has secured **12 new product orders**, including sunroof guide rails for the new generation BMW X5 and Beijing Benz GLE models, and is collaborating with BYD on lightweight aluminum alloy products[74](index=74&type=chunk) - Yuxin's smart cockpit products and smart display products developed for Zeekr are expected to commence mass production soon[74](index=74&type=chunk) [Employees, Remuneration Policy and Training Programs](index=24&type=section&id=%E5%83%B1%E5%93%A1%E3%80%81%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96%E5%8F%8A%E5%9F%B9%E8%A8%93%E8%A8%88%E5%8A%83) As of June 30, 2025, the Group employed approximately **1,890 employees** with employee costs of **RMB 145.6 million**, maintaining competitive remuneration based on performance and offering diverse training programs covering professional skills, quality, management, and leadership Employee Metrics | Metric | As of June 30, 2025 | As of June 30, 2024 | | :--- | :--- | :--- | | Number of Employees | 1,890 | 1,400 | | Employee Costs (RMB '000) | 145,600 | 116,200 | - The Group is committed to ensuring employee salaries are competitive with industry practices and current market conditions, with remuneration determined based on performance[76](index=76&type=chunk) - The Group provides various online and in-person training programs covering professional skills, quality improvement, business and product knowledge, professional ethics and safety, ESG issues, anti-corruption, management skills, leadership, and teamwork[77](index=77&type=chunk) [Pledge of Assets](index=24&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%BC%E8%A8%98) As of June 30, 2025, all short-term bank borrowings were unsecured; the Group pledged **RMB 141 million** in short-term bank deposits and approximately **RMB 38.1 million** in bank acceptance bills receivable from third parties and related parties as collateral for issued bank acceptance bills, with restricted short-term deposits of approximately **RMB 347.2 million** due to unauthorized guarantee events - As of June 30, 2025, all short-term bank borrowings were unsecured[78](index=78&type=chunk) - The Group pledged short-term bank deposits totaling **RMB 141,000,000** and bank acceptance bills receivable from third parties and affiliated companies of approximately **RMB 38,100,000** as collateral for issued bank acceptance bills[78](index=78&type=chunk) - As of June 30, 2025, due to litigation related to unauthorized guarantee events, the relevant restricted short-term deposits had been reduced to approximately **RMB 347,200,000**[79](index=79&type=chunk) [Plans for Material Investments or Additions of Capital Assets](index=25&type=section&id=%E6%9C%AA%E4%BE%86%E4%BD%9C%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E6%88%96%E6%B7%BB%E7%BD%AE%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2%E4%B9%8B%E8%A8%88%E5%8A%83) As of the date of this announcement, the Group has no future plans for material investments or additions of capital assets beyond those already disclosed - As of the date of this announcement, the Group has no future plans for material investments or additions of capital assets other than those already disclosed[80](index=80&type=chunk) [Gearing Ratio](index=25&type=section&id=%E8%B3%87%E6%9C%AC%E8%B2%A0%E5%82%B5%E6%AF%94%E7%8E%87) As of June 30, 2025, the Group's gearing ratio was approximately **0.07**, a decrease from **0.08** at December 31, 2024, primarily due to a reduction in current liabilities resulting from decreased short-term bank borrowings - As of June 30, 2025, the Group's gearing ratio was approximately **0.07** (December 31, 2024: approximately **0.08**)[81](index=81&type=chunk) - The decrease in the gearing ratio was primarily due to a reduction in short-term bank borrowings as of June 30, 2025, leading to a decrease in current liabilities[81](index=81&type=chunk) [Foreign Exchange Risk](index=25&type=section&id=%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA) The Group conducts most transactions in RMB and believes exchange rate fluctuations have no significant impact on overall financial performance, holding some HKD cash to mitigate exchange rate risk for dividend distributions and potential investments, with no outstanding hedging transactions as of June 30, 2025 - The majority of the Group's transactions are denominated in RMB, and it believes that exchange rate fluctuations do not have a significant impact on the Group's overall financial performance[82](index=82&type=chunk) - To mitigate exchange rate fluctuation risks for dividend distributions and potential future investments requiring HKD, the Company holds certain HKD cash and cash equivalents[82](index=82&type=chunk) - As of June 30, 2025, the Group had no outstanding hedging transactions[82](index=82&type=chunk) [Contingent Liabilities](index=25&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group had no contingent liabilities - As of June 30, 2025, the Group had no contingent liabilities[83](index=83&type=chunk) [Dividends](index=25&type=section&id=%E8%82%A1%E6%81%AF) The Company declared a special dividend of **HKD 1.0 per ordinary share** on March 3, 2025, paid on March 28, 2025, and the Board is pleased to declare an interim dividend of **HKD 0.8 per ordinary share** for 2025, expected to be paid on September 26, 2025 - The Board declared a special dividend of **HKD 1.0 per ordinary share** of the Company, which was paid on March 28, 2025[84](index=84&type=chunk) - The Board is pleased to declare an interim dividend of **HKD 0.8 per ordinary share** of the Company for 2025, expected to be paid on September 26, 2025[84](index=84&type=chunk) [Closure of Register of Members](index=25&type=section&id=%E6%9A%AB%E5%81%9C%E8%BE%A6%E7%90%86%E8%82%A1%E4%BB%BD%E9%81%8E%E6%88%B6%E7%99%BB%E8%A8%98%E6%89%8B%E7%BA%8C) To determine eligibility for the interim dividend, the Company's register of members will be closed from September 8 to September 9, 2025, with the record date set for September 9, 2025 - To determine eligibility for the interim dividend, the Company's register of members will be closed from September 8 to September 9, 2025 (both dates inclusive)[85](index=85&type=chunk) - The record date for this dividend is set for September 9, 2025[85](index=85&type=chunk) [Material Events Affecting the Group Since 30 June 2025](index=26&type=section&id=%E8%87%AA%E4%BA%8C%E9%9B%B6%E4%BA%8C%E4%BA%94%E5%B9%B4%E5%85%AD%E6%9C%88%E4%B8%89%E5%8D%81%E6%97%A5%E8%B5%B7%E7%99%BC%E7%94%9F%E5%BD%B1%E9%9F%BF%E6%9C%AC%E9%9B%86%E5%9C%98%E4%B9%8B%E9%87%8D%E5%A4%A7%E4%BA%8B%E4%BB%B6) Since June 30, 2025, the Group made a further capital contribution of **RMB 500 million** to Jinbei Shenyang, with the industrial and commercial registration change completed on July 7, 2025, increasing the Group's equity interest in Jinbei Shenyang to **87.3364%** - Since June 30, 2025, the Group made a further capital contribution of **RMB 500,000,000** to Jinbei Shenyang, with the industrial and commercial registration change completed on July 7, 2025, increasing the Group's equity interest in Jinbei Shenyang from **80.72%** to **87.3364%**[86](index=86&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=26&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B9%8B%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[87](index=87&type=chunk) [Corporate Governance](index=26&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) This section outlines the Group's adherence to corporate governance codes, the composition and responsibilities of the Board and Audit Committee [Compliance with Corporate Governance Code](index=26&type=section&id=%E9%81%B5%E5%AE%88%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%88%99) The Company generally complied with the Corporate Governance Code in 1H 2025, with the exception of Mr. Zhang Yue holding both Chairman and CEO roles, which the Board believes enhances leadership and strategic efficiency while maintaining sufficient checks and balances - The Group complied with all code provisions set out in Part 2 of Appendix C1 to the Listing Rules for the six months ended June 30, 2025, except as noted below[88](index=88&type=chunk) - Code Provision C.2.1 of the Corporate Governance Code stipulates that the roles of chairman and chief executive officer should be separate and not performed by the same individual; during 1H 2025, Mr. Zhang Yue served as both Chairman of the Board and Chief Executive Officer of the Company[88](index=88&type=chunk) - The Board believes that Mr. Zhang Yue's dual role as Chairman of the Board and Chief Executive Officer facilitates consistent leadership within the Company, enhancing the efficiency and effectiveness of the Company's overall strategic planning[88](index=88&type=chunk) [Review of Financial Statements](index=27&type=section&id=%E5%AF%A9%E9%96%B1%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) The Company's Audit Committee reviewed the Group's accounting principles and practices, and discussed auditing, internal controls, and financial reporting matters, including the unaudited condensed consolidated interim financial statements for the period, with all committee members being independent non-executive directors - The Company's Audit Committee reviewed the Group's accounting principles and practices and discussed auditing, internal controls, and financial reporting matters, including the Group's unaudited condensed consolidated interim financial statements for the six months ended June 30, 2025[89](index=89&type=chunk) - The Audit Committee members include Mr. Jiang Bo, Mr. Song Jian, and Mr. Dong Yang, all of whom are independent non-executive directors of the Company, with Mr. Jiang Bo serving as Chairman of the Audit Committee[89](index=89&type=chunk) [Board of Directors](index=27&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83) As of the announcement date, the Board of Directors comprises three executive directors (Mr. Zhang Yue, Mr. Zhang Wei, Mr. Guo Hongbo) and four independent non-executive directors (Mr. Song Jian, Mr. Jiang Bo, Mr. Dong Yang, Dr. Lin Jielan) - The Board of Directors comprises three executive directors: Mr. Zhang Yue (Chairman and Chief Executive Officer), Mr. Zhang Wei, and Mr. Guo Hongbo; and four independent non-executive directors: Mr. Song Jian, Mr. Jiang Bo, Mr. Dong Yang, and Dr. Lin Jielan[90](index=90&type=chunk)

[Important Notice](index=3&type=section&id=Important%20Notice) The Board, Supervisory Committee, and senior management guarantee the interim report's accuracy, reviewed by Grant Thornton (Hong Kong) and presented in RMB, with forward-looking statement risk reminders [Overview](index=3&type=section&id=Important%20Notice-Overview) The Board, Supervisory Committee, and senior management guarantee the interim report's accuracy, reviewed by Grant Thornton (Hong Kong) and presented in RMB, with forward-looking statement risk reminders - Report content guaranteed by Board, Supervisory Committee, and senior management, approved by relevant meetings[7](index=7&type=chunk) - Interim financial information reviewed by Grant Thornton (Hong Kong) Limited in accordance with HKSRS 2410[7](index=7&type=chunk) - Data presented in **RMB** unless otherwise specified[7](index=7&type=chunk) - Forward-looking statements regarding future plans and strategies do not constitute a substantive commitment to investors, who are reminded of investment risks[9](index=9&type=chunk) [Section I Definitions](index=4&type=section&id=Section%20I%20Definitions) This section defines key terms used in the report, covering company names, shareholders, subsidiaries, regulatory bodies, financial products, and business activities for clear understanding [Key Terms](index=4&type=section&id=Section%20I%20Definitions-Key%20Terms) This section defines key terms used in the report, covering company names, shareholders, subsidiaries, regulatory bodies, financial products, and business activities for clear understanding - "The Company", "Company", "Hengtou Securities" refers to the joint-stock company established in China on December 28, 1998, approved to operate in Hong Kong under the name "Hengtou Securities" on April 27, 2015, with its H shares listed on the Main Board of the Hong Kong Stock Exchange[10](index=10&type=chunk) - "End of the Reporting Period" refers to **June 30, 2025**, and "Reporting Period" refers to the **six months ended June 30, 2025**[10](index=10&type=chunk)[13](index=13&type=chunk) - Major subsidiaries include Hengtai Capital Investment Co., Ltd., Hengtai Changcai Securities Co., Ltd., Hengtai Futures Co., Ltd., Hengtai Pioneer Investment Co., Ltd., and Xinhua Fund Management Co., Ltd[12](index=12&type=chunk)[13](index=13&type=chunk) - "Margin Financing and Securities Lending" is defined as the business activity of lending funds to clients for purchasing listed securities or lending listed securities for selling, and collecting collateral[13](index=13&type=chunk) [Section II Company Profile](index=8&type=section&id=Section%20II%20Company%20Profile) This section provides the company's basic information, including names, board and supervisory committee composition, specialized committees, secretaries, authorized representatives, addresses, website, email, and auditors [Basic Information](index=8&type=section&id=Section%20II%20Company%20Profile-Basic%20Information) This section provides the company's basic information, including names, board and supervisory committee composition, specialized committees, secretaries, authorized representatives, addresses, website, email, and auditors - The company's Chinese name is Hengtai Securities Co., Ltd., operating in Hong Kong under the name "Hengtou Securities"[17](index=17&type=chunk) - The Board of Directors consists of **1 executive director** (Mr. Zhu Yanhui as Chairman), **5 non-executive directors**, and **3 independent non-executive directors**[18](index=18&type=chunk) - The Board has four specialized committees: Strategy and Investment Decision Committee, Risk Control and Supervision Committee, Audit Committee, and Remuneration and Nomination Committee[18](index=18&type=chunk) - The company's auditors are Grant Thornton (Hong Kong) Limited (International) and Grant Thornton (Special General Partnership) (Domestic)[23](index=23&type=chunk) [Section III Summary of Accounting Data and Financial Indicators](index=11&type=section&id=Section%20III%20Summary%20of%20Accounting%20Data%20and%20Financial%20Indicators) The company achieved significant performance growth, with total operating revenue up **42.45%** and profit attributable to ordinary equity holders up **346.86%**, indicating a robust financial position [Key Accounting Data and Financial Indicators](index=11&type=section&id=Section%20III%20Summary%20of%20Accounting%20Data%20and%20Financial%20Indicators-Key%20Accounting%20Data%20and%20Financial%20Indicators) The company achieved significant performance growth, with total operating revenue up **42.45%** and profit attributable to ordinary equity holders up **346.86%**, indicating a robust financial position Key Accounting Data and Financial Indicators (For the six months ended June 30, 2025) | 項目 | 2025年1月1日至2025年6月30日 (RMB '000) | 2024年1月1日至2024年6月30日 (RMB '000) | 本期比上期增長╱（下降） | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 1,665,642 | 1,169,284 | 42.45% | | Profit Before Tax | 314,359 | 75,098 | 318.60% | | Profit for the Period Attributable to Ordinary Equity Holders of the Company | 240,733 | 53,872 | 346.86% | | Net Cash Generated From/(Used In) Operating Activities | 389,736 | (129,342) | 401.32% | | Basic Earnings Per Share (RMB/share) | 0.0924 | 0.0207 | 346.38% | | Diluted Earnings Per Share (RMB/share) | 0.0924 | 0.0207 | 346.38% | | Weighted Average Return on Net Assets (%) | 2.86 | 0.67 | 增加2.19個百分點 | Scale Indicators (As of June 30, 2025) | 項目 | 2025年6月30日 (RMB '000) | 2024年12月31日 (RMB '000) | 本期末比上年期末增長╱（下降） | | :--- | :--- | :--- | :--- | | Total Assets | 43,186,520 | 39,981,081 | 8.02% | | Total Liabilities | 34,261,815 | 31,274,058 | 9.55% | | Accounts Payable to Brokerage Clients | 20,121,543 | 16,700,618 | 20.48% | | Equity Attributable to Ordinary Equity Holders and Holders of Perpetual Capital Securities | 8,544,448 | 8,295,533 | 3.00% | | Total Share Capital ('000 shares) | 2,604,567 | 2,604,567 | 0.00% | | Net Assets Per Share Attributable to Ordinary Equity Holders (RMB/share) | 3.28 | 3.18 | 3.14% | | Asset-Liability Ratio (%) | 61.31 | 62.60 | 減少1.29個百分點 | [The Company's Net Capital and Other Risk Control Indicators](index=14&type=section&id=Section%20III%20Summary%20of%20Accounting%20Data%20and%20Financial%20Indicators-The%20Company%27s%20Net%20Capital%20and%20Other%20Risk%20Control%20Indicators) As of June 30, 2025, net capital decreased to **RMB 5,615.40 million**, but all risk control indicators met regulatory requirements, demonstrating sound risk management Net Capital and Risk Control Indicators (RMB '000) | 項目 | 2025年6月30日 | 2024年12月31日 | 監管標準 | | :--- | :--- | :--- | :--- | | Net Capital | 5,615,398 | 5,903,665 | Not applicable | | Of which: Core Net Capital | 5,465,398 | 5,153,665 | Not applicable | | Subordinate Net Capital | 150,000 | 750,000 | Not applicable | | Net Assets | 8,547,167 | 8,274,815 | Not applicable | | Sum of Various Risk Capital Reserves | 3,411,162 | 3,359,516 | Not applicable | | Risk Coverage Ratio | 164.62% | 175.73% | ≥100% | | Capital Leverage Ratio | 24.85% | 23.62% | ≥8% | | Liquidity Coverage Ratio | 175.47% | 182.28% | ≥100% | | Net Stable Funding Ratio | 164.45% | 173.37% | ≥100% | | Net Capital/Net Assets | 65.70% | 71.34% | ≥20% | | Net Capital/Liabilities | 43.31% | 44.21% | ≥8% | | Net Assets/Liabilities | 65.92% | 61.97% | ≥10% | | Proprietary Equity Securities and Derivatives/Net Capital | 19.39% | 22.61% | ≤100% | | Proprietary Non-Equity Securities and Derivatives/Net Capital | 166.21% | 147.18% | ≤500% | - As of June 30, 2025, the Company's net capital was **RMB 5,615.40 million**, a decrease of **RMB 288.27 million** from the end of 2024[36](index=36&type=chunk) - During the reporting period, all risk control indicators, including net capital, met regulatory requirements[36](index=36&type=chunk) [Section IV Management Discussion and Analysis](index=15&type=section&id=Section%20IV%20Management%20Discussion%20and%20Analysis) This section analyzes the economic environment, market conditions, main business operations, financial performance, future outlook, and risk management strategies during the reporting period [Economic Environment and Market Conditions During the Reporting Period](index=15&type=section&id=Section%20IV%20Management%20Discussion%20and%20Analysis-Economic%20Environment%20and%20Market%20Conditions%20During%20the%20Reporting%20Period) In H1 2025, China's economy remained stable with **5.30% GDP growth**, while the A-share market showed an upward trend with significantly increased trading activity - In the first half of 2025, China's GDP grew by **5.30%** year-on-year[39](index=39&type=chunk) - In the first half of 2025, national industrial value added above designated size increased by **6.40%** year-on-year, service industry value added increased by **5.50%** year-on-year, and total retail sales of consumer goods increased by **5.00%** year-on-year[39](index=39&type=chunk) - During the reporting period, China's A-share market showed an upward trend, with the Shanghai Composite Index rising by **2.76%**, the Shenzhen Component Index by **0.48%**, and the ChiNext Index by **0.53%**[40](index=40&type=chunk) - The total trading volume of stocks and funds in Shanghai and Shenzhen markets amounted to **RMB 188.78 trillion**, an increase from the same period in 2024, with Shanghai increasing by **50.80%** and Shenzhen by **76.35%**[40](index=40&type=chunk) [Analysis of Main Business Operations](index=16&type=section&id=Section%20IV%20Management%20Discussion%20and%20Analysis-Analysis%20of%20Main%20Business%20Operations) The Group achieved substantial growth in operating revenue and net profit, with strong performance in brokerage, investment banking, and proprietary trading, while investment management revenue decreased Group Operating Performance (For the six months ended June 30, 2025) | 指标 | 2025年 (RMB million) | 2024年 (RMB million) | 同比增长 | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,665.64 | 1,169.28 | 42.45% | | Net Profit | 209.50 | 18.99 | 1,003.21% | [Brokerage and Wealth Management Business](index=16&type=section&id=Section%20IV%20Management%20Discussion%20and%20Analysis-Analysis%20of%20Main%20Business%20Operations-Brokerage%20and%20Wealth%20Management%20Business) Brokerage and wealth management revenue grew **36.19%** to **RMB 950.77 million**, driven by expanded client base, increased AUM, and robust financial product sales Brokerage and Wealth Management Business Operating Revenue | 业务 | 2025年 (RMB million) | 2024年 (RMB million) | 同比增长 | | :--- | :--- | :--- | :--- | | Operating Revenue | 950.77 | 698.13 | 36.19% | - The securities brokerage business opened **143,900 new accounts**, bringing the total client count to **4.1189 million**, a **3.21%** increase from the end of 2024; total client assets under management reached **RMB 189,284.21 million**, an increase of **5.55%**[43](index=43&type=chunk) - Stock and fund trading volume was **RMB 1,375,839.14 million**, a **65.04%** increase from the same period in 2024; market share for stocks and funds was **0.03645%**, an increase of **0.00064%** from the same period in 2024[43](index=43&type=chunk) - The wealth management business sold **2,346 financial products**, with a sales scale of **RMB 9,019.66 million**; as of the end of the reporting period, the financial product holding scale was **RMB 19,478.06 million**[46](index=46&type=chunk) - The capital intermediary business's margin financing and securities lending balance was **RMB 5,500.31 million**[47](index=47&type=chunk) - The total scale of asset custody, fund services, and fundraising supervision was **RMB 115,050 million**[48](index=48&type=chunk) [Investment Banking Business](index=18&type=section&id=Section%20IV%20Management%20Discussion%20and%20Analysis-Analysis%20of%20Main%20Business%20Operations-Investment%20Banking%20Business) Investment banking revenue grew **41.54%** to **RMB 92.68 million**, with progress in equity financing, bond financing, and NEEQ listing recommendations Investment Banking Business Operating Revenue | 业务 | 2025年 (RMB million) | 2024年 (RMB million) | 同比增长 | | :--- | :--- | :--- | :--- | | Operating Revenue | 92.68 | 65.48 | 41.54% | - Equity financing completed **1 financial advisory project** for a listed company, with multiple refinancing and M&A restructuring projects steadily advancing[50](index=50&type=chunk) - Bond financing completed **24 corporate bond projects**, with a total underwriting scale of **RMB 5,652 million**[51](index=51&type=chunk) - NEEQ listing recommendation business completed **1 declaration project** and **4 financing projects**; as of the end of the reporting period, there were **132 ongoing supervision projects**[52](index=52&type=chunk) [Investment Management Business](index=19&type=section&id=Section%20IV%20Management%20Discussion%20and%20Analysis-Analysis%20of%20Main%20Business%20Operations-Investment%20Management%20Business) Investment management revenue decreased **12.85%** to **RMB 132.08 million** due to AUM decline, despite good fixed-income product performance and Xinhua Fund's AUM growth Investment Management Business Operating Revenue | 业务 | 2025年 (RMB million) | 2024年 (RMB million) | 同比增长 | | :--- | :--- | :--- | :--- | | Operating Revenue | 132.08 | 151.56 | -12.85% | - Total asset management scale was **RMB 15,333.40 million**, including collective asset management plans of **RMB 3,763.53 million**, single asset management plans of **RMB 2,389.28 million**, and asset-backed securities special plans of **RMB 9,180.59 million**[55](index=55&type=chunk) - Xinhua Fund managed **47 public funds**, with an AUM of **RMB 53,206 million**, a **7.68%** year-on-year increase[57](index=57&type=chunk) - Hengtai Capital managed **2 private equity funds**, with a fund management scale of **RMB 2,900 million**[58](index=58&type=chunk) - Hengtai Pioneer directly invested in **22 projects**[59](index=59&type=chunk) [Proprietary Trading Business](index=21&type=section&id=Section%20IV%20Management%20Discussion%20and%20Analysis-Analysis%20of%20Main%20Business%20Operations-Proprietary%20Trading%20Business) Proprietary trading revenue grew **102.99%** to **RMB 475.12 million**, achieving strong returns from equity, fixed-income, and multi-strategy investments in A-share and Beijing Stock Exchange markets Proprietary Trading Business Operating Revenue | 业务 | 2025年 (RMB million) | 2024年 (RMB million) | 同比增长 | | :--- | :--- | :--- | :--- | | Operating Revenue | 475.12 | 234.06 | 102.99% | - Equity investment business achieved stable dividend and growth returns by building a multi-layered equity investment system, focusing on core assets, high-dividend stocks, and growth assets[61](index=61&type=chunk) - Fixed-income business captured trading opportunities amidst bond market volatility, reduced long-duration bond positions, increased allocation to high-grade credit bonds, and actively engaged in interest rate derivative trading, yielding good returns[62](index=62&type=chunk) - Multi-strategy investment business capitalized on high-elasticity opportunities in the Beijing Stock Exchange market, increasing equity exposure, and made preliminary preparations for commodity futures investments[62](index=62&type=chunk) [Outlook and Future Plans](index=22&type=section&id=Section%20IV%20Management%20Discussion%20and%20Analysis-Outlook%20and%20Future%20Plans) The company anticipates deepening capital market reforms and accelerated industry consolidation, planning to enhance governance, risk control, and operational efficiency, while driving business transformation and leveraging financial technology for differentiated advantages - Capital market reforms continue to deepen, and securities industry consolidation is accelerating, with leading securities firms expected to integrate faster, while small and medium-sized firms need to adopt differentiated operating strategies[63](index=63&type=chunk)[64](index=64&type=chunk) - The securities industry's traditional brokerage business is accelerating its transformation towards a buyer-side investment advisory model, investment banking will focus on "five major articles" guidance, and asset management will revolve around structural optimization, capability upgrading, and differentiated competition[64](index=64&type=chunk) - The company will continuously enhance business capabilities, promote transformation and upgrading, accelerate the construction of its business brand system, strengthen financial technology empowerment, improve client service capabilities, and develop segmented business capabilities to form differentiated competitive advantages[65](index=65&type=chunk) - Future plans include deepening refined client operations, strengthening investment advisory business development, exploring new proprietary trading profit models (such as options, ETF arbitrage, convertible bond investments), enriching asset management product strategies, and focusing investment banking business on new energy, new technology, and high-end manufacturing industries[65](index=65&type=chunk) [Financial Statement Analysis](index=24&type=section&id=Section%20IV%20Management%20Discussion%20and%20Analysis-Financial%20Statement%20Analysis) The Group's profitability significantly improved, with substantial growth in total operating revenue and net profit attributable to shareholders, while asset and liability structures remained stable, and operating cash flow turned positive Profitability Indicators (For the six months ended June 30, 2025) | 指标 | 2025年 (RMB million) | 2024年 (RMB million) | 同比增长 | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 1,665.64 | 1,169.28 | 42.45% | | Net Profit Attributable to Ordinary Equity Holders of the Company | 240.73 | 53.87 | 346.86% | | Earnings Per Share (RMB) | 0.0924 | 0.0207 | 346.38% | | Weighted Average Return on Net Assets (%) | 2.86 | 0.67 | 增加2.19个百分点 | Asset and Liability Situation (As of June 30, 2025) | 指标 | 2025年6月30日 (RMB million) | 2024年12月31日 (RMB million) | 变化 | | :--- | :--- | :--- | :--- | | Total Assets | 43,186.52 | 39,981.08 | 增长8.02% | | Total Liabilities | 34,261.82 | 31,274.06 | 增长9.55% | | Equity Attributable to Ordinary Equity Holders and Holders of Perpetual Capital Securities | 8,544.45 | 8,295.53 | 增长3.00% | | Asset-Liability Ratio (%) | 61.31 | 62.60 | 减少1.29个百分点 | | Financial Leverage Ratio | 2.70 | 2.81 | 下降3.91% | - The asset structure remained stable, with cash assets accounting for **54.66%**, financing assets for **13.40%**, and financial investment assets for **27.92%**[67](index=67&type=chunk) - The company diversified its debt financing channels through issuing income certificates, re-lending, and borrowing subordinated debt, and obtained substantial comprehensive credit lines from multiple banks[70](index=70&type=chunk) Cash Flow Movement (For the six months ended June 30, 2025) | 现金流类型 | 2025年 (RMB million) | 2024年 (RMB million) | 同比变化 (RMB million) | | :--- | :--- | :--- | :--- | | Net Cash From/(Used In) Operating Activities | 389.74 | -129.34 | 增加519.08 | | Net Cash From/(Used In) Investing Activities | 305.51 | -409.32 | 增加714.83 | | Net Cash From/(Used In) Financing Activities | -850.35 | 613.99 | 减少1,464.34 | | Cash and Cash Equivalents at End of Period | 2,086.77 | 2,109.68 | 减少22.91 | - During the reporting period, there were no changes to the Company's major accounting policies[73](index=73&type=chunk) [Branches and Subsidiaries](index=26&type=section&id=Section%20IV%20Management%20Discussion%20and%20Analysis-Branches%20and%20Subsidiaries) The company had **7 branches** and **102 brokerage offices**, with relocations, upgrades, and changes in registered capital or legal representatives for key subsidiaries - As of the end of the reporting period, the company had a total of **7 branches** and **102 securities brokerage offices**[74](index=74&type=chunk) - During the reporting period, **5 securities brokerage offices** completed relocation, with no new establishments or cancellations[75](index=75&type=chunk) - **4 securities brokerage offices** were upgraded to branches, including Shandong Branch, Shanghai First Branch, Shanghai Second Branch, and Zhejiang Branch[76](index=76&type=chunk) - Hengtai Futures completed a change in registered capital, from **RMB 125 million** to **RMB 228.0303 million**[79](index=79&type=chunk) - Xinhua Fund completed a change in registered capital, from **RMB 217.50 million** to **RMB 627.756410 million**, with the Company's shareholding ratio changing from **58.62%** to **52.99%**[79](index=79&type=chunk) [Significant Financing Activities](index=28&type=section&id=Section%20IV%20Management%20Discussion%20and%20Analysis-Significant%20Financing%20Activities) No equity financing occurred; debt financing included **RMB 1.35 billion** in income certificates and **RMB 150 million** in subordinated debt, with outstanding balances of **RMB 1.58 billion**, **RMB 1.50 billion**, and **RMB 1.95 billion** respectively - During the reporting period, the company had no equity financing[77](index=77&type=chunk) Issuance of Income Certificates (For the six months ended June 30, 2025) | 名称 | 发行规模 (RMB hundred million) | 发行利率 | 期限 (天) | 发行日 | 到期日 | | :--- | :--- | :--- | :--- | :--- | :--- | | Hengchuang Taifu No. 59 | 3.00 | 2.30% | 91 | 2025-1-22 | 2025-4-23 | | Hengchuang Taifu No. 60 | 4.00 | 2.80% | 356 | 2025-2-11 | 2026-2-2 | | Hengchuang Taifu No. 61 | 3.00 | 2.40% | 91 | 2025-3-28 | 2025-6-27 | | Hengchuang Taifu No. 62 | 3.00 | 2.40% | 90 | 2025-4-29 | 2025-7-28 | | Hengfu No. 41 | 0.50 | 2.60% | 347 | 2025-6-13 | 2026-5-26 | - During the reporting period, the company raised a total of **RMB 1.35 billion** through the issuance of income certificates; as of June 30, 2025, the outstanding balance of unexpired income certificates was **RMB 1.58 billion**[78](index=78&type=chunk) - During the reporting period, the company did not issue subordinated bonds; as of June 30, 2025, the outstanding balance of unexpired subordinated bonds was **RMB 1.50 billion**[81](index=81&type=chunk) - During the reporting period, the company did not issue corporate bonds; as of June 30, 2025, the outstanding balance of unexpired corporate bonds was **RMB 1.95 billion**[82](index=82&type=chunk) Borrowing of Subordinated Debt (For the six months ended June 30, 2025) | 名称 | 借入规模 (RMB hundred million) | 借款利率 | 期限 (年) | 起息日 | 到期日 | | :--- | :--- | :--- | :--- | :--- | :--- | | Subordinated Debt | 1.50 | 4.00% | 5 | 2025-5-15 | 2030-5-14 | - During the reporting period, the company borrowed a total of **RMB 150 million** in subordinated debt; as of June 30, 2025, the outstanding balance of unexpired subordinated debt was **RMB 150 million**[83](index=83&type=chunk) [Significant Investment Activities](index=29&type=section&id=Section%20IV%20Management%20Discussion%20and%20Analysis-Significant%20Investment%20Activities) During the reporting period, the company did not engage in any significant investment activities - During the reporting period, there were no significant investment activities[84](index=84&type=chunk) [Significant Asset Acquisitions, Disposals, External Guarantees, Mortgages, Pledges, and Significant Contingent Liabilities](index=30&type=section&id=Section%20IV%20Management%20Discussion%20and%20Analysis-Significant%20Asset%20Acquisitions%2C%20Disposals%2C%20External%20Guarantees%2C%20Mortgages%2C%20Pledges%2C%20and%20Significant%20Contingent%20Liabilities) No significant asset acquisitions, disposals, or mergers occurred; no major contingent liabilities, but counter-guarantees for Xinhua Fund and pledged properties/subsidiary equity were in place - During the reporting period, the Company did not engage in any significant asset acquisitions, disposals, or corporate mergers; nor did it incur any significant contingent liabilities or other matters affecting its financial position and operating results[85](index=85&type=chunk) - The company provided a counter-guarantee for Xinhua Fund, pledging residential property in Building 2, Unit 1, Courtyard 6, Dongjing Road, Xicheng District, Beijing (appraised value approximately **RMB 130 million**) and the Manshi Shangdu office and commercial complex on Hailaer East Street, Xincheng District, Hohhot, Inner Mongolia Autonomous Region (appraised value approximately **RMB 120 million**) to Financial Street Investment as collateral[86](index=86&type=chunk)[87](index=87&type=chunk) - **50% equity** and derivative interests of Hengtai Changcai (a wholly-owned subsidiary of the Company) (appraised value approximately **RMB 550 million**) were also used as collateral[87](index=87&type=chunk) [Risk Management](index=31&type=section&id=Section%20IV%20Management%20Discussion%20and%20Analysis-Risk%20Management) The company established a comprehensive risk management system covering credit, market, liquidity, compliance, operational, and reputational risks, ensuring regulatory compliance and continuous enhancement - The main risks in the company's operations include credit risk, market risk, liquidity risk, compliance risk, operational risk, and reputational risk[89](index=89&type=chunk)[90](index=90&type=chunk)[91](index=91&type=chunk)[92](index=92&type=chunk)[93](index=93&type=chunk)[94](index=94&type=chunk) - The company has established and regularly revises systems such as the "Hengtai Securities Co., Ltd. Comprehensive Risk Management Measures" and the "Hengtai Securities Co., Ltd. Risk Management Culture Manual"[96](index=96&type=chunk) - The company has established a four-level risk management system including the Board of Directors, Party Committee, management, risk management functional departments, and business departments, and has incorporated all subsidiaries into the comprehensive risk management system[97](index=97&type=chunk) - The company has established a risk appetite indicator system centered on net capital and liquidity, covering market risk, credit risk, operational risk, and concentration risk[99](index=99&type=chunk) - The company's Risk Management Department has established professional teams in four secondary departments: market risk, credit risk, operational risk, and comprehensive risk, with risk management personnel having over three years of relevant work experience accounting for over **2%** of all headquarters employees[101](index=101&type=chunk) - The company has established working mechanisms such as dynamic net capital monitoring, risk authorization, regular risk reporting, regular stress testing, and risk scheduling meetings, and has developed emergency response plans for major risks and emergencies[102](index=102&type=chunk) [Section V Other Important Matters](index=36&type=section&id=Section%20V%20Other%20Important%20Matters) This section covers profit distribution, share option plans, significant litigation, auditor appointments, corporate governance code compliance, company governance, and directors' and supervisors' securities trading and share acquisition rights [Profit Distribution and Profit Distribution Plan](index=36&type=section&id=Section%20V%20Other%20Important%20Matters-Profit%20Distribution%20and%20Profit%20Distribution%20Plan) The company's 2024 profit distribution plan involved no distribution, and there is no plan for H1 2025 - The Company's 2024 profit distribution plan was to make no profit distribution, which was approved at the Annual General Meeting on May 16, 2025[103](index=103&type=chunk) - The Company has no profit distribution plan for the first half of 2025[103](index=103&type=chunk) [Share Option Schemes or Equity Incentive Plans](index=36&type=section&id=Section%20V%20Other%20Important%20Matters-Share%20Option%20Schemes%20or%20Equity%20Incentive%20Plans) During the reporting period, the company had no share option schemes or equity incentive plans, nor any implementation thereof - During the reporting period, the company had no share option schemes or equity incentive plans, nor any implementation thereof[104](index=104&type=chunk) [Significant Litigation and Arbitration Matters](index=36&type=section&id=Section%20V%20Other%20Important%20Matters-Significant%20Litigation%20and%20Arbitration%20Matters) No new significant litigation or arbitration occurred; a previous dispute saw the Supreme People's Court overturn a first-instance ruling and remand the case for retrial - During the reporting period, there were no new significant litigation or arbitration matters[105](index=105&type=chunk) - In the dispute concerning the Qinghui Leasing Phase I Asset-Backed Special Plan managed by the company, the Supreme People's Court, on June 30, 2025, overturned the first-instance ruling and instructed the Beijing High People's Court to hear the case[109](index=109&type=chunk) - The case involves the company suing Qinghui Leasing and Hongyuan Petrochemical in 2018, with total claims amounting to approximately **RMB 530 million**[107](index=107&type=chunk) [Appointment of Auditors](index=37&type=section&id=Section%20V%20Other%20Important%20Matters-Appointment%20of%20Auditors) The company re-appointed Grant Thornton (Special General Partnership) as its 2025 domestic auditor and Grant Thornton (Hong Kong) Limited as its 2025 international auditor - The Company re-appointed Grant Thornton (Special General Partnership) as its 2025 domestic auditor[110](index=110&type=chunk) - The Company re-appointed Grant Thornton (Hong Kong) Limited as its 2025 international auditor[110](index=110&type=chunk) [Compliance with Corporate Governance Code](index=37&type=section&id=Section%20V%20Other%20Important%20Matters-Compliance%20with%20Corporate%20Governance%20Code) The company strictly complied with all Corporate Governance Code provisions and will continue to review and enhance its corporate governance practices - During the reporting period, the Company strictly complied with all code provisions contained in Part Two of the Corporate Governance Code[111](index=111&type=chunk) - The company will continue to review and enhance its corporate governance practices to ensure compliance with the Corporate Governance Code[111](index=111&type=chunk) [Corporate Governance Status](index=38&type=section&id=Section%20V%20Other%20Important%20Matters-Corporate%20Governance%20Status) Shareholders held **3 meetings**, the Board held **5 meetings** reviewing **27 proposals**, and specialized committees operated normally; the Supervisory Committee held **1 meeting**, reviewing **7 proposals** - During the reporting period, the General Meeting of Shareholders held **3 meetings**[112](index=112&type=chunk) - The Board of Directors consists of **9 directors** and has four specialized committees: Strategy and Investment Decision Committee, Risk Control and Supervision Committee, Audit Committee, and Remuneration and Nomination Committee[113](index=113&type=chunk) - During the reporting period, the Board of Directors held **5 meetings**, reviewing **27 proposals**; all specialized committees also held meetings[114](index=114&type=chunk) - The Supervisory Committee consists of **3 supervisors** and held **1 meeting** during the reporting period, reviewing **7 proposals**[118](index=118&type=chunk) [Compliance with the Model Code](index=39&type=section&id=Section%20V%20Other%20Important%20Matters-Compliance%20with%20the%20Model%20Code) The company adopted the Model Code for directors' and supervisors' securities transactions, with all confirming compliance during the reporting period - The company has adopted the Model Code as the code of conduct for directors and supervisors' securities transactions[119](index=119&type=chunk) - All directors and supervisors have confirmed that they have complied with the standards set out in the Model Code throughout the reporting period[119](index=119&type=chunk) [Directors' and Supervisors' Service Contracts](index=39&type=section&id=Section%20V%20Other%20Important%20Matters-Directors%27%20and%20Supervisors%27%20Service%20Contracts) No directors or supervisors have non-terminable service contracts within one year without compensation (excluding statutory compensation) with the company or its subsidiaries - No directors or supervisors have entered into service contracts with the Company or its subsidiaries that are not terminable within one year without compensation (other than statutory compensation)[120](index=120&type=chunk) [Rights of Directors and Supervisors to Acquire Shares or Debentures](index=39&type=section&id=Section%20V%20Other%20Important%20Matters-Rights%20of%20Directors%20and%20Supervisors%20to%20Acquire%20Shares%20or%20Debentures) No directors, supervisors, or their associates acquired rights to company shares or debentures, nor were any arrangements made by the company for such acquisitions - During the reporting period, no directors, supervisors, or their respective spouses or children under 18 years of age acquired rights to shares or debentures of the Company through purchase[121](index=121&type=chunk) - Nor were any arrangements made by the Company or any of its subsidiaries for the Company's directors, supervisors, or their respective spouses or children under 18 years of age to acquire such rights in any other body corporate[121](index=121&type=chunk) [Section VI Changes in Shares and Shareholder Information](index=40&type=section&id=Section%20VI%20Changes%20in%20Shares%20and%20Shareholder%20Information) This section details major shareholders' and other persons' interests and short positions in company shares, and interests of directors, supervisors, and chief executives [Interests and Short Positions of Major Shareholders and Other Persons in the Company's Shares and Related Shares](index=40&type=section&id=Section%20VI%20Changes%20in%20Shares%20and%20Shareholder%20Information-Interests%20and%20Short%20Positions%20of%20Major%20Shareholders%20and%20Other%20Persons%20in%20the%20Company%27s%20Shares%20and%20Related%20Shares) As of June 30, 2025, major shareholders, including Huarong, Financial Street entities, Xicheng District SASAC, Tianfeng Securities, Baotou Huazi, Huifa Technology, Hongzhi Huitong, and H-share holders, held long positions Major Shareholder Holdings (As of June 30, 2025) | 主要股東名稱 | 股份類別 | 權益性質 | 持有的股份數目（股） | 佔本公司已發行股份總數的概約百分比 (%) | 佔本公司已發行內資股╱H股的概約百分比 (%) | 好倉╱淡倉╱可供借出的股份 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Huarong Comprehensive Investment | Domestic Shares | Beneficial Owner | 569,895,304 | 21.8806 | 26.4610 | Long Position | | Financial Street Investment | Domestic Shares | Controlled Corporation Interest | 781,367,619 | 29.9999 | 36.2799 | Long Position | | Xicheng District SASAC | Domestic Shares | Controlled Corporation Interest | 781,367,619 | 29.9999 | 36.2799 | Long Position | | Tianfeng Securities | Domestic Shares | Beneficial Owner | 440,618,114 | 16.9171 | 20.4585 | Long Position | | Baotou Huazi | Domestic Shares | Beneficial Owner | 308,000,000 | 11.8254 | 14.3008 | Long Position | | Huifa Technology | Domestic Shares | Beneficial Owner | 154,000,000 | 5.9127 | 7.1504 | Long Position | | Hongzhi Huitong | Domestic Shares | Beneficial Owner | 123,500,000 | 4.7417 | 5.7343 | Long Position | | Glowing Lane Limited | H Shares | Beneficial Owner | 124,724,000 | 4.7887 | 27.6644 | Long Position | | Ravi Global Limited | H Shares | Beneficial Owner | 123,206,000 | 4.7304 | 27.3277 | Long Position | - As of June 30, 2025, the Company had a total of **2,604,567,412 issued shares**, including **2,153,721,412 domestic shares** and **450,846,000 H shares**[124](index=124&type=chunk) [Interests and Short Positions of Directors, Supervisors and Chief Executive in Shares, Underlying Shares and Debentures of the Company and its Associated Corporations](index=42&type=section&id=Section%20VI%20Changes%20in%20Shares%20and%20Shareholder%20Information-Interests%20and%20Short%20Positions%20of%20Directors%2C%20Supervisors%20and%20Chief%20Executive%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20and%20its%20Associated%20Corporations) As of June 30, 2025, no directors, supervisors, or chief executive held disclosable interests or short positions in the company's or its associated corporations' shares or debentures - As of June 30, 2025, no directors, supervisors, or chief executive of the Company held any interests or short positions in the shares, underlying shares, or debentures of the Company or its associated corporations that are required to be disclosed under the Securities and Futures Ordinance or the Model Code[125](index=125&type=chunk) [Purchase, Redemption or Sale of the Company's Listed Securities](index=42&type=section&id=Section%20VI%20Changes%20in%20Shares%20and%20Shareholder%20Information-Purchase%2C%20Redemption%20or%20Sale%20of%20the%20Company%27s%20Listed%20Securities) Neither the company nor its subsidiaries purchased, redeemed, or sold any listed securities, and no treasury shares were held at period-end - During the reporting period, neither the Company nor its subsidiaries purchased, redeemed, or sold any of the Company's listed securities[126](index=126&type=chunk) - As of the end of the reporting period, the Company held no treasury shares[126](index=126&type=chunk) [Section VII Directors, Supervisors, Senior Management and Employees](index=43&type=section&id=Section%20VII%20Directors%2C%20Supervisors%2C%20Senior%20Management%20and%20Employees) This section details changes in directors, supervisors, and senior management, along with information on employees, remuneration policies, and training programs [Changes in Directors, Supervisors and Senior Management](index=43&type=section&id=Section%20VII%20Directors%2C%20Supervisors%2C%20Senior%20Management%20and%20Employees-Changes%20in%20Directors%2C%20Supervisors%20and%20Senior%20Management) Mr. Pang Jiemin was appointed non-executive director, Mr. Yu Lei resigned, and Mr. Yang Jinliang was appointed Vice President, with other changes in directors' and supervisors' positions - On January 10, 2025, Mr. Pang Jiemin was appointed as a non-executive director of the Fifth Board of Directors, and Mr. Yu Lei resigned[128](index=128&type=chunk) - During the reporting period, there were no changes in supervisors[129](index=129&type=chunk) - On March 29, 2025, Mr. Yang Jinliang was appointed as Vice President of the company[130](index=130&type=chunk) - Some directors and supervisors had other changes in their positions, for example, Mr. Zhu Yanhui no longer served as a director of Beijing Xicheng Charity Association, and Mr. Li Yanyong no longer served as the legal representative and chairman of Baotou Huazi Industrial Co., Ltd., but served as a senior advisor[131](index=131&type=chunk)[135](index=135&type=chunk) [Employees, Remuneration Policy and Training](index=44&type=section&id=Section%20VII%20Directors%2C%20Supervisors%2C%20Senior%20Management%20and%20Employees-Employees%2C%20Remuneration%20Policy%20and%20Training) The Group had **2,491 employees**; the company established a robust remuneration mechanism with diversified structure, deferred payment, and clawback provisions, providing extensive training with **100%** coverage - As of the end of the reporting period, the Group had a total of **2,491 employees**, including **2,075 employees** of the Company and **416 employees** of subsidiaries[133](index=133&type=chunk) - The company has established a diversified remuneration structure consisting of fixed remuneration, variable remuneration, and benefits, and has implemented a deferred payment mechanism for remuneration distribution and a clawback mechanism for salaries[133](index=133&type=chunk) - In 2025, the company launched and implemented an enterprise annuity plan, further enhancing employee welfare and security[133](index=133&type=chunk) - During the reporting period, the company organized and implemented **41 internal and external training sessions**, with a total of **7,849 participants**, achieving a training coverage rate of **100%**[134](index=134&type=chunk) - The company implemented layered and categorized training programs such as the "Kunpeng Plan" and "Hundred Talents Plan," focusing on the development of talent pipelines for key positions[134](index=134&type=chunk) [Independent Review Report](index=45&type=section&id=Independent%20Review%20Report) Grant Thornton (Hong Kong) Limited reviewed Hengtou Securities' interim financial information for H1 2025, concluding no non-compliance with IAS 34 based on HKSRS 2410 [Introduction and Conclusion](index=45&type=section&id=Independent%20Review%20Report-Introduction%20and%20Conclusion) Grant Thornton (Hong Kong) Limited reviewed Hengtou Securities' interim financial information for H1 2025, concluding no non-compliance with IAS 34 based on HKSRS 2410 - Grant Thornton (Hong Kong) Limited has reviewed the Company's interim financial information for the six months ended June 30, 2025[137](index=137&type=chunk) - The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410 issued by the Hong Kong Institute of Certified Public Accountants, and its scope is less than an audit, thus no audit opinion is expressed[138](index=138&type=chunk) - Based on the review, nothing has come to the auditor's attention that causes them to believe that the interim financial information is not prepared, in all material respects, in accordance with International Accounting Standard 34 "Interim Financial Reporting"[139](index=139&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=47&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For H1 2025, the Group's total operating revenue was **RMB 1,665,642 thousand**, up **42.45%**, with profit for the period significantly growing **1,003.21%** to **RMB 209,500 thousand** [Profit or Loss and Comprehensive Income](index=47&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income-Profit%20or%20Loss%20and%20Comprehensive%20Income) For H1 2025, the Group's total operating revenue was **RMB 1,665,642 thousand**, up **42.45%**, with profit for the period significantly growing **1,003.21%** to **RMB 209,500 thousand** Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30, 2025) | 項目 | 2025年 (RMB '000) | 2024年 (RMB '000) | | :--- | :--- | :--- | | Fee and commission income | 838,699 | 572,872 | | Interest income | 353,446 | 353,347 | | Net investment income | 258,674 | 187,962 | | Other income and gains | 214,823 | 55,103 | | **Total Operating Revenue** | **1,665,642** | **1,169,284** | | Fee and commission expenses | (118,523) | (74,127) | | Interest expenses | (195,238) | (198,485) | | Staff costs | (604,588) | (362,163) | | Depreciation and amortization | (92,141) | (103,729) | | Taxes and surcharges | (8,662) | (6,694) | | Other operating expenses | (208,881) | (158,110) | | Asset impairment losses, net | (106,746) | (42,409) | | Unrealized fair value loss on financial assets measured at fair value through profit or loss | (16,504) | (148,469) | | **Total Operating Expenses** | **(1,351,283)** | **(1,094,186)** | | **Profit Before Tax** | **314,359** | **75,098** | | Income tax expense | (104,859) | (56,104) | | **Profit for the Period** | **209,500** | **18,994** | Profit for the Period and Comprehensive Income Attributable (For the six months ended June 30, 2025) | 項目 | 2025年 (RMB '000) | 2024年 (RMB '000) | | :--- | :--- | :--- | | Profit for the period attributable to: | | | | Ordinary equity holders of the Company | 240,733 | 53,872 | | Non-controlling interests | (31,233) | (34,878) | | **Total Profit for the Period** | **209,500** | **18,994** | | Total comprehensive income for the period attributable to: | | | | Ordinary equity holders of the Company | 248,915 | 68,494 | | Non-controlling interests | (31,233) | (34,878) | | **Total Comprehensive Income for the Period** | **217,682** | **33,616** | | Earnings per share (basic and diluted) | RMB 0.0924 | RMB 0.0207 | [Condensed Consolidated Statement of Financial Position](index=49&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets increased **8.02%** to **RMB 43,186,520 thousand**, total liabilities increased **9.55%** to **RMB 34,261,815 thousand**, and total equity increased to **RMB 8,924,705 thousand** [Assets, Liabilities and Equity](index=49&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position-Assets%2C%20Liabilities%20and%20Equity) As of June 30, 2025, total assets increased **8.02%** to **RMB 43,186,520 thousand**, total liabilities increased **9.55%** to **RMB 34,261,815 thousand**, and total equity increased to **RMB 8,924,705 thousand** Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | 項目 | 2025年6月30日 (RMB '000) | 2024年12月31日 (RMB '000) | | :--- | :--- | :--- | | **Total Non-current Assets** | **2,817,668** | **2,411,328** | | Amounts due from financing clients | 5,445,620 | 5,840,304 | | Financial assets measured at fair value through other comprehensive income | 2,073,637 | 2,418,119 | | Financial assets measured at fair value through profit or loss | 9,983,470 | 9,645,475 | | Cash held on behalf of brokerage clients | 19,271,204 | 16,178,519 | | Cash and cash equivalents | 1,759,952 | 1,907,249 | | **Total Current Assets** | **40,368,852** | **37,569,753** | | **Total Assets** | **43,186,520** | **39,981,081** | | Debt instruments (current) | 3,067,462 | 2,420,000 | | Accounts payable to brokerage clients | 20,121,543 | 16,700,618 | | Financial assets sold under repurchase agreements | 3,776,815 | 4,099,600 | | **Total Current Liabilities** | **31,458,996** | **26,978,763** | | Debt instruments (non-current) | 1,923,894 | 3,394,895 | | **Total Non-current Liabilities** | **2,802,819** | **4,295,295** | | **Total Liabilities** | **34,261,815** | **31,274,058** | | **Total Equity** | **8,924,705** | **8,707,023** | | Equity attributable to ordinary equity holders of the Company | 8,544,448 | 8,295,533 | [Condensed Consolidated Statement of Changes in Equity](index=52&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For H1 2025, equity attributable to ordinary equity holders increased from **RMB 8,295,533 thousand** to **RMB 8,544,448 thousand**, primarily due to profit for the period and other comprehensive income [Changes in Equity](index=52&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity-Changes%20in%20Equity) For H1 2025, equity attributable to ordinary equity holders increased from **RMB 8,295,533 thousand** to **RMB 8,544,448 thousand**, primarily due to profit for the period and other comprehensive income Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30, 2025) | 項目 | Share Capital (RMB '000) | Share Premium (RMB '000) | Surplus Reserve (RMB '000) | General Risk Reserve (RMB '000) | Trading Risk Reserve (RMB '000) | Investment Revaluation Reserve (RMB '000) | Retained Earnings (RMB '000) | Subtotal Attributable to Ordinary Equity Holders of the Company (RMB '000) | Non-controlling Interests (RMB '000) | Total Equity (RMB '000) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | As of January 1, 2025 (audited) | 2,604,567 | 1,665,236 | 682,940 | 1,073,607 | 804,352 | (9,122) | 1,473,953 | 8,295,533 | 411,490 | 8,707,023 | | Profit for the period | – | – | – | – | – | – | 240,733 | 240,733 | (31,233) | 209,500 | | Other comprehensive income for the period | – | – | – | – | – | 8,182 | – | 8,182 | – | 8,182 | | Total comprehensive income for the period | – | – | – | – | – | 8,182 | 240,733 | 248,915 | (31,233) | 217,682 | | Transfer to general risk reserve | – | – | – | 6,458 | – | – | (6,458) | – | – | – | | As of June 30, 2025 (unaudited) | 2,604,567 | 1,665,236 | 682,940 | 1,080,065 | 804,352 | (940) | 1,708,228 | 8,544,448 | 380,257 | 8,924,705 | [Condensed Consolidated Statement of Cash Flows](index=53&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For H1 2025, net cash from operating activities was **RMB 389,736 thousand**, from investing activities **RMB 305,507 thousand**, and used in financing activities **RMB 850,352 thousand**, with period-end cash and cash equivalents of **RMB 2,086,770 thousand** [Cash Flows](index=53&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows-Cash%20Flows) For H1 2025, net cash from operating activities was **RMB 389,736 thousand**, from investing activities **RMB 305,507 thousand**, and used in financing activities **RMB 850,352 thousand**, with period-end cash and cash equivalents of **RMB 2,086,770 thousand** Condensed Consolidated Statement of Cash Flows (For the six months ended June 30, 2025) | 項目 | 2025年 (RMB '000) | 2024年 (RMB '000) | | :--- | :--- | :--- | | Net cash generated from/(used in) operating activities | 389,736 | (129,342) | | Net cash generated from/(used in) investing activities | 305,507 | (409,316) | | Net cash (used in)/generated from financing activities | (850,352) | 613,992 | | Net (decrease)/increase in cash and cash equivalents | (155,109) | 75,334 | | Cash and cash equivalents at beginning of period | 2,242,066 | 2,034,205 | | Effect of foreign exchange rate changes | (187) | 138 | | Cash and cash equivalents at end of period | 2,086,770 | 2,109,677 | [Notes to the Condensed Consolidated Financial Statements](index=54&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to the condensed consolidated financial statements, covering preparation basis, new IFRS adoption, and breakdowns of income, expense, asset, and liability items [Basis of Preparation](index=54&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements-Basis%20of%20Preparation) Interim financial information is prepared per IAS 34 and HKEX Listing Rules, to be read with 2024 annual statements, with data in **RMB thousand** unless specified - The interim financial information is prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and the disclosure requirements of the Hong Kong Stock Exchange Listing Rules[151](index=151&type=chunk) - The interim financial data should be read in conjunction with the Group's financial statements for the year ended December 31, 2024[151](index=151&type=chunk) - Unless otherwise specified, the interim financial information is presented in **RMB thousand**[152](index=152&type=chunk) [Adoption of New and Revised International Financial Reporting Standards](index=54&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements-Adoption%20of%20New%20and%20Revised%20International%20Financial%20Reporting%20Standards) The Group adopted IAS 21 amendment "Lack of Exchangeability" effective January 1, 2025, with no significant impact, and lists other issued but not yet effective IFRS - The Group has adopted the amendment to International Accounting Standard 21 "Lack of Exchangeability" effective January 1, 2025[153](index=153&type=chunk) - The adoption of these revised International Financial Reporting Standards has no significant impact on the interim financial report[154](index=154&type=chunk) - Standards issued but not yet effective include amendments to IAS 18, IAS 19, IFRS 9 and IFRS 7, IFRS 10 and IAS 28, among others[156](index=156&type=chunk) [Fee and Commission Income](index=56&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements-Fee%20and%20Commission%20Income) For H1 2025, fee and commission income significantly increased to **RMB 838,699 thousand**, primarily driven by securities brokerage, with growth in asset management, underwriting, futures brokerage, and investment advisory Fee and Commission Income Details (For the six months ended June 30, 2025) | 項目 | 2025年 (RMB '000) | 2024年 (RMB '000) | | :--- | :--- | :--- | | Securities brokerage business | 544,618 | 364,314 | | Asset management business | 95,994 | 93,099 | | Underwriting and sponsorship business | 66,631 | 35,861 | | Financial advisory business | 21,237 | 22,077 | | Futures brokerage business | 68,469 | 35,663 | | Investment advisory business | 37,051 | 14,317 | | Custody business | 4,699 | 7,541 | | **Total** | **838,699** | **572,872** | - Revenue recognized at a point in time was **RMB 679,718 thousand**, and revenue recognized over time was **RMB 158,981 thousand**[158](index=158&type=chunk) [Interest Income](index=57&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements-Interest%20Income) For H1 2025, total interest income was **RMB 353,446 thousand**, largely stable year-on-year, primarily from financing activities and deposits with financial institutions Interest Income Details (For the six months ended June 30, 2025) | 項目 | 2025年 (RMB '000) | 2024年 (RMB '000) | | :--- | :--- | :--- | | Financing | 182,693 | 168,188 | | Deposits with financial institutions | 143,221 | 145,729 | | Financial assets purchased under resale agreements | 2,136 | 7,485 | | Financial assets measured at fair value through other comprehensive income | 25,396 | 31,204 | | Debt investments at amortized cost | – | 741 | | **Total** | **353,446** | **353,347** | [Net Investment Income](index=57&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements-Net%20Investment%20Income) For H1 2025, net investment income increased to **RMB 258,674 thousand**, primarily from dividends, interest income on financial assets, and realized gains from disposals Net Investment Income Details (For the six months ended June 30, 2025) | 項目 | 2025年 (RMB '000) | 2024年 (RMB '000) | | :--- | :--- | :--- | | Dividend and interest income from financial assets measured at fair value through profit or loss and other comprehensive income | 110,132 | 116,625 | | Net realized gains from disposal of financial assets measured at fair value through profit or loss, financial assets measured at fair value through other comprehensive income, debt investments at amortized cost, and derivative financial instruments | 148,542 | 71,337 | | **Total** | **258,674** | **187,962** | [Other Income and Gains](index=58&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements-Other%20Income%20and%20Gains) For H1 2025, other income and gains significantly increased to **RMB 214,823 thousand**, mainly due to substantial unrealized fair value gains on financial assets and derivative financial instruments Other Income and Gains Details (For the six months ended June 30, 2025) | 項目 | 2025年 (RMB '000) | 2024年 (RMB '000) | | :--- | :--- | :--- | | Exchange losses/(gains), net | (186) | 138 | | Rental income | 2,342 | 2,219 | | Government grants | 2,803 | 2,305 | | Gains on disposal of property and equipment | 126 | 62 | | Unrealized fair value gains on financial assets measured at fair value through profit or loss and derivative financial instruments | 209,372 | 49,616 | | Others | 366 | 763 | | **Total** | **214,823** | **55,103** | [Fee and Commission Expenses](index=58&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements-Fee%20and%20Commission%20Expenses) For H1 2025, fee and commission expenses increased to **RMB 118,523 thousand**, primarily due to higher expenses in securities brokerage business Fee and Commission Expenses Details (For the six months ended June 30, 2025) | 項目 | 2025年 (RMB '000) | 2024年 (RMB '000) | | :--- | :--- | :--- | | Securities brokerage business | 112,604 | 67,383 | | Underwriting and sponsorship business | 5,919 | 5,800 | | Financial advisory business | – | 944 | | **Total** | **118,523** | **74,127** | [Interest Expenses](index=59&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements-Interest%20Expenses) For H1 2025, interest expenses slightly decreased to **RMB 195,238 thousand**, with major expenditures on debt instruments, borrowings from financial institutions, and financial assets sold under repurchase agreements Interest Expenses Details (For the six months ended June 30, 2025) | 項目 | 2025年 (RMB '000) | 2024年 (RMB '000) | | :--- | :--- | :--- | | Accounts payable to brokerage clients | 9,426 | 10,972 | | Borrowings from a financial institution | 31,375 | 27,293 | | Financial assets sold under repurchase agreements | 37,462 | 45,381 | | Finance costs on lease liabilities | 2,033 | 2,940 | | Debt instruments | 108,411 | 104,817 | | Short-term borrowings from direct holding company | 713 | – | | Amounts payable to related companies | 773 | – | | Other investors in consolidated asset management plans | (255) | 7,082 | | Compensation payable | 5,300 | – | | **Total** | **195,238** | **198,485** | [Staff Costs](index=59&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements-Staff%20Costs) For H1 2025, staff costs significantly increased to **RMB 604,588 thousand**, mainly due to higher short-term benefits and contributions to defined contribution plans Staff Costs Details (For the six months ended June 30, 2025) | 項目 | 2025年 (RMB '000) | 2024年 (RMB '000) | | :--- | :--- | :--- | | Short-term benefits | 540,362 | 320,339 | | Termination benefits | 3,356 | 2,545 | | Defined contribution plans | 60,870 | 39,279 | | **Total** | **604,588** | **362,163** | - The Group is required to participate in pension schemes in Chinese jurisdictions and has established an annuity plan, making contributions at a certain percentage of employee salaries[165](index=165&type=chunk) [Depreciation and Amortization](index=60&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements-Depreciation%20and%20Amortization) For H1 2025, total depreciation and amortization decreased to **RMB 92,141 thousand**, including property and equipment, right-of-use assets, and intangible assets Depreciation and Amortization Details (For the six months ended June 30, 2025) | 項目 | 2025年 (RMB '000) | 2024年 (RMB '000) | | :--- | :--- | :--- | | Depreciation: Property and equipment | 18,077 | 22,563 | | Depreciation: Investment properties | 1,088 | 1,076 | | Depreciation: Right-of-use assets | 35,588 | 41,840 | | Amortization: Intangible assets | 31,405 | 31,679 | | Amortization: Leasehold improvements, long-term prepaid expenses and other assets held for debt settlement | 5,983 | 6,571 | | **Total** | **92,141** | **103,729** | [Other Operating Expenses](index=60&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements-Other%20Operating%20Expenses) For H1 2025, other operating expenses increased to **RMB 208,881 thousand**, primarily due to higher electronic equipment operating costs, postage and communication, and other daily expenses Other Operating Expenses Details (For the six months ended June 30, 2025) | 項目 | 2025年 (RMB '000) | 2024年 (RMB '000) | | :--- | :--- | :--- | | Business entertainment expenses | 6,457 | 6,854 | | Travel expenses | 6,256 | 6,371 | | Consulting fees | 11,951 | 9,960 | | Electronic equipment operating costs | 53,719 | 35,476 | | Office miscellaneous expenses | 531 | 802 | | Other commission expenses | 20,066 | 21,726 | | Labor service fees | 17,609 | 15,685 | | Postage and communication expenses | 10,652 | 5,415 | | Litigation compensation | 8,843 | 3,389 | | Short-term lease payments | 3,981 | 14,091 | | Securities investor protection fund | 8,214 | 4,854 | | Utilities and property management fees | 9,243 | 10,191 | | Others | 51,359 | 23,296 | | **Total** | **208,881** | **158,110** | [Asset Impairment Losses, Net](index=61&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements-Asset%20Impairment%20Losses%2C%20Net) For H1 2025, net asset impairment losses significantly increased to **RMB 106,746 thousand**, mainly due to substantial impairment losses on other current assets, with impairment reversals on financial instruments Asset Impairment Losses, Net Details (For the six months ended June 30, 2025) | 項目 | 2025年 (RMB '000) | 2024年 (RMB '000) | | :--- | :--- | :--- | | Financing | 3,598 | 3,755 | | Financial assets purchased under resale agreements | – | 34,890 | | Financial instruments measured at fair value through other comprehensive income | (105,753) | (483) | | Debt investments at amortized cost | – | (674) | | Other current assets | 208,901 | 4,921 | | **Total** | **106,746** | **42,409** | [Income Tax Expense](index=61&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements-Income%20Tax%20Expense) For H1 2025, income tax expense increased to **RMB 104,859 thousand**, comprising current and deferred tax, with China's corporate income tax at **25%** Income Tax Expense Details (For the six months ended June 30, 2025) | 項目 | 2025年 (RMB '000) | 2024年 (RMB '000) | | :--- | :--- | :--- | | Current tax | 70,786 | 1,564 | | Deferred tax | 34,073 | 54,540 | | **Total** | **104,859** | **56,104** | - Provision for China corporate income tax is calculated at the statutory rate of **25%**[170](index=170&type=chunk) [Earnings Per Share](index=62&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements-Earnings%20Per%20Share) For H1 2025, profit attributable to ordinary equity holders was **RMB 240,733 thousand**, with basic and diluted EPS significantly increasing to **RMB 0.0924**, and no potential dilutive ordinary shares Earnings Per Share Calculation (For the six months ended June 30, 2025) | 項目 | 2025年 (RMB '000) | 2024年 (RMB '000) | | :--- | :--- | :--- | | Profit for the period attributable to ordinary equity holders of the Company | 240,733 | 53,872 | | Weighted average number of ordinary shares in issue for basic earnings per share calculation ('000 shares) | 2,604,567 | 2,604,567 | | **Basic and diluted earnings per share** | **RMB 0.0924** | **RMB 0.0207** | - For the six months ended June 30, 2025 and 2024, the Company had no potential dilutive ordinary shares, thus diluted earnings per share were the same as basic earnings per share[172](index=172&type=chunk) [Property and Equipment](index=62&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements-Property%20and%20Equipment) For H1 2025, the Group purchased **RMB 8,990 thousand** in property and equipment and disposed of **RMB 22 thousand** - During the six months ended June 30, 2025, the Group purchased property and equipment amounting to approximately **RMB 8,990 thousand**[173](index=173&type=chunk) - Disposals of property and equipment amounted to approximately **RMB 22 thousand**[173](index=173&type=chunk) [Right-of-Use Assets](index=62&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements-Right-of-Use%20Assets) For H1 2025, the Group signed **9 new property lease contracts** (2-5 year terms), resulting in new right-of-use assets of **RMB 8,697 thousand** - During the six months ended June 30, 2025, the Group entered into **9 new property lease contracts** with lease terms ranging from two to five years[174](index=174&type=chunk) - New right-of-use assets amounted to **RMB 8,697 thousand**[174](index=174&type=chunk) [Other Non-current Assets](index=63&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements-Other%20Non-current%20Assets) As of June 30, 2025, total other non-current assets were **RMB 75,277 thousand**, primarily comprising leasehold improvements, long-term prepaid expenses, other assets held for debt settlement, and prepayments Other Non-current Assets Details (As of June 30, 2025) | 項目 | 2025年6月30日 (RMB '000) | 2024年12月31日 (RMB '000) | | :--- | :--- | :--- | | Leasehold improvements, long-term prepaid expenses and other assets held for debt settlement | 37,640 | 31,749 | |

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。 BANK OF CHONGQING CO., LTD.* 重慶銀行股份有限公司* （ 於 中 華 人 民 共 和 國 註 冊 成 立 的 股 份 有 限 公 司 ） （股份代號：1963） 截至2025年6月30日止六個月中期業績公告 重慶銀行股份有限公司*（「本行」）董事會（「董事會」）欣然公佈本行及所屬子公司截至2025 年6月30日止六個月之未經審計中期業績。本公告列載本行2025年中期報告全文，並符 合香港聯合交易所有限公司證券上市規則中有關中期業績初步公告附載資料之要求。 本行2025年中期報告將於2025年9月向本行H股股東提供，並可於其時在本行網站 (www.cqcbank.com)及香港聯合交易所有限公司網站(www.hkexnews.hk)閱覽。 發佈業績公告 本業績公告的中英文版本可在本行網站(www.cqcbank.com)及香港聯合交易所有限公司網 站(www.hkexnews. ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或 因依賴該等內容而引致的任何損失承擔任何責任。 Wuhan Youji Holdings Ltd. 武 漢 有 機 控 股 有 限 公 司 （ 於 開 曼 群 島 註 冊 成 立 的 有 限 公 司 ） （股 份 代 號：2881） 截至二零二五年六月三十日止六個月之中期業績公告 財務摘要 本集團截至二零二五年六月三十日止六個月的收入約為人民幣1,440.2百萬元， 較二零二四年同期減少約人民幣210.9百萬元或約12.8%。 本集團截至二零二五年六月三十日止六個月的毛利約為人民幣163.0百萬元， 較二零二四年同期減少約人民幣23.6百萬元或約12.7%。 本集團截至二零二五年六月三十日止六個月的淨利潤約為人民幣38.7百萬元， 較二零二四年同期減少約人民幣9.4百萬元或約19.4%。 截至二零二五年六月三十日止六個月，母公司普通股權益擁有人應佔每股基 本及攤薄盈利約為人民幣0.42元，較二零二四年同期減少約人民幣0.21元或 約33.3%。 業績 ...

[Financial Highlights](index=1&type=section&id=%E8%B4%A2%E5%8A%A1%E6%91%98%E8%A6%81) [Business Summary](index=1&type=section&id=%E4%B8%9A%E5%8A%A1%E6%91%98%E8%A6%81) Tianjin Tianbao Energy Co., Ltd. and its subsidiaries experienced a 6.6% year-on-year decrease in consolidated operating revenue in the first half of 2025, yet profit attributable to company shareholders surged by 453.3%, with basic and diluted earnings per share increasing by 451.8% 2025 First Half Key Financial Highlights | Indicator | 2025 First Half (RMB thousands) | 2024 First Half (RMB thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Consolidated Operating Revenue | 379,076 | 405,828 | -6.6% | | Profit Attributable to Equity Holders of the Company | 9,888 | 1,787 | +453.3% | | Basic and Diluted Earnings Per Share (cents) | 6.18 | 1.12 | +451.8% | [Condensed Consolidated Financial Statements](index=2&type=section&id=%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=%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%E7%BB%BC%E5%90%88%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the company's revenue decreased by 6.6% year-on-year to RMB 379,076 thousands, but operating profit and profit before tax both achieved significant growth through sales cost control and reduced finance costs, with total profit and comprehensive income for the period surging by 150.3% Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Key Data | Indicator | 2025 First Half (RMB thousands) | 2024 First Half (RMB thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 379,076 | 405,828 | -6.6% | | Cost of Sales | (346,788) | (378,928) | -8.5% | | Gross Profit | 32,288 | 26,900 | +20.0% | | Operating Profit | 21,916 | 15,430 | +42.0% | | Profit Before Tax | 15,705 | 7,119 | +120.6% | | Total Profit and Comprehensive Income for the Period | 12,450 | 4,974 | +150.3% | | Profit Attributable to Equity Holders of the Company | 9,888 | 1,787 | +453.3% | | Basic Earnings Per Share (cents) | 6.18 | 1.12 | +451.8% | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=%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 assets slightly decreased, but effective management led to a significant reduction in current liabilities, turning net current assets from negative to positive, with both net assets and total equity increasing, indicating an improved financial structure Condensed Consolidated Statement of Financial Position Key Data | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Non-current Assets | 717,875 | 739,183 | -2.9% | | Current Assets | 299,167 | 331,591 | -9.8% | | Current Liabilities | 272,932 | 334,767 | -18.5% | | Net Current Assets/(Liabilities) | 26,235 | (3,176) | From negative to positive | | Net Assets | 475,855 | 465,641 | +2.2% | | Total Equity | 475,855 | 465,641 | +2.2% | [Condensed Consolidated Statement of Changes in Equity](index=5&type=section&id=%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, the company's total equity increased from RMB 465,641 thousands at the beginning of the year to RMB 475,855 thousands, primarily due to profit for the period of RMB 12,450 thousands, of which RMB 9,888 thousands was attributable to equity holders of the company Condensed Consolidated Statement of Changes in Equity Key Data | Indicator | June 30, 2025 (RMB thousands) | January 1, 2025 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Total Equity Attributable to Equity Holders of the Company | 323,997 | 316,345 | +2.4% | | Non-controlling Interests | 151,858 | 149,296 | +1.7% | | Total Equity | 475,855 | 465,641 | +2.2% | | Profit for the Period (Total) | 12,450 | 4,974 (2024 corresponding period) | +150.3% | [Condensed Consolidated Statement of Cash Flows](index=6&type=section&id=%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) For the six months ended June 30, 2025, net cash from operating activities increased year-on-year, but cash outflow from investing activities significantly decreased, while cash outflow from financing activities substantially increased, leading to an expanded net decrease in cash and cash equivalents Condensed Consolidated Statement of Cash Flows Key Data | Indicator | 2025 First Half (RMB thousands) | 2024 First Half (RMB thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Net Cash from Operating Activities | 51,813 | 40,716 | +27.3% | | Net Cash Used in Investing Activities | (3,525) | (39,932) | -91.2% (outflow decreased) | | Net Cash Used in Financing Activities | (63,083) | (10,920) | +477.7% (outflow increased) | | Net Decrease in Cash and Cash Equivalents | (14,795) | (10,136) | +45.9% (decrease expanded) | | Cash and Cash Equivalents at June 30 | 113,909 | 134,171 | -15.1% | [Notes to the Condensed Consolidated Financial Statements](index=7&type=section&id=%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%99%84%E6%B3%A8) [1. Company and Group Information](index=7&type=section&id=1.%20%E5%85%AC%E5%8F%B8%E5%8F%8A%E9%9B%86%E5%9B%A2%E8%B5%84%E6%96%99) Tianjin Tianbao Energy Co., Ltd. is incorporated in China and listed on the Main Board of the Hong Kong Stock Exchange, primarily engaged in providing integrated energy solutions - The company is incorporated in China, listed on the Main Board of the Hong Kong Stock Exchange, and primarily engaged in providing integrated energy solutions[10](index=10&type=chunk)[11](index=11&type=chunk) [2. Basis of Preparation and 3. Accounting Policies](index=7&type=section&id=2.%20%E7%BC%96%E5%88%B6%E5%9F%BA%E5%87%86%E5%8F%8A3.%20%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96) The condensed consolidated financial statements are prepared in accordance with International Accounting Standard 34 Interim Financial Reporting and the Listing Rules of the Stock Exchange, using the historical cost basis, with accounting policies consistent with the prior year, and new amendments applied this period having no significant impact on financial performance - Financial statements adhere to International Accounting Standard 34 and the Listing Rules of the Stock Exchange, adopting the historical cost basis[12](index=12&type=chunk)[13](index=13&type=chunk) - Amendments to International Financial Reporting Standards (IAS 21 amendments) first applied this period have no significant impact on the Group's financial performance and position[14](index=14&type=chunk) [4. Revenue and Segment Reporting](index=8&type=section&id=4.%20%E6%94%B6%E7%9B%8A%E5%8F%8A%E5%88%86%E9%83%A8%E6%8A%A5%E5%91%8A) The Group's business is divided into four reportable segments: power distribution and sales, energy production and supply, photovoltaic power generation and sales, and others; total revenue for the first half of 2025 decreased by 6.6% year-on-year, mainly due to a decline in revenue from the energy production and supply segment, though photovoltaic power generation and sales revenue increased - The Group's business is categorized into four reportable segments: power distribution and sales, energy production and supply, photovoltaic power generation and sales, and others[15](index=15&type=chunk)[17](index=17&type=chunk) - The acquisition of **95% equity** in Yangzhou Qingchang Solar Technology Co., Ltd. was completed on February 29, 2024, adding a new photovoltaic power generation and sales business segment[16](index=16&type=chunk) Revenue from Contracts with Customers by Segment | Segment | 2025 First Half (RMB thousands) | 2024 First Half (RMB thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Power Distribution and Sales | 102,201 | 103,731 | -1.5% | | Energy Production and Supply | 258,581 | 280,736 | -7.9% | | Photovoltaic Power Generation and Sales | 4,415 | 4,260 | +3.6% | | Others | 13,879 | 17,101 | -18.8% | | **Total** | **379,076** | **405,828** | **-6.6%** | Adjusted EBITDA by Segment (Segment Profit) | Segment | 2025 First Half (RMB thousands) | 2024 First Half (RMB thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Power Distribution and Sales | 4,014 | 7,711 | -48.0% | | Energy Production and Supply | 46,282 | 36,187 | +27.9% | | Photovoltaic Power Generation and Sales | 4,063 | 3,531 | +15.1% | | Others | 3,984 | 5,865 | -32.1% | | **Total** | **58,343** | **53,294** | **+9.5%** | [5. Profit Before Tax](index=12&type=section&id=5.%20%E9%99%A4%E7%A8%8E%E5%89%8D%E6%BA%A2%E5%88%A9) Profit before tax for the first half of 2025 was RMB 15,705 thousands, a significant year-on-year increase of 120.6%, primarily benefiting from a substantial decrease in finance costs (26.2%) and reduced depreciation and amortization expenses Components of Profit Before Tax | Indicator | 2025 First Half (RMB thousands) | 2024 First Half (RMB thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Total Finance Costs | 6,341 | 8,595 | -26.2% | | Total Depreciation and Amortization | 25,391 | 25,939 | -2.1% | | Cost of Purchased Electricity | 92,398 | 98,354 | -6.1% | | Fuel Costs | 178,844 | 195,652 | -8.6% | [6. Income Tax Expense](index=12&type=section&id=6.%20%E6%89%80%E5%BE%97%E7%A8%8E%E8%B4%B9%E7%94%A8) Income tax expense for the first half of 2025 was RMB 3,255 thousands, a year-on-year increase of 51.7%, primarily due to a significant increase in profit for the period Income Tax Expense | Indicator | 2025 First Half (RMB thousands) | 2024 First Half (RMB thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Income Tax Expense | 3,255 | 2,145 | +51.7% | [7. Earnings Per Share](index=13&type=section&id=7.%20%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) Basic earnings per share for the first half of 2025 was RMB 6.18 cents, a significant year-on-year increase of 451.8%, identical to diluted earnings per share due to the absence of potential dilutive ordinary shares Earnings Per Share Data | Indicator | 2025 First Half (RMB thousands/cents) | 2024 First Half (RMB thousands/cents) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Profit Attributable to Equity Holders of the Company for the Period | 9,888 | 1,787 | +453.3% | | Basic Earnings Per Share (cents) | 6.18 | 1.12 | +451.8% | | Weighted Average Number of Ordinary Shares (thousands) | 159,921 | 159,921 | 0% | [8. Right-of-Use Assets and Property, Plant and Equipment](index=13&type=section&id=8.%20%E7%89%A9%E4%B8%9A%E4%BD%BF%E7%94%A8%E6%9D%83%E8%B5%84%E4%BA%A7%E5%8F%8A%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%AE%BE%E5%A4%87) In the first half of 2025, the Group's acquisition cost for plant, machinery, and construction in progress projects was RMB 5,677 thousands, a significant year-on-year decrease of 62.6% Acquisition Cost of Property, Plant and Equipment | Indicator | 2025 First Half (RMB thousands) | 2024 First Half (RMB thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Cost of Acquisition of Plant, Machinery and Construction in Progress Projects | 5,677 | 15,206 | -62.6% | - Right-of-use assets primarily refer to prepayments for land use rights in China[30](index=30&type=chunk) [9. Goodwill](index=14&type=section&id=9.%20%E5%95%86%E8%AA%89) As of June 30, 2025, the carrying amount of goodwill was RMB 1,614 thousands, with no impairment loss incurred, primarily allocated to Lingang Thermal Power and Yangzhou Qingchang, two cash-generating units within the energy production and supply segment Carrying Amount of Goodwill | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Carrying Amount of Goodwill | 1,614 | 1,614 | 0% | - Goodwill is primarily allocated to Lingang Thermal Power and Yangzhou Qingchang, two cash-generating units[32](index=32&type=chunk) [10. Trade Receivables](index=14&type=section&id=10.%20%E8%B4%B8%E6%98%93%E5%BA%94%E6%94%B6%E8%B4%A6%E6%AC%BE) As of June 30, 2025, total trade receivables amounted to RMB 116,455 thousands, a 7.8% decrease from the end of 2024, with the highest proportion aged within 3 months, and the Group grants customers a 90-day credit period Ageing Analysis of Trade Receivables | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 3 months | 115,176 | 123,649 | | 4 to 6 months | 942 | 1,365 | | 7 to 9 months | 337 | 789 | | 10 to 12 months | — | 506 | | Over 12 months | — | 45 | | **Total** | **116,455** | **126,354** | - The Group grants a **90-day** credit period to trade customers[33](index=33&type=chunk) [11. Other Receivables and Assets](index=15&type=section&id=11.%20%E5%85%B6%E4%BB%96%E5%BA%94%E6%94%B6%E6%AC%BE%E9%A1%B9%E5%8F%8A%E8%B5%84%E4%BA%A7) As of June 30, 2025, total other receivables and assets amounted to RMB 65,278 thousands, a 5.6% decrease from the end of 2024, primarily comprising price subsidies, value-added tax, and advances to suppliers Composition of Other Receivables and Assets | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Price Subsidies | 38,689 | 38,689 | | Value-added Tax and Other Recoverable Taxes | 3,935 | 2,106 | | Advances to Suppliers | 22,023 | 27,857 | | Others | 631 | 470 | | **Subtotal (Current)** | **65,278** | **69,122** | | Deposits with Third Parties (Non-current) | 1,612 | 1,612 | [12. Bank Balances and Cash](index=15&type=section&id=12.%20%E9%93%B6%E8%A1%8C%E7%BB%93%E4%BD%99%E5%8F%8A%E7%8E%B0%E9%87%91) As of June 30, 2025, bank balances and cash amounted to RMB 113,909 thousands, an 11.6% decrease from the end of 2024, primarily due to loan repayments Bank Balances and Cash | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Bank Cash | 113,909 | 128,795 | -11.6% | [13. Trade and Other Payables](index=15&type=section&id=13.%20%E8%B4%B8%E6%98%93%E5%BA%94%E4%BB%98%E8%B4%A6%E6%AC%BE%E5%8F%8A%E5%85%B6%E4%BB%96%E5%BA%94%E4%BB%98%E6%AC%BE%E9%A1%B9) As of June 30, 2025, total trade and other payables amounted to RMB 89,337 thousands, a 3.4% decrease from the end of 2024, with amounts payable to third-party trade being the largest component Composition of Trade and Other Payables | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Amounts Payable to Third-Party Trade | 55,227 | 56,923 | | Bills Payable | 20,000 | 20,000 | | Amounts Payable for Acquisition of Property, Plant and Equipment | 8,193 | 6,331 | | **Total** | **89,337** | **92,459** | - All trade and other payables are expected to be settled within one year[34](index=34&type=chunk) Ageing Analysis of Trade Payables and Bills Payable | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 3 months | 38,835 | 60,510 | | 4 to 6 months | 844 | 13,198 | | 7 to 12 months | 33,151 | 849 | | Over 12 months | 2,397 | 2,366 | | **Total** | **75,227** | **76,923** | [14. Loans and Borrowings](index=16&type=section&id=14.%20%E8%B4%B7%E6%AC%BE%E5%8F%8A%E5%80%9F%E6%AC%BE) As of June 30, 2025, total loans and borrowings amounted to RMB 375,782 thousands, a 13.5% decrease from the end of 2024, with bank loans constituting a larger proportion; some loans are secured or guaranteed, and there are restrictive covenants related to financial performance indicators Analysis of Loans and Borrowings Repayment Schedule | Type | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Bank Loans (Total) | 365,367 | 421,785 | | Other Borrowings (Total) | 10,415 | 12,500 | | **Total** | **375,782** | **434,285** | - As of June 30, 2025, secured bank loans are collateralized by **45%** of the total paid-up capital of Lingang Thermal Power, a non-wholly owned subsidiary[37](index=37&type=chunk) - Some bank loan agreements contain restrictive covenants related to financial performance indicators such as debt-to-asset ratio, liquidity ratio, and net profit, but no breaches occurred during the reporting period[39](index=39&type=chunk)[40](index=40&type=chunk) [15. Dividends](index=18&type=section&id=15.%20%E8%82%A1%E6%81%AF) In the first half of 2025, the company approved a final dividend of RMB 0.014 per ordinary share for the financial year ended December 31, 2024, totaling RMB 2,236 thousands Approved and Payable Dividends | Dividend Type | 2025 First Half (RMB thousands) | 2024 First Half (RMB thousands) | | :--- | :--- | :--- | | 2024 Final Dividend (RMB 0.014 per share) | 2,236 | — | [16. Fair Value Measurement of Financial Instruments](index=18&type=section&id=16.%20%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7%E7%9A%84%E5%85%AC%E5%B9%B3%E5%80%BC%E8%AE%A1%E9%87%8F) As of June 30, 2025, and December 31, 2024, there were no material differences between the carrying amounts and fair values of trade receivables, other receivables and assets, and trade and other payables - There are no material differences between the carrying amounts and fair values of trade receivables, other receivables and assets, and trade and other payables[42](index=42&type=chunk) [17. Commitments](index=18&type=section&id=17.%20%E6%89%BF%E6%8B%85) As of June 30, 2025, the Group's unfulfilled capital commitments for which no provision has been made in the interim financial report amounted to RMB 8,193 thousands, primarily for the acquisition of property, plant and equipment and construction in progress Capital Commitments | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Contracted Capital Expenditure for Acquisition of Property, Plant and Equipment and Construction in Progress | 8,193 | 6,331 | [18. Significant Related Party Transactions](index=19&type=section&id=18.%20%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E6%96%B9%E4%BA%A4%E6%98%93) The Group has multiple transactions with related parties, including prepayments for gas to related parties outside Tianbao Group, amounts receivable from Tianbao Group and its subsidiaries, sales and purchases of goods, provision and receipt of services, and receipt of guarantees Related Party Balances | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Prepayments for Gas to Related Parties Other Than Tianbao Group | 17,695 | 27,138 | | Amounts Receivable from Tianbao Group and its Subsidiaries | 1,492 | 1,717 | | Advances from Subsidiaries of Tianbao Group | 130 | 253 | Related Party Transaction Amounts | Transaction Type | 2025 First Half (RMB thousands) | 2024 First Half (RMB thousands) | | :--- | :--- | :--- | | Sales of Goods to Subsidiaries of Tianbao Group | 2,526 | 906 | | Purchases of Goods from Companies Controlled by the Same Ultimate Controlling Party of Non-wholly Owned Subsidiaries | 131,080 | 124,770 | | Guarantees Received from Equity Holders of Non-wholly Owned Subsidiaries | 49,000 | 49,000 | [19. Non-Adjusting Events After the Reporting Period](index=20&type=section&id=19.%20%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%90%8E%E7%9A%84%E9%9D%9E%E8%B0%83%E6%95%B4%E4%BA%8B%E4%BB%B6) No significant post-reporting period events have occurred for the Group since June 30, 2025 - No significant non-adjusting events occurred after the reporting period[50](index=50&type=chunk) [Business Review and Analysis](index=21&type=section&id=%E4%B8%9A%E5%8A%A1%E5%9B%9E%E9%A1%B5%E4%B8%8E%E5%88%86%E6%9E%90) [Business Review Summary for the First Half of 2025](index=21&type=section&id=2025%E5%B9%B4%E4%B8%8A%E5%8D%8A%E5%B9%B4%E4%B8%9A%E5%8A%A1%E5%9B%9E%E9%A1%B5%E6%A6%82%E8%A6%81) In the first half of 2025, China's economy showed stable and positive growth, but due to US-China trade policies and customs inspection and quarantine policies, the Group's grain and oil enterprise customers reduced production, leading to decreased energy demand; the Group actively responded by lowering procurement prices, exploring cost reduction and efficiency improvement potential, and expanding new energy businesses to address challenges - China's economy remained generally stable and showed positive growth, with **GDP increasing by 5.3%** year-on-year[51](index=51&type=chunk) - Due to US-China trade policies and customs inspection and quarantine policies, grain and oil enterprise customers reduced production, leading to decreased energy demand[51](index=51&type=chunk) - The Group actively responded by adopting strategies such as lowering natural gas procurement prices, exploring cost reduction and efficiency improvement potential, and expanding new energy businesses like contract energy management and photovoltaic power[51](index=51&type=chunk) [Key Initiatives Implemented by the Group in the First Half of 2025](index=21&type=section&id=2025%E5%B9%B4%E4%B8%8A%E5%8D%8A%E5%B9%B4%E6%9C%AC%E9%9B%86%E5%9B%A2%E9%87%8D%E7%82%B9%E5%B7%A5%E4%BD%9C%E5%AE%9E%E6%96%BD%E4%B8%BE%E6%8E%AA) In the first half of 2025, the Group successfully advanced contract energy management and green electricity businesses, expanded distributed photovoltaic projects, orderly commenced energy storage project construction, and steadily progressed equity acquisition projects to achieve business diversification and enhance profitability - Successfully won the bid for the second phase of the Tianjin Port Free Trade Zone Smart Street Light Contract Energy Management project[52](index=52&type=chunk) - Approximately **8 million kWh** of green electricity transactions were completed in the first half of the year, and green electricity transaction cooperation was established with new energy power plants outside the region[52](index=52&type=chunk) - The Lingang Thermal Power distributed photovoltaic project has been connected to the grid, the Tianbao Logistics warehouse photovoltaic project has entered the implementation phase, and the Huaxiang Auto Interior Customization factory photovoltaic project is about to commence construction[53](index=53&type=chunk) - The Tianjin Port Free Trade Zone Seaport Area Distribution Network **1.72 MWh** Phase II energy storage power station project has completed on-site installation and is planned to be operational within the year[54](index=54&type=chunk) - Continuously monitoring acquisition opportunities for multiple distributed photovoltaic projects, and preliminary acquisition intentions have been reached for some projects with investment value[55](index=55&type=chunk) [Operating Performance and Analysis](index=22&type=section&id=%E7%BB%8F%E8%90%A5%E4%B8%9A%E7%BB%A9%E5%8F%8A%E5%88%86%E6%9E%90) In the first half of 2025, the Group's sales of steam and electricity both decreased, but through cost control and new energy project development, gross profit and profit before tax achieved significant growth, with profit attributable to the parent company increasing substantially by 453.3% 2025 First Half Key Operating Data | Indicator | 2025 First Half | 2024 First Half | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Steam Sales | 75.7 tens of thousands of tons | 79.2 tens of thousands of tons | -4.4% | | Electricity Sales | 13,164.9 tens of millions of kWh | 13,945.7 tens of millions of kWh | -5.6% | | On-grid Electricity | 10,516.2 tens of millions of kWh | 11,817.8 tens of millions of kWh | -11.0% | [Operating Revenue](index=23&type=section&id=%E8%90%A5%E4%B8%9A%E6%94%B6%E5%85%A5) Consolidated operating revenue for the first half of 2025 decreased by 6.6% year-on-year to RMB 37,907.6 tens of thousands, primarily due to reduced energy demand from grain and oil enterprise customers caused by production cuts Operating Revenue by Segment | Segment | 2025 First Half (RMB tens of thousands) | 2024 First Half (RMB tens of thousands) | Year-on-Year Change | Primary Reason | | :--- | :--- | :--- | :--- | :--- | | Consolidated Operating Revenue | 37,907.6 | 40,582.8 | -6.6% | Reduced production by grain and oil enterprise customers | | Power Distribution and Sales | 10,220.1 | 10,373.1 | -1.5% | Normal business fluctuations | | Energy Production and Supply | 25,858.1 | 28,073.6 | -7.9% | Reduced production by grain and oil enterprise customers | | Photovoltaic Power Generation and Sales | 441.5 | 426.0 | +3.6% | New projects connected to the grid | | Others | 1,387.9 | 1,710.1 | -18.8% | Decrease in O&M and power engineering revenue | [Other Net Income](index=24&type=section&id=%E5%85%B6%E4%BB%96%E5%87%80%E6%94%B6%E5%85%A5) Other net income for the first half of 2025 decreased by 51.7% year-on-year to RMB 81.0 tens of thousands, primarily due to increased expenditure on purchased carbon emission allowances Other Net Income | Indicator | 2025 First Half (RMB tens of thousands) | 2024 First Half (RMB tens of thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Other Net Income | 81.0 | 167.8 | -51.7% | - The main reason is the increase in expenditure on purchased carbon emission allowances compared to the previous period[62](index=62&type=chunk) [Segment Costs](index=24&type=section&id=%E5%88%86%E9%83%A8%E6%88%90%E6%9C%AC) In the first half of 2025, segment costs generally decreased, with the energy production and supply segment's cost decreasing by 10.7% primarily due to falling coal prices, and the power distribution and sales segment's cost decreasing by 2.3% due to energy-saving renovations Segment Cost Performance | Segment | 2025 First Half (RMB tens of thousands) | 2024 First Half (RMB tens of thousands) | Year-on-Year Change | Primary Reason | | :--- | :--- | :--- | :--- | :--- | | Power Distribution and Sales | 9,838.9 | 10,068.9 | -2.3% | Energy-saving renovations | | Energy Production and Supply | 23,511.2 | 26,342.1 | -10.7% | Falling coal prices | | Photovoltaic Power Generation and Sales | 240.8 | 262.1 | -8.1% | Cost reduction and efficiency improvement | | Others | 1,087.9 | 1,219.7 | -10.8% | Decreased revenue | [Segment Gross Profit](index=25&type=section&id=%E5%88%86%E9%83%A8%E6%AF%9B%E5%88%A9) In the first half of 2025, gross profit for the power distribution and sales, energy production and supply, and photovoltaic power generation and sales segments all increased, with the energy production and supply segment showing the most significant growth of 35.5%, primarily due to falling coal prices and cost reduction and efficiency improvement Segment Gross Profit Performance | Segment | 2025 First Half (RMB tens of thousands) | 2024 First Half (RMB tens of thousands) | Year-on-Year Change | Primary Reason | | :--- | :--- | :--- | :--- | :--- | | Power Distribution and Sales | 381.2 | 304.2 | +25.3% | Energy-saving renovations | | Energy Production and Supply | 2,346.9 | 1,731.5 | +35.5% | Falling coal prices and cost reduction and efficiency improvement | | Photovoltaic Power Generation and Sales | 200.7 | 163.9 | +22.5% | Cost reduction and efficiency improvement | | Others | 300.0 | 490.4 | -38.8% | Decrease in O&M and power engineering revenue | [Segment EBITDA](index=26&type=section&id=%E5%88%86%E9%83%A8%E9%99%A4%E6%81%AF%E7%A8%8E%E6%8A%98%E6%BB%A9%E5%89%8D%E7%9B%88%E5%88%A9) Segment EBITDA for the first half of 2025 increased by 9.5% year-on-year to RMB 5,834.3 tens of thousands, primarily due to energy-saving renovations of boilers and heat exchange stations, and the implementation of new energy projects Segment EBITDA | Indicator | 2025 First Half (RMB tens of thousands) | 2024 First Half (RMB tens of thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Segment EBITDA | 5,834.3 | 5,329.4 | +9.5% | - The main reasons are energy-saving renovations of boilers and heat exchange stations, and the implementation of new energy projects[71](index=71&type=chunk) [Finance Costs](index=26&type=section&id=%E8%B4%A2%E5%8A%A1%E6%88%90%E6%9C%AC) Finance costs for the first half of 2025 decreased by 26.2% year-on-year to RMB 634.1 tens of thousands, primarily due to reduced interest expenses from loan repayments Finance Costs | Indicator | 2025 First Half (RMB tens of thousands) | 2024 First Half (RMB tens of thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Finance Costs | 634.1 | 859.5 | -26.2% | - The main reason is the decrease in interest expenses due to loan repayments[72](index=72&type=chunk) [Fuel Costs](index=26&type=section&id=%E7%87%83%E6%96%99%E6%88%90%E6%9C%AC) Fuel costs for the first half of 2025 decreased by 8.6% year-on-year to RMB 17,884.4 tens of thousands, primarily due to falling coal prices Fuel Costs | Indicator | 2025 First Half (RMB tens of thousands) | 2024 First Half (RMB tens of thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Fuel Costs | 17,884.4 | 19,565.2 | -8.6% | - The main reason is falling coal prices[73](index=73&type=chunk) [Profit Before Tax](index=26&type=section&id=%E9%99%A4%E7%A8%8E%E5%89%8D%E6%BA%A2%E5%88%A9) Profit before tax for the first half of 2025 significantly increased by 120.6% year-on-year to RMB 1,570.5 tens of thousands, primarily benefiting from energy-saving renovations and the implementation of new energy projects Profit Before Tax | Indicator | 2025 First Half (RMB tens of thousands) | 2024 First Half (RMB tens of thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Profit Before Tax | 1,570.5 | 711.9 | +120.6% | - Primarily due to energy-saving renovations of boilers and heat exchange stations, and the implementation of new energy projects[74](index=74&type=chunk) [Income Tax Expense](index=27&type=section&id=%E6%89%80%E5%BE%97%E7%A8%8E%E8%B4%B9%E7%94%A8) Income tax expense for the first half of 2025 increased by 51.7% year-on-year to RMB 325.5 tens of thousands, primarily due to increased net profit Income Tax Expense | Indicator | 2025 First Half (RMB tens of thousands) | 2024 First Half (RMB tens of thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Income Tax Expense | 325.5 | 214.5 | +51.7% | - The main reason is increased net profit[75](index=75&type=chunk) [Profit Attributable to the Parent Company for the Period](index=27&type=section&id=%E5%BD%92%E5%B1%9E%E4%BA%8E%E6%AF%8D%E5%85%AC%E5%8F%B8%E7%9A%84%E6%9C%9F%E5%86%85%E6%BA%A2%E5%88%A9) Profit attributable to the parent company for the first half of 2025 significantly increased by 453.3% year-on-year to RMB 988.8 tens of thousands, primarily benefiting from energy-saving renovations and the implementation of new energy projects Profit Attributable to the Parent Company for the Period | Indicator | 2025 First Half (RMB tens of thousands) | 2024 First Half (RMB tens of thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Profit Attributable to the Parent Company for the Period | 988.8 | 178.7 | +453.3% | - Primarily due to energy-saving renovations of boilers and heat exchange stations, and the implementation of new energy projects[76](index=76&type=chunk) [Financial Position](index=27&type=section&id=%E8%B4%A2%E5%8A%A1%E7%8A%B6%E5%86%B5) As of the end of June 2025, the Group's total assets and liabilities both decreased, but total equity attributable to ordinary shareholders increased by 2.4%, and the debt-to-equity ratio decreased by 12.3%, indicating an improved financial structure Assets, Liabilities and Equity | Indicator | June 30, 2025 (RMB tens of thousands) | December 31, 2024 (RMB tens of thousands) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 101,704.2 | 107,077.4 | -5.0% | | Total Liabilities | 54,118.7 | 60,513.3 | -10.6% | | Total Equity Attributable to Ordinary Shareholders | 32,399.7 | 31,634.5 | +2.4% | | Current Assets | 29,916.7 | 33,159.1 | -9.8% | | Current Liabilities | 27,293.2 | 33,476.7 | -18.5% | | Non-current Liabilities | 26,825.5 | 27,036.6 | -0.8% | Bank Balances and Cash | Indicator | June 30, 2025 (RMB tens of thousands) | December 31, 2024 (RMB tens of thousands) | Change | | :--- | :--- | :--- | :--- | | Bank Balances and Cash | 11,390.9 | 12,879.5 | -11.6% | - The decrease in bank balances and cash was primarily due to loan repayments[79](index=79&type=chunk) Debt-to-Equity Ratio | Indicator | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Debt-to-Equity Ratio | 1.14 | 1.30 | -12.3% | - The decrease in the debt-to-equity ratio was due to a reduction in liabilities from loan repayments[80](index=80&type=chunk) [Other Significant Matters](index=28&type=section&id=%E5%85%B6%E4%BB%96%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9) [1. Capital Expenditure and Capital Commitments](index=28&type=section&id=1.%20%E8%B5%84%E6%9C%AC%E6%94%AF%E5%87%BA%E5%8F%8A%E8%B5%84%E6%9C%AC%E6%89%BF%E6%8B%85) In the first half of 2025, the Group's total capital expenditure was approximately RMB 352.5 tens of thousands, primarily for photovoltaic projects and new energy heavy-duty truck integrated energy station projects; as of June 30, capital commitments provision amounted to RMB 819.3 tens of thousands Capital Expenditure for the First Half of 2025 | Project | Amount (RMB tens of thousands) | | :--- | :--- | | Huaxiang Auto Interior Customization Factory Distributed Photovoltaic Project | 152.0 | | New Energy Heavy-Duty Truck Integrated Energy Station Project | 134.5 | | Other Projects | 66.0 | | **Total** | **352.5** | Capital Commitments Provision | Indicator | June 30, 2025 (RMB tens of thousands) | | :--- | :--- | | Capital Commitments Provision | 819.3 | [2. Liquidity and Financial Resources](index=29&type=section&id=2.%20%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 held bank balances and cash of RMB 11,390.9 tens of thousands, with total loans and borrowings of RMB 37,578.2 tens of thousands, of which short-term borrowings accounted for 42.7% and long-term borrowings for 57.3%; the Group did not engage in financial instrument hedging or foreign currency investments Liquidity and Borrowing Structure | Indicator | Amount (RMB tens of thousands) | Percentage | | :--- | :--- | :--- | | Bank Balances and Cash | 11,390.9 | - | | Total Loans and Borrowings | 37,578.2 | - | | Short-term Borrowings | 16,046.6 | 42.7% | | Long-term Borrowings | 21,531.6 | 57.3% | | Secured or Guaranteed Loans and Borrowings | 20,328.2 | 54.1% | | Unsecured Borrowings | 17,250.0 | 45.9% | | Fixed-rate Loans and Borrowings | 21,906.6 | 58.3% | | Floating-rate Loans and Borrowings | 15,671.6 | 41.7% | - The Group has not entered into any financial instruments for hedging purposes, nor does it have any foreign currency investments[82](index=82&type=chunk) [3. Significant Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=29&type=section&id=3.%20%E6%9C%89%E5%85%B3%E9%99%84%E5%B1%9E%E5%85%AC%E5%8F%B8%E3%80%81%E8%81%94%E8%90%A5%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%90%88%E8%90%A5%E4%BC%81%E4%B8%9A%E7%9A%84%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B4%AD%E5%8F%8A%E5%87%BA%E5%94%AE) For the six months ended June 30, 2025, the Group had no significant acquisitions or disposals of subsidiaries, associates, or joint ventures - No significant acquisition or disposal activities occurred during the reporting period[83](index=83&type=chunk) [4. Significant Investments](index=29&type=section&id=4.%20%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B5%84) For the six months ended June 30, 2025, the Group had no significant investments - No significant investments occurred during the reporting period[84](index=84&type=chunk) [5. Contingent Liabilities](index=29&type=section&id=5.%20%E6%88%96%E6%9C%89%E8%B4%9F%E5%80%BA) As of June 30, 2025, the Group had no contingent liabilities - No contingent liabilities existed at the end of the reporting period[85](index=85&type=chunk) [6. Group Bank Borrowings and 7. Other Group Debts](index=29&type=section&id=6.%20%E6%9C%AC%E9%9B%86%E5%9B%A2%E9%93%B6%E8%A1%8C%E5%80%9F%E6%AC%BE%E5%8F%8A7.%20%E6%9C%AC%E9%9B%86%E5%9B%A2%E5%85%B6%E4%BB%96%E5%80%BA%E5%8A%A1) As of June 30, 2025, the Group's total loans and borrowings amounted to RMB 37,578.2 tens of thousands, comprising RMB 16,046.6 tens of thousands in short-term borrowings and RMB 21,531.6 tens of thousands in long-term borrowings, in addition to lease liabilities of approximately RMB 168.4 tens of thousands Group Bank Borrowings and Other Debts | Indicator | Amount (RMB tens of thousands) | | :--- | :--- | | Total Loans and Borrowings | 37,578.2 | | Short-term Borrowings | 16,046.6 | | Long-term Borrowings | 21,531.6 | | Lease Liabilities | 168.4 | [8. Group Asset Mortgages and Pledges](index=30&type=section&id=8.%20%E6%9C%AC%E9%9B%86%E5%9B%A2%E8%B5%84%E4%BA%A7%E6%8A%B5%E6%8A%BC%E5%8F%8A%E8%B4%A8%E6%8A%BC) As of June 30, 2025, the company pledged gas supply facilities, equipment, and related components valued at RMB 2,423.3 tens of thousands as collateral for finance leases, and used Lingang Thermal Power equity and Yangzhou Qingchang photovoltaic project assets and electricity receivables as pledges for bank loans - The company pledged gas supply facilities, equipment, and related components valued at **RMB 2,423.3 tens of thousands** as collateral for finance leases[88](index=88&type=chunk) - The company pledged Lingang Thermal Power equity as collateral for **RMB 1,265.0 tens of thousands** in bank loans[88](index=88&type=chunk) - Secured bank loans of **RMB 1,222.6 tens of thousands** are pledged against assets and related electricity receivables of the Yangzhou Qingchang Kaixiang Phase II **4.0 MW** rooftop distributed photovoltaic power generation project[88](index=88&type=chunk) [9. Capital Structure](index=30&type=section&id=9.%20%E8%B5%84%E6%9C%AC%E6%9E%B6%E6%9E%84) The company's H shares were listed on the Main Board of the Stock Exchange on April 27, 2018, and after the completion of the H-share "full circulation" scheme on July 29, 2020, the capital structure consists solely of H shares - The company's H shares were listed on the Main Board of the Stock Exchange on **April 27, 2018**[89](index=89&type=chunk) - After the completion of the H-share "full circulation" scheme on **July 29, 2020**, the capital structure consists solely of H shares[89](index=89&type=chunk) [10. Share Schemes](index=30&type=section&id=10.%20%E8%82%A1%E4%BB%BD%E8%AE%A1%E5%88%92) As of June 30, 2025, the company had not implemented any share schemes - No share schemes were implemented during the reporting period[90](index=90&type=chunk) [11. Foreign Exchange and Exchange Rate Risk](index=30&type=section&id=11.%20%E5%A4%96%E6%B1%87%E5%8F%8A%E6%B1%87%E7%8E%87%E9%A3%8E%E9%99%A9) The Group primarily operates in China, with transactions denominated and settled in RMB, and apart from a small amount of foreign currency bank deposits, there is no significant foreign exchange rate fluctuation risk, and no hedging arrangements have been made - The Group primarily operates in China, with transactions denominated and settled in RMB[91](index=91&type=chunk) - Except for bank deposits denominated in foreign currencies, there is no significant foreign exchange rate fluctuation risk[91](index=91&type=chunk) - No hedging arrangements were made during the reporting period[91](index=91&type=chunk) [Business Outlook for the Second Half of 2025](index=31&type=section&id=2025%E5%B9%B4%E4%B8%8B%E5%8D%8A%E5%B9%B4%E4%B8%9A%E5%8A%A1%E5%B1%95%E6%9C%9B) The Group plans to accelerate new business expansion in the second half of 2025, promote the implementation and revenue generation of distributed photovoltaic projects, strive for a 42.5% increase in full-year photovoltaic power generation installed capacity, further expand its green electricity trading share, and commence the "15th Five-Year Plan" strategic planning - Accelerate the progress of distributed photovoltaic power generation projects, expedite construction and operation, with a planned **42.5%** increase in full-year photovoltaic power generation installed capacity[92](index=92&type=chunk) - Continuously follow up on high-quality equity acquisition projects, conduct thorough project evaluations, and accelerate their implementation[92](index=92&type=chunk) - Strive to complete **6.5 million kWh** of green electricity transactions in the second half of the year, and establish green electricity trading cooperation for 2026 with regions such as Gansu and Xinjiang[93](index=93&type=chunk) - Commence work on the "15th Five-Year Plan" strategic planning to build a diversified, clean, and efficient energy supply system[94](index=94&type=chunk) [Human Resources and Training](index=31&type=section&id=%E4%BA%BA%E5%8A%9B%E8%B5%84%E6%BA%90%E5%8F%8A%E5%9F%B9%E8%AE%AD) As of June 30, 2025, the Group had 70 employees, with staff costs of approximately RMB 1,088.9 tens of thousands; the Group emphasizes employee training and development, providing continuous education and professional skills training, and maintaining good working relationships with employees Employee Headcount and Composition | Function | Headcount | Percentage of Total | | :--- | :--- | :--- | | Management, Administration and Finance | 24 | 34.3% | | Marketing | 7 | 10.0% | | Procurement | 5 | 7.1% | | Engineering and Technical | 34 | 48.6% | | **Total** | **70** | **100.0%** | Staff Costs | Indicator | 2025 First Half (RMB tens of thousands) | | :--- | :--- | | Staff Costs (including salaries, benefits and allowances) | 1,088.9 | - The Group participates in defined contribution retirement schemes managed and operated by local governments for its employees[97](index=97&type=chunk) - The Group emphasizes employee training and development, providing continuous education and professional skills training, with **36 training sessions** completed in the first half of the year[97](index=97&type=chunk)[98](index=98&type=chunk) - The Group maintains good working relationships with employees, who have joined trade unions[99](index=99&type=chunk) [Corporate Governance](index=33&type=section&id=%E4%BC%81%E4%B8%9A%E7%AE%A1%E6%B2%BB) The Board is committed to maintaining high standards of corporate governance and has complied with the Corporate Governance Code in Appendix C1 and the Model Code in Appendix C3 of the Listing Rules; during the reporting period, the controlling shareholder did not pledge shares, and the Group did not provide any discloseable loans or financial assistance to any entity; the Audit Committee has reviewed the interim results - The Board is committed to maintaining high standards of corporate governance and has complied with the Corporate Governance Code and the Model Code[100](index=100&type=chunk)[101](index=101&type=chunk) - During the reporting period, the controlling shareholder did not pledge any shares to secure the Group's debts[102](index=102&type=chunk) - During the reporting period, the Group did not provide any loans discloseable under Listing Rule 13.13, nor did it provide financial assistance or guarantees discloseable under Listing Rule 13.16 to any entity[104](index=104&type=chunk)[105](index=105&type=chunk) [Audit Committee](index=34&type=section&id=%E5%AE%A1%E6%A0%B8%E5%A7%94%E5%91%98%E4%BC%9A) The Audit Committee comprises 3 non-executive directors, the majority of whom are independent non-executive directors, responsible for reviewing and monitoring the Group's financial reporting, risk management, and internal control systems, and has reviewed this interim results announcement and financial statements - The Audit Committee comprises **3 non-executive directors**, the majority of whom are independent non-executive directors, including **1 independent non-executive director** with accounting expertise[106](index=106&type=chunk) - The Audit Committee has reviewed the Group's 2025 interim results announcement, interim report, and financial statements[106](index=106&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities or Redeemable Securities](index=34&type=section&id=%E8%B4%AD%E4%B9%B0%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%E4%B8%8A%E5%B8%82%E8%AF%81%E5%88%B8%E6%88%96%E5%8F%AF%E8%B5%8E%E5%9B%9E%E8%AF%81%E5%88%B8) For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed or redeemable securities, and no treasury shares were held - During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any listed or redeemable securities[107](index=107&type=chunk) - As of the end of the reporting period, the company held no treasury shares[107](index=107&type=chunk) [Interim Dividend](index=34&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board has not proposed any recommendation for the payment of an interim dividend for the six months ended June 30, 2025 - The Board has not recommended the payment of an interim dividend[108](index=108&type=chunk) [Publication of Interim Results and Definitions](index=35&type=section&id=%E5%88%8A%E7%99%BB%E4%B8%AD%E6%9C%9F%E4%B8%9A%E7%BB%A9%E5%8F%8A%E9%87%8A%E4%B9%89) [Publication of Interim Results and Interim Report](index=35&type=section&id=%E5%88%8A%E7%99%BB%E4%B8%AD%E6%9C%9F%E4%B8%9A%E7%BB%A9%E5%8F%8A%E4%B8%AD%E6%9C%9F%E6%8A%A5%E5%91%8A) This results announcement has been published on the Stock Exchange's "Disclosure of Interests" website and the company's website, and the interim report will be dispatched to shareholders and published on the company's and Stock Exchange's websites in due course - This results announcement has been published on the Stock Exchange's "Disclosure of Interests" website and the company's website[110](index=110&type=chunk) - The 2025 interim report will be dispatched to shareholders and published on the company's and Stock Exchange's websites in due course[110](index=110&type=chunk) [Definitions](index=35&type=section&id=%E9%87%8A%E4%B9%89) This section provides definitions for key terms and entities used in the report, including Articles of Association, Board, Company, Controlling Shareholder, Directors, Domestic Shares, Group, H Shares, Hong Kong, HKD, IFRS, Lingang Thermal Power, Listing Rules, Model Code, PRC, Reporting Period, RMB, Shares, Shareholders, Stock Exchange, Supervisors, Tianjin Free Trade Zone Investment Holding, Tianbao Holding, and Yangzhou Qingchang - Provides definitions for key terms and entities used in the report, ensuring clear understanding of the content[110](index=110&type=chunk)[111](index=111&type=chunk)[112](index=112&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部 份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 （於百慕達註冊成立之有限公司） （股份代號：00894） 中期業績 萬裕科技集團有限公司（「本公司」）董事會（「董事會」）欣然宣佈本公司及其附屬公 司（統稱「本集團」）截至2025年6月30日止六個月（「本期間」）之未經審核中期業績。 1 未經審核綜合損益表 | | | | 截至6月30日止六個月 | | --- | --- | --- | --- | | | | 2025年 | 2024年 | | | 附註 | 千港元 | 千港元 | | 收入 | 4, 5 | 816,637 | 815,977 | | 銷售成本 | | (679,380) | (682,938) | | 毛利 | | 137,257 | 133,039 | | 其他收入 | 6 | 8,481 | 3,842 | | 其他虧損淨額 | 7 | (11,203) | (49) | | 銷售及分銷費用 | | (24,152) | ( ...

[Financial Summary](index=1&type=section&id=Financial%20Summary) The company achieved a 2.6% revenue growth and significantly narrowed losses, with adjusted net loss improving by 78.2% for the period [Interim Results Highlights](index=1&type=section&id=Interim%20Results%20Highlights) For the six months ended June 30, 2025, the company's revenue increased by 2.6% year-on-year, with a significant narrowing of losses, including a 42.1% reduction in loss for the period, a 78.2% reduction in adjusted net loss (non-IFRS measure), and a 1 percentage point improvement in adjusted net loss margin Interim Results Highlights (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Revenue | 2,326,907 | 2,267,894 | Increase 2.6% | | Loss for the period | (52,021) | (89,801) | Narrowed 42.1% | | Loss for the period attributable to owners of the Company | (51,671) | (84,491) | Narrowed 38.8% | | Adjusted net loss (non-IFRS measure) | (5,759) | (26,448) | Narrowed 78.2% | | Adjusted net loss margin (non-IFRS measure) | (0.2%) | (1.2%) | Improved 1 percentage point | [Management Discussion and Analysis](index=3&type=section&id=Management%20Discussion%20and%20Analysis) Total revenue grew by 2.6% with significant loss reduction and gross margin improvement, driven by strategic optimization and a focus on omni-channel retail [Business Review](index=3&type=section&id=Business%20Review) Total revenue grew by 2.6% with significant loss reduction and gross margin improvement, driven by strategic optimization and a focus on omni-channel retail - Total revenue reached **RMB 2,326.9 million**, a **2.6% year-on-year increase**, primarily attributed to optimized urban layout, expanded smart pharmacy network, and improved supply chain services[4](index=4&type=chunk) - Net loss narrowed to **RMB 52.0 million**, and adjusted net loss narrowed to **RMB 5.8 million**; excluding net exchange losses, the loss would further narrow to RMB 1.7 million[5](index=5&type=chunk) - Gross margin improved to **35.0%**, a **1.9 percentage point increase** year-on-year, reflecting the effectiveness of refined operations and cost reduction initiatives[5](index=5&type=chunk) - The company focuses on an omni-channel instant retail business model, emphasizing a full lifecycle health management and full disease course management strategy, forming a "medical, testing, pharmacy, insurance" collaborative ecosystem[7](index=7&type=chunk) - Actively responding to national policies promoting health consumption, guiding new health consumption scenarios such as "Internet + e-prescription + online and offline"[6](index=6&type=chunk) [Quick Medicine Business](index=4&type=section&id=Quick%20Medicine%20Business) Quick medicine business showed steady growth, particularly in online direct sales, supported by enhanced supply chain and cold chain logistics - The quick medicine business maintained steady overall growth, strengthening urban smart central warehouses and cold chain home delivery logistics capabilities[8](index=8&type=chunk)[9](index=9&type=chunk) Quick Medicine Business Revenue Details (For the six months ended June 30) | Channel | 2025 (RMB million) | 2024 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Online Direct Sales | 1,688.5 | 1,612.7 | Increase 4.7% | | Business Distribution | 266.7 | 274.3 | Decrease 2.8% | | Offline Retail | 305.0 | 323.1 | Decrease 5.6% | | Other Businesses | 66.7 | 57.8 | Increase 15.4% | [Online Consultation](index=6&type=section&id=Online%20Consultation) Online consultation services are provided by over 800 doctors and 400 pharmacists, integrated with a smart inquiry system across the pharmacy network - The medical team includes over **800 doctors** and **400 medical pharmacists**, providing online consultation services combined with a smart inquiry system[14](index=14&type=chunk) [Chronic Disease and Health Management](index=6&type=section&id=Chronic%20Disease%20and%20Health%20Management) The company leverages AI and health data to provide chronic disease management and medication adherence services, partnering with medical institutions for patient care - Through AI systems, health profiles, and medical knowledge bases, the company provides health record management and DOT medication adherence services[15](index=15&type=chunk) - Actively collaborates with medical institutions and top-tier hospitals to explore patient and medical services, offering disease course management, remote consultation, and health management[15](index=15&type=chunk) [Public Welfare and Social Responsibility](index=6&type=section&id=Public%20Welfare%20and%20Social%20Responsibility) The company actively fulfills social responsibility through initiatives like supporting children with leukemia and ensuring medication access during public holidays - Launched the "Big City, Small Love, Lighting the Medical Path" initiative to care for children with leukemia and their families[17](index=17&type=chunk) - Continuously conducted the "Open During Spring Festival" activity for **9 consecutive years**, ensuring residents' health service needs for consultation and medication purchase are met during the Spring Festival[17](index=17&type=chunk) [Future Outlook](index=7&type=section&id=Future%20Outlook) The company plans to advance digital healthcare through online-offline integration, expand health management strategies, and develop smart central warehouses for integrated pharmaceutical retail - Will focus on digital healthcare, popularizing user habits and improving accessibility through online and offline integration, while enabling online medical insurance purchases[18](index=18&type=chunk) - Based on the omni-channel instant retail business model, will prioritize full lifecycle health management and full disease course management strategies, and actively promote smart central warehouse construction to integrate wholesale and retail pharmaceutical goods[18](index=18&type=chunk) - Will continue to consolidate service advantages in major cities like Beijing, Shanghai, and Shenzhen, continuously expanding scale and improving service density, and "strengthening product power and enhancing sales power"[18](index=18&type=chunk) [Revenue](index=8&type=section&id=Revenue) Revenue increased by 2.6% to RMB 2,326.9 million, primarily from pharmaceutical and healthcare business growth due to network expansion and product diversification Revenue (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Total Revenue | 2,326.9 | 2,267.9 | Increase 2.6% | | Pharmaceutical and Healthcare Business Revenue | 2,260.2 | 2,210.1 | Increase 2.3% | - Revenue growth primarily attributed to the expanded smart pharmacy network and diversified product categories[19](index=19&type=chunk) [Cost of Revenue](index=8&type=section&id=Cost%20of%20Revenue) Cost of revenue decreased by 0.3% to RMB 1,511.1 million, driven by enhanced operating efficiency and shifts in product sales mix Cost of Revenue (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Cost of Revenue | 1,511.1 | 1,516.2 | Decrease 0.3% | - The decrease in cost of revenue was primarily due to improved operating efficiency and changes in the product sales mix[20](index=20&type=chunk) [Gross Profit and Gross Margin](index=8&type=section&id=Gross%20Profit%20and%20Gross%20Margin) Gross profit increased to RMB 815.8 million, with gross margin rising to 35.0%, reflecting improved operating efficiency and product mix Gross Profit and Gross Margin (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Gross Profit | 815.8 | 751.7 | Increase 8.5% | | Gross Margin | 35.0% | 33.1% | Increase 1.9 percentage points | - The increase in gross margin was primarily due to improved operating efficiency and changes in the product sales mix[21](index=21&type=chunk) [Fulfillment Expenses](index=8&type=section&id=Fulfillment%20Expenses) Fulfillment expenses decreased by 0.6% to RMB 222.0 million, improving as a percentage of revenue due to enhanced system efficiency Fulfillment Expenses (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Fulfillment Expenses | 222.0 | 223.3 | Decrease 0.6% | | Fulfillment Expenses as % of Revenue | 9.5% | 9.8% | Decrease 0.3 percentage points | - The decrease in fulfillment expenses was primarily due to continuous optimization of the fulfillment system, which improved fulfillment efficiency[22](index=22&type=chunk) [Sales and Marketing Expenses](index=9&type=section&id=Sales%20and%20Marketing%20Expenses) Sales and marketing expenses increased by 8.2% to RMB 525.9 million, rising as a percentage of revenue due to expanded activities Sales and Marketing Expenses (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Sales and Marketing Expenses | 525.9 | 485.9 | Increase 8.2% | | Sales and Marketing Expenses as % of Revenue | 22.6% | 21.4% | Increase 1.2 percentage points | - This increase was primarily due to increased sales and marketing activities[23](index=23&type=chunk) [R&D Expenses](index=9&type=section&id=R%26D%20Expenses) R&D expenses increased by 2.5% to RMB 25.0 million, maintaining a stable 1.1% of revenue R&D Expenses (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | R&D Expenses | 25.0 | 24.4 | Increase 2.5% | | R&D Expenses as % of Revenue | 1.1% | 1.1% | Remained stable | [General and Administrative Expenses](index=9&type=section&id=General%20and%20Administrative%20Expenses) General and administrative expenses decreased by 19.3% to RMB 101.7 million, improving as a percentage of revenue due to reduced employee welfare costs General and Administrative Expenses (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | General and Administrative Expenses | 101.7 | 126.1 | Decrease 19.3% | | General and Administrative Expenses as % of Revenue | 4.4% | 5.6% | Decrease 1.2 percentage points | - The decrease in general and administrative expenses was primarily due to lower employee welfare expenses[25](index=25&type=chunk) [Other Gains and Losses, Net](index=9&type=section&id=Other%20Gains%20and%20Losses%2C%20Net) The company reported a net other loss of RMB 3.5 million, shifting from a gain, mainly due to increased exchange losses and reduced fair value gains Other Gains and Losses, Net (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Other Gains and Losses, Net | (3.5) | 6.7 | Shifted from gain to loss | | Reasons for Change | Increased net exchange losses and reduced fair value gains on financial assets | | | [Other Income](index=9&type=section&id=Other%20Income) Other income remained stable at RMB 24.3 million for the six months ended June 30, 2025 Other Income (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Other Income | 24.3 | 25.3 | Remained stable | [Finance Costs](index=10&type=section&id=Finance%20Costs) Finance costs increased by 25.0% to RMB 5.5 million for the six months ended June 30, 2025 Finance Costs (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Finance Costs | 5.5 | 4.4 | Increase 25.0% | [Income Tax Expense](index=10&type=section&id=Income%20Tax%20Expense) Income tax expense increased by 27.9% to RMB 7.8 million, primarily driven by higher taxable income Income Tax Expense (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Income Tax Expense | 7.8 | 6.1 | Increase 27.9% | - The increase in income tax expense was primarily due to an increase in taxable income[29](index=29&type=chunk) [Loss for the Period](index=10&type=section&id=Loss%20for%20the%20Period) Net loss for the period decreased by 42.1% to RMB 52.0 million Loss for the Period (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Loss for the Period | (52.0) | (89.8) | Decrease 42.1% | [Non-IFRS Measures: Adjusted Net Loss and Adjusted Net Loss Margin](index=10&type=section&id=Non-IFRS%20Measures%3A%20Adjusted%20Net%20Loss%20and%20Adjusted%20Net%20Loss%20Margin) Adjusted net loss and adjusted net loss margin are presented as supplementary metrics, with adjusted net loss significantly narrowing after non-cash adjustments - Adjusted net loss (non-IFRS measure) is derived from loss for the period by excluding certain reconciling items, such as share-based payment expenses, goodwill impairment, and amortization of other intangible assets[31](index=31&type=chunk) Reconciliation of Net Loss to Adjusted Net Loss (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net loss for the period | (52,021) | (89,801) | | Add: Share-based payments | 36,961 | 51,283 | | Add: Impairment loss recognized on goodwill | – | 1,104 | | Add: Amortization of other intangible assets arising from acquisitions (net of income tax effect) | 9,301 | 10,966 | | Adjusted net loss for the period (non-IFRS measure) | (5,759) | (26,448) | | Adjusted net loss margin (non-IFRS measure) | (0.2%) | (1.2%) | [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=12&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) Revenue grew and gross profit improved, while loss for the period and total comprehensive expenses significantly narrowed [Profit or Loss Statement](index=12&type=section&id=Profit%20or%20Loss%20Statement) Revenue grew and gross profit improved, while loss for the period and total comprehensive expenses significantly narrowed Summary of Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 2,326,907 | 2,267,894 | | Cost of revenue | (1,511,098) | (1,516,158) | | Gross profit | 815,809 | 751,736 | | Fulfillment expenses | (222,034) | (223,307) | | Sales and marketing expenses | (525,884) | (485,874) | | R&D expenses | (24,993) | (24,355) | | General and administrative expenses | (101,737) | (126,087) | | Other gains and losses, net | (3,515) | 6,654 | | Other income | 24,301 | 25,296 | | Finance costs | (5,516) | (4,351) | | Loss before income tax | (44,246) | (83,664) | | Income tax expense | (7,775) | (6,137) | | Loss for the period | (52,021) | (89,801) | | Total comprehensive expenses for the period | (41,675) | (128,546) | | Loss per share (RMB) | (0.04) | (0.06) | [Condensed Consolidated Statement of Financial Position](index=14&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) Total assets increased to RMB 2,892.8 million, with notable shifts in non-current and current assets, and a significant rise in total liabilities [Financial Position Statement](index=14&type=section&id=Financial%20Position%20Statement) Total assets increased to RMB 2,892.8 million, with notable shifts in non-current and current assets, and a significant rise in total liabilities Summary of Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | **Assets** | | | | Total Non-current Assets | 538,880 | 431,062 | | Total Current Assets | 2,353,949 | 2,201,613 | | Total Assets | 2,892,829 | 2,632,675 | | **Equity** | | | | Total Equity | 1,675,179 | 1,680,230 | | **Liabilities** | | | | Total Non-current Liabilities | 220,655 | 120,425 | | Total Current Liabilities | 996,995 | 832,020 | | Total Liabilities | 1,217,650 | 952,445 | - Right-of-use assets increased from **RMB 167.1 million** to **RMB 277.8 million**, and equity instruments at fair value through other comprehensive income increased from **RMB 60.0 million** to **RMB 70.3 million**[36](index=36&type=chunk) - Among current assets, financial assets at fair value through profit or loss increased from nil to **RMB 345.0 million**, time deposits increased from nil to **RMB 437.9 million**, while cash and cash equivalents decreased from **RMB 1,218.0 million** to **RMB 576.3 million**[36](index=36&type=chunk) - Non-current lease liabilities increased from **RMB 97.7 million** to **RMB 200.2 million**, and trade payables increased from **RMB 351.2 million** to **RMB 516.2 million**[37](index=37&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=16&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes explaining the basis of preparation, accounting policies, and specific line items within the condensed consolidated financial statements [General Information](index=16&type=section&id=General%20Information) The company, incorporated in the Cayman Islands and listed on HKEX, primarily operates in China's pharmaceutical and healthcare sector, with financials presented in RMB - The company was incorporated in the Cayman Islands, with its shares listed on the Main Board of The Stock Exchange of Hong Kong Limited since September 14, 2022[38](index=38&type=chunk) - Primarily engaged in providing pharmaceutical and healthcare businesses within China, and the condensed consolidated financial statements are presented in RMB[38](index=38&type=chunk)[39](index=39&type=chunk) [Basis of Preparation](index=16&type=section&id=Basis%20of%20Preparation) The condensed consolidated financial statements are prepared in accordance with IAS 34 and HKEX Listing Rules disclosure requirements - The condensed consolidated financial statements are prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[40](index=40&type=chunk) [Accounting Policies](index=16&type=section&id=Accounting%20Policies) Financial statements are prepared on a historical cost basis, with no significant impact from revised IFRS accounting standards during the interim period - The condensed consolidated financial statements have been prepared on a historical cost basis, except for certain financial instruments measured at fair value[41](index=41&type=chunk) - The application of amendments to International Financial Reporting Standards during this interim period had no significant impact on the Group's financial position and performance for the current and prior periods[43](index=43&type=chunk) [Segment Information](index=17&type=section&id=Segment%20Information) The Group operates as a single reportable segment, with all non-current assets and revenue originating from China and no significant customer concentration - The Group has only one reportable segment, with the chief operating decision-maker reviewing consolidated results[44](index=44&type=chunk) - All of the Group's non-current assets and revenue are located in China, and no revenue from transactions with a single external customer accounted for 10% or more of the Group's revenue[44](index=44&type=chunk) [Revenue (Note 5)](index=18&type=section&id=Revenue%20%28Note%205%29) Customer contract revenue primarily stems from pharmaceutical and healthcare businesses, with recognition mostly occurring at a point in time Breakdown of Revenue from Contracts with Customers (For the six months ended June 30) | Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Pharmaceutical and healthcare businesses | 2,260,218 | 2,210,057 | | Others* | 66,689 | 57,837 | | **Total Revenue from Contracts with Customers** | **2,326,907** | **2,267,894** | | Timing of revenue recognition: At a point in time | 2,260,218 | 2,210,057 | | Timing of revenue recognition: Over time | 66,689 | 57,837 | * Others refer to marketing services, market service fees and other income. [Loss Before Income Tax (Note 6)](index=19&type=section&id=Loss%20Before%20Income%20Tax%20%28Note%206%29) Loss before income tax accounts for various expenses including cost of inventories, employee benefits, depreciation, amortization, and auditor's remuneration Deductions for Loss Before Income Tax (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of inventories sold | 1,507,543 | 1,515,673 | | Impairment provision for inventories | 3,555 | 485 | | Total employee benefit expenses | 221,591 | 258,927 | | Depreciation of property and equipment | 7,475 | 7,739 | | Depreciation of right-of-use assets | 44,056 | 43,494 | | Amortization of other intangible assets | 15,095 | 18,541 | | Auditor's remuneration | 940 | 1,180 | [Other Gains and Losses, Net (Note 7)](index=20&type=section&id=Other%20Gains%20and%20Losses%2C%20Net%20%28Note%207%29) Net other gains and losses shifted to a loss, mainly due to increased exchange losses, asset disposal losses, and reduced fair value gains on financial assets Details of Other Gains and Losses, Net (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net exchange (losses) / gains | (4,086) | 3,008 | | Loss on disposal of property and equipment | (408) | (5) | | Fair value gains on financial assets at fair value through profit or loss | 1,982 | 4,502 | | Loss on early termination of leases | (1,271) | (706) | | Impairment loss recognized on goodwill | – | (1,104) | | Others | 268 | 959 | | **Total** | **(3,515)** | **6,654** | [Other Income (Note 8)](index=20&type=section&id=Other%20Income%20%28Note%208%29) Other income comprises bank interest, lease deposit interest, government grants, rental income, and dividends from equity instruments Details of Other Income (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Bank deposit interest income | 15,002 | 13,826 | | Lease deposit interest | 262 | 259 | | Government grants | 3,921 | 5,017 | | Rental income – fixed | 1,060 | 2,345 | | Dividends from equity instruments at fair value through other comprehensive income | 4,056 | 3,849 | | **Total** | **24,301** | **25,296** | [Finance Costs (Note 9)](index=21&type=section&id=Finance%20Costs%20%28Note%209%29) Finance costs increased during the reporting period - Finance costs increased from **RMB 4.4 million** in 2024 to **RMB 5.5 million** in 2025[28](index=28&type=chunk) [Impairment Losses under ECL Model (Note 10)](index=21&type=section&id=Impairment%20Losses%20under%20ECL%20Model%20%28Note%2010%29) Total impairment losses under the ECL model amounted to RMB 677 thousand, mainly from trade receivables, partially offset by other receivables reversals Impairment Losses under ECL Model (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade receivables | 1,107 | 2,542 | | Other receivables | (430) | (343) | | **Total** | **677** | **2,199** | [Income Tax Expense (Note 11)](index=21&type=section&id=Income%20Tax%20Expense%20%28Note%2011%29) Income tax expense, totaling RMB 7,775 thousand, is composed of current and deferred income tax Income Tax Expense Details (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Current income tax – current period | 10,528 | 7,910 | | Current income tax – under-provision in prior periods | – | 390 | | Deferred income tax | (2,753) | (2,163) | | **Total** | **7,775** | **6,137** | [Earnings Per Share (Note 12)](index=22&type=section&id=Earnings%20Per%20Share%20%28Note%2012%29) Basic and diluted loss per share narrowed to RMB 0.04, with no difference due to the anti-dilutive effect of restricted share units Loss Per Share and Number of Shares (For the six months ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Loss for the period attributable to owners of the Company (RMB thousand) | (51,671) | (84,491) | | Weighted average number of ordinary shares | 1,299,372,897 | 1,322,658,246 | | Basic and diluted loss per share (RMB) | (0.04) | (0.06) | - For the six months ended June 30, 2025, potential ordinary shares were not included in the calculation of diluted loss per share as they had an anti-dilutive effect, thus diluted loss per share was the same as basic loss per share[63](index=63&type=chunk) [Trade and Other Receivables and Prepayments (Note 13)](index=23&type=section&id=Trade%20and%20Other%20Receivables%20and%20Prepayments%20%28Note%2013%29) Total trade and other receivables and prepayments were RMB 363.5 million, with overdue trade receivables not impaired due to expected settlement and stable credit quality Details of Trade and Other Receivables and Prepayments (As of June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Subtotal of Trade Receivables | 128,141 | 118,245 | | Subtotal of Other Receivables and Prepayments | 235,363 | 255,891 | | **Total** | **363,504** | **374,136** | | Lease deposits (non-current) | 17,099 | 15,495 | Ageing Analysis of Trade Receivables (As of June 30, 2025) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 3 months | 106,443 | 99,516 | | 3 to 6 months | 6,676 | 7,784 | | 6 to 12 months | 15,169 | 7,396 | | Over 12 months | 3,655 | 6,244 | | Less: Provision for expected credit losses | (3,802) | (2,695) | | **Total** | **128,141** | **118,245** | - As of June 30, 2025, the balance of trade receivables included gross amounts of **RMB 34.3 million** that were past due but not impaired, as the company is confident in subsequent settlements and customer credit quality has not deteriorated[65](index=65&type=chunk) [Trade and Other Payables (Note 14)](index=25&type=section&id=Trade%20and%20Other%20Payables%20%28Note%2014%29) Total trade and other payables significantly increased to RMB 845.9 million, with most trade payables due within three months Details of Trade and Other Payables (As of June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Subtotal of Trade Payables | 521,133 | 374,151 | | Subtotal of Other Payables | 324,765 | 335,375 | | **Total** | **845,898** | **709,526** | Ageing Analysis of Trade Payables (As of June 30, 2025) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 3 months | 473,838 | 307,142 | | 3 to 6 months | 27,251 | 33,299 | | 6 to 12 months | 8,368 | 13,531 | | Over 12 months | 11,676 | 20,179 | | **Total** | **521,133** | **374,151** | [Dividends (Note 15)](index=26&type=section&id=Dividends%20%28Note%2015%29) No dividends were paid or proposed to ordinary shareholders or non-controlling interests for the six months ended June 30, 2025 - For the six months ended June 30, 2025, the Company neither paid nor proposed any dividends to ordinary shareholders[68](index=68&type=chunk) - For the six months ended June 30, 2025, certain subsidiaries did not declare and pay dividends to non-controlling interests (RMB 8,949 thousand was paid in the corresponding period of 2024)[68](index=68&type=chunk) [Other Information](index=27&type=section&id=Other%20Information) This section covers liquidity, capital resources, commitments, investments, foreign exchange risk, contingent liabilities, employee information, and corporate governance matters [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) Cash and cash equivalents decreased to RMB 576.3 million, with increased operating cash flow offset by higher investing activities for financial assets and time deposits Cash Flow Summary (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net cash from operating activities | 188,171 | 75,009 | | Net cash (used in) / from investing activities | (778,922) | 32,245 | | Net cash used in financing activities | (46,826) | (62,620) | | Net (decrease) / increase in cash and cash equivalents | (637,577) | 44,634 | | Cash and cash equivalents at end of period | 576,274 | 1,233,580 | - Net cash from operating activities increased primarily due to a decrease in loss before income tax, as well as adjustments for non-cash and non-operating items and changes in working capital[71](index=71&type=chunk) - Net cash used in investing activities was mainly attributable to the purchase of financial assets at fair value through profit or loss of **RMB 830.0 million** and placement of time deposits of **RMB 432.2 million**, partially offset by the redemption of financial assets of **RMB 487.0 million**[72](index=72&type=chunk) - Net cash used in financing activities was primarily attributable to the repayment of lease liabilities of **RMB 41.3 million** and payment of interest of **RMB 5.5 million**[73](index=73&type=chunk) [Borrowings and Capital Liabilities](index=28&type=section&id=Borrowings%20and%20Capital%20Liabilities) The company had no bank borrowings as of June 30, 2025, thus no gearing ratio was presented - As of June 30, 2025, the company had no bank borrowings, and therefore, no gearing ratio was presented[74](index=74&type=chunk) [Capital Expenditure](index=28&type=section&id=Capital%20Expenditure) Capital expenditure totaled RMB 13.4 million, mainly for property, equipment, right-of-use assets, and other intangible assets Capital Expenditure (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | | Capital Expenditure | 13.4 | 13.8 | - Capital expenditure primarily included purchases of property and equipment, payments for right-of-use assets, and purchases of other intangible assets[75](index=75&type=chunk) [Capital Commitments](index=28&type=section&id=Capital%20Commitments) The company had no significant capital commitments as of June 30, 2025 - As of June 30, 2025, the company had no significant capital commitments[76](index=76&type=chunk) [Asset Pledges](index=29&type=section&id=Asset%20Pledges) The company had no significant asset pledges as of June 30, 2025 - As of June 30, 2025, the company had no significant asset pledges[77](index=77&type=chunk) [Major Investments Held](index=29&type=section&id=Major%20Investments%20Held) The company made or held no major investments for the six months ended June 30, 2025 - For the six months ended June 30, 2025, the company made or held no major investments[78](index=78&type=chunk) [Future Plans for Major Investments and Capital Assets](index=29&type=section&id=Future%20Plans%20for%20Major%20Investments%20and%20Capital%20Assets) The Group has no additional plans for major investments or capital assets beyond those disclosed in the prospectus - As of June 30, 2025, other than those disclosed in the "Future Plans and Use of Proceeds" section of the prospectus, the Group had no other plans for major investments and capital assets[79](index=79&type=chunk) [Significant Acquisitions and/or Disposals of Subsidiaries and Affiliates](index=29&type=section&id=Significant%20Acquisitions%20and%2For%20Disposals%20of%20Subsidiaries%20and%20Affiliates) The company had no significant acquisitions or disposals of subsidiaries and affiliates for the six months ended June 30, 2025 - For the six months ended June 30, 2025, the company had no significant acquisitions and/or disposals of subsidiaries and affiliates[80](index=80&type=chunk) [Foreign Exchange Risk](index=29&type=section&id=Foreign%20Exchange%20Risk) The Group's functional currency is RMB, with foreign exchange risk arising from non-RMB transactions, and no hedging contracts are in place - The functional currency of the Group's entities is RMB, and foreign exchange risk arises when future commercial transactions or recognized financial assets and liabilities are denominated in a currency other than the functional currency[81](index=81&type=chunk) - The company has not entered into any forward foreign exchange contracts to hedge its exposure to foreign exchange risk[81](index=81&type=chunk) [Contingent Liabilities](index=29&type=section&id=Contingent%20Liabilities) The company had no significant contingent liabilities as of June 30, 2025 - As of June 30, 2025, the company had no significant contingent liabilities[82](index=82&type=chunk) [Employees](index=30&type=section&id=Employees) The company employed 2,266 full-time staff in China, with total employee benefit expenses of RMB 221.6 million, focusing on competitive compensation and development - As of June 30, 2025, the company had **2,266 full-time employees**, primarily located in China[83](index=83&type=chunk) Employee Functional Distribution (As of June 30, 2025) | Employee Function | Number of Employees | | :--- | :--- | | Sales, Marketing and Business Development | 1,521 | | Technology and R&D | 312 | | Management | 258 | | Administration | 175 | | **Total** | **2,266** | - Total employee benefit expenses (including share-based payment expenses) amounted to **RMB 221.6 million**, a decrease from RMB 258.9 million in the corresponding period last year[88](index=88&type=chunk) [Use of Net Proceeds from Global Offering](index=31&type=section&id=Use%20of%20Net%20Proceeds%20from%20Global%20Offering) Net proceeds of HKD 341.6 million from the global offering were fully utilized by June 30, 2025, including funds for potential investments - The company raised net proceeds of approximately **HKD 341.6 million** from the global offering, which were fully utilized as of June 30, 2025[89](index=89&type=chunk)[90](index=90&type=chunk) Utilization of Net Proceeds from Global Offering (As of June 30, 2025) | Use | Percentage of Total Net Proceeds | Net Proceeds from Global Offering (HKD million) | Amount Utilized as of June 30, 2025 (HKD million) | | :--- | :--- | :--- | :--- | | Business Expansion | 45.0% | 153.7 | 153.7 | | Optimization of Technology Systems and Operating Platforms | 15.0% | 51.2 | 51.2 | | Enhancement of Services and Businesses | 10.0% | 34.2 | 34.2 | | Potential Investments and Acquisitions or Strategic Collaborations | 20.0% | 68.3 | 68.3 | | Working Capital and Other General Corporate Purposes | 10.0% | 34.2 | 34.2 | | **Total** | **100.0%** | **341.6** | **341.6** | - The remaining net proceeds of approximately **HKD 23.5 million** allocated for potential investments and acquisitions or strategic collaborations were fully utilized by June 30, 2025; the Directors believe the delay in utilization did not have a material adverse impact on the Group's business[90](index=90&type=chunk) [Corporate Governance](index=33&type=section&id=Corporate%20Governance) The company adheres to high corporate governance standards, complying with the Listing Rules' code, with the Chairman and CEO roles combined for strategic efficiency - The company has adopted the Corporate Governance Code set out in Appendix C1 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and complied with the code provisions during the reporting period[92](index=92&type=chunk) - The roles of Chairman and Chief Executive Officer are performed by Mr. Yang Wenlong; the Board believes this arrangement facilitates leadership consistency and efficient strategic planning, and independent non-executive directors adequately safeguard the overall interests of the company and its shareholders[93](index=93&type=chunk) [Standard Code for Securities Transactions by Directors](index=33&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The company adopted the Standard Code for directors' securities transactions, with all directors confirming compliance during the reporting period - The company has adopted the Standard Code as set out in Appendix C3 of the Listing Rules, and all Directors confirmed compliance with the required standards of the Standard Code during the reporting period[95](index=95&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=34&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities, and no treasury shares were held - For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's or its subsidiaries' listed securities[96](index=96&type=chunk) - As of June 30, 2025, the company held no treasury shares[96](index=96&type=chunk) [Changes in Directors' and Chief Executive's Information](index=34&type=section&id=Changes%20in%20Directors%27%20and%20Chief%20Executive%27s%20Information) Changes in directorships and committee memberships occurred, including resignations and new appointments for non-executive directors - Ms. Cai Li resigned as a non-executive director and a member of the remuneration committee, effective May 30, 2025[97](index=97&type=chunk) - Ms. Li Chuheng was appointed as a non-executive director and a member of the remuneration committee and nomination committee, effective May 30, 2025[97](index=97&type=chunk) - Mr. Jiang Shan, an independent non-executive director, was appointed as a member of the nomination committee, effective May 30, 2025[97](index=97&type=chunk) [Interim Dividend](index=34&type=section&id=Interim%20Dividend) The Board does not recommend an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[98](index=98&type=chunk) [Events After Reporting Period](index=34&type=section&id=Events%20After%20Reporting%20Period) No significant events occurred after the reporting period of June 30, 2025 - No significant events occurred after June 30, 2025[99](index=99&type=chunk) [Audit Committee](index=34&type=section&id=Audit%20Committee) The Audit Committee, composed of three independent non-executive directors, oversees financial reporting, internal controls, and risk management - The Audit Committee comprises three independent non-executive directors: Mr. Jiang Shan (Chairman), Mr. Zhang Shouchuan, and Dr. Fan Zhenhong[100](index=100&type=chunk) - The primary duties of the Audit Committee include reviewing and overseeing the Group's financial reporting process, internal control and risk management systems, and supervising the audit process[100](index=100&type=chunk) [Review of Accounts](index=35&type=section&id=Review%20of%20Accounts) The Audit Committee reviewed the unaudited condensed consolidated financial statements, which were also reviewed by Deloitte Touche Tohmatsu - The Audit Committee has reviewed the Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025, and discussed them with senior management and the auditor[101](index=101&type=chunk) - The condensed consolidated financial statements have been reviewed by Deloitte Touche Tohmatsu in accordance with International Standard on Review Engagements 2410[101](index=101&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=35&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) The interim results announcement and report are published on the HKEX and company websites, with printed copies available upon request - This interim results announcement has been published on the HKEX website (www.hkexnews.hk) and the company's website (www.ddjkjt.com)[102](index=102&type=chunk) - The Group's interim report for the six months ended June 30, 2025, will be published on the aforementioned websites and will be sent to shareholders who have indicated a wish to receive printed corporate communications, at the appropriate time[102](index=102&type=chunk)

香港交易及結算所有限公司和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 Disclaimer and Name's of Directors 10pt font size, 16pt leading 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。 （於百慕達註冊成立之有限公司） （股份代號：1205） 截至2025年6月30日止六個月的中期業績公告 中信資源控股有限公司（「本公司」）董事會（「董事會」）宣佈本公司和其附屬公司（統 稱「本集團」）截至2025年6月30日止六個月（「本期間」）的未經審核綜合中期業績。 財務摘要 | 截至6月30日止六個月 | 2025年 | 2024年 | 變動 | | --- | --- | --- | --- | | 未經審核 | 百萬港元 | 百萬港元 | | | 收入 | 9,382.3 | 3,944.6 | 137.9% | | EBITDA1 | 510.8 | 795.5 | (35.8%) | | 經調整EBITDA2 | 754.7 | 1,096.6 | (31.2%) ...

Company Announcements and Financial Summary This section provides an overview of the company's interim results and key financial highlights [Interim Results Announcement](index=1&type=section&id=Interim%20Results%20Announcement) Unaudited H1 2025 results show decreased revenue and expanded losses attributable to ordinary shareholders | Indicator | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 3,019,320 | 3,429,871 | -11.97% | | Operating Loss | (1,137,652) | (355,699) | Loss increased by 781,953 | | Loss Attributable to Ordinary Shareholders | (1,647,124) | (769,580) | Loss increased by 877,544 | | Core Operating Loss (after tax, excluding fair value changes) | (1,475,877) | (586,427) | Loss increased by 889,450 | | Fair Value Change Loss on Investment Properties (after tax) | (171,247) | (183,153) | Decreased by 11,906 | Interim Condensed Consolidated Financial Statements This section presents the company's interim condensed consolidated financial statements, including the statement of profit or loss, comprehensive income, and financial position [Interim Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) H1 2025 saw RMB 3.019 billion revenue, a gross loss, and expanded operating and period losses | Indicator | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 3,019,320 | 3,429,871 | | Cost of Sales | (3,327,281) | (2,941,989) | | Gross Loss / Profit | (307,961) | 487,882 | | Operating Loss | (1,137,652) | (355,699) | | Finance Costs – Net | (473,734) | (350,972) | | Loss Before Income Tax | (1,609,845) | (706,872) | | Loss for the Period | (1,765,459) | (880,432) | | Loss Attributable to Ordinary Shareholders of the Company | (1,647,124) | (769,580) | | Loss Per Share (Basic and Diluted) | (48.92) cents | (22.86) cents | [Interim Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, the company's total comprehensive loss for the period was RMB 1.765 billion, consistent with the loss for the period, with no other comprehensive income | Indicator | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Loss for the Period | (1,765,459) | (880,432) | | Other Comprehensive Income | – | – | | Total Comprehensive Loss for the Period | (1,765,459) | (880,432) | | Attributable to Ordinary Shareholders of the Company | (1,647,124) | (769,580) | [Interim Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) Total assets decreased by 5.73% to RMB 54.316 billion as of June 30, 2025, with ordinary shareholders' equity down 10.12% | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Total Assets | 54,315,622 | 57,619,449 | | Non-current Assets | 20,120,058 | 20,580,436 | | Current Assets | 34,195,564 | 37,039,013 | | Total Liabilities | 37,080,146 | 39,268,837 | | Non-current Liabilities | 20,499,763 | 23,017,509 | | Current Liabilities | 16,580,383 | 16,251,328 | | Net Assets | 17,235,476 | 18,350,612 | | Equity Attributable to Ordinary Shareholders of the Company | 14,636,281 | 16,283,405 | - Equity attributable to ordinary shareholders of the Company decreased by **10.12%** compared to December 31, 2024, primarily due to the loss incurred during the period[90](index=90&type=chunk) Notes to the Financial Statements This section provides detailed notes to the interim financial statements, covering accounting policies, segment information, operating loss, finance costs, and tax expenses [1. Summary of Significant Accounting Policies and Basis of Preparation](index=6&type=section&id=1.%20Summary%20of%20Significant%20Accounting%20Policies%20and%20Basis%20of%20Preparation) Interim financial information is prepared under HKAS 34, with accounting policies consistent with 2024 annual statements, and HKAS 21 amendments having no material impact - Interim financial information is prepared in accordance with **HKAS 34** and has been reviewed but not audited[10](index=10&type=chunk)[11](index=11&type=chunk) - The amendment to **HKAS 21 "Lack of Exchangeability"** became effective on January 1, 2025, and was first adopted, but it has no material impact on the Group's interim financial information[11](index=11&type=chunk)[12](index=12&type=chunk) [2. Segment Information](index=7&type=section&id=2.%20Segment%20Information) Segment information shows Convention, Exhibition (including Hotel) and Commercial Properties' profit slightly up, while Property Development's loss significantly widened - The Board assesses business based on product and service perspectives, with primary segments being **Convention, Exhibition (including Hotel) and Commercial Properties** and **Property Development**[13](index=13&type=chunk) - Segment results are evaluated based on adjusted loss before income tax, excluding fair value losses on investment properties, but including land appreciation tax and depreciation/impairment provisions for investment properties[13](index=13&type=chunk) [2.1 Segment Revenue](index=8&type=section&id=2.1%20Segment%20Revenue) Convention, Exhibition (including Hotel) and Commercial Properties revenue increased, while Property Development revenue decreased, leading to an overall group revenue decline | Segment | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Convention, Exhibition (including Hotel) and Commercial Properties | 1,476,714 | 1,248,098 | +18.32% | | Property Development | 1,461,344 | 2,079,049 | -29.71% | | Other Segments | 81,262 | 102,724 | -20.90% | | **Total Revenue** | **3,019,320** | **3,429,871** | **-11.97%** | | Revenue Type | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue recognized at a point in time | 1,681,085 | 2,478,389 | | Revenue recognized over time | 618,808 | 488,827 | [2.2 Segment Results](index=10&type=section&id=2.2%20Segment%20Results) Convention, Exhibition (including Hotel) and Commercial Properties' profit before tax slightly increased, while Property Development's loss significantly widened | Segment | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Convention, Exhibition (including Hotel) and Commercial Properties | 201,526 | 198,372 | +1.59% | | Property Development | (1,606,723) | (801,340) | Loss widened by 100.49% | | Other Segments | (26,631) | (34,567) | Loss narrowed by 22.96% | | **Reportable Segment Loss Before Income Tax** | **(1,431,828)** | **(637,535)** | **Loss widened by 124.59%** | [2.3 Segment Assets and Liabilities](index=11&type=section&id=2.3%20Segment%20Assets%20and%20Liabilities) Total segment assets were RMB 40.283 billion and liabilities RMB 21.535 billion as of June 30, 2025, with property development holding the largest asset share | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Total Segment Assets | 40,283,161 | 42,883,165 | | Total Segment Liabilities | 21,535,488 | 22,866,101 | | Contract Liabilities | 1,818,089 | 1,475,855 | | Additions to Non-current Assets | 13,181 | 103,727 | [2.4 Segment Reconciliation Items](index=12&type=section&id=2.4%20Segment%20Reconciliation%20Items) Revenue from opening contract liabilities decreased significantly, with reconciliation items including headquarters expenses, finance costs, and investment property fair value losses | Indicator | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue recognized from opening contract liabilities balance | 526,953 | 1,459,686 | -63.90% | | Revenue recognized by Property Development segment | 248,997 | 1,341,945 | -81.45% | | Reconciliation Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Reportable Segment Loss Before Income Tax | (1,431,828) | (637,535) | | Fair Value Loss on Investment Properties | (228,821) | (245,672) | | Reversal of Depreciation and Impairment Losses on Investment Properties | 146,930 | 203,401 | | Land Appreciation Tax | (25,559) | 78,128 | | **Loss Before Income Tax** | **(1,609,845)** | **(706,872)** | - All revenue from external customers is generated in **China**, with no significant revenue from specific external customers[30](index=30&type=chunk)[31](index=31&type=chunk) [3. Operating Loss](index=14&type=section&id=3.%20Operating%20Loss) Operating loss was primarily driven by a significant increase in impairment losses on properties under development and completed properties held for sale | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Fair value loss on investment properties expensed in profit or loss | (228,821) | (245,672) | Decreased by 7.06% | | Impairment losses on properties under development and completed properties held for sale | (1,077,353) | (478,572) | Increased by 125.13% | | Net impairment losses on financial assets | (60,932) | (133,539) | Decreased by 54.37% | | Government grants | 3,763 | 1,075 | Increased by 250.05% | | Investment income | 8,350 | 26,738 | Decreased by 68.86% | - Impairment losses on properties under development and completed properties held for sale are included in **cost of sales** in the interim condensed consolidated statement of profit or loss[33](index=33&type=chunk) [4. Finance Income and Costs](index=14&type=section&id=4.%20Finance%20Income%20and%20Costs) Net finance costs increased by 35.00% to RMB 474 million, primarily due to reduced capitalized interest | Indicator | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Interest expense | (532,611) | (626,436) | Decreased by 14.98% | | Less: Amount capitalized in properties under development | 43,320 | 206,150 | Decreased by 78.98% | | Finance costs | (489,291) | (420,286) | Increased by 16.42% | | Finance income – interest income | 19,974 | 72,307 | Decreased by 72.38% | | **Net Finance Costs** | **(473,734)** | **(350,972)** | **Increased by 35.00%** | [5. Income Tax Expense](index=15&type=section&id=5.%20Income%20Tax%20Expense) Income tax expense was RMB 156 million, slightly lower than prior year, with standard corporate and land appreciation taxes applicable | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | China Corporate Income Tax | 92,946 | 175,727 | | China Land Appreciation Tax | (25,559) | 78,128 | | Deferred Income Tax | 88,227 | (80,295) | | **Income Tax Expense** | **155,614** | **173,560** | - China Corporate Income Tax rate is **25%**, with certain high-tech enterprises (e.g., Shoudu Convention & Exhibition and North Star Times Convention & Exhibition) subject to a **15%** rate[36](index=36&type=chunk) - The company is subject to **Land Appreciation Tax** at progressive rates ranging from **30% to 60%**[36](index=36&type=chunk) [6. Loss Per Share](index=16&type=section&id=6.%20Loss%20Per%20Share) H1 2025 basic and diluted loss per share significantly widened to RMB 0.4892 from RMB 0.2286 in the prior year | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Loss Attributable to Ordinary Shareholders of the Company (RMB thousands) | (1,647,124) | (769,580) | | Number of Ordinary Shares Issued (thousands of shares) | 3,367,020 | 3,367,020 | | Loss Per Share (Basic and Diluted, RMB cents) | (48.92) | (22.86) | - The company had no potential dilutive ordinary shares for the six months ended June 30, 2025, thus diluted loss per share is equal to basic loss per share[39](index=39&type=chunk) [7. Dividends](index=17&type=section&id=7.%20Dividends) The Board resolved not to declare an interim dividend for the six months ended June 30, 2025, and no final dividend was declared for the year ended December 31, 2024 - The Board resolved **not to declare an interim dividend** for the six months ended June 30, 2025[42](index=42&type=chunk) - The annual general meeting in May 2025 resolved **not to declare a final dividend** for the year ended December 31, 2024[42](index=42&type=chunk) [8. Trade and Other Receivables and Prepayments](index=17&type=section&id=8.%20Trade%20and%20Other%20Receivables%20and%20Prepayments) Total trade receivables increased to RMB 343 million as of June 30, 2025, with a notable rise in older receivables | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | 0 to 30 days | 65,143 | 125,889 | | 31 to 90 days | 39,516 | 29,836 | | Over 90 days | 237,854 | 125,985 | | **Total Trade Receivables** | **342,513** | **281,710** | - The Group's majority of sales are conducted on a **cash or prepayment basis**, with the remaining amounts having credit terms of **30 to 90 days**[43](index=43&type=chunk) [9. Trade and Other Payables and Borrowings from Other Parties](index=18&type=section&id=9.%20Trade%20and%20Other%20Payables%20and%20Borrowings%20from%20Other%20Parties) Total trade payables decreased to RMB 4.103 billion as of June 30, 2025, with the largest portion being long-aged | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | 0 to 180 days | 803,263 | 1,499,404 | | 181 to 365 days | 515,678 | 578,138 | | Over 365 days | 2,784,375 | 2,587,259 | | **Total Trade Payables** | **4,103,316** | **4,664,801** | [Reconciliation of Differences between PRC GAAP and HKFRS](index=19&type=section&id=Reconciliation%20of%20Differences%20between%20PRC%20GAAP%20and%20HKFRS) Reconciliation of PRC GAAP and HKFRS financial data highlights differences in investment property depreciation reversal and fair value adjustments | Item | H1 2025 Loss Attributable to Owners (RMB thousands) | H1 2024 Loss Attributable to Owners (RMB thousands) | June 30, 2025 Equity Attributable to Owners (RMB thousands) | December 31, 2024 Equity Attributable to Owners (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | | Under PRC GAAP | (1,585,414) | (738,317) | 8,113,729 | 9,699,143 | | Reversal of investment property depreciation and impairment under PRC GAAP | 109,537 | 151,890 | 2,995,689 | 2,886,152 | | Fair value adjustment of investment properties under HKFRS | (171,247) | (183,153) | 3,526,863 | 3,698,110 | | **Under HKFRS** | **(1,647,124)** | **(769,580)** | **14,636,281** | **16,283,405** | Discussion of the Company's Industry and Principal Business Operations During the Reporting Period This section outlines the company's business segments and the broader industry trends impacting its operations during the reporting period [(I) Business Overview](index=20&type=section&id=%28I%29%20Business%20Overview) Core businesses include convention, exhibition (including hotel) and commercial properties, and property development, focusing on full industry chain and national expansion - The company's Convention, Exhibition (including Hotel) business, relying on Shoudu Convention & Exhibition, strengthens the expansion of new businesses and technologies in the MICE industry, actively promoting a **full industry chain layout** and becoming a professional operator for the CIFTIS[47](index=47&type=chunk) - Commercial property business, relying on Beijing North Star Commercial Management Co., Ltd., provides professional asset operation and property management services for various asset types, including **office buildings, apartments, and integrated commercial properties**[48](index=48&type=chunk) - Property development business has formed a **multi-regional, multi-level national development layout**, with projects distributed in 15 core cities including Beijing-Tianjin-Hebei, the Yangtze River Economic Belt, Chengdu-Chongqing urban cluster, Hainan Free Trade Port, and the Guangdong-Hong Kong-Macao Greater Bay Area[49](index=49&type=chunk) [(II) Industry Development](index=21&type=section&id=%28II%29%20Industry%20Development) H1 2025 saw China's GDP grow 5.3%, rapid MICE sector development, recovering hotel occupancy, and a stabilizing Beijing office market, with the property market repairing - China's GDP grew by **5.3%** in H1 2025, with the economy operating steadily and showing positive momentum overall[50](index=50&type=chunk) - The **MICE industry** developed rapidly, with expanding market scale, accelerated digital transformation, and significantly enhanced internationalization; hotel occupancy moderately recovered, but average room rates were under pressure[51](index=51&type=chunk) - The **property market** continued its repair trend, with increased policy support from central and local governments, but transaction volume slightly decreased in H1, with commercial residential sales area down **3.7%** YoY and sales value down **5.2%** YoY[52](index=52&type=chunk) Analysis of Core Competencies During the Reporting Period Core competencies include leading convention and exhibition brand influence, integrated property development, and low financing costs from its 'headquarters financing' model - The company leverages nearly **30 years of professional MICE operation and international service experience**, actively building a MICE ecosystem, and organizing major exhibitions such as CIFTIS and China Refrigeration Expo[54](index=54&type=chunk) - MICE venue management scale remains **number one nationwide**, having entered 33 cities and regions through self-owned and asset-light management output models[54](index=54&type=chunk) - The company possesses **integrated property development and operation capabilities**, covering multiple property types, and actively innovates development models, promoting the linkage of "MICE + Property" projects[54](index=54&type=chunk) - Utilizing the advantages of its **"headquarters financing" model**, the company has established strategic partnerships with multiple banks and financial institutions, maintaining relatively **low financing costs**, and actively exploring diversified financing channels such as medium-term notes, corporate bonds, and asset securitization[55](index=55&type=chunk) Discussion and Analysis of Operations This section provides a detailed review of the company's operating performance and strategic initiatives across its business segments [(I) Operating Review](index=23&type=section&id=%28I%29%20Operating%20Review) H1 2025 revenue decreased by 11.97% to RMB 3.019 billion, primarily due to lower property development settlement, leading to significantly expanded losses | Indicator | H1 2025 (RMB tens of thousands) | YoY Change | | :--- | :--- | :--- | | Operating Revenue | 301,932.0 | -11.97% | | Loss Before Tax | 160,984.5 | Loss increased by 90,297.3 | | Loss Attributable to Ordinary Shareholders | 164,712.4 | Loss increased by 87,754.4 | | Core Operating Loss from Principal Business (after tax, excluding fair value change loss) | 147,587.7 | Loss increased by 88,945.0 | | Fair Value Change Loss on Investment Properties (after tax) | 17,124.7 | - | | Loss Per Share | 0.4892 RMB | - | [1. Convention, Exhibition (including Hotel) and Commercial Properties](index=24&type=section&id=1.%20Convention%2C%20Exhibition%20%28including%20Hotel%29%20and%20Commercial%20Properties) This segment's revenue rose 18.32% to RMB 1.477 billion, with profit before tax up 1.59%, driven by successful events and expanded management | Indicator | H1 2025 (RMB tens of thousands) | YoY Change | | :--- | :--- | :--- | | Operating Revenue | 147,671.4 | +18.32% | | Profit Before Tax | 20,152.6 | +1.59% | - Successfully completed service support for major state and government events, including the **4th Ministerial Meeting of the China-Latin American Forum** and the **10th Annual Meeting of the Asian Infrastructure Investment Bank in 2025**[57](index=57&type=chunk) - Successfully hosted the **29th World Gas Conference** and the **2025 China Refrigeration Expo**, with the World Gas Conference exhibition area exceeding **50,000 square meters** and China Refrigeration Expo reaching **115,000 square meters**, both setting new historical highs[57](index=57&type=chunk) - Self-owned venues and hotels hosted **1,071 exhibitions and events**, a YoY increase of approximately **58.9%**; signed **3 new entrusted management projects** for venues and hotels, and **3 consulting projects**, with management output business now in **33 cities nationwide**[58](index=58&type=chunk) - The **National Convention Center Phase II** and **Shoudu International Convention & Exhibition Center** officially commenced operations, forming a world-class MICE complex and successfully undertaking multiple large-scale conferences and exhibitions[59](index=59&type=chunk) - Promoted the normalized operation of the **Asian Olympic Business District New Consumption Innovation Alliance**, organized "MICE Markets," and developed the "Asian Olympic Consumption Pass" to foster integrated development of "MICE, business, culture, tourism, and sports"[64](index=64&type=chunk) - Actively carried out investment promotion for the **Chaoyang Data Industrial Park**, successfully signing **14 industrial enterprises**, contributing to the construction of Beijing's International Science and Technology Innovation Center[66](index=66&type=chunk) | Project Name | Business Type | Building Area (square meters) | Rental Income (RMB tens of thousands) | | :--- | :--- | :--- | :--- | | National Convention Center | Conference, Exhibition | 270,800 | 20,011 | | Beijing International Convention Center | Conference, Exhibition | 58,000 | 4,039 | | North Star Times Tower | Office Building | 131,300 | 6,972 | | North Star Century Center | Office Building | 149,800 | 9,503 | | Beijing Wuzhou Hotel | Hotel | 42,000 | 5,233 | | North Star Huiyuan Hotel Apartment | Apartment | 184,300 | 12,518 | | Changsha North Star Delta Joy City | Commercial | 100,000 | 6,482 | [2. Property Development](index=33&type=section&id=2.%20Property%20Development) Property development revenue decreased by 29.71% to RMB 1.461 billion, with profit before tax loss widening, due to reduced settlement and lower gross margins | Indicator | H1 2025 | YoY Change | | :--- | :--- | :--- | | Operating Revenue (including parking spaces) | 146,134.4 RMB tens of thousands | -29.71% | | Loss Before Tax | 160,672.3 RMB tens of thousands | Loss increased by 80,538.3 RMB tens of thousands | | Contract Sales Value (including parking spaces) | 2.282 billion RMB | +4.03% | | Sales Area | 174,900 square meters | +15.34% | | Settlement Area | 137,400 square meters | -15.83% | | Settlement Value | 1.461 billion RMB | -29.71% | - The **North Star Hongxiang Villa project** achieved strong initial sales, with cumulative sales of **RMB 480 million**; the **Chongqing North Star Yuelai No. 1 project** achieved sales of **RMB 330 million**[69](index=69&type=chunk) - During the reporting period, the company achieved **1,093,900 square meters** of commenced and resumed construction area, **27,400 square meters** of completed area, and the **A2-1 building of Changsha North Star Delta project** was successfully topped out[69](index=69&type=chunk)[74](index=74&type=chunk) - The company's total land reserve is **3,696,900 square meters**, with equity land reserve of **3,445,800 square meters**, and no new property reserves added[71](index=71&type=chunk) - As of the end of the reporting period, the area pending settlement was **198,287 square meters**[77](index=77&type=chunk) [3. Digital Transformation](index=38&type=section&id=3.%20Digital%20Transformation) Digital transformation integrated marketing across segments and established an asset-operations-finance platform to enhance management efficiency - The company integrated digital marketing capabilities across its **convention, exhibition, commercial property, and property development** segments, forming a unified external digital marketing outlet to enhance resource utilization efficiency and market competitiveness[78](index=78&type=chunk) - Completed the construction of an **asset-operations-finance integrated digital platform**, promoting integrated management of asset management, business operations management, and financial management to improve resource allocation efficiency[78](index=78&type=chunk) [4. Financing Activities](index=39&type=section&id=4.%20Financing%20Activities) Total financing reached RMB 23.69 billion, with average financing cost reduced to 3.66%, ensuring stable operational funding | Indicator | Amount (RMB tens of thousands) | | :--- | :--- | | Total Financing at Period End | 2,368,745 | | Overall Average Financing Cost | 3.66% | | Capitalized Interest Amount | 4,332 | - The company strengthened capital planning, enhanced debt control, maintained a stable interest-bearing debt scale, and continuously optimized its debt structure to reduce funding costs[79](index=79&type=chunk) [(II) Company Development Strategy](index=39&type=section&id=%28II%29%20Company%20Development%20Strategy) Strategy focuses on synergistic development and innovation, advancing convention and exhibition, accelerating property transformation, and enhancing commercial property operations - The **Convention and Exhibition business segment** aims to build an international first-class, domestic leading MICE brand, strengthen the full industry chain layout, fully serve and guarantee state and government events, innovate and enhance the market-oriented operation of CIFTIS, and expand its hosting and organizing business[83](index=83&type=chunk) - The **Commercial Property business segment** aims to build a domestic leading brand in public building and industrial park asset operation and management, deeply promote the innovative development of the Asian Olympic Business District New Consumption Alliance, strengthen asset management, and accelerate the investment promotion and infrastructure construction of industrial parks[84](index=84&type=chunk) - The **Property Development business segment** will focus on the "one core, two wings" strategy, accelerate the disposal of existing projects, with an estimated sales area of **288,200 square meters** and contract sales of **RMB 3.228 billion** in H2, and promote deep synergy of "MICE + Property + Commercial Management"[85](index=85&type=chunk) - **Digital transformation** will actively cultivate new digital businesses, systematically promoting digital transformation around the MICE industry's upstream and downstream service ecosystem, the Asian Olympic urban consumption center business district ecosystem, and the company's various business types[86](index=86&type=chunk) - In terms of **financing and capital expenditure**, the company will strengthen capital planning, innovate financing methods, and enhance debt control, with an estimated fixed asset investment of **RMB 40 million** in H2[87](index=87&type=chunk) Risks the Company May Face This section identifies key risks, including market downturns in the property sector and challenges in talent acquisition and retention [1. Market Risk](index=41&type=section&id=1.%20Market%20Risk) Property market adjustment and subdued buyer confidence may lead to low sales volumes and prices, impacting cash collection efficiency - A sustained downturn in the property market may lead to continued low sales volumes and prices, directly impacting cash collection efficiency and posing risks to the company's operational stability[88](index=88&type=chunk) - The company will select cities and regions with **mature market development, favorable investment environments, and net population inflow**, and is committed to improving its cash collection ratio[88](index=88&type=chunk) [2. Talent Reserve Risk](index=41&type=section&id=2.%20Talent%20Reserve%20Risk) Business expansion increases demand for specialized and senior management talent, posing a significant talent shortage risk - The company faces a significant increase in demand for various talents, especially **specialized and senior management talent**, posing a risk of talent shortage[89](index=89&type=chunk) - The company actively builds a "grand talent" work framework, attracting and gathering talent through "excellent training programs," school-enterprise cooperation, and market-oriented recruitment, while strengthening the cultivation of young management talent[89](index=89&type=chunk) Discussion and Analysis of Financial Performance This section analyzes the company's financial resources and liquidity position, highlighting changes in equity and debt structure [Financial Resources and Liquidity Position](index=42&type=section&id=Financial%20Resources%20and%20Liquidity%20Position) Ordinary shareholders' equity decreased by 10.12% due to period losses, with total bank and other borrowings at RMB 13.361 billion and an asset-liability ratio of 68% - Equity attributable to ordinary shareholders of the Company decreased by **10.12%** compared to December 31, 2024, primarily due to the loss of **RMB 1.647 billion** incurred during the period[90](index=90&type=chunk) | Borrowing Type | Net Amount at Period End (RMB tens of thousands) | | :--- | :--- | | Bank and Other Borrowings (excluding bonds) | 1,336,060.2 | | Five-year Corporate Bonds | 225,571.3 | | Three-year Corporate Bonds | 32,445.5 | | Two-year Corporate Bonds | 87,289.6 | | Five-year Medium-Term Notes | 330,138.3 | | Three-year Medium-Term Notes | 71,382.8 | | Asset-Backed Special Plan Financing | 285,857.0 | | Indicator | June 30, 2025 (RMB tens of thousands) | | :--- | :--- | | Current Assets | 3,419,556.4 | | Current Liabilities | 1,658,038.3 | | Bank Deposits and Cash (excluding restricted bank deposits) | 623,737.7 | | Asset-Liability Ratio | 68% | - The Group's operations are all conducted within **Mainland China** and settled in **RMB**, with no significant foreign exchange fluctuation risk[92](index=92&type=chunk) - As of June 30, 2025, outstanding phased guarantees amounted to **RMB 4.074 billion**, which had no material impact on the financial position[92](index=92&type=chunk) Share Capital and Major Shareholder Holdings This section details the company's share capital structure, major shareholder information, and directors' interests [Share Capital](index=43&type=section&id=Share%20Capital) Total registered share capital was 3,367,020,000 shares as of June 30, 2025, including domestically listed A-shares and overseas listed H-shares | Share Class | Number of Shares | Percentage | | :--- | :--- | :--- | | Domestically Listed A-shares | 2,660,000,000 shares | 79.002% | | Overseas Listed H-shares | 707,020,000 shares | 20.998% | | **Total Registered Share Capital** | **3,367,020,000 shares** | **100%** | [Major Shareholder Holdings](index=43&type=section&id=Major%20Shareholder%20Holdings) Beijing North Star Industrial Group Co., Ltd. was the largest shareholder as of June 30, 2025, holding 35.02% of total share capital | Shareholder Name | Nature of Interest | Capacity | Share Class | Number of Shares Held | Percentage of Total Share Capital | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Beijing North Star Industrial Group Co., Ltd. | Corporate Interest | Beneficial Owner | A-shares | 1,179,122,931 shares | 35.02% | [Directors' Interests](index=43&type=section&id=Directors%27%20Interests) No directors, chief executives, or their associates held registrable interests or short positions in the company's or its associated corporations' securities as of June 30, 2025 - As of June 30, 2025, no directors, chief executives, or their respective associates held any registrable interests or short positions in any shares, underlying shares, or debentures of the company or its associated corporations[95](index=95&type=chunk) Corporate Governance This section outlines the company's commitment to high corporate governance standards, including compliance with codes and the role of the audit committee [Corporate Governance Code](index=43&type=section&id=Corporate%20Governance%20Code) The company fully complied with all code provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules, maintaining high governance standards - The company fully complied with all code provisions of the **Corporate Governance Code** as set out in Appendix C1 of the Listing Rules during the period[96](index=96&type=chunk) [Model Code for Securities Transactions by Directors](index=44&type=section&id=Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The company adopted the Model Code, confirming directors and former supervisors complied with its standards during the reporting period - The company has adopted the **Model Code**, and confirmed that its directors and former supervisors have complied with the required standards set out in the Model Code during the reporting period[97](index=97&type=chunk) [Audit Committee](index=44&type=section&id=Audit%20Committee) The Audit Committee, composed of three independent non-executive directors, reviews financial reporting and internal controls, and has reviewed the interim results - The Audit Committee is composed of three independent non-executive directors: **Dr. Zhou Yongjian, Mr. Gan Peizhong, and Ms. Qian Aimin**[98](index=98&type=chunk) - The Audit Committee and the Board have reviewed the Group's unaudited interim results for the six months ended June 30, 2025[98](index=98&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=44&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the reporting period - Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the period[99](index=99&type=chunk) [Entrusted Deposits and Matured Time Deposits](index=44&type=section&id=Entrusted%20Deposits%20and%20Matured%20Time%20Deposits) No entrusted deposits were held; all cash deposits were in Chinese commercial banks, with no issues retrieving matured bank deposits - The Group had no entrusted deposits placed with Chinese financial institutions, and all cash deposits were held in commercial banks in China[100](index=100&type=chunk) - The Group has not encountered any situations where bank deposits could not be retrieved after maturity[100](index=100&type=chunk) [Employees](index=44&type=section&id=Employees) The company had 5,039 employees as of June 30, 2025, with performance-based remuneration and regular training, but no share option schemes or bonuses - As of June 30, 2025, the company had **5,039 employees**[101](index=101&type=chunk) - The company reviews employee remuneration based on performance and profitability, with total employee wages linked to the company's economic benefits, and no share option schemes or bonuses are provided to employees[101](index=101&type=chunk) - The company regularly provides training to its operating managers in areas such as business management, foreign languages, computer skills, business knowledge, and policy regulations[101](index=101&type=chunk) [Staff Quarters](index=44&type=section&id=Staff%20Quarters) The company did not provide any staff quarters to its employees during the reporting period - The company did not provide any staff quarters to its employees during the period[102](index=102&type=chunk) Significant Events After the Reporting Period No significant events affecting the company occurred after June 30, 2025, as of the announcement date - No significant events affecting the company occurred after June 30, 2025, and up to the date of this announcement[103](index=103&type=chunk) Other Information This section provides details on the publication of the interim report, availability of documents for inspection, and the composition of the Board of Directors [Publication of Interim Report](index=45&type=section&id=Publication%20of%20Interim%20Report) The company's 2025 interim report will be published on the HKEX and company websites in due course - The company's 2025 interim report will be published on the HKEX website and the company's website in due course[104](index=104&type=chunk) [Documents Available for Inspection](index=45&type=section&id=Documents%20Available%20for%20Inspection) The original 2025 interim report, signed by the Chairman, will be available for inspection at the Board of Directors' Office - The original copy of the 2025 interim report, signed by the Chairman, will be available for inspection at the Board of Directors' Office[105](index=105&type=chunk) [Board Composition and Language Discrepancy](index=45&type=section&id=Board%20Composition%20and%20Language%20Discrepancy) The Board comprises eight directors, five executive and three independent non-executive, with the Chinese version prevailing in case of discrepancy - The company's Board of Directors consists of **eight directors**, including Mr. Zhang Jie, Ms. Liang Jie, Mr. Yang Huasen, Ms. Zhang Wenlei, and Mr. Wei Mingqian as executive directors, and Dr. Zhou Yongjian, Mr. Gan Peizhong, and Ms. Qian Aimin as independent non-executive directors[106](index=106&type=chunk) - In case of any discrepancy between the Chinese and English versions of this announcement, the **Chinese version shall prevail**[107](index=107&type=chunk)