[Financial Performance](index=1&type=section&id=Financial%20Performance) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, revenue decreased by 12.3% to HK$689 million, but loss significantly narrowed to HK$3.55 million due to cost control and exchange gains, improving basic loss per share from 3.79 HK cents to 0.56 HK cents Key Data from Consolidated Statement of Profit or Loss | Indicator | For the six months ended June 30, 2025 (HK$ Thousand) | For the six months ended June 30, 2024 (HK$ Thousand) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | 688,654 | 785,212 | -12.3% | | Loss before tax | (1,865) | (27,757) | -93.3% | | Loss for the period | (3,553) | (23,915) | -85.1% | | Total comprehensive income (expense) for the period | 40,380 | (63,300) | N/A | | Basic loss per share (HK Cents) | (0.56) | (3.79) | -85.2% | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets were HK$1.885 billion and net assets were HK$1.600 billion, with a robust financial position, HK$924 million in net current assets, substantial cash, and no bank borrowings Key Data from Statement of Financial Position | Indicator | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Period Change | | :--- | :--- | :--- | :--- | | Non-current assets | 767,609 | 809,141 | -5.1% | | Current assets | 1,117,440 | 1,162,485 | -3.9% | | Current liabilities | 193,312 | 201,476 | -4.0% | | Net assets (Total equity) | 1,600,452 | 1,673,543 | -4.4% | | Bank balances and cash | 518,076 | 546,648 | -5.2% | [Summary of Notes to Financial Statements](index=4&type=section&id=Summary%20of%20Notes%20to%20Financial%20Statements) The notes detail the Group's core business as mould base manufacturing and sales, with revenue primarily from China, which saw a decline, while other income significantly increased due to exchange gains, and an interim dividend of 8 HK cents per share was declared [Revenue and Segment Information](index=5&type=section&id=Revenue%20and%20Segment%20Information) The Group's core business is manufacturing and selling mould bases and related products, forming a single operating segment, with China as the main revenue source experiencing a 14.4% year-on-year decline, while other regions saw slight growth - The Group is principally engaged in the manufacturing and sale of mould bases and related products, with revenue recognized when control of the goods is transferred to customers[8](index=8&type=chunk)[9](index=9&type=chunk) Revenue by Geographical Region | Region | For the six months ended June 30, 2025 (HK$ Thousand) | For the six months ended June 30, 2024 (HK$ Thousand) | Year-on-year Change | | :--- | :--- | :--- | :--- | | China | 594,866 | 694,610 | -14.4% | | Other | 93,788 | 90,602 | +3.5% | | **Total** | **688,654** | **785,212** | **-12.3%** | [Other Income, Gains and Losses](index=6&type=section&id=Other%20Income%2C%20Gains%20and%20Losses) Total other income, gains, and losses significantly increased to HK$11.52 million from HK$6.19 million last year, primarily driven by a shift from an exchange loss to an exchange gain of HK$2.68 million Details of Other Income, Gains and Losses | Item | For the six months ended June 30, 2025 (HK$ Thousand) | For the six months ended June 30, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Interest income | 3,030 | 4,578 | | Rental income | 2,206 | 1,432 | | Net exchange gain (loss) | 2,675 | (1,705) | | **Total** | **11,516** | **6,188** | [Dividends](index=8&type=section&id=Dividends) The Board resolved to declare an interim dividend of 8 HK cents per share for the six months ended June 30, 2025, totaling approximately HK$50.53 million, a significant increase from 5 HK cents per share in the prior year - The Board resolved to declare an interim dividend of **8 HK cents per share**, higher than **5 HK cents per share** in the prior year[18](index=18&type=chunk) [Trade, Bills and Other Receivables](index=9&type=section&id=Trade%2C%20Bills%20and%20Other%20Receivables) At the period end, total trade and bills receivables were HK$105 million, slightly down from HK$109 million at the end of 2024, with approximately 75% of receivables aged within 60 days, indicating a healthy structure Ageing Analysis of Trade and Bills Receivables | Ageing | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | 0 to 60 days | 79,343 | 86,174 | | 61 to 90 days | 15,609 | 16,495 | | Over 90 days | 10,266 | 6,019 | | **Total** | **105,218** | **108,688** | [Management Discussion and Analysis](index=10&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=10&type=section&id=Business%20Review) Despite a challenging global business environment and weak market demand leading to decreased revenue, the Group improved overall performance by increasing product gross profit margin through higher selling prices, high-value-added orders, and controlled raw material costs, significantly reducing net loss - Despite weak market conditions, the Group's total revenue decreased, but **product gross profit margin increased**, leading to a **reduction in net loss**[26](index=26&type=chunk) - Profit improvement was attributed to slightly higher product selling prices, undertaking orders with higher processing complexity, and a moderate decrease in raw material procurement prices[27](index=27&type=chunk) [Financial Review](index=11&type=section&id=Financial%20Review) Revenue decreased by 12.3% year-on-year, but cost control was a key improvement, with raw materials and consumables costs as a percentage of revenue falling from 40.0% to 35.2%, leading to an 85.1% reduction in loss for the period to HK$3.55 million - Revenue decreased by **12.3% year-on-year**, primarily due to a reduction in total market orders caused by a challenging business environment[28](index=28&type=chunk) - Raw materials and consumables costs as a percentage of revenue decreased from **40.0%** in the prior year to **35.2%**[28](index=28&type=chunk) - As a result of the aforementioned factors, loss for the period decreased by **85.1%** to **HK$3.55 million**[29](index=29&type=chunk) [Liquidity and Financial Resources](index=11&type=section&id=Liquidity%20and%20Financial%20Resources) The Group maintains a robust financial position with ample liquidity, holding HK$518 million in bank balances and cash as of June 30, 2025, with no bank borrowings, sufficient to meet its operating and capital commitments Key Liquidity Indicators | Indicator | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Total equity | 1,600,452 | 1,673,543 | | Bank balances and cash | 518,076 | 546,648 | | Borrowings | 0 | 0 | [Outlook](index=12&type=section&id=Outlook) Facing global economic uncertainties in the second half, the Group will cautiously adjust strategies, strengthen marketing, explore new markets like ASEAN, align with China's consumption-boosting policies, focus on high-end tech, and enhance efficiency through intelligent manufacturing for stable development - Facing geopolitical conflicts and trade protectionism, the Group will cautiously adjust marketing strategies and actively explore new markets (e.g., ASEAN) to diversify risks[33](index=33&type=chunk) - The Group will align with the Chinese government's measures to boost consumption and investment, expanding market opportunities in new energy vehicles, high-end electronics, and AI products[34](index=34&type=chunk) - Future plans include continuous improvement of production equipment and processes, utilizing intelligent and efficient production models to reduce reliance on manual labor and enhance production efficiency[34](index=34&type=chunk) [Other Disclosures](index=13&type=section&id=Other%20Disclosures) [Review of Interim Financial Statements](index=13&type=section&id=Review%20of%20Interim%20Financial%20Statements) The company's audit committee, along with management and external auditor Deloitte, reviewed the unaudited condensed consolidated financial statements for the period and discussed internal controls and financial reporting matters - The Audit Committee, in conjunction with management and the external auditor, has reviewed the Group's accounting principles, practices, and the unaudited condensed consolidated financial statements[36](index=36&type=chunk) [Interim Dividend](index=13&type=section&id=Interim%20Dividend) The Board resolved to declare an interim dividend of 8 HK cents per share, a 60% increase from 5 HK cents per share in the prior year, with payment expected on or about September 23, 2025 - The Board resolved to declare an interim dividend of **8 HK cents per share** for the six months ended June 30, 2025 (2024: **5 HK cents per share**)[37](index=37&type=chunk) [Corporate Governance](index=13&type=section&id=Corporate%20Governance) Throughout the review period, the company complied with all code provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules, and no shares were repurchased, sold, or redeemed - Throughout the review period, the Company has complied with all code provisions of the Corporate Governance Code[40](index=40&type=chunk) - During the period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's shares or other securities[39](index=39&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不發表任何 聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 AINNOVATION TECHNOLOGY GROUP CO., LTD* 創新奇智科技集團股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：2121） 截 至 2025 年 6 月 30 日止六個月中期業績公告 及 進一步變更所得款項用途和使用期限 創新奇智科技集團股份有限公司（「本公司」，連同其附屬公司統稱「本集團」）董事會（「董事會」）欣然 宣佈本集團截至2025年6月30日止六個月（「報告期」）的未經審核綜合中期業績連同2024年同期的 比較數字。 | 財務概要 | | | | --- | --- | --- | | | 截至6月30日止六個月 | | | | 2025年 | 2024年 | | | 人民幣千元 | 人民幣千元 | | | （未經審核） | （未經審核） | | 收入 | 698,981 | 571,704 | | 毛利 | 244,728 | 193,225 ...

香港聯合交易所有限公司（「聯交所」）GEM特色 GEM乃為較其他於聯交所上市的公司帶有較高投資風險的中小型公司提供一個上市市場。 有意投資者應了解投資該等公司的潛在風險，並經過審慎周詳考慮後方才作出投資決定。 由於GEM上市公司通常為中小型公司，於GEM買賣的證券可能會較於聯交所主板買賣的證 券承受較大的市場波動風險，同時無法保證於GEM買賣的證券會有高流通市場。 香港交易及結算所有限公司及聯交所對本報告的內容概不負責，對其準確性或完整性亦不 發表任何聲明，並明確表示，概不就因本報告全部或任何部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。 本報告乃遵照聯交所GEM證券上市規則（「GEM上市規則」）的規定而提供有關盛龍錦秀國際 有限公司（「本公司」）的資料，本公司之董事（「董事」）願就本報告共同及個別地承擔全部責 任。董事在作出一切合理查詢後，確認就彼等所知及所信，本報告所載資料在各重要方面 均屬準確完整，並無誤導或欺詐成份，亦無遺漏任何其他事項，致使當中任何陳述或本報 告產生誤導。 中期報告2025 盛龍錦秀國際有限公司 公司資料 執行董事 盛英明先生 方旭先生 盛賽男女士 獨立非執行董事 曹 ...

Interim Results Announcement [Condensed Consolidated Interim Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Interim%20Financial%20Statements) This section presents the unaudited condensed consolidated interim financial statements for the six months ended June 30, 2025, with comparative data [Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income](index=2&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's revenue significantly increased, gross profit grew, and net profit was achieved, reversing the prior year's loss | Metric | Six Months Ended June 30, 2025 (RMB '000) | Six Months Ended June 30, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 127,456 | 69,090 | +84.5% | | Cost of Sales | (104,537) | (62,765) | +66.6% | | Gross Profit | 22,919 | 6,325 | +262.4% | | Operating Profit/(Loss) | 6,488 | (3,855) | N/A (Turned from loss to profit) | | Profit/(Loss) for the Period | 6,448 | (4,184) | N/A (Turned from loss to profit) | | Earnings/(Loss) Per Share | 0.016 | (0.010) | N/A (Turned from loss to profit) | [Condensed Consolidated Interim Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets increased by 14.8% to RMB 322,132 thousand, driven by current assets and a significant rise in cash and cash equivalents | Metric | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 322,132 | 280,530 | +14.8% | | Non-current Assets | 123,623 | 126,855 | -2.5% | | Current Assets | 198,509 | 153,675 | +29.2% | | Total Equity | 202,560 | 195,947 | +3.4% | | Total Liabilities | 119,572 | 84,583 | +41.4% | | Current Liabilities | 114,998 | 79,583 | +44.5% | | Cash and Cash Equivalents | 23,228 | 6,003 | +286.9% | [Condensed Consolidated Interim Statement of Changes in Equity](index=5&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, total equity increased to RMB 202,560 thousand, primarily due to profit for the period and foreign currency translation differences | Metric | As of June 30, 2025 (RMB '000) | As of January 1, 2024 (RMB '000) | | :--- | :--- | :--- | | Total Equity at Period End | 202,560 | 207,060 | | Profit/(Loss) for the Period | 6,448 | (4,184) | | Other Comprehensive Income/(Expense) | 165 | (15) | | Total Comprehensive Income/(Expense) | 6,613 | (4,199) | [Condensed Consolidated Interim Statement of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, operating activities resulted in a cash outflow, while financing activities generated significant cash inflow from bank borrowings, leading to a net increase in cash | Metric | Six Months Ended June 30, 2025 (RMB '000) | Six Months Ended June 30, 2024 (RMB '000) | | :--- | :--- | :--- | | Net Cash From/(Used in) Operating Activities | (30,599) | 3,678 | | Net Cash Used in Investing Activities | (1,256) | (15,530) | | Net Cash From/(Used in) Financing Activities | 49,080 | (5,223) | | Net Increase/(Decrease) in Cash and Cash Equivalents | 17,225 | (17,075) | | Cash and Cash Equivalents at Period End | 23,228 | 27,096 | [Notes to the Condensed Consolidated Interim Financial Statements](index=7&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) This section provides detailed notes to the condensed consolidated interim financial statements, covering accounting policies, fair value measurements, segment reporting, and key financial item details [General Information](index=7&type=section&id=General%20Information) The company, incorporated in the Cayman Islands, primarily manufactures and sells concrete products in China, with Ms Wang Xianyu as the ultimate controlling shareholder - The company primarily engages in the manufacturing and sale of PHC pipe piles, ceramsite concrete slabs, and commercial concrete in China[10](index=10&type=chunk) - Ms Wang Xianyu is the ultimate controlling shareholder of the company[11](index=11&type=chunk) [Basis of Preparation](index=7&type=section&id=Basis%20of%20Preparation) The unaudited condensed consolidated interim financial statements are prepared in accordance with HKAS 34 and the Listing Rules, and have been reviewed by the Audit Committee - The unaudited condensed consolidated interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' issued by the HKICPA and the applicable disclosure requirements of the Listing Rules[12](index=12&type=chunk) - The condensed consolidated interim financial statements have not been audited or reviewed by the company's external auditors, but have been reviewed by the Audit Committee[12](index=12&type=chunk) [Summary of Significant Accounting Policies](index=8&type=section&id=Summary%20of%20Significant%20Accounting%20Policies) The financial statements are prepared on a historical cost basis, adopting new and revised HKFRSs effective January 1, 2025, with no material impact from HKAS 21 (Amendment) - The condensed consolidated interim financial statements have been prepared on a historical cost basis[13](index=13&type=chunk) - The adoption of HKAS 21 (Amendment) 'Lack of Exchangeability' had no impact on the Group's interim condensed consolidated financial information[15](index=15&type=chunk) [Fair Value Measurement](index=9&type=section&id=Fair%20Value%20Measurement) The Group's financial assets and liabilities have fair values similar to their carrying amounts, with fair value measurements categorized into three levels, primarily including listed and unlisted equity securities - The carrying amounts of the Group's financial assets and financial liabilities approximate their respective fair values[18](index=18&type=chunk) - Level 1 instruments primarily include investments in listed securities, classified as financial assets at fair value through profit or loss[24](index=24&type=chunk) - Level 3 instruments primarily include investments in unlisted equity securities (Zhejiang Erge) and bank and commercial acceptance bills, whose fair values are determined using applicable valuation techniques (including the comparable company method)[25](index=25&type=chunk)[26](index=26&type=chunk) [Segment Reporting](index=11&type=section&id=Segment%20Reporting) The Group operates as a single segment, manufacturing and selling concrete products in China, with all revenue and most non-current assets originating from China - The Group primarily engages in the manufacturing and sale of commercial concrete, PHC pipe piles, and ceramsite concrete slabs in China, with management reviewing the business as a single operating segment[27](index=27&type=chunk) - All of the Group's revenue is derived from China, and non-current assets are primarily located in China (**RMB 113,507 thousand**)[27](index=27&type=chunk)[28](index=28&type=chunk) [Revenue](index=11&type=section&id=Revenue) For the six months ended June 30, 2025, total revenue increased by 84.5% to RMB 127,456 thousand, driven by significant growth in PHC pipe piles and commercial concrete sales | Product | Six Months Ended June 30, 2025 (RMB '000) | Six Months Ended June 30, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | PHC Pipe Piles | 79,099 | 41,414 | +91.0% | | Commercial Concrete | 48,351 | 26,115 | +85.1% | | Ceramsite Concrete Slabs | 6 | 1,561 | -99.6% | | Total | 127,456 | 69,090 | +84.5% | - Contract liabilities increased from **RMB 1,108 thousand** as of December 31, 2024, to **RMB 2,331 thousand** as of June 30, 2025[31](index=31&type=chunk) - In the first half of 2025, Customer A contributed **RMB 18,241 thousand** in revenue, becoming a major customer[32](index=32&type=chunk) [Expenses by Nature](index=12&type=section&id=Expenses%20by%20Nature) For the six months ended June 30, 2025, raw materials and consumables expenses significantly increased by 90.7%, employee benefit expenses rose, while depreciation of property, plant and equipment decreased | Item | Six Months Ended June 30, 2025 (RMB '000) | Six Months Ended June 30, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Raw Materials and Consumables Used | 86,793 | 45,505 | +90.7% | | Employee Benefit Expenses | 7,219 | 6,535 | +10.5% | | Depreciation of Property, Plant and Equipment | 5,085 | 6,142 | -17.2% | | Total Expenses | 122,101 | 73,814 | +65.4% | [Other Income, Other Costs and Net Other Gains](index=13&type=section&id=Other%20Income,%20Other%20Costs%20and%20Net%20Other%20Gains) For the six months ended June 30, 2025, net other income, costs, and gains increased by 29.9% to RMB 1,133 thousand, primarily from rental income and fair value gains on financial assets | Item | Six Months Ended June 30, 2025 (RMB '000) | Six Months Ended June 30, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Other Income | 1,379 | – | N/A | | Other Costs | (1,215) | – | N/A | | Net Other Gains | 969 | 872 | +11.1% | | Total | 1,133 | 872 | +29.9% | [Net Finance (Costs)/Income](index=13&type=section&id=Net%20Finance%20(Costs)%2FIncome) For the six months ended June 30, 2025, the company recorded net finance costs of RMB 171 thousand, reversing the prior year's net finance income, mainly due to increased bank borrowing interest expenses | Item | Six Months Ended June 30, 2025 (RMB '000) | Six Months Ended June 30, 2024 (RMB '000) | | :--- | :--- | :--- | | Finance Income | 136 | 298 | | Finance Costs | (307) | (96) | | Net Finance (Costs)/Income | (171) | 202 | [Income Tax (Credit)/Expense](index=14&type=section&id=Income%20Tax%20(Credit)%2FExpense) For the six months ended June 30, 2025, the company recorded an income tax credit of RMB 131 thousand, with PRC subsidiaries subject to a 25% corporate income tax rate, and high-tech enterprises enjoying a 15% preferential rate | Item | Six Months Ended June 30, 2025 (RMB '000) | Six Months Ended June 30, 2024 (RMB '000) | | :--- | :--- | :--- | | Current Income Tax | 432 | 16 | | Deferred Income Tax | (563) | 515 | | Income Tax (Credit)/Expense | (131) | 531 | - The applicable corporate income tax rate for PRC subsidiaries is **25%**, with high-tech enterprises enjoying a preferential rate of **15%**[36](index=36&type=chunk) - The additional tax deduction for qualified R&D expenses of manufacturing enterprises has increased to **200%** since 2021[37](index=37&type=chunk) [Dividends](index=15&type=section&id=Dividends) For the six months ended June 30, 2025, the company neither paid nor declared any dividends, consistent with the prior year - The Board does not recommend paying any interim dividend for the period (six months ended June 30, 2024: nil)[39](index=39&type=chunk) [Earnings Per Share](index=15&type=section&id=Earnings%20Per%20Share) For the six months ended June 30, 2025, basic earnings per share was RMB 0.016, reflecting improved performance from a loss of RMB 0.010 per share in the prior year | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Profit/(Loss) Attributable to Equity Holders of the Company (RMB thousand) | 6,448 | (4,181) | | Weighted Average Number of Shares in Issue (thousand shares) | 400,000 | 400,000 | | Basic Earnings Per Share (RMB) | 0.016 | (0.010) | - During the period and for the six months ended June 30, 2025, the company had no outstanding potential ordinary shares, thus diluted earnings per share equals basic earnings per share[41](index=41&type=chunk) [Property, Plant and Equipment](index=15&type=section&id=Property,%20Plant%20and%20Equipment) For the six months ended June 30, 2025, the Group's purchases of property, plant and equipment significantly increased to approximately RMB 2,164 thousand, indicating substantial capital expenditure growth - The Group purchased property, plant and equipment at a total cost of approximately **RMB 2,164 thousand**, a significant increase from **RMB 51 thousand** in the prior year[42](index=42&type=chunk) [Financial Assets at Fair Value Through Profit or Loss](index=16&type=section&id=Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) As of June 30, 2025, financial assets at fair value through profit or loss totaled RMB 17,295 thousand, remaining stable and primarily comprising investments in unlisted and PRC listed equity securities | Item | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Investment in Unlisted Equity Securities | 15,814 | 15,578 | | Investment in Hong Kong Listed Equity Securities | – | 949 | | Investment in PRC Listed Equity Securities | 1,481 | 772 | | Total | 17,295 | 17,299 | [Trade, Prepayments and Other Receivables](index=16&type=section&id=Trade,%20Prepayments%20and%20Other%20Receivables) As of June 30, 2025, trade, prepayments, and other receivables increased by 24.9% to RMB 134,932 thousand, with trade receivables growing by 19.9% | Item | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Trade Receivables (Net) | 112,856 | 94,143 | +19.9% | | Other Receivables (Net) | 2,828 | 1,701 | +66.3% | | Prepayments for Raw Materials | 19,248 | 12,177 | +58.1% | | Total | 134,932 | 108,021 | +24.9% | | Aging of Trade Receivables | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Within 1 month | 50,154 | 26,536 | | 1 to 6 months | 42,556 | 41,906 | | 6 months to 1 year | 17,566 | 16,583 | | 1 to 2 years | 9,593 | 14,961 | | Over 2 years | 5,842 | 7,276 | | Total | 125,711 | 107,262 | [Restricted Cash](index=17&type=section&id=Restricted%20Cash) As of June 30, 2025, restricted cash amounted to RMB 6,941 thousand, primarily serving as collateral for bank acceptance bills, a decrease from the prior year-end - Restricted cash, primarily collateral for bank acceptance bills, was **RMB 6,941 thousand** as of June 30, 2025 (December 31, 2024: **RMB 9,646 thousand**)[46](index=46&type=chunk)[5](index=5&type=chunk) [Share Capital](index=17&type=section&id=Share%20Capital) As of June 30, 2025, the company's issued and fully paid share capital remained unchanged at 400,000,000 ordinary shares, with a share capital amount of RMB 3,584 thousand | Item | Number of Shares | Share Capital (RMB '000) | | :--- | :--- | :--- | | Issued and Fully Paid Share Capital (As of June 30, 2025 and As of December 31, 2024) | 400,000,000 | 3,584 | [Trade and Other Payables](index=18&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, trade and other payables decreased by 20.5% to RMB 60,372 thousand, with trade payables declining by 18% | Item | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Trade Payables | 50,645 | 61,746 | -18.0% | | Bills Payable | 6,717 | 9,163 | -26.7% | | Accrued Wages | 1,104 | 1,292 | -14.5% | | Other Taxes Payable | 1,585 | 919 | +72.5% | | Other Payables | 321 | 2,834 | -88.7% | | Total | 60,372 | 75,954 | -20.5% | | Aging of Trade Payables | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Within 1 month | 24,933 | 38,042 | | 1 to 6 months | 10,360 | 12,189 | | 6 months to 1 year | 7,459 | 8,772 | | 1 to 2 years | 5,242 | 2,046 | | Over 2 years | 2,651 | 697 | | Total | 50,645 | 61,746 | [Borrowings](index=18&type=section&id=Borrowings) As of June 30, 2025, the Group incurred new short-term bank borrowings of RMB 49,500 thousand, all denominated in RMB and secured by buildings and land use rights | Item | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Short-term Bank Borrowings | 49,500 | – | - The Group's short-term bank borrowings of approximately **RMB 49,500 thousand** are secured by buildings with a net book value of approximately **RMB 12,207 thousand** and land use rights of approximately **RMB 10,614 thousand**[56](index=56&type=chunk) [Related Party Transactions](index=19&type=section&id=Related%20Party%20Transactions) For the six months ended June 30, 2025, key management personnel compensation was approximately RMB 1,383 thousand, a decrease from the prior year - For the six months ended June 30, 2025, key management personnel compensation was approximately **RMB 1,383 thousand** (six months ended June 30, 2024: **RMB 2,247 thousand**)[49](index=49&type=chunk) [Contingent Liabilities](index=19&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities[51](index=51&type=chunk) [Events After Reporting Period](index=19&type=section&id=Events%20After%20Reporting%20Period) As of the announcement date, no significant post-reporting period events have materially impacted the Group's business and financial performance - As of the announcement date, no significant post-reporting period events have materially impacted the Group's business and financial performance[52](index=52&type=chunk) [Restatement](index=19&type=section&id=Restatement) The Group restated comparative information for the six months ended June 30, 2024, reclassifying certain listed and unlisted equity securities to financial assets at fair value through profit or loss due to a change in investment strategy and accounting standards - The Group reclassified certain listed equity securities as financial assets at fair value through profit or loss, reflecting a change in investment strategy to actively trade for short-term gains[54](index=54&type=chunk) - Investments in unlisted equity securities with put options were reclassified as financial assets at fair value through profit or loss, as they do not meet the definition of equity instruments under HKAS 32[55](index=55&type=chunk) Impact on Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income for the Six Months Ended June 30, 2024 | Item | Previously Reported (RMB '000) | Prior Period Adjustment (RMB '000) | Restated (RMB '000) | | :--- | :--- | :--- | :--- | | Other Income, Other Costs and Net Other Gains | 872 | (3) | 869 | | Operating Loss | (3,852) | (3) | (3,855) | | Loss for the Period | (4,181) | (3) | (4,184) | | Other Comprehensive Expense for the Period | (18) | 3 | (15) | Impact on Condensed Consolidated Interim Statement of Cash Flows for the Six Months Ended June 30, 2024 | Item | Previously Reported (RMB '000) | Prior Period Adjustment (RMB '000) | Restated (RMB '000) | | :--- | :--- | :--- | :--- | | Purchase of Financial Assets at Fair Value Through Other Comprehensive Income | (15,416) | 15,416 | – | | Purchase of Financial Assets at Fair Value Through Profit or Loss | – | (15,416) | (15,416) | [Management Discussion and Analysis](index=21&type=section&id=Management%20Discussion%20and%20Analysis) This section reviews the Group's business and financial performance for the first half of 2025, highlighting revenue growth, strategic initiatives, future outlook, and key financial risks [Business Review](index=21&type=section&id=Business%20Review) For the first half of 2025, the Group achieved robust financial performance with revenue of RMB 127.5 million, an 84.5% increase, and an improved gross profit margin of 18.0%, driven by infrastructure demand and strategic partnerships - The Group achieved revenue of **RMB 127.5 million** in the first half of 2025, an increase of **84.5%** compared to the corresponding period[58](index=58&type=chunk) - Gross profit margin increased from **9.2%** in the corresponding period to **18.0%** in the current period, primarily due to economies of scale and strategic cost management[58](index=58&type=chunk) - Established a strategic partnership with Anhui Conch Cement Company Limited to ensure a continuous and stable supply of core production materials[59](index=59&type=chunk) [Financial Review](index=22&type=section&id=Financial%20Review) The Group's revenue significantly increased by 84.5% to RMB 127.5 million, gross profit grew by 263.5%, and a net profit of RMB 6.4 million was recorded, with new bank borrowings of RMB 49.5 million - Revenue significantly increased by approximately **RMB 58.4 million** or **84.5%** to approximately **RMB 127.5 million** for the period, primarily due to accelerated regional infrastructure development and a recovery in construction activities[61](index=61&type=chunk) - Gross profit significantly increased by approximately **RMB 16.6 million**, a **263.5%** growth, with gross profit margin improving from **9.2%** to **18.0%**, primarily due to enhanced production capacity, strategic procurement, and prudent project selection[62](index=62&type=chunk) - Administrative expenses increased by **24.4%** to **RMB 16.3 million**, mainly due to the resumption of normal business operations and strategic investments in administrative support projects[64](index=64&type=chunk) - Net profit of approximately **RMB 6.4 million** was recorded for the period, compared to a net loss of approximately **RMB 4.2 million** in the corresponding period[65](index=65&type=chunk) - Bank borrowings as of June 30, 2025, amounted to approximately **RMB 49.5 million**, an increase from December 31, 2024[66](index=66&type=chunk) [Prospects](index=23&type=section&id=Prospects) The Group will capitalize on infrastructure demand in Nantong, focusing on large-scale projects, leveraging strategic partnerships for stable raw material supply and cost optimization, and implementing smart manufacturing solutions to enhance efficiency and cash flow - The Group will continue to leverage the recovering infrastructure demand in Nantong and surrounding areas, focusing on large-scale transportation and urban renewal projects[67](index=67&type=chunk) - Leveraging the strategic partnership with Conch Cement to ensure stable raw material supply and cost optimization, aiming to further enhance gross profit margins while expanding production capacity[67](index=67&type=chunk) - Will implement smart manufacturing solutions to improve operational efficiency, strictly manage working capital, and maintain healthy cash flow[67](index=67&type=chunk) [Employment and Remuneration Policy](index=23&type=section&id=Employment%20and%20Remuneration%20Policy) As of June 30, 2025, the Group employed approximately 46 full-time employees and 150 outsourced workers, with total staff costs of RMB 7.2 million, and provides compensation based on roles, responsibilities, and performance - As of June 30, 2025, the Group employed approximately **46** full-time employees and **150** outsourced workers, with total staff costs of approximately **RMB 7.2 million**[68](index=68&type=chunk) - Remuneration is determined based on job scope, responsibilities, and performance, with discretionary bonuses and employer's liability insurance provided[69](index=69&type=chunk) - Employees and outsourced workers receive internal training on quality control, environmental protection, health, and workplace safety policies[71](index=71&type=chunk) [Liquidity and Financial Resources](index=24&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group had cash and cash equivalents of RMB 23.2 million, borrowings of RMB 49.5 million, a gearing ratio of 24.4%, a current ratio of 1.7 times, and net current assets of RMB 83.5 million | Metric | As of June 30, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | Cash and Cash Equivalents (RMB million) | 23.2 | 6.0 | | Borrowings (RMB million) | 49.5 | – | | Gearing Ratio | 24.4% | 0% | | Current Ratio | 1.7 times | 1.9 times | | Net Current Assets (RMB million) | 83.5 | 74.1 | [Market Risk](index=24&type=section&id=Market%20Risk) The Group faces market risks from changes in exchange rates, interest rates, and stock prices that could affect profitability, which management actively manages and monitors - Market risk is the risk that changes in market prices (such as exchange rates, interest rates, and equity prices) will affect the Group's profitability or its ability to achieve its business objectives[75](index=75&type=chunk) [Exchange Rate Risk](index=24&type=section&id=Exchange%20Rate%20Risk) The Group's operations primarily use RMB and HKD, with non-RMB denominated assets and liabilities mainly in HKD, and while there is no hedging policy, directors deem exchange rate risk not significant - The Group's operations primarily use RMB and HKD, with non-RMB denominated assets and liabilities mainly comprising HKD-denominated cash and cash equivalents and other payables[76](index=76&type=chunk) - The Group currently has no foreign currency hedging policy but closely monitors relevant foreign currency exchange rates to manage its foreign currency risk, and the Directors consider exchange rate risk not significant[77](index=77&type=chunk) [Material Investments, Acquisitions and Disposals](index=25&type=section&id=Material%20Investments,%20Acquisitions%20and%20Disposals) In January 2024, the Group acquired a 5% equity interest in Zhejiang Erge Technology Co., Ltd for RMB 15,107,500, with its fair value at RMB 15,814,000 as of June 30, 2025 - On January 18, 2024, the Group acquired a **5%** equity interest in Zhejiang Erge Technology Co., Ltd for **RMB 15,107,500**, a company primarily engaged in cooling systems for renewable energy generation equipment[78](index=78&type=chunk) - As of June 30, 2025, the fair value of the Group's interest in Zhejiang Erge was approximately **RMB 15,814,000**, representing approximately **4.9%** of the Group's total assets[79](index=79&type=chunk) [Pledge of Assets](index=25&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, buildings valued at approximately RMB 12,207 thousand and land use rights of approximately RMB 10,614 thousand were pledged as collateral for the Group's borrowings - As of June 30, 2025, buildings of approximately **RMB 12,207,000** and land use rights of approximately **RMB 10,614,000** were pledged as collateral for the Group's borrowings[81](index=81&type=chunk) [Other Information](index=26&type=section&id=Other%20Information) This section provides other important information, including interim dividends, corporate governance practices, directors' securities dealings, and audit committee review [Interim Dividends](index=26&type=section&id=Interim%20Dividends) The Board does not recommend paying any interim dividend for the period, consistent with the prior year - The Board does not recommend paying any interim dividend for the period (six months ended June 30, 2024: nil)[83](index=83&type=chunk) [Purchase, Redemption or Sale of the Company's Listed Securities](index=26&type=section&id=Purchase,%20Redemption%20or%20Sale%20of%20the%20Company's%20Listed%20Securities) Neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the period, and held no treasury shares as of June 30, 2025 - Neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the period[84](index=84&type=chunk) [Code on Corporate Governance Practices](index=26&type=section&id=Code%20on%20Corporate%20Governance%20Practices) The company has adopted and complied with the Corporate Governance Code, except for the separation of Chairman and CEO roles, which the Board believes is adequately safeguarded - The company has adopted and complied with the Corporate Governance Code set out in Appendix C1 of the Listing Rules during the period, except for Code Provision C.2.1 (separation of the roles of Chairman and Chief Executive Officer)[85](index=85&type=chunk)[86](index=86&type=chunk) - Ms Wang Xianyu serves as both the Chairperson of the Board and the Chief Executive Officer of the Group, an arrangement the Board believes is in the Group's best interests and adequately safeguarded to balance power[86](index=86&type=chunk) [Model Code for Securities Transactions by Directors](index=27&type=section&id=Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers, and all directors confirmed compliance during the period - The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 of the Listing Rules, and all Directors have confirmed compliance with the Code during the period[87](index=87&type=chunk) [Audit Committee](index=27&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors, reviews and monitors financial reporting, risk management, and internal controls, and has reviewed the financial information in this interim results announcement - The Audit Committee comprises three independent non-executive Directors, whose primary responsibilities include reviewing and monitoring the Group's financial reporting process, risk management, and internal control systems[88](index=88&type=chunk) - The financial information in this interim results announcement has not been audited by the company's external auditors but has been reviewed by the Audit Committee[89](index=89&type=chunk) [Publication of Unaudited Interim Report](index=27&type=section&id=Publication%20of%20Unaudited%20Interim%20Report) The company's 2025 interim report will be published in due course on the HKEXnews website and the company's website - The company's 2025 interim report will be published in due course on the HKEXnews website www.hkexnews.hk and the company's website www.tailamgroup.com[90](index=90&type=chunk) [Acknowledgement](index=27&type=section&id=Acknowledgement) The Board extends its sincere gratitude to shareholders, management, all employees, customers, and business partners, acknowledging them as the cornerstone of the company's success - The Board extends its sincere gratitude to shareholders, management, all employees, customers, and business partners, acknowledging them as the cornerstone of the company's success[91](index=91&type=chunk) [Board of Directors Information](index=27&type=section&id=Board%20of%20Directors%20Information) As of the announcement date, the Board comprises Executive Directors Ms Wang Xianyu (Chairperson and CEO), Mr Wang Chaowei, and Ms Jiang Yin Juan; Non-executive Director Mr Wang Liangyou; and Independent Non-executive Directors Ms Huang Xiaoyan, Mr Li Zhenyu, and Mr Cui Yushu - Executive Directors are Ms Wang Xianyu (Chairperson and CEO), Mr Wang Chaowei, and Ms Jiang Yin Juan; Non-executive Director is Mr Wang Liangyou; Independent Non-executive Directors are Ms Huang Xiaoyan, Mr Li Zhenyu, and Mr Cui Yushu[93](index=93&type=chunk)

中期報告 Interim Report 2025 目錄 CONTENTS | 2 | 公司資料 | Corporate Information | | --- | --- | --- | | 5 | 主席報告 | Chairman's Statement | | 13 | 管理層討論與分析 | Management Discussion and Analysis | | 24 | 綜合損益表 | Consolidated Income Statement | | 25 | 綜合損益及其他全面收益表 | Consolidated Statement of Profit or Loss and | | | | Other Comprehensive Income | | 26 | 綜合財務狀況表 | Consolidated Statement of Financial Position | | 28 | 綜合權益變動表 | Consolidated Statement of Changes in Equity | | 29 | 簡明綜合現金流量表 | Condensed Consolidated Stateme ...

有關截至二零一七年至 二零二四年十二月三十一日止年度年報 之補充公告 茲提述富通科技發展控股有限公司（「本公司」，連同其附屬公司統稱「本集團」）截至二零 一七年至二零二四年十二月三十一日止年度之年報（「該等年報」）。除文義另有所指外， 本公告所用詞彙與該等年報所界定者具有相同涵義。 董事會謹此根據上市規則附錄D2（「附錄D2」）第24段提供以下有關本公司前任行政總裁趙 偉先生（「趙先生」，於二零一七年十一月十七日獲委任，並自二零二四年二月一日辭任） 之酬金的補充資料。 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份內容而 產生或因倚賴該等內容而引致之任何損失承擔任何責任。 Futong Technology Development Holdings Limited 465 趙先生於截至二零一七年至二零二四年十二月三十一日止各年度就任職本公司行政總裁 之酬金載列如下： | | | | 以股份為 | 界定供款 | | | --- | --- | --- | --- | --- | --- | | 行政總裁 | 袍 ...

於開曼群島註冊成立之有限公司 2025 中期報告 2025 中期報告 公司資料 董事會 主席兼非執行董事 艾樂德BA, MA, MA, PhD 執行董事 蘇慰國BSc, PhD 首席執行官兼首席科學官 鄭澤鋒BEc, CA(ANZ) 首席財務官 非執行董事 施熙德BSE, MA, MA, EdM, Solicitor, FCG, HKFCG 楊凌BA, BSc, MBA 獨立非執行董事 莫樹錦BMSc, MD, FRCPC, FHKCP, FHKAM, FRCP(Edin), FASCO (1) 高級兼首席獨立非執行董事 言思雅MBBS, MBA 卡博樂BA, FCMA (2) 胡朝紅BSc, PhD 蓆紀倫BCom, CA(ANZ), FCPA (3) 黃德偉BCom, FCPA, CA(ANZ) 審核委員會 蓆紀倫 （主席） (3) 黃德偉 （主席） (4) 言思雅 卡博樂 (2) 胡朝紅 (5) 提名委員會 莫樹錦 （主席） 艾樂德 胡朝紅 蓆紀倫 (3) 附註： (1) 於 2025年 5月 13日獲委任為高級兼首席獨立非執行董事 薪酬委員會 卡博樂 （主席） (2) 言思雅 （主席） (6) 蓆紀倫 ...

[Company Information](index=3&type=section&id=Company%20Information) [Company Information Overview](index=3&type=section&id=Company%20Information%20Overview) This section provides basic administrative information about Kiddieland International Company Limited, including board members, committee composition, company secretary, auditor, principal bankers, registered office, and share registrar - Ms. Lo Siu Shan was appointed Chairman on June 28, 2025, and Ms. Sin Lo Siu Wai serves as Chief Executive Officer[4](index=4&type=chunk) - Mr. Sit Hon Wing chairs the Audit Committee, Mr. Cheng Tsz Lung chairs the Remuneration Committee, and Mr. Man Ka Ho chairs the Nomination Committee[4](index=4&type=chunk) - The company's auditor is PricewaterhouseCoopers, and its principal banker is The Hongkong and Shanghai Banking Corporation Limited[4](index=4&type=chunk) - The company's website is www.kiddieland.com.hk, and its stock code is 3830[5](index=5&type=chunk) [Chairman's Statement](index=4&type=section&id=Chairman's%20Statement) [Annual Results Review and Outlook](index=4&type=section&id=Annual%20Results%20Review%20and%20Outlook) The Chairman's Statement reviews the Group's operating performance for the year ended April 30, 2025, noting decreased revenue in toy and laboratory equipment businesses due to a weak global economy, but reduced net loss through cost control, and expresses confidence in the future potential of the laboratory equipment business - Global economic downturn led to consumer downgrading, with consumers prioritizing price-value propositions, impacting toy business revenue and average selling prices[6](index=6&type=chunk) 2025 Fiscal Year Business Revenue Changes | Business Segment | 2025 Revenue (Million HKD) | 2024 Revenue (Million HKD) | Year-on-Year Change | Change Rate | | :--------------- | :------------------------- | :------------------------- | :------------------ | :---------- | | Toy Business | 146.3 | 155.7 | -9.4 | -6.0% | | Lab Equipment Business | 50.5 | 59.5 | -9.0 | -15.1% | | **Group Total Revenue** | **196.9** | **215.1** | **-18.2** | **-8.5%** | - Despite sales decline, the toy business achieved profitability through significant cost cutting and expense control[6](index=6&type=chunk) - Laboratory equipment business revenue decreased due to the National Development and Reform Commission's new plan causing local government investment projects to be put on hold, but the company remains confident in its future potential[7](index=7&type=chunk) - The Group's net loss decreased from approximately **HKD 7.3 million in 2024** to approximately **HKD 7.0 million in 2025**, primarily due to cost control and expense reduction[7](index=7&type=chunk) [Management Discussion and Analysis](index=5&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=5&type=section&id=Business%20Review) This section details the performance of the toy and laboratory equipment businesses, highlighting the toy business's profitability despite tariff impacts and the laboratory equipment business's engagement in government education equipment renovation plans for future growth - The toy business achieved profitability after transitioning to an asset-light outsourcing model, but revenue decreased by **6.0% to approximately HKD 146.3 million** due to US tariff issues[9](index=9&type=chunk) - Kiddieland Technology (laboratory equipment business) actively aligned with China's education policy, investing in R&D for smart laboratory products like AI scoring systems, and successfully won bids for laboratory renovation projects in Jiangxi and Hubei provinces[9](index=9&type=chunk)[10](index=10&type=chunk) - Laboratory equipment business revenue decreased by **15.1% to approximately HKD 50.5 million**, mainly because the National Development and Reform Commission's new policy led to the temporary suspension of local government investment projects[11](index=11&type=chunk) - The Group's total revenue decreased by **8.5% to approximately HKD 196.9 million**, and the net loss attributable to owners of the Company decreased to approximately **HKD 7.0 million**, primarily due to a significant reduction in administrative expenses[11](index=11&type=chunk) [Financial Review](index=5&type=section&id=Financial%20Review) This section analyzes the Group's financial performance, including revenue by region, gross profit, expenses, tax, net loss, and liquidity, revealing decreased revenue, significantly reduced administrative expenses, and changes in current ratio and net current assets Revenue by Region Changes | Region | 2025 Revenue (Million HKD) | 2024 Revenue (Million HKD) | Year-on-Year Change | Change Rate | | :----- | :------------------------- | :------------------------- | :------------------ | :---------- | | North America | 82.7 | 92.5 | -9.8 | -10.6% | | Europe | 47.4 | 48.1 | -0.7 | -1.5% | | Lab Equipment Business | 50.5 | 59.5 | -9.0 | -15.1% | | **Group Total Revenue** | **196.9** | **215.1** | **-18.2** | **-8.5%** | - North American revenue decline was primarily due to reduced revenue in the most developed local countries, a shift in product mix towards lower-priced products, and delayed or canceled orders due to US tariff policies[12](index=12&type=chunk) - European revenue slightly decreased, mainly affected by the economic downturn in Eastern Europe due to the Russia-Ukraine war and reduced purchasing power from USD appreciation[13](index=13&type=chunk) - The Group's gross profit decreased by **10.1% to approximately HKD 29.4 million**, mainly due to reduced revenue, increased manufacturing costs in the laboratory equipment business, and inventory impairment provisions[16](index=16&type=chunk) - Administrative expenses significantly decreased by **23.1% to approximately HKD 22.0 million**, primarily due to reduced administrative staff costs in the laboratory equipment business and operating lease expenses in the toy business[18](index=18&type=chunk) - The Group recorded a net loss attributable to owners of the Company of approximately **HKD 7.0 million** (2024: HKD 7.3 million), with the reduction in loss mainly attributable to a significant decrease in administrative expenses[21](index=21&type=chunk) Liquidity Indicators | Indicator | April 30, 2025 (Thousand HKD) | April 30, 2024 (Thousand HKD) | Year-on-Year Change | | :-------- | :---------------------------- | :---------------------------- | :------------------ | | Inventories | 8,538 | 9,831 | -1,293 | | Trade Receivables | 8,333 | 8,731 | -398 | | Trade and Bills Payables | 6,453 | 4,908 | +1,545 | | Cash and Cash Equivalents | 7,000 | 7,300 | -300 | | Current Ratio | 1.0 | 1.1 | -0.1 | | Net Current Assets | 0.3 | 3.4 | -3.1 | | Unutilized Bank Credit Facilities | 69.1 Million HKD | 212.1 Million HKD | -143.0 | [Foreign Currency Risk](index=8&type=section&id=Foreign%20Currency%20Risk) The Group's toy business is primarily denominated in HKD and USD, while the laboratory equipment business is in RMB; management considers USD risk low due to the HKD peg but will closely monitor RMB movements - Toy business sales, purchases, and expenses are mainly denominated in HKD and USD, while the laboratory equipment business is denominated in RMB[26](index=26&type=chunk) - Due to the HKD peg to the USD, foreign exchange risk from the USD is expected to be minimal, but RMB movements will be closely monitored[27](index=27&type=chunk) - As of April 30, 2025, the Group had not entered into any financial instruments to hedge foreign currencies[28](index=28&type=chunk) [Employees and Remuneration Policy](index=8&type=section&id=Employees%20and%20Remuneration%20Policy) The Group employs 109 full-time staff in Hong Kong and China, with remuneration based on performance, experience, and industry practice, maintaining stable management and administrative personnel - As of April 30, 2025, the Group employed 109 full-time management, administrative, and production personnel in Hong Kong and China[29](index=29&type=chunk) - Remuneration is based on individual performance, experience, and current industry practice, with the number of production factory workers fluctuating seasonally and management and administrative personnel remaining stable[29](index=29&type=chunk) [Environmental, Social and Corporate Responsibility](index=8&type=section&id=Environmental,%20Social%20and%20Corporate%20Responsibility) The Group is committed to environmental sustainability, integrating social responsibility into daily operations, and actively implementing eco-friendly measures like solar panels and energy-saving devices in its China factory - The Group is committed to achieving environmental sustainability, integrating social responsibility into daily operations, and implementing corporate social responsibility strategies[30](index=30&type=chunk) - The China factory has installed solar panels and energy-saving devices for machinery, and implements environmental measures such as recycling and using recycled paper[30](index=30&type=chunk) - Details of the Environmental, Social and Governance Report are provided on pages 30 to 56 of this annual report[31](index=31&type=chunk) [Material Investments Held](index=8&type=section&id=Material%20Investments%20Held) The Group held no other material investments during the reporting period, apart from investments in subsidiaries - Apart from investments in subsidiaries, the Group held no other material investments during the year[32](index=32&type=chunk) [Capital Commitments](index=8&type=section&id=Capital%20Commitments) As of the end of the reporting period, the Group had no contracted but unprovided commitments for the acquisition of property, plant, and equipment in the consolidated financial statements - As of April 30, 2025, the Group had no commitments for the acquisition of property, plant, and equipment that were contracted but not yet provided for in the consolidated financial statements[33](index=33&type=chunk) [Contingent Liabilities](index=8&type=section&id=Contingent%20Liabilities) As of the end of the reporting period, the Group had no other significant contingent liabilities - As of April 30, 2025, the Group had no other significant contingent liabilities[34](index=34&type=chunk) [Outlook/Future Prospects and Strategies](index=9&type=section&id=Outlook%2FFuture%20Prospects%20and%20Strategies) The Group plans to navigate an unstable global economy by innovating in toys, enhancing supply chain resilience, and expanding online, while Kiddieland Technology will focus on system optimization, product innovation, market expansion, and cost reduction in laboratory equipment to seize education sector opportunities - The global economic situation is unstable, geopolitical tensions are high, and US tariffs affect consumer spending sentiment, leading to increased freight costs and extended delivery cycles[35](index=35&type=chunk) - Kiddieland will continue to develop creative, high-quality, and competitive licensed toy products, and plans to establish warehousing facilities in the US to enhance supply chain resilience and expand online business[35](index=35&type=chunk)[36](index=36&type=chunk) - Kiddieland Technology (laboratory equipment business) will focus on four key areas: business systems (regular business and NDRC projects), product optimization and technological innovation, market expansion, and cost reduction and efficiency improvement[36](index=36&type=chunk)[39](index=39&type=chunk) - Kiddieland Technology's experimental teaching management system, AI experimental operation examination system, and teacher demonstration system have been incorporated into the Ministry of Education's new configuration standards, expected to significantly increase its market share in high school laboratory equipment[36](index=36&type=chunk) - Kiddieland Technology will continue to participate in laboratory renovation projects by the NDRC in multiple provinces and cities, involving funds of approximately **RMB 1.357 billion**[36](index=36&type=chunk) - The company will reduce R&D and operation and maintenance costs through modular design and cloud service support systems, improving customer issue response time by **30%**[39](index=39&type=chunk) [Directors and Senior Management](index=10&type=section&id=Directors%20and%20Senior%20Management) [Executive Directors](index=10&type=section&id=Executive%20Directors) This section introduces the Group's four executive directors, including the new Chairman Ms. Lo Siu Shan and CEO Ms. Sin Lo Siu Wai, along with Mr. Lo Hung and Ms. Leung Siu Lin, detailing their extensive experience in the toy industry and respective responsibilities - Ms. Lo Siu Shan (53) was appointed Chairman effective June 28, 2025, responsible for product cost calculation, pricing, factory audits, and procurement activities, with over **22 years of experience** in the toy industry[40](index=40&type=chunk) - Ms. Sin Lo Siu Wai (50) is the Chief Executive Officer, responsible for overseeing the Group's overall business operations, sales and marketing, licensing relationships, and product development, with over **25 years of experience** in the toy industry[41](index=41&type=chunk) - Mr. Lo Hung (81) is responsible for overseeing the daily operations of the Dongguan production factory in China and managing product development personnel, with over **58 years of experience** in the toy industry[42](index=42&type=chunk) - Ms. Leung Siu Lin (79) is responsible for managing the Group's overall financial matters and overseeing monthly shipments, with over **54 years of experience** in the toy industry[43](index=43&type=chunk) [Independent Non-Executive Directors](index=12&type=section&id=Independent%20Non-Executive%20Directors) This section lists the Group's three independent non-executive directors: Mr. Man Ka Ho, Mr. Cheng Tsz Lung, and Mr. Sit Hon Wing, briefly outlining their professional backgrounds and committee roles within the company - Mr. Man Ka Ho (48) is an Independent Non-Executive Director, also serving as Chairman of the Nomination Committee and a member of the Audit and Remuneration Committees, with over **18 years of experience** in the legal field[45](index=45&type=chunk) - Mr. Cheng Tsz Lung (53) is an Independent Non-Executive Director, also serving as Chairman of the Remuneration Committee and a member of the Audit and Nomination Committees, and previously worked as a management consultant at Ernst & Young[45](index=45&type=chunk) - Mr. Sit Hon Wing (48) is an Independent Non-Executive Director, also serving as Chairman of the Audit Committee and a member of the Remuneration and Nomination Committees, with over **22 years of experience** as a financial controller and company secretary[46](index=46&type=chunk) [Senior Management](index=12&type=section&id=Senior%20Management) This section introduces the Group's two senior management members: Mr. Cheung Ka Cheong, Financial Controller and Company Secretary, and Ms. Chong Lai Ni, Sales Director, outlining their respective responsibilities and professional experience - Mr. Cheung Ka Cheong (38) is the Financial Controller and Company Secretary, overseeing the accounting department, preparing financial statements, and maintaining banking relationships, with over **16 years of accounting experience**[47](index=47&type=chunk) - Ms. Chong Lai Ni (57) is the Sales Director, primarily responsible for product sales activities to customers in North America, Europe, Japan, and Australia, with over **31 years of experience** in the toy industry[47](index=47&type=chunk) [Directors' Report](index=13&type=section&id=Directors'%20Report) [Principal Activities](index=13&type=section&id=Principal%20Activities) The Group primarily engages in the manufacturing and distribution of plastic toy products (including outdoor sports toys, infant and preschool toys) and laboratory equipment, with products sold in local and overseas markets - The Company primarily engages in the manufacturing and distribution of plastic toy products (outdoor sports toys, infant and preschool toys) and laboratory equipment[49](index=49&type=chunk) - Products are distributed to local and overseas markets[49](index=49&type=chunk) [Results and Appropriations](index=13&type=section&id=Results%20and%20Appropriations) The Group's results for the year ended April 30, 2025, are presented in the consolidated statement of comprehensive income, and the Board resolved not to declare any final or interim dividends - The Group's results for the year ended April 30, 2025, are presented in the consolidated statement of comprehensive income on pages 62 to 63 of this annual report[51](index=51&type=chunk) - The Board resolved not to declare any final dividend for the year ended April 30, 2025, or any interim dividend for the six months ended October 31, 2024[52](index=52&type=chunk) [Dividend Policy](index=13&type=section&id=Dividend%20Policy) The Company has adopted a dividend policy to allow shareholders to share profits while retaining reserves for future development, with dividend declarations at the Board's discretion, considering various financial and market factors - The Company adopted a dividend policy aimed at allowing shareholders to share profits while retaining reserves for future development[53](index=53&type=chunk) - The Board will consider factors such as actual and expected financial performance, retained earnings, working capital requirements, liquidity position, economic conditions, and legal restrictions when determining dividends[53](index=53&type=chunk)[54](index=54&type=chunk) [Closure of Register of Members to Determine Entitlement to Attend and Vote at Annual General Meeting](index=14&type=section&id=Closure%20of%20Register%20of%20Members%20to%20Determine%20Entitlement%20to%20Attend%20and%20Vote%20at%20Annual%20General%20Meeting) To determine shareholders' eligibility to attend the Annual General Meeting on September 26, 2025, the Company will close its register of members from September 24 to 26, 2025, requiring shareholders to register by 4:30 p.m. on September 23, 2025 - To determine shareholders' eligibility to attend the Annual General Meeting on September 26, 2025, the register of members will be closed from September 24 to 26, 2025[55](index=55&type=chunk) - Shareholders must submit transfer forms and share certificates to Tricor Investor Services Limited for registration no later than 4:30 p.m. on September 23, 2025[55](index=55&type=chunk) [Business Review](index=14&type=section&id=Business%20Review) Details of the Group's business review are provided in the "Management Discussion and Analysis" section on page 4 of this annual report - The Group's business review is provided in the "Management Discussion and Analysis" section on page 4 of this annual report[56](index=56&type=chunk) [Financial Summary](index=14&type=section&id=Financial%20Summary) A summary of the Group's published results, assets, and liabilities for the past five financial years is presented on page 128 of this annual report - A summary of the Group's published results, assets, and liabilities for the past five financial years is presented on page 128 of this annual report[57](index=57&type=chunk) [Share Capital](index=14&type=section&id=Share%20Capital) Details of changes in the Company's share capital are provided in Note 24 to the consolidated financial statements - Details of changes in the Company's share capital are provided in Note 24 to the consolidated financial statements[58](index=58&type=chunk) [Reserves](index=14&type=section&id=Reserves) Details of changes in the Group's and the Company's reserves during the year are presented in the consolidated statement of changes in equity, Note 25, and Note 35 to the consolidated financial statements - Details of changes in the Group's and the Company's reserves during the year are presented in the consolidated statement of changes in equity, Note 25, and Note 35 to the consolidated financial statements[59](index=59&type=chunk) - Distributable reserves are presented in Note 25 to the consolidated financial statements[60](index=60&type=chunk) [Donations](index=14&type=section&id=Donations) The Group made no charitable donations for the year ended April 30, 2025 - The Group made no charitable donations for the year ended April 30, 2025 (2024: Nil)[61](index=61&type=chunk) [Bank Loans](index=14&type=section&id=Bank%20Loans) Details of the Group's bank loans and other borrowings as of April 30, 2025, are provided in Note 27 to the consolidated financial statements - Details of the Group's bank loans and other borrowings as of April 30, 2025, are provided in Note 27 to the consolidated financial statements[62](index=62&type=chunk) [Property, Plant and Equipment](index=14&type=section&id=Property,%20Plant%20and%20Equipment) Changes in the Group's property, plant, and equipment during the year are presented in Note 17 to the consolidated financial statements - Changes in the Group's property, plant, and equipment during the year are presented in Note 17 to the consolidated financial statements[63](index=63&type=chunk) [Subsidiaries](index=15&type=section&id=Subsidiaries) Details of the Company's principal subsidiaries as of April 30, 2025, are provided in Note 34 to the consolidated financial statements - Details of the Company's principal subsidiaries as of April 30, 2025, are provided in Note 34 to the consolidated financial statements[64](index=64&type=chunk) [Major Customers and Suppliers](index=15&type=section&id=Major%20Customers%20and%20Suppliers) The Group's sales are highly concentrated among its top five customers, accounting for 30.9% of total sales, while purchases are highly concentrated among its top five suppliers, accounting for 78.8% of total purchases Major Customers and Suppliers Proportion | Category | Proportion | | :------- | :--------- | | Largest Customer | 7.5% | | Top Five Customers Total | 30.9% | | Largest Supplier | 51.6% | | Top Five Suppliers Total | 78.8% | [Pre-emptive Rights](index=15&type=section&id=Pre-emptive%20Rights) There are no provisions in the Company's articles of association or Cayman Islands law requiring the Company to offer new shares proportionally to existing shareholders - There are no provisions in the Company's articles of association or Cayman Islands law regarding pre-emptive rights[66](index=66&type=chunk) [Directors](index=15&type=section&id=Directors) This section lists the Board members as of the reporting date and notes that Ms. Lo Siu Shan, Mr. Cheng Tsz Lung, and Mr. Sit Hon Wing will retire and be eligible for re-election at the upcoming Annual General Meeting - Ms. Lo Siu Shan was appointed Chairman on June 28, 2025, and Mr. Lo Hung resigned as Chairman on June 27, 2025[67](index=67&type=chunk) - Ms. Lo Siu Shan, Mr. Cheng Tsz Lung, and Mr. Sit Hon Wing will retire at the upcoming Annual General Meeting and are eligible for re-election[67](index=67&type=chunk) [Biographical Details of Directors, Senior Management and Company Secretary](index=16&type=section&id=Biographical%20Details%20of%20Directors,%20Senior%20Management%20and%20Company%20Secretary) Biographical details of the Company's directors, the Group's senior management, and the Company Secretary are provided on pages 10 to 11 of this annual report - Biographical details of the Company's directors, the Group's senior management, and the Company Secretary are provided on pages 10 to 11 of this annual report[68](index=68&type=chunk) [Directors' Service Agreements](index=16&type=section&id=Directors'%20Service%20Agreements) Executive directors entered into renewed three-year service agreements on September 20, 2023, and independent non-executive directors also have three-year appointment letters, with all appointments subject to rotation provisions - Each executive director entered into a renewed three-year service agreement with the Company on September 20, 2023[69](index=69&type=chunk) - Independent non-executive directors Mr. Man Ka Ho, Mr. Cheng Tsz Lung, and Mr. Sit Hon Wing also have three-year appointment letters, with an annual director's fee of **HKD 60,000**[69](index=69&type=chunk) - All directors' appointments are subject to the provisions of the articles of association regarding directors' retirement by rotation[69](index=69&type=chunk) [Changes in Directors' Information](index=16&type=section&id=Changes%20in%20Directors'%20Information) Mr. Sit Hon Wing was appointed as an executive director of Tian誉 Property (Holdings) Limited on February 18, 2025, in accordance with Listing Rule 13.51B(1) - Mr. Sit Hon Wing was appointed as an executive director of Tian誉 Property (Holdings) Limited (stock code: 0059), a company listed on the Stock Exchange, on February 18, 2025[70](index=70&type=chunk) [Remuneration Policy](index=16&type=section&id=Remuneration%20Policy) The Group's employee remuneration policy is set by the Board and reviewed by the Remuneration Committee, while directors' remuneration is determined by the Board and reviewed by the Remuneration Committee, with a share option scheme adopted to incentivize directors and eligible employees - The Group's employee remuneration policy is formulated by the Board and reviewed by the Remuneration Committee with reference to their merits, qualifications, and abilities[71](index=71&type=chunk) - The remuneration of the Company's directors is determined by the Board and reviewed by the Remuneration Committee, with reference to operating results, individual performance, and market statistics[72](index=72&type=chunk) - The Company has adopted a share option scheme to incentivize its directors and eligible employees[73](index=73&type=chunk) [Retirement Benefit Schemes](index=17&type=section&id=Retirement%20Benefit%20Schemes) The Group participates in a Mandatory Provident Fund Scheme for employees of its Hong Kong subsidiaries, and employees of its China subsidiaries are members of retirement schemes implemented by the Chinese government - The Group participates in a Mandatory Provident Fund Scheme for employees of its Hong Kong subsidiaries[74](index=74&type=chunk) - Employees of China subsidiaries are members of retirement schemes implemented by the Chinese government, and the company is required to make contributions at a certain percentage[74](index=74&type=chunk) [Permitted Indemnity Provision](index=17&type=section&id=Permitted%20Indemnity%20Provision) According to the articles of association, each director is entitled to be indemnified out of the Company's assets for all losses or liabilities incurred or arising from the performance of their duties or other related matters - According to the articles of association, each director is entitled to be indemnified out of the Company's assets for all losses or liabilities incurred or arising from the performance of their duties or other related matters[75](index=75&type=chunk) [Directors' Interests in Competing Business](index=17&type=section&id=Directors'%20Interests%20in%20Competing%20Business) As of April 30, 2025, no director held any interest in any business directly or indirectly competing or likely to compete with the Group's business, other than the Group's own operations - As of April 30, 2025, no director held any interest in any business directly or indirectly competing or likely to compete with the Group's business[76](index=76&type=chunk) [Directors' Material Interests in Transactions, Arrangements or Contracts Significant to the Company's Business](index=17&type=section&id=Directors'%20Material%20Interests%20in%20Transactions,%20Arrangements%20or%20Contracts%20Significant%20to%20the%20Company's%20Business) Except for related party transactions disclosed in Note 32 to the consolidated financial statements, no director and/or any of their associates had a material interest, directly or indirectly, in any transaction, arrangement, or contract significant to the Group's business - Except for related party transactions disclosed in Note 32 to the consolidated financial statements, no director and/or any of their associates had a material interest, directly or indirectly, in any transaction, arrangement, or contract significant to the Group's business[77](index=77&type=chunk) [Related Party Transactions](index=17&type=section&id=Related%20Party%20Transactions) Details of related party transactions entered into by the Group for the year ended April 30, 2025, are provided in Note 32 to the consolidated financial statements - Details of related party transactions entered into by the Group for the year ended April 30, 2025, are provided in Note 32 to the consolidated financial statements[78](index=78&type=chunk) [Continuing Connected Transactions](index=17&type=section&id=Continuing%20Connected%20Transactions) The Company renewed an office lease agreement with Dragon Enterprise Investment Limited, which constitutes a continuing connected transaction and has been confirmed by the independent auditor to comply with Listing Rule requirements - Kiddieland Toys Limited, a wholly-owned subsidiary of the Company, renewed an office lease agreement with Dragon Enterprise Investment Limited for a monthly rent of **HKD 120,000** for a period of **12 months**[79](index=79&type=chunk) - Dragon Enterprise Investment Limited is 50% owned by Executive Director Mr. Lo Hung and his spouse Ms. Leung Siu Lin, respectively, thus constituting a connected transaction[80](index=80&type=chunk) - The independent auditor confirmed no instances where continuing connected transactions were not approved by the Board, not entered into in accordance with the relevant agreements, or exceeded the annual caps[80](index=80&type=chunk) [Rights to Acquire Securities of the Company and Equity-linked Agreements](index=19&type=section&id=Rights%20to%20Acquire%20Securities%20of%20the%20Company%20and%20Equity-linked%20Agreements) Except for the share option scheme, neither the Company nor any of its holding companies or subsidiaries entered into any arrangements during the year that would entitle the Company's directors or chief executives or their respective associates to subscribe for securities of the Company or any associated corporation, or to benefit from acquiring shares or debentures of the Company or any other body corporate - Except for the share option scheme, neither the Company nor any of its holding companies or subsidiaries entered into any arrangements during the year that would entitle the Company's directors or chief executives or their respective associates to subscribe for securities of the Company or any associated corporation, or to benefit from acquiring shares or debentures of the Company or any other body corporate[82](index=82&type=chunk) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company or any Associated Corporation](index=19&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares,%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20or%20any%20Associated%20Corporation) As of April 30, 2025, Ms. Sin Lo Siu Wai held 100% equity in associated corporation KLH Capital Limited; other than this, no director or chief executive held any disclosable interests or short positions in the shares, underlying shares, and debentures of the Company or its associated corporations Directors' Long Positions in Shares of Associated Corporations | Director Name | Capacity | Nature of Interest | Number of Shares (Ordinary Shares) | Approximate Percentage of Shareholding in KLH Capital | | :------------ | :------- | :----------------- | :--------------------------------- | :------------------------------------ | | Ms. Sin Lo Siu Wai | Beneficial Owner | Personal | 10,000 | 100% | - Except for the above disclosure, no director or chief executive of the Company held any interests or short positions in the shares, underlying shares, and debentures of the Company or any of its associated corporations that are required to be recorded in the register kept under Section 352 of the Securities and Futures Ordinance or to be notified to the Company and the Stock Exchange under the Model Code[83](index=83&type=chunk) [Substantial Shareholders' Interests and Short Positions in Shares and Underlying Shares of the Company](index=20&type=section&id=Substantial%20Shareholders'%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares%20of%20the%20Company) As of April 30, 2025, substantial shareholder KLH Capital held 75% of the Company's shares, wholly owned by Executive Director Ms. Sin Lo Siu Wai Substantial Shareholders' Long Positions in Shares | Shareholder Name | Capacity | Number of Shares (Ordinary Shares) | Approximate Percentage of Shareholding in the Company | | :--------------- | :------- | :--------------------------------- | :------------------------------------ | | KLH Capital | Beneficial Owner | 750,000,000 | 75% | - KLH Capital is 100% owned by Ms. Sin Lo Siu Wai, an executive director of the Company[84](index=84&type=chunk) [Share Option Scheme](index=20&type=section&id=Share%20Option%20Scheme) The Company adopted a share option scheme in 2017 to incentivize directors, employees, and other selected participants; the scheme is valid for 10 years, with no outstanding options as of April 30, 2025, and a total of 100,000,000 shares available for grant - The Company's share option scheme was approved and adopted by shareholders on August 31, 2017, to grant share options as incentives to directors, employees, or other selected participants[85](index=85&type=chunk) - For the years ended April 30, 2025, and 2024, no share options were granted, exercised, canceled, or lapsed, and there were no outstanding share options[85](index=85&type=chunk) - As of April 30, 2025, the total number of shares available for grant or to be issued upon exercise of all options under the scheme was **100,000,000 shares**, representing **10.0%** of the Company's total issued shares[85](index=85&type=chunk) - The share option scheme will be valid and effective for **10 years** from the date of adoption[89](index=89&type=chunk) - The subscription price for share options will be determined by the Board and shall be at least the highest of the closing price on the Stock Exchange on the offer date, the average closing price for the five business days immediately preceding the offer date, or the nominal value of the shares[91](index=91&type=chunk)[93](index=93&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=23&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20Listed%20Securities) For the year ended April 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - For the year ended April 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[97](index=97&type=chunk) [Events After Reporting Period](index=23&type=section&id=Events%20After%20Reporting%20Period) As of the date of this report, no significant events occurred after April 30, 2025 - As of the date of this report, no significant events occurred after April 30, 2025[98](index=98&type=chunk) [Public Float](index=23&type=section&id=Public%20Float) Based on publicly available information and the directors' knowledge, the Company's public float has complied with Listing Rule requirements (i.e., not less than 25%) from the listing date to the date of this report - From the listing date to the date of this report, the Company's public float has complied with Listing Rule requirements (i.e., not less than **25%**)[99](index=99&type=chunk) [Corporate Governance](index=23&type=section&id=Corporate%20Governance) The Company's principal corporate governance practices are outlined in the "Corporate Governance Report" section on pages 23 to 29 of this annual report - The Company's principal corporate governance practices are outlined in the "Corporate Governance Report" section on pages 23 to 29 of this annual report[100](index=100&type=chunk) [Auditor](index=23&type=section&id=Auditor) PricewaterhouseCoopers audited the consolidated financial statements for the year ended April 30, 2025, and will retire at the upcoming Annual General Meeting but are eligible for re-appointment - The consolidated financial statements for the year ended April 30, 2025, were audited by PricewaterhouseCoopers[101](index=101&type=chunk) - PricewaterhouseCoopers will retire at the upcoming Annual General Meeting but are eligible for re-appointment[101](index=101&type=chunk) [Corporate Governance Report](index=24&type=section&id=Corporate%20Governance%20Report) [Directors' Securities Transactions](index=24&type=section&id=Directors'%20Securities%20Transactions) The Company has adopted the Model Code, applicable to all directors and relevant employees, and confirms that all directors complied with the required standards throughout the year ended April 30, 2025 - The Company has adopted the Model Code, applicable to all directors and all relevant employees who have been informed of the provisions[104](index=104&type=chunk) - All directors have confirmed that they have complied with the required standards set out in the Model Code throughout the year ended April 30, 2025[104](index=104&type=chunk) [Board of Directors](index=24&type=section&id=Board%20of%20Directors) The Board comprises seven directors, including four executive and three independent non-executive directors, with clear separation of Chairman and CEO roles, ensuring independence of INEDs, and regular meetings to review financial statements and policies - The Board of Directors comprises **seven directors**: four executive directors and three independent non-executive directors[105](index=105&type=chunk) - The roles of Chairman and Chief Executive Officer are separate, held by Ms. Lo Siu Shan and Ms. Sin Lo Siu Wai, respectively[105](index=105&type=chunk) - The Board held one meeting during the year where the Chairman and independent non-executive directors met without the presence of other executive directors[105](index=105&type=chunk) - The Company believes that all independent non-executive directors have been independent from their respective appointment dates up to April 30, 2025[105](index=105&type=chunk) Board and Committee Meeting Attendance Record (FY2025) | Director Name | Board Meetings & General Meetings | Audit Committee Meetings | Remuneration Committee Meetings | Nomination Committee Meetings | | :------------ | :------------------------------ | :----------------------- | :------------------------------ | :---------------------------- | | Ms. Lo Siu Shan | 5/5 | 0/0 | 0/0 | 0/0 | | Ms. Sin Lo Siu Wai | 5/5 | 0/0 | 0/0 | 0/0 | | Mr. Lo Hung | 5/5 | 0/0 | 0/0 | 0/0 | | Ms. Leung Siu Lin | 5/5 | 0/0 | 0/0 | 0/0 | | Mr. Man Ka Ho | 5/5 | 3/3 | 1/1 | 1/1 | | Mr. Cheng Tsz Lung | 5/5 | 3/3 | 1/1 | 1/1 | | Mr. Sit Hon Wing | 5/5 | 3/3 | 1/1 | 1/1 | [Continuous Professional Development of Directors](index=25&type=section&id=Continuous%20Professional%20Development%20of%20Directors) All directors engage in continuous professional development to update their knowledge and skills, staying informed of the latest amendments to Listing Rules, Companies Ordinance, and Corporate Governance Code to effectively fulfill their duties - All directors participate in continuous professional development to develop and update their knowledge and skills, ensuring they contribute to the Board with comprehensive and relevant information[109](index=109&type=chunk) - Directors engage in continuous professional development by attending internal briefings, external seminars, and reading relevant materials[110](index=110&type=chunk) [Remuneration Committee](index=26&type=section&id=Remuneration%20Committee) The Remuneration Committee, composed of three independent non-executive directors and one executive director, is responsible for establishing a transparent remuneration policy, reviewing compensation for directors and senior management, and making recommendations on performance-linked remuneration - The Remuneration Committee comprises three independent non-executive directors (Mr. Cheng Tsz Lung, Mr. Man Ka Ho, Mr. Sit Hon Wing) and one executive director (Ms. Sin Lo Siu Wai), with Mr. Cheng Tsz Lung serving as Chairman[111](index=111&type=chunk) - Its primary responsibilities include formulating a transparent remuneration policy, reviewing the remuneration policy and structure for directors and senior management, reviewing performance-linked remuneration, and making other remuneration-related recommendations[111](index=111&type=chunk) - The Remuneration Committee held a meeting on July 29, 2025, to review the remuneration policy, share option scheme, and remuneration packages for executive directors and senior management[111](index=111&type=chunk) [Nomination Committee](index=26&type=section&id=Nomination%20Committee) The Nomination Committee, comprising three independent non-executive directors and one executive director, is responsible for regularly reviewing the Board's structure, size, and composition, identifying qualified candidates, and assessing the independence of independent non-executive directors - The Nomination Committee comprises three independent non-executive directors (Mr. Man Ka Ho, Mr. Cheng Tsz Lung, Mr. Sit Hon Wing) and one executive director (Ms. Sin Lo Siu Wai), with Mr. Man Ka Ho serving as Chairman[112](index=112&type=chunk) - Its primary responsibilities include regularly reviewing the Board's structure, size, and composition, making recommendations on director appointments and removals, identifying qualified candidates, and assessing the independence of independent non-executive directors[112](index=112&type=chunk) - The Nomination Committee held a meeting on July 29, 2025, to review the implementation and effectiveness of the Board Diversity Policy[112](index=112&type=chunk) [Board Diversity Policy](index=26&type=section&id=Board%20Diversity%20Policy) The Company adopted a Board Diversity Policy in 2017 to promote diversity among Board members by considering factors such as gender, age, cultural and educational background, and professional experience, to achieve strategic goals and sustainable development - The Company adopted a Board Diversity Policy in 2017 to promote diversity among Board members[113](index=113&type=chunk) - Factors considered include, but are not limited to, gender, age, cultural and educational background, race, professional experience, skills, industry knowledge, and length of service[113](index=113&type=chunk) - The Nomination Committee will review this policy and monitor its implementation from time to time[114](index=114&type=chunk) [Audit Committee](index=27&type=section&id=Audit%20Committee) The Audit Committee, composed of all three independent non-executive directors, is responsible for reviewing and overseeing the Group's financial reporting process, audit procedures, internal controls, and corporate governance, and performing corporate governance functions - The Audit Committee comprises all three independent non-executive directors (Mr. Sit Hon Wing, Mr. Man Ka Ho, and Mr. Cheng Tsz Lung), with Mr. Sit Hon Wing serving as Chairman[115](index=115&type=chunk) - Its primary responsibilities include reviewing and overseeing the Group's financial reporting process, audit procedures, internal controls, and corporate governance[115](index=115&type=chunk) - The Audit Committee held a meeting on July 29, 2025, to review this report, the Directors' Report, and the annual accounts, and to make recommendations to the Board[116](index=116&type=chunk) [Auditor's Remuneration](index=27&type=section&id=Auditor's%20Remuneration) For the year ended April 30, 2025, the Group paid approximately HKD 850,000 for audit services and HKD 134,000 for non-audit services to its auditor Auditor's Remuneration (Thousand HKD) | Service Type | 2025 | 2024 | | :----------- | :--- | :--- | | Audit Services | 850 | 1,100 | | Non-Audit Services | 134 | 282 | - Non-audit services primarily include interim review, tax compliance, internal control assessment, and ESG report consulting[117](index=117&type=chunk) [Risk Management and Internal Control](index=27&type=section&id=Risk%20Management%20and%20Internal%20Control) The Board oversees the implementation of risk management and internal control systems, engaging external consultants to review the internal control environment, deems the systems effective and adequate, and will continue to assess the need for an internal audit department - The Board is responsible for overseeing and ensuring the continuous implementation of sound and effective risk management and internal control systems to safeguard the Group's assets and shareholders' interests[118](index=118&type=chunk) - The Company engaged an external consulting firm to review the Group's internal control environment for the current year and assist in adopting and implementing an enterprise risk management system[120](index=120&type=chunk) - The Board considers the risk management and internal control systems to be effective and adequate, with no significant areas of concern[120](index=120&type=chunk) - The Group does not have an internal audit department, but the Board will continue to assess the need for one at least once a year[119](index=119&type=chunk) [Procedures and Internal Controls for Handling and Dissemination of Inside Information](index=28&type=section&id=Procedures%20and%20Internal%20Controls%20for%20Handling%20and%20Dissemination%20of%20Inside%20Information) The Company has implemented measures, including restricted access, confidentiality requirements, compliance with employment terms, and the Model Code, to prevent disclosure breaches and ensure strict confidentiality and timely disclosure of inside information - The Company has implemented measures to prevent disclosure breaches, including restricting access to information, requiring employees with inside information to maintain confidentiality, and ensuring all employees comply with confidential information handling terms and the Model Code[121](index=121&type=chunk)[125](index=125&type=chunk) - The Group complies with the requirements of the Securities and Futures Ordinance and the Listing Rules, disclosing inside information as soon as reasonably practicable and ensuring strict confidentiality before full disclosure[121](index=121&type=chunk) [Directors' Responsibility Statement](index=28&type=section&id=Directors'%20Responsibility%20Statement) Directors confirm their responsibility to prepare the Group's financial statements in accordance with statutory requirements and applicable accounting standards, and to timely publish annual and interim results - Directors confirm their responsibility to prepare the Group's financial statements in accordance with statutory requirements and applicable accounting standards[122](index=122&type=chunk) - The Group publishes its annual and interim results in a timely manner[122](index=122&type=chunk) [Company Secretary](index=28&type=section&id=Company%20Secretary) Mr. Cheung Ka Cheong serves as the Company Secretary, responsible for corporate secretarial matters and assisting directors in complying with internal control measures, and has met the Listing Rule's professional training requirements - Mr. Cheung Ka Cheong is the Company Secretary, responsible for the Group's corporate secretarial matters and assisting directors in implementing and continuously complying with the Group's internal control measures[123](index=123&type=chunk) - For the year ended April 30, 2025, Mr. Cheung complied with Listing Rule 3.29 and received no less than **15 hours** of relevant professional training[124](index=124&type=chunk) [Communication with Shareholders](index=29&type=section&id=Communication%20with%20Shareholders) The Company values Annual General Meetings, requiring the Chairman and all directors to attend if possible, and enhances minority shareholder rights through independent resolutions and publishing voting results on the company and HKEX websites - The Company considers Annual General Meetings very important, and the Chairman and all directors are required to attend whenever possible[126](index=126&type=chunk) - All resolutions proposed for shareholders' vote at general meetings will be passed by poll, and voting results will be published on the Company's website and the Stock Exchange's website on the day of the meeting[126](index=126&type=chunk) - The Company's corporate communications include interim reports, annual reports, announcements, and circulars required by the Listing Rules to be published on the Company's website and the Stock Exchange's website[126](index=126&type%20chunk) [Shareholders' Rights](index=29&type=section&id=Shareholders'%20Rights) The Company has established a shareholder communication policy to provide relevant information for informed exercise of rights, outlining procedures for convening extraordinary general meetings, submitting inquiries to the Board, and nominating directors - The Company has a shareholder communication policy to provide shareholders with relevant information, enabling them to exercise their rights in an informed manner[127](index=127&type=chunk) - Shareholders may submit a written request to the Company Secretary to convene an extraordinary general meeting, requiring at least **10%** of the Company's paid-up share capital[128](index=128&type=chunk) - Shareholders may mail inquiries to the Company's principal place of business in Hong Kong or email geninfo@kiddieland.com.hk[129](index=129&type=chunk) - Shareholders intending to nominate candidates for directorship must submit written notice and consent to the Company's Hong Kong share registrar[130](index=130&type=chunk) - Written notice for shareholders to propose resolutions must be submitted to the Company's principal place of business in Hong Kong, with sufficient notice period[131](index=131&type=chunk) [Constitutional Documents](index=30&type=section&id=Constitutional%20Documents) The Company's adopted constitutional documents (including the third amended and restated memorandum and articles of association) became effective on January 15, 2024 - The Company adopted constitutional documents (including the third amended and restated memorandum and articles of association), which became effective on January 15, 2024[132](index=132&type=chunk) [Environmental, Social and Governance Report](index=31&type=section&id=Environmental,%20Social%20and%20Governance%20Report) [About This Report](index=31&type=section&id=About%20This%20Report) This report outlines the Group's ESG policies, measures, and performance from May 1, 2024, to April 30, 2025, prepared in accordance with Appendix C2 of the Listing Rules' ESG Reporting Guide, adhering to materiality, quantification, balance, and consistency principles - This report describes the Group's overall performance regarding environmental and social aspects from May 1, 2024, to April 30, 2025 ("Reporting Period")[135](index=135&type=chunk) - The report discloses the policies and initiatives of the Group's core and significant business units in China (including production plants) and Hong Kong office operations[136](index=136&type=chunk) - This report is prepared in accordance with the Environmental, Social and Governance Reporting Guide set out in Appendix C2 of the Listing Rules, and is based on the four reporting principles: materiality, quantification, balance, and consistency[137](index=137&type=chunk)[138](index=138&type=chunk)[139](index=139&type=chunk) [Board Statement](index=32&type=section&id=Board%20Statement) The Board reaffirms the Group's commitment to environmentally and socially responsible operations, integrating sustainability into business strategy, and has established cross-departmental ESG working groups and committees to achieve long-term emission reduction targets and a carbon-neutral vision - The Board is committed to operating in an environmentally and socially responsible manner, integrating sustainable development into its business strategy planning[143](index=143&type=chunk) - The Group has established cross-departmental ESG working groups and an ESG committee to coordinate different departments, enhance cooperation, and ensure consistent performance[143](index=143&type=chunk) - The Group has formulated clear short-term and long-term sustainable development visions and goals, aiming to reduce greenhouse gas emissions by **50% by 2030** and achieve carbon neutrality by **2060**[143](index=143&type=chunk) [ESG Governance Structure](index=32&type=section&id=ESG%20Governance%20Structure) The Board is fully responsible for the Group's ESG strategy and reporting, and with the assistance of the ESG Working Group and ESG Committee, assesses and defines ESG-related risks, ensuring effective risk management and internal control systems - The Board is fully responsible for the Group's ESG strategy and reporting, ensuring alignment with long-term development and positioning[145](index=145&type=chunk) - The ESG Working Group and ESG Committee comprise senior management and core members from various departments, responsible for daily planning and implementation of the Group's ESG matters[145](index=145&type=chunk) - The Board regularly reviews the Group's ESG performance, and reviews and approves the Group's annual ESG report[146](index=146&type=chunk) [Stakeholder Engagement](index=33&type=section&id=Stakeholder%20Engagement) The Group communicates with stakeholders such as shareholders, investors, employees, customers, suppliers, and the community through various channels to gather feedback and develop sustainable strategies that meet their needs and expectations - Stakeholder feedback lays a solid foundation for the Group's sustainable development and success, helping to formulate business strategies that meet their needs[147](index=147&type=chunk) - The Group communicates with stakeholders through various channels, including annual reports, interim reports, ESG reports, general meetings, company websites, training, meetings, customer satisfaction surveys, site visits, and community activities[148](index=148&type=chunk) [Materiality Assessment](index=34&type=section&id=Materiality%20Assessment) The Group identifies and prioritizes material ESG issues through stakeholder engagement and online surveys, based on their importance to stakeholders and the business, to formulate sustainable development strategies - The Group conducted stakeholder engagement activities with internal and external stakeholders through online surveys and developed a materiality assessment matrix based on the results[149](index=149&type=chunk) - The materiality assessment considers the impact of issues on stakeholders and the business, with issues in the upper right quadrant having relatively higher importance[149](index=149&type=chunk)[150](index=150&type=chunk)[151](index=151&type=chunk) - Material issues include atmospheric pollutant emissions, greenhouse gas emissions, wastewater management, waste management, energy efficiency, water efficiency, material consumption, compliance with environmental regulations, climate change, employment practices, diversity and equal opportunity, anti-discrimination, occupational health and safety, development and training, child and forced labor, responsible supply chain management, environmental friendliness of procured products and services, compliance with marketing, product and service labeling regulations, customer privacy and confidentiality, customer satisfaction, intellectual property, product safety, product quality, business ethics, anti-corruption training for management and employees, social contribution, and local community engagement[152](index=152&type=chunk) [Environmental Aspects](index=35&type=section&id=Environmental%20Aspects) The Group is committed to environmental protection, establishing environmental management manuals and systems, strictly complying with relevant laws and regulations, and actively implementing emission reduction, energy saving, water conservation, and waste management measures to address climate change challenges - The Group is dedicated to protecting the Earth and conserving natural resources for future generations, and fully understands that its operations may impact the environment, actively striving to reduce its footprint[153](index=153&type=chunk) - The Group strictly complies with relevant environmental laws and regulations, including the Environmental Protection Law of the People's Republic of China, the Law on the Prevention and Control of Atmospheric Pollution, and the Law on the Prevention and Control of Environmental Pollution by Solid Waste[153](index=153&type=chunk) - The Group has established an environmental management system and appointed an "Environmental Management Working Group" to oversee all environmental-related matters, with objectives including regulatory compliance, pollution prevention, promoting clean production, and creating a harmonious environment[154](index=154&type=chunk)[157](index=157&type=chunk) - The Group ceased toy production at its factory and outsourced toy production in fiscal year 2024, with the smart laboratory equipment business primarily involving woodworking[155](index=155&type=chunk) [Emissions](index=36&type=section&id=Emissions) The Group has implemented measures to control atmospheric pollutant emissions and reduce greenhouse gas emissions, while managing waste using "reduce, reuse, and recycle" principles and complying with wastewater discharge permits - The Group has implemented measures to ensure atmospheric pollutant emissions comply with GB16297–1996 Class II regulations, and regularly maintains equipment and inspects cutting machine blades to reduce emissions[156](index=156&type=chunk) - For the year ended April 30, 2025, the total atmospheric emissions of various pollutants (including sulfur oxides, nitrogen oxides, suspended particulates, benzene, toluene, xylene, and total volatile organic compounds) were **0 tonnes**, primarily due to the cessation of production at the factory and outsourcing of toy production[158](index=158&type=chunk) - To reduce greenhouse gas emissions, the Group is committed to reducing energy consumption, regularly maintaining air conditioners, prioritizing the purchase of non-fluorinated refrigerant air conditioners, and selecting new air conditioners with China's Class 1 energy efficiency label[159](index=159&type=chunk) Greenhouse Gas Emissions (Tonnes CO2e) | GHG Emissions | 2025 | 2024 | | :------------ | :----- | :----- | | Scope 1 | 0.00 | 0.00 | | Scope 2 | 104.43 | 125.64 | | **Total** | **104.43** | **125.64** | | Intensity (per unit of production) | 0.0007 | 0.0011 | - The Group adopts "reduce, reuse, and recycle" as its waste management principle and engages qualified waste disposal companies for the transportation, treatment, storage, disposal, or recycling of hazardous and controlled waste[161](index=161&type=chunk) - During the reporting period, the total amount of non-hazardous waste generated was **1 tonne**, primarily domestic waste, and data collection procedures for non-hazardous waste have been reinstated[163](index=163&type=chunk) - The Group obtained a wastewater discharge permit in China in accordance with local regulations; for the year ended April 30, 2025, no wastewater was treated or discharged due to the cessation of toy production at the factory[164](index=164&type=chunk) [Resource Usage](index=39&type=section&id=Resource%20Usage) The Group is committed to resource conservation, significantly reducing energy and water consumption through energy management systems and conservation plans, and implementing measures to reduce packaging material consumption - The Group has established an energy management system to monitor and manage resource usage, aiming to reduce operating costs and carbon footprint[165](index=165&type=chunk) - Energy-saving measures include regular machine maintenance, enhancing employee energy-saving awareness, improving production processes and management, and strengthening energy management[166](index=166&type=chunk) Energy Consumption (MWh) | Energy Consumption Category | 2025 | 2024 | | :------------------------ | :----- | :----- | | Direct Consumption | 0.00 | 0.00 | | Indirect Consumption (Electricity) | 231.83 | 290.44 | | **Total** | **231.83** | **290.44** | | Intensity (per unit of production) | 0.0015 | 0.0025 | - Total energy consumption decreased by approximately **20.2%** compared to last year, mainly due to the Group's relocation to a smaller office in October 2024[167](index=167&type=chunk) Water Consumption (Cubic Meters) | Water Consumption | 2025 | 2024 | | :---------------- | :------- | :------- | | **Total** | **2,350.00** | **3,179.00** | | Intensity (per unit of production) | 0.0152 | 0.0274 | - Total water consumption and its intensity decreased by approximately **26.1%** and **44.5%**, respectively, mainly due to the relocation to a smaller office[167](index=167&type=chunk) Packaging Material Consumption (Tonnes) | Packaging Material | 2025 | 2024 | | :----------------- | :---- | :---- | | Cartons | 23.00 | 28.97 | | **Total** | **23.00** | **28.97** | | Intensity (per unit of production) | 0.0001 | 0.0002 | - The Group has implemented measures to reduce packaging material consumption, including increasing the packaging-to-product ratio, using environmentally friendly packaging materials, and minimizing the use of cartons and containers in logistics[170](index=170&type=chunk) [Environment and Natural Resources](index=41&type=section&id=Environment%20and%20Natural%20Resources) The Group highly values the impact of its operations on the environment and natural resources, has established "Environmental Protection Management Regulations" and related procedures to strengthen management, reduce pollution risks, and actively promote paper-saving measures in offices - The Group's significant impacts on the environment and natural resources include wastewater discharge, water resources, energy consumption, and packaging materials[171](index=171&type=chunk) - "Environmental Protection Management Regulations" and related procedures have been established to reduce the risk of soil and groundwater pollution, including strict control of chemical storage, regular maintenance of discharge systems, and emergency response training[171](index=171&type=chunk)[174](index=174&type=chunk) - During the reporting period, the Group's expenses for waste management and pollution prevention were approximately **RMB 16,000**[172](index=172&type=chunk) - The Group is committed to reducing office paper consumption, encouraging the reuse of blank sides of paper, and recycling used paper[172](

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，並明確表示不會就本公告全部或任何部份內容而產 生或因依賴該等內容而引致之任何損失承擔任何責任。 茲提述瀛晟科學有限公司（「本公司」，連同其附屬公司統稱「本集團」）於二零二五年四月 三十日刊發的截至二零二四年十二月三十一日止年度之年度報告（「二零二四年年報」）。 除另有定義外，本公告所用詞彙與二零二四年年報所界定者具有相同涵義。 除二零二四年年報所披露的資料外，根據上市規則附錄D2第11(8)段的規定，本公司董事 （「董事」）會（「董事會」）現就以下事項提供進一步詳情：(i)於二零二四年一月十五日配售 101,964,566股本公司普通股（「配售A」）的所得款項用途；及(ii)於二零二四年八月二十六 日完成配售23,000,000股本公司普通股（「配售B」）。 配售A 所得款項用途 209 二零二四年年報補充公告 WINSHINE SCIENCE COMPANY LIMITED * 4,300 於二零二四年年報日期，配售A所得款項淨額約為6,500,000港元，將用作本集團的一般營 運資金。指定用作一般 ...

[Financial Data](index=2&type=section&id=%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99) [Consolidated Balance Sheet](index=2&type=section&id=%E5%90%88%E4%BD%B5%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E8%A1%A8) As of June 30, 2025, the Group's total assets and liabilities decreased from year-end 2024, with significant declines in current assets and liabilities, while cash increased and accounts receivable and inventory decreased Consolidated Balance Sheet (RMB) | Item | June 30, 2025 (RMB) | December 31, 2024 (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 6,408,414,812.83 | 6,977,601,312.59 | -8.2% | | Total Current Assets | 4,287,817,607.75 | 4,699,606,788.48 | -8.8% | | Cash and Cash Equivalents | 886,615,327.25 | 652,046,262.73 | +36.0% | | Accounts Receivable | 1,026,066,987.90 | 1,243,392,844.39 | -17.5% | | Inventories | 1,348,518,720.93 | 1,672,686,872.12 | -19.4% | | Total Liabilities | 4,920,652,805.69 | 5,355,803,037.64 | -8.1% | | Total Current Liabilities | 4,454,416,575.16 | 4,799,784,477.83 | -7.2% | | Short-term Borrowings | 2,645,639,091.44 | 2,971,227,478.02 | -10.9% | | Total Shareholders' Equity | 1,487,762,007.14 | 1,621,798,274.95 | -8.2% | [Consolidated Income Statement](index=4&type=section&id=%E5%90%88%E4%BD%B5%E5%88%A9%E6%BD%A4%E8%A1%A8) For the six months ended June 30, 2025, the Group's total operating revenue decreased year-on-year, leading to expanded operating and net losses, with net loss attributable to parent company shareholders also increasing Consolidated Income Statement (RMB) | Item | Jan 1 to Jun 30, 2025 (RMB) | Jan 1 to Jun 30, 2024 (RMB) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 4,390,170,244.81 | 4,962,446,162.47 | -11.6% | | Total Operating Costs | 4,504,140,888.25 | 5,050,161,043.36 | -10.8% | | Operating Profit | -117,575,343.44 | -82,958,606.58 | -41.7% | | Total Profit | -117,298,246.46 | -82,055,345.35 | -42.9% | | Net Profit | -115,354,949.31 | -85,736,636.26 | -34.5% | | Net Profit Attributable to Parent Company Shareholders | -109,054,958.34 | -91,561,995.45 | -19.1% | | Basic Earnings Per Share | -0.26 | -0.22 | -18.2% | [Notes to Financial Statements](index=6&type=section&id=%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) [Company Profile](index=6&type=section&id=%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E6%B3%81) Beijing Jingkelong Commercial Group Co., Ltd., established in 2004, primarily engages in retail and wholesale of daily consumer goods, listed on the HKEX main board in 2008. As of June 30, 2025, the company's total share capital was 412.22 million shares, with Beijing Chaofu State-owned Assets Management Co., Ltd. as the controlling shareholder - The company primarily engages in retail and wholesale of daily consumer goods, listed on the HKEX main board in 2008[8](index=8&type=chunk) - As of June 30, 2025, the company's total issued share capital was **412.22 million shares**, with Beijing Chaofu State-owned Assets Management Co., Ltd. as the controlling shareholder[8](index=8&type=chunk) [Basis of Preparation for Interim Financial Report](index=6&type=section&id=%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A%E7%9A%84%E7%B7%A8%E8%A3%BD%E5%9F%BA%E7%A4%8E) The Group's financial statements are prepared on a going concern basis, adhering to Chinese Enterprise Accounting Standards, Hong Kong Companies Ordinance, and Listing Rules, using the accrual basis and historical cost measurement - Financial statements are prepared on a going concern basis, in accordance with Chinese Enterprise Accounting Standards, Hong Kong Companies Ordinance, and Listing Rules[9](index=9&type=chunk) - Accounting is based on the accrual method, with most items measured at historical cost, except for certain financial instruments[9](index=9&type=chunk) [Analysis of Receivables and Payables](index=7&type=section&id=%E6%87%89%E6%94%B6%E5%8F%8A%E6%87%89%E4%BB%98%E9%A0%85%E7%9B%AE%E5%88%86%E6%9E%90) This section details the aging structure and credit impairment provisions for accounts receivable, and the composition and aging analysis of notes and accounts payable, showing accounts receivable are mostly within one year, while notes payable significantly increased year-on-year [Accounts Receivable](index=7&type=section&id=%E6%87%89%E6%94%B6%E8%B3%A6%E6%AC%BE) As of June 30, 2025, total accounts receivable amounted to **RMB 1,117,113,877.74**, with 75% aged within one year, and total credit impairment provisions of **RMB 91,046,889.84** Accounts Receivable Aging (RMB) | Aging | Amount (RMB) | Proportion (%) | Credit Impairment Provision (RMB) | Carrying Value (RMB) | | :--- | :--- | :--- | :--- | :--- | | Within 1 year | 835,536,921.33 | 75 | 1,384,704.87 | 834,152,216.46 | | 1 to 2 years | 49,356,318.96 | 4 | 1,480,689.57 | 47,875,629.39 | | 2 to 3 years | 140,619,285.84 | 13 | 16,833,363.19 | 123,785,922.65 | | 3 to 4 years | 22,916,806.43 | 2 | 6,977,472.92 | 15,939,333.51 | | 4 to 5 years | 8,708,642.54 | 1 | 4,394,756.65 | 4,313,885.89 | | Over 5 years | 59,975,902.64 | 5 | 59,975,902.64 | – | | Total | 1,117,113,877.74 | 100 | 91,046,889.84 | 1,026,066,987.90 | [Notes and Accounts Payable](index=7&type=section&id=%E6%87%89%E4%BB%98%E7%A5%A8%E6%93%9A%E5%8F%8A%E6%87%89%E4%BB%98%E8%B3%A6%E6%AC%BE) As of June 30, 2025, notes payable significantly increased by **102.6%** year-on-year, while accounts payable slightly decreased; accounts payable are primarily for goods within one year, with amounts over one year mainly representing outstanding supplier payments Notes and Accounts Payable (RMB) | Item | June 30, 2025 (RMB) | December 31, 2024 (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Notes Payable | 214,246,957.80 | 105,750,091.50 | +102.6% | | Accounts Payable | 554,561,103.49 | 555,842,474.01 | -0.2% | | Total | 768,808,061.29 | 661,592,565.51 | +16.2% | - As of June 30, 2025, guarantee deposits for issuing bank acceptance bills amounted to **RMB 21,567,527.88**[10](index=10&type=chunk) - Accounts payable are predominantly within one year, with amounts exceeding one year primarily representing outstanding payments to suppliers[11](index=11&type=chunk) [Retained Earnings and Dividend Policy](index=8&type=section&id=%E6%9C%AA%E5%88%86%E9%85%8D%E5%88%A9%E6%BD%A4%E8%88%87%E8%82%A1%E5%88%A9%E6%94%BF%E7%AD%96) As of June 30, 2025, the Group's retained earnings significantly decreased due to the net loss attributable to parent company shareholders for the period, and the Board recommended no interim dividend, consistent with the prior year Retained Earnings (RMB) | Item | Jan 1 to Jun 30, 2025 (RMB) | Jan 1 to Jun 30, 2024 (RMB) | | :--- | :--- | :--- | | Adjusted Retained Earnings at Beginning of Period | 139,088,761.53 | 299,762,293.04 | | Add: Net Profit Attributable to Parent Company Shareholders for the Period | -109,054,958.34 | -91,561,995.45 | | Retained Earnings at End of Period | 30,033,803.19 | 208,200,297.59 | - The Board recommended no interim dividend for the six months ended June 30, 2025, maintaining a zero dividend payout consistent with the prior year[14](index=14&type=chunk) [Operating Revenue and Cost Structure](index=8&type=section&id=%E7%87%9F%E6%A5%AD%E6%94%B6%E5%85%A5%E5%8F%8A%E6%88%90%E6%9C%AC%E6%A7%8B%E6%88%90) In the first half of 2025, the Group's operating revenue and costs both decreased year-on-year, with primary business revenue, mainly from retail and wholesale, accounting for the largest share and both experiencing declines [Overall Operating Revenue and Costs](index=8&type=section&id=%E7%B8%BD%E9%AB%94%E7%87%9F%E6%A5%AD%E6%94%B6%E5%85%A5%E5%8F%8A%E6%88%90%E6%9C%AC) In the first half of 2025, the Group's operating revenue was **RMB 4,390,170,244.81** and operating costs were **RMB 3,648,245,716.51**, both decreasing from the prior year Overall Operating Revenue and Costs (RMB) | Item | Jan 1 to Jun 30, 2025 (RMB) | Jan 1 to Jun 30, 2024 (RMB) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 4,390,170,244.81 | 4,962,446,162.47 | -11.6% | | Operating Costs | 3,648,245,716.51 | 4,093,625,852.02 | -10.9% | [Primary Business Revenue and Costs](index=9&type=section&id=%E4%B8%BB%E7%87%9F%E6%A5%AD%E6%94%B6%E5%85%A5%E5%8F%8A%E6%88%90%E6%9C%AC) Primary business revenue, mainly from retail and wholesale, saw year-on-year declines in both segments during the first half of 2025, primarily from sales of food, non-staple food, daily consumer goods, beverages, and alcohol Primary Business Revenue and Costs (RMB) | Item | Jan 1 to Jun 30, 2025 (RMB) | Jan 1 to Jun 30, 2024 (RMB) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Total Primary Business Revenue | 3,984,419,068.29 | 4,418,443,343.08 | -9.8% | | Retail Business Revenue | 1,077,392,855.23 | 1,362,551,512.41 | -20.9% | | Wholesale Business Revenue | 2,902,661,033.46 | 3,054,007,202.96 | -5.0% | | Total Primary Business Costs | 3,641,355,894.98 | 4,079,117,792.86 | -10.8% | - Primary business revenue is mainly derived from sales of food, non-staple food, daily consumer goods, beverages, and alcohol[16](index=16&type=chunk) [Income Tax Expense](index=9&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E8%B2%BB%E7%94%A8) The Group's income tax expense for the first half of 2025 was negative, primarily due to negative deferred income tax expense and the impact of unrecognized deductible temporary differences or deductible losses Income Tax Expense (RMB) | Item | Jan 1 to Jun 30, 2025 (RMB) | Jan 1 to Jun 30, 2024 (RMB) | | :--- | :--- | :--- | | Current Income Tax Expense | 7,024,567.42 | 16,862,376.00 | | Deferred Income Tax Expense | -8,967,864.57 | -13,181,085.09 | | Total | -1,943,297.15 | 3,681,290.91 | - Income tax expense was negative, mainly influenced by negative deferred income tax expense and unrecognized deductible temporary differences or deductible losses for the period[18](index=18&type=chunk) [Earnings Per Share](index=10&type=section&id=%E6%AF%8F%E8%82%A1%E6%94%B6%E7%9B%8A) The Group's basic earnings per share for the first half of 2025 was **RMB -0.26**, an expanded loss compared to **RMB -0.22** in the prior year, reflecting the decrease in net profit attributable to parent company shareholders Earnings Per Share (RMB) | Item | Jan 1 to Jun 30, 2025 (RMB) | Jan 1 to Jun 30, 2024 (RMB) | | :--- | :--- | :--- | | Net Profit Attributable to Parent Company Shareholders | -109,054,958.34 | -91,561,995.45 | | Number of Ordinary Shares for Basic EPS Calculation | 412,220,000.00 | 412,220,000.00 | | Basic Earnings Per Share | -0.26 | -0.22 | [Liquidity Ratios](index=11&type=section&id=%E6%B5%81%E5%8B%95%E6%80%A7%E6%8C%87%E6%A8%99) As of June 30, 2025, the Group's net current assets were negative, with the deficit expanding from year-end 2024, indicating increased liquidity pressure, and total assets less current liabilities also showed a declining trend [Net Current Assets](index=11&type=section&id=%E6%B7%A8%E6%B5%81%E5%8B%95%E8%B3%87%E7%94%A2) As of June 30, 2025, the Group's net current assets were **RMB -166,598,967.41**, further deteriorating from **RMB -100,177,689.35** at year-end 2024 Net Current Assets (RMB) | Item | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Current Assets | 4,287,817,607.75 | 4,699,606,788.48 | | Less: Current Liabilities | 4,454,416,575.16 | 4,799,784,477.83 | | Net Current Assets | -166,598,967.41 | -100,177,689.35 | [Total Assets Less Current Liabilities](index=11&type=section&id=%E7%B8%BD%E8%B3%87%E7%94%A2%E6%B8%9B%E6%B5%81%E5%8B%95%E8%B2%A0%E5%82%B5) As of June 30, 2025, total assets less current liabilities amounted to **RMB 1,953,998,237.67**, a decrease from year-end 2024 Total Assets Less Current Liabilities (RMB) | Item | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Total Assets | 6,408,414,812.83 | 6,977,601,312.59 | | Less: Current Liabilities | 4,454,416,575.16 | 4,799,784,477.83 | | Total Assets Less Current Liabilities | 1,953,998,237.67 | 2,177,816,834.76 | [Performance Review and Operating Analysis](index=12&type=section&id=%E6%A5%AD%E7%B8%BE%E5%9B%9E%E9%A1%A7%E8%88%87%E7%B6%93%E7%87%9F%E5%88%86%E6%9E%90) [Macro Environment and Operating Strategy](index=12&type=section&id=%E5%AE%8F%E8%A7%80%E7%92%B0%E5%A2%83%E8%88%87%E7%B6%93%E7%87%9F%E7%AD%96%E7%95%A5) In the first half of 2025, facing a complex international trade environment and fierce market competition, the Group focused on brand building, empowering product and service capabilities, strengthening core businesses, and promoting enterprise transformation to adapt to changes in household consumption expenditure patterns - The international trade environment is complex, the domestic consumer market shows strong resilience but faces many external uncertainties, and the proportion of food, tobacco, and alcohol consumption expenditure has decreased[21](index=21&type=chunk) - The Group leverages brand building, focuses on enhancing target customer value, empowers both product and service capabilities, strengthens core businesses, and promotes enterprise transformation and upgrading[21](index=21&type=chunk) [Retail Business](index=12&type=section&id=%E9%9B%B6%E5%94%AE%E6%A5%AD%E5%8B%99) The Group's retail business closed some stores during the reporting period, leading to a decrease in primary business revenue, but gross margin improved through category development, product upgrades, store operation optimization, and technological empowerment, with logistics distribution centers integrated for efficiency [Store Network and Operations](index=12&type=section&id=%E9%96%80%E5%BA%97%E7%B6%B2%E7%B5%A1%E8%88%87%E9%81%8B%E7%87%9F) As of June 30, 2025, the Group operated a total of **91 retail stores**, comprising **83 directly operated stores** and **8 franchised stores**, with a total net operating area of approximately **99,218 square meters**, having closed **9 stores** during the reporting period Store Count (Units) | Store Type | Directly Operated Stores (units) | Franchised Stores (units) | Total (units) | | :--- | :--- | :--- | :--- | | Department Stores | 1 | - | 1 | | Hypermarkets | 8 | - | 8 | | Supermarkets | 34 | - | 34 | | Convenience Stores | 40 | 8 | 48 | | **Total** | **83** | **8** | **91** | Net Operating Area (Square Meters) | Store Type | Directly Operated Stores (sqm) | Franchised Stores (sqm) | Total (sqm) | | :--- | :--- | :--- | :--- | | Department Stores | 20,724 | - | 20,724 | | Hypermarkets | 23,722 | - | 23,722 | | Supermarkets | 46,611 | - | 46,611 | | Convenience Stores | 6,485 | 1,676 | 8,161 | | **Total** | **97,542** | **1,676** | **99,218** | - During the reporting period, **4 hypermarkets** and **5 directly operated convenience stores** were closed due to lease expirations and operational strategy adjustments, with no new retail stores opened[23](index=23&type=chunk) [Product Competitiveness and Supply Chain Optimization](index=13&type=section&id=%E5%95%86%E5%93%81%E5%8A%9B%E8%88%87%E4%BE%9B%E6%87%89%E9%8F%88%E5%84%AA%E5%8C%96) The Group enhanced the cost-effectiveness and competitiveness of fruits, vegetables, meat, and eggs by optimizing the supply chain, implementing direct sourcing from bases, and introducing geographical indication products, while also optimizing product structure through new product selection and a "last-place elimination" mechanism, and integrating omni-channel supply chain resources - Continuously improved the cost-effectiveness of fruits, vegetables, meat, and eggs, with increased penetration rates for vegetables, fruits, meat, and fresh eggs compared to the prior year, and a comprehensive upgrade in targeted category development[24](index=24&type=chunk) - Implemented direct sourcing from bases, established direct supply channels for single items, and introduced geographical indication products and selected high-quality single items[24](index=24&type=chunk) - Adjusted new product strategy to a selection model, implemented a "last-place elimination" mechanism, phased out inefficient suppliers and slow-moving products, and optimized product structure[25](index=25&type=chunk) [Operations Management and Customer Experience](index=13&type=section&id=%E9%81%8B%E7%87%9F%E7%AE%A1%E7%90%86%E8%88%87%E9%A1%A7%E5%AE%A2%E9%AB%94%E9%A9%97) The Group adjusted store layouts, optimized product displays, closed unprofitable stores, and actively conducted "Jingkelong Supermarket into Community" activities to enhance customer shopping comfort, brand influence, and overall customer experience - Adjusted layouts of multiple stores, optimized product placement and display, standardized stack height and display standards, enhancing shopping comfort[26](index=26&type=chunk) - Closed unprofitable stores, focused management efforts on high-potential stores, and actively conducted nearly **200 "Jingkelong Supermarket into Community"** special events to expand brand influence[26](index=26&type=chunk) - Strengthened basic management, refined operational standards for fresh produce, general management, store services, operational implementation, and safety, resulting in an increase in average daily customer traffic compared to the prior year[27](index=27&type=chunk) [Technology Empowerment and Safety Control](index=14&type=section&id=%E7%A7%91%E6%8A%80%E8%B3%A6%E8%83%BD%E8%88%87%E5%AE%89%E5%85%A8%E7%AE%A1%E6%8E%A7) The retail business system completed infrastructure and core function upgrades, enabling automatic replenishment and one-click checkout at stores, and offline scan-to-pay and electronic member interoperability for customers, while continuously strengthening food safety risk prevention and emergency drills - The retail business system completed infrastructure and core function upgrades, enabling automatic replenishment for ambient and fresh products, automatic acceptance for direct delivery products, and one-click checkout at stores[28](index=28&type=chunk) - Customer-side features include offline scan-to-pay, interoperability between stored-value cards and electronic memberships, quick returns, and electronic members checking omni-channel order details[28](index=28&type=chunk) - Consistently implemented food safety risk prevention and control, steadily advanced food safety training, and organized the first system-wide food safety emergency drill[29](index=29&type=chunk) [Logistics Distribution Center Integration](index=15&type=section&id=%E7%89%A9%E6%B5%81%E9%85%8D%E9%80%81%E4%B8%AD%E5%BF%83%E6%95%B4%E5%90%88) The Group integrated its fresh and ambient distribution centers into a Logistics Business Unit to enhance logistics resource utilization efficiency, promote full product warehousing, adjust inventory structure, and leverage fresh processing capabilities to develop semi-finished ready-to-cook products for stores - Integrated fresh and ambient distribution centers to establish a Logistics Business Unit, promoting full product warehousing and increasing inbound efficiency[30](index=30&type=chunk) - Adjusted inventory structure to accelerate turnover, and utilized fresh processing capabilities to develop various semi-finished ready-to-cook products for stores, enhancing processing efficiency and unified food safety control[30](index=30&type=chunk) [Retail Operating Performance](index=15&type=section&id=%E9%9B%B6%E5%94%AE%E7%B6%93%E7%87%9F%E6%A5%AD%E7%B8%BE) During the reporting period, the Group's retail primary business revenue decreased by **20.9%**, mainly due to store closures; however, the gross margin for directly operated retail business increased from **15.3%** to **16.6%**, benefiting from category development and product structure upgrades Retail Operating Performance (CNY thousand) | Item | 2025 (CNY thousand) | 2024 (CNY thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Hypermarket Revenue | 328,233 | 394,558 | -16.8% | | Supermarket Revenue | 673,232 | 869,689 | -22.6% | | Convenience Store Revenue | 75,927 | 98,305 | -22.8% | | Total Retail Primary Business Revenue | 1,077,392 | 1,362,552 | -20.9% | | Gross Margin for Directly Operated Hypermarkets, Supermarkets, and Convenience Stores | 16.6% | 15.3% | +1.3% | - Retail primary business revenue decreased by approximately **20.9%**, primarily attributed to sales decline due to the closure of some stores[31](index=31&type=chunk) - Gross margin for directly operated retail business increased to **16.6%**, mainly benefiting from deepened targeted category development, supply chain optimization, product structure upgrades, omni-channel supply chain integration, and member product development[32](index=32&type=chunk) [Wholesale Business](index=16&type=section&id=%E6%89%B9%E7%99%BC%E6%A5%AD%E5%8B%99) The Group's wholesale primary business revenue decreased by **5.0%** year-on-year, mainly due to reduced sales in liquor and grain/oil categories; however, gross margin improved through product structure optimization and vendor policy adjustments [Full-Chain Collaboration and Market Expansion](index=16&type=section&id=%E5%85%A8%E9%8F%88%E5%8D%94%E5%90%8C%E8%88%87%E5%B8%82%E5%A0%B4%E6%8B%93%E5%B1%95) The Group's wholesale business continues to deepen omni-channel development, strategically expanding into refined processing and supply for group meals, and strengthening supply chain ecosystem collaboration through supplier partnerships, co-branded SKU launches, and introduction of quality brands - Continuously deepened omni-channel development and strategically expanded into refined processing and supply for group meals[33](index=33&type=chunk) - Deepened cooperation with suppliers, launched over **30 co-branded SKUs**, consolidating traditional supermarket channels and expanding into emerging business formats[33](index=33&type=chunk) - Introduced quality brands, adhered to a "full category + omni-channel" marketing dual-drive strategy, and strengthened supply chain ecosystem collaboration capabilities[33](index=33&type=chunk) [Logistics Management Capability Enhancement](index=16&type=section&id=%E7%89%A9%E6%B5%81%E7%AE%A1%E7%90%86%E8%83%BD%E5%8A%9B%E6%8F%90%E5%8D%87) The Group rationally adjusted logistics warehouse layouts, optimized storage space utilization, and enhanced transportation efficiency through the TMS transport management system, while also providing professional logistics solutions to third-party clients to reduce supply chain costs - Rationally adjusted logistics warehouse layouts, dynamically optimized storage space utilization, regularly analyzed inventory and turnover data, maximizing warehouse utilization[34](index=34&type=chunk) - Leveraged the TMS transport management system to flexibly allocate transportation resources, improving vehicle loading rates and average daily loading rates[34](index=34&type=chunk) - Continuously provided full-process warehousing and distribution services to third-party clients, reducing customer supply chain costs through optimized inventory management and other measures[34](index=34&type=chunk) [Wholesale Operating Performance](index=17&type=section&id=%E6%89%B9%E7%99%BC%E7%B6%93%E7%87%9F%E6%A5%AD%E7%B8%BE) During the reporting period, wholesale primary business revenue decreased by **5.0%**, mainly due to fluctuations in liquor business and channel adjustments for grain and oil categories; Chaopi Group's gross margin increased by **1.3%** to **5.6%**, benefiting from new brands and vendor policy adjustments Wholesale Operating Performance (CNY thousand) | Item | 2025 (CNY thousand) | 2024 (CNY thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Chaopi Group Primary Business Revenue | 3,042,576 | 3,193,246 | -4.7% | | Consolidated Wholesale Primary Business Revenue | 2,902,661 | 3,054,007 | -5.0% | | Gross Margin | 5.6% | 4.3% | +1.3% | - Wholesale primary business revenue decreased by approximately **5.0%**, mainly due to fluctuations in liquor business from upstream supply chain and market price adjustments, and reduced sales in grain and oil categories due to some channels shifting to direct operation and decreased sales to Wumart system[36](index=36&type=chunk) - Chaopi Group's gross margin increased by **1.3%** to **5.6%**, primarily due to the addition of Yili brand ambient milk and yogurt business, optimized product structure, and vendor policy adjustments for Unilever brand e-commerce channels in the personal care category[36](index=36&type=chunk) [Overall Operating Performance](index=18&type=section&id=%E7%B8%BD%E9%AB%94%E7%B6%93%E7%87%9F%E6%A5%AD%E7%B8%BE) In the first half of 2025, the Group's primary business revenue decreased by **9.8%** overall, but gross profit slightly increased by **1.1%** year-on-year, with gross margin rising to **8.6%**; however, both EBIT and net profit attributable to parent company showed losses, with the deficit expanding [Primary Business Revenue](index=18&type=section&id=%E4%B8%BB%E7%87%9F%E6%A5%AD%E6%94%B6%E5%85%A5) During the reporting period, the Group's primary business revenue decreased by **9.8%**, with retail business down **20.9%** and wholesale business down **5.0%** Primary Business Revenue (CNY thousand) | Item | 2025 (CNY thousand) | 2024 (CNY thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Primary Business Revenue | 3,984,419 | 4,418,443 | -9.8% | [Gross Profit and Gross Margin](index=18&type=section&id=%E6%AF%9B%E5%88%A9%E8%88%87%E6%AF%9B%E5%88%A9%E7%8E%87) During the reporting period, the Group's gross profit increased by **1.1%** year-on-year, with gross margin improving from **7.7%** in the prior year to **8.6%** Gross Profit and Gross Margin (CNY thousand) | Item | 2025 (CNY thousand) | 2024 (CNY thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Gross Profit | 343,063 | 339,326 | +1.1% | | Gross Margin (%) | 8.6% | 7.7% | +0.9% | [Net Profit Attributable to Parent Company](index=18&type=section&id=%E6%AD%B8%E5%B1%AC%E6%96%BC%E6%AF%8D%E5%85%AC%E5%8F%B8%E6%B7%A8%E5%88%A9%E6%BD%A4) During the reporting period, net loss attributable to parent company expanded by **19.1%**, and the EBIT loss also significantly increased Net Profit Attributable to Parent Company (CNY thousand) | Item | 2025 (CNY thousand) | 2024 (CNY thousand) | Change (%) | | :--- | :--- | :--- | :--- | | EBIT | -64,831 | -25,055 | -158.8% | | Net Profit | -115,355 | -85,737 | -34.5% | | Net Profit Attributable to Parent Company | -109,055 | -91,562 | -19.1% | | Net Profit Attributable to Parent Company Margin (%) | -2.7% | -2.1% | -0.6% | [Financial Position and Liquidity](index=19&type=section&id=%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%88%87%E6%B5%81%E5%8B%95%E6%80%A7) [Sources of Funds and Asset-Liability Structure](index=19&type=section&id=%E8%B3%87%E9%87%91%E4%BE%86%E6%BA%90%E8%88%87%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E7%B5%90%E6%A7%8B) The Group primarily funds its operations through internal cash flow and bank loans; as of June 30, 2025, non-current assets mainly comprised fixed assets, investment properties, and land use rights, while current assets primarily included cash, inventory, and accounts receivable - The Group primarily funds its operations through internally generated cash flow and bank loans[41](index=41&type=chunk) - As of June 30, 2025, non-current assets amounted to **RMB 2,120,597,205.08**, primarily comprising fixed assets, investment properties, and land use rights[41](index=41&type=chunk) - Current assets amounted to **RMB 4,287,817,607.75**, primarily including cash and cash equivalents, inventory, and accounts receivable[41](index=41&type=chunk) [Liabilities and Asset Pledges](index=19&type=section&id=%E8%B2%A0%E5%82%B5%E5%8F%8A%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, the Group's total borrowings were **RMB 2,645,639,091.44**, including bank loans factored against accounts receivable and unsecured bank loans, with annual interest rates ranging from **2.35%** to **4.50%**; some guarantee deposits secured notes payable - The Group's total borrowings amounted to **RMB 2,645,639,091.44**, including bank loans factored against accounts receivable and unsecured bank loans[42](index=42&type=chunk) - All bank loans carried annual interest rates ranging from **2.35%** to **4.50%**[42](index=42&type=chunk) - Guarantee deposits of **RMB 21,567,527.88** secured notes payable of approximately **RMB 214,246,957.80**[42](index=42&type=chunk) [Financial Ratios](index=19&type=section&id=%E8%B2%A1%E5%8B%99%E6%AF%94%E7%8E%87) As of June 30, 2025, the Group's asset-liability ratio was approximately **76.8%**, and the capital-to-debt ratio was approximately **3.3 times**, both showing an increase from the prior year Financial Ratios | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Asset-Liability Ratio | 76.8% | 75.9% | | Capital-to-Debt Ratio | 3.3 times | - | [Foreign Exchange Risk](index=19&type=section&id=%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA) All of the Group's operating income and expenses are primarily denominated in RMB, and its operations and cash flows were not significantly affected by currency exchange rate fluctuations during the reporting period - All of the Group's operating income and expenses are primarily denominated in RMB[45](index=45&type=chunk) - During the reporting period, the Group's operations and cash flows were not significantly affected by currency exchange rate fluctuations[46](index=46&type=chunk) [Employee Information](index=20&type=section&id=%E5%93%A1%E5%B7%A5%E6%83%85%E6%B3%81) As of June 30, 2025, the Group's total number of employees was **3,837**, a decrease from the prior year, with total staff costs for the reporting period amounting to **RMB 327,370,218.17**, slightly higher than the prior year Employee Information | Item | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Total Employees | 3,837 employees | 4,260 employees | | Total Staff Costs (RMB) | 327,370,218.17 | 323,702,437.00 | - Employee remuneration is determined based on position, responsibilities, experience, performance, and market levels to maintain competitiveness[47](index=47&type=chunk) [Contingent Liabilities](index=20&type=section&id=%E6%88%96%E6%9C%89%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities[48](index=48&type=chunk) [Significant Litigation](index=20&type=section&id=%E9%87%8D%E5%A4%A7%E8%A8%B4%E8%A8%9F) The Group is involved in a land expropriation and compensation agreement dispute with the People's Government of Guanzhuang Township, Chaoyang District, Beijing; the first instance judgment rejected the company's claims, while the second instance ruled to overturn the first instance judgment and remand for retrial, with legal proceedings ongoing - In July 2022, the company filed a lawsuit against Guanzhuang Township Government and Nonggongshang Company, seeking to declare the land compensation agreement invalid and reclaim compensation fees of **RMB 45,132,000** plus interest[49](index=49&type=chunk) - The first instance court ruled that the company pay land leveling fees and restore the land to arable conditions, rejecting all of the company's claims[49](index=49&type=chunk)[50](index=50&type=chunk) - The second instance court ruled to overturn the first instance judgment and remand for retrial, with retrial legal proceedings still ongoing as of the announcement date[50](index=50&type=chunk) [Outlook and Future Strategies](index=21&type=section&id=%E5%B1%95%E6%9C%9B%E8%88%87%E6%9C%AA%E4%BE%86%E7%AD%96%E7%95%A5) [Overall Outlook](index=21&type=section&id=%E7%B8%BD%E9%AB%94%E5%B1%95%E6%9C%9B) The Group anticipates strong resilience and great potential in China's economy in the second half of 2025, and will continue to solidify its foundation for high-quality development, driven by reform and innovation, focusing on brand building, enhancing product and service capabilities, strengthening core businesses, and promoting enterprise transformation and upgrading - China's economy is expected to maintain strong resilience and significant development potential in the second half of 2025[51](index=51&type=chunk) - The Group will continue to solidify its foundation for high-quality development, addressing challenges through reform and innovation, focusing on brand building, promoting dual empowerment of product and service capabilities, strengthening core businesses, and striving for new breakthroughs in enterprise transformation and upgrading[51](index=51&type=chunk) [Retail Business Outlook](index=21&type=section&id=%E9%9B%B6%E5%94%AE%E6%A5%AD%E5%8B%99%E5%B1%95%E6%9C%9B) The retail business aims to enhance customer experience, employee well-being, and establish benchmark retail stores in Beijing, deepening brand building, precisely matching differentiated product demands, strengthening digital intelligence empowerment, and reinforcing talent pipeline development - Aiming to enhance customer experience, improve employee well-being, and establish benchmark retail stores in Beijing, the Group will further deepen brand building[51](index=51&type=chunk) - Precisely match differentiated product demands, comprehensively enhance the core competitiveness of targeted categories; continuously optimize business systems, strengthen digital intelligence empowerment; and reinforce talent pipeline development[51](index=51&type=chunk) [Wholesale Business Outlook](index=21&type=section&id=%E6%89%B9%E7%99%BC%E6%A5%AD%E5%8B%99%E5%B1%95%E6%9C%9B) The wholesale business will focus on high-quality development, accelerating central kitchen construction, promoting standardization across categories, expediting new ready-to-eat product development, building an efficient group meal supply chain, and fostering community canteen business to open new growth avenues - Focusing on high-quality development, accelerating central kitchen construction, and promoting standardization across various categories[51](index=51&type=chunk) - Accelerate the development of new ready-to-eat product categories, build an efficient group meal supply chain, promote the development of community canteen businesses, and open new growth avenues[51](index=51&type=chunk) [Events During the Reporting Period](index=21&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E9%96%93%E5%85%A7%E4%BA%8B%E9%A0%85) [Changes in Board Members](index=21&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83%E6%88%90%E5%93%A1%E8%AE%8A%E6%9B%B4) At the Annual General Meeting on May 16, 2025, the company approved resolutions to change directors, appointing new executive, non-executive, and independent non-executive directors, and adjusting Board committee member roles - Zhang Liwei, Wang Hong, Zhang Hongbo, and Yang Wensheng were appointed as executive directors; Zhang Yan and Li Ying were appointed as non-executive directors; Ge Wenda, Wang Liping, and He Mingke were appointed as independent non-executive directors[52](index=52&type=chunk) - Mr. Li Jianwen was not re-elected as a non-executive director, Mr. Chen Liping was not re-elected as an independent non-executive director, and Mr. Chen no longer serves as Chairman of the Board Nomination Committee and a member of the Audit and Remuneration Committees[53](index=53&type=chunk) - Mr. He Mingke was appointed as Chairman of the Board Nomination Committee, and a member of the Audit and Remuneration Committees[53](index=53&type=chunk) [Events After the Reporting Period](index=22&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) [No Significant Events](index=22&type=section&id=%E7%84%A1%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A0%85) As of the announcement date, no other significant events affecting the Group's operations and financial performance occurred after the reporting period - As of the announcement date, no other significant events affecting the Group's operations and financial performance occurred after the reporting period[54](index=54&type=chunk) [Other Information](index=22&type=section&id=%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) [Corporate Governance](index=22&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) During the reporting period, the company applied and complied with the principles and code provisions of the Listing Rules' Corporate Governance Code, with a deviation in the director rotation mechanism; all directors confirmed compliance with the standard code for securities transactions - During the reporting period, the company applied and complied with the principles and all code provisions of Part 2 of Appendix C1, Corporate Governance Code, under the Listing Rules[55](index=55&type=chunk) - The company's articles of association currently do not explicitly stipulate a director rotation mechanism, thus deviating from Code Provision B.2.2 of the Corporate Governance Code[55](index=55&type=chunk) - All directors confirmed their compliance with the standards for securities transactions set out in the Model Code for Securities Transactions by Directors of Listed Issuers and the company's code of conduct during the reporting period[56](index=56&type=chunk) [Audit Committee Report](index=23&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83%E5%A0%B1%E5%91%8A) The company's Audit Committee reviewed the Group's unaudited interim consolidated results for 2025 and deemed them compliant with applicable accounting standards, HKEX requirements, and Hong Kong legal provisions - The Audit Committee considered and reviewed the accounting principles and methods adopted by the Group with management and independent auditors, and discussed matters such as internal control and financial reporting[57](index=57&type=chunk) - The Audit Committee believes that the Group's interim results announcement for the six months ended June 30, 2025, complies with applicable accounting standards, HKEX requirements, and Hong Kong legal provisions, and appropriate disclosures have been made[57](index=57&type=chunk) [Disclosure of Interests](index=23&type=section&id=%E6%AC%8A%E7%9B%8A%E6%8A%AB%E9%9C%B2) This section discloses the interests of directors, chief executives, and substantial shareholders in the company's shares, including holdings of domestic shares and H shares [Interests of Directors and Chief Executives](index=23&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%AC%8A%E7%9B%8A) As of June 30, 2025, Zhang Liwei, Wang Hong, and Zhang Hongbo held domestic shares in the company, representing **0.10%**, **0.05%**, and **0.02%** of the total share capital, respectively Interests of Directors and Chief Executives (Shares) | Name | Capacity | Number of Domestic Shares Held | Approximate % of Total Issued Domestic Shares | Approximate % of Total Issued Share Capital | | :--- | :--- | :--- | :--- | :--- | | Zhang Liwei | Individual | 400,100 | 0.17 | 0.10 | | Wang Hong | Individual | 186,696 | 0.08 | 0.05 | | Zhang Hongbo | Individual | 100,000 | 0.04 | 0.02 | - Save as disclosed above, none of the company's directors, chief executives, or their associates had any disclosable interests or short positions in the shares, underlying shares, or debentures of the company or any associated corporation[59](index=59&type=chunk) [Interests of Substantial Shareholders](index=24&type=section&id=%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1%E6%AC%8A%E7%9B%8A) As of June 30, 2025, Beijing Chaofu State-owned Assets Management Co., Ltd. was the company's largest shareholder, holding **72.77%** of domestic shares, representing **40.61%** of total share capital; China Galaxy International Asset Management (Hong Kong) Co., Limited and its affiliates held **13.71%** of H shares Interests of Substantial Shareholders (Domestic Shares) | Name | Capacity | Number of Domestic Shares Held | Approximate % of Total Issued Domestic Shares | Approximate % of Total Issued Share Capital | | :--- | :--- | :--- | :--- | :--- | | Beijing Chaofu State-owned Assets Management Co., Ltd. | Beneficial Owner | 167,409,808 | 72.77 | 40.61 | Interests of Substantial Shareholders (H Shares) | Name | Number of Issued H Shares Held | Approximate % of Total Issued H Shares | Approximate % of Total Issued Share Capital | | :--- | :--- | :--- | :--- | | China Galaxy International Asset Management (Hong Kong) Co., Limited | 24,970,000(L) | 13.71 | 6.06 | | China Galaxy International SPC (acting for and on behalf of China Galaxy Value Fund I SP) | 24,970,000(L) | 13.71 | 6.06 | - Save as disclosed above, no other person (other than the company's directors or chief executives) had any disclosable interests or short positions in the shares, underlying shares, or debentures of the company[63](index=63&type=chunk) [Dealings in Listed Securities](index=26&type=section&id=%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93) During the reporting period, the company held no treasury shares, and neither the company nor any of its subsidiaries purchased, redeemed, or sold any of the company's listed securities - During the reporting period, the company held no treasury shares[64](index=64&type=chunk) - During the reporting period, neither the company nor any of its subsidiaries purchased, redeemed, or sold any of the company's listed securities[64](index=64&type=chunk) [Material Investments](index=26&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87) The company had no material investments (including those representing 5% or more of the Group's total assets) during the reporting period - The company had no material investments (including those representing **5%** or more of the Group's total assets) during the reporting period[65](index=65&type=chunk) [Material Acquisitions and Disposals](index=26&type=section&id=%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%92%8C%E5%87%BA%E5%94%AE) During the reporting period, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures - During the reporting period, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures[66](index=66&type=chunk) [Board Information](index=26&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83%E4%BF%A1%E6%81%AF) This announcement was signed by Chairman Mr. Zhang Liwei and lists all executive, non-executive, and independent non-executive directors as of the announcement date - This announcement was signed by Chairman Mr. Zhang Liwei[67](index=67&type=chunk) - As of the announcement date, the executive directors are Zhang Liwei, Wang Hong, Zhang Hongbo, and Yang Wensheng; non-executive directors are Zhang Yan and Li Ying; and independent non-executive directors are Ge Wenda, Wang Liping, and He Mingke[68](index=68&type=chunk)