中流擊水 奮勇前行 太平洋航運 2025 中期報告 股份代號：2343 #共邁遠途 業務 照片展示從智利的Paqueta Island輪的艦橋上看到的景觀 封面照片展示我們同事工作的模樣、Barrow Island輪在西班牙港口停泊、 以及太平洋航運貨船在紐西蘭裝載原木 封底照片展示我們的船員正在進行救生艇檢查以及我們的Cook Strait輪團隊 業務簡介 我們是乾散貨船船東及營運商，我們的航運業務本着以客戶及貨物為先的宗旨， 以現貨及長期貨運合約，為逾600名工業買家及乾散貨商品貿易商及生產商提 供安全、可靠及具競爭力的貨運服務。太平洋航運於香港上市並於全球營運， 在全球各主要地點設有當地辦事處以及在全球營運一支於世界各地進行貨運 的龐大船隊，為國際貨運客戶提供服務 406 名岸上員工分布於 14 個辦事處 4,300 名船員支援 我們 600+ 名行業客戶的需要 260+ 艘貨船 於2025年上半年完成1,100 次 航程 我們的船隊 我們營運全球最大型的現代化小靈便型及超靈便型乾散貨船船隊之一。我們 配備起重機的乾散貨船靈活通用及可自行裝卸貨物，並有90%以上的時間載 有貨物，主要是非化石燃料商品小宗 ...

[Company Information](index=3&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) This section provides detailed information about the company's basic registration, board members, key management, auditors, principal bankers, and registered and operational addresses [Board of Directors](index=3&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83) The Board of Directors comprises executive directors Ms. Huang Wei (Chairperson) and Mr. Dou Sheng, and independent non-executive directors Mr. Hu Zijing, Mr. Su Yiquan, and Ms. Zheng Hui, with Ms. Huang Wei also serving as Compliance Officer and Authorized Representative - The Board of Directors includes **2 executive directors** (Ms. Huang Wei as Chairperson) and **3 independent non-executive directors**[3](index=3&type=chunk) [Company Information (Continued)](index=3&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99%EF%BC%88%E7%BA%8C%EF%BC%89) The company is registered in the Cayman Islands, with its principal place of business in Hong Kong, and Union Securities Registrars Limited serves as the Hong Kong share registrar - The company is registered in the Cayman Islands, with Hong Kong as its principal place of business[4](index=4&type=chunk) - The company's stock code is **8179**[4](index=4&type=chunk) [Condensed Consolidated Financial Statements](index=5&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section presents the unaudited condensed consolidated statement of profit or loss and other comprehensive income, statement of financial position, statement of changes in equity, and statement of cash flows for the six months ended June 30, 2025, with comparative figures for 2024 [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=5&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the company experienced a significant decrease in revenue, leading to a substantial reduction in profit for the period and earnings per share Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Revenue | 64,368 | 218,804 | -70.58% | | Gross Profit | 8,573 | 48,338 | -82.28% | | Profit Before Tax | 1,397 | 39,135 | -96.43% | | Profit for the Period | 1,032 | 32,818 | -96.85% | | Basic and Diluted Earnings Per Share (HK cents) | 0.05 | 2.73 | -98.17% | [Condensed Consolidated Statement of Financial Position](index=7&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 company's net current assets slightly increased, and total equity remained stable, with inventory as the largest current asset and borrowings as the primary current liability Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Non-current Assets | 86 | 440 | -80.45% | | Current Assets | 581,866 | 579,730 | +0.37% | | Inventories | 571,071 | 561,570 | +1.69% | | Bank Balances and Cash | 2,613 | 7,298 | -64.20% | | Current Liabilities | 142,384 | 141,621 | +0.54% | | Borrowings | 116,894 | 116,894 | 0.00% | | Total Equity | 439,568 | 438,536 | +0.24% | [Condensed Consolidated Statement of Changes in Equity](index=9&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) For the six months ended June 30, 2025, equity attributable to owners slightly increased due to profit for the period, while the prior period saw a significant increase from profit, foreign currency translation reserve, and share issuance Condensed Consolidated Statement of Changes in Equity | Metric | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | Equity Attributable to Owners of the Company | 439,568 | 422,759 | | Profit for the Period | 1,032 | 32,818 | | Foreign Currency Translation Reserve | 0 | 150 | | Shares Issued under Subscription Agreement | 0 | 23,683 | [Condensed Consolidated Statement of Cash Flows](index=10&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For the six months ended June 30, 2025, both operating and investing activities resulted in cash outflows, leading to a significant decrease in cash and cash equivalents at period-end Condensed Consolidated Statement of Cash Flows | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (4,531) | (6,001) | +24.49% (decrease in outflow) | | Net Cash (Used in)/Generated from Investing Activities | (103) | 675 | -115.26% (from inflow to outflow) | | Net Cash (Used in)/Generated from Financing Activities | (51) | 5,417 | -100.94% (from inflow to outflow) | | Net (Decrease)/Increase in Cash and Cash Equivalents | (4,685) | 91 | -5248.35% (from increase to decrease) | | Cash and Cash Equivalents at End of Period | 2,613 | 3,459 | -24.46% | [Notes to the Condensed Consolidated Financial Statements](index=11&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) This section provides detailed notes to the condensed consolidated financial statements, covering general information, accounting policies, significant estimates, segment information, income and expense components, asset and liability details, and related party transactions [General Information](index=11&type=section&id=1.%20%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) The company was incorporated in the Cayman Islands in 2011 and listed on GEM in the same year, primarily engaged in investment holding, with subsidiaries focused on wine and food product sales and distribution - The company's principal business is investment holding, with subsidiaries engaged in the sale and distribution of **wine products and food products**[14](index=14&type=chunk) [Basis of Preparation](index=11&type=section&id=2.%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) The condensed consolidated financial statements are prepared in accordance with HKAS 34 and GEM Listing Rules, using the historical cost basis and presented in HKD, with no significant impact from new or revised HKFRSs applied this period - The financial statements are prepared on a historical cost basis and presented in **Hong Kong Dollars**[16](index=16&type=chunk) [Going Concern](index=12&type=section&id=%E6%8C%81%E7%BA%8C%E7%B6%93%E7%87%9F) As of June 30, 2025, the company reported net cash outflow from operating activities, low bank balances and cash, and overdue bank borrowings and interest payable, indicating significant going concern uncertainty, which management plans to mitigate through negotiation and cost control - As of June 30, 2025, net cash outflow from operating activities was **HKD 4,531 thousand**, and bank balances and cash were **HKD 2,613 thousand**[17](index=17&type=chunk) - Overdue bank borrowings of **HKD 90,000 thousand** and interest payable of **HKD 5,352 thousand** constitute a significant uncertainty to going concern[17](index=17&type=chunk) - The company plans to negotiate with banks for deferral of loan and rental repayments, and strengthen cost control to improve cash flow[18](index=18&type=chunk) [Critical Accounting Estimates and Judgements](index=13&type=section&id=3.%20%E9%87%8D%E8%A6%81%E4%BC%B0%E8%A8%88%E5%8F%8A%E5%88%A4%E6%96%B7) Management must make judgments, estimates, and assumptions affecting accounting policy application and the amounts of assets, liabilities, income, and expenses when preparing financial statements, with key uncertainties consistent with the 2024 annual report - Management makes significant judgments and estimates in preparing financial statements, and actual results may differ from these estimates[19](index=19&type=chunk) [Revenue and Segment Information](index=13&type=section&id=4.%20%E6%94%B6%E7%9B%8A%E5%8F%8A%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The company is divided into two reportable segments based on goods sold: wine business and food business, with wine business revenue significantly decreasing this period while food business revenue increased - The company's operating segments include **wine business** (sale and distribution of wine products and related by-products) and **food business** (sale and distribution of food and drinking water products)[22](index=22&type=chunk) [Segment Revenue and Results](index=13&type=section&id=%E5%88%86%E9%83%A8%E6%94%B6%E7%9B%8A%E5%8F%8A%E6%A5%AD%E7%B8%BE) For the six months ended June 30, 2025, wine business revenue significantly decreased, leading to a substantial drop in segment profit, while food business revenue and profit both increased Segment Revenue and Results | Segment | 2025 Revenue (HKD thousands) | 2024 Revenue (HKD thousands) | Revenue Change | 2025 Profit (HKD thousands) | 2024 Profit (HKD thousands) | Profit Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Wine Business | 63,853 | 218,761 | -70.81% | 8,440 | 45,237 | -81.36% | | Food Business | 515 | 43 | +1097.67% | 133 | 21 | +533.33% | | Total | 64,368 | 218,804 | -70.58% | 8,573 | 45,258 | -81.07% | [Segment Assets and Liabilities](index=14&type=section&id=%E5%88%86%E9%83%A8%E8%B3%87%E7%94%A2%E5%8F%8A%E8%B2%A0%E5%82%B5) As of June 30, 2025, wine business assets and liabilities remained stable, while the food business had a smaller scale of assets and liabilities Segment Assets and Liabilities | Segment | June 30, 2025 Assets (HKD thousands) | December 31, 2024 Assets (HKD thousands) | June 30, 2025 Liabilities (HKD thousands) | December 31, 2024 Liabilities (HKD thousands) | | :--- | :--- | :--- | :--- | :--- | | Wine Business | 581,158 | 579,366 | 118,234 | 117,901 | | Food Business | 19 | 384 | 33 | 3 | | Total | 581,952 | 580,170 | 142,384 | 141,634 | [Geographical Information](index=15&type=section&id=%E5%9C%B0%E5%8D%80%E8%B3%87%E6%96%99) The Group's operations are primarily located in Hong Kong and Australia, with external customer revenue from Hong Kong significantly decreasing and high customer concentration, while non-current assets are mainly in Hong Kong External Customer Revenue by Region | Region | 2025 External Customer Revenue (HKD thousands) | 2024 External Customer Revenue (HKD thousands) | Revenue Change | | :--- | :--- | :--- | :--- | | Hong Kong | 64,368 | 218,804 | -70.58% | - Approximately **HKD 39,677 thousand** (2024: HKD 128,606 thousand) of revenue was derived from **four major customers**[30](index=30&type=chunk) Non-current Assets by Region | Region | June 30, 2025 Non-current Assets (HKD thousands) | December 31, 2024 Non-current Assets (HKD thousands) | | :--- | :--- | :--- | | Hong Kong | 86 | 440 | | Australia | – | – | [Profit Before Tax](index=16&type=section&id=5.%20%E9%99%A4%E7%A8%85%E5%89%8D%E6%BA%A2%E5%88%A9) For the six months ended June 30, 2025, profit before tax significantly decreased, primarily due to reduced revenue and expenses recognized for inventory costs, while a gain on disposal of a subsidiary was recorded this period Profit Before Tax Components | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Gain on disposal of a subsidiary | 79 | – | N/A | | Employee benefit expenses | 2,081 | 1,847 | +12.67% | | Cost of inventories recognized as an expense | 55,795 | 170,466 | -67.27% | | Depreciation of right-of-use assets | 40 | 927 | -95.69% | [Finance Costs](index=17&type=section&id=6.%20%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) For the six months ended June 30, 2025, finance costs slightly decreased, primarily comprising interest on borrowings and interest on lease liabilities Finance Costs | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Interest on borrowings | 3,460 | 3,742 | -7.54% | | Interest on lease liabilities | 2 | 32 | -93.75% | | Total finance costs | 3,462 | 3,774 | -8.30% | [Income Tax Expense](index=17&type=section&id=7.%20%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) For the six months ended June 30, 2025, income tax expense significantly decreased, mainly due to a reduction in Hong Kong profits tax provision calculated under the two-tiered tax regime Income Tax Expense | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Provision for Hong Kong profits tax | 365 | 6,317 | -94.22% | - The company is **not subject to income tax** in the Cayman Islands and British Virgin Islands[39](index=39&type=chunk) [Earnings Per Share](index=17&type=section&id=8.%20%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) For the six months ended June 30, 2025, basic and diluted earnings per share significantly decreased, consistent with the trend of reduced profit for the period Earnings Per Share | Item | 2025 (HK cents) | 2024 (HK cents) | Change | | :--- | :--- | :--- | :--- | | Basic and diluted earnings per share | 0.05 | 2.73 | -98.17% | - Diluted earnings per share is the same as basic earnings per share as there were **no potential ordinary shares** in issue for both periods[42](index=42&type=chunk) [Dividends](index=18&type=section&id=9.%20%E8%82%A1%E6%81%AF) The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board of Directors does **not recommend** the payment of an interim dividend for 2025[43](index=43&type=chunk) [Inventories](index=18&type=section&id=10.%20%E5%AD%98%E8%B2%A8) As of June 30, 2025, the company's inventories, primarily bottled wine, slightly increased, with HKD 300 million of inventory pledged as collateral for bank loans Inventories | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Finished goods (bottled wine) | 571,071 | 561,570 | +1.69% | - **HKD 300,000 thousand** of inventories have been pledged as collateral for bank loans[44](index=44&type=chunk) [Biological Assets](index=19&type=section&id=11.%20%E7%94%9F%E7%89%A9%E8%B3%87%E7%94%A2) As of June 30, 2025, the company no longer held biological assets, primarily due to the disposal of biological assets (grapes) through the sale of a subsidiary in December 2024 Biological Assets | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | At beginning of period/year | – | 187 | | Disposal of a subsidiary | – | (197) | | At end of period/year | – | – | - Biological assets (grapes) were disposed of on **December 16, 2024**, through the sale of a subsidiary[48](index=48&type=chunk) [Trade Receivables, Prepayments, Deposits and Other Receivables](index=20&type=section&id=12.%20%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85%E3%80%81%E9%A0%90%E4%BB%98%E6%AC%BE%E9%A0%85%E3%80%81%E6%8C%89%E9%87%91%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of June 30, 2025, net trade receivables decreased, and the aging analysis shows all receivables are within 30 days Trade Receivables, Prepayments, Deposits and Other Receivables | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Net trade receivables | 7,725 | 10,270 | -24.88% | | Prepayments, deposits and other receivables | 224 | 352 | -36.36% | | Total | 7,949 | 10,622 | -25.16% | Aging Analysis of Trade Receivables | Aging | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Within 30 days | 7,725 | 3,579 | | 31 to 60 days | – | 5,922 | | Over 90 days | – | 769 | - Credit terms granted to customers primarily range from **30 to 120 days**[50](index=50&type=chunk) [Trade Payables, Other Payables, Accrued Charges and Deposits Received](index=21&type=section&id=13.%20%E8%B2%BF%E6%98%93%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85%E3%80%81%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85%E3%80%81%E6%87%89%E8%A8%88%E8%B2%BB%E7%94%A8%E5%8F%8A%E5%B7%B2%E6%94%B6%E6%8C%89%E9%87%91) As of June 30, 2025, trade payables significantly increased, while other payables, accrued charges, and deposits received decreased Trade Payables, Other Payables, Accrued Charges and Deposits Received | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Trade payables | 17,607 | 11,606 | +51.71% | | Other payables and accrued charges | 1,261 | 8,765 | -85.59% | | Interest payable | 5,983 | 3,175 | +88.46% | | Deposits received | 220 | 778 | -71.72% | | Total | 25,071 | 24,324 | +3.07% | Aging Analysis of Trade Payables | Aging | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Within 30 days | 17,607 | 215 | | 31 to 60 days | – | 6,503 | | Over 90 days | – | 4,738 | [Borrowings](index=22&type=section&id=14.%20%E5%80%9F%E8%B2%B8) As of June 30, 2025, total company borrowings remained at HKD 116.9 million, comprising HKD 90 million in secured and overdue bank loans and HKD 26.9 million in unsecured non-financial institution loans, all classified as current liabilities Borrowings | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Bank loans, secured | 90,000 | 90,000 | | Loans from non-financial institutions, unsecured | 26,894 | 26,894 | | Total borrowings | 116,894 | 116,894 | - Bank loans and corresponding interest payable (**HKD 5,352 thousand**) are **overdue**, secured by a floating charge over inventories and a corporate guarantee from the company[56](index=56&type=chunk) - The effective annual interest rate for borrowings ranges from **6.07% to 8.00%**[55](index=55&type=chunk) [Lease Liabilities](index=24&type=section&id=15.%20%E7%A7%9F%E8%B3%83%E8%B2%A0%E5%82%B5) As of June 30, 2025, lease liabilities significantly decreased and are entirely due within one year Lease Liabilities | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Lease liabilities payable | 54 | 416 | -87.02% | | Within one year | 54 | 403 | -86.59% | | After one year but within two years | – | 13 | -100% | - For the six months ended June 30, 2025, the weighted average incremental borrowing rate for lease liabilities was **2.50% per annum**[57](index=57&type=chunk) [Share Capital](index=25&type=section&id=16.%20%E8%82%A1%E6%9C%AC) As of June 30, 2025, the company's issued and fully paid share capital was HKD 190,780 thousand, comprising 1,907,798,274 shares, with new shares issued in 2024 through subscription agreements and rights issues Share Capital | Item | June 30, 2025 (HKD thousands) | January 1, 2024 (HKD thousands) | | :--- | :--- | :--- | | Issued and fully paid share capital | 190,780 | 119,624 | - On June 28, 2024, the company issued **236,832,000 ordinary shares**, with net proceeds used for general working capital and loan repayment[59](index=59&type=chunk) - On November 21, 2024, the company issued **474,729,773 rights shares** on a rights issue basis, raising approximately **HKD 47,482 thousand**[59](index=59&type=chunk) [Disposal of a Subsidiary](index=26&type=section&id=17.%20%E5%87%BA%E5%94%AE%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8) On May 30, 2025, the company disposed of its entire equity interest in the wholly-owned subsidiary Happy Profit Group for a total cash consideration of USD 1, recording a gain on disposal of HKD 79 thousand - On May 30, 2025, the company disposed of its entire equity interest in the wholly-owned subsidiary Happy Profit Group for a cash consideration of **USD 1**[60](index=60&type=chunk) Financial Impact of Disposal | Item | Amount (HKD thousands) | | :--- | :--- | | Net assets disposed of | 523 | | Gain on disposal | 79 | | Net cash outflow arising from disposal | (91) | [Related Party Transactions](index=27&type=section&id=18.%20%E9%97%9C%E9%80%A3%E6%96%B9%E4%BA%A4%E6%98%93) During the period, the company engaged in transactions with related parties, including rental expenses and key management personnel remuneration Related Party Transactions | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Rental expenses paid to a related company | 468 | 1,008 | -53.57% | | Key management personnel salaries and other benefits | 432 | 432 | 0.00% | | Key management personnel retirement benefit scheme contributions | 13 | 13 | 0.00% | - Rental expenses were paid to a related company owned by the spouse of Ms. Huang Wei, an executive director and substantial shareholder of the company[62](index=62&type=chunk) [Management Discussion and Analysis](index=28&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) This section provides a review of the company's interim results for the six months ended June 30, 2025, including business performance, financial position, future outlook, liquidity management, and other significant matters [Business Review](index=28&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) In mid-2025, the company's main businesses were the sale and distribution of wine products and related accessories, and food products, with wine business revenue significantly decreasing while food business revenue increased - The company's principal businesses include the **sale and distribution of wine products** and the **sale and distribution of food products**[65](index=65&type=chunk) [Wine Business](index=28&type=section&id=%E8%91%A1%E8%90%84%E9%85%92%E6%A5%AD%E5%8B%99) The wine business remains the largest revenue segment but experienced significant reductions in revenue and segment profit due to a sluggish market and weak customer demand, with declining gross profit margin, as the company actively expands local markets and sales channels Wine Business Performance | Metric | 2025 (HKD millions) | 2024 (HKD millions) | Change | | :--- | :--- | :--- | :--- | | Revenue | 63.9 | 218.8 | -70.80% | | Segment Profit | 8.4 | 45.2 | -81.42% | | Gross Profit Margin | 13.2% | 22.1% | -8.9 percentage points | - The company is actively expanding its local market, including participating in exhibitions, developing sales networks and agencies, and establishing new retail models[66](index=66&type=chunk) [Food Business](index=28&type=section&id=%E9%A3%9F%E5%93%81%E6%A5%AD%E5%8B%99) The food business achieved significant growth in both revenue and profit, and the company will continue to monitor the market and seek potential growth opportunities Food Business Performance | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Revenue | 515 | 43 | +1097.67% | | Profit | 133 | 21 | +533.33% | [Financial Review](index=29&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) In mid-2025, the company's revenue significantly decreased, with a corresponding reduction in cost of sales; employee benefit expenses increased due to higher salaries and activity costs; administrative expenses decreased due to reduced advertising and right-of-use asset depreciation; and finance costs also slightly decreased Financial Performance Summary | Item | 2025 (HKD millions) | 2024 (HKD millions) | Change | | :--- | :--- | :--- | :--- | | Revenue | 64.4 | 218.8 | -154.4 (HKD millions) | | Cost of sales | 55.8 | 170.5 | -67.3% | | Employee benefit expenses | 2.1 | 1.8 | +12.7% | | Administrative expenses | 1.8 | 3.8 | -51.8% | | Finance costs | 3.5 | 3.8 | -8.3% | [Outlook and Prospects](index=30&type=section&id=%E5%B1%95%E6%9C%9B%E5%8F%8A%E5%89%8D%E6%99%AF) Facing domestic and international economic uncertainties, the company will maintain a prudent operating strategy, strictly manage expenses, control inventories, and improve resource efficiency, while continuing to enhance brand awareness through exhibitions and actively seeking growth opportunities in the food market - The company will maintain a prudent operating strategy, strictly manage expenses, control inventories, and improve the efficiency of existing resources[70](index=70&type=chunk) - It will enhance product and brand awareness through participating in exhibitions and actively seek growth and expansion opportunities in the food market[70](index=70&type=chunk) [Liquidity, Financial and Capital Resources](index=30&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E3%80%81%E8%B2%A1%E5%8B%99%E5%8F%8A%E8%B3%87%E9%87%91%E8%B3%87%E6%BA%90) This section outlines the company's capital structure, cash position, borrowings, gearing ratio, exchange rate risk, capital expenditure, and asset pledges, with the capital structure comprising borrowings, lease liabilities, and equity attributable to owners [Capital Structure](index=30&type=section&id=%E8%B3%87%E6%9C%AC%E6%9E%B6%E6%A7%8B) The company manages capital to ensure sustainable operations and maximize shareholder returns, with its capital structure including borrowings, lease liabilities, and equity attributable to owners - The company's capital structure comprises **borrowings and lease liabilities** (net of bank balances and cash) and **equity attributable to owners of the company**[71](index=71&type=chunk) [Cash Position](index=30&type=section&id=%E7%8F%BE%E9%87%91%E7%8B%80%E6%B3%81) As of June 30, 2025, the company's bank balances and cash significantly decreased Bank Balances and Cash | Item | June 30, 2025 (HKD millions) | December 31, 2024 (HKD millions) | Change | | :--- | :--- | :--- | :--- | | Bank balances and cash | 2.6 | 7.3 | -64.38% | [Borrowings](index=31&type=section&id=%E5%80%9F%E8%B2%B8) As of June 30, 2025, the company's total borrowings remained at HKD 116.9 million, of which HKD 90 million was utilized bank facilities Borrowings | Item | June 30, 2025 (HKD millions) | December 31, 2024 (HKD millions) | | :--- | :--- | :--- | | Carrying amount of borrowings | 116.9 | 116.9 | | Bank facilities | 90.0 | 90.0 | [Gearing Ratio](index=31&type=section&id=%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E6%AF%94%E7%8E%87) As of June 30, 2025, the company's gearing ratio slightly increased Gearing Ratio | Item | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Gearing ratio | 26% | 25% | +1 percentage point | [Exchange Rate Risk](index=31&type=section&id=%E5%8C%AF%E5%85%8C%E9%A2%A8%E9%9A%AA) The company's operations are primarily denominated in HKD, with some assets and liabilities denominated in AUD; currently, exchange rate risk is not hedged but managed through close monitoring of foreign exchange fluctuations - The company's operations are primarily denominated in **HKD**, with some assets and liabilities denominated in **AUD**[75](index=75&type=chunk) - Exchange rate risk is currently **not hedged** but managed through close monitoring of foreign exchange fluctuations[76](index=76&type=chunk) [Capital Expenditure and Commitments](index=31&type=section&id=%E8%B3%87%E6%9C%AC%E9%96%8B%E6%94%AF%E5%8F%8A%E6%89%BF%E6%93%94) As of June 30, 2025, the company had no significant capital commitments - As of June 30, 2025, the company had **no significant capital commitments**[77](index=77&type=chunk) [Pledge of Assets](index=31&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, approximately HKD 90 million in utilized bank facilities were pledged by a corporate guarantee and a floating charge over inventories - Approximately **HKD 90 million** in utilized bank facilities are secured by a corporate guarantee and a floating charge over inventories[78](index=78&type=chunk) [Contingent Liabilities](index=31&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2025, the company had no other significant contingent liabilities - As of June 30, 2025, the company had **no other significant contingent liabilities**[79](index=79&type=chunk) [Dividends](index=32&type=section&id=%E8%82%A1%E6%81%AF) Dividend details are provided in Note 9 to the interim financial statements, and the Board of Directors does not recommend an interim dividend - Dividend details are set out in **Note 9** to the interim financial statements[80](index=80&type=chunk) [Number of Employees and Remuneration Policy](index=32&type=section&id=%E5%93%A1%E5%B7%A5%E4%BA%BA%E6%95%B8%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June 30, 2025, the company had approximately 15 employees, offering competitive remuneration and internal training to attract and retain talent Number of Employees | Item | June 30, 2025 | | :--- | :--- | | Number of employees | Approximately 15 | - The company offers competitive remuneration packages and internal training programs, with remuneration packages reviewed regularly[81](index=81&type=chunk) [Use of Proceeds from Share Placements](index=32&type=section&id=%E8%82%A1%E4%BB%BD%E9%85%8D%E5%94%AE%E6%89%80%E5%BE%97%E6%AC%BE%E9%A0%85%E7%94%A8%E9%80%94) This section details the initial intended use and actual utilization as of December 31, 2024, for proceeds from two share placements (rights issue and subscription agreement) in 2022 and 2024, primarily for loan repayment, business development, and working capital Use of Proceeds from Share Placements | Share Placement Date | Initial Allocation (HKD thousands) | Actual Use (HKD thousands) | Principal Use | | :--- | :--- | :--- | :--- | | July 5, 2022 Rights Issue | 25,900 | 25,900 | Loan repayment, business development, working capital | | June 28, 2024 Subscription | Approximately 23,600 | Used for loan repayment and general working capital | Loan repayment, general working capital | | November 21, 2024 Rights Issue | 47,482 | 47,482 | Loan repayment, working capital | [Material Investments Held, Material Acquisitions or Disposals of Subsidiaries and Affiliated Companies, and Plans for Material Investments or Capital Assets](index=33&type=section&id=%E6%89%80%E6%8C%81%E9%87%8D%E8%A6%81%E6%8A%95%E8%B3%87%E3%80%81%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E6%88%96%E5%87%BA%E5%94%AE%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8%E5%8F%8A%E8%81%AF%E5%B1%AC%E5%85%AC%E5%8F%B8%EF%BC%8C%E4%BB%A5%E5%8F%8A%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E6%88%96%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2%E8%A8%88%E5%8A%83) Apart from the disclosed disposal of a subsidiary, the Group held no material investments, made no material acquisitions or disposals of subsidiaries and affiliated companies, and had no plans for material investments or capital assets during mid-2025 - Apart from the disclosed disposal of a subsidiary, the Group had **no other material investments, acquisitions, or disposals** in mid-2025[83](index=83&type=chunk) [Events After Reporting Period](index=33&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) As of the report date, the Group had no significant events after June 30, 2025 - As of the report date, the Group had **no significant events** after June 30, 2025[84](index=84&type=chunk) [Other Information](index=34&type=section&id=%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) This section discloses share interests of directors and chief executives, substantial shareholders, and information on the company's compliance with the Model Code for Securities Transactions by Directors, corporate governance, and audit committee operations [Directors' and Chief Executives' Interests in Shares, Underlying Shares or Debentures of the Company and its Associated Corporations](index=34&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E4%B8%BB%E8%A6%81%E8%A1%8C%E6%94%BF%E4%BA%BA%E5%93%A1%E6%96%BC%E6%9C%AC%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%85%B6%E7%9B%B8%E9%97%9C%E6%B3%95%E5%9C%98%E7%9A%84%E8%82%A1%E4%BB%BD%E3%80%81%E7%9B%B8%E9%97%9C%E8%82%A1%20%E4%BB%BD%E6%88%96%E5%82%B5%E5%88%B8%E4%B8%AD%E7%9A%84%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) As of June 30, 2025, Executive Director Ms. Huang Wei held approximately 26.16% of the company's ordinary shares in long positions, with no other directors or chief executives holding share or related share interests Directors' Interests in Shares | Name of Director | Capacity/Nature of Interest | Total Number of Ordinary Shares Held | Approximate Percentage of Interest | | :--- | :--- | :--- | :--- | | Ms. Huang Wei | Beneficial Owner | 499,012,800 | 26.16% | [Substantial Shareholders' and Other Persons' Interests in Shares and Underlying Shares of the Company](index=35&type=section&id=%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1%E5%8F%8A%E5%85%B6%E4%BB%96%E4%BA%BA%E5%A3%AB%E6%96%BC%E6%9C%AC%E5%85%AC%E5%8F%B8%E8%82%A1%E4%BB%BD%E5%8F%8A%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E4%B9%8B%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) As of June 30, 2025, to the knowledge of the company's directors, no other persons held interests or short positions in 5% or more of the company's voting shares, apart from directors and chief executives - Apart from directors and chief executives, no other persons held interests or short positions in **5% or more** of the company's voting shares[86](index=86&type=chunk) [Directors' Rights to Acquire Shares or Debentures](index=35&type=section&id=%E8%91%A3%E4%BA%8B%E6%94%B6%E8%B3%BC%E8%82%A1%E4%BB%BD%E6%88%96%E5%82%B5%E5%88%B8%E4%B9%8B%E6%AC%8A%E5%88%A9) For the six months ended June 30, 2025, neither the company nor its subsidiaries made any arrangements enabling directors or chief executives to acquire rights to subscribe for company securities - Neither the company nor its subsidiaries made any arrangements enabling directors or chief executives to acquire rights to subscribe for company securities[87](index=87&type=chunk) [Purchase, Sale or Redemption of Shares](index=36&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%E8%82%A1%E4%BB%BD) For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any shares - Neither the company nor any of its subsidiaries purchased, sold, or redeemed any shares during the reporting period[88](index=88&type=chunk) [Directors' Interests in Competing Business](index=36&type=section&id=%E8%91%A3%E4%BA%8B%E6%96%BC%E7%AB%B6%E7%88%AD%E6%80%A7%E6%A5%AD%E5%8B%99%E4%B8%AD%E7%9A%84%E6%AC%8A%E7%9B%8A) For the six months ended June 30, 2025, no director or their associates held interests in any business that competes or is likely to compete with the Group's business - No director or their associates held interests in any business that competes or is likely to compete with the Group's business[89](index=89&type=chunk) [Model Code for Securities Transactions by Directors](index=36&type=section&id=%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E4%B9%8B%E8%A1%8C%E7%82%BA%E5%AE%88%E5%89%87) The company has adopted a model code for directors' securities transactions equivalent to that stipulated in the GEM Listing Rules and confirms all directors complied with the required standards during the review period - The company has adopted a model code for directors' securities transactions and confirms all directors complied with the required standards during the review period[90](index=90&type=chunk) [Corporate Governance Code](index=36&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%B8%B8%E8%A6%8F%E5%AE%88%E5%89%87) The Board believes the company complied with the code provisions of the Corporate Governance Code set out in Appendix C1 to the GEM Listing Rules for the six months ended June 30, 2025 - The company complied with the code provisions of the Corporate Governance Code set out in **Appendix C1** to the GEM Listing Rules[91](index=91&type=chunk) [Audit Committee](index=37&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Audit Committee, composed of three independent non-executive directors, oversees and reviews the Group's risk management, internal controls, regulatory compliance, and financial statement integrity, and has reviewed the unaudited interim financial statements for this period - The Audit Committee comprises **three independent non-executive directors**, with Mr. Hu Zijing as Chairman[92](index=92&type=chunk) - The Audit Committee has reviewed the **unaudited interim financial statements for 2025** and considers them to comply with applicable accounting standards and GEM Listing Rules[92](index=92&type=chunk)

( 於中華人民共和國註冊成立的股份有限公司 ) (股份代號：00548) 2025 年半年度業績初步公告 一、 重要提示 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。 1.1 重要提示 | 股票種類 | A 股 | H 股 | | --- | --- | --- | | 股票簡稱 | 深高速 | 深圳高速 | | 股票代碼 | 600548 | 00548 | | 股票上市交易所 | 上交所 | 聯交所 | | 聯繫人和聯繫方式 | 董事會秘書 | 證券事務代表 | | 姓名 | 趙桂萍 | 龔欣、肖蔚 | | 電話 | (86) 755-8669 8069 | (86) 755-8669 8065 | | 傳真 | (86) 755-8669 8002 | | | 電子信箱 | secretary@sz-expressway.com | | 除特別說明外，本公告中之金額幣種為人民幣。 1.2 公司簡介 - 1 - 二、 中期利潤分配方案 董事會建 ...

[Unaudited Interim Results Announcement](index=1&type=section&id=Unaudited%20Interim%20Results%20Announcement) [Interim Results Summary](index=1&type=section&id=Interim%20Results%20Summary) For the six months ended June 30, 2025, the company's revenue decreased by 22.5% year-on-year to approximately 15.1 million USD, with profit for the period turning from near break-even to a loss of approximately 0.9 million USD, and the Board decided not to declare an interim dividend - Interim Results Summary (For the six months ended June 30, 2025) | Indicator | 2025 (Approx.) | 2024 (Approx.) | Change | | :--- | :--- | :--- | :--- | | Revenue | 15.1 million USD | 19.5 million USD | Down 22.5% | | Profit/(Loss) for the Period | Loss 0.9 million USD | Near break-even | From profit to loss | - The Board of Directors will not declare any interim dividend for the six months ended June 30, 2025[2](index=2&type=chunk) [Condensed Consolidated Interim Financial Information](index=2&type=section&id=Condensed%20Consolidated%20Interim%20Financial%20Information) [Condensed Consolidated Interim Statement of Profit or Loss](index=2&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, the company's revenue decreased to 15,138 thousand USD, with gross profit of 5,653 thousand USD, resulting in a loss of 920 thousand USD for the period and basic loss per share of 0.06 US cents - Key Data from Condensed Consolidated Interim Statement of Profit or Loss (thousand USD) | Indicator | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Revenue | 15,138 | 19,539 | | Cost of Sales | (9,485) | (12,576) | | Gross Profit | 5,653 | 6,963 | | Other Income | 432 | 270 | | Selling and Marketing Expenses | (336) | (734) | | General and Administrative Expenses | (6,639) | (6,361) | | Finance Costs | (27) | (33) | | Provision for Trade Receivables | (29) | (31) | | Loss/(Profit) Before Tax | (946) | 74 | | Income Tax Credit/(Expense) | 26 | (50) | | Loss/(Profit) for the Period Attributable to Owners of the Company | (920) | 24 | | Basic Loss/(Earnings) Per Share (US cents) | (0.06) | 0.00 | [Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company reported a loss of 920 thousand USD for the period, which, combined with a 12 thousand USD exchange difference on translation of overseas operations, resulted in a total comprehensive loss of 908 thousand USD attributable to owners of the company - Key Data from Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income (thousand USD) | Indicator | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Loss/(Profit) for the Period | (920) | 24 | | Exchange difference on translation of overseas operations | 12 | (10) | | Other comprehensive income for the period | 12 | (10) | | Total comprehensive income for the period attributable to owners of the Company | (908) | 14 | [Condensed Consolidated Interim Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total non-current assets increased to 2,320 thousand USD, total current assets decreased to 25,666 thousand USD, total current liabilities decreased to 11,730 thousand USD, and net assets were 15,014 thousand USD, a decrease from the end of 2024 - Key Data from Condensed Consolidated Interim Statement of Financial Position (thousand USD) | Indicator | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Total Non-current Assets | 2,320 | 1,360 | | Total Current Assets | 25,666 | 28,649 | | Total Current Liabilities | 11,730 | 13,599 | | Net Current Assets | 13,936 | 15,050 | | Total Assets Less Current Liabilities | 16,256 | 16,410 | | Total Non-current Liabilities | 1,242 | 488 | | Net Assets | 15,014 | 15,922 | | Total Equity | 15,014 | 15,922 | [Notes](index=6&type=section&id=Notes) [Basis of Preparation](index=6&type=section&id=Basis%20of%20Preparation) The Group's condensed consolidated interim financial statements for the six months ended June 30, 2025, are prepared in accordance with HKAS 34 and the disclosure requirements of the Listing Rules, presented in USD, and should be read in conjunction with the annual financial statements - The condensed consolidated interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 and the disclosure requirements of the Listing Rules issued by the Hong Kong Institute of Certified Public Accountants[7](index=7&type=chunk) - The financial information is presented in **USD** and should be read in conjunction with the annual financial statements for the year ended December 31, 2024[8](index=8&type=chunk) [Changes in Accounting Policies and Disclosures](index=6&type=section&id=Changes%20in%20Accounting%20Policies%20and%20Disclosures) This period saw the adoption of amendments to HKAS 21 and HKFRS 1, which had no significant impact on the Group's financial position, performance, or disclosures - Amendments to HKAS 21 and HKFRS 1 (Lack of Exchangeability) have been adopted[9](index=9&type=chunk) - These amendments had no significant impact on the Group's financial position, performance, and disclosures in the condensed consolidated interim financial statements for the current and prior periods[9](index=9&type=chunk) [Operating Segment Information](index=6&type=section&id=Operating%20Segment%20Information) The Group's business comprises two reportable operating segments: Trading and Supply Chain Management Services and Cultural and Entertainment, with management assessing segment performance based on adjusted profit/(loss) before tax, and inter-segment transactions conducted at market prices - The Group's business comprises two reportable operating segments: **Trading and Supply Chain Management Services** and **Cultural and Entertainment**[10](index=10&type=chunk)[12](index=12&type=chunk) - Segment performance is measured based on adjusted profit/(loss) before tax, excluding bank interest income, bank borrowing interest, and unallocated corporate expenses[10](index=10&type=chunk) - Inter-segment sales and transfer transactions are conducted with reference to selling prices to third parties at the time[11](index=11&type=chunk) [Segment Revenue and Results](index=7&type=section&id=Segment%20Revenue%20and%20Results) - Segment Revenue and Results (For the six months ended June 30, 2025, thousand USD) | Segment | Revenue from external customers | Segment results | | :--- | :--- | :--- | | Trading and Supply Chain Management Services | 6,976 | (635) | | Cultural and Entertainment | 8,162 | 25 | | **Total** | **15,138** | **(610)** | | Bank interest income | | 198 | | Corporate and other unallocated expenses | | (534) | | Loss Before Tax | | (946) | - Segment Revenue and Results (For the six months ended June 30, 2024, thousand USD) | Segment | Revenue from external customers | Segment results | | :--- | :--- | :--- | | Trading and Supply Chain Management Services | 8,530 | 129 | | Cultural and Entertainment | 11,009 | 226 | | **Total** | **19,539** | **355** | | Bank interest income | | 194 | | Corporate and other unallocated expenses | | (472) | | Bank borrowing interest | | (3) | | Profit Before Tax | | 74 | [Segment Assets and Liabilities](index=9&type=section&id=Segment%20Assets%20and%20Liabilities) - Segment Assets and Liabilities (As of June 30, 2025, thousand USD) | Segment | Segment Assets | Segment Liabilities | | :--- | :--- | :--- | | Trading and Supply Chain Management Services | 11,160 | 4,095 | | Cultural and Entertainment | 16,554 | 4,863 | | **Total** | **27,714** | **8,958** | | Corporate and other unallocated assets | 272 | | | Loan from a shareholder | | 3,856 | | Corporate and other unallocated liabilities | | 158 | | **Total Assets** | **27,986** | | | **Total Liabilities** | | **12,972** | - Segment Assets and Liabilities (As of December 31, 2024, thousand USD) | Segment | Segment Assets | Segment Liabilities | | :--- | :--- | :--- | | Trading and Supply Chain Management Services | 13,418 | 5,396 | | Cultural and Entertainment | 16,295 | 4,746 | | **Total** | **29,713** | **10,142** | | Corporate and other unallocated assets | 296 | | | Loan from a shareholder | | 3,856 | | Corporate and other unallocated liabilities | | 89 | | **Total Assets** | **30,009** | | | **Total Liabilities** | | **14,087** | [Revenue](index=10&type=section&id=Revenue) For the six months ended June 30, 2025, total revenue was 15,138 thousand USD, primarily from sales of goods, commission income, and internet value-added services, with the China market contributing the majority, and all revenue recognized at a point in time when goods are transferred/services provided - Revenue Analysis (thousand USD) | Revenue Type | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Sales of goods | 5,427 | 7,295 | | Commission income | 3,613 | 4,114 | | Internet value-added services revenue | 6,098 | 8,130 | | **Total** | **15,138** | **19,539** | [Disaggregated Revenue Information](index=10&type=section&id=Disaggregated%20Revenue%20Information) - Revenue by Type of Goods or Services and Geographical Market (For the six months ended June 30, 2025, thousand USD) | Type of Goods or Services | Trading and Supply Chain Management Services | Cultural and Entertainment | Total | | :--- | :--- | :--- | :--- | | Sales of goods | 3,363 | 2,064 | 5,427 | | Commission income | 3,613 | – | 3,613 | | Internet value-added services revenue | – | 6,098 | 6,098 | | **Subtotal** | **6,976** | **8,162** | **15,138** | | **Geographical Market** | | | | | China | 927 | 8,162 | 9,089 | | Southern Hemisphere | 3,109 | – | 3,109 | | North America | 1,796 | – | 1,796 | | Europe | 625 | – | 625 | | Other | 519 | – | 519 | | **Subtotal** | **6,976** | **8,162** | **15,138** | | **Timing of Revenue Recognition** | | | | | At a point in time when goods are transferred/services provided | 6,976 | 8,162 | 15,138 | - Revenue by Type of Goods or Services and Geographical Market (For the six months ended June 30, 2024, thousand USD) | Type of Goods or Services | Trading and Supply Chain Management Services | Cultural and Entertainment | Total | | :--- | :--- | :--- | :--- | | Sales of goods | 4,416 | 2,879 | 7,295 | | Commission income | 4,114 | – | 4,114 | | Internet value-added services revenue | – | 8,130 | 8,130 | | **Subtotal** | **8,530** | **11,009** | **19,539** | | **Geographical Market** | | | | | China | 1,063 | 11,009 | 12,072 | | Southern Hemisphere | 4,100 | – | 4,100 | | North America | 2,236 | – | 2,236 | | Europe | 513 | – | 513 | | Other | 618 | – | 618 | | **Subtotal** | **8,530** | **11,009** | **19,539** | | **Timing of Revenue Recognition** | | | | | At a point in time when goods are transferred/services provided | 8,530 | 11,009 | 19,539 | [Loss/(Profit) Before Tax](index=11&type=section&id=Loss%2F%28Profit%29%20Before%20Tax) For the six months ended June 30, 2025, the Group recorded a loss before tax of 946 thousand USD, primarily due to higher cost of sales, cost of services, and employee benefit expenses, despite a positive net exchange difference - Components of Loss/(Profit) Before Tax (thousand USD) | Item | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Cost of inventories sold | 4,562 | 5,708 | | Cost of services provided | 4,923 | 6,868 | | Depreciation of property, plant and equipment | 76 | 69 | | Depreciation of right-of-use assets | 401 | 379 | | Employee benefit expenses | 5,666 | 5,585 | | Loss on disposal of property, plant and equipment | – | 1 | | Net exchange difference | (38) | 69 | [Income Tax](index=12&type=section&id=Income%20Tax) For the six months ended June 30, 2025, the Group recorded an income tax credit of 26 thousand USD, mainly from deferred tax credit of 20 thousand USD and current tax of 23 thousand USD from outside Hong Kong, offset by a net over-provision from prior periods - Hong Kong qualified group entities are subject to tax at **8.25%** on the first **HKD 2,000,000** of assessable profits, with the remainder taxed at **16.5%**[20](index=20&type=chunk) - Total Income Tax Credit/(Expense) (thousand USD) | Item | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Current - Hong Kong | – | 19 | | Current - Outside Hong Kong | 23 | 29 | | Net (over-provision)/under-provision from prior periods | (29) | 2 | | Deferred tax | (20) | – | | **Total tax (credit)/expense for the period** | **(26)** | **50** | [Dividends](index=12&type=section&id=Dividends) The Board of Directors decided not to declare any interim dividend for the six months ended June 30, 2025, consistent with the prior year period - The Directors will not declare any interim dividend for the six months ended June 30, 2025 (2024: nil)[21](index=21&type=chunk) [Loss/(Earnings) Per Share](index=12&type=section&id=Loss%2F%28Earnings%29%20Per%20Share) For the six months ended June 30, 2025, basic loss per share was 0.06 US cents, compared to basic earnings per share of 0.00 US cents in the prior year period, primarily due to a loss of 920 thousand USD for the period - Basic loss per share was **0.06 US cents**, calculated based on a loss for the period of **920 thousand USD** and **1,509,592,701** ordinary shares in issue[22](index=22&type=chunk) - The Group had no potentially dilutive ordinary shares in issue for the period ended June 30, 2025[22](index=22&type=chunk) [Property, Plant and Equipment](index=12&type=section&id=Property%2C%20Plant%20and%20Equipment) For the six months ended June 30, 2025, the Group purchased assets worth 24 thousand USD and recognized no gain or loss from the disposal of assets - Changes in Property, Plant and Equipment (thousand USD) | Item | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Purchases of assets | 24 | 41 | | Net book value of assets disposed of | 0 | 1 | | Gain or loss on disposal | 0 | Loss 1 | [Right-of-Use Assets](index=12&type=section&id=Right-of-Use%20Assets) For the six months ended June 30, 2025, the Group recognized 1,331 thousand USD in right-of-use assets and lease liabilities due to new lease agreements, a significant increase from the prior year period - The Group recognized **1,331 thousand USD** in right-of-use assets and lease liabilities due to new lease agreements (2024: **31 thousand USD**)[24](index=24&type=chunk) [Trade Receivables](index=13&type=section&id=Trade%20Receivables) As of June 30, 2025, net trade receivables were 2,680 thousand USD, a decrease from 3,901 thousand USD at the end of 2024, with the provision for doubtful debts increasing to 700 thousand USD, and trade receivables over 90 days closely monitored - Trade Receivables (thousand USD) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Gross trade receivables | 3,380 | 4,531 | | Provision for doubtful debts | (700) | (630) | | **Net** | **2,680** | **3,901** | - Ageing Analysis of Trade Receivables (thousand USD) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 30 days | 1,374 | 1,963 | | 31 to 60 days | 460 | 921 | | 61 to 90 days | 221 | 345 | | 91 to 365 days | 711 | 708 | | Over one year | 614 | 594 | | **Total** | **3,380** | **4,531** | [Trade Payables](index=13&type=section&id=Trade%20Payables) As of June 30, 2025, total trade payables were 779 thousand USD, a significant decrease from 1,449 thousand USD at the end of 2024, primarily concentrated within 30 days - Ageing Analysis of Trade Payables (thousand USD) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 30 days | 485 | 651 | | 31 to 60 days | 141 | 637 | | 61 to 90 days | 65 | 74 | | 91 to 365 days | 25 | 11 | | Over one year | 63 | 76 | | **Total** | **779** | **1,449** | [Related Party Transactions](index=14&type=section&id=Related%20Party%20Transactions) The Group engaged in two significant related party transactions during the period: an unsecured, interest-free loan from a shareholder and compensation for key management personnel [Loan from a Shareholder](index=14&type=section&id=Loan%20from%20a%20Shareholder) - A loan from a shareholder amounted to **3,856 thousand USD**, unsecured, interest-free, and repayable by May 22, 2026[27](index=27&type=chunk) [Compensation of Key Management Personnel](index=14&type=section&id=Compensation%20of%20Key%20Management%20Personnel) - Key Management Personnel Compensation (thousand USD) | Item | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Short-term employee benefits | 616 | 616 | | Employee retirement benefits | 46 | 46 | | **Total** | **662** | **662** | [Management Discussion and Analysis](index=15&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=15&type=section&id=Business%20Review) During the reporting period, global economic uncertainties and trade tensions significantly impacted all of the Group's business segments, leading to a 22.5% decrease in total revenue, an 18.8% reduction in gross profit, and a shift from profit to loss for the period [Overview](index=15&type=section&id=Overview) - Total revenue decreased by approximately **22.5%** from approximately **19.5 million USD** to approximately **15.1 million USD**[29](index=29&type=chunk) - Shipments for Trading and Supply Chain Management Services decreased by approximately **14.0%** to approximately **48.1 million USD**, with revenue decreasing by approximately **18.2%** to approximately **7.0 million USD**[29](index=29&type=chunk) - Total revenue from Cultural and Entertainment business decreased by approximately **25.9%** to approximately **8.2 million USD**, primarily due to increased competition, product over-saturation, and suppressed consumer spending[30](index=30&type=chunk) - Gross profit decreased by approximately **18.8%** to approximately **5.7 million USD**, but the gross profit margin increased from approximately **35.6%** to approximately **37.3%**[30](index=30&type=chunk) - Profit for the period turned from near break-even to a loss of approximately **0.9 million USD**, with operating expenses decreasing by approximately **1.8%** (or approximately **7.4%** excluding restructuring costs)[31](index=31&type=chunk) [Segment Analysis](index=16&type=section&id=Segment%20Analysis) - The Group's business includes **Trading and Supply Chain Management Services** and **Cultural and Entertainment** operating segments[32](index=32&type=chunk) [Trading and Supply Chain Management Services](index=16&type=section&id=Trading%20and%20Supply%20Chain%20Management%20Services) - Total shipment volume decreased by approximately **14.0%** to approximately **48.1 million USD**, as customer procurement strategies became more conservative[33](index=33&type=chunk) - The Trading and Supply Chain Management Services segment recorded revenue of approximately **7.0 million USD**, accounting for approximately **46.1%** of the Group's total revenue[37](index=37&type=chunk) [Geographical Analysis](index=16&type=section&id=Geographical%20Analysis) - Total Shipment Value of Trading and Supply Chain Management Services by Region (million USD) | Region | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | North America | 32.4 | 41.7 | | Europe | 11.9 | 9.8 | | Other | 3.8 | 4.4 | | **Total** | **48.1** | **55.9** | - North America shipment volume decreased by approximately **22.3%** to approximately **32.4 million USD**, accounting for approximately **67.4%** of total shipments[35](index=35&type=chunk) - Europe shipment volume increased by approximately **21.4%** to approximately **11.9 million USD**, accounting for approximately **24.7%** of total shipments[36](index=36&type=chunk) - "Other" (primarily Southern Hemisphere) shipment volume decreased by approximately **13.6%** to approximately **3.8 million USD**[37](index=37&type=chunk) [Cultural and Entertainment](index=17&type=section&id=Cultural%20and%20Entertainment) - Revenue from the Cultural and Entertainment segment decreased by approximately **25.9%** from approximately **11.0 million USD** to approximately **8.2 million USD**[37](index=37&type=chunk) - Cultural and Entertainment Segment Revenue Composition (million USD) | Revenue Type | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Online entertainment | 6.1 | 8.1 | | Sales of goods | 2.1 | 2.9 | | **Total** | **8.2** | **11.0** | - Online entertainment revenue decreased by approximately **25.0%** to approximately **6.1 million USD**, and sales of goods contracted by approximately **28.3%** to approximately **2.1 million USD**[38](index=38&type=chunk)[39](index=39&type=chunk) - The decrease in revenue was due to increased competition in online claw machine games, over-saturation in the trendy toy industry, and macroeconomic headwinds suppressing consumer spending[30](index=30&type=chunk)[39](index=39&type=chunk) [Financial Review](index=18&type=section&id=Financial%20Review) The Group maintains a sound financial position with ample cash and deposits, a current ratio of approximately 2.2, and a zero debt-to-equity ratio; trade receivables are closely monitored and adequately provided for, with net assets of approximately 15.0 million USD [Financial Resources and Liquidity](index=18&type=section&id=Financial%20Resources%20and%20Liquidity) - Deposits and cash and cash equivalents were approximately **21.1 million USD** (consistent with the end of 2024)[40](index=40&type=chunk) - Total bank facilities were approximately **5.1 million USD**, of which approximately **100 thousand USD** was utilized for borrowings[40](index=40&type=chunk) - The current ratio was approximately **2.2** (end of 2024: approximately **2.1**), and the debt-to-equity ratio was **zero**[40](index=40&type=chunk) - Trade receivables were approximately **2.7 million USD** (end of 2024: approximately **3.9 million USD**), with adequate provision made for accounts over 90 days[41](index=41&type=chunk) - Net assets were approximately **15.0 million USD** (end of 2024: approximately **15.9 million USD**)[41](index=41&type=chunk) - The Group had no significant contingent liabilities or guarantees, nor had it pledged any of its assets[42](index=42&type=chunk) [Remuneration Policy and Staff Development Programs](index=18&type=section&id=Remuneration%20Policy%20and%20Staff%20Development%20Programs) As of June 30, 2025, the Group employed 259 staff, with total employee costs of approximately 5.7 million USD, offering competitive remuneration, a share option scheme, and discretionary bonuses to incentivize employees - As of June 30, 2025, the Group employed **259** staff (2024: **264** staff)[43](index=43&type=chunk) - Total employee costs for the review period were approximately **5.7 million USD** (2024: approximately **5.6 million USD**)[43](index=43&type=chunk) - The Group has established competitive remuneration packages, a share option scheme for eligible employees, and discretionary bonuses to incentivize staff[44](index=44&type=chunk) [Prospects](index=19&type=section&id=Prospects) Facing global economic uncertainty, escalating trade barriers, and surging tariffs with the potential return of the Trump administration, the Group anticipates continued challenges in the short term and will actively diversify procurement, expand supply chain networks, broaden product portfolios, implement cost controls, and explore M&A and investment opportunities to navigate these challenges - The global economy faces complex challenges, with escalating trade barriers and surging tariffs, and the situation is expected to remain challenging in the second half of the year[45](index=45&type=chunk) - The Group is actively pursuing diversified procurement models, expanding its supply chain network, broadening its product portfolio, and implementing strict cost controls[45](index=45&type=chunk) - The Cultural and Entertainment segment will expand its online business through new media platforms and influencer collaborations, regularly launch new products, and deepen its design capabilities to develop innovative trendy toy products[46](index=46&type=chunk) - The Group will closely monitor economic developments, adjust strategies, and explore potential M&A and investment opportunities to consolidate and diversify its business[47](index=47&type=chunk) [Other Information](index=20&type=section&id=Other%20Information) [Material Investments, Major Acquisitions or Disposals](index=20&type=section&id=Material%20Investments%2C%20Major%20Acquisitions%20or%20Disposals) For the six months ended June 30, 2025, the Group had no material investments, major acquisitions, or disposals - The Group had no material investments, major acquisitions, or disposals during the reporting period[48](index=48&type=chunk) [Future Plans for Material Investments](index=20&type=section&id=Future%20Plans%20for%20Material%20Investments) As of the date of this announcement, the Group has no plans for any significant future investments or capital assets - As of the date of this announcement, the Group has no plans for any significant future investments or capital assets[49](index=49&type=chunk) [Events After Reporting Period](index=20&type=section&id=Events%20After%20Reporting%20Period) No significant events occurred after the end of the reporting period and up to the date of this announcement - No significant events occurred after the end of the reporting period and up to the date of this announcement[50](index=50&type=chunk) [Interim Dividends](index=20&type=section&id=Interim%20Dividends) The Board of Directors resolved not to declare any interim dividend for the six months ended June 30, 2025, consistent with the prior year period - The Board of Directors resolved not to declare any interim dividend for the six months ended June 30, 2025 (2024: nil)[51](index=51&type=chunk) [Purchase, Sale or Redemption of Shares](index=20&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Shares) 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[52](index=52&type=chunk) [Audit Committee](index=20&type=section&id=Audit%20Committee) The Company's Audit Committee has reviewed the Group's accounting policies and the unaudited condensed consolidated interim financial information for the six months ended June 30, 2025, but this information has not been audited or reviewed by an independent auditor - The Audit Committee has reviewed the Group's accounting policies and the unaudited condensed consolidated interim financial information[53](index=53&type=chunk) - The condensed consolidated interim financial information has not been audited or reviewed by the Company's independent auditor[53](index=53&type=chunk) [Corporate Governance](index=20&type=section&id=Corporate%20Governance) For the period ended June 30, 2025, and up to the date of this announcement, the Company has not yet appointed a Chairman of the Board, but the Board believes this vacancy will not adversely affect the Company and is committed to identifying a suitable candidate - The Company has not yet appointed a Chairman of the Board, in breach of Rule C.2.1 of Appendix C1 to the Listing Rules[54](index=54&type=chunk) - The Board believes that the vacancy of the Chairman will not adversely affect the Company and is committed to identifying and appointing a suitable Chairman[54](index=54&type=chunk) [Standard Code for Securities Transactions](index=21&type=section&id=Standard%20Code%20for%20Securities%20Transactions) The Company has adopted the Standard Code as set out in Appendix C3 to the Listing Rules as the code of conduct for Directors' dealings in company securities and has established written guidelines for employees no less exacting than the Standard Code; all Directors confirmed compliance with the Standard Code during the reporting period, and no employee violations were found - The Company has adopted the Standard Code as set out in Appendix C3 to the Listing Rules as the code of conduct for Directors' dealings in the Company's securities[55](index=55&type=chunk) - All Directors have confirmed compliance with the Standard Code during the reporting period[55](index=55&type=chunk) - The Company has established written guidelines for employees no less exacting than the terms of the Standard Code, and no violations by relevant employees were found[55](index=55&type=chunk) [Publication of Results Announcement and Interim Report](index=21&type=section&id=Publication%20of%20Results%20Announcement%20and%20Interim%20Report) This announcement has been published on the Company's website and the Stock Exchange's website, and the interim report will be sent to shareholders upon request and published on the aforementioned websites in due course - This announcement has been published on the Company's website (www.daoheglobal.com.hk) and the Stock Exchange's website (www.hkexnews.hk)[56](index=56&type=chunk) - The Company's 2025 interim report will be sent to shareholders upon request and published on the aforementioned websites in due course[56](index=56&type=chunk) [By Order of the Board](index=21&type=section&id=By%20Order%20of%20the%20Board) This announcement is issued by Mr. Wong Hing Nin, Executive Director and Chief Executive Officer, on behalf of the Board; as of the announcement date, the Board comprises two executive directors and three independent non-executive directors - This announcement is issued by Mr. Wong Hing Nin, Executive Director and Chief Executive Officer, on behalf of the Board[57](index=57&type=chunk) - As of the date of this announcement, the executive directors are Mr. Wong Hing Nin and Mr. Lung Li Ping, and the independent non-executive directors are Mr. Lau Shu Yan, Mr. Cheung Wui Chun, and Ms. Lok Kuen[57](index=57&type=chunk)

KANGLI INTERNATIONAL HOLDINGS LIMITED 香 港 交 易 及 結 算 所 有 限 公 司 及 香 港 聯 合 交 易 所 有 限 公 司 對 本 公 告 之 內 容 概 不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示 概 不 就 因 本 公 告 全 部 或 任 何 部 分 內 容 而 產 生 或 因 倚 賴 該 等 內 容 而 引 致 之 任 何 損 失 承 擔 任 何 責 任。 康 利 國 際 控 股 有 限 公 司 （ 於 開 曼 群 島 註 冊 成 立 的 有 限 公 司 ） （股 份 代 號：06890） 截至2025年6月30日止六個月之 中期業績公告 康 利 國 際 控 股 有 限 公 司（「本公司」）董 事（「董 事」）會（「董事會」）欣 然 公 佈 本 公 司 及 其 附 屬 公 司（統 稱「本集團」）截 至2025年6月3 0日止六個月之未經審核綜合 業 績，連 同 上 個 財 政 年 度 同 期 之 比 較 數 字 如 下： | 財務表現摘要 | | | | | --- | --- | --- | --- ...

675 K & P International Holdings Limited * | 3 | 81,107,649 | | 89,330,897 | | --- | --- | --- | --- | | | (65,531,557) __________________ | __________________ | (73,478,530) | | | 15,576,092 | | 15,852,367 | | 3 | 1,892,251 | | 2,151,129 | | | - | | (10,635,692) | | | (8,208,706) | | (8,159,568) | | | (14,933,953) | | (11,072,306) | | 4 | (170,951) | | (148,629) | | | __________________ | __________________ | | | 5 | (5,845,267) | | (12,012,699) | | 6 | 863,502 | | 1,203,710 | | | __________________ | ____ ...

[Wanguo Gold Group Limited 2024 Annual Report Supplemental Announcement](index=1&type=section&id=Wanguo%20Gold%20Group%20Limited%202024%20Annual%20Report%20Supplemental%20Announcement) [Announcement Background and Scope](index=1&type=section&id=Announcement%20Background%20and%20Scope) This announcement supplements the 2024 annual report, providing additional details on the 2024 Share Award and Share Option Schemes, with other report content remaining unchanged - This announcement supplements the company's annual report for the year ended December 31, 2024, published on April 28, 2025[3](index=3&type=chunk) - The supplementary content primarily concerns the 2024 Share Award Scheme and the 2024 Share Option Scheme[3](index=3&type=chunk) - All other information in the annual report remains unchanged, except for the details disclosed in this announcement[3](index=3&type=chunk) [2024 Share Award Scheme](index=1&type=section&id=2024%20Share%20Award%20Scheme) Grantees under the 2024 Share Award Scheme may pay a Board-determined consideration for awarded shares within ten business days of the grant date - Grantees may be required to pay the company consideration for accepting the share awards[4](index=4&type=chunk) - Such payment, if any, must be made within **ten business days** from the date of grant[4](index=4&type=chunk) - The payment amount is determined by the Board[4](index=4&type=chunk) [2024 Share Option Scheme](index=1&type=section&id=2024%20Share%20Option%20Scheme) Grantees under the 2024 Share Option Scheme must pay **HK$1.00** to the company within fourteen days for accepting granted options - Grantees are required to pay the company **HK$1.00** as consideration for accepting the share options[4](index=4&type=chunk) - This payment must be completed within **fourteen days** from the date of grant[4](index=4&type=chunk) [Board Composition](index=1&type=section&id=Board%20Composition) The announcement details the Board's composition as of the date of publication, including executive, non-executive, and independent non-executive directors - Executive Directors include Mr. Gao Mingqing (Chairman), Ms. Gao Jinzhu, Mr. Liu Zhichun, and Mr. Wang Guobiao[3](index=3&type=chunk) - The Non-Executive Director is Mr. Wang Renxiang[3](index=3&type=chunk) - Independent Non-Executive Directors include Mr. Zeng Weixiong, Mr. Wang Zhiming, and Mr. Wang Xin[3](index=3&type=chunk)

[Company Overview and Performance Summary](index=1&type=section&id=公司概覽与业绩摘要) This section provides an overview of Archosaur Games Inc., including its corporate information, report scope, and a summary of its financial performance for the six months ended June 30, 2025 [Company Information and Report Scope](index=1&type=section&id=1.1%20公司信息与报告范围) Archosaur Games Inc. released its unaudited interim consolidated results for the six months ended June 30, 2025, reviewed by the audit committee and PwC - The company is Archosaur Games Inc., stock code 9990, incorporated in the Cayman Islands[2](index=2&type=chunk) - The reporting period is the six months ended June 30, 2025, with unaudited results reviewed by the audit committee and independent auditor PwC[3](index=3&type=chunk) [Financial Performance Summary](index=2&type=section&id=1.2%20财务业绩摘要) For the six months ended June 30, 2025, the Group's revenue increased by 44.4% to RMB 634.3 million, operating loss narrowed by 76.1% to RMB 36.8 million, and loss for the period decreased by 91.3% to RMB 11.7 million, with adjusted net loss significantly reduced by 93.6% to RMB 7.7 million Key Financial Indicators for the Six Months Ended June 30, 2025 | Indicator | 2025 (RMB Million) | 2024 (RMB Million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 634.3 | 439.4 | 44.4% | | Cost of Revenue | (181.5) | (117.7) | 54.2% | | Gross Profit | 452.8 | 321.7 | 40.8% | | Research and Development Expenses | (265.5) | (264.1) | 0.5% | | Selling and Marketing Expenses | (222.3) | (172.7) | 28.7% | | Administrative Expenses | (44.8) | (47.0) | (4.7%) | | Operating Loss | (36.8) | (154.0) | (76.1%) | | Loss for the Period | (11.7) | (134.0) | (91.3%) | | Adjusted Net Loss | (7.7) | (120.4) | (93.6%) | - Revenue significantly increased by **44.4%**, primarily driven by the launch of new games "Dragon Raja: The Gate of Cassell" and "Tafengxing" in mainland China, and the stable performance of "Life Makeover"[4](index=4&type=chunk) - Operating loss and loss for the period significantly narrowed, reflecting improved operational efficiency and contributions from new games[4](index=4&type=chunk) [Management Discussion and Analysis](index=3&type=section&id=管理层讨论与分析) This section reviews the Group's business performance, financial results, liquidity, human resources, foreign exchange risk management, and the utilization of global offering proceeds [Business Review](index=3&type=section&id=2.1%20业务回顾) The Group aims to be a top-tier global game company, focusing on developing multi-genre mobile games, advancing Unreal Engine technology, and applying AI, having launched 24 mobile games in over 170 regions and planning 7 new releases from H2 2025 to 2027 - The company's vision is to become a top-tier global game company, focusing on developing mobile games across genres such as MMORPG, female-oriented, strategy card, and SLG[5](index=5&type=chunk) - Technologically, the company deepens Unreal Engine research to create next-gen 3A-level rendering and explores AI applications in game development, including intelligent NPCs and AIGC integration[5](index=5&type=chunk) - Regarding globalization strategy, the company implements an integrated R&D and operations layout, customizes differentiated strategies for various markets, and deepens localization efforts[5](index=5&type=chunk) [Company Vision and Core Competencies](index=3&type=section&id=2.1.1%20公司愿景与核心竞争力) Archosaur Games aims to be a world-class game company, continuously developing high-quality games across genres to provide global players with excellent online entertainment, leveraging leading R&D capabilities in Unreal Engine technology and AI applications - The company is committed to becoming a top-tier global game company, continuously developing industry-leading, high-quality games across various genres[5](index=5&type=chunk) - Deepening Unreal Engine technology research to build next-generation 3A-level realistic rendering and immersive scene and character experiences[5](index=5&type=chunk) - Exploring AI applications in game development, enhancing game dynamism by embedding intelligent NPCs and combining UGC with AIGC[5](index=5&type=chunk) [Existing Game Performance](index=3&type=section&id=2.1.2%20现有游戏表现) As of the reporting period, the Group has launched 24 mobile games in over 170 global markets, with "Life Makeover" showing significant profit growth and over RMB 2 billion in cumulative global gross billings, "Dragon Raja: The Gate of Cassell" performing well in Hong Kong, Macau, and Taiwan and growing MAU/DAU in mainland China, and "Tafengxing" topping the iOS free chart upon launch - As of the announcement date, the company has launched **24 mobile games** in over **170 regional markets**, supporting **14 languages**[6](index=6&type=chunk) [Life Makeover](index=3&type=section&id=2.1.2.1%20《以闪亮之名》) "Life Makeover," a highly customizable fashion-oriented mobile game, achieved significant year-on-year and quarter-on-quarter profit growth in H1 2025, with cumulative global gross billings exceeding RMB 2 billion, driven by global endorsements, AI-powered emotional companionship, high-quality updates, and collaborations, leading to peak summer average DAU - "Life Makeover" achieved significant year-on-year and quarter-on-quarter profit growth in H1 2025[7](index=7&type=chunk) - The game launched its global ambassador pet, Lychee Meow, leveraging large language models to provide warm emotional companionship to players[7](index=7&type=chunk) - In mainland China, the average DAU in H1 2025 surpassed the average DAU of 2024 and 2023, with the summer average DAU reaching its peak for 2025[7](index=7&type=chunk) - As of the date of this performance announcement, "Life Makeover"'s cumulative global gross billings exceeded **RMB 2 billion**[7](index=7&type=chunk) [Dragon Raja: The Gate of Cassell](index=4&type=section&id=2.1.2.2%20《龙族：卡塞爾之門》) "Dragon Raja: The Gate of Cassell," an Unreal Engine 4 strategy card game, topped the iOS free game chart and entered the top-selling ranks after its April 2025 launch in Hong Kong, Macau, and Taiwan, showing significant MAU and DAU growth in mainland China during summer, with its August 1st DAU and new user scale reaching a 2025 peak, and also ranking top three on iOS free chart in Thailand on its launch day - "Dragon Raja: The Gate of Cassell" launched in Hong Kong, Macau, and Taiwan in April 2025, topping the iOS free game chart during its pre-download phase[8](index=8&type=chunk) - The game's MAU and average DAU in mainland China during summer significantly increased compared to H1 2025, with August 1st's single-day DAU and new user scale reaching a 2025 peak[8](index=8&type=chunk) - The product entered the top three on the iOS free game chart on its launch day in Thailand[8](index=8&type=chunk) [Other Mature Games](index=4&type=section&id=2.1.2.3%20其他成熟期游戏) "Tafengxing" launched in mainland China in May 2025, topping the iOS free game chart on its pre-download day. Mature games like "Dragon Raja" (over 6 years in operation) and "Fantasy Zhu Xian" (over 8 years) showed stable performance, with "Fantasy Zhu Xian" achieving positive growth in gross billings and new users in H1 2025, demonstrating long-term vitality - "Tafengxing" officially launched in mainland China on May 16, 2025, topping the iOS free game chart on its pre-download day[9](index=9&type=chunk) - "Fantasy Zhu Xian" achieved positive growth in gross billings and new users in H1 2025, demonstrating the long-term vitality of turn-based MMORPG games[9](index=9&type=chunk) - The company continues to invest in and maintain several classic games, including "Homeland of Glory" and "Jade Dynasty," ensuring their stable performance and revenue contribution[9](index=9&type=chunk) [Game Product Pipeline](index=5&type=section&id=2.1.3%20游戏产品储备) To build a diversified game portfolio, the Group plans to launch 7 new games of various genres globally from H2 2025 to 2027, including strategy card, female-oriented, idle RPG, MMORPG, and action-shooter titles, with "Dragon Raja: The Gate of Cassell" and "Life Makeover" expanding to Southeast Asia and Korea, alongside original and licensed IP projects - The company expects to launch **7 new game products** of various genres globally between H2 2025 and 2027[10](index=10&type=chunk) Game Product Pipeline Overview (2025-2027) | Name | Type | IP Source | Development Stage | Expected Launch Year | Primary Markets | | :--- | :--- | :--- | :--- | :--- | :--- | | **2025** | | | | | | | Dragon Raja: The Gate of Cassell | Strategy Card Game | Licensed IP | Game Testing | 2025 | Southeast Asia | | Life Makeover | Female-Oriented | Original IP | Game Testing | 2025 | Korea | | **2026** | | | | | | | Dragon Raja: The Gate of Cassell | Strategy Card Game | Licensed IP | Game Testing | 2026 | Japan, Korea, and other global regions | | Tafengxing | Idle RPG | Original IP | Game Testing | 2026 | Asia (excluding mainland China) | | Project Code: Xiaoyao | MMORPG | Original IP | Game Production | 2026 | Mainland China | | Project K | Female-Oriented Game | Original IP | Game Production | 2026 | Global | | **2027** | | | | | | | Project G | Strategy Card Game | Licensed IP | Game Production | 2027 | Global | | Project Code: One | Action Shooter Game | Original IP | Game Proposal | 2027 | Global | - The product pipeline includes diverse game genres such as strategy card, female-oriented, idle RPG, MMORPG, and action-shooter, covering both original and licensed IPs[11](index=11&type=chunk) [Financial Review](index=6&type=section&id=2.2%20财务回顾) For the six months ended June 30, 2025, the Group's revenue grew by 44.4% to RMB 634.3 million, driven by new game launches and "Life Makeover"'s stable performance, with integrated game publishing and operations revenue up 53.8% and mainland China revenue up 68.3%. Gross margin remained stable at 71.4%, while operating expenses saw a 28.7% increase in sales and marketing due to new game promotions, with R&D and administrative expenses effectively controlled. Loss for the period and adjusted net loss significantly narrowed, primarily due to revenue growth and net foreign exchange gains - Revenue for the reporting period was **RMB 634.3 million**, an increase of **44.4%** compared to the same period in 2024, primarily due to the launch of "Dragon Raja: The Gate of Cassell" and "Tafengxing" in mainland China, and the continued stable performance of "Life Makeover"[14](index=14&type=chunk) - Future product type expansion and the refinement of the "integrated R&D and operations" model are expected to further extend game lifecycles and contribute more stable and sustainable revenue[14](index=14&type=chunk) [Revenue Analysis](index=6&type=section&id=2.2.1%20收益分析) For the six months ended June 30, 2025, the Group's total revenue was RMB 634.3 million, a 44.4% year-on-year increase, with integrated game publishing and operations revenue growing 53.8% to RMB 579.0 million, accounting for 91.3% of total revenue. Mainland China revenue increased by 68.3% to RMB 511.7 million, representing 80.7% of total revenue, while revenue from outside mainland China slightly decreased Revenue Breakdown by Business Segment | Business Segment | 2025 (RMB Million) | Percentage of Total Revenue | 2024 (RMB Million) | Percentage of Total Revenue | | :--- | :--- | :--- | :--- | :--- | | Development and Licensing | 55.1 | 8.7% | 62.0 | 14.1% | | Integrated Game Publishing and Operations | 579.0 | 91.3% | 376.5 | 85.7% | | Others | 0.2 | 0.0% | 0.9 | 0.2% | | **Total** | **634.3** | **100.0%** | **439.4** | **100.0%** | Revenue Breakdown by Geographical Location | Geographical Location | 2025 (RMB Million) | Percentage of Total Revenue | 2024 (RMB Million) | Percentage of Total Revenue | | :--- | :--- | :--- | :--- | :--- | | Mainland China | 511.7 | 80.7% | 304.0 | 69.2% | | Outside Mainland China | 122.6 | 19.3% | 135.4 | 30.8% | | **Total** | **634.3** | **100.0%** | **439.4** | **100.0%** | - The increase in total revenue was primarily due to the launch of "Dragon Raja: The Gate of Cassell" and "Tafengxing" in mainland China, and the continued stable performance of "Life Makeover"[18](index=18&type=chunk) [Cost of Revenue and Gross Profit](index=7&type=section&id=2.2.2%20收益成本与毛利) For the six months ended June 30, 2025, cost of revenue increased by 54.2% year-on-year to RMB 181.5 million, consistent with the growth in integrated game publishing and operations revenue. Gross profit increased by 40.8% to RMB 452.8 million, with gross margin slightly decreasing from 73.2% in the same period of 2024 to 71.4%, but remaining largely stable Cost of Revenue Breakdown | Cost of Revenue Nature | 2025 (RMB Million) | Percentage of Cost of Revenue | 2024 (RMB Million) | Percentage of Cost of Revenue | | :--- | :--- | :--- | :--- | :--- | | Commissions to Distribution and Payment Channels | 135.2 | 74.5% | 86.4 | 73.4% | | Commissions to IP Holders | 19.9 | 11.0% | 9.6 | 8.2% | | Bandwidth and Server Hosting Fees | 13.3 | 7.3% | 11.8 | 10.0% | | Employee Benefits Expenses | 6.4 | 3.5% | 6.2 | 5.3% | | Depreciation and Amortization Expenses | 3.7 | 2.0% | 1.2 | 1.0% | | Others | 3.0 | 1.7% | 2.5 | 2.1% | | **Total** | **181.5** | **100.0%** | **117.7** | **100.0%** | - Gross profit increased by **40.8%** to **RMB 452.8 million**, primarily driven by increased revenue[21](index=21&type=chunk) - Gross margin decreased from **73.2%** to **71.4%**, remaining largely consistent with the comparable period[21](index=21&type=chunk) [Operating Expenses](index=8&type=section&id=2.2.3%20运营开支) For the six months ended June 30, 2025, R&D expenses slightly increased by 0.5% year-on-year to RMB 265.5 million, mainly due to effective control over employee benefits. Sales and marketing expenses increased by 28.7% to RMB 222.3 million, primarily due to the launch of "Tafengxing" and ongoing promotion of "Dragon Raja: The Gate of Cassell." Administrative expenses decreased by 4.7% to RMB 44.8 million, reflecting effective cost control - R&D expenses slightly increased by **0.5%** to **RMB 265.5 million**, primarily due to continuous control over employee benefits[22](index=22&type=chunk) - Sales and marketing expenses increased by **28.7%** to **RMB 222.3 million**, mainly impacted by the launch of "Tafengxing" and promotional expenses for "Dragon Raja: The Gate of Cassell," partially offset by reduced advertising expenses for "Life Makeover"[23](index=23&type=chunk) - Administrative expenses decreased by **4.7%** to **RMB 44.8 million**, primarily attributable to cost control[24](index=24&type=chunk) [Other Income and Net Gains](index=9&type=section&id=2.2.4%20其他收入与收益净额) For the six months ended June 30, 2025, other income increased by 135.3% year-on-year to RMB 4.0 million, primarily from interest income on financial assets measured at amortized cost. Other net gains significantly increased by 934.2% year-on-year to RMB 39.3 million, mainly due to net foreign exchange gains - Other income increased by **135.3%** to **RMB 4.0 million**, primarily from interest income on financial assets, partially offset by reduced government grants[25](index=25&type=chunk) - Other net gains significantly increased by **934.2%** to **RMB 39.3 million**, primarily due to net foreign exchange gains[26](index=26&type=chunk) [Net Finance Income](index=9&type=section&id=2.2.5%20财务收入净额) For the six months ended June 30, 2025, net finance income was RMB 23.7 million, a slight decrease of 3.7% from RMB 24.6 million in the same period of 2024, remaining relatively stable during the comparable period - Net finance income was **RMB 23.7 million**, a year-on-year decrease of **3.7%**, remaining relatively stable[27](index=27&type=chunk) [Income Tax Expense](index=9&type=section&id=2.2.6%20所得税开支) For the six months ended June 30, 2025, total income tax expense was RMB 1.6 million, an increase of 45.5% from RMB 1.1 million in the same period of 2024, primarily due to the partial utilization of deferred tax assets related to promotion and advertising expenses from prior periods - Total income tax expense was **RMB 1.6 million**, a year-on-year increase of **45.5%**, primarily due to the partial utilization of deferred tax assets[28](index=28&type=chunk) [Adjusted Net Loss (Non-IFRS Measure)](index=9&type=section&id=2.2.7%20经调整亏损净额%20(非IFRS指标)) For the six months ended June 30, 2025, adjusted net loss was RMB 7.7 million, a significant reduction of 93.6% from RMB 120.4 million in the same period of 2024. The reduced loss was primarily due to increased revenue from new game launches and the stable performance of "Life Makeover," along with net foreign exchange gains, partially offset by increased promotion and advertising expenses - Adjusted net loss was **RMB 7.7 million**, a significant year-on-year decrease of **93.6%**[29](index=29&type=chunk) - The reduction in loss was primarily attributable to increased revenue driven by new game launches and the stable performance of "Life Makeover," as well as net foreign exchange gains[29](index=29&type=chunk) Reconciliation of Loss for the Period to Adjusted Net Loss for the Period | Indicator | 2025 (RMB Million) | 2024 (RMB Million) | | :--- | :--- | :--- | | Loss for the Period | (11.7) | (134.0) | | Add back: Share-based Payment Expenses | 4.0 | 13.6 | | **Adjusted Net Loss for the Period** | **(7.7)** | **(120.4)** | [Liquidity and Financial Resources](index=10&type=section&id=2.3%20流动资金及财务资源) The Group maintains a prudent financial management policy, with the Board deeming working capital sufficient. For the six months ended June 30, 2025, net cash used in operating activities decreased by 47.1% to RMB 36.1 million, net cash used in investing activities was RMB 117.7 million, primarily due to increased purchases of time deposits. Net cash used in financing activities decreased by 62.8% to RMB 16.2 million. The gearing ratio slightly increased to 23.7%. The company holds significant investments in Morgan Stanley Asia's wealth management products to enhance returns - The Board believes the Group has sufficient working capital to meet current operational needs[32](index=32&type=chunk) [Cash Flows](index=11&type=section&id=2.3.1%20现金流量) For the six months ended June 30, 2025, net cash used in operating activities was RMB 36.1 million, a 47.1% year-on-year decrease, primarily due to increased cash inflows from game operations. Net cash used in investing activities was RMB 117.7 million, compared to net cash generated in the prior period, mainly due to increased purchases of time deposits. Net cash used in financing activities decreased by 62.8% to RMB 16.2 million, primarily due to payments to stockbrokers in prior periods Cash Flow Overview | Cash Flow Activity | 2025 (RMB Million) | 2024 (RMB Million) | Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (36.1) | (68.3) | (47.1%) | | Net Cash (Used in) / Generated from Investing Activities | (117.7) | 112.7 | (204.4%) | | Net Cash Used in Financing Activities | (16.2) | (43.5) | (62.8%) | | Net (Decrease) / Increase in Cash and Cash Equivalents | (170.0) | 0.9 | (18988.9%) | | Cash and Cash Equivalents at End of Period | 261.7 | 558.5 | (53.1%) | - Net cash used in operating activities decreased by **47.1%**, primarily due to increased cash inflows from game operations[34](index=34&type=chunk) - Investing activities shifted from net cash generated to net cash used, primarily due to increased purchases of time deposits during the reporting period[35](index=35&type=chunk) [Gearing Ratio](index=11&type=section&id=2.3.2%20资产负债比率) As of June 30, 2025, the Group's gearing ratio (total liabilities divided by total assets) was 23.7%, an increase from 19.0% as of December 31, 2024 - The gearing ratio increased from **19.0%** as of December 31, 2024, to **23.7%** as of June 30, 2025[37](index=37&type=chunk) [Capital Expenditure](index=12&type=section&id=2.3.3%20资本开支) For the six months ended June 30, 2025, total capital expenditure was RMB 4.4 million, a 72.5% decrease from RMB 16.0 million in the same period of 2024, primarily due to reduced payments for intangible asset purchases - Total capital expenditure was **RMB 4.4 million**, a year-on-year decrease of **72.5%**, primarily due to reduced payments for intangible asset purchases[38](index=38&type=chunk) [Significant Investments](index=12&type=section&id=2.3.4%20重大投资) The Group holds significant investments in Morgan Stanley Asia's financial products, including callable step-up fixed coupon notes and US Treasury Notes, with a total carrying value of approximately RMB 144.1 million, representing 5.3% of total assets. These investments aim to enhance capital returns while ensuring fund safety and liquidity, without impacting daily operations or core business development Overview of Significant Investments (As of June 30, 2025) | Investment Name | Product Nature | Cost (RMB Million) | Carrying Value (RMB Million) | Expected Annualized Return | Percentage of Total Group Assets | | :--- | :--- | :--- | :--- | :--- | :--- | | Morgan Stanley Asia Callable Step-Up Fixed Coupon Notes | Fixed Rate Notes | 70.1 | 71.8 | Year 1: 5.68%, decreasing annually | 2.6% | | US TREASURY NOTE | US Treasury Note | 72.0 | 72.3 | 4.43% | 2.7% | | **Total** | | **142.1** | **144.1** | | **5.3%** | - The Board believes that the reasonable and effective use of temporary idle funds will enhance capital returns, aligning with the company's core objective of ensuring fund safety and liquidity[41](index=41&type=chunk) [Significant Acquisitions, Disposals, and Contingent Liabilities](index=13&type=section&id=2.3.5%20重大收并购及或然负债) For the six months ended June 30, 2025, the Group had no significant acquisitions or disposals of subsidiaries, associates, or joint ventures. Additionally, as of the end of the reporting period, the Group faced no significant unrecorded contingent liabilities and had no pledged property, plant, and equipment - For the six months ended June 30, 2025, there were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures[43](index=43&type=chunk) - As of June 30, 2025, the Group faced no significant unrecorded contingent liabilities[45](index=45&type=chunk) - As of June 30, 2025, no property, plant, and equipment were pledged[44](index=44&type=chunk) [Employees and Remuneration](index=14&type=section&id=2.4%20员工与薪酬) As of June 30, 2025, the Group employed approximately 1,052 full-time staff, with about 76.0% in R&D, and employee remuneration and benefits costs totaled approximately RMB 276.4 million. The company is committed to a competitive and fair compensation environment, incentivizing employees through performance evaluations, quarterly selections, base salaries, performance bonuses, year-end bonuses, and share-based incentive plans, while also providing social security and regular professional training - As of June 30, 2025, the company employed approximately **1,052 full-time staff**, with about **76.0%** being R&D personnel[46](index=46&type=chunk) - For the six months ended June 30, 2025, employee remuneration and benefits costs were approximately **RMB 276.4 million**[46](index=46&type=chunk) - The company incentivizes employees through market research, performance evaluations, quarterly selections, base salaries, performance bonuses, year-end bonuses, and share-based remuneration plans (Restricted Share Unit Scheme, Share Option Scheme)[46](index=46&type=chunk) - The company provides regular professional training to employees, covering general management, project execution, and technical knowledge, to help them stay updated on industry developments[47](index=47&type=chunk) [Foreign Currency Exchange Risk](index=14&type=section&id=2.5%20外币汇兑风险) For the six months ended June 30, 2025, most of the Group's transactions and cash equivalents were denominated in RMB, USD, and HKD. The management team closely monitors foreign currency exchange risk, incurred no significant foreign currency exchange losses, and will continue to monitor and consider prudent measures - Most of the Group's transactions and cash equivalents are denominated in RMB, USD, and HKD[48](index=48&type=chunk) - For the six months ended June 30, 2025, the Group incurred no significant foreign currency exchange losses in its operations[48](index=48&type=chunk) [Use of Net Proceeds from Global Offering](index=14&type=section&id=2.6%20全球发售所得款项净额用途) From the listing date to June 30, 2025, approximately HKD 2,112.4 million of the HKD 2,358.5 million net proceeds from the global offering has been utilized. Funds for enhancing development capabilities, expanding game publishing and operations, enlarging IP reserves, and working capital have been fully used. The timetable for utilizing the remaining net proceeds of HKD 246.1 million for strategic acquisitions and investments in the industry value chain has been postponed to December 2026 - The net proceeds from the global offering amounted to approximately **HKD 2,358.5 million**[49](index=49&type=chunk) - As of June 30, 2025, approximately **HKD 2,112.4 million** has been utilized, with **HKD 246.1 million** remaining[50](index=50&type=chunk) Use of Net Proceeds from Global Offering and Utilization Status | Purpose | Percentage | Net Proceeds (HKD Million) | Amount Utilized (HKD Million) | Amount Unutilized (HKD Million) | Expected Timeline for Remaining Net Proceeds | | :--- | :--- | :--- | :--- | :--- | :--- | | Enhance development capabilities and technology, expand game portfolio | 40% | 943.5 | 943.5 | – | – | | Expand game publishing and operations business | 20% | 471.7 | 471.7 | – | – | | Fund strategic acquisitions and investments in pan-entertainment/TMT funds | 20% | 471.7 | 225.6 | 246.1 | July 2025 to December 2026 | | Expand IP reserves and enrich content supply | 10% | 235.8 | 235.8 | – | – | | Working capital and general corporate purposes | 10% | 235.8 | 235.8 | – | – | | **Total** | **100%** | **2,358.5** | **2,112.4** | **246.1** | | - The timetable for utilizing the remaining net proceeds for strategic acquisitions and investments has been postponed to **December 2026**[51](index=51&type=chunk) [Corporate Governance and Compliance](index=16&type=section&id=公司治理与合规) This section outlines the Group's adherence to corporate governance standards, including post-reporting events, compliance with the Corporate Governance Code, directors' securities dealings, audit committee activities, share repurchases, dividend policy, and report publication [Events After Reporting Period](index=16&type=section&id=3.1%20报告期后事项) The Group had no significant events after the reporting period - The Group had no significant events after the reporting period[53](index=53&type=chunk) [Compliance with Corporate Governance Code](index=16&type=section&id=3.2%20企业管治守则遵守情况) For the six months ended June 30, 2025, the company complied with all applicable code provisions of the Corporate Governance Code, except for code provision C.2.1 (separation of roles of chairman and chief executive). Mr. Li Qing serves as both Chairman and CEO, an arrangement the Board believes benefits Group management, with an independent board composition providing effective checks and balances - The company has complied with all applicable code provisions set out in Part 2 of the Corporate Governance Code, with the exception of a deviation from code provision C.2.1 (separation of roles of chairman and chief executive)[54](index=54&type=chunk) - Mr. Li Qing serves concurrently as Chairman and Chief Executive Officer, an arrangement the Board believes benefits Group management, with an independent board composition providing effective checks and balances on his power[54](index=54&type=chunk) [Standard Securities Dealing Code for Directors](index=16&type=section&id=3.3%20董事证券交易标准守则) The company has adopted a code of conduct for directors' securities transactions, with terms no less exacting than those in the Model Code. Following inquiry, all directors confirmed compliance with the Model Code for the six months ended June 30, 2025 - The company has adopted a code of conduct for directors' securities transactions, and all directors confirmed compliance with the Model Code during the reporting period[55](index=55&type=chunk) [Audit Committee](index=17&type=section&id=3.4%20审核委员会) The company has established an Audit Committee, comprising three members with Mr. Zhu Lin as Chairman. The Audit Committee has reviewed the Group's unaudited interim condensed consolidated financial information and this results announcement for the six months ended June 30, 2025, and raised no objections to the accounting treatments - The Audit Committee comprises **three members**, with Mr. Zhu Lin as Chairman[56](index=56&type=chunk) - The Audit Committee has reviewed the Group's unaudited interim condensed consolidated financial information and this results announcement for the six months ended June 30, 2025, and raised no objections to the accounting treatments[56](index=56&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=17&type=section&id=3.5%20购买、出售或赎回上市证券) For the six months ended June 30, 2025, the company repurchased a total of 817,000 shares on the Stock Exchange for a total consideration of HKD 971,100, a move the Board believes enhances the Group's net worth and return on equity. All repurchased shares remain uncancelled. Other than this, neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities during the reporting period - The company repurchased a total of **817,000 shares** on the Stock Exchange for a total consideration of **HKD 971,100**[57](index=57&type=chunk) - The Board believes that the share repurchases can enhance the Group's net worth and improve return on equity[57](index=57&type=chunk) - As of June 30, 2025, all repurchased shares remain uncancelled[57](index=57&type=chunk) [Interim Dividend](index=17&type=section&id=3.6%20中期股息) The Board has resolved not to declare any interim dividend for the six months ended June 30, 2025 - The Board has resolved not to declare any interim dividend for the six months ended June 30, 2025[59](index=59&type=chunk) [Publication of Announcement and Report](index=17&type=section&id=3.7%20公告及报告刊发) This results announcement has been published on the company's website and the HKEX website. The company's interim report for the six months ended June 30, 2025, will be dispatched to shareholders and published on the aforementioned websites in due course - This results announcement has been published on the company's website (www.zulong.com) and the website of Hong Kong Exchanges and Clearing Limited (www.hkexnews.hk)[60](index=60&type=chunk) [Interim Condensed Consolidated Financial Statements](index=18&type=section&id=中期简明综合财务报表) This section presents the Group's interim condensed consolidated financial statements, including the statement of profit or loss, comprehensive income, financial position, and cash flows [Consolidated Statement of Profit or Loss](index=18&type=section&id=4.1%20综合损益表) For the six months ended June 30, 2025, the Group's revenue was RMB 634,366 thousand, and gross profit was RMB 452,821 thousand. Operating loss significantly narrowed to RMB 36,761 thousand, with loss for the period at RMB 11,730 thousand. Both basic and diluted loss per share were RMB 0.01 Interim Condensed Consolidated Statement of Profit or Loss (For the Six Months Ended June 30, 2025) | Indicator | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Revenue | 634,366 | 439,432 | | Cost of Revenue | (181,545) | (117,686) | | Gross Profit | 452,821 | 321,746 | | Research and Development Expenses | (265,481) | (264,104) | | Selling and Marketing Expenses | (222,313) | (172,711) | | Administrative Expenses | (44,748) | (47,009) | | Operating Loss | (36,761) | (153,969) | | Net Finance Income | 23,642 | 24,571 | | Loss Before Income Tax | (10,097) | (132,881) | | Income Tax Expense | (1,633) | (1,160) | | Loss for the Period | (11,730) | (134,041) | | Basic Loss Per Share (RMB) | (0.01) | (0.17) | | Diluted Loss Per Share (RMB) | (0.01) | (0.17) | [Consolidated Statement of Comprehensive Income](index=19&type=section&id=4.2%20综合全面收益表) For the six months ended June 30, 2025, the Group's loss for the period was RMB 11,730 thousand. Other comprehensive loss primarily included currency translation differences, resulting in a total comprehensive loss for the period of RMB 45,370 thousand, a significant narrowing from RMB 116,623 thousand in the prior year Interim Condensed Consolidated Statement of Comprehensive Income (For the Six Months Ended June 30, 2025) | Indicator | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Loss for the Period | (11,730) | (134,041) | | Other Comprehensive (Loss) / Income (Net of Tax): | | | | Items that may be reclassified to profit or loss: Currency translation differences | (2,484) | 3,145 | | Items that will not be reclassified to profit or loss: Currency translation differences | (31,156) | 14,273 | | **Total Comprehensive Loss for the Period** | **(45,370)** | **(116,623)** | [Consolidated Statement of Financial Position](index=20&type=section&id=4.3%20综合资产负债表) As of June 30, 2025, the Group's total assets were RMB 2,704,346 thousand, an increase from December 31, 2024. Right-of-use assets within non-current assets significantly increased. Among current assets, time deposits and financial assets at fair value through profit or loss increased, while cash and cash equivalents decreased. Total liabilities rose to RMB 641,315 thousand, primarily due to an increase in non-current lease liabilities Interim Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | Indicator | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | **Assets** | | | | Non-current Assets | 875,849 | 776,281 | | Current Assets | 1,828,497 | 1,822,079 | | **Total Assets** | **2,704,346** | **2,598,360** | | **Equity and Liabilities** | | | | Equity Attributable to Owners of the Company | 2,063,031 | 2,105,284 | | Non-current Liabilities | 137,339 | 26,718 | | Current Liabilities | 503,976 | 466,358 | | **Total Liabilities** | **641,315** | **493,076** | | **Total Equity and Total Liabilities** | **2,704,346** | **2,598,360** | - Right-of-use assets within non-current assets significantly increased from **RMB 18,361 thousand** to **RMB 141,304 thousand**[63](index=63&type=chunk) - Cash and cash equivalents within current assets decreased from **RMB 433,689 thousand** to **RMB 261,653 thousand**[63](index=63&type=chunk) - Non-current liabilities significantly increased from **RMB 26,718 thousand** to **RMB 137,339 thousand**, primarily due to an increase in lease liabilities[64](index=64&type=chunk) [Consolidated Statement of Cash Flows](index=22&type=section&id=4.4%20综合现金流量表) For the six months ended June 30, 2025, net cash used in operating activities was RMB 36,079 thousand, a decrease from the prior year. Investing activities shifted from net cash generated to net cash used, totaling RMB 117,721 thousand. Net cash used in financing activities was RMB 16,203 thousand. Cash and cash equivalents at period-end were RMB 261,653 thousand, a decrease from the beginning of the period Interim Condensed Consolidated Statement of Cash Flows (For the Six Months Ended June 30, 2025) | Cash Flow Activity | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (36,079) | (68,313) | | Net Cash (Used in) / Generated from Investing Activities | (117,721) | 112,712 | | Net Cash Used in Financing Activities | (16,203) | (43,549) | | Net (Decrease) / Increase in Cash and Cash Equivalents | (170,003) | 850 | | Cash and Cash Equivalents at Beginning of Period | 433,689 | 555,033 | | Exchange (Loss) / Gain on Cash and Cash Equivalents | (2,033) | 2,595 | | **Cash and Cash Equivalents at End of Period** | **261,653** | **558,478** | [Notes to the Interim Condensed Consolidated Financial Information](index=23&type=section&id=中期简明综合财务资料附注) This section provides detailed notes to the interim condensed consolidated financial information, covering general company details, accounting policies, segment and revenue breakdowns, other net gains, expense classifications, income tax specifics, loss per share calculations, dividend policy, and details on trade and other receivables and payables [General Information](index=23&type=section&id=5.1%20一般资料) Archosaur Games Inc., incorporated in the Cayman Islands, primarily develops and operates mobile games in China and other countries. Its shares have been listed on the Main Board of the Hong Kong Stock Exchange since July 15, 2020. This interim condensed consolidated financial information is presented in RMB and was approved by the Board on August 22, 2025 - The company is incorporated in the Cayman Islands, primarily engaged in mobile game development and operation in China and other countries[66](index=66&type=chunk) - The company's shares have been listed on the Main Board of the Hong Kong Stock Exchange since July 15, 2020[67](index=67&type=chunk) - The interim condensed consolidated financial information is presented in RMB and was approved by the Board on August 22, 2025[67](index=67&type=chunk) [Basis of Preparation and Accounting Policies](index=23&type=section&id=5.2%20编制基础与会计政策) This interim condensed consolidated financial information is prepared in accordance with IAS 34 "Interim Financial Reporting" and should be read in conjunction with the 2024 financial statements. The accounting policies adopted are consistent with those in the 2024 financial statements. IFRS 21 (amended) "Lack of Exchangeability" was first adopted this period with no significant impact. IFRS 18 "Presentation and Disclosure in Financial Statements" is expected to have a broad impact on presentation and disclosure for reporting periods beginning on or after January 1, 2027 - The interim condensed consolidated financial information is prepared in accordance with IAS 34 "Interim Financial Reporting"[69](index=69&type=chunk) - The accounting policies adopted are consistent with those set out in the 2024 financial statements[71](index=71&type=chunk) - IFRS 18 "Presentation and Disclosure in Financial Statements" is expected to have a broad impact on presentation and disclosure for reporting periods beginning on or after January 1, 2027[74](index=74&type=chunk) [Segment Information and Revenue Details](index=25&type=section&id=5.3%20分部资料及收益详情) The Group operates and manages its business as a single segment, thus no segment information is presented. For the six months ended June 30, 2025, total online game revenue was RMB 634,366 thousand, with integrated game publishing and operations revenue accounting for the majority. Revenue recognition occurs both at a point in time and over time. Mainland China contributed RMB 511,688 thousand in revenue, accounting for 80.7%. Contract liabilities primarily include unamortized revenue from in-game virtual item sales and non-refundable fixed license fees - The Group's business is operated and managed as a single segment, thus no segment information is presented[77](index=77&type=chunk) Online Game Revenue Breakdown (For the Six Months Ended June 30, 2025) | Revenue Source | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Development and Licensing - Revenue Sharing | 51,648 | 57,478 | | Development and Licensing - Non-refundable Fixed License Fees | 3,498 | 4,537 | | Integrated Game Publishing and Operations | 579,036 | 376,527 | | Others | 184 | 890 | | **Total** | **634,366** | **439,432** | Revenue by Geographical Location (For the Six Months Ended June 30, 2025) | Geographical Location | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Mainland China | 511,688 | 303,983 | | Outside Mainland China | 122,678 | 135,449 | | **Total** | **634,366** | **439,432** | - Contract liabilities primarily refer to unamortized revenue from in-game virtual item sales, non-refundable fixed license fees, and revenue sharing received in advance from customers[83](index=83&type=chunk) [Details of Other Net Gains](index=27&type=section&id=5.4%20其他收益净额详情) For the six months ended June 30, 2025, other net gains totaled RMB 39,257 thousand, primarily comprising net foreign exchange gains of RMB 26,635 thousand and gains from financial assets at fair value through profit or loss of RMB 11,789 thousand Breakdown of Other Net Gains (For the Six Months Ended June 30, 2025) | Revenue Source | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Gains from Financial Assets at Fair Value Through Profit or Loss | 11,789 | 10,784 | | Net Foreign Exchange Gains / (Losses) | 26,635 | (9,597) | | Others | 833 | 2,617 | | **Total** | **39,257** | **3,804** | [Expenses by Nature](index=28&type=section&id=5.5%20费用按性质分类) For the six months ended June 30, 2025, the Group's total expenses were RMB 714,422 thousand, primarily comprising employee benefits expenses (RMB 276,378 thousand), promotion and advertising expenses (RMB 186,676 thousand), and commissions to distribution and payment channels (RMB 135,196 thousand) Expenses by Nature (For the Six Months Ended June 30, 2025) | Expense Nature | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Employee Benefits Expenses | 276,378 | 274,568 | | Promotion and Advertising Expenses | 186,676 | 144,971 | | Commissions to Distribution and Payment Channels | 135,196 | 86,444 | | Outsourcing Technical Services | 34,735 | 29,949 | | Depreciation and Amortization Expenses | 26,748 | 25,438 | | Commissions to IP Holders | 19,872 | 9,600 | | Bandwidth and Server Hosting Fees | 13,351 | 11,820 | | Utilities and Office Expenses | 9,343 | 8,401 | | Other Professional Consulting Fees | 2,672 | 2,409 | | VAT Input Transfer Out and Surcharges | 2,174 | 2,340 | | Travel Expenses | 1,832 | 2,297 | | Auditor's Remuneration | 1,023 | 1,000 | | Net Impairment Loss / (Reversal) on Financial Assets | 335 | (2,555) | | Others | 4,087 | 2,273 | | **Total** | **714,422** | **598,955** | [Details of Income Tax Expense](index=28&type=section&id=5.6%20所得税开支详情) For the six months ended June 30, 2025, total income tax expense was RMB 1,633 thousand, including current income tax expense of RMB 591 thousand and deferred income tax expense of RMB 1,042 thousand. Several of the Group's subsidiaries in mainland China enjoy preferential income tax rates as high-tech enterprises or small and micro enterprises, with some western region companies also benefiting from a 15% preferential rate. Additionally, companies engaged in R&D activities are entitled to a 200% super deduction for R&D expenses Income Tax Expense Analysis (For the Six Months Ended June 30, 2025) | Income Tax Type | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Current Income Tax Expense | 591 | 1,327 | | Deferred Income Tax Expense / (Credit) | 1,042 | (167) | | **Total** | **1,633** | **1,160** | - Tianjin Zulong, Beijing Fantasy Mermaid, and other companies are recognized as high-tech enterprises, enjoying a **15%** preferential income tax rate[89](index=89&type=chunk)[90](index=90&type=chunk) - Shanghai Zuyun and other companies are recognized as small and micro enterprises, with **25%** of their assessable profits subject to a **20%** preferential corporate income tax rate[90](index=90&type=chunk) - Enterprises engaged in R&D activities are entitled to claim a **200%** super deduction for their R&D expenses when determining assessable profits[91](index=91&type=chunk) [Loss Per Share](index=30&type=section&id=5.7%20每股亏损) For the six months ended June 30, 2025, loss attributable to owners of the company was RMB 11,730 thousand. Basic loss per share was RMB 0.01. As the Group incurred a loss during the relevant period, potential dilutive ordinary shares (restricted share units and share options) had an anti-dilutive effect on diluted loss per share, thus diluted loss per share was the same as basic loss per share Loss Per Share Calculation (For the Six Months Ended June 30, 2025) | Indicator | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Loss Attributable to Owners of the Company (RMB Thousand) | (11,730) | (134,041) | | Weighted Average Number of Ordinary Shares in Issue (Thousand Shares) | 784,921 | 786,169 | | **Basic Loss Per Share (RMB per share)** | **(0.01)** | **(0.17)** | - As the Group incurred a loss during the relevant period, restricted share units and share options had an anti-dilutive effect on the calculation of diluted loss per share, thus diluted loss per share was the same as basic loss per share[94](index=94&type=chunk) [Dividend Policy](index=30&type=section&id=5.8%20股息政策) The company did not declare or pay any dividends for the six months ended June 30, 2025, or 2024 - The company did not declare or pay any dividends for the six months ended June 30, 2025, or 2024[95](index=95&type=chunk) [Trade Receivables](index=31&type=section&id=5.9%20应收账款) As of June 30, 2025, net trade receivables were RMB 128,594 thousand, an increase from December 31, 2024, with third-party receivables accounting for the largest portion. Trade receivables are primarily denominated in RMB and USD, with credit terms ranging from 90 to 150 days, and most receivables aged within 3 months. Impairment provision for trade receivables was RMB 15,372 thousand Net Trade Receivables (As of June 30, 2025) | Indicator | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Trade Receivables | 143,966 | 134,377 | | Less: Impairment Provision for Trade Receivables | (15,372) | (14,354) | | **Net Trade Receivables** | **128,594** | **120,023** | Gross Carrying Amount of Trade Receivables by Customer Type (As of June 30, 2025) | Customer Type | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Related Parties | 25,711 | 24,130 | | Third Parties | 118,255 | 110,247 | | **Total** | **143,966** | **134,377** | - The Group grants credit terms ranging from **90 to 150 days** to its customers, with most trade receivables aged within **3 months**[97](index=97&type=chunk) [Trade and Other Payables](index=33&type=section&id=5.10%20应付账款及其他应付款项) As of June 30, 2025, total trade and other payables were RMB 185,017 thousand, a decrease from December 31, 2024, including trade payables of RMB 135,899 thousand and payroll liabilities of RMB 38,699 thousand. Most trade payables were aged within 6 months Trade and Other Payables (As of June 30, 2025) | Indicator | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Trade Payables | 135,899 | 102,117 | | Payroll Liabilities | 38,699 | 60,731 | | Taxes Payable | 4,281 | 16,259 | | Others | 6,138 | 13,776 | | **Total** | **185,017** | **192,883** | - An aging analysis of trade payables by recognition date shows that the majority (**RMB 110,925 thousand**) are aged within **6 months**[99](index=99&type=chunk) [Definitions](index=34&type=section&id=释义) This section provides a glossary of key terms and abbreviations used throughout the report to ensure clarity and consistent understanding of the content [Glossary of Terms](index=34&type=section&id=6.1%20词汇定义) This section provides definitions for key terms and abbreviations used in the report, including company name, Board, Corporate Governance Code, Global Offering, Group, HKD, Hong Kong, IFRS, Listing, Listing Date, Listing Rules, MMORPG, Model Code, PRC, Pre-IPO RSU Scheme, Prospectus, Reporting Period, RMB, RSU Scheme, Share Option Scheme, Shares, Shareholders, SLG, Stock Exchange, Subsidiaries, Unreal Engine 4 and Unreal Engine 5, USD, and percentage symbol - This section provides definitions for key terms and abbreviations used in the report to ensure readers' understanding of the content[100](index=100&type=chunk)[101](index=101&type=chunk)[102](index=102&type=chunk)

Company Information and Financial Highlights [Company Overview](index=1&type=section&id=%E5%85%AC%E5%8F%B8%E6%A6%82%E5%86%B5) This report presents Star CM Holdings Limited's unaudited interim results announcement for the six months ended June 30, 2025, reviewed by the Board's audit committee - This announcement is the unaudited interim results report of Star CM Holdings Limited for the six months ended June 30, 2025[2](index=2&type=chunk)[3](index=3&type=chunk) [Financial Performance Summary](index=1&type=section&id=%E8%B4%A2%E5%8A%A1%E4%B8%9A%E7%BB%A9%E6%91%98%E8%A6%81) For the six months ended June 30, 2025, the company's revenue decreased by 17.0% year-on-year, while gross profit significantly increased by 233.3%, and both loss before tax and loss for the period substantially narrowed As at 30 June 2025 Key Financial Indicators | Item | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 59.0 | 71.1 | (17.0%) | | Gross Profit | 22.0 | 6.6 | 233.3% | | Loss Before Tax | (10.4) | (55.3) | (81.2%) | | Loss for the Period | (11.1) | (56.0) | (80.2%) | [Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=%E6%9C%AA%E7%BB%8F%E5%AE%A1%E9%98%85%E4%B8%AD%E6%9C%9F%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E6%8D%9F%E7%9B%8A%E8%A1%A8) During the reporting period, the company's revenue was RMB 59,035 thousand, with a substantial decrease in cost of sales leading to a significant increase in gross profit to RMB 21,970 thousand; despite increased losses from associates, a significant reduction in administrative expenses and fair value gains on financial assets narrowed the loss for the period to RMB 11,149 thousand Unaudited Condensed Interim Consolidated Statement of Profit or Loss (For the six months ended 30 June) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 59,035 | 71,113 | | Cost of Sales | (37,065) | (64,521) | | Gross Profit | 21,970 | 6,592 | | Other Income and Gains | 8,373 | 8,270 | | Selling and Distribution Expenses | (8,338) | (7,817) | | Administrative Expenses | (21,705) | (42,504) | | Net Reversal of Impairment Loss on Trade Receivables | 1,403 | 3,572 | | (Impairment Loss) / Reversal of Impairment Loss on Other Receivables | (259) | 634 | | Reversal of Impairment Loss on Loans to a Joint Venture and an Associate | 1,838 | – | | Other Expenses | (2,651) | (387) | | Fair Value Changes of Financial Assets at Fair Value Through Profit or Loss | 12,878 | (5,594) | | Finance Costs | (113) | (221) | | Share of Loss of Joint Ventures | (8,478) | (14,873) | | Share of Loss of Associates | (15,316) | (3,012) | | Loss Before Tax | (10,398) | (55,340) | | Income Tax Expense | (751) | (635) | | Loss for the Period | (11,149) | (55,975) | | Loss Per Share Attributable to Ordinary Equity Holders of the Parent (Basic and Diluted) | (0.03) | (0.14) | [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=%E6%9C%AA%E7%BB%8F%E5%AE%A1%E9%98%85%E4%B8%AD%E6%9C%9F%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the company's total comprehensive loss for the period significantly narrowed to RMB 12,530 thousand from RMB 53,399 thousand in the prior year, primarily due to reduced loss for the period, despite exchange differences turning from gain to loss Unaudited Condensed Interim Consolidated Statement of Comprehensive Income (For the six months ended 30 June) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Loss for the Period | (11,149) | (55,975) | | Exchange Differences Arising from Translation of Foreign Operations | (1,381) | 2,576 | | Total Comprehensive Loss for the Period | (12,530) | (53,399) | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E6%9C%AA%E7%BB%8F%E5%AE%A1%E9%98%85%E4%B8%AD%E6%9C%9F%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 less current liabilities were RMB 2,660,553 thousand, a slight decrease from year-end 2024, with a minor reduction in total non-current assets and an increase in net current assets Unaudited Condensed Interim Consolidated Statement of Financial Position (As at 30 June 2025) | Item | As at 30 June 2025 (RMB thousand) | As at 31 December 2024 (RMB thousand) | | :--- | :--- | :--- | | **NON-CURRENT ASSETS** | | | | Total non-current assets | 2,132,442 | 2,187,533 | | **CURRENT ASSETS** | | | | Total current assets | 700,164 | 711,323 | | **CURRENT LIABILITIES** | | | | Total current liabilities | 172,053 | 225,800 | | Net current assets | 528,111 | 485,523 | | Total assets less current liabilities | 2,660,553 | 2,673,056 | | **NON-CURRENT LIABILITIES** | | | | Total non-current liabilities | 25,254 | 25,408 | | Net assets | 2,635,299 | 2,647,648 | | Total equity | 2,635,299 | 2,647,648 | Notes to the Condensed Interim Consolidated Financial Information [Company and Group Information](index=6&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) The company, incorporated in the Cayman Islands and listed on the Hong Kong Stock Exchange in December 2022, primarily engages in the production, operation, and licensing of variety show, music, drama series, and film IPs, along with other IP-related businesses, with CMC Inc. as the ultimate controlling shareholder - The company was incorporated in the Cayman Islands on March 29, 2021, and listed on the Main Board of the Hong Kong Stock Exchange on December 29, 2022[9](index=9&type=chunk)[10](index=10&type=chunk) - The company's business primarily covers the production, operation, and licensing of variety show IP, music IP, drama series and film IP, as well as other IP-related businesses[10](index=10&type=chunk) [Basis of Preparation and Changes in Accounting Policies](index=6&type=section&id=2.%20%E7%BC%96%E5%88%B6%E5%9F%BA%E5%87%86%3B%203.%20%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96%E7%9A%84%E5%8F%98%E5%8A%A8) The interim financial statements are prepared in accordance with HKEX Listing Rules, IFRS, and IAS 34, consistent with annual financial statements, with no material impact from the first-time application of IAS 21 (Revised) this period - The financial statements are prepared in accordance with the HKEX Listing Rules, International Financial Reporting Standards, and International Accounting Standard 34 'Interim Financial Reporting'[11](index=11&type=chunk) - This period marks the first application of IAS 21 (Revised) 'Lack of Exchangeability', with no material impact on financial position or performance[12](index=12&type=chunk) [Operating Segment and Geographical Information](index=7&type=section&id=4.%20%E7%BB%8F%E8%90%A5%E5%88%86%E9%83%A8%E8%B5%84%E6%96%99) The company's management considers the Group as a single reportable operating segment, with revenue primarily from Mainland China but increasing from other regions, and non-current assets mainly concentrated in Mainland China and Hong Kong - Management considers the Group as a single reportable operating segment[13](index=13&type=chunk) Regional Revenue Distribution (For the six months ended 30 June) | Region | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Mainland China | 36,788 | 54,674 | | Other Regions | 22,247 | 16,439 | | **Total** | **59,035** | **71,113** | Regional Non-current Assets Distribution (As at 30 June 2025) | Region | As at 30 June 2025 (RMB thousand) | As at 31 December 2024 (RMB thousand) | | :--- | :--- | :--- | | Mainland China | 1,635,118 | 1,610,638 | | Hong Kong | 367,542 | 422,081 | | **Total** | **2,002,660** | **2,032,719** | [Revenue Analysis](index=7&type=section&id=5.%20%E6%94%B6%E5%85%A5) Total revenue for the reporting period was RMB 59,035 thousand, a year-on-year decrease, with significant growth in drama series and film IP operation and licensing revenue, while variety show IP, music IP, and other IP-related business revenues all declined Revenue by Type of Goods or Services (For the six months ended 30 June) | Type of Goods or Services | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Variety Show IP Production, Operation and Licensing | 13,557 | 25,453 | | Music IP Operation and Licensing | 6,444 | 7,566 | | Drama Series and Film IP Operation and Licensing | 25,434 | 16,393 | | Other IP-related Businesses | 13,600 | 21,701 | | **Total Revenue from Contracts with Customers** | **59,035** | **71,113** | Timing of Revenue Recognition (For the six months ended 30 June) | Timing of Revenue Recognition | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | At a point in time | 28,751 | 41,805 | | Over time | 30,284 | 29,308 | [Loss Before Tax and Income Tax](index=9&type=section&id=6.%20%E9%99%A4%E7%A8%8E%E5%89%8D%E4%BA%8F%E6%8D%9F%3B%207.%20%E6%89%80%E5%BE%97%E7%A8%8E) Loss before tax significantly narrowed, primarily due to a substantial decrease in variety show IP costs and reversal of impairment losses; income tax expense remained relatively stable, mainly comprising tax rates from Mainland China, Hong Kong, and Macau, with Shanghai Canxing Culture Media Co., Ltd. benefiting from a high-tech enterprise preferential tax rate Components of Loss Before Tax (For the six months ended 30 June) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Variety Show IP Production, Operation and Licensing Cost | 10,422 | 35,934 | | Drama Series and Film IP Operation and Licensing Cost | 10,162 | 6,211 | | Net Reversal of Impairment Loss on Trade Receivables | (1,403) | (3,572) | | Reversal of Impairment Loss on Loans to a Joint Venture and an Associate | (1,838) | – | - Shanghai Canxing Culture Media Co., Ltd., as a high-tech enterprise, enjoys a preferential income tax rate of **15%**, valid until December 12, 2026[21](index=21&type=chunk) Major Components of Income Tax Expense (For the six months ended 30 June) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Current - Expense for the period | 72 | 611 | | Over-provision in prior years | 2,809 | – | | Deferred tax | (2,130) | 24 | | **Income Tax Expense** | **751** | **635** | [Dividends and Loss Per Share](index=10&type=section&id=8.%20%E8%82%A1%E6%81%AF%3B%209.%20%E6%AF%8F%E8%82%A1%E4%BA%8F%E6%8D%9F) The Board did not declare any interim dividend for the six months ended June 30, 2025, and basic and diluted loss per share significantly narrowed to RMB 0.03 from RMB 0.14 in the prior year - The Board did not declare any interim dividend for the six months ended June 30, 2025[23](index=23&type=chunk) Loss Per Share (For the six months ended 30 June) | Item | 2025 (RMB) | 2024 (RMB) | | :--- | :--- | :--- | | Loss Per Share Attributable to Ordinary Equity Holders of the Parent (Basic and Diluted) | (0.03) | (0.14) | [Trade Receivables and Trade Payables](index=10&type=section&id=10.%20%E8%B4%B8%E6%98%93%E5%BA%94%E6%94%B6%E6%AC%BE%E9%A1%B9%3B%2011.%20%E8%B4%B8%E6%98%93%E5%BA%94%E4%BB%98%E6%AC%BE%E9%A1%B9) Total trade receivables amounted to RMB 68,994 thousand, a 30.3% decrease from year-end 2024, primarily due to reduced revenue; total trade payables were RMB 101,935 thousand, a 13.0% decrease from year-end 2024, consistent with the reduction in cost of sales Trade Receivables (As at 30 June 2025) | Item | As at 30 June 2025 (RMB thousand) | As at 31 December 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Receivables | 399,124 | 434,344 | | Less: Impairment Loss | (330,130) | (335,387) | | **Total** | **68,994** | **98,957** | - Trade receivables typically have a credit period of **30 days** and are subject to maximum credit limits[25](index=25&type=chunk) Trade Payables (As at 30 June 2025) | Ageing | As at 30 June 2025 (RMB thousand) | As at 31 December 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 1 year | 18,158 | 47,663 | | 1 to 2 years | 17,624 | 45,191 | | 2 to 3 years | 43,354 | 14,180 | | Over 3 years | 22,799 | 10,083 | | **Total** | **101,935** | **117,117** | - Trade payables are non-interest bearing and usually settled on credit terms of **90 to 180 days**[27](index=27&type=chunk) [Provisions and Commitments](index=12&type=section&id=12.%20%E6%8B%A8%E5%A4%87%3B%2013.%20%E6%89%BF%E6%94%94) As of June 30, 2025, total provisions significantly decreased by 81.4% to RMB 6,623 thousand, mainly due to the payment of litigation provisions; the Group's contractual commitments primarily relate to leased land and construction in progress, totaling RMB 800,431 thousand Movement in Provisions (For the six months ended 30 June 2025) | Item | As at 1 January 2025 (RMB thousand) | Additional provisions made (RMB thousand) | Provisions utilised (RMB thousand) | As at 30 June 2025 (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | MBC - 'Masked Singer 2016' | 24,371 | – | (24,371) | – | | Entity A | 1,435 | – | – | 1,435 | | Entity B | 4,257 | – | (4,257) | – | | Entity C | 4,165 | – | – | 4,165 | | Others | 1,195 | – | (172) | 1,023 | | **Total** | **35,423** | **–** | **(28,800)** | **6,623** | Contractual Commitments (As at 30 June 2025) | Item | As at 30 June 2025 (RMB thousand) | As at 31 December 2024 (RMB thousand) | | :--- | :--- | :--- | | Leased land and construction in progress | 800,431 | 799,903 | Management Discussion and Analysis [Business Review and Prospects](index=13&type=section&id=%E4%B8%9A%E5%8A%A1%E6%A6%82%E8%A7%88%E5%8F%8A%E5%89%8D%E6%99%AF) The company is dedicated to IP creation, operation, and licensing across variety shows, music, drama series, and films, aiming to enhance IP creation capabilities, expand audience reach, accelerate business expansion through M&A, and continuously attract and build talent teams - The company actively participated in directing and post-production services for variety shows such as 'The Most Beautiful Central Axis', 'Asia New Voice', and 'Speed Racer'[30](index=30&type=chunk) - The company, in collaboration with iQIYI and Hainan Happy Time Film Co., Ltd., launched the '100 Hong Kong Film Micro-Drama Project', selecting **100 classic Hong Kong film IPs** for in-depth micro-drama adaptation[30](index=30&type=chunk) - Future development initiatives include strengthening IP creation and operation capabilities (e.g., micro-drama secondary creation), expanding audience reach and brand influence (e.g., overseas market expansion), growing business through M&A, and continuously attracting and building talent teams[36](index=36&type=chunk)[37](index=37&type=chunk) [Variety Show IP Production, Operation and Licensing](index=13&type=section&id=%E7%BB%BC%E8%89%BA%E8%8A%82%E7%9B%AEIP%E5%88%B6%E4%BD%9C%E3%80%81%E8%BF%90%E8%90%A5%E5%8F%8A%E6%8E%88%E6%9D%83) During the reporting period, the company participated in the production of variety shows like 'The Most Beautiful Central Axis', 'Asia New Voice', and 'Speed Racer', and collaborated with iQIYI on a '100 Hong Kong Film Micro-Drama Project', though this business's financial performance is subject to various fluctuating factors - Participated in directing and post-production for variety shows such as 'The Most Beautiful Central Axis', 'Asia New Voice', and 'Speed Racer'[30](index=30&type=chunk) - Launched the '100 Hong Kong Film Micro-Drama Project', selecting **100 classic Hong Kong film IPs** for in-depth micro-drama adaptation[30](index=30&type=chunk) - Revenue, gross profit, and gross profit margin of the variety show IP business are influenced by various factors such as cooperation models, negotiations with investing media platforms, economic environment, and audience preferences, leading to potential fluctuations in financial performance[31](index=31&type=chunk) [Music IP Operation and Licensing](index=13&type=section&id=%E9%9F%B3%E4%B9%90IP%E8%BF%90%E8%90%A5%E5%8F%8A%E6%8E%88%E6%9D%83) As of June 30, 2025, the company's music library holds 9,835 IPs, comprising live music recordings, songs by contracted artists, and lyrical music works - As of June 30, 2025, the company's music library holds **9,835 IPs**, including **3,765 live music recordings**, **3,754 songs by contracted artists**, and **2,316 lyrical and musical works**[32](index=32&type=chunk) [Film and Drama Series IP Operation and Licensing](index=13&type=section&id=%E7%94%B5%E5%BD%B1%E5%8F%8A%E5%89%A7%E9%9B%86IP%E8%BF%90%E8%90%A5%E5%8F%8A%E6%8E%88%E6%9D%83) As of June 30, 2025, the company owns 757 Chinese film IPs and one drama series 'Reading Class', primarily generating fixed licensing fees by authorizing the re-broadcast of film IPs to domestic and international TV and online video platforms - As of June 30, 2025, the company owns **757 Chinese film IPs** and one drama series, 'Reading Class'[33](index=33&type=chunk) - Fixed licensing fees are primarily generated by authorizing the re-broadcast of film IPs to domestic and international television media platforms and online video platforms[34](index=34&type=chunk) [Other IP-related Businesses](index=14&type=section&id=%E5%85%B6%E4%BB%96IP%E7%9B%B8%E5%85%B3%E4%B8%9A%E5%8A%A1) Other IP-related businesses include artist management, concert organization and production, art education and training, mobile applications, derivative consumer products, and live experience venues, with 69 contracted artists as of June 30, 2025 - Other IP-related businesses include artist management, concert organization and production, art education and training, mobile applications, derivative consumer products, and live experience venues[35](index=35&type=chunk) - As of June 30, 2025, the company has **69 contracted artists**[35](index=35&type=chunk) [Prospects and Future Development](index=14&type=section&id=%E5%89%8D%E6%99%AF%E5%8F%8A%E6%9C%AA%E6%9D%A5%E5%8F%91%E5%B1%95) The company is committed to strengthening IP creation and operation capabilities (including micro-drama secondary creation), expanding audience reach and brand influence (including overseas market expansion), integrating quality industry resources through M&A, and continuously attracting and building talent teams to adapt to market demands and accelerate business expansion - The company will continue to operate its music and film IP libraries, enhance content production capabilities, enrich IP types and themes, and actively engage in micro-drama secondary creation to revitalize old film IP value[37](index=37&type=chunk) - Plans include expanding audience reach and brand influence by increasing cooperation platforms, offering live experiences, and boosting overseas market investment[37](index=37&type=chunk) - The company will closely monitor and evaluate high-quality M&A targets that complement its business and align with its strategy to integrate upstream and downstream resources in the entertainment market value chain[37](index=37&type=chunk) - Plans involve attracting top talent in IP production, operation, and management by improving talent acquisition and retention systems[37](index=37&type=chunk) [Financial Review](index=15&type=section&id=%E8%B4%A2%E5%8A%A1%E5%9B%9E%E9%A1%A7) During the reporting period, the company's revenue decreased, but gross profit significantly increased, and net loss substantially narrowed; this was primarily due to the variety show IP production business turning to gross profit and reduced administrative expenses, with film and drama series IP business revenue and gross profit growing, while other IP businesses declined - For the six months ended June 30, 2025, the company reported revenue RMB **59.0 million**, gross profit RMB **22.0 million**, and a net loss RMB **11.1 million**, a significant reduction from RMB **56.0 million** in the prior year[38](index=38&type=chunk) - The reduction in net loss is primarily attributable to the variety show IP production, operation, and licensing business turning to gross profit, and a significant decrease in administrative expenses[38](index=38&type=chunk) [Overview](index=15&type=section&id=%E6%A6%82%E8%A7%88) For the six months ended June 30, 2025, the company reported revenue of RMB 59.0 million, gross profit of RMB 22.0 million, and a net loss of RMB 11.1 million, a significant 80.2% reduction from RMB 56.0 million in the prior year Financial Overview (For the six months ended 30 June) | Item | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 59.0 | 71.1 | (17.0%) | | Gross Profit | 22.0 | 6.6 | 233.3% | | Net Loss | (11.1) | (56.0) | (80.2%) | - The reduction in net loss is primarily attributable to the variety show IP production, operation, and licensing business turning to gross profit, and a significant decrease in administrative expenses[38](index=38&type=chunk) [Revenue by Business Segment](index=15&type=section&id=%E6%8C%89%E4%B8%9A%E5%8A%A1%E5%88%86%E9%83%A8%E5%8A%83%E5%88%86%E7%9A%84%E6%94%B6%E5%85%A5) During the reporting period, revenue from variety show IP, music IP, and other IP-related businesses decreased, while film and drama series IP operation and licensing revenue significantly grew by 54.9%, becoming a key growth driver Revenue by Business Segment (For the six months ended 30 June) | Business Segment | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Variety Show IP Production, Operation and Licensing | 13.6 | 25.5 | (46.7%) | | Music IP Operation and Licensing | 6.4 | 7.6 | (15.8%) | | Film and Drama Series IP Operation and Licensing | 25.4 | 16.4 | 54.9% | | Other IP-related Businesses | 13.6 | 21.6 | (37.0%) | | **Total** | **59.0** | **71.1** | (17.0%) | - Variety show IP revenue decreased by **46.7%**, mainly due to a reduction in the scale of variety shows[40](index=40&type=chunk) - Film and drama series IP revenue increased by **54.9%**, primarily due to higher film IP licensing revenue[42](index=42&type=chunk) - Other IP-related business revenue decreased by **37.0%**, mainly due to a decline in commercial performance revenue resulting from fewer contracted artists[43](index=43&type=chunk) [Cost of Sales](index=16&type=section&id=%E9%94%80%E5%94%AE%E6%88%90%E6%9C%AC) Total cost of sales decreased by 42.6% from RMB 64.5 million in the prior year to RMB 37.0 million in 2025; variety show IP production costs significantly dropped by 71.0%, consistent with revenue decline, while film and drama series IP costs increased with revenue growth Cost of Sales by Business Segment (For the six months ended 30 June) | Business Segment | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Variety Show IP Production, Operation and Licensing | 10.4 | 35.9 | (71.0%) | | Music IP Operation and Licensing | 3.4 | 3.7 | (8.1%) | | Film and Drama Series IP Operation and Licensing | 10.2 | 6.2 | 64.5% | | Other IP-related Businesses | 13.0 | 18.7 | (30.5%) | | **Total** | **37.0** | **64.5** | (42.6%) | - Cost of sales for variety show IP production, operation, and licensing decreased by **71.0%**, consistent with the revenue decline due to reduced variety show scale[45](index=45&type=chunk) - Cost of sales for film and drama series IP operation and licensing increased by **64.5%**, consistent with the revenue growth in this business segment[47](index=47&type=chunk) [Gross Profit (Loss) and Gross Profit (Loss) Margin](index=17&type=section&id=%E6%AF%9B%EF%BC%88%E8%99%A7%EF%BC%89%E2%97%90%E5%88%A9%E5%8F%8A%E6%AF%9B%EF%BC%88%E8%99%A7%EF%BC%89%E2%97%90%E5%88%A9%E7%8E%87) During the reporting period, the company's total gross profit significantly increased by 233.3% to RMB 22.0 million, with gross profit margin rising to 37.3%; variety show IP business turned from gross loss to gross profit with a 23.5% margin, mainly due to a shift towards director teams and post-production, while film and drama series IP gross profit grew by 49.0% but its margin slightly decreased Gross Profit and Gross Profit Margin by Business Segment (For the six months ended 30 June) | Business Segment | 2025 Gross Profit (RMB million) | 2025 Gross Profit Margin (%) | 2024 Gross Profit (RMB million) | 2024 Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | :--- | | Variety Show IP Production, Operation and Licensing | 3.2 | 23.5% | (10.4) | (40.8%) | | Music IP Operation and Licensing | 3.0 | 46.9% | 3.9 | 51.3% | | Film and Drama Series IP Operation and Licensing | 15.2 | 59.8% | 10.2 | 62.2% | | Other IP-related Businesses | 0.6 | 4.4% | 2.9 | 13.4% | | **Total** | **22.0** | **37.3%** | **6.6** | **9.3%** | - The variety show IP production, operation, and licensing business turned from a gross loss of **RMB 10.4 million** in the prior year to a gross profit of **RMB 3.2 million**, with a gross profit margin of **23.5%**, mainly due to a shift in focus to director teams and post-production[52](index=52&type=chunk) - Gross profit from film and drama series IP operation and licensing increased by **49.0%** to **RMB 15.2 million**, consistent with revenue growth, but the gross profit margin slightly decreased to **59.8%**[54](index=54&type=chunk) [Other Income and Expenses](index=19&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A%3B%20%E9%94%80%E5%94%AE%E5%8F%8A%E5%88%86%E9%94%80%E5%BC%80%E6%94%AF%3B%20%E8%A1%8C%E6%94%BF%E5%BC%80%E6%94%AF%3B%20%E9%87%91%E8%9E%8D%E8%B5%84%E4%BA%A7%E5%87%8F%E5%80%BC%E4%BA%8F%E6%8D%9F%E6%8B%A8%E5%9B%9E%E5%87%80%E9%A2%9D%3B%20%E6%8C%89%E5%85%AC%E5%B9%B3%E5%80%BC%E8%AE%A1%E5%85%A5%E6%8D%9F%E7%9B%8A%E7%9A%84%E9%87%91%E8%9E%8D%E8%B5%84%E4%BA%A7%E7%9A%84%E5%85%AC%E5%B9%B3%E5%80%BC%E5%A2%9E%E5%8A%A0%3B%20%E5%85%B6%E4%BB%96%E5%BC%80%E6%94%AF%3B%20%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) Other income and gains remained stable; administrative expenses significantly decreased by 48.9%, primarily due to reduced professional service fees, depreciation, and R&D expenses; fair value changes of financial assets turned from loss to gain, while other expenses notably increased due to higher late payment fees and exchange losses - Other income and gains remained relatively stable at **RMB 8.3 million** (2024) and **RMB 8.4 million** (2025) respectively[56](index=56&type=chunk) - Administrative expenses decreased by **48.9%** to **RMB 21.7 million**, primarily due to reduced professional service fees, depreciation of right-of-use assets and property, plant and equipment, and R&D expenses[58](index=58&type=chunk) - Fair value changes of financial assets at fair value through profit or loss turned from a loss of **RMB 5.6 million** to a gain of **RMB 12.9 million**, mainly influenced by fluctuations in listed company share prices[60](index=60&type=chunk) - Other expenses increased by **575.0%** to **RMB 2.7 million**, primarily due to higher late payment fees and exchange losses[61](index=61&type=chunk) [Share of Profits and Losses of Joint Ventures and Associates](index=20&type=section&id=%E5%BA%94%E4%BD%97%E5%90%88%E8%90%A5%E4%BC%81%E4%B8%9A%E5%8F%8A%E8%81%94%E8%90%A5%E5%85%AC%E5%8F%B8%E7%9A%84%E6%BA%A2%E5%88%A9%E5%8F%8A%E4%BA%8F%E6%8D%9F) During the reporting period, share of loss of joint ventures decreased, mainly due to reduced operating losses from Mengxiang Qian; however, share of loss of associates increased, primarily due to higher operating losses from Shaanxi Shuolan and Shaanxi Yuanlv - Share of loss of joint ventures decreased from **RMB 14.9 million** to **RMB 8.5 million**, mainly due to reduced operating losses from Mengxiang Qian[63](index=63&type=chunk) - Share of loss of associates increased from **RMB 3.0 million** to **RMB 15.3 million**, primarily due to higher operating losses from Shaanxi Shuolan and Shaanxi Yuanlv[63](index=63&type=chunk) [Loss for the Period](index=20&type=section&id=%E6%9C%9F%E5%86%85%E4%BA%8F%E6%8D%9F) Considering the aforementioned factors, the company's net loss for the period significantly narrowed to RMB 11.1 million, compared to RMB 56.0 million in the prior year - For the six months ended June 30, 2025, the company's net loss was **RMB 11.1 million**, a significant reduction from **RMB 56.0 million** in the prior year[65](index=65&type=chunk) [Financial Position](index=20&type=section&id=%E8%B4%A2%E5%8A%A1%E7%8A%B6%E5%86%B5) As of June 30, 2025, the company's financial position remained relatively stable; interests in associates within non-current assets slightly decreased, while cash and cash equivalents in current assets increased; on the liabilities side, both trade receivables and payables decreased, provisions significantly declined, and contract liabilities increased - Items such as property, plant and equipment, goodwill, programme copyrights, prepayments, other receivables and other assets, and lease liabilities remained relatively stable[66](index=66&type=chunk)[67](index=67&type=chunk)[79](index=79&type=chunk)[81](index=81&type=chunk)[86](index=86&type=chunk) [Non-current Assets](index=20&type=section&id=%E7%89%A9%E6%A5%AD%E3%80%81%E5%8E%82%E6%88%BF%E5%8F%8A%E8%AE%BE%E5%A4%87%3B%20%E5%95%86%E8%AA%89%3B%20%E6%96%BC%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E7%9A%84%E6%AC%8A%E7%9B%8A%3B%20%E6%96%BC%E5%90%88%E7%87%9F%E4%BC%81%E6%A5%AD%E7%9A%84%E6%AC%8A%E7%9B%8A%3B%20%E5%85%B6%E4%BB%96%E7%84%A1%E5%BD%A2%E8%B5%84%E4%BA%A7%3B%20%E6%8C%89%E5%85%AC%E5%B9%B3%E5%80%BC%E8%A8%88%E5%85%A5%E6%90%8D%E7%9B%8A%E7%9A%84%E9%87%91%E8%9E%8D%E8%B3%87%E7%94%A2) Interests in associates slightly decreased by 1.9% to RMB 849.4 million, primarily due to increased operating losses from associates; interests in joint ventures remained stable; other intangible assets decreased due to amortization of film IP licenses; financial assets at fair value through profit or loss increased by 24.4%, mainly influenced by listed company share price fluctuations Goodwill Carrying Amount (As at 30 June 2025) | Cash-generating unit | As at 30 June 2025 (RMB million) | As at 31 December 2024 (RMB million) | | :--- | :--- | :--- | | Starry Dream Culture Communication (Shanghai) Co., Ltd. CGU | 24.0 | 24.0 | | Star CM Media Film Co., Ltd. CGU | 231.6 | 232.6 | | **Total** | **255.6** | **256.6** | - Interests in associates decreased by **1.9%** to **RMB 849.4 million**, primarily due to increased operating losses from associates[69](index=69&type=chunk) - Other intangible assets decreased by **4.1%** to **RMB 125.9 million**, mainly due to normal amortization of film IP licenses[76](index=76&type=chunk) - Financial assets at fair value through profit or loss increased by **24.4%** to **RMB 65.3 million**, primarily due to fluctuations in the share prices of listed investments[77](index=77&type=chunk) [Current Assets](index=22&type=section&id=%E6%87%89%E6%94%B6%E9%97%9C%E8%81%AF%E6%96%B9%E6%AC%BE%E9%A0%85%3B%20%E5%8F%97%E9%99%90%E5%88%B6%E5%AD%98%E6%AC%BE%3B%20%E7%AF%80%E7%9B%AE%E7%89%88%E6%9D%83%3B%20%E8%B4%B8%E6%98%93%E5%BA%94%E6%94%B6%E6%AC%BE%E9%A1%B9%3B%20%E9%A2%84%E4%BB%98%E6%AC%BE%E9%A1%B9%E3%80%81%E5%85%B6%E4%BB%96%E5%BA%94%E6%94%B6%E6%AC%BE%E9%A1%B9%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B5%84%E4%BA%A7%3B%20%E7%8E%B0%E9%87%91%E5%8F%8A%E7%8E%B0%E9%87%91%E7%AD%89%E4%BB%B7%E7%89%A9) Cash and cash equivalents increased to RMB 532.9 million; amounts due from related parties significantly decreased by 76.3%, primarily due to partial loan repayments; restricted deposits decreased by 58.4%, primarily due to the resolution of certain litigation cases; trade receivables decreased by 30.3%, consistent with the reduction in revenue - Cash and cash equivalents increased to **RMB 532.9 million** (December 31, 2024: RMB 425.3 million)[87](index=87&type=chunk) - Amounts due from related parties decreased by **76.3%** to **RMB 26.7 million**, mainly due to partial loan repayments by Mengxiang Qian and CMC Asia Group Holdings Ltd[75](index=75&type=chunk) - Restricted deposits decreased by **58.4%** to **RMB 28.5 million**, primarily due to the resolution of certain litigation cases and the release of prior provisions[78](index=78&type=chunk) - Trade receivables decreased by **30.3%** to **RMB 69.0 million**, consistent with the change in revenue[80](index=80&type=chunk) [Liabilities](index=23&type=section&id=%E8%B2%A0%E5%80%B5) Trade payables decreased by 13.0%, consistent with the reduction in cost of sales; other payables and accrued charges decreased by 23.9%, mainly due to settlements; contract liabilities increased by 21.3%, primarily due to an increase in unrecognised contract liabilities; provisions significantly decreased by 81.4%, primarily due to the payment of litigation provisions - Trade payables decreased by **13.0%** to **RMB 101.9 million**, consistent with the change in cost of sales[82](index=82&type=chunk) - Other payables and accrued charges decreased by **23.9%** to **RMB 35.4 million**, mainly due to the settlement of certain other payables[83](index=83&type=chunk) - Contract liabilities increased by **21.3%** to **RMB 19.4 million**, primarily due to an increase in unrecognised contract liabilities[84](index=84&type=chunk) - Provisions decreased by **81.4%** to **RMB 6.6 million**, primarily due to the payment of litigation provisions[85](index=85&type=chunk) [Liquidity and Capital Resources](index=24&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E6%BA%90) The company primarily meets its cash needs through equity financing and cash flows generated from retained earnings; as of June 30, 2025, cash and cash equivalents were RMB 532.9 million, and the gearing ratio remained stable at 0.25% - As of June 30, 2025, cash and cash equivalents were **RMB 532.9 million** (December 31, 2024: RMB 425.3 million)[87](index=87&type=chunk) - The company primarily funds its cash requirements through equity financing and cash flows generated from retained earnings[87](index=87&type=chunk) - As of June 30, 2025, the gearing ratio was **0.25%**, remaining stable compared to **0.26%** as of December 31, 2024[88](index=88&type=chunk) [Other Financial Information](index=24&type=section&id=%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE%3B%20%E8%B3%87%E7%94%A2%E8%B3%AA%E6%8A%BC%3B%20%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5%3B%20%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%99%A9%3B%20%E6%9C%89%E9%97%9C%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E7%9A%84%E6%9C%AA%E4%BE%86%E8%A8%88%E5%88%92) No material acquisitions or disposals occurred during the reporting period; pledged assets primarily consist of restricted deposits for leased land and litigation; the company faces transactional currency risk but currently does not intend to hedge; there are no future plans for material investments beyond those disclosed in the prospectus - No material acquisitions or disposals of subsidiaries, consolidated affiliated entities, or associates occurred during the reporting period[89](index=89&type=chunk) - As of June 30, 2025, pledged time deposits amounted to **RMB 28.5 million**, used as collateral for leased land purchases and litigation[90](index=90&type=chunk) - The company faces transactional currency risk, primarily from cash and cash equivalents denominated in HKD or USD, and currently does not intend to hedge[92](index=92&type=chunk) - Other than the intended use of proceeds disclosed in the prospectus, the company has no other material investment or capital asset plans[93](index=93&type=chunk) Corporate Governance and Other Information [Employees and Remuneration Policy](index=25&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June 30, 2025, the Group had 116 employees, with total staff remuneration expenses of RMB 19.8 million for the first half; remuneration policy is based on industry practice, employee performance, and market levels, offering benefits such as year-end bonuses, allowances, and retirement schemes - As of June 30, 2025, the Group had **116 employees**[94](index=94&type=chunk) - Total staff remuneration expenses for the first half of 2025 amounted to **RMB 19.8 million**[94](index=94&type=chunk) - Remuneration policy is determined based on industry practice, employee educational background, experience, and performance, offering various benefits[94](index=94&type=chunk) [Material Litigation](index=25&type=section&id=%E9%87%8D%E5%A4%A7%E8%A8%B4%E8%A8%9F) For the six months ended June 30, 2025, the company was not involved in any material litigation or arbitration - For the six months ended June 30, 2025, the company was not involved in any material litigation or arbitration[95](index=95&type=chunk) [Events After the Reporting Period](index=25&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%90%8E%E4%BA%8B%E9%A0%85) As of the date of this announcement, no significant events affecting the Group have occurred since the end of the reporting period - As of the date of this announcement, no significant events that could affect the Group have occurred since the six months ended June 30, 2025[96](index=96&type=chunk) [Corporate Governance](index=25&type=section&id=%E4%BC%81%E4%B8%9A%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) The Board is committed to high standards of corporate governance and has adopted the Corporate Governance Code; the company deviates from Code Provision C.2.1 regarding the separation of Chairman and Chief Executive roles, with Mr. Tian Ming holding both, which the Board believes benefits business management and leadership unity; otherwise, the company has complied with the Corporate Governance Code - The company has adopted the principles and code provisions of the Corporate Governance Code as the foundation for its corporate governance practices[98](index=98&type=chunk) - The company deviates from Code Provision C.2.1 of the Corporate Governance Code regarding the separation of Chairman and Chief Executive roles, with Mr. Tian Ming holding both positions, which the Board believes benefits business prospects and management unity[98](index=98&type=chunk) - The Directors have confirmed strict compliance with the 'Model Code for Securities Transactions by Directors of Listed Issuers' during the reporting period[99](index=99&type=chunk) [Board Committees](index=26&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83%3B%20%E5%85%B6%E4%BB%96%E8%91%A3%E4%BA%8B%E5%A7%94%E5%91%A1%E6%9C%83) The company has established an Audit Committee, a Nomination Committee, and a Remuneration Committee; the Audit Committee has reviewed the interim financial information and discussed accounting policies, financial reporting, and internal controls with management, with no disagreements between the Board and the Audit Committee - The company has established an Audit Committee, a Nomination Committee, and a Remuneration Committee[100](index=100&type=chunk)[101](index=101&type=chunk) - The Audit Committee has reviewed the interim financial information and discussed accounting policies, financial reporting matters, and internal controls with management, with no disagreements between the Board and the Audit Committee regarding accounting treatments[100](index=100&type=chunk) [Dealings in Listed Securities](index=27&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%E7%9A%84%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities on the Stock Exchange, and the company held no treasury shares - During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities on the Stock Exchange[102](index=102&type=chunk) - As of June 30, 2025, the company held no treasury shares[102](index=102&type=chunk) [Use of Proceeds from Global Offering](index=27&type=section&id=%E5%85%A8%E7%90%83%E5%8F%91%E5%94%AE%E6%89%80%E5%BE%97%E6%AC%BE%E9%A1%B9%E7%94%A8%E9%80%94) The net proceeds from the global offering were approximately HKD 328.3 million (approximately RMB 293.0 million); as of June 30, 2025, the remaining net proceeds were approximately HKD 74.8 million (approximately RMB 66.9 million) and will be used as stated in the prospectus - The net proceeds from the global offering were approximately **HKD 328.3 million** (approximately **RMB 293.0 million**)[103](index=103&type=chunk) - As of June 30, 2025, the remaining net proceeds were approximately **HKD 74.8 million** (approximately **RMB 66.9 million**)[103](index=103&type=chunk) [Interim Dividend](index=27&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[104](index=104&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=27&type=section&id=%E5%88%8A%E7%99%BC%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%85%AC%E5%91%8A%E5%8F%8A%E4%B8%AD%E5%A0%B1) This interim results announcement and interim report have been published on the Stock Exchange's website and the company's website, and will be dispatched to shareholders in due course - This interim results announcement is published on the Stock Exchange's website www.hkexnews.hk and the company's website www.starcmgroup.com[105](index=105&type=chunk) [Definitions](index=27&type=section&id=%E9%87%8B%E7%BE%A9) This section provides definitions for key terms and abbreviations used in the report, including Board, China, Company, Corporate Governance Code, Directors, Global Offering, HKD, Hong Kong, IFRS, iQIYI, Listing, Listing Rules, Main Board, Mengxiang Qian, Prospectus, RMB, Shaanxi Shuolan, Shaanxi Yuanlv, Shares, Shareholders, Stock Exchange, and USD - Definitions for key terms and abbreviations used in the report are provided[106](index=106&type=chunk)[107](index=107&type=chunk)[108](index=108&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佈之內容概不負責，對其準確性或完整性亦 不發表任何聲明，並明確表示概不就因本公佈全部或任何部分內容而產生或因依賴該等內容而引致之任何 損失承擔任何責任。 金地商置集團有限公司* （於百慕達註冊成立之有限公司） （股份代號：535） 截至2025年6月30日止六個月之 未經審核中期業績公佈 財務概要 | | 截至 6 | 月 30 日止六個月 | | | | | --- | --- | --- | --- | --- | --- | | | 2025 年 | 2024 | 年 | | 變動 | | | ⼈⺠幣千元 | ⼈⺠幣千元 | | | % | | | (未經審核) | (未經審核) | | | | | 收入 | 6,467,765 | 3,286,864 | | ＋ | 97 | | 毛利 | 931,231 | 557,414 | | ＋ | 67 | | 其他收入及收益 | 195,699 | 354,290 | | － | 45 | | 應佔合營公司及聯營公司業績 | (128,188) | (1,362,678) | | － | 91 | | ...