[Financial and Operating Summary](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E5%8F%8A%E7%B6%93%E7%87%9F%E6%91%98%E8%A6%81) This section highlights the company's interim financial and operating performance, showcasing significant growth in key metrics for the period [Interim Performance Highlights](index=1&type=section&id=%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E4%BA%AE%E9%BB%9E) For the six months ended June 30, 2025, Locang Logistics Co., Ltd. reported significant growth in revenue and profit attributable to shareholders, a substantial increase in basic earnings per share, and a notable rise in container throughput for cross-border logistics services Key Financial and Operating Data for H1 2025 | Metric | For the six months ended June 30, 2025 (RMB millions) | | :--- | :--- | | Revenue | 905.0 | | Profit attributable to shareholders | 127.8 | | Basic earnings per share | RMB0.19 | | Cross-border logistics service container throughput (TEUs) | 197,195 | [Interim Condensed Consolidated Financial Statements](index=2&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section presents the company's interim condensed consolidated financial statements, including the statement of profit or loss and other comprehensive income, and the statement of financial position [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E5%85%A5%E8%A1%A8) For the six months ended June 30, 2025, the company achieved substantial growth in revenue and profit for the period, primarily driven by a significant increase in other income and gains, leading to a substantial rise in basic earnings per share Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Summary | Metric | June 30, 2025 (RMB thousands) | June 30, 2024 (RMB thousands) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 904,984 | 754,238 | 20.0% | | Gross profit | 82,397 | 68,104 | 21.0% | | Other income and gains | 91,126 | 5,021 | 1715.0% | | Profit before tax | 128,051 | 13,005 | 884.6% | | Profit for the period | 127,813 | 12,806 | 898.1% | | Profit attributable to owners of the parent | 111,300 | 9,393 | 1085.9% | | Basic earnings per share | RMB0.19 | RMB0.02 | 850.0% | - Total comprehensive income for the period significantly increased from **RMB22,242 thousand** in the same period of 2024 to **RMB122,513 thousand** in 2025, representing a **450% growth**[5](index=5&type=chunk) [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, the company's total non-current assets increased, while total current assets slightly decreased, and total current liabilities significantly rose, resulting in a reduction in net current assets, though total equity and net assets maintained stable growth Condensed Consolidated Statement of Financial Position Summary | Metric | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total non-current assets | 1,039,417 | 916,889 | 13.4% | | Total current assets | 969,814 | 1,006,675 | -3.7% | | Total current liabilities | 393,101 | 293,083 | 34.1% | | Net current assets | 576,713 | 713,592 | -19.1% | | Net assets | 1,557,897 | 1,551,635 | 0.4% | | Total equity | 1,557,897 | 1,551,635 | 0.4% | - Investment in an associate significantly increased from **RMB626 thousand** as of December 31, 2024, to **RMB29,043 thousand** as of June 30, 2025[6](index=6&type=chunk) - Trade receivables increased from **RMB107,605 thousand** as of December 31, 2024, to **RMB143,096 thousand** as of June 30, 2025, representing a **33% increase**[6](index=6&type=chunk) [Notes to the 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) This section provides detailed explanations of the company's accounting policies, segment information, revenue breakdown, and other financial statement components [Company Information](index=6&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) Locang Logistics Co., Ltd. was incorporated in the Cayman Islands, listed on the Main Board of the Hong Kong Stock Exchange on September 25, 2023, primarily provides integrated cross-border logistics services, and is ultimately controlled by Mr. Xu Xin, Ms. Li Yan, and Ms. Liu Quanxiang - The company is an investment holding company, with its subsidiaries primarily engaged in providing integrated cross-border logistics services[8](index=8&type=chunk) - The ultimate controlling shareholders are Mr. Xu Xin, Ms. Li Yan, and Ms. Liu Quanxiang[9](index=9&type=chunk) [Basis of Preparation and Accounting Policies](index=6&type=section&id=%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96%E5%8F%8A%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) The interim condensed consolidated financial information is prepared in accordance with IAS 34 and consistent with the accounting policies adopted for the annual consolidated financial statements for the year ended December 31, 2024, with the initial adoption of amended IFRS 21 having no material impact on the Group - The interim condensed consolidated financial information is prepared in accordance with International Accounting Standard 34 Interim Financial Reporting and should be read in conjunction with the Group's annual consolidated financial statements for the year ended December 31, 2024[10](index=10&type=chunk) - The initial adoption of amended IFRS 21 (Amendments) "Lack of Exchangeability" had no impact on the interim condensed consolidated financial information, as the Group's transactional and functional currencies are convertible[11](index=11&type=chunk)[12](index=12&type=chunk) [Operating Segment Information](index=7&type=section&id=%E7%B6%93%E7%87%9F%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group organizes its business units by products and services, with only one reportable operating segment, deriving revenue primarily from mainland China, and no single major customer accounts for more than 10% of revenue - The Group has only one reportable operating segment, and management monitors overall results to make decisions on resource allocation and performance assessment[13](index=13&type=chunk) Revenue from External Customers (by Geographical Location) | Region | June 30, 2025 (RMB thousands) | June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Mainland China | 746,820 | 697,642 | | Others | 158,164 | 56,596 | | Total | 904,984 | 754,238 | - For the six months ended June 30, 2025, no single major customer accounted for **10% or more** of the Group's revenue[16](index=16&type=chunk) [Revenue Analysis](index=7&type=section&id=%E6%94%B6%E5%85%A5%E5%88%86%E6%9E%90) The Group's revenue primarily stems from contracts with customers, with vessel chartering income also being a significant component, both of which have achieved growth Revenue Source Analysis | Revenue Source | June 30, 2025 (RMB thousands) | June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue from contracts with customers | 861,156 | 713,895 | | Vessel chartering income | 43,828 | 40,343 | | Total | 904,984 | 754,238 | [Components of Profit Before Tax](index=8&type=section&id=%E9%99%A4%E7%A8%85%E5%89%8D%E6%BA%A2%E5%88%A9%E6%A7%8B%E6%88%90) The composition of profit before tax indicates that cost of services, depreciation, and amortization are major expenses, while interest income and gains from disposal of property, plant and equipment significantly contribute to profit Key Items in Profit Before Tax Composition | Item | June 30, 2025 (RMB thousands) | June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Cost of services provided | 783,924 | 641,769 | | Depreciation of property, plant and equipment | 29,639 | 22,906 | | Depreciation of right-of-use assets | 15,776 | 15,085 | | Interest income | (13,635) | (3,295) | | Gain/(loss) on disposal of property, plant and equipment | (61,483) | 5,115 | - Net impairment loss on financial assets changed from a **RMB4,205 thousand** reversal in 2024 to a **RMB2,370 thousand** net impairment loss on trade receivables and a **RMB10,998 thousand** reversal on other receivables in 2025[18](index=18&type=chunk) [Finance Costs](index=8&type=section&id=%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) Finance costs increased during the period, primarily comprising interest on bank and other borrowings and interest on lease liabilities Finance Costs Analysis | Item | June 30, 2025 (RMB thousands) | June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest on bank and other borrowings | 2,929 | 1,509 | | Interest on lease liabilities | 2,274 | 2,689 | | Total | 5,203 | 4,198 | [Income Tax Expense](index=9&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) The Group's income tax expense primarily originates from mainland China, with no assessable profits in Hong Kong, and certain mainland Chinese subsidiaries benefiting from preferential tax rates for small and micro-enterprises - The company is not subject to income tax in the Cayman Islands, and Hong Kong subsidiaries are subject to profits tax at a rate of **16.5%**[21](index=21&type=chunk) - Mainland China subsidiaries are subject to corporate income tax at a statutory rate of **25%**, with some small and micro-enterprises enjoying a **75% reduction** on the first **RMB1,000,000** of annual assessable income[21](index=21&type=chunk) Total Income Tax Expense | Item | June 30, 2025 (RMB thousands) | June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Current tax: Mainland China | 226 | 87 | | Deferred | 12 | 112 | | Total tax expense for the period | 238 | 199 | [Dividends](index=9&type=section&id=%E8%82%A1%E6%81%AF) The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2025 - The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2025 (for the six months ended June 30, 2024: nil)[23](index=23&type=chunk) [Earnings Per Share](index=9&type=section&id=%E6%AF%8F%E8%82%A1%E7%87%9F%E5%88%A9) Basic earnings per share significantly increased, primarily due to a substantial rise in profit attributable to ordinary equity holders of the parent company, with retrospective adjustments made for the share split effective July 28, 2025 - Basic earnings per share is calculated based on the profit attributable to ordinary equity holders of the parent company for the period and the weighted average number of **572,538,312** ordinary shares outstanding during the period[24](index=24&type=chunk) - On July 28, 2025, the company conducted a 1-for-2 share split, and the calculation of basic and diluted earnings per share for all presented periods has been retrospectively adjusted[24](index=24&type=chunk) Basic Earnings Per Share Calculation Details | Item | June 30, 2025 (RMB thousands) | June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit attributable to ordinary equity holders of the parent for basic EPS calculation | 111,300 | 9,393 | | Weighted average number of ordinary shares outstanding for basic EPS calculation | 572,538,312 | 572,538,312 | [Trade Receivables](index=10&type=section&id=%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of June 30, 2025, total trade receivables increased, with the majority concentrated in the 1 to 3-month aging bracket Trade Receivables Aging Analysis | Aging | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 1 month | 67,719 | 62,696 | | 1 to 3 months | 55,371 | 31,657 | | 3 to 6 months | 13,262 | 7,887 | | 6 to 12 months | 6,744 | 5,365 | | Total | 143,096 | 107,605 | [Trade Payables](index=10&type=section&id=%E8%B2%BF%E6%98%93%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2025, total trade payables decreased, primarily settled within one year and non-interest bearing Trade Payables Aging Analysis | Aging | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 1 year | 95,107 | 123,969 | | Over 1 year | 15,811 | 11,469 | | Total | 110,918 | 135,438 | - Trade payables are non-interest bearing and generally settled within **30 to 60 days**[28](index=28&type=chunk) [Business Review](index=11&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) This section provides an overview of the Group's business segments, operational performance, and strategic outlook, focusing on cross-border logistics and vessel chartering services [Business Segments Overview](index=11&type=section&id=%E6%A5%AD%E5%8B%99%E6%A2%9D%E7%B7%9A%E6%A6%82%E8%A6%BD) The Group primarily operates two business segments: cross-border logistics services and vessel chartering services, with the flexibility to adjust strategies for allocating transportation resources - The Group primarily operates two business segments: cross-border logistics services and vessel chartering services[29](index=29&type=chunk) - The Group's management team can timely adjust service supply strategies and business focus, flexibly allocating transportation resources between the two business segments[30](index=30&type=chunk) [Cross-border Logistics Services](index=11&type=section&id=%E8%B7%A8%E5%A2%83%E7%89%A9%E6%B5%81%E6%9C%8D%E5%8B%99) During the period, cross-border logistics service volume significantly grew, primarily provided through third-party shipping companies, with expanded overseas warehousing services, though average prices decreased due to falling market freight rates - Self-operated cross-border logistics services accounted for approximately **4.7%** of cross-border logistics service revenue, primarily for bulk and general cargo transportation between China and Africa, with a service volume of **50,733 freight tons** and an average price of **RMB836.5 per freight ton**[30](index=30&type=chunk) - Cross-border ocean freight services provided by third parties amounted to **197,195 TEUs**, higher than **138,335 TEUs** in the same period of 2024, mainly due to business expansion[30](index=30&type=chunk) - The average price per TEU for cross-border ocean freight provided by third parties decreased from approximately **RMB4,129.8** in the same period of 2024 to approximately **RMB3,774.9** in the current period, primarily due to falling market freight rates[30](index=30&type=chunk) - The Group provided overseas warehousing services during the period to expand its capabilities in cargo collection, warehousing and sorting, customs clearance, warehousing transshipment, and last-mile delivery[30](index=30&type=chunk) [Vessel Chartering Services](index=11&type=section&id=%E8%88%B9%E8%88%B6%E5%87%BA%E7%A7%9F%E6%9C%8D%E5%8B%99) Vessel chartering service revenue remained stable during the period, with the average daily charter rate increasing due to the disposal of lower-rate vessels, though charter rates are subject to market supply and demand fluctuations - During the period, the Group chartered out **three vessels** and generated revenue of **RMB43.8 million**[31](index=31&type=chunk) - The average daily charter rate for the period was approximately **RMB101,262.7**, higher than approximately **RMB81,865.7** in the same period of 2024, mainly due to the disposal of two lower daily charter rate vessels in 2024[31](index=31&type=chunk) [Outlook and Strategy](index=12&type=section&id=%E5%B1%95%E6%9C%9B%E8%88%87%E6%88%B0%E7%95%A5) Facing a global economic slowdown, the company will focus on 'Belt and Road' infrastructure, cross-border e-commerce, and overseas warehouse expansion, while optimizing fleet operations and cost control to achieve steady growth and leading profitability - In market expansion, the company will deepen its presence in "Belt and Road" infrastructure projects, focusing on developing the African engineering logistics market[32](index=32&type=chunk) - The company will expand its cross-border e-commerce business, building a "sea freight + warehousing + distribution" full-chain logistics ecosystem, and accelerate its overseas warehouse布局[32](index=32&type=chunk) - In operational upgrades, the company will optimize the operating efficiency of its self-owned bulk and container fleet and implement refined cost control to enhance asset utilization[32](index=32&type=chunk) - Revenue is expected to grow steadily in the second half of 2025, with profitability maintained at a relatively leading industry level through differentiated operations and efficiency optimization[32](index=32&type=chunk) [Financial Review](index=12&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) This section provides a detailed analysis of the Group's financial performance, including revenue, cost of sales, gross profit, other income, and various expenses, highlighting key drivers of profitability [Revenue](index=12&type=section&id=%E6%94%B6%E5%85%A5) Total revenue for the period increased by 20.0% year-on-year, primarily driven by significant growth in cross-border logistics service revenue, particularly due to increased service volume and the development of overseas warehousing business, while import cargo trading was suspended Revenue Breakdown by Business Segment | Revenue Source | June 30, 2025 (RMB thousands) | June 30, 2024 (RMB thousands) | Percentage Change | | :--- | :--- | :--- | :--- | | Cross-border logistics services | 861,156 | 689,020 | 25.0% | | Vessel chartering services | 43,828 | 40,343 | 8.6% | | Others | – | 24,875 | -100.0% | | Total | 904,984 | 754,238 | 20.0% | - The increase in cross-border logistics service revenue was primarily attributable to an increase in service volume from **140,355 TEUs** to **197,195 TEUs**, and the growth of overseas warehousing business[34](index=34&type=chunk) - The company suspended import cargo trading under supply chain solution services in 2025[34](index=34&type=chunk) [Cost of Sales](index=13&type=section&id=%E9%8A%B7%E5%94%AE%E6%88%90%E6%9C%AC) Cost of sales increased by 19.9% year-on-year, primarily due to higher costs associated with cross-border logistics services, such as freight and port charges - Cost of sales increased by approximately **19.9%** from **RMB686.1 million** to **RMB822.6 million**[35](index=35&type=chunk) - The increase was primarily due to higher costs associated with the Group's cross-border logistics services, including freight and port charges[35](index=35&type=chunk) [Gross Profit and Gross Profit Margin](index=13&type=section&id=%E6%AF%9B%E5%88%A9%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87) Gross profit increased by 21.0% year-on-year, with the gross profit margin remaining relatively stable and slightly improving - Gross profit increased by approximately **21.0%** from **RMB68.1 million** to **RMB82.4 million**[36](index=36&type=chunk) - Gross profit margin remained relatively stable at **9.0%** (2024) and **9.1%** (2025)[36](index=36&type=chunk) [Other Income and Gains](index=13&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A) Other income and gains surged by 1,722.0%, primarily benefiting from non-recurring gains on disposal of vessels resulting from asset optimization - Other income and gains increased by approximately **1,722.0%** from **RMB5.0 million** to **RMB91.1 million**[37](index=37&type=chunk) - This was primarily due to non-recurring gains of approximately **RMB62.6 million** from asset optimization, including the optimization of vessel asset investment strategy[37](index=37&type=chunk) [Selling and Distribution Expenses](index=13&type=section&id=%E9%8A%B7%E5%94%AE%E5%8F%8A%E5%88%86%E9%8A%B7%E9%96%8B%E6%94%AF) Selling and distribution expenses increased by 33.0% year-on-year, primarily due to higher staff salaries and welfare expenses - Selling and distribution expenses increased by approximately **33.0%** from **RMB9.1 million** to **RMB12.1 million**[38](index=38&type=chunk) - This was primarily due to an increase in staff salaries and welfare expenses[38](index=38&type=chunk) [Administrative Expenses](index=13&type=section&id=%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) Administrative expenses decreased by 21.9% year-on-year, primarily attributable to reduced consulting fees - Administrative expenses decreased by approximately **21.9%** from **RMB45.7 million** to **RMB35.7 million**[39](index=39&type=chunk) - This was primarily due to a reduction in consulting fees[39](index=39&type=chunk) [Other Expenses](index=13&type=section&id=%E5%85%B6%E4%BB%96%E9%96%8B%E6%94%AF) Other expenses significantly decreased by 84.9% year-on-year, primarily due to reduced losses on disposal of non-current assets related to the sale of containers - Other expenses decreased by approximately **84.9%** from **RMB5.3 million** to **RMB0.8 million**[40](index=40&type=chunk) - This was primarily due to a reduction in losses on disposal of non-current assets related to the sale of the Group's containers[40](index=40&type=chunk) [Finance Costs](index=14&type=section&id=%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) Finance costs increased year-on-year, primarily due to a higher average monthly borrowing balance during the period - Finance costs increased from **RMB4.2 million** to **RMB5.2 million**[41](index=41&type=chunk) - This was primarily due to an increase in the average monthly borrowing balance during the period[41](index=41&type=chunk) [Net Reversal of Impairment Loss on Financial Assets](index=14&type=section&id=%E9%87%91%E8%9E%8D%E8%B3%87%E7%94%A2%E6%B8%9B%E5%80%BC%E虧%E6%90%8D%E5%9B%9E%E6%8B%A8%E6%B7%A8%E9%A1%8D) The period recorded a net reversal of impairment loss on financial assets, primarily due to the recovery of long-outstanding trade receivables - The period recorded a net reversal of impairment loss on financial assets of **RMB8.6 million** (compared to **RMB4.2 million** in the same period of 2024)[42](index=42&type=chunk) - This was primarily due to the recovery of long-outstanding trade receivables during the period[42](index=42&type=chunk) [Share of Loss of Associates](index=14&type=section&id=%E6%87%89%E4%BD%94%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E虧%E6%90%8D) The period recorded a share of loss of associates, primarily related to Locangwang International Logistics (Wuxi) Co., Ltd. and Locang (Shanghai) Investment Management Co., Ltd. - The Group recorded a share of loss of associates of **RMB0.2 million** during the period[43](index=43&type=chunk) - The loss is related to Locangwang International Logistics (Wuxi) Co., Ltd. and Locang (Shanghai) Investment Management Co., Ltd., in which the Group holds approximately **40.0%** equity interest[43](index=43&type=chunk) [Profit Before Tax](index=14&type=section&id=%E9%99%A4%E7%A8%85%E5%89%8D%E6%BA%A2%E5%88%A9) Profit before tax surged by 885.4% year-on-year, primarily due to the combined effects of revenue growth, a significant increase in other income and gains, and a reduction in certain expenses - Profit before tax increased by approximately **885.4%** from **RMB13.0 million** to **RMB128.1 million**[44](index=44&type=chunk) [Income Tax Expense](index=14&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Income tax expense remained stable, primarily comprising PRC corporate income tax and Hong Kong profits tax - Income tax expense remained stable at **RMB0.2 million** for the current period, similar to **RMB0.2 million** in the same period of 2024[45](index=45&type=chunk) [Profit for the Period](index=14&type=section&id=%E6%9C%9F%E5%85%A7%E6%BA%A2%E5%88%A9) Profit for the period significantly increased by 898.4% year-on-year, reflecting a substantial improvement in the company's overall profitability - Profit for the period increased by approximately **898.4%** from **RMB12.8 million** to **RMB127.8 million**[46](index=46&type=chunk) [Liquidity, Financial and Capital Resources](index=14&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E3%80%81%E8%B2%A1%E5%8B%99%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E6%BA%90) This section details the Group's funding sources, liquidity position, borrowing activities, asset pledges, and financial risk management strategies [Sources and Uses of Funds](index=14&type=section&id=%E8%B3%87%E9%87%91%E4%BE%86%E6%BA%90%E8%88%87%E9%9C%80%E6%B1%82) The Group primarily meets its working capital and capital expenditure needs through proceeds from its listing and cash generated from operations, with plans to secure additional bank borrowings - The Group meets its working capital, capital expenditure, and other capital needs through proceeds from its listing on the Hong Kong Stock Exchange and cash generated from operations[47](index=47&type=chunk) - The Group plans to obtain additional bank and other borrowings for working capital purposes and will continue to evaluate potential financing opportunities[47](index=47&type=chunk) [Net Current Assets](index=15&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E7%94%A2%E6%B7%A8%E5%80%BC) As of June 30, 2025, the Group's net current assets decreased, primarily due to a decline in total current assets and an increase in total current liabilities - As of June 30, 2025, the Group's net current assets were **RMB576.7 million** (December 31, 2024: **RMB713.6 million**), a **19.1% decrease**[48](index=48&type=chunk) - Total current assets decreased by approximately **3.7%** to **RMB969.8 million**, while total current liabilities increased by approximately **34.1%** to **RMB393.1 million**[48](index=48&type=chunk) [Cash Position](index=15&type=section&id=%E7%8F%BE%E9%87%91%E7%8B%80%E6%B3%81) As of June 30, 2025, the Group's cash and bank balances decreased, primarily denominated in US dollars - As of June 30, 2025, the Group's cash and bank balances were **RMB572.0 million** (December 31, 2024: **RMB779.6 million**), a **26.7% decrease**[49](index=49&type=chunk) Cash and Bank Balances by Currency | Currency | June 30, 2025 (RMB thousands) | | :--- | :--- | | Denominated in RMB | 50,152 | | Denominated in USD | 502,630 | | Others | 19,297 | | Total | 572,005 | [Borrowings](index=15&type=section&id=%E5%80%9F%E6%AC%BE) As of June 30, 2025, the Group's total borrowings decreased, primarily denominated in RMB and USD, and bearing interest at fixed rates - As of June 30, 2025, the Group's borrowings were **RMB68.1 million** (December 31, 2024: **RMB84.7 million**), a **19.6% decrease**[50](index=50&type=chunk) Maturity Profile of Interest-bearing Bank and Other Borrowings | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Bank loans and overdrafts repayable: within one year | 32,952 | 41,595 | | Other borrowings repayable: within one year | 15,481 | 15,856 | | Other borrowings repayable: over one year | 19,640 | 27,204 | | Total | 68,073 | 84,655 | - Except for **RMB35.1 million** of borrowings denominated in USD, all other borrowings are denominated in RMB and bear interest at fixed rates ranging from **2.85% to 7.16%**[51](index=51&type=chunk) [Borrowing Costs](index=16&type=section&id=%E5%80%9F%E8%B2%B8%E6%88%90%E6%9C%AC) Interest on bank and other borrowings increased during the period, primarily due to a higher average monthly borrowing balance - Interest on bank and other borrowings increased from **RMB1.5 million** to **RMB2.9 million**[52](index=52&type=chunk) - This was primarily due to an increase in the average monthly borrowing balance[52](index=52&type=chunk) [Pledge of Assets](index=16&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) The Group has pledged certain container vessels and deposits to secure bank and other borrowings and bank payment guarantees - As of June 30, 2025, the Group pledged container vessels with a carrying amount of **RMB53.5 million** to secure bank and other borrowings of **RMB35.1 million**[53](index=53&type=chunk) - Pledged deposits of **RMB11.2 million** served as collateral for bank payment guarantees[53](index=53&type=chunk) [Financial Instruments and Risk Management](index=17&type=section&id=%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7%E5%8F%8A%E9%A2%A8%E9%9A%AA%E7%AE%A1%E7%90%86) The Group's primary financial instruments include receivables, cash, and borrowings, facing interest rate, foreign currency, credit, and liquidity risks, managed with a conservative strategy that avoids derivative hedging - The Group's primary financial instruments include trade receivables, bills receivable, financial assets included in prepayments and other receivables, amounts due from related parties, cash and cash equivalents, and other payables and accrued expenses, interest-bearing other borrowings[54](index=54&type=chunk) - The main risks are interest rate risk, foreign currency risk, credit risk, and liquidity risk, managed with a conservative risk management strategy that does not use derivative instruments for hedging[54](index=54&type=chunk) [Interest Rate Risk](index=17&type=section&id=%E5%88%A9%E7%8E%87%E9%A2%A8%E9%9A%AA) The Group's interest rate risk primarily relates to other borrowings, with interest costs managed through fixed rates and no use of derivative financial instruments for hedging - The Group's exposure to the risk of changes in market interest rates primarily relates to its other borrowings[55](index=55&type=chunk) - The Group manages its interest costs by using fixed rates and does not use derivative financial instruments to hedge interest rate risk[55](index=55&type=chunk) [Foreign Currency Risk](index=17&type=section&id=%E5%A4%96%E5%B9%A3%E9%A2%A8%E9%9A%AA) The Group's transactional currency risk is minimal, with foreign exchange risk managed through close monitoring of exchange rate fluctuations - The Group's transactional currency risk is minimal as most of its operating units' sales and purchases are denominated in their respective functional currencies[56](index=56&type=chunk) - The Group manages foreign exchange risk by closely monitoring exchange rate movements[56](index=56&type=chunk) [Credit Risk](index=17&type=section&id=%E4%BF%A1%E8%B2%B8%E9%A2%A8%E9%9A%AA) The Group's credit risk primarily arises from trade receivables, amounts due from related parties, and cash, but is expected to be low due to diversified customers, continuous monitoring, and deposits held with major banks - The Group is exposed to credit risk in relation to its trade receivables, bills receivable, financial assets included in prepayments and other receivables, amounts due from related parties, and cash and cash equivalents[57](index=57&type=chunk) - No significant concentration of credit risk is expected due to cash being deposited with state-owned banks and other large and medium-sized listed banks, and a diversified customer base for trade receivables[57](index=57&type=chunk) [Liquidity Risk](index=17&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E9%A2%A8%E9%9A%AA) The Group aims to balance funding continuity and flexibility by utilizing interest-bearing other borrowings, with cash flows continuously monitored - The Group aims to maintain a balance between funding continuity and flexibility by utilizing interest-bearing other borrowings[58](index=58&type=chunk) - Cash flows are continuously monitored[58](index=58&type=chunk) [Current Ratio and Gearing Ratio](index=18&type=section&id=%E6%B5%81%E5%8B%95%E6%AF%94%E7%8E%87%E5%8F%8A%E8%B3%87%E7%94%A2%E8%B2%A0%E5%80%B5%E6%AF%94%E7%8E%87) During the period, the current ratio decreased, and the gearing ratio increased, primarily due to a higher balance of amounts payable to a related party - As of June 30, 2025, the Group's current ratio was **2.5 times** (December 31, 2024: **3.4 times**)[59](index=59&type=chunk) - As of June 30, 2025, the Group's gearing ratio was **6.1%** (December 31, 2024: **5.5%**), with the increase primarily attributable to a higher balance of amounts payable to a related party[59](index=59&type=chunk) [Contingent Liabilities](index=18&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%80%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[60](index=60&type=chunk) [Commitments](index=18&type=section&id=%E6%89%BF%E6%93%94) As of June 30, 2025, the Group's capital commitments primarily relate to the purchase of container vessels - As of June 30, 2025, the Group's capital commitments were **RMB1,554.8 million** (December 31, 2024: **RMB1,721.2 million**)[61](index=61&type=chunk) - The amount relates to the purchase of container vessels[61](index=61&type=chunk) [Investments and Capital Assets](index=18&type=section&id=%E6%8A%95%E8%B3%87%E8%88%87%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2) This section outlines the Group's significant acquisition and disposal activities, major investments, future investment plans, and the utilization of proceeds from its listing [Significant Acquisitions and Disposals](index=18&type=section&id=%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE) During the period, the Group did not undertake any significant acquisitions or disposals of subsidiaries, associates, or joint ventures - During the period, the Group did not undertake any significant acquisitions or disposals of subsidiaries, associates, or joint ventures[62](index=62&type=chunk) [Significant Investments](index=18&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87) During the period, the Group did not hold any significant investments - During the period, the Group did not hold any significant investments[63](index=63&type=chunk) [Future Investment Plans](index=18&type=section&id=%E6%9C%AA%E4%BE%86%E6%8A%95%E8%B3%87%E8%A8%88%E5%8A%83) The Group intends to utilize the net proceeds from its listing as per the prospectus, with no other significant future investment or capital asset plans beyond those disclosed - The Group intends to utilize the net proceeds from its listing as per the "Future Plans and Use of Proceeds" section in the prospectus[64](index=64&type=chunk) - As of June 30, 2025, the company had no other significant future investment or capital asset plans[64](index=64&type=chunk) [Use of Proceeds from Listing](index=18&type=section&id=%E4%B8%8A%E5%B8%82%E6%89%80%E5%BE%97%E6%AC%BE%E9%A0%85%E7%94%A8%E9%80%94) As of June 30, 2025, net proceeds from the listing have been partially used for establishing logistics facilities, digital technology upgrades, and strategic investments, with a portion remaining unutilized - The net proceeds from the listing totaled approximately **HKD95.1 million**, after deducting listing-related expenses[65](index=65&type=chunk) Use of Proceeds from Listing and Utilization Status | Purpose | Percentage of Net Proceeds as per Prospectus | Net Proceeds as of December 31, 2024, including partial exercise of over-allotment option (HKD millions) | Actual Use of Net Proceeds from January 1, 2025, to June 30, 2025 (HKD millions) | Unutilized Net Proceeds as of June 30, 2025 (HKD millions) | | :--- | :--- | :--- | :--- | :--- | | Establishing logistics facilities, including warehouses, container yards, purchasing trailers, and investing in warehouse, order, and transportation management software systems | 52.0% | 9.7 | 4.1 | 5.6 | | Expanding business coverage and global network | 4.0% | – | – | – | | Adopting digital technology and upgrading internet service systems to provide integrated cross-border logistics services | 7.0% | 5.2 | 1.2 | 4.0 | | Strategic investments and/or acquisitions of businesses or assets complementary to the Group's business | 20.0% | 3.5 | – | 3.5 | | Establishing a trailer transportation service matching platform | 7.0% | 6.7 | – | 6.7 | | General corporate purposes and working capital requirements | 10.0% | – | – | – | | Total | 100.0% | 25.1 | 5.3 | 19.8 | [Employees and Remuneration Policy](index=19&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June 30, 2025, the Group had 367 full-time employees, with staff costs recognized as RMB34.6 million, offering competitive remuneration, mandatory social insurance, and enhancing employee skills through training and mentorship programs - As of June 30, 2025, the Group had **367 full-time employees**, with staff costs recognized as an expense of **RMB34.6 million**[67](index=67&type=chunk) - Remuneration packages include fixed salaries, allowances, and performance bonuses, determined based on qualifications, experience, capabilities, and market remuneration levels[67](index=67&type=chunk) - The Group contributes to mandatory social insurance and housing provident funds for employees and provides induction training, mentorship programs, and regular training sessions to enhance employee skills[67](index=67&type=chunk) [Events After Reporting Period](index=20&type=section&id=%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) This section describes significant corporate actions that occurred after the reporting period, including a share split and changes in board lot size [Share Split](index=20&type=section&id=%E8%82%A1%E4%BB%BD%E5%88%86%E6%8B%86) The company implemented a 1-for-2 share split on July 28, 2025, where each existing share with a par value of US$0.0001 was split into two subdivided shares with a par value of US$0.00005 each - The share split became effective on **July 28, 2025**, where each existing share with a par value of **US$0.0001** was split into **two (2)** subdivided shares with a par value of **US$0.00005** each[68](index=68&type=chunk) [Change in Board Lot Size](index=20&type=section&id=%E6%9B%B4%E6%94%B9%E6%AF%8F%E6%89%8B%E8%B2%B7%E8%B3%A3%E5%96%AE%E4%BD%8D) Effective July 28, 2025, the board lot size for trading on the Stock Exchange changed from 200 existing shares to 300 subdivided shares - The board lot size for trading on the Stock Exchange changed from **200 existing shares** to **300 subdivided shares**, effective **July 28, 2025**[69](index=69&type=chunk) [Corporate Governance and Other Information](index=20&type=section&id=%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86%E8%88%87%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) This section covers the company's compliance with corporate governance codes, securities dealing standards, audit committee review, and publication of interim results [Purchase, Sale or Redemption of Listed Securities](index=20&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) Neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities during the period, and no treasury shares were held at period-end - Neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the period[70](index=70&type=chunk) - As of June 30, 2025, the company did not hold any treasury shares[70](index=70&type=chunk) [Interim Dividend](index=20&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025[71](index=71&type=chunk) [Compliance with Corporate Governance Code](index=20&type=section&id=%E9%81%B5%E5%AE%88%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) The company has adopted the Corporate Governance Code of the Hong Kong Stock Exchange, explaining that the Chairman and CEO roles are held by the same person, which is deemed beneficial for strategic execution and efficiency - The company has adopted the Corporate Governance Code set out in Appendix C1 Part 2 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited as its own corporate governance code[72](index=72&type=chunk) - Mr. Xu Xin holds both the Chairman of the Board and Chief Executive Officer positions, which the Board believes facilitates faster and more efficient formulation and execution of business strategies, with the Board's operations sufficient to maintain a balance of power[72](index=72&type=chunk) - Except as disclosed, the Board believes that the company has complied with all applicable code provisions set out in the Corporate Governance Code during the period[73](index=73&type=chunk) [Compliance with Model Code for Securities Transactions](index=21&type=section&id=%E9%81%B5%E5%AE%88%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers, with all directors and relevant employees confirming compliance with the required standards during the period - The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers, as set out in Appendix C3 of the Listing Rules, as a guide for directors' dealings in the company's securities[74](index=74&type=chunk) - All directors and relevant employees have confirmed their compliance with the required standards set out in the Model Code during the period[74](index=74&type=chunk) [Review by Audit Committee](index=21&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83%E5%AF%A9%E9%96%B1) The Audit Committee has reviewed the Group's unaudited interim results for the six months ended June 30, 2025, and concurred with management - The Audit Committee, comprising three independent non-executive directors, has reviewed the Group's unaudited interim results for the six months ended June 30, 2025[75](index=75&type=chunk) - The Audit Committee and the company's management have also reviewed and concurred with the accounting principles and practices adopted by the Group[75](index=75&type=chunk) [Publication of Interim Results and Report](index=21&type=section&id=%E5%88%8A%E7%99%BC%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%8F%8A%E5%A0%B1%E5%91%8A) This interim results announcement has been published on the websites of Hong Kong Exchanges and Clearing Limited and the company, with the interim report to be dispatched to shareholders and posted on the aforementioned websites in due course - This interim results announcement has been published on the websites of Hong Kong Exchanges and Clearing Limited (www.hkexnews.hk) and the company (www.lcang.com)[76](index=76&type=chunk) - The company's interim report for the six months ended June 30, 2025, containing all information required by the Listing Rules, will be dispatched to shareholders and posted on the aforementioned websites in due course[76](index=76&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，並明確表示概不就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。 本公告載有涉及風險及不確定因素的前瞻性陳述。除歷史事實陳述以外的所有陳述均為前瞻性陳 述。該等陳述涉及已知及未知的風險、不確定因素及其他因素，當中部分並非本公司所能控制，且 可導致實際業績、表現或成果與前瞻性陳述所明示或暗示者存在重大差異。 閣下不應依賴前瞻性 陳述作為未來事件的預測。本公司概不負責更新或修訂任何前瞻性陳述，無論是否由於新資料、未 來事件或其他因素所致。 ADICON Holdings Limited 艾迪康控股有限公司 （於開曼群島註冊成立之有限公司） （股份代號：9860） 截 至2025年6月30日止六個月之 中期業績公告 董事會欣然宣佈本集團截至2025年6月30日止六個月之未經審核綜合中期業績以及 2024年同期之比較數字。 於本公告內，「我們」指本公司，如文義另有所指，則指本集團。本公告內所載的若 干金額及百分比數字已作出約整。任何表格、圖表或其他地方所列總數與金額總和 之間的 ...

[Company Overview](index=1&type=section&id=I.%20Company%20Overview) The company is a biopharmaceutical firm focused on the research, development, and commercialization of pharmaceutical products, with a strong pipeline and significant financial adjustments in the reporting period [Company Information](index=1&type=section&id=1.1%20Company%20Information) Antengene Corporation Limited, registered in the Cayman Islands, is primarily engaged in the R&D and commercialization of pharmaceutical products - Company Name: **Antengene Corporation Limited**[2](index=2&type=chunk) - Business Scope: Research and commercialization of pharmaceutical products[3](index=3&type=chunk) - Reporting Period: Unaudited condensed consolidated results for the six months ended June 30, 2025[3](index=3&type=chunk) [Financial Highlights](index=1&type=section&id=1.2%20Financial%20Highlights) For the six months ended June 30, 2025, revenue decreased by 12.5% year-on-year, but loss significantly narrowed by 54.3% due to reduced R&D, selling, and administrative expenses, with adjusted loss also decreasing by 52.2% Interim Condensed Consolidated Financial Highlights for the Six Months Ended June 30, 2025 | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 53,182 | 60,779 | -12.5% | | Other income and gains | 38,126 | 27,317 | +39.6% | | R&D costs | (79,935) | (130,841) | -38.9% | | Selling and distribution expenses | (36,990) | (56,028) | -34.0% | | Administrative expenses | (39,304) | (58,478) | -32.8% | | Loss for the period | (76,378) | (167,033) | -54.3% | | Adjusted loss for the period* | (72,858) | (152,567) | -52.2% | *Excluding equity-settled share-based payment expenses - Revenue decrease primarily due to 2023 December Selinexor's inclusion in the medical insurance catalog, followed by market demand rationalization, but **increased by RMB 22.0 million** in H1 2025 compared to H2 2024, reflecting steady growth[5](index=5&type=chunk) - Increase in other income and gains mainly attributed to **higher government grants**[5](index=5&type=chunk) - Reduction in R&D, selling and distribution, and administrative expenses primarily due to decreased drug development expenses, employee costs, and market development expenses, reflecting enhanced R&D efficiency and continuous cost control[5](index=5&type=chunk)[6](index=6&type=chunk) [Business Highlights](index=3&type=section&id=1.3%20Business%20Highlights) During the reporting period, the company achieved significant progress in its product pipeline and operations, including Selinexor's medical insurance inclusion and new indication approvals in multiple APAC regions, positive advancements in several clinical and preclinical assets, and plans to increase investment in AI for next-generation T-cell engager pipeline development - Selinexor (XPOVIO®) approved for inclusion in National Health Insurance in **Taiwan, China**, and received New Drug Application (NDA) approval for **three indications in Indonesia**[8](index=8&type=chunk) - Phase II CLINCH study for ATG-022 (Claudin 18.2 antibody-drug conjugate) is ongoing in Mainland China and Australia, with a global clinical collaboration with MSD to evaluate its efficacy in combination with KEYTRUDA®[8](index=8&type=chunk) - Phase I STAMINA trial for ATG-037 (CD73 inhibitor) completed, with plans to initiate Phase II; combination therapy showed **100% disease control rate** in CPI-resistant melanoma patients[11](index=11&type=chunk) - I/II phase TORCH-2 study data for ATG-008 (mTORC1/2 inhibitor) combined with toripalimab showed potential for significant clinical benefit in CPI-resistant cervical cancer patients[11](index=11&type=chunk) - Steady progress achieved with the company's novel "2+1" T-cell engager platform AnTenGager™, with plans to establish a dedicated AI department to accelerate the development of next-generation proprietary TCE pipeline[13](index=13&type=chunk) - The company adheres to a "combination and complementary" R&D strategy, focusing on discovering, developing, and commercializing global first-in-class, only-in-class, and/or best-in-class therapies[14](index=14&type=chunk) [Management Discussion and Analysis](index=6&type=section&id=II.%20Management%20Discussion%20and%20Analysis) This section provides an in-depth review of the company's vision, financial performance, pipeline advancements, R&D strategies, and future outlook, highlighting key achievements and strategic directions [Vision and Overview](index=6&type=section&id=2.1%20Vision%20and%20Overview) Antengene is an APAC biopharmaceutical company focused on innovative oncology drugs, committed to discovering, developing, and commercializing global first-in-class, only-in-class, and/or best-in-class therapies to improve patient lives, with a robust pipeline including one commercialized product and five clinical-stage projects - Company Vision: Discover, develop, and commercialize global first-in-class, only-in-class, and/or best-in-class therapies to treat patients across borders and improve their quality of life[15](index=15&type=chunk) - Company Positioning: A commercial-stage biopharmaceutical company in the Asia-Pacific region, focused on innovative oncology drugs since its operation in 2017[16](index=16&type=chunk) - R&D Pipeline: Includes **one commercial-stage product**, **five clinical-stage projects**, and multiple preclinical-stage projects, adopting a "combination and complementary" R&D strategy[16](index=16&type=chunk) - Selinexor (XPOVIO®) has received NDA approvals in multiple APAC regions[16](index=16&type=chunk) [Financial Performance Analysis](index=26&type=section&id=2.2%20Financial%20Performance%20Analysis) During the reporting period, the company's revenue decreased year-on-year, but strict cost control led to significant reductions in R&D, selling, and administrative expenses, resulting in a substantial narrowing of both loss for the period and adjusted loss, with increased government grants also contributing positively to other income and gains Key Financial Data for the Six Months Ended June 30, 2025 | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | YoY Change (RMB thousands) | | :--- | :--- | :--- | :--- | | Revenue | 53,182 | 60,779 | (7,597) | | Other income and gains | 38,126 | 27,317 | 10,809 | | R&D costs | (79,935) | (130,841) | 50,906 | | Selling and distribution expenses | (36,990) | (56,028) | 19,038 | | Administrative expenses | (39,304) | (58,478) | 19,174 | | Loss for the period | (76,378) | (167,033) | 90,655 | | Adjusted loss for the period | (72,858) | (152,567) | 79,709 | [Revenue and Gross Profit](index=26&type=section&id=2.2.1%20Revenue%20and%20Gross%20Profit) Revenue decreased from RMB 60.8 million in H1 2024 to RMB 53.2 million in H1 2025, primarily due to market demand rationalization after Selinexor's inclusion in medical insurance in December 2023, but showed steady growth compared to H2 2024 - Revenue decreased from **RMB 60.8 million** in H1 2024 to **RMB 53.2 million** in H1 2025, mainly impacted by market demand rationalization after medical insurance inclusion in December 2023[79](index=79&type=chunk) - Despite the year-on-year decrease, H1 2025 revenue **increased by RMB 22.0 million** compared to H2 2024, indicating steady growth and stable conditions[79](index=79&type=chunk) [Other Income and Gains](index=26&type=section&id=2.2.2%20Other%20Income%20and%20Gains) Other income and gains increased by RMB 10.8 million from RMB 27.3 million in H1 2024 to RMB 38.1 million in H1 2025, primarily due to increased government grants - Other income and gains increased by **RMB 10.8 million** from **RMB 27.3 million** in H1 2024 to **RMB 38.1 million** in H1 2025, mainly attributed to increased government grants[80](index=80&type=chunk) [Research and Development Costs](index=27&type=section&id=2.2.3%20Research%20and%20Development%20Costs) R&D costs decreased by RMB 50.9 million from RMB 130.8 million in H1 2024 to RMB 79.9 million in H1 2025, primarily due to reduced drug development expenses and R&D employee costs, reflecting improved R&D efficiency - R&D costs decreased by **RMB 50.9 million** from **RMB 130.8 million** in H1 2024 to **RMB 79.9 million** in H1 2025[81](index=81&type=chunk) - The decrease was mainly due to reduced drug development expenses and R&D employee costs, reflecting the gradual settlement of late-stage assets and improved R&D efficiency[81](index=81&type=chunk) R&D Cost Components | Component | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Employee costs | 36,695 | 51,327 | | - Equity-settled share-based payment expenses | 2,457 | 9,171 | | Depreciation and amortization | 2,790 | 6,312 | | Drug development expenses | 36,830 | 62,479 | | Professional fees | 342 | 7,574 | | Others | 3,278 | 3,149 | | **Total** | **79,935** | **130,841** | [Selling and Distribution Expenses](index=27&type=section&id=2.2.4%20Selling%20and%20Distribution%20Expenses) Selling and distribution expenses decreased by RMB 19.0 million from RMB 56.0 million in H1 2024 to RMB 37.0 million in H1 2025, mainly due to reduced market development expenses and commercial employee costs, reflecting enhanced promotion efficiency and continuous cost control - Selling and distribution expenses decreased by **RMB 19.0 million** from **RMB 56.0 million** in H1 2024 to **RMB 37.0 million** in H1 2025[83](index=83&type=chunk) - The decrease was mainly due to reduced market development expenses and commercial employee costs, reflecting enhanced promotion efficiency and continuous cost control[83](index=83&type=chunk) Selling and Distribution Expense Components | Component | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Employee costs | 9,157 | 12,603 | | - Equity-settled share-based payment expenses | 80 | 1,151 | | Market development expenses | 27,520 | 42,729 | | Depreciation and amortization | 171 | 317 | | Others | 142 | 379 | | **Total** | **36,990** | **56,028** | [Administrative Expenses](index=28&type=section&id=2.2.5%20Administrative%20Expenses) Administrative expenses decreased by RMB 19.2 million from RMB 58.5 million in H1 2024 to RMB 39.3 million in H1 2025, primarily due to reduced employee costs, reflecting improved operational efficiency - Administrative expenses decreased by **RMB 19.2 million** from **RMB 58.5 million** in H1 2024 to **RMB 39.3 million** in H1 2025[85](index=85&type=chunk) - The decrease was mainly due to reduced employee costs, reflecting improved operational efficiency[85](index=85&type=chunk) Administrative Expense Components | Component | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Employee costs | 20,707 | 33,714 | | - Equity-settled share-based payment expenses | 983 | 4,144 | | Professional fees | 6,717 | 9,878 | | Depreciation and amortization | 6,787 | 6,617 | | Others | 5,093 | 8,269 | | **Total** | **39,304** | **58,478** | [Loss for the Period and Adjusted Loss](index=28&type=section&id=2.2.6%20Loss%20for%20the%20Period%20and%20Adjusted%20Loss) Loss for the period significantly decreased from RMB 167.0 million in H1 2024 to RMB 76.4 million in H1 2025, primarily due to reduced R&D, selling and distribution, and administrative expenses, with adjusted loss also showing a substantial reduction - Loss for the period decreased from **RMB 167.0 million** in H1 2024 to **RMB 76.4 million** in H1 2025, mainly due to reduced R&D, selling and distribution, and administrative expenses[6](index=6&type=chunk) - Adjusted loss for the period (excluding equity-settled share-based payment expenses) decreased by **52.2%** from **RMB 152.6 million** in H1 2024 to **RMB 72.9 million** in H1 2025[7](index=7&type=chunk) Reconciliation of Loss and Adjusted Loss | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Loss for the period | (76,378) | (167,033) | | Add: Equity-settled share-based payment expenses | 3,520 | 14,466 | | **Adjusted loss for the period** | **(72,858)** | **(152,567)** | [Pipeline Progress](index=6&type=section&id=2.3%20Pipeline%20Progress) Antengene's pipeline focuses on oncology and autoimmune diseases, comprising one commercialized asset, five clinical-stage, and multiple preclinical-stage projects, with significant advancements in Selinexor's market access and other clinical candidates - The company's pipeline focuses on oncology and autoimmune diseases, including **one commercial-stage asset**, **five clinical-stage projects**, and multiple preclinical-stage projects[17](index=17&type=chunk) [Commercialized Products](index=8&type=section&id=2.3.1%20Commercialized%20Products) Selinexor (ATG-010, XPOVIO®), the company's first commercialized product, is an oral selective nuclear export inhibitor (SINE) for various hematological malignancies and solid tumors, achieving significant market access and new indication approvals in multiple APAC regions - Selinexor (ATG-010, XPOVIO®) is the company's first commercialized product, an oral Selective Nuclear Export Inhibitor (SINE) for treating various hematological malignancies and solid tumors[21](index=21&type=chunk) - In February 2025, XPOVIO® was approved for inclusion in the National Health Insurance in **Taiwan, China**; in March 2025, Indonesia's BPOM approved its NDA for **three indications**[8](index=8&type=chunk)[26](index=26&type=chunk)[27](index=27&type=chunk) - As of June 30, 2025, XPOVIO® has received NDA approvals in Mainland China, South Korea, Singapore, Australia, Malaysia, Thailand, Taiwan, China, Hong Kong, China, Macau, China, and Indonesia[27](index=27&type=chunk) - The company is conducting a Phase II/III registration trial in Mainland China for XPOVIO® in combination with R-GDP for rrDLBCL[27](index=27&type=chunk) [Other Clinical Stage Candidates](index=10&type=section&id=2.3.2%20Other%20Clinical%20Stage%20Candidates) Several clinical-stage candidates are progressing, including ATG-022, which received US FDA orphan drug designation and entered a global clinical collaboration with MSD, and ATG-037, which completed its Phase I trial - ATG-022 (Claudin 18.2 antibody-drug conjugate) Phase II CLINCH study is ongoing in China and Australia, and received **US FDA orphan drug designation** for gastric and pancreatic cancer[28](index=28&type=chunk) - In May 2025, a global clinical collaboration was established with MSD to evaluate the efficacy of ATG-022 in combination with KEYTRUDA® for advanced solid tumors[8](index=8&type=chunk)[28](index=28&type=chunk) - ATG-037 (CD73 inhibitor) Phase I STAMINA trial completed dosing, and the Ib/II phase has been initiated[29](index=29&type=chunk) - ATG-031 (CD24 antibody) PERFORM Phase I trial is undergoing dose escalation in the US[29](index=29&type=chunk) - ATG-101 (PD-L1x4-1BB bispecific antibody) Phase I study is undergoing dose escalation in Australia, China, and the US, and received **US FDA orphan drug designation** for pancreatic cancer[29](index=29&type=chunk) [Other Late-Stage Candidates](index=11&type=section&id=2.3.3%20Other%20Late-Stage%20Candidates) The I/II phase TORCH-2 study for ATG-008 (onatasertib, mTORC1/2 inhibitor) in combination with toripalimab has been completed, showing promising clinical benefits for CPI-resistant cervical cancer patients - ATG-008 (onatasertib, mTORC1/2 inhibitor) I/II phase TORCH-2 study in combination with toripalimab has been completed[30](index=30&type=chunk) - TORCH-2 study data showed an **Overall Response Rate (ORR) of 22.2%**, a **Disease Control Rate (DCR) of 85.2%**, and a **median Overall Survival (OS) of 21.4 months** for CPI-resistant cervical cancer patients with this combination regimen[11](index=11&type=chunk)[31](index=31&type=chunk) [Preclinical Candidates](index=11&type=section&id=2.3.4%20Preclinical%20Candidates) Multiple preclinical candidates, including ATG-042, ATG-201, and ATG-106, are undergoing preclinical research to support future IND/CTA applications - Multiple preclinical candidates, including ATG-042 (PRMT5-MTA inhibitor), ATG-201 (CD19 x CD3 T-cell engager), and ATG-106 (CDH6 x CD3 T-cell engager), are undergoing preclinical research to support IND/CTA applications[12](index=12&type=chunk)[32](index=32&type=chunk)[33](index=33&type=chunk) [Technology Platform and R&D Strategy](index=12&type=section&id=2.4%20Technology%20Platform%20and%20R%26D%20Strategy) The company is making steady progress with its novel T-cell engager platform AnTenGager™ and plans to establish a dedicated AI department to accelerate the development of next-generation TCE pipeline, focusing on a "combination and complementary" R&D strategy for cancer treatment - Steady progress achieved with the novel "2+1" T-cell engager platform AnTenGager™, which can enhance efficacy and reduce CRS risk[13](index=13&type=chunk)[34](index=34&type=chunk) - Plans to increase investment and integrate resources to establish a dedicated AI department, equipped with DeepSeek, to accelerate the development of next-generation proprietary TCE pipeline[13](index=13&type=chunk)[34](index=34&type=chunk) - R&D strategy focuses on cancer treatment, adopting a differentiated "combination and complementary" approach to build a pipeline of synergistic first-in-class/best-in-class assets[35](index=35&type=chunk) - As of June 30, 2025, the company has **nine clinical studies** ongoing in Mainland China, the US, and Australia[36](index=36&type=chunk) - XPOVIO® has been included in the 2023 National Medical Insurance Catalog, and its new indication (rrDLBCL) was also included in the 2024 National Medical Insurance Catalog, effective January 1, 2025[36](index=36&type=chunk) - As of June 30, 2025, the company holds **five pending Patent Cooperation Treaty (PCT) applications** and **eight PCT applications** that have entered the national phase[37](index=37&type=chunk) [Business Development and Future Outlook](index=13&type=section&id=2.5%20Business%20Development%20and%20Future%20Outlook) During the reporting period, the company did not engage in new business development activities, strategically focusing on advancing core R&D programs and enhancing technological capabilities, with future plans to progress clinical-stage product development, build a global and APAC pipeline through external collaborations and internal discovery, and strengthen its commercial team for Selinexor's commercialization - No new business development activities were undertaken during the reporting period, consistent with the strategy of focusing on advancing core R&D programs[14](index=14&type=chunk)[38](index=38&type=chunk) - The company will continue to advance the clinical development of **nine clinical-stage products** across various therapeutic areas[40](index=40&type=chunk) - Will continue to implement a dual-engine approach of external collaboration and internal discovery to build a global and APAC pipeline focused on key oncogenic pathways, tumor microenvironment, tumor-associated antigens, and autoimmune diseases[40](index=40&type=chunk) - Will continue to build its commercial team to prepare for the commercialization of XPOVIO® in the APAC region, addressing unmet medical needs[40](index=40&type=chunk) [Post-Reporting Period Events](index=13&type=section&id=2.6%20Post-Reporting%20Period%20Events) After the reporting period, Selinexor received new indication approval in China, and ATG-022 was granted Breakthrough Therapy Designation, further enhancing the market potential and development speed of the company's product pipeline - In July 2025, China's NMPA approved XPOVIO® (Selinexor) in combination with bortezomib and dexamethasone for the treatment of adult MM patients who have received at least one prior therapy[39](index=39&type=chunk) - In August 2025, ATG-022 was granted Breakthrough Therapy Designation (BTD) by China's NMPA Center for Drug Evaluation (CDE) for the treatment of CLDN18.2-positive, HER2-negative unresectable or metastatic gastric cancer/gastroesophageal junction adenocarcinoma patients[39](index=39&type=chunk) [Financial Statements](index=14&type=section&id=III.%20Financial%20Statements) This section presents the interim condensed consolidated financial statements, including the statement of profit or loss, comprehensive income, and financial position, providing a snapshot of the company's financial performance and health [Interim Condensed Consolidated Statement of Profit or Loss](index=14&type=section&id=3.1%20Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, the company reported revenue of RMB 53,182 thousand and a gross profit of RMB 42,908 thousand, with the loss for the period significantly narrowing to RMB 76,378 thousand from RMB 167,033 thousand in the prior year Interim Condensed Consolidated Statement of Profit or Loss (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 53,182 | 60,779 | | Cost of sales | (10,274) | (8,856) | | Gross profit | 42,908 | 51,923 | | Other income and gains | 38,126 | 27,317 | | R&D costs | (79,935) | (130,841) | | Selling and distribution expenses | (36,990) | (56,028) | | Administrative expenses | (39,304) | (58,478) | | Other expenses | (985) | (478) | | Finance costs | (198) | (448) | | Loss before tax | (76,378) | (167,033) | | Income tax expense | – | – | | Loss for the period | (76,378) | (167,033) | | Basic and diluted loss per share attributable to owners of the parent | RMB (0.12) | RMB (0.27) | [Interim Condensed Consolidated Statement of Comprehensive Income](index=15&type=section&id=3.2%20Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, the company's total comprehensive loss for the period significantly decreased to RMB 87,994 thousand from RMB 168,242 thousand in the prior year, primarily due to the narrowed loss for the period Interim Condensed Consolidated Statement of Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Loss for the period | (76,378) | (167,033) | | Exchange differences on translation of overseas operations | (11,616) | (1,209) | | Other comprehensive loss for the period, net of tax | (11,616) | (1,209) | | **Total comprehensive loss for the period** | **(87,994)** | **(168,242)** | | Attributable to owners of the parent | (87,994) | (168,242) | [Interim Condensed Consolidated Statement of Financial Position](index=16&type=section&id=3.3%20Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets were RMB 1,075,557 thousand, with net assets of RMB 766,327 thousand and net current assets of RMB 660,371 thousand, indicating healthy liquidity and debt-to-asset ratios Interim Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Total non-current assets | 415,186 | 388,577 | | Total current assets | 850,435 | 956,155 | | Total current liabilities | 190,064 | 146,325 | | Net current assets | 660,371 | 809,830 | | Total assets less current liabilities | 1,075,557 | 1,198,407 | | Total non-current liabilities | 309,230 | 347,606 | | Net assets | 766,327 | 850,801 | | Total equity | 766,327 | 850,801 | [Notes to the Financial Statements](index=17&type=section&id=IV.%20Notes%20to%20the%20Financial%20Statements) This section provides detailed explanations and breakdowns of the financial statements, covering company information, accounting policies, segment reporting, revenue analysis, loss components, tax, dividends, loss per share, and various payables [Company and Group Information](index=17&type=section&id=4.1%20Company%20and%20Group%20Information) Antengene Corporation Limited, an investment holding company incorporated in the Cayman Islands on August 28, 2018, with its shares listed on the Main Board of the Hong Kong Stock Exchange on November 20, 2020, primarily engages in the R&D and commercialization of pharmaceutical products through its subsidiaries - The company was incorporated in the Cayman Islands on **August 28, 2018**[46](index=46&type=chunk) - The company is an investment holding company, with subsidiaries involved in the R&D and commercialization of pharmaceutical products[47](index=47&type=chunk) - The company's shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited on **November 20, 2020**[48](index=48&type=chunk) [Basis of Preparation and Changes in Accounting Policies](index=17&type=section&id=4.2%20Basis%20of%20Preparation%20and%20Changes%20in%20Accounting%20Policies) The interim condensed consolidated financial information is prepared in accordance with IAS 34 and is consistent with the accounting policies used for the annual consolidated financial statements for the year ended December 31, 2024, with the initial adoption of IAS 21 (Amendments) "Lack of Exchangeability" having no impact on the Group's financial information - The interim condensed consolidated financial information is prepared in accordance with **International Accounting Standard 34 "Interim Financial Reporting"**[49](index=49&type=chunk) - Accounting policies are consistent with the annual consolidated financial statements for the year ended December 31, 2024, except for the initial adoption of **IAS 21 (Amendments) "Lack of Exchangeability"**[50](index=50&type=chunk) - IAS 21 (Amendments) has no impact on the interim condensed consolidated financial information as all the Group's transaction currencies are exchangeable[51](index=51&type=chunk) [Operating Segments and Geographical Information](index=18&type=section&id=4.3%20Operating%20Segments%20and%20Geographical%20Information) The Group operates in a single reportable operating segment, the R&D and commercialization of pharmaceutical products, with Mainland China remaining the primary source of revenue, though revenue from other countries/regions has grown, and non-current assets are mainly concentrated in Mainland China - The Group has only **one reportable operating segment**: the research and development and commercialization of pharmaceutical products[52](index=52&type=chunk) Revenue from External Customers (by Geographical Region) | Region | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Mainland China | 43,621 | 53,569 | | Other countries/regions | 9,561 | 7,210 | | **Total Revenue** | **53,182** | **60,779** | Non-current Assets (by Geographical Region) | Region | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Mainland China | 379,523 | 353,622 | | Other countries/regions | 1,885 | 4,651 | | **Total Non-current Assets** | **381,408** | **358,273** | [Analysis of Revenue, Other Income and Gains](index=19&type=section&id=4.4%20Analysis%20of%20Revenue,%20Other%20Income%20and%20Gains) The company's revenue primarily stems from the sale of pharmaceutical products, with Mainland China contributing the majority, while other income and gains are mainly composed of government grants, bank interest income, and foreign exchange gains, with government grants showing a significant increase Analysis of Revenue from Customer Contracts | Category | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | **Type of goods** | | | | Sale of pharmaceutical products | 53,182 | 60,779 | | **Geographical market** | | | | Mainland China | 43,621 | 53,569 | | Other countries/regions | 9,561 | 7,210 | | **Timing of revenue recognition** | | | | Goods transferred at a point in time | 53,182 | 60,779 | - Performance obligations are satisfied upon delivery of pharmaceutical products, with payments generally due within **60 to 150 days** after the billing date[56](index=56&type=chunk) Analysis of Other Income and Gains | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | **Other income** | | | | Government grants | 14,614 | 811 | | Bank interest income | 10,270 | 20,292 | | Others | 382 | – | | Other interest income from financial assets | 1 | 1 | | **Other gains** | | | | Gain on disposal of right-of-use assets from early termination of leases | 624 | – | | Foreign exchange gains | 12,235 | 6,181 | | Fair value change of equity investments | – | 32 | | **Total other income and gains** | **38,126** | **27,317** | - Government grants refer to subsidies received from local governments with no unfulfilled conditions[56](index=56&type=chunk) [Components of Loss Before Tax](index=21&type=section&id=4.5%20Components%20of%20Loss%20Before%20Tax) Loss before tax primarily comprises cost of inventories sold, depreciation and amortization, lease payments, and employee benefit expenses; during the reporting period, both employee benefit expenses and depreciation and amortization decreased, while foreign exchange gains positively impacted loss reduction Components of Loss Before Tax (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Cost of inventories sold | 10,274 | 8,856 | | Depreciation of property, plant and equipment | 6,257 | 8,149 | | Depreciation of right-of-use assets | 3,250 | 4,763 | | Amortization of other intangible assets | 241 | 334 | | Lease payments not included in the measurement of lease liabilities | 340 | 1,498 | | Total employee benefit expenses | 66,560 | 97,644 | | Foreign exchange gains | (12,235) | (6,181) | | Fair value loss/(gain) on financial assets | 21 | (32) | | Gain on disposal of right-of-use assets from early termination of leases | (624) | – | | Loss on disposal of items of property, plant and equipment | 317 | 43 | - Employee benefit expenses include wages and salaries, contributions to pension schemes, staff welfare expenses, and equity-settled share-based payment expenses[57](index=57&type=chunk) [Income Tax](index=22&type=section&id=4.6%20Income%20Tax) The Group is subject to income tax in various jurisdictions at local rates, including Hong Kong (16.5%/8.25%), Macau (12%), Mainland China (25%), Australia (25%), Singapore (17%), South Korea (10%), and the US (21% federal + 8.7% state); no income tax provision was made for the reporting period due to the absence of assessable profits - The Group is subject to income tax on profits arising in or derived from the jurisdictions where its member companies are located and operate[58](index=58&type=chunk) - Corporate income tax rates in major jurisdictions: Hong Kong **16.5%** (partially **8.25%**), Macau **12%**, Mainland China **25%**, Australia **25%**, Singapore **17%**, South Korea **10%**, US federal **21%** plus Delaware state **8.7%**[61](index=61&type=chunk)[62](index=62&type=chunk)[63](index=63&type=chunk)[64](index=64&type=chunk)[65](index=65&type=chunk)[66](index=66&type=chunk)[67](index=67&type=chunk) - No income tax provision was made for the six months ended June 30, 2025, as the Group did not generate any assessable profits[68](index=68&type=chunk) [Dividends](index=23&type=section&id=4.7%20Dividends) The company did not pay or declare any dividends for the six months ended June 30, 2025 - The company did not pay or declare any dividends for the six months ended June 30, 2025[69](index=69&type=chunk) [Loss Per Share](index=23&type=section&id=4.8%20Loss%20Per%20Share) For the six months ended June 30, 2025, the basic and diluted loss per share attributable to ordinary equity holders of the parent was RMB (0.12), an improvement from RMB (0.27) in the prior year, with outstanding share options and restricted share units having an anti-dilutive effect - The calculation of basic loss per share is based on the loss for the period attributable to ordinary equity holders of the parent and the weighted average number of ordinary shares outstanding during the period, which was **620,441,464 shares**[70](index=70&type=chunk) - For the six months ended June 30, 2025, basic and diluted loss per share was **RMB (0.12)** (2024: RMB (0.27))[42](index=42&type=chunk) - Outstanding share options and restricted share units had an anti-dilutive effect on the basic loss per share, thus no dilutive adjustment was made[70](index=70&type=chunk) Data for Basic and Diluted Loss Per Share Calculation | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Loss for the period attributable to owners of the parent used in calculating basic and diluted loss per share | (76,378) | (167,033) | | Weighted average number of ordinary shares outstanding during the period used in calculating basic and diluted loss per share | 620,441,464 | 618,974,062 | [Trade Receivables](index=24&type=section&id=4.9%20Trade%20Receivables) As of June 30, 2025, total trade receivables amounted to RMB 22,636 thousand, all of which are due within six months Aging Analysis of Trade Receivables | Aging | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within six months | 22,636 | 18,675 | | **Total** | **22,636** | **18,675** | [Trade Payables](index=24&type=section&id=4.10%20Trade%20Payables) As of June 30, 2025, total trade payables amounted to RMB 4,627 thousand, all due within three months and non-interest bearing Aging Analysis of Trade Payables | Aging | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within three months | 4,627 | 3,579 | | **Total** | **4,627** | **3,579** | - Trade payables are non-interest bearing and generally settled within **two to three months**[75](index=75&type=chunk) [Other Payables and Accruals](index=25&type=section&id=4.11%20Other%20Payables%20and%20Accruals) As of June 30, 2025, total other payables and accruals amounted to RMB 142,711 thousand, primarily comprising deferred income, accrued salaries, payables for property, plant and equipment purchases, and fees for CRO, CDMO, and SMO services Components of Other Payables and Accruals | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Deferred income | 22,317 | 22,987 | | Accrued salaries | 13,478 | 17,455 | | Other taxes payable | 5,697 | 5,730 | | Payables for purchase of property, plant and equipment | 24,574 | 368 | | Other payables and accruals | 76,645 | 72,460 | | **Total** | **142,711** | **119,000** | - Deferred income refers to government grants related to assets, which will be recognized in profit or loss over the expected useful life of the related assets[78](index=78&type=chunk) - Other payables and accruals mainly include accrued or invoiced but unpaid fees for services provided by Contract Research Organizations (CRO), Contract Development and Manufacturing Organizations (CDMO), and Site Management Organizations (SMO)[78](index=78&type=chunk) [Other Information](index=29&type=section&id=V.%20Other%20Information) This section covers various non-financial aspects of the company, including employee and remuneration policies, liquidity and financial resources, investment activities, foreign exchange risk, contingent liabilities, corporate governance, use of listing proceeds, interim results review, public float, and material litigation [Employees and Remuneration Policy](index=29&type=section&id=5.1%20Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the company had 152 employees, with R&D personnel constituting the largest proportion, and provides comprehensive remuneration, benefits, and on-the-job training to support employee career development Number of Employees by Function (As of June 30, 2025) | Function | Number of Employees | % of Total Employees | | :--- | :--- | :--- | | General and Administration | 41 | 27.0 | | R&D | 73 | 48.0 | | Commercialization | 16 | 10.5 | | Manufacturing | 22 | 14.5 | | **Total** | **152** | **100.0** | - The company has **125 employees in China** and **27 employees overseas**[90](index=90&type=chunk) - Employee remuneration includes salaries, bonuses, provident fund and social insurance contributions, and other benefit payments[90](index=90&type=chunk) - The company provides extensive on-the-job training, induction training, and mentorship programs to help employees develop professional knowledge and management skills[90](index=90&type=chunk) [Liquidity and Financial Resources](index=30&type=section&id=5.2%20Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the company's cash and bank balances were RMB 794.1 million, with a current ratio of 447.4% and a gearing ratio of 39.5%, indicating healthy liquidity and financial stability - As of June 30, 2025, cash and bank balances were **RMB 794.1 million** (December 31, 2024: RMB 900.1 million), with the decrease primarily due to operating expenses[91](index=91&type=chunk) - Current assets were **RMB 850.4 million**, and current liabilities were **RMB 190.1 million**[92](index=92&type=chunk) - The current ratio was **447.4%** (December 31, 2024: 653.4%)[93](index=93&type=chunk) - The gearing ratio was **39.5%** (December 31, 2024: 36.7%)[94](index=94&type=chunk) [Material Investments, Acquisitions and Disposals](index=30&type=section&id=5.3%20Material%20Investments,%20Acquisitions%20and%20Disposals) As of June 30, 2025, the company held no material investments and had no material acquisitions or disposals of subsidiaries, associates, and joint ventures during the reporting period - As of June 30, 2025, the company held **no material investments**[95](index=95&type=chunk) - For the six months ended June 30, 2025, the company had **no material acquisitions or disposals** of subsidiaries, associates, and joint ventures[95](index=95&type=chunk) [Future Plans for Material Investments or Capital Assets](index=31&type=section&id=5.4%20Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) As of June 30, 2025, the company had no specific plans for material investments or capital assets - As of June 30, 2025, the company had **no specific plans** for material investments or capital assets[96](index=96&type=chunk) [Foreign Exchange Risk](index=31&type=section&id=5.5%20Foreign%20Exchange%20Risk) The company is exposed to transactional currency risk, with a significant portion of bank balances and interest receivables denominated in foreign currencies; currently, there is no foreign exchange hedging policy, but management monitors and considers hedging significant foreign exchange risks when necessary - The company is exposed to transactional currency risk, with a majority of bank balances and interest receivables denominated in foreign currencies[97](index=97&type=chunk) - Currently, there is **no foreign exchange hedging policy**, but management monitors foreign exchange risk and will consider hedging when necessary[97](index=97&type=chunk) [Contingent Liabilities and Pledged Assets](index=31&type=section&id=5.6%20Contingent%20Liabilities%20and%20Pledged%20Assets) As of June 30, 2025, the company had no material contingent liabilities and had pledged leased land totaling RMB 41.8 million to secure bank financing - As of June 30, 2025, the company had **no material contingent liabilities**[98](index=98&type=chunk) - The Group has pledged leased land totaling **RMB 41.8 million** to secure bank financing[99](index=99&type=chunk) [Corporate Governance and Securities Transactions](index=31&type=section&id=5.7%20Corporate%20Governance%20and%20Securities%20Transactions) The company is committed to maintaining high standards of corporate governance and complies with the Corporate Governance Code, with the Chairman and CEO roles held by the same individual, an arrangement the Board believes facilitates strategy execution and communication, supported by sufficient checks and balances; directors and relevant employees adhere to the Standard Securities Dealing Code - The company complies with the Corporate Governance Code set out in Appendix C1 Part 2 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[100](index=100&type=chunk) - The roles of Chairman and Chief Executive Officer are held by the founder, Dr. Jianming Mei, an arrangement the Board believes facilitates strategy execution and information communication[100](index=100&type=chunk) - The Board of Directors comprises **two executive directors** and **three independent non-executive directors**, ensuring sufficient checks and balances[101](index=101&type=chunk) - All directors confirmed compliance with the Standard Securities Dealing Code for Directors of Listed Issuers during the reporting period[102](index=102&type=chunk) - During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[103](index=103&type=chunk) [Use of Proceeds from Listing](index=33&type=section&id=5.8%20Use%20of%20Proceeds%20from%20Listing) The net proceeds from the initial public offering were approximately RMB 2,274.70 million, with an unutilized net amount of approximately RMB 376.61 million as of June 30, 2025; a portion of the proceeds was reallocated on March 22, 2024, and the remaining funds are expected to be fully utilized by December 31, 2026 - Net proceeds from the initial public offering were approximately **RMB 2,274.70 million**[104](index=104&type=chunk) - As of June 30, 2025, the total unutilized net proceeds amounted to approximately **RMB 376.61 million**[104](index=104&type=chunk) - On March 22, 2024, the Board resolved to reallocate approximately **RMB 553.93 million** of unutilized net proceeds to "fund ongoing preclinical research and planned clinical trials for other preclinical candidates in our pipeline"[108](index=108&type=chunk) - The unutilized net proceeds of **RMB 376.61 million** as of June 30, 2025, are expected to be fully utilized by **December 31, 2026**[108](index=108&type=chunk) Use of Net Proceeds from Listing | Purpose | Original Allocation (RMB million) | After Revised Allocation (RMB million) | Unutilized as of Dec 31, 2024 (RMB million) | Actual Use during Reporting Period (RMB million) | Unutilized as of June 30, 2025 (RMB million) | Expected Full Utilization Timeline | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Clinical trials and commercialization of core products | 932.63 | 932.63 | – | – | – | Not applicable | | Clinical trials for other clinical-stage candidates | 568.67 | 117.29 | 2.29 | 0.14 | 2.15 | By December 31, 2026 | | Research and clinical trials for preclinical candidates | 204.72 | 758.65 | 391.17 | 43.39 | 347.78 | By December 31, 2026 | | Pipeline expansion and business development | 318.46 | 215.91 | 29.44 | 2.76 | 26.68 | By December 31, 2026 | | Capital expenditure | 22.75 | 22.75 | – | – | – | Not applicable | | General corporate purposes | 227.47 | 227.47 | – | – | – | Not applicable | | **Total** | **2,274.70** | **2,274.70** | **422.90** | **46.29** | **376.61** | | [Review of Interim Results](index=34&type=section&id=5.9%20Review%20of%20Interim%20Results) The Audit Committee has reviewed the accounting principles and practices adopted by the Group and discussed internal controls and financial reporting matters with management, while external auditor Ernst & Young has conducted an independent review of the interim financial information - The Audit Committee, composed of **three independent non-executive directors**, has reviewed the accounting principles and practices adopted by the Group[105](index=105&type=chunk) - External auditor Ernst & Young has conducted an independent review of the interim financial information in accordance with **Hong Kong Standard on Review Engagements 2410**[105](index=105&type=chunk) [Public Float and Material Litigation](index=34&type=section&id=5.10%20Public%20Float%20and%20Material%20Litigation) Since the listing date, at least 25% of the company's total issued shares have been held by the public, complying with Listing Rules; during the reporting period, the company was not involved in any material litigation or arbitration - Since the listing date, at least **25%** of the company's total issued shares have been held by the public, in compliance with the Listing Rules[106](index=106&type=chunk) - During the reporting period, the company was **not involved in any material litigation or arbitration**, and the directors are unaware of any pending or threatened material litigation or claims against the Group[107](index=107&type=chunk) [Interim Dividend and Publication of Report](index=35&type=section&id=5.11%20Interim%20Dividend%20and%20Publication%20of%20Report) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025; the interim results announcement has been published on the HKEX and company websites, and the interim report will be published in September 2025 - The Board does **not recommend the payment of an interim dividend** for the six months ended June 30, 2025[109](index=109&type=chunk) - The interim results announcement has been published on the HKEX website and the company's website[110](index=110&type=chunk) - The interim report for the six months ended June 30, 2025, will be published on the HKEX and company websites in **September 2025**[110](index=110&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 China Boqi Environmental (Holding) Co., Ltd. 中 國 博 奇 環 保（ 控 股 ）有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：2377) 截至2025年6月30日止六個月之 中期業績公告 財務及營運摘要 截至2025年6月30日止六個月，本集團的收入為人民幣1,058百萬元，較去年同 期人民幣949百萬元增加11.5%。 截至2025年6月30日止六個月，本集團的毛利為人民幣243百萬元，較去年同期 人民幣199百萬元增加22.1%。本集團的毛利率為23.0%，較去年同期增加2.0個 百分點。 截至2025年6月30日止六個月，本集團純利為人民幣145百萬元及純利率為 13.7%，分別較去年同期人民幣116百萬元及12.2%增加25.0%及1.5個百分點。 中國博奇環保（控股）有限公司（「本公司」）董事（「董事」）會（「董事會」）公佈本公 司 ...

Financial Summary The group's financial performance for the six months ended June 30, 2025, shows significant growth in revenue, gross profit, and net profit, with adjusted net profit attributable to owners increasing by **62.0%** Financial Summary for the Six Months Ended June 30, 2025 | Metric | 2025 (Million HKD) | 2024 (Million HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 54,777 | 45,494 | 20.4% | | Gross Profit | 8,366 | 7,213 | 16.0% | | Profit After Tax | 1,048 | 653 | 60.5% | | Net Profit Attributable to Owners | 1,090 | 650 | 67.8% | | Adjusted Net Profit Attributable to Owners | 1,060 | 654 | 62.0% | - The Group voluntarily reclassified warranty expenses from sales and distribution expenses to cost of sales in accordance with China Accounting Standards for Business Enterprises Interpretation No. 18, and restated comparative amounts for the first half of 2024[5](index=5&type=chunk) [Business Review and Outlook](index=2&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7%E8%88%87%E5%B1%95%E6%9C%9B) [Overview](index=2&type=section&id=1.%20%E7%B6%9C%E8%BF%B0) The Group achieved quality growth in H1 2025, driven by strategic R&D investment and a focus on premium large-screen TVs, Mini LED, and AI, resulting in significant increases in revenue, gross profit, and net profit - Global TV industry shipments in H1 2025 saw a slight increase of **0.1%** year-on-year, with Mini LED TV global industry shipments growing **149.6%** to **4.8 million units**, and 75-inch and above TV global industry shipments increasing **20.5%** to **11.49 million units**[7](index=7&type=chunk) - China's TV industry retail sales achieved **10.9%** double-digit growth, stimulated by the "trade-in" policy, while domestic photovoltaic industry newly added grid-connected installed capacity grew **106.5%** to **212 GW** year-on-year[8](index=8&type=chunk) - Global shipments of AI smart glasses are projected to reach **5.5 million units** in 2025, increasing to **22 million units** by 2027, with a compound annual growth rate of approximately **100.0%**[10](index=10&type=chunk) Key Financial Indicators for H1 2025 | Metric | H1 2025 (Billion HKD) | Year-on-Year Growth | | :--- | :--- | :--- | | Revenue | 54.777 | 20.4% | | Gross Profit | 8.366 | 16.0% | | Profit After Tax | 1.048 | 60.5% | | Net Profit Attributable to Owners | 1.090 | 67.8% | | Adjusted Net Profit Attributable to Owners | 1.060 | 62.0% | - As of June 30, 2025, the net gearing ratio remained stable at **0.0%**, with cash and cash equivalents increasing **30.4%** year-on-year to **HKD 11.442 billion**[14](index=14&type=chunk) - R&D expenses increased **5.6%** year-on-year to **HKD 1.154 billion**, focusing on cutting-edge display technologies like Mini LED and Quantum Dot, and AI[19](index=19&type=chunk) - The Group launched TCL AiMe, the world's first split-type smart home companion robot, at CES 2025, and introduced several new AR/XR smart glasses, with RayNeo glasses achieving the top online sales market share during the 618 shopping festival[20](index=20&type=chunk)[21](index=21&type=chunk) - TCL officially became a top-tier global partner of the Olympics, with the TCL TV global brand index increasing **1.7%** year-on-year to **93**[22](index=22&type=chunk) [Display Business](index=7&type=section&id=2.%20%E9%A1%AF%E7%A4%BA%E6%A5%AD%E5%8B%99) The Group's display business achieved quality growth in H1 2025, with revenue increasing **10.9%** to **HKD 33.419 billion** and gross profit rising **11.4%** to **HKD 5.197 billion**, driven by optimized product structure and a successful mid-to-high-end strategy, securing TCL TV's global top two shipment ranking and Mini LED TV's global top spot - TCL TV global shipments reached **13.46 million units**, a **7.6%** year-on-year increase, with global market share rising **0.9 percentage points** to **14.2%**, maintaining a stable top two ranking globally[23](index=23&type=chunk) - The gross profit margin of the large-screen display business increased by **0.5 percentage points** year-on-year to **15.9%**[16](index=16&type=chunk) - TCL Mini LED TV global shipments surged **176.1%** year-on-year to **1.37 million units**, ranking first globally[16](index=16&type=chunk) [Large-Screen Display](index=7&type=section&id=2.1%20%E5%A4%A7%E5%90%8B%E5%AF%B8%E9%A1%AF%E7%A4%BA) Large-screen display business revenue grew **9.4%** to **HKD 28.352 billion** and gross profit increased **12.9%** to **HKD 4.514 billion**, with TCL TV global shipments reaching **13.46 million units**, up **7.6%**, securing a top two global market share, driven by rapid growth in Mini LED and large-screen products - Large-screen business revenue recorded a year-on-year increase of **9.4%** to **HKD 28.352 billion**, with gross profit growing **12.9%** to **HKD 4.514 billion**[25](index=25&type=chunk) - TCL Mini LED TV global shipment market share increased by **4.1 percentage points** year-on-year to **28.7%**, ranking first globally[25](index=25&type=chunk) [China Market](index=8&type=section&id=%E4%B8%AD%E5%9C%8B%E5%B8%82%E5%A0%B4) China market revenue grew **4.4%** to **HKD 8.72 billion**, with gross profit up **14.0%** to **HKD 1.69 billion** and gross profit margin increasing **1.7 percentage points** to **19.4%**, as TCL TV shipments rose **3.5%** and Mini LED TV shipments surged **154.2%**, securing top two retail rankings - China market revenue increased **4.4%** year-on-year to **HKD 8.72 billion**, with gross profit growing **14.0%** to **HKD 1.69 billion**, and gross profit margin improving by **1.7 percentage points** year-on-year to **19.4%**[26](index=26&type=chunk) - TCL TV shipments increased **3.5%** year-on-year, with TCL brand TV shipments growing **10.2%** year-on-year, ranking among the top two in both retail volume and value[26](index=26&type=chunk) - TCL Mini LED TV shipments increased **154.2%** year-on-year, with its share of total shipments rising **12.6 percentage points** year-on-year to **21.2%**[26](index=26&type=chunk) [International Market](index=9&type=section&id=%E5%9C%8B%E9%9A%9B%E5%B8%82%E5%A0%B4) International market TCL TV shipments grew **8.7%**, with revenue increasing **11.8%** to **HKD 19.632 billion** and gross profit rising **12.3%** to **HKD 2.824 billion**, leading to a **0.1 percentage point** increase in gross profit margin to **14.4%**, while overseas TCL Mini LED TV shipments surged **196.8%** - TCL TV international shipments increased **8.7%** year-on-year, with revenue growing **11.8%** to **HKD 19.632 billion** and gross profit rising **12.3%** to **HKD 2.824 billion**, and gross profit margin improving by **0.1 percentage points** year-on-year to **14.4%**[28](index=28&type=chunk) - TCL Mini LED TV overseas shipment volume increased **196.8%** year-on-year, with its share of total shipments rising **4.9 percentage points** year-on-year to **7.7%**[28](index=28&type=chunk) - TCL TV retail volume consistently ranked among the top three in nearly **twenty countries** globally[29](index=29&type=chunk) [North America Market](index=9&type=section&id=%E5%8C%97%E7%BE%8E%E5%B8%82%E5%A0%B4) North America market TCL TV overall shipments decreased **7.3%** year-on-year, but product structure significantly improved, with brand index up **17.8%**, 65-inch and above TV shipments growing **60.5%**, and Mini LED TV shipments surging **349.6%**, securing a stable top two retail market share in the US - North America market TCL TV overall shipments decreased **7.3%** year-on-year, but the TCL TV brand index improved by **17.8%** year-on-year[29](index=29&type=chunk) - Shipments of 65-inch and above TCL TVs increased **60.5%** year-on-year, with their share of total shipments rising **13.0 percentage points** year-on-year[29](index=29&type=chunk) - TCL Mini LED TV shipments surged **349.6%** year-on-year, with their share of total shipments rising **6.0 percentage points** year-on-year, maintaining a stable top two retail market share in the US market[31](index=31&type=chunk) [Europe Market](index=10&type=section&id=%E6%AD%90%E6%B4%B2%E5%B8%82%E5%A0%B4) Europe market TCL brand TV shipments grew **13.3%** year-on-year, with 65-inch and above TV shipments increasing **29.6%** and Mini LED TV shipments surging **91.0%**, securing top two retail rankings in France and Poland, and top three in Sweden, Spain, Greece, and Czech Republic - TCL brand TV shipments in Europe increased **13.3%** year-on-year[34](index=34&type=chunk) - Shipments of 65-inch and above TCL TVs increased **29.6%** year-on-year, and TCL Mini LED TV shipments surged **91.0%** year-on-year[34](index=34&type=chunk) - TCL TV retail volume consistently ranked among the top two in France and Poland, and among the top three in Sweden, Spain, Greece, and the Czech Republic[34](index=34&type=chunk) [Emerging Markets](index=10&type=section&id=%E6%96%B0%E8%88%88%E5%B8%82%E5%A0%B4) Emerging markets TCL TV shipments grew **17.9%** year-on-year, with 65-inch and above TV shipments increasing **45.8%**, securing top retail rankings in the Philippines, Australia, Saudi Arabia, Argentina, and Pakistan, top two in Brazil, Thailand, and Myanmar, and top three in Vietnam and South Korea - TCL TV shipments increased **17.9%** year-on-year, with 65-inch and above TCL TV shipments growing **45.8%** year-on-year[34](index=34&type=chunk) - TCL TV retail volume ranked first in the Philippines, Australia, Saudi Arabia, Argentina, and Pakistan, among the top two in Brazil, Thailand, and Myanmar, and among the top three in Vietnam and South Korea[34](index=34&type=chunk) [Small and Medium-Sized Display](index=10&type=section&id=2.2%20%E4%B8%AD%E5%B0%8F%E5%90%8B%E5%AF%B8%E9%A1%AF%E7%A4%BA) Small and medium-sized display business revenue grew **21.3%** to **HKD 4.563 billion** and gross profit increased **2.7%** to **HKD 627 million**, driven by focus on key markets, penetration of top-tier network operator channels in Europe and North America, and successful launch of popular new products like the TCL 60 series phones and TCL NXTPAPER 11 Plus tablet - Global mobile phone shipments in H1 2025 saw a slight decrease of **1.2%** year-on-year, while tablet industry shipments increased **12.4%** year-on-year[32](index=32&type=chunk) - Small and medium-sized display business revenue increased **21.3%** year-on-year to **HKD 4.563 billion**, with gross profit growing **2.7%** year-on-year to **HKD 627 million**[35](index=35&type=chunk) - Launched TCL 60 series phones featuring NXTPAPER 3.0 color e-ink eye-care display technology, and the flagship tablet TCL NXTPAPER 11 Plus, equipped with NXTPAPER 4.0 eye-care display technology and an AI toolbox for the first time[35](index=35&type=chunk) [Smart Commercial Display](index=11&type=section&id=2.3%20%E6%99%BA%E6%85%A7%E5%95%86%E9%A1%AF) Smart commercial display business revenue grew **9.4%** to **HKD 504 million**, with gross profit reaching **HKD 56 million**, driven by product structure improvement in the domestic market, where digital signage shipments ranked first, and successful expansion to key clients like Starbucks and Luckin Coffee, while overseas markets focused on education and launched the flagship office smart screen 98E60 - Domestic digital signage shipments ranked first in the industry, successfully expanding to key clients such as Starbucks, Luckin Coffee, Mixue Ice Cream & Tea, and Li Auto[36](index=36&type=chunk) - Smart commercial display business revenue increased **9.4%** year-on-year to **HKD 504 million**, with gross profit reaching **HKD 56 million**[38](index=38&type=chunk) - Launched the flagship office smart screen 98E60, featuring Future Paper display technology and integrating core technologies such as professional display, audio-video, conference systems, and AI algorithms[38](index=38&type=chunk) [Internet Business](index=12&type=section&id=3.%20%E4%BA%92%E8%81%AF%E7%B6%B2%E6%A5%AD%E5%8B%99) The Group's global internet business revenue reached **HKD 1.458 billion**, a **20.3%** year-on-year increase, with gross profit growing **21.5%** to **HKD 794 million** and gross profit margin increasing **0.5 percentage points** to **54.4%**, driven by user experience-centric TV-side AI interaction upgrades and robust overseas market expansion, achieving high profitability - Global internet business revenue reached **HKD 1.458 billion**, a **20.3%** year-on-year increase[39](index=39&type=chunk) - Gross profit increased **21.5%** year-on-year to **HKD 794 million**, with gross profit margin increasing **0.5 percentage points** year-on-year to **54.4%**[39](index=39&type=chunk) [China Market](index=12&type=section&id=3.1%20%E4%B8%AD%E5%9C%8B%E5%B8%82%E5%A0%B4) China market internet business focused on user experience, emphasizing TV-side AI technology and interaction upgrades, successfully completing the "Lingkong Desktop 3.0" major upgrade and launching ultra-high-definition services on TV terminals, with UHD content duration exceeding **30,000 hours** - Successfully completed the major upgrade of "Lingkong Desktop 3.0," achieving minimalist desktop optimization and fully leveraging the advantages of Mini LED display technology[40](index=40&type=chunk) - Ultra-high-definition services were launched on TV terminals, with UHD content duration exceeding **30,000 hours**[40](index=40&type=chunk) [International Market](index=13&type=section&id=3.2%20%E5%9C%8B%E9%9A%9B%E5%B8%82%E5%A0%B4) The international market continued to deepen strategic cooperation with internet giants like Google, Roku, and Netflix, with TCL Channel completing a comprehensive upgrade, significantly improving content distribution efficiency and achieving content localization; as of June 30, 2025, TCL Channel's cumulative user base exceeded **39.3 million**, effectively driving robust growth in the international internet business - Continuously deepened close cooperation with internet giants such as Google, Roku, and Netflix, driving continuous breakthroughs in overseas business models[42](index=42&type=chunk) - TCL Channel completed a comprehensive upgrade, significantly improving content distribution efficiency and achieving content localization in multiple countries[42](index=42&type=chunk) - As of June 30, 2025, TCL Channel's cumulative user base exceeded **39.3 million**[42](index=42&type=chunk) [Innovative Businesses](index=13&type=section&id=4.%20%E5%89%B5%E6%96%B0%E6%A5%AD%E5%8B%99) Innovative businesses maintained strong growth, with H1 2025 revenue surging **42.4%** to **HKD 19.875 billion** and gross profit increasing **25.7%** to **HKD 2.374 billion**, driven by doubled revenue and gross profit in the photovoltaic business, steady expansion of all-category marketing, significantly improved profitability in smart connectivity and smart home businesses, and breakthrough progress in AR/XR smart glasses and AI companion robots - Innovative businesses maintained strong growth, with H1 2025 revenue surging **42.4%** year-on-year to **HKD 19.875 billion** and gross profit increasing **25.7%** year-on-year to **HKD 2.374 billion**[17](index=17&type=chunk) - Photovoltaic business revenue and gross profit increased **111.3%** and **98.5%** year-on-year, respectively, to **HKD 11.136 billion** and **HKD 1.073 billion**[17](index=17&type=chunk) [Photovoltaic Business](index=13&type=section&id=4.1%20%E5%85%89%E4%BC%8F%E6%A5%AD%E5%8B%99) Photovoltaic business revenue grew **111.3%** to **HKD 11.136 billion** and gross profit increased **98.5%** to **HKD 1.073 billion**, driven by a focus on the distributed photovoltaic end-market, strengthened power market trading capabilities, deepened channel cooperation, and steady overseas business development, with products and operations launched in the European market - Photovoltaic business revenue increased **111.3%** year-on-year to **HKD 11.136 billion**, with gross profit improving **98.5%** year-on-year to **HKD 1.073 billion**[17](index=17&type=chunk)[45](index=45&type=chunk) - As of June 30, 2025, the photovoltaic business in the China market had accumulated over **290** industrial and commercial signed projects, over **2,380** dealer channels, and nearly **280,000** signed rural households[45](index=45&type=chunk) - Steadily advanced overseas business development, actively explored integrated solar-storage solutions, and achieved product and business launches in Europe[44](index=44&type=chunk) [All-Category Marketing](index=14&type=section&id=4.2%20%E5%85%A8%E5%93%81%E9%A1%9E%E7%87%9F%E9%8A%B7) All-category marketing revenue grew **1.2%** to **HKD 7.842 billion**, with air conditioners accounting for **82.2%** and refrigeration/washing products for **17.8%**, as the Group leveraged its global brand influence and channel network to expand branded distribution of smart products like air conditioners, refrigerators, and washing machines, and launched several new products - All-category marketing revenue increased **1.2%** year-on-year to **HKD 7.842 billion**[46](index=46&type=chunk) - Air conditioner revenue accounted for **82.2%**, and refrigeration/washing product revenue accounted for **17.8%**[46](index=46&type=chunk) - Launched several new products, including the TCL Big Eye AI Super Drum Washer-Dryer Set, TCL Little Blue Wing Fresh Air Conditioner, and TCL Ice Kirin Magnetic Fresh Refrigerator[46](index=46&type=chunk) [Smart Connectivity and Smart Home](index=14&type=section&id=4.3%20%E6%99%BA%E8%83%BD%E9%80%A3%E6%8E%A5%E5%8F%8A%E6%99%BA%E8%83%BD%E5%AE%B6%E5%B1%85) Smart connectivity and smart home business revenue reached **HKD 897 million**, with gross profit and gross profit margin increasing **13.2%** and **3.5 percentage points** to **HKD 211 million** and **23.6%** respectively, showing significant improvement in profitability, while AR/XR smart glasses achieved breakthrough progress, with RayNeo glasses exceeding **52%** sales market share during the 618 shopping festival, and the world's first split-type smart home companion robot, TCL AiMe, was launched - Smart connectivity and smart home business revenue reached **HKD 897 million**, with gross profit increasing **13.2%** year-on-year to **HKD 211 million**, and gross profit margin improving **3.5 percentage points** year-on-year to **23.6%**[47](index=47&type=chunk) - RayNeo glasses achieved over **52%** sales market share during the 2025 618 shopping festival, with sales **3.4 times** that of the same period last year, securing the top sales position in the XR industry across both JD.com and Tmall platforms[48](index=48&type=chunk)[50](index=50&type=chunk) - Launched TCL AiMe, the world's first split-type smart home companion robot, at CES, integrating AI, IoT control hub, and home companion robot functionalities[49](index=49&type=chunk) [Outlook](index=16&type=section&id=5.%20%E5%B1%95%E6%9C%9B) The Group will pursue a "mid-to-high-end + globalization" strategy, investing in core technologies like Mini LED and AI to build technological barriers, expand its premium product matrix, and leverage global channels, aiming to become a leading global smart terminal enterprise - Global trends towards larger screens and premiumization are expected to further emerge, with 75-inch and above, Mini LED, and other large-screen and mid-to-high-end TV products anticipated to maintain high growth[51](index=51&type=chunk) - Will continue to deepen the "mid-to-high-end + globalization" dual-driven strategy, increasing investment in core technologies to build technological barriers[51](index=51&type=chunk) - Actively seize new market opportunities brought by AI, increase AI-related R&D investment, and accelerate product development and business promotion for AR/XR smart glasses and companion robots[52](index=52&type=chunk) - Adhere to the long-term operational goal of "Net Profit Growth > Gross Profit Growth > Revenue Growth > Sales Volume Growth," striving to become a leading global smart terminal enterprise with global operations[53](index=53&type=chunk) [Management Discussion and Analysis](index=18&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) [Comparison of H1 2025 with H1 2024](index=18&type=section&id=2025%E4%B8%8A%E5%8D%8A%E5%B9%B4%E5%BA%A6%E8%88%872024%E5%B9%B4%E4%B8%8A%E5%8D%8A%E5%B9%B4%E5%BA%A6%E6%AF%94%E8%BC%83) The Group's H1 2025 financial performance was strong, with revenue up **20.4%** to **HKD 54.777 billion** and gross profit up **16.0%** to **HKD 8.366 billion**, while profit before tax and net profit attributable to owners surged **61.1%** and **67.8%** respectively, and adjusted net profit attributable to owners increased **62.0%**, indicating significant improvements in operational quality and profitability Consolidated Income Statement Comparison for H1 2025 vs H1 2024 | Metric | H1 2025 (Thousand HKD) | H1 2024 (Thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 54,777,049 | 45,493,620 | 20.4% | | Cost of Sales | (46,411,098) | (38,280,761) | 21.2% | | Gross Profit | 8,365,951 | 7,212,859 | 16.0% | | Other Income and Gains | 894,483 | 1,094,792 | -18.3% | | Selling and Distribution Expenses | (4,011,576) | (3,832,293) | 4.7% | | Administrative Expenses | (2,312,964) | (1,860,323) | 24.3% | | Research and Development Expenses | (1,154,499) | (1,092,783) | 5.6% | | Other Operating Expenses | (17,875) | (171,529) | -89.6% | | Net Impairment Loss on Financial and Contract Assets | (18,325) | (10,053) | 82.3% | | Finance Costs | (392,234) | (521,358) | -24.8% | | Profit Before Tax | 1,420,846 | 881,796 | 61.1% | | Income Tax Expense | (373,196) | (228,882) | 63.1% | | Profit for the Period | 1,047,650 | 652,914 | 60.5% | | Net Profit Attributable to Owners | 1,090,419 | 649,920 | 67.8% | | Adjusted Net Profit Attributable to Owners | 1,059,892 | 654,211 | 62.0% | [Revenue](index=19&type=section&id=%E6%94%B6%E5%85%A5) The Group's H1 2025 revenue increased **20.4%** year-on-year to **HKD 54.777 billion**, primarily driven by comprehensive growth in display, internet, and innovative businesses, with innovative businesses showing the most significant increase - The Group's revenue increased **20.4%** year-on-year from **HKD 45.494 billion** in H1 2024 to **HKD 54.777 billion** in H1 2025[55](index=55&type=chunk) Revenue by Business Segment (Six Months Ended June 30) | Business Segment | 2025 (Million HKD) | % of Total | 2024 (Million HKD) | % of Total | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Display Business | 33,419 | 61.0% | 30,135 | 66.3% | 10.9% | | Large-Screen Display | 28,352 | 51.8% | 25,914 | 57.0% | 9.4% | | Small and Medium-Sized Display | 4,563 | 8.3% | 3,761 | 8.3% | 21.3% | | Smart Commercial Display | 504 | 0.9% | 460 | 1.0% | 9.4% | | Internet Business | 1,458 | 2.7% | 1,212 | 2.7% | 20.3% | | Innovative Businesses | 19,875 | 36.3% | 13,953 | 30.6% | 42.4% | | Photovoltaic Business | 11,136 | 20.4% | 5,269 | 11.6% | 111.3% | | All-Category Marketing | 7,842 | 14.3% | 7,753 | 17.0% | 1.2% | | Smart Connectivity and Smart Home | 897 | 1.6% | 931 | 2.0% | -3.6% | | Others | 25 | 0.0% | 194 | 0.4% | -87.1% | | **Total Revenue** | **54,777** | **100.0%** | **45,494** | **100.0%** | **20.4%** | [Display Business (Revenue)](index=20&type=section&id=%E9%A1%AF%E7%A4%BA%E6%A5%AD%E5%8B%99_%E6%94%B6%E5%85%A5) Display business revenue increased **10.9%** year-on-year to **HKD 33.419 billion**, primarily driven by global market expansion, enhanced brand influence, and improved product structure, leading to comprehensive revenue growth across large-screen, small and medium-sized, and smart commercial display businesses - Display business revenue increased **10.9%** year-on-year from **HKD 30.135 billion** in H1 2024 to **HKD 33.419 billion** in H1 2025[57](index=57&type=chunk) - Large-screen display business revenue increased **9.4%** year-on-year to **HKD 28.352 billion**[57](index=57&type=chunk) - Small and medium-sized business revenue increased **21.3%** year-on-year to **HKD 4.563 billion**[57](index=57&type=chunk) - Smart commercial display business revenue increased **9.4%** year-on-year to **HKD 504 million**[57](index=57&type=chunk) [Internet Business (Revenue)](index=20&type=section&id=%E4%BA%92%E8%81%AF%E7%B6%B2%E6%A5%AD%E5%8B%99_%E6%94%B6%E5%85%A5) Internet business revenue increased **20.3%** year-on-year to **HKD 1.458 billion**, primarily due to continuous breakthroughs in overseas internet business monetization models and significant improvements in content development, product experience, and commercialization capabilities - Internet business revenue increased **20.3%** year-on-year from **HKD 1.212 billion** in H1 2024 to **HKD 1.458 billion** in H1 2025[58](index=58&type=chunk) - Primarily benefiting from continuous breakthroughs in overseas internet business monetization models and significant improvements in content development, product experience, and commercialization capabilities[58](index=58&type=chunk) [Innovative Businesses (Revenue)](index=20&type=section&id=%E5%89%B5%E6%96%B0%E6%A5%AD%E5%8B%99_%E6%94%B6%E5%85%A5) Innovative businesses revenue increased **42.4%** year-on-year to **HKD 19.875 billion**, primarily due to a **111.3%** growth in photovoltaic business revenue to **HKD 11.137 billion**, achieved through strengthened power market trading capabilities, flexible market strategy adjustments, and deepened channel cooperation - Innovative businesses revenue increased **42.4%** year-on-year from **HKD 13.953 billion** in H1 2024 to **HKD 19.875 billion** in H1 2025[59](index=59&type=chunk) - Photovoltaic business revenue increased **111.3%** to **HKD 11.137 billion**[59](index=59&type=chunk) [Gross Profit and Gross Profit Margin](index=20&type=section&id=%E6%AF%9B%E5%88%A9%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87) The Group's overall gross profit increased **16.0%** year-on-year to **HKD 8.366 billion**, primarily due to its mid-to-high-end transformation strategy and cost control, though the overall gross profit margin decreased **0.6 percentage points** year-on-year to **15.3%** due to the increased revenue contribution from the relatively lower-margin photovoltaic business - The Group's overall gross profit increased **16.0%** year-on-year from **HKD 7.213 billion** in H1 2024 to **HKD 8.366 billion** in H1 2025[60](index=60&type=chunk) - The gross profit margin for H1 2025 was **15.3%**, a **0.6 percentage point** decrease year-on-year compared to H1 2024[60](index=60&type=chunk) - The decrease in gross profit margin was primarily due to the increased revenue contribution from the relatively lower-margin photovoltaic business[60](index=60&type=chunk) [Display Business (Gross Profit Margin)](index=21&type=section&id=%E9%A1%AF%E7%A4%BA%E6%A5%AD%E5%8B%99_%E6%AF%9B%E5%88%A9%E7%8E%87) Display business gross profit margin was **15.6%**, an increase of **0.1 percentage points** year-on-year, primarily benefiting from the implementation of the mid-to-high-end strategy and improved product structure, with large-screen display business gross profit margin increasing **0.5 percentage points** year-on-year to **15.9%** - The gross profit margin for the display business in H1 2025 was **15.6%**, an increase of **0.1 percentage points** year-on-year[61](index=61&type=chunk) - The gross profit margin for the large-screen display business increased by **0.5 percentage points** year-on-year to **15.9%**[61](index=61&type=chunk) [Internet Business (Gross Profit Margin)](index=21&type=section&id=%E4%BA%92%E8%81%AF%E7%B6%B2%E6%A5%AD%E5%8B%99_%E6%AF%9B%E5%88%A9%E7%8E%87) Internet business gross profit margin was **54.4%**, an increase of **0.5 percentage points** year-on-year, primarily due to enhanced monetization capabilities driven by improved overseas internet commercialization, leading to further expansion of high-margin overseas internet revenue - The gross profit margin for the internet business in H1 2025 was **54.4%**, an increase of **0.5 percentage points** year-on-year[62](index=62&type=chunk) - Primarily benefiting from the Group's enhanced overseas internet commercialization capabilities, leading to stronger monetization[62](index=62&type=chunk) [Innovative Businesses (Gross Profit Margin)](index=21&type=section&id=%E5%89%B5%E6%96%B0%E6%A5%AD%E5%8B%99_%E6%AF%9B%E5%88%A9%E7%8E%87) Innovative businesses gross profit margin was **11.9%**, a decrease of **1.6 percentage points** year-on-year, primarily due to the increased revenue contribution from the relatively lower-margin photovoltaic business - The gross profit margin for innovative businesses in H1 2025 was **11.9%**, a decrease of **1.6 percentage points** year-on-year[63](index=63&type=chunk) - Primarily due to the increased revenue contribution from the relatively lower-margin photovoltaic business[63](index=63&type=chunk) [Other Income and Gains](index=21&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A) Other income and gains decreased **18.3%** year-on-year to **HKD 894 million**, primarily due to reduced interest income resulting from a decrease in the Group's wealth management scale - Other income and gains decreased **18.3%** year-on-year from **HKD 1.095 billion** in H1 2024 to **HKD 894 million** in H1 2025[64](index=64&type=chunk) - Primarily due to reduced interest income resulting from a decrease in the Group's wealth management scale[64](index=64&type=chunk) [Selling and Distribution Expenses](index=21&type=section&id=%E9%8A%B7%E5%94%AE%E5%8F%8A%E5%88%86%E9%8A%B7%E6%94%AF%E5%87%BA) Selling and distribution expenses increased **4.7%** year-on-year to **HKD 4.012 billion**, primarily due to the Group's strategic increase in brand marketing and product promotion investments - Selling and distribution expenses increased **4.7%** year-on-year from **HKD 3.832 billion** in H1 2024 to **HKD 4.012 billion** in H1 2025[65](index=65&type=chunk) - Primarily due to the Group's strategic increase in brand marketing and product promotion investments[65](index=65&type=chunk) [Administrative Expenses](index=21&type=section&id=%E8%A1%8C%E6%94%BF%E6%94%AF%E5%87%BA) Administrative expenses increased **24.3%** year-on-year to **HKD 2.313 billion**, primarily due to increased realized losses from the liquidation of derivative financial instruments and higher bonus provisions resulting from the Group's strong performance - Administrative expenses increased **24.3%** year-on-year from **HKD 1.860 billion** in H1 2024 to **HKD 2.313 billion** in H1 2025[66](index=66&type=chunk) - Primarily due to increased realized losses from the liquidation of derivative financial instruments in H1 2025 and higher bonus provisions resulting from the Group's strong performance in H1 2025[66](index=66&type=chunk) [Research and Development Expenses](index=22&type=section&id=%E7%A0%94%E7%99%BC%E8%B2%BB%E7%94%A8) Research and development expenses increased **5.6%** year-on-year to **HKD 1.154 billion**, primarily due to the Group's continued increased investment in high-end display technologies and AI - Research and development expenses increased **5.6%** year-on-year from **HKD 1.093 billion** in H1 2024 to **HKD 1.154 billion** in H1 2025[67](index=67&type=chunk) - Primarily due to the Group's continued increased investment in high-end display technologies and AI[67](index=67&type=chunk) [Other Operating Expenses](index=22&type=section&id=%E5%85%B6%E4%BB%96%E7%87%9F%E9%81%8B%E6%94%AF%E5%87%BA) Other operating expenses significantly decreased **89.6%** year-on-year to **HKD 17.88 million**, primarily because the Group recognized goodwill impairment in H1 2024, which did not recur in the current period - Other operating expenses significantly decreased **89.6%** year-on-year from **HKD 172 million** in H1 2024 to **HKD 17.88 million** in H1 2025[68](index=68&type=chunk) - Primarily because the Group recognized goodwill impairment in H1 2024[68](index=68&type=chunk) [Net Impairment Loss on Financial and Contract Assets](index=22&type=section&id=%E9%87%91%E8%9E%8D%E5%8F%8A%E5%90%88%E7%B4%84%E8%B3%87%E7%94%A2%E6%B8%9B%E5%80%BC%E虧%E6%90%8D%E6%B7%A8%E9%A1%8D) Net impairment loss on financial and contract assets significantly increased **82.3%** year-on-year to **HKD 18.33 million**, primarily due to an increase in bad debt provisions for trade receivables - Net impairment loss on financial and contract assets significantly increased **82.3%** year-on-year from **HKD 10.05 million** in H1 2024 to **HKD 18.33 million** in H1 2025[69](index=69&type=chunk) - Primarily due to an increase in bad debt provisions for trade receivables[69](index=69&type=chunk) [Finance Costs](index=22&type=section&id=%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) Finance costs decreased **24.8%** year-on-year to **HKD 392 million**, primarily due to reduced interest expenses from bill discounting and factoring trade receivables during the reporting period - Finance costs decreased **24.8%** year-on-year from **HKD 521 million** in H1 2024 to **HKD 392 million** in H1 2025[70](index=70&type=chunk) - Primarily due to reduced interest expenses from bill discounting and factoring trade receivables during the reporting period[70](index=70&type=chunk) [Share of Profits and Losses - Joint Ventures and Associates](index=22&type=section&id=%E5%88%86%E4%BD%94%E6%90%8D%E7%9B%8A%EF%BC%8D%E5%90%88%E8%B3%87%E5%85%AC%E5%8F%B8%E5%8F%8A%E8%81%AF%E7%96%B6%E5%85%AC%E5%8F%B8) Share of profits increased **8.6%** year-on-year to **HKD 67.89 million**, primarily due to improved performance and increased profitability of the Group's associate companies - Share of profits increased **8.6%** year-on-year from **HKD 62.48 million** in H1 2024 to **HKD 67.89 million** in H1 2025[71](index=71&type=chunk) - Primarily due to improved performance and increased profitability of the Group's associate companies[71](index=71&type=chunk) [Profit Before Tax](index=22&type=section&id=%E9%99%A4%E7%A8%85%E5%89%8D%E5%88%A9%E6%BD%A4) Profit before tax increased **61.1%** year-on-year to **HKD 1.421 billion**, primarily due to significant improvements in operational quality across multiple business lines, including display, internet, and innovative businesses, benefiting from economies of scale and efficiency enhancements, which effectively lowered the overall expense ratio - Profit before tax increased **61.1%** year-on-year from **HKD 882 million** in H1 2024 to **HKD 1.421 billion** in H1 2025[72](index=72&type=chunk) - Primarily due to significant improvements in operational quality across multiple business lines, including display, internet, and innovative businesses, during the reporting period, benefiting from economies of scale and efficiency enhancements, which effectively lowered the overall expense ratio[72](index=72&type=chunk) [Income Tax Expense](index=22&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85) Income tax expense increased **63.1%** year-on-year to **HKD 373 million**, primarily due to increased profit before tax for certain subsidiaries during the reporting period, with the Group's effective tax rate increasing **0.3 percentage points** year-on-year from **26.0%** in H1 2024 to **26.3%** in H1 2025 - Income tax expense increased **63.1%** year-on-year from **HKD 229 million** in H1 2024 to **HKD 373 million** in H1 2025[73](index=73&type=chunk) - The Group's effective tax rate increased **0.3 percentage points** year-on-year from **26.0%** in H1 2024 to **26.3%** in H1 2025[73](index=73&type=chunk) [Profit for the Period and Net Profit Attributable to Owners](index=23&type=section&id=%E6%9C%AC%E6%9C%9F%E5%88%A9%E6%BD%A4%E5%8F%8A%E6%AD%B8%E6%AF%8D%E6%B7%A8%E5%88%A9%E6%BD%A4) Profit for the period increased **60.5%** year-on-year to **HKD 1.048 billion**, and net profit attributable to owners grew **67.8%** year-on-year to **HKD 1.090 billion**, primarily due to the Group's continued increased R&D investment in high-end display technologies and AI, active global supply chain and channel deployment, and ongoing optimization of cost structure, leading to improved operational quality and enhanced profitability - Profit for the period increased **60.5%** year-on-year from **HKD 653 million** in H1 2024 to **HKD 1.048 billion** in H1 2025[74](index=74&type=chunk) - Net profit attributable to owners increased **67.8%** year-on-year from **HKD 650 million** in H1 2024 to **HKD 1.090 billion** in H1 2025[74](index=74&type=chunk) - The primary reasons for the increase are the Group's continued increased R&D investment in high-end display technologies and AI, active global supply chain and channel deployment, and ongoing optimization of cost structure, leading to improved operational quality and enhanced profitability[74](index=74&type=chunk) [Non-HKFRS Measures: Adjusted Net Profit Attributable to Owners](index=23&type=section&id=%E9%9D%9E%E9%A6%99%E6%B8%AF%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A%E6%BA%96%E5%89%87%E8%A8%88%E9%87%8F%EF%BC%9A%E7%B6%93%E8%AA%BF%E6%95%B4%E6%AD%B8%E6%AF%8D%E6%B7%A8%E5%88%A9%E6%BD%A4) Adjusted net profit attributable to owners increased **62.0%** year-on-year to **HKD 1.060 billion**, primarily due to significant improvements in operating performance across multiple business lines, including display, internet, and innovative businesses, benefiting from economies of scale and efficiency enhancements, which effectively lowered the overall expense ratio and continuously improved operational efficiency; this non-HKFRS measure provides supplementary data for investors to assess the Group's core business performance - Adjusted net profit attributable to owners increased **62.0%** year-on-year from **HKD 654 million** in H1 2024 to **HKD 1.060 billion** in H1 2025[75](index=75&type=chunk) Reconciliation of Adjusted Net Profit Attributable to Owners to Net Profit Attributable to Owners | Metric | H1 2025 (Thousand HKD) | H1 2024 (Thousand HKD) | | :--- | :--- | :--- | | Net profit attributable to owners, as presented | 1,090,419 | 649,920 | | Net (gains) / losses from investment companies | (5,181) | 253 | | Net (gains) / losses from disposal and liquidation of subsidiaries | (745) | – | | Net (gains) / losses related to call and put options | (18,425) | 449 | | Net (gains) / losses from disposal of non-current assets | (8,643) | 4,764 | | Related income tax impact | 2,467 | (1,175) | | **Adjusted Net Profit Attributable to Owners** | **1,059,892** | **654,211** | [Financial Review](index=25&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) [Major Investments, Acquisitions and Disposals](index=25&type=section&id=%E4%B8%BB%E8%A6%81%E6%8A%95%E8%B3%87%E3%80%81%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE) As of June 30, 2025, the Group held no major investments and made no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the six months ended on that date - The Group held no major investments as of **June 30, 2025**[80](index=80&type=chunk) - There were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the six months ended **June 30, 2025**[80](index=80&type=chunk) [Future Plans for Material Investments or Capital Assets](index=25&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E6%88%96%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2%E7%9A%84%E6%9C%AA%E4%BE%86%E8%A8%88%E5%8A%83) Except as disclosed in this announcement, the Group currently has no specific plans for material investments or capital assets - Except as disclosed in this announcement, the Group currently has no specific plans for material investments or capital assets[81](index=81&type=chunk) [Liquidity and Financial Resources](index=25&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) The Group maintains ample liquidity, with cash and cash equivalents increasing **30.4%** year-on-year to **HKD 11.442 billion** as of June 30, 2025, and a stable net gearing ratio of **0.0%**, indicating a robust financial structure and sufficient liquidity - As of **June 30, 2025**, the Group's cash and cash equivalents totaled approximately **HKD 11.442 billion**, an increase of **30.4%** compared to **December 31, 2024**[82](index=82&type=chunk) - As of **June 30, 2025**, the Group's gearing ratio was **0.0%**[83](index=83&type=chunk) [Pledged Assets](index=26&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, several of the Group's assets, including restricted cash and pledged deposits, debt instrument investments, bills receivable, inventories, other receivables, and trade receivables, were pledged as collateral for performance and quality assurance balances, financial assets, and bank facilities Pledged Assets as of June 30, 2025 | Pledged Assets | June 30, 2025 (HKD) | December 31, 2024 (HKD) | | :--- | :--- | :--- | | Restricted cash and pledged deposits | 543,179,000 | 669,910,000 | | Debt instruments at amortized cost | 161,821,000 | 107,637,000 | | Bills receivable | 116,124,000 | 192,282,000 | | Inventories | 99,577,000 | 400,087,000 | | Other receivables | 57,121,000 | 4,428,000 | | Trade receivables | 548,000 | 無 | [Capital Commitments and Contingent Liabilities](index=26&type=section&id=%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94%E5%8F%8A%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group had contracted but unprovided capital commitments of approximately **HKD 533 million**, with no authorized but uncontracted capital commitments; additionally, TCL SEMP Eletroeletronicos is involved in a Brazilian tax assessment dispute for which the Group has made no provision based on legal advice - As of **June 30, 2025**, the Group had contracted but unprovided capital commitments of approximately **HKD 533 million**[85](index=85&type=chunk) - TCL SEMP Eletroeletronicos is involved in a Brazilian tax assessment dispute, for which the Group has made no provision based on legal counsel's opinion that an effective defense can be mounted[86](index=86&type=chunk) [Pending Litigation](index=26&type=section&id=%E6%9C%AA%E6%B1%BA%E8%A8%B4%E8%A8%9F) Aside from the aforementioned Brazilian tax dispute, the Group was not involved in any other material litigation as of June 30, 2025 - Aside from the aforementioned, the Group was not involved in any material litigation as of **June 30, 2025**[87](index=87&type=chunk) [Foreign Currency Exchange Risk](index=26&type=section&id=%E5%A4%96%E5%B9%A3%E5%8C%AF%E5%85%8C%E9%A2%A8%E9%9A%AA) The Group effectively monitors and manages foreign currency exchange risk through a centralized foreign exchange management strategy, emphasizing functional currency transactions for natural hedging, and avoiding high-risk derivative instrument transactions - The Group adopts a centralized foreign exchange management strategy to monitor overall foreign exchange risk, offset positions of various associated companies, and conduct centralized hedging transactions with banks[88](index=88&type=chunk) - Emphasizes the importance of conducting trade, investments, and borrowings in functional currencies to achieve natural hedging effects[88](index=88&type=chunk) - For sound financial management purposes, the Group does not engage in any high-risk derivative instrument transactions or leveraged foreign exchange contracts[88](index=88&type=chunk) [Employees and Remuneration Policy](index=27&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E9%85%AC%E9%87%91%E6%94%BF%E7%AD%96) As of June 30, 2025, the Group had **32,603** employees with total employee costs of approximately **HKD 3.342 billion**, offering competitive benefits, performance bonuses, and continuous training, and granted **91,497,900** award shares under the 2023 Share Award Scheme on April 9, 2025 - As of **June 30, 2025**, the Group had **32,603** employees, with total employee costs of approximately **HKD 3.342 billion**[89](index=89&type=chunk) - The Group provides competitive benefits, performance bonuses based on Group performance and individual employee contributions, and continuous training and development programs[89](index=89&type=chunk) - On **April 9, 2025**, **91,497,900** award shares were granted under the 2023 Share Award Scheme[90](index=90&type=chunk) [Financial Information](index=28&type=section&id=%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=28&type=section&id=%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) Profit for the period increased **60.5%** year-on-year to **HKD 1.048 billion**, and profit attributable to owners of the parent increased **67.8%** to **HKD 1.090 billion**, with total comprehensive income significantly growing to **HKD 1.101 billion**, basic earnings per share at **45.14 HK cents**, and diluted earnings per share at **43.04 HK cents** Consolidated Statement of Profit or Loss and Other Comprehensive Income (Six Months Ended June 30) | Metric | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Revenue | 54,777,049 | 45,493,620 | | Gross Profit | 8,365,951 | 7,212,859 | | Profit Before Tax | 1,420,846 | 881,796 | | Profit for the Period | 1,047,650 | 652,914 | | Profit Attributable to Owners of the Parent | 1,090,419 | 649,920 | | Total Comprehensive Income for the Period | 1,100,547 | 313,878 | | Basic Earnings Per Share Attributable to Ordinary Equity Holders of the Parent | 45.14港仙 | 26.69港仙 | | Diluted Earnings Per Share Attributable to Ordinary Equity Holders of the Parent | 43.04港仙 | 25.62港仙 | [Consolidated Statement of Financial Position](index=31&type=section&id=%E7%B6%9C%E5%90%88%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 were **HKD 82.679 billion**, with net assets of **HKD 17.726 billion**; total current assets amounted to **HKD 69.442 billion**, including **HKD 20.013 billion** in inventories and **HKD 11.442 billion** in cash and cash equivalents, while total current liabilities were **HKD 63.337 billion**, with trade payables at **HKD 31.075 billion** Consolidated Statement of Financial Position (As of June 30) | Metric | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Total Non-Current Assets | 13,236,644 | 11,833,477 | | Total Current Assets | 69,442,484 | 64,533,927 | | Inventories | 20,012,987 | 15,288,555 | | Trade Receivables | 21,826,741 | 22,332,884 | | Cash and Cash Equivalents | 11,441,935 | 8,771,691 | | Total Current Liabilities | 63,336,670 | 57,128,936 | | Trade Payables | 31,075,322 | 26,646,451 | | Net Assets | 17,725,820 | 17,676,418 | [Notes](index=33&type=section&id=%E9%99%84%E8%A8%BB) This section provides detailed notes to the interim condensed consolidated financial statements, covering basis of preparation, changes in accounting policies, new HKFRSs not yet effective, operating segment information, revenue, finance costs, profit before tax, income tax, dividends, earnings per share, goodwill, trade receivables, trade payables, interest-bearing bank and other borrowings, share capital, and restatement of comparative amounts [1. Basis of Preparation](index=33&type=section&id=1.%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) These unaudited interim condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 and Appendix D2 of the Listing Rules, using the historical cost convention and presented in Hong Kong dollars - These unaudited interim condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard **34** and the disclosure requirements of Appendix **D2** of the Listing Rules issued by the Hong Kong Institute of Certified Public Accountants[98](index=98&type=chunk) - Prepared under the historical cost convention, except for derivative financial instruments and certain financial assets and equity investments which are measured at fair value[98](index=98&type=chunk) - Presented in Hong Kong dollars, with all values rounded to the nearest thousand[98](index=98&type=chunk) [2. Changes in Accounting Policies and Disclosures](index=33&type=section&id=2.%20%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96%E5%8F%8A%E6%8A%AB%E9%9C%B2%E7%9A%84%E8%AE%8A%E5%8B%95) The financial information for the current period first adopted HKAS 21 amendment "Lack of Exchangeability," which clarifies currency exchange assessment and spot exchange rate estimation methods, but had no significant impact on the interim condensed consolidated financial information - First adopted the HKAS **21** amendment "Lack of Exchangeability"[99](index=99&type=chunk)[100](index=100&type=chunk) - These amendments will not have any significant impact on the interim condensed consolidated financial information[100](index=100&type=chunk) [3. New and Revised HKFRSs Issued But Not Yet Effective](index=34&type=section&id=3.%20%E5%B7%B2%E9%A0%92%E5%B8%83%E4%BD%86%E5%B0%9A%E6%9C%AA%E7%94%9F%E6%95%88%E7%9A%84%E9%A6%99%E6%B8%AF%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A%E6%BA%96%E5%88%99%E6%9C%83%E8%A8%88%E6%BA%96%E5%88%99) The Group has not yet applied several new and revised HKFRSs issued but not yet effective, including HKFRS 18, 19, and amendments to HKFRS 9 and 7, and is currently assessing the impact of their initial application - The Group has not applied the following new and revised HKFRSs issued but not yet effective in these unaudited interim condensed financial statements[101](index=101&type=chunk) - Including HKFRS **18**, HKFRS **19**, and amendments to HKFRS **9** and HKFRS **7**[102](index=102&type=chunk) - The Group is assessing the impact of the initial application of these new and revised HKFRSs[102](index=102&type=chunk) [4. Operating Segment Information](index=34&type=section&id=4.%20%E7%B6%93%E7%87%9F%E5%88%86%E9%A1%9E%E8%B3%87%E6%96%99) The Group is organized into six reportable operating segments based on regional TV categories and other product types: TCL TV (China Market and International Market), Internet Business, Smart Mobile, Connected Devices and Services, All-Category Marketing, Photovoltaic Business, and Smart Commercial Display, Smart Home and Other Businesses; segment performance is assessed based on each segment's revenue and gross profit - The Group is organized into six reportable operating segments: TCL TV (China Market and International Market), Internet Business, Smart Mobile, Connected Devices and Services, All-Category Marketing, Photovoltaic Business, and Smart Commercial Display, Smart Home and Other Businesses[105](index=105&type=chunk) - Segment performance is assessed based on each segment's revenue and gross profit[103](index=103&type=chunk) Operating Segment Revenue and Gross Profit (Six Months Ended June 30) | Segment | 2025 Revenue (Thousand HKD) | 2024 Revenue (Thousand HKD) | 2025 Gross Profit (Thousand HKD) | 2024 Gross Profit (Thousand HKD) | | :--- | :--- | :--- | :--- | :--- | | TCL TV - China Market | 8,720,454 | 8,353,344 | 1,689,451 | 1,482,275 | | TCL TV - International Market | 19,631,732 | 17,560,766 | 2,824,399 | 2,515,916 | | Internet Business | 1,457,871 | 1,212,056 | 793,226 | 653,093 | | Smart Mobile, Connected Devices and Services | 5,170,279 | 4,410,323 | 790,447 | 756,258 | | All-Category Marketing | 7,842,078 | 7,752,507 | 1,089,555 | 1,161,976 | | Photovoltaic Business | 11,136,594 | 5,269,368 | 1,073,390 | 540,859 | | Smart Commercial Display, Smart Home and Other Businesses | 818,041 | 935,256 | 105,483 | 102,482 | | **Consolidated** | **54,777,049** | **45,493,620** | **8,365,951** | **7,212,859** | [5. Revenue](index=36&type=section&id=5.%20%E6%94%B6%E5%85%A5_%E9%99%84%E8%A8%BB) This note provides a detailed analysis of revenue from contracts with customers, categorized by type of goods or services, geographical market, and timing of revenue recognition, with sales of goods being the primary revenue source, Mainland China as the largest geographical market, and most revenue recognized at a point in time Disaggregated Revenue Information from Contracts with Customers (Six Months Ended June 30, 2025) | Category | TV and Others (Thousand HKD) | Internet Business (Thousand HKD) | Total (Thousand HKD) | | :--- | :--- | :--- | :--- | | **Type of goods or services** | | | | | Sales of goods | 52,664,558 | 92,953 | 52,757,511 | | Construction services | 654,620 | – | 654,620 | | Video-on-demand services | – | 301,099 | 301,099 | | Advertising, vertical applications and other new businesses | – | 1,063,819 | 1,063,819 | | **Total revenue from contracts with customers** | **53,319,178** | **1,457,871** | **54,777,049** | | **Geographical markets** | | | | | Mainland China | 24,171,944 | 957,223 | 25,129,167 | | Europe | 6,691,562 | 77,395 | 6,768,957 | | North America | 8,459,101 | 211,355 | 8,670,456 | | Emerging markets | 13,996,571 | 211,898 | 14,208,469 | | **Total revenue from contracts with customers** | **53,319,178** | **1,457,871** | **54,777,049** | | **Timing of revenue recognition** | | | | | Transfer of goods at a point in time | 52,664,558 | 92,953 | 52,757,511 | | Services transferred over time | 654,620 | 301,099 | 955,719 | | Services transferred at a point in time | – | 1,063,819 | 1,063,819 | | **Total revenue from contracts with customers** | **53,319,178** | **1,457,871** | **54,777,049** | [6. Finance Costs](index=38&type=section&id=6.%20%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC_%E9%99%84%E8%A8%BB) This note details the components of finance costs, primarily comprising interest on bank/factoring loans and bill discounting, totaling **HKD 392 million**, a decrease from the same period last year Finance Costs (Six Months Ended June 30) | Metric | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Interest on bank/factoring loans and bill discounting | 378,176 | 497,732 | | Interest on deposits and loans from companies controlled by TCL Industries Holdings | 3,861 | 15,187 | | Interest on deposits from associate companies of TCL Industries Holdings | 72 | – | | Interest expense on lease liabilities | 10,125 | 8,439 | | **Total finance costs for the period** | **392,234** | **521,358** | [7. Profit Before Tax](index=38&type=section&id=7.%20%E9%99%A4%E7%A8%85%E5%89%8D%E5%88%A9%E6%BD%A4_%E9%99%84%E8%A8%BB) This note details expenses deducted from profit before tax, including depreciation of property, plant and equipment, amortization of other intangible assets, and share-based employee benefits, notably with no goodwill impairment recognized in H1 2025, compared to **HKD 126 million** in H1 2024 Items Deducted from Profit Before Tax (Six Months Ended June 30) | Metric | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 203,617 | 188,058 | | Depreciation of investment properties | 5,942 | 7,450 | | Depreciation of right-of-use assets | 93,278 | 89,743 | | Impairment of goodwill | – | 126,040 | | Amortisation of other intangible assets | 276,047 | 241,031 | | Share-based employee benefits under TCL Share Award Scheme | 101,389 | 44,645 | [8. Income Tax Expense](index=39&type=section&id=8.%20%E6%89%80%E5%BE%97%E7%A8%85_%E9%99%84%E8%A8%BB) This note provides a detailed analysis of income tax expense, including current tax expense for Hong Kong and other regions, under-provision in prior periods, and deferred tax, with total tax expense at **HKD 373 million** and an effective tax rate of **26.3%** Income Tax Expense (Six Months Ended June 30) | Metric | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Current period – Hong Kong current tax expense | 145,912 | 2,640 | | Current period – Other regions current tax expense | 315,478 | 218,749 | | Under-provision in prior periods | 58,633 | 14,429 | | Deferred | (146,827) | (6,936) | | **Total tax expense for the period** | **373,196** | **228,882** | - Hong Kong profits tax is provided at a rate of **16.5%**, while other regions are calculated at local tax rates[112](index=112&type=chunk) [9. Dividends](index=39&type=section&id=9.%20%E8%82%A1%E6%81%AF_%E9%99%84%E8%A8%BB) The Board of Directors has resolved not to declare any dividends for the six months ended June 30, 2025, consistent with the same period in 2024 - The Board of Directors has resolved not to declare any dividends for the six months ended **June 30, 2025** (June 30, 2024: nil)[114](index=114&type=chunk) [10. Earnings Per Share Attributable to Ordinary Equity Holders of the Parent](index=40&type=section&id=10.%20%E6%AF%8D%E5%85%AC%E5%8F%B8%E6%99%AE%E9%80%9A%E8%82%A1%E8%82%A1%E6%9D%B1%E6%87%89%E4%BD%94%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) This note details the calculation of basic and diluted earnings per share; in H1 2025, profit attributable to ordinary equity holders of the parent was **HKD 1.090 billion**, with basic earnings per share at **45.14 HK cents** and diluted earnings per share at **43.04 HK cents** Earnings Per Share Calculation (Six Months Ended June 30) | Metric | 2025 (Thousand HKD/Number of Shares) | 2024 (Thousand HKD/Number of Shares) | | :--- | :--- | :--- | | Profit attributable to ordinary equity holders of the parent used for calculating basic and diluted earnings per share | 1,090,419 | 649,920 | | Weighted average number of ordinary shares outstanding during the period for calculating basic earnings per share, less shares held for TCL Share Award Scheme | 2,415,542,163 | 2,434,812,243 | | Dilutive effect - weighted average number of award shares | 117,713,978 | 102,298,251 | | Weighted average number of ordinary shares outstanding during the period for calculating diluted earnings per share | 2,533,256,141 | 2,537,110,494 | [11. Goodwill](index=41&type=section&id=11.%20%E5%95%86%E8%AD%BD) As of June 30, 2025, the net carrying amount of goodwill was **HKD 3.167 billion**, an increase from the beginning of the year, primarily due to the recognition of provisional goodwill of **HKD 168 million** from subsidiary acquisitions during the period Movement in Goodwill (As of June 30, 2025) | Metric | Thousand HKD | | :--- | :--- | | Net carrying amount as at January 1, 2025 | 2,947,380 | | Acquisition of subsidiaries | 168,103 | | Exchange adjustments | 51,563 | | Net carrying amount as at June 30, 2025 (unaudited) | 3,167,046 | - Provisional goodwill of **HKD 168 million** was recognized, as the fair value assessment of identifiable assets and liabilities of subsidiaries acquired during the period has not yet been finalized[117](index=117&type=chunk) [12. Trade Receivables](index=41&type=section&id=12.%20%E6%87%89%E6%94%B6%E8%B2%BF%E6%98%93%E8%B3%87%E6%AC%BE) As of June 30, 2025, net trade receivables amounted to **HKD 21.827 billion**, a slight decrease from year-end 2024, with credit terms typically ranging from **30 to 180 days**, some receivables held as collateral, and impairment provisions increasing to **HKD 288 million** Ageing Analysis of Trade Receivables (By Invoice Date) | Ageing | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Current to 90 days | 15,642,677 | 16,595,138 | | 91 to 180 days | 2,690,791 | 2,857,168 | | 181 to 365 days | 2,096,588 | 2,059,204 | | Over 365 days | 1,684,448 | 1,088,325 | | **Total** | **22,114,504** | **22,599,835** | | Impairment allowance | (287,763) | (266,951) | | **Net** | **21,826,741** | **22,332,884** | - Most of the Group's sales in Mainland China are settled by cash on delivery or bank-guaranteed commercial bills, with credit terms of **30 to 90 days**; for overseas sales, settlement is generally required using letters of credit with terms of **90 to 180 days**[118](index=118&type=chunk) - Approximately **HKD 548,000** of trade receivables have been pledged as collateral for the Group's bank loans[119](index=119&type=chunk) [13. Trade Payables](index=42&type=section&id=13.%20%E6%87%89%E4%BB%98%E8%B2%BF%E6%98%93%E8%B3%87%E6%AC%BE) As of June 30, 2025, total trade payables amounted to **HKD 31.075 billion**, an increase from year-end 2024; trade payables are interest-free and typically settled within credit terms ranging from **30 to 120 days** Ageing Analysis of Trade Payables (By Invoice Date) | Ageing | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Current to 90 days | 25,007,522 | 21,779,822 | | 91 to 180 days | 4,917,774 | 3,852,823 | | 181 to 365 days | 932,785 | 860,845 | | Over 365 days | 217,241 | 152,961 | | **Total** | **31,075,322** | **26,646,451** | - Trade payables are interest-free and typically settled within credit terms ranging from **30 to 120 days**[121](index=121&type=chunk) [14. Interest-Bearing Bank and Other Borrowings](index=43&type=section&id=14.%20%E8%A8%88%E6%81%AF%E9%8A%80%E8%A1%8C%E8%B2%B8%E6%AC%BE%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B2%B8%E6%AC%BE) As of June 30, 2025, total interest-bearing bank and other borrowings amounted to **HKD 5.805 billion**, with most being current and unsecured loans; TCL Industries Holdings provided guarantees for certain of the Group's bank loans totaling **HKD 2.915 billion** Interest-Bearing Bank and Other Borrowings (As of June 30) | Category | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | **Current** | | | | Bank loans – unsecured | 5,350,612 | 3,755,295 | | Bank loans – secured | 209,472 | 400,318 | | Bank advances as consideration for factored trade receivables | 2,612 | 11,927 | | Loans from a company controlled by TCL Industries Holdings | 20,089 | 4,859 | | **Total Current** | **5,582,785** | **4,172,399** | | **Non-current** | | | | Bank loans – unsecured | 218,771 | 434,423 | | Bank loans – secured | 3,168 | 3,237 | | **Total Non-Current** | **221,939** | **437,660** | | **Total** | **5,804,724** | **4,610,059** | - TCL Industries Holdings has separately guaranteed certain of the Group's bank loans, with a guaranteed amount of **HKD 2.915 billion**[124](index=124&type=chunk) - Certain of the Group's bank loans are secured by debt instruments measured at amortized cost, inventories, future receivables, and trade receivables[124](index=124&type=chunk) [15. Share Capital](index=44&type=section&id=15.%20%E8%82%A1%E6%9C%AC) As of June 30, 2025, the Company's issued and fully paid share capital was **HKD 2.521 billion**, consistent with December 31, 2024 Share Capital (As of June 30) | Metric | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | 3,000,000,000 shares of HKD 1.00 each (authorized) | 3,000,000 | 3,000,000 | | 2,520,935,155 shares of HKD 1.00 each (issued and fully paid) | 2,520,935 | 2,520,935 | [16. Comparative Amounts](index=44&type=section&id=16.%20%E6%AF%94%E8%BC%83%E9%87%91%E9%A1%8D) Certain comparative amounts have been reclassified to conform with the current period's presentation and disclosure - Certain comparative amounts have been reclassified to conform with the current period's presentation and disclosure[124](index=124&type=chunk) [Purchase, Sale or Redemption of Shares](index=45&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E8%82%A1%E4%BB%BD) During the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, including treasury shares - During the six months ended **June 30, 2025**, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities (including treasury shares)[125](index=125&type=chunk) [Interim Dividend](index=45&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board of Directors has resolved not to declare any dividends for the six months ended June 30, 2025, consistent with the same period in 2024 - The Board of Directors has resolved not to declare any dividends for the six months ended **June 30, 2025** (June 30, 2024: nil)[126](index=126&type=chunk) [Corporate Governance](index=45&type=section&id=%E4%BC%81%E6%A5%AD%E6%B2%BB%E7%90%86) The Company has established and will continuously optimize its risk management and internal control systems, with management regularly reporting corporate governance status to the Board and Audit Committee - The Company has established and will continuously optimize its risk management and internal control systems, with management regularly reporting corporate governance status to the Board and Audit Committee[127](index=127&type=chunk) - The Company has complied with the code provisions of the Corporate Governance Code during the six months ended **June 30, 2025**[128](index=128&type=chunk) - The Audit Committee, together with the Company's management, has reviewed the Group's unaudited interim condensed consolidated financial statements for the six months ended **June 30, 2025**[129](index=129&type=chunk) [Standa

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) The Group's unaudited interim results for the six months ended June 30, 2025, show a decline in revenue, profit, and basic earnings per share [Key Financial Indicators](index=1&type=section&id=Key%20Financial%20Indicators) For the six months ended June 30, 2025, Huzhou Gas Co., Ltd. and its subsidiaries reported year-on-year decreases in revenue, profit, and basic earnings per share Key Financial Indicators (RMB Million) | Indicator | For the Six Months Ended June 30, 2025 (RMB Million) | For the Same Period in 2024 (RMB Million) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,090.4 | 1,192.0 | -8.52 | | Gross Profit | 139.0 | 151.3 | -8.13 | | Profit Attributable to Owners of the Group | 52.5 | 58.6 | -10.41 | | Basic Earnings Per Share (RMB) | 0.26 | 0.29 | -10.34 | [Interim Condensed Consolidated Financial Statements](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Statements) This section presents the Group's interim condensed consolidated financial statements, including the income statement, statement of comprehensive income, and statement of financial position [Interim Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, the Group's revenue decreased by 8.52% to RMB 1,090,375 thousand, with profit for the period also declining to RMB 82,360 thousand Interim Condensed Consolidated Statement of Profit or Loss (RMB Thousand) | Indicator | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Revenue | 1,090,375 | 1,192,008 | | Cost of Sales | (951,339) | (1,040,720) | | Gross Profit | 139,036 | 151,288 | | Other Income and Gains | 11,663 | 14,017 | | Selling and Distribution Expenses | (17,104) | (15,748) | | Administrative Expenses | (21,388) | (23,216) | | Impairment Loss on Financial Assets | (304) | (2,849) | | Other Expenses | (5,618) | (6,052) | | Finance Costs | (1,063) | (1,596) | | Share of Profit and Loss of a Joint Venture | 199 | 50 | | Profit Before Tax | 105,421 | 115,894 | | Income Tax Expense | (23,061) | (27,172) | | Profit for the Period | 82,360 | 88,722 | | Profit Attributable to Owners of the Parent | 52,467 | 58,562 | | Non-controlling Interests | 29,893 | 30,160 | | Basic Earnings Per Share (RMB) | 0.26 | 0.29 | [Interim Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group's total comprehensive income for the period decreased to RMB 82,354 thousand, primarily due to net other comprehensive loss Interim Condensed Consolidated Statement of Comprehensive Income (RMB Thousand) | Indicator | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Profit for the Period | 82,360 | 88,722 | | Net Other Comprehensive Income | (6) | 25 | | Total Comprehensive Income for the Period | 82,354 | 88,747 | | Total Comprehensive Income Attributable to Owners of the Parent | 52,461 | 58,587 | | Non-controlling Interests | 29,893 | 30,160 | [Interim Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets less current liabilities were RMB 1,598,078 thousand, with net assets of RMB 1,306,551 thousand, reflecting changes in asset and liability components Interim Condensed Consolidated Statement of Financial Position (RMB Thousand) | Indicator | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Total Non-current Assets | 1,284,459 | 1,241,907 | | Total Current Assets | 965,114 | 967,988 | | Total Current Liabilities | 651,495 | 607,257 | | Net Current Assets | 313,619 | 360,731 | | Total Assets Less Current Liabilities | 1,598,078 | 1,602,638 | | Total Non-current Liabilities | 291,527 | 267,421 | | Net Assets | 1,306,551 | 1,335,217 | | Total Equity | 1,306,551 | 1,335,217 | [Notes to the Interim Condensed Consolidated Financial Information](index=6&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information) This section provides detailed notes to the interim condensed consolidated financial information, covering company details, accounting policies, segment information, and various financial statement items [Company Information](index=6&type=section&id=Company%20Information) Huzhou Gas Co., Ltd. is a China-incorporated company listed on the HKEX main board, primarily engaged in gas sales, construction services, and other energy-related activities in Huzhou City - The Company was incorporated in China and listed on the Main Board of the Hong Kong Stock Exchange since July 13, 2022[10](index=10&type=chunk)[11](index=11&type=chunk) - The Group's principal activities include the sale of piped natural gas and liquefied natural gas, provision of construction and installation services, and sale of household gas appliances, energy, distributed photovoltaic power, and property leasing[15](index=15&type=chunk) [Basis of Preparation and Changes in Accounting Policies](index=6&type=section&id=Basis%20of%20Preparation%20and%20Changes%20in%20Accounting%20Policies) The interim condensed consolidated financial information is prepared in accordance with IAS 34, with no material impact from newly adopted IFRS amendments due to currency convertibility - The interim condensed consolidated financial information is prepared in accordance with International Accounting Standard 34 and should be read in conjunction with the 2024 annual consolidated financial statements[12](index=12&type=chunk) - Newly adopted revised IFRS accounting standards have no impact on the interim condensed consolidated financial information due to the convertibility of the Group's transaction and functional currencies[13](index=13&type=chunk)[14](index=14&type=chunk) [Operating Segment Information](index=7&type=section&id=Operating%20Segment%20Information) The Group operates as a single reportable segment encompassing gas sales, construction, and other activities, with all revenue generated from mainland China and no significant seasonality risk - The Group has only one reportable operating segment, covering gas sales, construction and installation services, and other activities, thus no further segment analysis is presented[16](index=16&type=chunk) - All revenue is derived from mainland China, and management assesses that the business does not face "highly seasonal" risks, despite typically higher gas consumption for heating in winter[17](index=17&type=chunk)[18](index=18&type=chunk)[19](index=19&type=chunk) [Revenue Analysis](index=8&type=section&id=Revenue%20Analysis) For the six months ended June 30, 2025, the Group's total revenue decreased by 8.52% to RMB 1,090,375 thousand, primarily from gas and energy sales and construction services, with piped natural gas remaining the largest but declining source Revenue Analysis (RMB Thousand) | Revenue Source | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Sales of Gas, Energy and Other Goods | 996,977 | 1,087,845 | | Provision of Construction and Installation Services | 80,794 | 95,727 | | Distributed Photovoltaic Power | 10,512 | 6,022 | | Others | 3,690 | 4,504 | | Total Rental Income | 103 | 214 | | **Total (Net of Government Surcharges)** | **1,090,375** | **1,192,008** | | **By Type of Goods or Services:** | | | | Sales of Piped Natural Gas | 945,717 | 1,038,300 | | Sales of Liquefied Natural Gas | 22,516 | 32,282 | | Sales of Household Gas Appliances and Related Equipment | 14,395 | 10,608 | | Sales of Energy | 14,349 | 6,655 | | Sales of Distributed Photovoltaic Power | 10,512 | 6,022 | | **By Timing of Revenue Recognition:** | | | | Goods or Services Transferred at a Point in Time | 1,011,179 | 1,098,371 | | Services Transferred Over Time | 80,794 | 95,727 | [Other Income and Gains](index=9&type=section&id=Other%20Income%20and%20Gains) For the six months ended June 30, 2025, the Group's total other income and gains decreased by 16.43% to RMB 11,663 thousand, primarily due to lower bank interest income, despite new interest from fixed deposits and fair value gains on wealth management products Other Income and Gains (RMB Thousand) | Category | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Bank Interest Income | 3,344 | 12,915 | | Bank Fixed Deposit Interest Income | 4,118 | – | | Finance Income from Net Investment in Leases | 365 | 370 | | Government Grants | 2,577 | 589 | | Other Income | 212 | 109 | | Gain on Disposal of Property, Plant and Equipment | – | 34 | | Fair Value Gain on Wealth Management Products | 1,047 | – | | **Total** | **11,663** | **14,017** | - Other income and gains decreased by **16.43%** year-on-year, primarily due to a decline in bank interest income[21](index=21&type=chunk) [Profit Before Tax](index=10&type=section&id=Profit%20Before%20Tax) For the six months ended June 30, 2025, the Group's profit before tax decreased to RMB 105,421 thousand, influenced by cost of sales, service provision, depreciation, and improved net impairment of financial assets Profit Before Tax (RMB Thousand) | Item | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Cost of Inventories Sold | 912,143 | 990,580 | | Cost of Services Provided | 39,196 | 50,140 | | Depreciation of Property, Plant and Equipment | 35,311 | 30,311 | | Depreciation of Right-of-use Assets | 1,503 | 1,197 | | Amortisation of Other Intangible Assets | 3,727 | 3,724 | | Net Impairment of Financial Assets | 304 | 2,849 | | Bank Interest Income | (3,344) | (12,915) | | Bank Fixed Deposit Interest Income | (4,118) | – | | Fair Value Gain on Wealth Management Products | (1,047) | – | | Interest Expense on Lease Liabilities | 666 | 486 | [Income Tax Expense](index=11&type=section&id=Income%20Tax%20Expense) For the six months ended June 30, 2025, income tax expense decreased by 15.07% to RMB 23,061 thousand, with the effective tax rate falling to 21.92%, driven by preferential tax policies and R&D expense deductions Income Tax Expense (RMB Thousand) | Income Tax Category | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Current Tax | 32,665 | 29,419 | | Deferred Tax | (9,604) | (2,247) | | **Total Tax Expense for the Period** | **23,061** | **27,172** | | Effective Tax Rate | 21.92% | 23.47% | - The decrease in income tax expense and effective tax rate is primarily due to certain subsidiaries enjoying preferential tax policies (such as 'three-year exemption and three-year half reduction' for distributed photovoltaic power projects and a **15%** tax rate for high-tech enterprises) and additional deductions for R&D expenses[23](index=23&type=chunk)[24](index=24&type=chunk)[25](index=25&type=chunk)[47](index=47&type=chunk) [Earnings Per Share Attributable to Ordinary Equity Holders of the Parent](index=12&type=section&id=Earnings%20Per%20Share%20Attributable%20to%20Ordinary%20Equity%20Holders%20of%20the%20Parent) For the six months ended June 30, 2025, profit attributable to ordinary equity holders of the parent was RMB 52,467 thousand, with basic earnings per share at RMB 0.26 (25.9 cents), a decrease from the prior year, and no potential dilutive ordinary shares outstanding Earnings Per Share (RMB Thousand / Number of Shares) | Indicator | 2025 (RMB Thousand / Number of Shares) | 2024 (RMB Thousand / Number of Shares) | | :--- | :--- | :--- | | Profit Attributable to Ordinary Equity Holders of the Parent | 52,467 | 58,562 | | Weighted Average Number of Ordinary Shares | 202,714,500 | 202,714,500 | | Basic Earnings Per Share (RMB Cents) | 25.9 | 28.9 | - There were no potential dilutive ordinary shares outstanding during the reporting period[28](index=28&type=chunk) [Property, Plant and Equipment](index=13&type=section&id=Property%2C%20Plant%20and%20Equipment) As of June 30, 2025, the Group's property, plant, and equipment increased to RMB 1,082,002 thousand, driven by additions of RMB 82,140 thousand, offset by depreciation and disposals Property, Plant and Equipment (RMB Thousand) | Item | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Carrying Amount at Beginning of Period/Year | 1,045,193 | 1,006,754 | | Additions | 82,140 | 185,708 | | Depreciation Expense for the Period/Year | (35,311) | (64,037) | | Disposals | (10,020) | (84,072) | | Carrying Amount at End of Period/Year | 1,082,002 | 1,045,193 | [Trade and Bills Receivables](index=13&type=section&id=Trade%20and%20Bills%20Receivables) As of June 30, 2025, the Group's total trade and bills receivables decreased to RMB 47,284 thousand, with the majority of receivables due within three months Trade and Bills Receivables (RMB Thousand) | Item | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Trade Receivables (Net of Impairment) | 33,145 | 37,645 | | Bills Receivables | 14,139 | 16,821 | | **Total** | **47,284** | **54,466** | | **Ageing Analysis:** | | | | Within 3 Months | 44,849 | 52,490 | | 3 to 6 Months | 2,240 | 1,634 | | 6 Months to 1 Year | 195 | 342 | [Pledged Deposits](index=13&type=section&id=Pledged%20Deposits) As of June 30, 2025, the Group's pledged deposits remained at RMB 20 thousand, primarily consisting of ETC deposits Pledged Deposits (RMB Thousand) | Item | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | ETC Deposits | 20 | 20 | [Trade and Bills Payables](index=14&type=section&id=Trade%20and%20Bills%20Payables) As of June 30, 2025, the Group's total trade and bills payables decreased to RMB 108,062 thousand, with the majority due within one year Trade and Bills Payables (RMB Thousand) | Ageing | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Within 1 Year | 101,061 | 123,566 | | Over 1 Year | 7,001 | 4,177 | | **Total** | **108,062** | **127,743** | [Interest-bearing Bank Borrowings](index=14&type=section&id=Interest-bearing%20Bank%20Borrowings) As of June 30, 2025, the Group's total interest-bearing bank borrowings increased to RMB 23,100 thousand, secured by future revenue from a subsidiary's photovoltaic projects and bearing interest at LPR minus 40 basis points Interest-bearing Bank Borrowings (RMB Thousand) | Category | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Current Bank Loans | 800 | 300 | | Non-current Bank Loans | 22,300 | 14,550 | | **Total** | **23,100** | **14,850** | | **Repayment Date Analysis:** | | | | Within One Year or On Demand | 800 | 300 | | Second Year | 1,000 | 500 | | Third to Fifth Year | 4,650 | 2,700 | | Over Five Years | 16,650 | 11,350 | - Bank loans are pledged against future photovoltaic revenue from six photovoltaic projects of a subsidiary and bear interest at the Loan Prime Rate (LPR) minus **40** basis points[33](index=33&type=chunk) [Share Capital](index=14&type=section&id=Share%20Capital) As of June 30, 2025, the Company's ordinary share capital remained unchanged at 202,714,500 shares with a par value of RMB 202,715 thousand Share Capital (RMB Thousand) | Item | Number of Shares | Par Value (RMB Thousand) | | :--- | :--- | :--- | | December 31, 2024 (Audited) | 202,714,500 | 202,715 | | June 30, 2025 (Unaudited) | 202,714,500 | 202,715 | [Management Discussion and Analysis](index=15&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the industry, the Group's development strategies, performance review, financial overview, liquidity, and other relevant operational and financial information [Industry Overview](index=15&type=section&id=Industry%20Overview) In H1 2025, China's economy grew by 5.3%, while national natural gas consumption declined by 0.9%, with government policies on 'resilient cities' and pipeline reform presenting opportunities for urban gas companies - In the first half of 2025, China's economy grew by **5.3%**, while national apparent natural gas consumption decreased by **0.9%** year-on-year[35](index=35&type=chunk) - National policies prioritize 'resilient city' construction and 'upgrading old pipelines,' and promote the transition of provincial natural gas pipeline transmission pricing from 'one price per line' to a unified provincial system, aiming to reduce costs and support the development of urban gas enterprises[36](index=36&type=chunk)[37](index=37&type=chunk) [Development Strategies and Outlook](index=15&type=section&id=Development%20Strategies%20and%20Outlook) The Group focuses on 'safety, development, and reform,' driven by technological innovation to build a clean, low-carbon, safe, and efficient energy system, optimizing gas sourcing, enhancing energy O&M, and expanding value-added services - The Group is committed to the three major tasks of 'safety, development, and reform,' driven by technological innovation to accelerate the construction of a clean, low-carbon, safe, and efficient new energy system[38](index=38&type=chunk) - Actively exploring optimized gas source access, reducing procurement costs, strengthening energy operation and maintenance management, building a 'smart cloud' platform, promoting intelligent and unmanned gate station upgrades, and applying pipeline inspection robots[39](index=39&type=chunk) - Exploring a 'self-generation and self-consumption + surplus power grid connection' model, enhancing energy efficiency through a 'gas + electricity + heat' multi-energy complementary approach, and seizing the 'trade-in' policy opportunity to upgrade business halls and expand value-added services like kitchen renovations[39](index=39&type=chunk)[40](index=40&type=chunk) [Performance Review](index=16&type=section&id=Performance%20Review) In H1 2025, the Group enhanced its 'gas + clean energy' dual-core business, achieved zero major safety hazards, accelerated digital transformation, and served 327,400 residential and 3,805 commercial users, with gas sales of 282 million cubic meters, a 5.22% decrease - The Group continues to improve its 'gas + clean energy' dual-core synergistic development system and has achieved dynamic clearance of Level 1 hazards for industrial and commercial users within its jurisdiction[41](index=41&type=chunk) - Accelerating digital transformation, establishing a smart research institute, and releasing the nation's first provincial smart gas report, gaining a first-mover advantage in the industry[41](index=41&type=chunk) Performance Indicators | Indicator | June 30, 2025 | | :--- | :--- | | Residential Users | 327,400 households | | Industrial and Commercial Users | 3,805 households | | Gas Sales Volume | 282 million cubic meters (5.22% year-on-year decrease) | | Natural Gas Pipeline Length | Approximately 1,734.66 km | [Financial Overview](index=17&type=section&id=Financial%20Overview) The Group's H1 2025 financial performance saw revenue and gross profit decline due to reduced gas sales and lower non-residential gas prices, while other income decreased, finance costs fell, and income tax expense was reduced by preferential policies, resulting in a 10.41% decrease in profit attributable to owners of the parent [Revenue](index=17&type=section&id=Revenue) The Group's revenue decreased by 8.52% to RMB 1,090.4 million, primarily due to reduced piped natural gas sales volume and lower non-residential sales prices Revenue (RMB Million) | Indicator | 2025 (RMB Million) | 2024 (RMB Million) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,090.4 | 1,192.0 | -8.52 | - The decrease in revenue is primarily attributable to reduced piped natural gas sales volume and lower sales prices for non-residential natural gas users[43](index=43&type=chunk) [Gross Profit](index=17&type=section&id=Gross%20Profit) The Group's gross profit decreased by 8.13% to RMB 139.0 million, mainly impacted by reduced natural gas sales volume and lower non-residential sales prices Gross Profit (RMB Million) | Indicator | 2025 (RMB Million) | 2024 (RMB Million) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Gross Profit | 139.0 | 151.3 | -8.13 | - The decrease in gross profit is primarily due to reduced natural gas sales volume and lower sales prices for non-residential natural gas users[44](index=44&type=chunk) [Other Income and Gains](index=17&type=section&id=Other%20Income%20and%20Gains) The Group's other income and gains decreased by 16.43% to RMB 11.7 million, primarily due to a reduction in interest income Other Income and Gains (RMB Million) | Indicator | 2025 (RMB Million) | 2024 (RMB Million) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Other Income and Gains | 11.7 | 14.0 | -16.43 | - The decrease in other income and gains is primarily due to a reduction in interest income generated by the Group during the reporting period[45](index=45&type=chunk) [Finance Costs](index=17&type=section&id=Finance%20Costs) The Group's finance costs decreased by 31.25% to RMB 1.1 million, primarily due to reduced bank borrowings and lower interest expenses Finance Costs (RMB Million) | Indicator | 2025 (RMB Million) | 2024 (RMB Million) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Finance Costs | 1.1 | 1.6 | -31.25 | - The decrease in finance costs is primarily due to a reduction in bank borrowings and lower interest expenses during the reporting period[46](index=46&type=chunk) [Income Tax Expense](index=17&type=section&id=Income%20Tax%20Expense) The Group's income tax expense decreased by 15.07% to RMB 23.1 million, with the effective tax rate falling to 21.92%, primarily due to preferential tax policies and R&D expense deductions for certain subsidiaries, including a 15% rate for Xin'ao Development as a high-tech enterprise Income Tax Expense (RMB Million) | Indicator | 2025 (RMB Million) | 2024 (RMB Million) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Income Tax Expense | 23.1 | 27.2 | -15.07 | | Effective Tax Rate | 21.92% | 23.47% | -1.55pp | - The decrease in income tax expense and effective tax rate is primarily due to certain subsidiaries within the Group enjoying preferential tax rates and R&D expense additional deduction tax policies, as well as Xin'ao Development being recognized as a high-tech enterprise, applying a **15%** preferential tax rate[47](index=47&type=chunk) [Profit Attributable to Owners of the Parent](index=18&type=section&id=Profit%20Attributable%20to%20Owners%20of%20the%20Parent) Profit attributable to owners of the parent decreased by 10.41% to RMB 52.5 million, primarily due to reduced piped natural gas sales volume and lower non-residential sales prices, leading to decreased gross profit Profit Attributable to Owners of the Parent (RMB Million) | Indicator | 2025 (RMB Million) | 2024 (RMB Million) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Profit Attributable to Owners of the Parent | 52.5 | 58.6 | -10.41 | - The decrease in profit is primarily due to reduced piped natural gas sales volume and lower sales prices for non-residential natural gas during the period, leading to a decrease in gross profit from piped natural gas sales[48](index=48&type=chunk) [Liquidity and Financial Position](index=18&type=section&id=Liquidity%20and%20Financial%20Position) As of June 30, 2025, the Group maintained a net cash position with RMB 965.1 million in current assets, RMB 296.6 million in cash, a current ratio of 1.48, and RMB 266.2 million in unutilized bank facilities, partly for photovoltaic business expansion Liquidity and Financial Position | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current Assets | RMB 965.1 Million | RMB 968.0 Million | | Cash and Bank Balances | RMB 296.6 Million | RMB 828.5 Million | | Current Ratio | 1.48 | 1.59 | | Asset-Liability Ratio | 41.92% | 39.58% | | Capital-Gearing Ratio | 3.83% | 2.97% | - The Group maintains a net cash position and has **RMB 266.2 million** in unutilized bank credit facilities[50](index=50&type=chunk)[51](index=51&type=chunk) - Part of the bank loans are used for the photovoltaic business expansion of Huzhou Hurun New Energy Development Co., Ltd., a subsidiary[50](index=50&type=chunk) [Exchange Rate Fluctuation Risk](index=18&type=section&id=Exchange%20Rate%20Fluctuation%20Risk) The Group's foreign exchange risk is primarily related to HKD-denominated cash and cash equivalents, as most revenue and expenses are denominated in RMB, resulting in no significant exchange rate risk - The Group's vast majority of income and expenses are denominated in RMB, and the foreign exchange risk faced is mainly related to cash and cash equivalents denominated in HKD, but there is no significant exchange rate risk[52](index=52&type=chunk) [Contingent Liabilities, Financial Guarantee Commitments and Pledged Assets](index=19&type=section&id=Contingent%20Liabilities%2C%20Financial%20Guarantee%20Commitments%20and%20Pledged%20Assets) As of June 30, 2025, the Group had no other significant contingent liabilities, material financial guarantee commitments, or pledged assets - As of June 30, 2025, the Group had no other significant contingent liabilities[53](index=53&type=chunk) - As of June 30, 2025, the Group had no material financial guarantee commitments[54](index=54&type=chunk) - As of June 30, 2025, the Group had no pledged assets[55](index=55&type=chunk) [Material Investments Held, Material Acquisitions or Disposals, and Future Plans for Material Investments or Capital Assets](index=19&type=section&id=Material%20Investments%20Held%2C%20Material%20Acquisitions%20or%20Disposals%2C%20and%20Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) During the reporting period, the Group held no material investments, undertook no significant acquisitions or disposals of subsidiaries, associates, or joint ventures, and had no future plans for material investments or capital assets as of the announcement date - During the reporting period, the Group held no material investments and did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures[56](index=56&type=chunk) - As of the date of this announcement, the Company has no future plans for any material investments or capital assets[56](index=56&type=chunk) [Human Resources and Employee Remuneration](index=19&type=section&id=Human%20Resources%20and%20Employee%20Remuneration) As of June 30, 2025, the Group employed 452 staff with total employee costs of approximately RMB 54.6 million, continuously enhancing staff professionalism and quality through targeted training and competitive remuneration Human Resources and Employee Remuneration | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Total Number of Employees | 452 persons | 438 persons | | Total Employee Costs | Approximately RMB 54.6 Million | - | - The Group enhances the professional level and overall quality of its employees by providing targeted training programs and competitive remuneration packages[57](index=57&type=chunk) [Events After the Reporting Period](index=19&type=section&id=Events%20After%20the%20Reporting%20Period) No significant events have occurred from the end of the reporting period up to the date of this announcement - No significant events have occurred from the end of the reporting period up to the date of this announcement[58](index=58&type=chunk) [Material Litigation](index=19&type=section&id=Material%20Litigation) During the reporting period, the Company was not involved in any material litigation or arbitration, and the Directors are unaware of any outstanding or threatened material litigation or claims against the Group - During the reporting period, the Company was not involved in any material litigation or arbitration, and the Directors are not aware of any outstanding or threatened material litigation or claims against the Group[59](index=59&type=chunk) [Use of Net Proceeds from Listing](index=20&type=section&id=Use%20of%20Net%20Proceeds%20from%20Listing) The net proceeds from the H-share global offering were approximately RMB 236.9 million, with RMB 149.859 million utilized for network upgrades, photovoltaic business expansion, and working capital, leaving RMB 87.041 million for strategic acquisitions and gas boiler heat utilization, expected to be used by end of 2026 Use of Net Proceeds from Listing (RMB Thousand) | Intended Use | Allocation Percentage | Allocated Amount (RMB Thousand) | Utilized (RMB Thousand) | Unutilized (RMB Thousand) | Expected Utilization Date | | :--- | :--- | :--- | :--- | :--- | :--- | | Upgrading Pipeline Network and Operating Facilities | 20% | 47,400 | 47,400 | 0 | - | | Strategic Acquisitions | 30% | 71,000 | 0 | 71,000 | By end of 2026 | | Expanding Distributed Photovoltaic Power Generation Business | 30% | 71,000 | 71,000 | 0 | - | | Promoting Natural Gas Boiler Heat Utilization | 10% | 23,800 | 7,759 | 16,041 | By end of 2026 | | Working Capital and General Corporate Purposes | 10% | 23,700 | 23,700 | 0 | - | | **Total** | **100%** | **236,900** | **149,859** | **87,041** | | - The unutilized net proceeds have been deposited in interest-bearing accounts with licensed banks[60](index=60&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=20&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) During the reporting period, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, and no treasury shares were held at the period end - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, and no treasury shares were held as of the end of the reporting period[61](index=61&type=chunk) [Corporate Governance and Other Information](index=21&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section details the Company's corporate governance practices, standards for securities transactions, interim dividend policy, audit committee review, and publication of interim results [Corporate Governance](index=21&type=section&id=Corporate%20Governance) The Company is committed to maintaining high standards of corporate governance, having adopted and complied with all code provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules - The Company has adopted and complied with all code provisions of the Corporate Governance Code as set out in Appendix C1 to the Listing Rules during the reporting period[62](index=62&type=chunk) [Standard Code for Securities Transactions](index=21&type=section&id=Standard%20Code%20for%20Securities%20Transactions) The Company has adopted a code of conduct no less exacting than the Standard Code in Appendix C3 of the Listing Rules, with all Directors and Supervisors confirming compliance and no employee breaches identified during the period - The Company has adopted a code of conduct no less exacting than the Standard Code as set out in Appendix C3 to the Listing Rules, and all Directors and Supervisors have complied with it during the reporting period[63](index=63&type=chunk) - This code of conduct also applies to employees who may possess unpublished price-sensitive information, and no breaches by employees were observed during the reporting period[63](index=63&type=chunk) [Interim Dividend](index=21&type=section&id=Interim%20Dividend) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[64](index=64&type=chunk) [Audit Committee and Review of Interim Financial Statements](index=21&type=section&id=Audit%20Committee%20and%20Review%20of%20Interim%20Financial%20Statements) The Audit Committee, in conjunction with management and external auditor Ernst & Young, has reviewed the Group's accounting principles, policies, and unaudited interim results, confirming compliance with applicable accounting standards and requirements - The Audit Committee has reviewed the Group's accounting principles, policies, and unaudited interim results with management and the external auditor, Ernst & Young[65](index=65&type=chunk) - The review concluded that the interim results were prepared in compliance with applicable accounting standards and requirements, with adequate disclosures, and no disagreement on the accounting treatments adopted[65](index=65&type=chunk) [Publication of Interim Results and 2025 Interim Report](index=22&type=section&id=Publication%20of%20Interim%20Results%20and%202025%20Interim%20Report) This announcement and the Company's interim report will be published on the Company's and HKEX websites in due course, with printed copies dispatched upon shareholder request - This announcement and the Company's interim report for the reporting period will be published in due course on the Company's website (www.hzrqgf.com) and the HKEX website (http://www.hkexnews.hk)[66](index=66&type=chunk)

香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM的定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他在聯交所上市的公 司帶有較高投資風險。有意投資的人士應了解投資於該等公司的潛在風險，並應經過審慎周 詳的考慮後方作出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣的證券可能會較於聯交所主板買賣之證券 承受較大的市場波動風險，同時無法保證在GEM買賣的證券會有高流通量的市場。 本報告的資料乃遵照聯交所的《GEM證券上市規則》（「GEM上市規則」）而刊載，旨在提供有關 飛霓控股有限公司（「本公司」，連同其附屬公司統稱「本集團」）的資料；本公司的董事（「董事」） 願就本報告的資料共同及個別地承擔全部責任。各董事在作出一切合理查詢後，確認就其所 知及所信，本報告所載資料在各重要方面均屬準確完備，沒有誤導或欺詐成份，且並無遺漏 任何其他事項，足以令致本報告或其所載任何陳述產生誤導。 本公司董事會（「董事會」）宣佈本集團截至二零二五年六月三十日止六個月（「本期間」）的未 經審核簡明綜合中期業績，連同二零二四年同期未經審核比較數字以及二零二四年十二月 三十一日的若干比較數字如下： 未經審核簡明綜 ...

[Performance Summary](index=1&type=section&id=Performance%20Summary) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) In H1 2025, the Group's total revenue decreased by 18.5% to RMB 13.273 billion, mainly due to a decline in the finished drug business, while profit attributable to shareholders decreased by 15.6% to RMB 2.548 billion H1 2025 Financial Highlights (RMB '000) | Indicator | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | **13,273,416** | **16,284,282** | **-18.5%** | | Finished Drug Revenue | 10,247,652 | 13,549,079 | -24.4% | | Raw Material Product Revenue | 2,074,708 | 1,854,794 | +11.9% | | Functional Food & Other Revenue | 951,056 | 880,409 | +8.0% | | **Profit Attributable to Shareholders** | **2,547,851** | **3,020,374** | **-15.6%** | | **Basic Profit Attributable to Shareholders** | **2,319,521** | **3,216,870** | **-27.9%** | | Basic EPS (RMB cents) | 22.29 | 25.51 | -12.6% | | Interim Dividend per Share (HK cents) | 14.00 | 16.00 | -12.5% | - The Board declared an interim dividend of **HKD 14 cents per share** for 2025, a decrease from **HKD 16 cents** in the prior year period[6](index=6&type=chunk) - The company repurchased and cancelled **64.3 million shares** for **HKD 300 million** in H1 2025 to enhance EPS and shareholder returns[6](index=6&type=chunk) [Company and Business Overview](index=2&type=section&id=Company%20and%20Business%20Overview) [Company Overview](index=2&type=section&id=Company%20Overview) CSPC Pharmaceutical Group is an innovation-driven, integrated pharmaceutical enterprise pursuing a 'innovation + internationalization' dual-engine strategy with a global R&D team and extensive pipeline - The Group adheres to a 'innovation + internationalization' dual-engine strategy, continuously increasing R&D investment and strengthening team building[7](index=7&type=chunk) - The Group has an international R&D team of over **2,000 people** across multiple global centers, focusing on six core therapeutic areas including oncology, neuropsychiatry, and cardiovascular[8](index=8&type=chunk) - The Group has completed **4 out-licensing projects** year-to-date, with cumulative contract value reaching **USD 9.71 billion**, and a strategic R&D collaboration with AstraZeneca on an AI platform[10](index=10&type=chunk) - The Group has over **200 innovative drugs and formulations** in development, with over **160 clinical trials** underway, and expects to file for market approval for over **50 new drugs or indications** by the end of 2028[11](index=11&type=chunk) [Finished Drug Business](index=4&type=section&id=Finished%20Drug%20Business) In H1 2025, finished drug revenue decreased by 24.4% to RMB 10.248 billion, primarily due to centralized procurement impacting core products, while out-licensing revenue provided new growth Finished Drug Business Revenue by Therapeutic Area (RMB '000) | Therapeutic Area | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Neuroscience | 3,754,814 | 5,235,700 | -28.3% | | Oncology | 1,050,606 | 2,683,139 | -60.8% | | Anti-infectives | 1,656,912 | 2,307,375 | -28.2% | | Cardiovascular | 868,336 | 1,228,902 | -29.3% | | Respiratory System | 575,441 | 756,025 | -23.9% | | Digestive & Metabolic | 528,099 | 646,697 | -18.3% | | Other | 738,777 | 691,241 | +6.9% | | **Subtotal Sales of Goods** | **9,172,985** | **13,549,079** | **-32.3%** | | Licensing Fee Income | 1,074,667 | – | Not Applicable | | **Total Revenue** | **10,247,652** | **13,549,079** | **-24.4%** | - Core products like Duomeisu and Jinyouli faced significant price adjustments due to centralized procurement policies, leading to temporary pressure on finished drug business revenue[13](index=13&type=chunk) - In H1 2025, the Group's licensing income reached **RMB 1.075 billion**, becoming a new growth driver for the finished drug business, with plans to develop it into a core source of recurring revenue[15](index=15&type=chunk) [Neuroscience](index=5&type=section&id=Neuroscience) Neuroscience sales declined due to price reductions for NBP® and Shuanling® from national centralized procurement, but Mingfule® saw significant growth after entering the medical insurance catalog - NBP® sales revenue decreased due to national medical insurance negotiation price reductions, but improved product accessibility[22](index=22&type=chunk) - Shuanling® injection was included in the 10th batch of national centralized procurement, leading to a significant decrease in sales revenue[22](index=22&type=chunk) - Mingfule® sales revenue significantly increased year-on-year in H1 due to its new indication entering the medical insurance catalog[22](index=22&type=chunk) [Oncology](index=6&type=section&id=Oncology) Oncology sales significantly declined due to Duomeisu® inclusion in national centralized procurement and Jinyouli®'s expanded centralized procurement, while new products provided growth - Duomeisu®'s inclusion in the 10th batch of national centralized procurement led to a substantial reduction in sales price, being the primary reason for the decline in this segment's revenue[29](index=29&type=chunk) - Jinyouli® sales revenue significantly decreased due to the expansion of the '3+N' alliance centralized drug procurement policy in Beijing-Tianjin-Hebei[29](index=29&type=chunk) - Duoenyi® sales revenue significantly increased year-on-year, and newly launched product Enshuxing® also provided new growth momentum for the business[29](index=29&type=chunk) [Anti-infectives](index=7&type=section&id=Anti-infectives) Anti-infectives business saw reduced sales for key products like Anfulike®, Weihong®, and Nuomoling® in H1 2025 due to weakened market demand, with only Shuluoke® showing growth - Sales revenue for products such as Anfulike®, Weihong®, and Nuomoling® all decreased due to weakened market demand[31](index=31&type=chunk) [Cardiovascular](index=8&type=section&id=Cardiovascular) Cardiovascular sales declined as Xuanning® was impacted by centralized procurement volume-based tasks in public medical institutions, while only Daxinning® achieved steady growth - Xuanning® sales in public medical institutions were affected by the implementation of volume-based tasks for centralized procurement products, leading to a year-on-year revenue decrease[36](index=36&type=chunk) [Respiratory System](index=9&type=section&id=Respiratory%20System) Respiratory system sales decreased overall, as market impacts on Qixin®, Nuoyian®, and Qixiao® offset stable growth from Yiluoda® and new contributions from Ennitan® - Yiluoda® sales revenue achieved steady growth, and new product Ennitan® contributed new growth points to this segment[40](index=40&type=chunk) - Sales revenue for products such as Qixin®, Nuoyian®, and Qixiao® all decreased due to market impact, leading to an overall revenue reduction in this segment[40](index=40&type=chunk) [Digestive & Metabolic](index=9&type=section&id=Digestive%20%26%20Metabolic) Digestive and metabolic sales declined overall, as competitive market conditions and a pricing strategy adjustment for Debixin® led to a decrease in average selling price - Debixin®'s sales strategy adjustment led to a decrease in its unit price, which was the main reason for the overall decline in sales revenue for this segment[43](index=43&type=chunk) [Raw Material Product Business](index=10&type=section&id=Raw%20Material%20Product%20Business) In H1 2025, raw material product sales increased by 11.9% to RMB 2.075 billion, driven by a 21.6% rise in Vitamin C revenue from strong overseas demand, while antibiotic sales remained flat Raw Material Product Business Revenue (RMB Billion) | Product Category | H1 2025 Revenue | Year-on-Year Growth | | :--- | :--- | :--- | | **Total** | **2.075** | **+11.9%** | | Vitamin C | 1.196 | +21.6% | | Antibiotics | 0.879 | Flat | - Vitamin C product revenue growth was primarily driven by significantly increased overseas market demand[46](index=46&type=chunk) [Functional Food and Other Businesses](index=11&type=section&id=Functional%20Food%20and%20Other%20Businesses) In H1 2025, functional food and other businesses generated RMB 951.056 million in sales revenue, an 8.0% increase, primarily due to higher caffeine sales volume - Functional food and other businesses revenue was **RMB 951.056 million**, a year-on-year increase of **8.0%**, mainly due to increased caffeine sales volume[48](index=48&type=chunk) [R&D Progress](index=11&type=section&id=R%26D%20Progress) [R&D Investment and Pipeline Overview](index=11&type=section&id=R%26D%20Investment%20and%20Pipeline%20Overview) In H1 2025, R&D expenses increased by 5.5% to RMB 2.683 billion, representing 26.2% of finished drug revenue, with nearly 90 products in clinical stages and 12 submitted for market approval R&D Expenses | Indicator | Amount (RMB) | Year-on-Year Change | % of Finished Drug Revenue | | :--- | :--- | :--- | :--- | | R&D Expenses | 2.683 billion | +5.5% | 26.2% | - Currently, nearly **90 products** are in different stages of clinical trials, with **12 submitted for market approval** and over **30 key products** in registration clinical stages[49](index=49&type=chunk) [Registration and Approval Progress](index=11&type=section&id=Registration%20and%20Approval%20Progress) Year-to-date, the Group achieved significant regulatory milestones in China with 3 innovative product approvals and 5 marketing application acceptances, alongside 9 IND approvals and 1 Fast Track designation in North America - Year-to-date, the Group obtained approval for **3 innovative products** in China, accepted **5 marketing applications**, and received **4 breakthrough therapy designations**[50](index=50&type=chunk) Products Approved for Marketing in H1 2025 | Month | Drug Name | Indication | | :--- | :--- | :--- | | January 2025 | Sanzeping® (Pluoglitin Tablets) | Improving glycemic control in adults with type 2 diabetes | | February 2025 | Ennitan® (Omalizumab for Injection) | Treatment of moderate to severe persistent allergic asthma | | June 2025 | Meiluotai® (Meloxicam Injection (III)) | Moderate to severe pain in adults | Products with Marketing Applications Accepted in H1 2025 | Month | Investigational Drug | Indication | | :--- | :--- | :--- | | March 2025 | Aprepitant Injection | Prevention of postoperative nausea and vomiting | | March 2025 | Irinotecan Liposome Injection | First-line metastatic pancreatic cancer | | March 2025 | Paliperidone Palmitate Injection (1M) | Schizophrenia | | June 2025 | Pregabalin Extended-Release Tablets | Diabetic peripheral neuropathic pain and postherpetic neuralgia | | August 2025 | Semaglutide Injection | Glycemic control in adults with type 2 diabetes | [Key Clinical Research Progress](index=14&type=section&id=Key%20Clinical%20Research%20Progress) During the period, the Group initiated or completed first patient enrollment for multiple pivotal clinical trials across oncology, depression, and hypertension, with key studies reaching top-line results and findings published in international conferences - First patient enrollment achieved for Phase III clinical trials of multiple drugs including JSKN003, Amcitine Hydrochloride Enteric-coated Tablets, and SYS6010[60](index=60&type=chunk)[61](index=61&type=chunk) - TG103 Injection (GLP-1) Phase III clinical trial for the treatment of overweight and obesity completed its clinical study report[64](index=64&type=chunk) - Semaglutide Injection Phase III clinical trial for the treatment of type 2 diabetes completed its clinical study report[66](index=66&type=chunk) - Multiple research findings were presented as oral reports or posters at international conferences such as AACR, ASCO, and ESMO, gaining international recognition[67](index=67&type=chunk)[68](index=68&type=chunk)[69](index=69&type=chunk) [Clinical Pipeline Overview](index=20&type=section&id=Clinical%20Pipeline%20Overview) The Group maintains a robust clinical pipeline with multiple products submitted for market approval in China and the US, alongside dozens of ongoing pivotal clinical trials utilizing advanced technologies - Submitted marketing applications for **10 drugs** in China, including Semaglutide Injection (for type 2 diabetes) and Irinotecan Liposome Injection (for first-line pancreatic cancer)[70](index=70&type=chunk) - Submitted marketing applications for **2 drugs** in the United States, namely Amphotericin B Liposome for Injection and Irinotecan Hydrochloride Liposome Injection[70](index=70&type=chunk) - Over **20 pivotal clinical trials** are ongoing in China, covering high-demand therapeutic areas such as breast cancer, gastric cancer, obesity, diabetes, and depression[71](index=71&type=chunk)[72](index=72&type=chunk)[73](index=73&type=chunk) [Business Development and Financial Review](index=24&type=section&id=Business%20Development%20and%20Financial%20Review) [Business Development](index=24&type=section&id=Business%20Development) In H1 2025, the Group achieved significant business development breakthroughs through out-licensing, completing four major agreements with substantial potential transaction values, including a strategic AI platform collaboration with AstraZeneca - Reached an exclusive licensing agreement with Radiance Biopharma for ADC drug SYS6005, with a potential total value of up to **USD 1.24 billion**[76](index=76&type=chunk) - Reached an exclusive licensing agreement with Cipla USA for the commercialization rights of Irinotecan Liposome Injection in the US, with a potential total value of up to **USD 1.065 billion**[77](index=77&type=chunk) - Reached a strategic R&D collaboration with AstraZeneca on an AI drug discovery platform, with a potential total value of up to **USD 5.33 billion**[78](index=78&type=chunk) - Reached a global exclusive licensing agreement with Madrigal Pharmaceuticals for small molecule GLP-1 agonist SYH2086, with a potential total value of up to **USD 2.075 billion**[79](index=79&type=chunk) [Financial Review](index=25&type=section&id=Financial%20Review) In H1 2025, revenue decreased by 18.5% and gross margin by 6 percentage points to 65.6% due to centralized procurement, while operating expenses significantly decreased, and R&D investment continued to grow, maintaining a robust financial position - Revenue decreased by **18.5%** to **RMB 13.273 billion**, and gross margin decreased by **6.0 percentage points** to **65.6%**, primarily due to the inclusion of Duomeisu® and Jinyouli® in centralized procurement and a reduced proportion of finished drug business revenue[80](index=80&type=chunk) - Sales and distribution expenses decreased by **36.2%** year-on-year to **RMB 3.049 billion**, mainly due to significantly lower sales expenses for products winning centralized procurement bids[83](index=83&type=chunk) - R&D expenses increased by **5.5%** year-on-year to **RMB 2.683 billion**, primarily for ongoing and newly initiated clinical studies[84](index=84&type=chunk) - Cash inflow from operating activities was **RMB 3.187 billion**, significantly higher than **RMB 1.425 billion** in the prior year period[88](index=88&type=chunk) - As of June 30, 2025, the Group's bank deposits, balances, and cash reached **RMB 10.291 billion**, with a debt-to-asset ratio of only **0.7%**, indicating a robust financial position[89](index=89&type=chunk) [Condensed Consolidated Financial Statements](index=28&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss](index=28&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, the Group reported revenue of RMB 13.273 billion, a 18.5% decrease, and profit for the period of RMB 2.574 billion, a 15.6% decrease, despite reduced operating expenses Condensed Consolidated Statement of Profit or Loss (RMB '000) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Revenue | 13,273,416 | 16,284,282 | | Gross Profit | 8,710,192 | 11,654,547 | | Sales and Distribution Expenses | (3,049,160) | (4,777,410) | | R&D Expenses | (2,682,631) | (2,541,991) | | Profit Before Tax | 3,117,667 | 3,801,130 | | Profit for the Period | 2,574,050 | 3,051,466 | | Profit Attributable to Owners of the Company | 2,547,851 | 3,020,374 | [Condensed Consolidated Statement of Financial Position](index=30&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets were RMB 46.002 billion, total liabilities RMB 11.138 billion, and net assets RMB 34.864 billion, all showing slight increases from year-end 2024, with improved net current assets Condensed Consolidated Statement of Financial Position Summary (RMB '000) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **46,002,354** | **44,388,991** | | Non-current Assets | 23,392,266 | 22,500,847 | | Current Assets | 22,610,088 | 21,888,144 | | **Total Liabilities** | **11,138,478** | **10,522,701** | | Current Liabilities | 10,112,501 | 9,634,027 | | Non-current Liabilities | 1,025,977 | 888,674 | | **Net Assets/Total Equity** | **34,863,876** | **33,866,290** | [Other Information](index=40&type=section&id=Other%20Information) [Share Repurchase](index=40&type=section&id=Share%20Repurchase) As of June 30, 2025, the company repurchased and cancelled 64.3 million shares for approximately HKD 300 million, aiming to enhance earnings per share and shareholder value Share Repurchase Details | Month | Number of Shares Repurchased | Highest Price (HKD) | Lowest Price (HKD) | Total Consideration (HKD) | | :--- | :--- | :--- | :--- | :--- | | January | 38,850,000 | 4.72 | 4.38 | 176,597,000 | | March | 3,000,000 | 4.95 | 4.88 | 14,763,000 | | April | 22,450,000 | 4.95 | 4.66 | 108,155,000 | | **Total** | **64,300,000** | | | **299,515,000** |

Company Announcements [Disclaimer](index=1&type=section&id=%E5%85%8D%E8%B2%AC%E8%81%B2%E6%98%8E) Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited are not responsible for the accuracy or completeness of this announcement - HKEX and SEHK assume no responsibility for the content of this announcement[1](index=1&type=chunk) [Interim Results Announcement Summary](index=1&type=section&id=%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%85%AC%E5%91%8A%E6%91%98%E8%A6%81) Tai Hing Group achieved significant revenue and profit growth in H1 2025, driven by restaurant network optimization and stringent cost control, despite market challenges Key Financial Highlights | Indicator | H1 2025 (HK$ thousands) | H1 2024 (HK$ thousands) | YoY Growth (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 1,712,240 | 1,612,488 | 6.2% | | Profit Attributable to Company Shareholders | 40,800 | 10,700 | 280.8% | | Cash and Cash Equivalents (End of Period) | 282,300 | N/A | N/A | | Interim Dividend (HK cents per share) | 3.50 | 2.50 | 40.0% | - The Group actively optimized its restaurant network, expanded new brands, and renovated stores to meet customer demand[2](index=2&type=chunk) - The Group strictly controlled costs, streamlined operational processes, and negotiated favorable terms with landlords and suppliers[2](index=2&type=chunk) - The Group recorded **HK$282.3 million** in cash and cash equivalents as of June 30, 2025, with no bank borrowings[2](index=2&type=chunk) Unaudited Condensed Consolidated Financial Statements [Unaudited Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the Group reported a 6.2% revenue increase and a 280.4% surge in profit attributable to shareholders, driven by effective cost control and store consolidation strategies Consolidated Statement of Profit or Loss Highlights | Indicator | H1 2025 (HK$ thousands) | H1 2024 (HK$ thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,712,240 | 1,612,488 | 6.2% | | Cost of Materials | (455,841) | (424,318) | 7.4% | | Gross Profit | 1,256,399 | 1,188,170 | 5.7% | | Other Income and Gains | 8,637 | 8,864 | -2.6% | | Staff Costs | (616,713) | (601,017) | 2.6% | | Depreciation of Property, Plant and Equipment | (60,128) | (66,743) | -9.9% | | Amortization of Right-of-Use Assets, Lease and Related Expenses, Net | (258,299) | (257,971) | 0.1% | | Other Operating Expenses | (253,422) | (237,568) | 6.7% | | Finance Costs | (20,123) | (17,849) | 12.7% | | Profit Before Tax | 56,351 | 15,886 | 254.7% | | Income Tax Expense | (15,538) | (5,166) | 200.8% | | Profit for the Period | 40,813 | 10,720 | 280.7% | | Profit for the Period Attributable to Owners of the Company | 40,813 | 10,719 | 280.7% | | Basic and Diluted Earnings Per Share (HK cents) | 4.19 | 1.07 | 291.6% | [Unaudited Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the Group's total comprehensive income (net of tax) significantly increased to HK$43.7 million, primarily due to higher profit for the period and a favorable foreign exchange difference from overseas operations Consolidated Statement of Comprehensive Income Highlights | Indicator | H1 2025 (HK$ thousands) | H1 2024 (HK$ thousands) | | :--- | :--- | :--- | | Profit for the Period | 40,813 | 10,720 | | Exchange Differences on Translation of Overseas Operations | 5,527 | (7,403) | | Total Comprehensive Income for the Period (Net of Tax) | 43,724 | 3,317 | | Total Comprehensive Income Attributable to Owners of the Company | 43,724 | 3,275 | - Exchange differences on translation of overseas operations turned from a loss of **HK$7,403 thousands** in H1 2024 to a gain of **HK$5,527 thousands** in H1 2025[4](index=4&type=chunk) [Unaudited Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, the Group's total non-current assets slightly increased, while net current liabilities decreased due to reductions in both total current assets and liabilities Consolidated Statement of Financial Position Highlights | Indicator | June 30, 2025 (HK$ thousands) | December 31, 2024 (HK$ thousands) | | :--- | :--- | :--- | | Total Non-Current Assets | 1,939,081 | 1,880,093 | | Total Current Assets | 532,064 | 485,801 | | Total Current Liabilities | 756,552 | 759,610 | | Net Current Liabilities | (224,488) | (273,809) | | Total Assets Less Current Liabilities | 1,714,593 | 1,606,284 | | Total Non-Current Liabilities | 749,203 | 778,974 | | Net Assets | 857,081 | 935,619 | | Total Equity | 857,081 | 935,619 | | Issued Share Capital | 9,714 | 10,054 | | Reserves | 847,367 | 925,565 | - Net current liabilities decreased from **HK$273,809 thousands** as of December 31, 2024, to **HK$224,488 thousands** as of June 30, 2025[5](index=5&type=chunk) - The decrease in issued share capital reflects share repurchases and cancellations during the period[6](index=6&type=chunk)[43](index=43&type=chunk) Notes to the Interim Financial Information [Company and Group Information](index=6&type=section&id=%E5%85%AC%E5%8F%B8%E5%8F%8A%E9%9B%86%E5%9C%98%E8%B3%87%E6%96%99) Tai Hing Group Holdings Limited, incorporated in the Cayman Islands in 2017 and listed on the HKEX in 2019, primarily operates restaurants and sells food products - The company was incorporated in the Cayman Islands on December 11, 2017, with its principal place of business in Hong Kong[7](index=7&type=chunk) - The Group is engaged in restaurant operations and food sales businesses[8](index=8&type=chunk) - The company's shares were listed on the Main Board of the Stock Exchange of Hong Kong on June 13, 2019[9](index=9&type=chunk) [Accounting Policies](index=6&type=section&id=%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) The interim financial information is prepared in accordance with HKAS 34 and Listing Rules, with the Board adopting a going concern basis despite net current liabilities, and new HKFRS amendments having no material impact - The interim financial information is prepared in accordance with Appendix D2 to the Listing Rules and Hong Kong Accounting Standard 34[10](index=10&type=chunk) - As of June 30, 2025, the Group had net current liabilities of **HK$273,809 thousands**, but the directors believe there is sufficient operating cash flow to meet liabilities, thus preparing on a going concern basis[11](index=11&type=chunk) - Newly adopted revised HKFRS accounting standards, such as amendments to HKAS 21, had no significant financial impact on the financial statements[12](index=12&type=chunk)[13](index=13&type=chunk) [Operating Segment Information](index=7&type=section&id=%E7%B6%93%E7%87%9F%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group operates in two geographical segments, Hong Kong & Macau and Mainland China, both engaged in restaurant operations and food sales, with the former showing growth and the latter narrowing losses despite revenue decline - The Group has two reportable operating segments: Hong Kong and Macau, and Mainland China[14](index=14&type=chunk)[16](index=16&type=chunk) Operating Segment Performance | Indicator (HK$ thousands) | Hong Kong & Macau (H1 2025) | Hong Kong & Macau (H1 2024) | Mainland China (H1 2025) | Mainland China (H1 2024) | Total (H1 2025) | Total (H1 2024) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Sales to External Customers | 1,579,294 | 1,430,721 | 132,946 | 181,767 | 1,712,240 | 1,612,488 | | Segment Results | 64,664 | 41,609 | (7,588) | (24,955) | 57,076 | 16,654 | | Segment Assets (End of Period) | 1,792,944 | 1,812,288 | 253,922 | 288,846 | 2,046,866 | 2,101,134 | | Segment Liabilities (End of Period) | 1,361,325 | 1,374,116 | 122,095 | 148,513 | 1,483,420 | 1,522,629 | - Sales to external customers in the Hong Kong and Macau segment increased by **10.4%** year-on-year, with segment results growing by **55.4%** year-on-year[17](index=17&type=chunk) - Sales to external customers in the Mainland China segment decreased by **26.9%** year-on-year, but segment loss narrowed from **HK$24,955 thousands** to **HK$7,588 thousands**[17](index=17&type=chunk) [Revenue, Other Income and Gains](index=9&type=section&id=%E6%94%B6%E7%9B%8A%E3%80%81%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A) The Group's revenue primarily stems from restaurant operations and food sales, with Hong Kong and Macau as key markets, while other income and gains, including bank interest and government grants, slightly decreased overall Revenue by Goods/Services and Geographical Market | Type of Goods or Services (HK$ thousands) | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Revenue from Restaurant Operations | 1,666,928 | 1,570,345 | | Revenue from Food Sales | 45,312 | 42,143 | | Total | 1,712,240 | 1,612,488 | | Geographical Market (HK$ thousands) | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Hong Kong and Macau | 1,579,294 | 1,430,721 | | Mainland China | 132,946 | 181,767 | | Total | 1,712,240 | 1,612,488 | Other Income and Gains Breakdown | Other Income and Gains Item (HK$ thousands) | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Bank Interest Income | 2,175 | 3,394 | | Rental Income | 802 | 942 | | Royalty Income | 306 | 875 | | Subsidies from Public Utility Companies for Purchase of Property, Plant and Equipment | 1,331 | 1,419 | | Government Grants | 559 | 442 | | Net Gain on Deregistration of Subsidiaries | 2,616 | – | | Net Exchange Difference | – | 714 | | Others | 848 | 1,078 | | Total | 8,637 | 8,864 | - Performance obligations for restaurant operations are satisfied when catering services are provided, while for food sales, they are satisfied upon delivery and customer acceptance of products[22](index=22&type=chunk)[23](index=23&type=chunk) [Finance Costs](index=10&type=section&id=%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) For the six months ended June 30, 2025, the Group's finance costs, primarily interest on lease liabilities, increased year-on-year Finance Costs Breakdown | Finance Cost Item (HK$ thousands) | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Interest on Lease Liabilities | 20,123 | 17,849 | [Profit Before Tax](index=11&type=section&id=%E9%99%A4%E7%A8%85%E5%89%8D%E6%BA%A2%E5%88%A9) The Group's profit before tax is calculated after deducting various operating expenses, including material costs, depreciation, amortization, staff costs, impairment losses, and utility expenses, with net exchange differences now classified under other operating expenses Profit Before Tax Adjustments | Expense Item (HK$ thousands) | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Cost of Materials | 455,841 | 424,318 | | Depreciation of Property, Plant and Equipment | 60,128 | 66,743 | | Amortization of Right-of-Use Assets | 202,696 | 216,881 | | Total Employee Benefit Expenses | 616,713 | 601,017 | | Net Exchange Difference | 201 | (714) | | Net Impairment Loss on Right-of-Use Assets | 14,851 | 12,890 | | Net Impairment Loss on Property, Plant and Equipment | 7,617 | 5,491 | | Loss on Disposal of Property, Plant and Equipment and Right-of-Use Assets | 1,937 | 1,344 | | Utility Expenses | 73,174 | 68,830 | - For the period ended June 30, 2025, net exchange differences are included in "Other operating expenses" in the statement of profit or loss, whereas in the prior period, they were included in "Other income and gains"[27](index=27&type=chunk) [Income Tax](index=12&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85) The Group is exempt from income tax in the Cayman Islands and BVI, while Hong Kong profits tax is 16.5% (8.25% for qualifying entities), and China and Macau are 25% and 12% respectively, with a significant increase in total tax expense due to deferred tax shifting from income to expense - Hong Kong profits tax rate is **16.5%**, with the first **HK$2,000,000** for qualifying entities taxed at **8.25%**[31](index=31&type=chunk) - Tax rates for China and Macau are **25%** and **12%** respectively[31](index=31&type=chunk) Income Tax Breakdown | Income Tax Item (HK$ thousands) | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Current - Hong Kong | 11,626 | 8,842 | | Current - Other Jurisdictions | 830 | 238 | | Deferred Tax | 3,082 | (3,914) | | Total Income Tax Expense for the Period | 15,538 | 5,166 | [Dividends](index=12&type=section&id=%E8%82%A1%E6%81%AF) This section provides notes related to dividends, serving as a structural component of the financial statements without specific numerical details [Earnings Per Share Attributable to Owners of the Company](index=12&type=section&id=%E6%9C%AC%E5%85%AC%E5%8F%B8%E8%82%A1%E6%9D%B1%E6%87%89%E4%BD%B5%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) For the six months ended June 30, 2025, basic earnings per share attributable to owners of the company significantly increased to **4.19 HK cents** from **1.07 HK cents** in the prior year, driven by higher profit and a reduced weighted average number of ordinary shares outstanding Earnings Per Share Details | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit Attributable to Ordinary Equity Holders of the Company (HK$ thousands) | 40,813 | 10,719 | | Weighted Average Number of Ordinary Shares Outstanding for the Period (shares) | 973,233,000 | 1,005,399,000 | | Basic and Diluted Earnings Per Share (HK cents) | 4.19 | 1.07 | - The Group had no potentially dilutive ordinary shares outstanding during the reporting period[35](index=35&type=chunk) [Property, Plant and Equipment and Right-of-use Assets](index=13&type=section&id=%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%A8%AD%E5%82%99%E4%BB%A5%E5%8F%8A%E4%BD%BF%E7%94%A8%E6%AC%8A%E8%B3%87%E7%94%A2) For the six months ended June 30, 2025, the Group's acquisitions of property, plant and equipment and right-of-use assets decreased, while the total net book value of pledged assets for bank financing slightly declined Property, Plant and Equipment and Right-of-Use Assets Acquisitions and Pledges | Indicator | H1 2025 (HK$ million) | H1 2024 (HK$ million) | | :--- | :--- | :--- | | Acquisitions of Property, Plant and Equipment and Right-of-Use Assets | 51.1 | 68.6 | | Indicator | June 30, 2025 (HK$ million) | December 31, 2024 (HK$ million) | | :--- | :--- | :--- | | Total Net Book Value of Pledged Property, Plant and Equipment and Right-of-Use Assets | 201.3 | 205.9 | [Trade Receivables](index=13&type=section&id=%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of June 30, 2025, the Group's total trade receivables slightly increased, with credit terms generally ranging from a few days to two months, and overdue balances regularly reviewed by senior management Trade Receivables and Aging Analysis | Trade Receivables (HK$ thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Trade Receivables | 30,303 | 28,203 | | Aging Analysis (HK$ thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 1 Month | 28,632 | 23,655 | | 1 to 2 Months | 176 | 2,985 | | 2 to 3 Months | 732 | 424 | | Over 3 Months | 763 | 1,139 | - The Group's trade terms with customers are primarily cash, credit card, electronic payment, and on credit, with credit periods generally ranging from a few days to two months[39](index=39&type=chunk) [Trade Payables](index=14&type=section&id=%E8%B2%BF%E6%98%93%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2025, the Group's total trade payables slightly decreased, with most payables having an aging period within one month Trade Payables and Aging Analysis | Trade Payables (HK$ thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Trade Payables | 82,596 | 85,269 | | Aging Analysis (HK$ thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 1 Month | 81,383 | 74,796 | | 1 to 2 Months | 3 | 6,301 | | 2 to 3 Months | 174 | 554 | | Over 3 Months | 1,036 | 3,618 | [Share Capital](index=14&type=section&id=%E8%82%A1%E6%9C%AC) As of June 30, 2025, the Group's issued share capital decreased due to share repurchases and cancellations, with 33,980,000 shares cancelled for a total consideration of HK$29,564,000 during the period Share Capital Structure | Share Capital Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Authorized Share Capital (shares) | 10,000,000,000 | 10,000,000,000 | | Issued and Fully Paid Share Capital (shares) | 971,419,000 | 1,005,399,000 | | Issued and Fully Paid Share Capital (HK$ thousands) | 9,714 | 10,054 | - During the review period, the company repurchased and cancelled **33,980,000** ordinary shares for a total consideration of **HK$29,564,000**[43](index=43&type=chunk) [Share Option Schemes](index=15&type=section&id=%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%A8%88%E5%8A%83) The company has pre-IPO and post-IPO share option schemes to reward and incentivize eligible participants, with no outstanding or granted options under either scheme as of June 30, 2025 - The company has a pre-IPO share option scheme to reward and compensate eligible participants who have contributed to the Group's successful operations[44](index=44&type=chunk) - The company has a post-IPO share option scheme to encourage eligible individuals to enhance personal performance and efficiency, and to attract and retain talent[46](index=46&type=chunk) - As of June 30, 2025, there were no unexercised or granted share options under either scheme[44](index=44&type=chunk)[46](index=46&type=chunk) Management Discussion and Analysis [Overall Performance](index=16&type=section&id=%E6%95%B4%E9%AB%94%E8%A1%A8%E7%8F%BE) Despite global economic uncertainties, Hong Kong consumer outflow, and intense competition, Tai Hing Group achieved 6.2% revenue growth to HK$1,712.2 million and 280.8% profit attributable to shareholders to HK$40.8 million in H1 2025, through marketing strategies, product launches, and stringent cost management - Global macroeconomic uncertainties, Hong Kong consumer outflow, and intense competition in the catering markets of Hong Kong and Mainland China increased operational pressure[47](index=47&type=chunk) Overall Performance Highlights | Indicator | H1 2025 (HK$ million) | H1 2024 (HK$ million) | YoY Growth (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 1,712.2 | 1,612.5 | 6.2% | | Gross Profit | 1,256.4 | 1,188.2 | 5.7% | | Gross Profit Margin | 73.4% | 73.7% | -0.3pp | | Profit Attributable to Company Shareholders | 40.8 | 10.7 | 280.8% | | Basic Earnings Per Share (HK cents) | 4.19 | 1.07 | 291.6% | - The Group drove revenue growth through marketing strategies, promotional activities, the Tai Hing App, social media promotion, and the launch of traffic-driving products[48](index=48&type=chunk) - The Group maintained a strong financial position with ample cash, recording **HK$282.3 million** in cash and cash equivalents as of June 30, 2025, and no bank borrowings[49](index=49&type=chunk) [Other Income and Gains](index=16&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A) During the review period, the Group's total other income and gains amounted to HK$8.6 million, a slight decrease from the prior year, primarily comprising bank interest income, equipment subsidies, and rental income Other Income and Gains Summary | Other Income and Gains (HK$ million) | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Total | 8.6 | 8.9 | - Key components include bank interest income, subsidies received from public utility companies for equipment purchases, and rental income[50](index=50&type=chunk) [Operating Costs](index=17&type=section&id=%E7%B6%93%E7%87%9F%E6%88%90%E6%9C%AC) The Group implemented various control measures for material, staff, and lease-related costs, resulting in a slight increase in material cost-to-revenue ratio, but decreases in staff and lease-related cost-to-revenue ratios, while other operating expenses rose due to increased revenue and asset impairment from store consolidation Operating Costs Analysis | Operating Cost Item | H1 2025 (HK$ million) | H1 2024 (HK$ million) | Ratio to Revenue (H1 2025) | Ratio to Revenue (H1 2024) | | :--- | :--- | :--- | :--- | :--- | | Cost of Materials | 455.8 | 424.3 | 26.6% | 26.3% | | Staff Costs | 616.7 | 601.0 | 36.0% | 37.3% | | Amortization of Right-of-Use Assets, Lease and Related Expenses | 258.3 | 258.0 | 15.1% | 16.0% | | Other Operating Expenses | 253.4 | 237.6 | 14.8% | 14.7% | | Impairment Loss on Property, Plant and Equipment and Right-of-Use Assets | 22.5 | 18.4 | N/A | N/A | - Material costs are controlled through sourcing, contract agreements, new supplier introduction, synergistic production between Hong Kong and Mainland China factories, and supply chain optimization[51](index=51&type=chunk) - Staff costs are reduced by optimizing human resource deployment, accelerating store automation and digitalization (e.g., Tai Hing App enhancements, automated kitchen equipment), and AI training[52](index=52&type=chunk) - Lease-related expenses are optimized through active negotiations with landlords for rent reductions[53](index=53&type=chunk) - The increase in other operating expenses is primarily due to higher operational expenditures (delivery platform fees, utilities, cleaning fees) driven by increased revenue, and asset write-offs and impairment provisions from store consolidation[54](index=54&type=chunk) [Industry and Geographical Analysis](index=18&type=section&id=%E8%A1%8C%E6%A5%AD%E5%8F%8A%E5%9C%B0%E7%90%86%E5%88%86%E6%9E%90) The Hong Kong SAR government's tourism promotion offers opportunities for the Group to expand its network, while the Mainland China catering industry faces supply-demand imbalance and intense competition, which the Group addresses through resource reallocation, product innovation, and e-commerce partnerships - Hong Kong's tourism development positively impacts the Group, which is expanding into core and tourist areas like Kai Tak Sports Park, Mong Kok, and Tseung Kwan O[55](index=55&type=chunk) - The Mainland China catering industry faces supply-demand imbalance, rising costs, and intense competition, accelerating market consolidation[56](index=56&type=chunk) - The Group reallocates resources in Mainland China, focusing on high-potential cities, innovating products, optimizing offerings, and partnering with delivery platforms to enhance competitiveness[56](index=56&type=chunk) - The Group opened a "Minh Wah Bing Teng" flagship store in Lujiazui, enhancing brand influence through themed menus and marketing activities[56](index=56&type=chunk) [Business Segment Analysis](index=18&type=section&id=%E6%A5%AD%E5%8B%99%E5%88%86%E9%83%A8%E5%88%86%E6%9E%90) Tai Hing Group manages a diverse portfolio of restaurant brands, with 217 outlets as of June 30, 2025, demonstrating continued growth in its flagship brand "Tai Hing" and other brands like "Assam Chicken Rice" and "Trusty Congee and Noodle," while "Minh Wah Bing Teng" maintained stability despite a slight revenue dip, all supported by optimized marketing strategies and the "Tai Hing App" [Restaurant Network Overview](index=18&type=section&id=%E9%A4%90%E5%BB%B3%E7%B6%B2%E7%B5%B2%E6%A6%82%E8%A7%88) Tai Hing Group operates a diverse portfolio of restaurant brands, expanding its network to 217 outlets as of June 30, 2025, with most located in Hong Kong and Macau, and 17 in the Greater Bay Area (excluding Hong Kong and Macau) - The Group owns a diversified portfolio of brands including "Tai Hing", "Trusty Congee and Noodle", "Kam Lai", "Minh Wah Bing Teng", and "Teawood"[57](index=57&type=chunk) Restaurant Network Statistics | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Number of Stores | 217 | 211 | | Number of Stores in Hong Kong and Macau | 188 | N/A | | Number of Stores in Mainland China | 29 | N/A | | Number of Stores in Greater Bay Area (excluding HK & Macau) | 17 | N/A | [Flagship Brand 「Tai Hing」](index=19&type=section&id=%E6%97%97%E8%89%A6%E5%93%81%E7%89%8C%E3%80%8C%E5%A4%AA%E8%88%88%E3%80%8D) "Tai Hing," the Group's flagship brand, saw a 6.5% year-on-year revenue increase to HK$645.0 million, accounting for 37.7% of total revenue, driven by enhanced brand positioning, media collaborations, seasonal promotions, and product innovation Tai Hing Brand Performance | Indicator | H1 2025 (HK$ million) | H1 2024 (HK$ million) | YoY Growth (%) | Ratio to Total Revenue (H1 2025) | Ratio to Total Revenue (H1 2024) | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue from "Tai Hing" | 645.0 | 605.4 | 6.5% | 37.7% | 37.5% | - "Tai Hing" strengthened its "Roast Meat King" brand positioning through collaborations with popular TV programs and launching takeaway-exclusive offers and coupons to boost brand awareness and sales[59](index=59&type=chunk) - Actively promoted product innovation, introducing new dishes and optimizing existing products to enrich menu options[59](index=59&type=chunk) [「Minh Wah Bing Teng」](index=19&type=section&id=%E3%80%8C%E6%95%8F%E8%8F%AF%E5%86%B0%E5%BB%B3%E3%80%8D) "Minh Wah Bing Teng," the Group's second-largest revenue contributor, recorded HK$438.2 million, a slight 0.2% year-on-year decrease primarily due to strategic store consolidation in Mainland China, while new advertising and classic limited-time set meals enhanced market recognition and sales growth Minh Wah Bing Teng Brand Performance | Indicator | H1 2025 (HK$ million) | H1 2024 (HK$ million) | YoY Change (%) | Ratio to Total Revenue (H1 2025) | Ratio to Total Revenue (H1 2024) | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue from "Minh Wah Bing Teng" | 438.2 | 438.9 | -0.2% | 25.6% | 27.2% | - The slight revenue decrease was mainly due to strategic store consolidation in Mainland China from H2 2024 to H1 2025, closing some underperforming outlets[60](index=60&type=chunk) - Launched new advertisements "Preserving Old Flavors, Minh Wah Since 1973" and classic limited-time nostalgic set meals to enhance brand recognition and sales[60](index=60&type=chunk) [「Assam Chicken Rice」](index=19&type=section&id=%E3%80%8C%E4%BA%9E%E5%8F%83%E9%9B%9E%E9%A3%AF%E3%80%8D) "Assam Chicken Rice" achieved robust performance with a 9.4% year-on-year revenue growth to HK$129.4 million, representing 7.6% of total revenue, strengthening its Southeast Asian dining positioning through film sponsorship, cross-marketing, and new dinner offerings, while expanding market reach with two new Hong Kong outlets Assam Chicken Rice Brand Performance | Indicator | H1 2025 (HK$ million) | H1 2024 (HK$ million) | YoY Growth (%) | Ratio to Total Revenue (H1 2025) | Ratio to Total Revenue (H1 2024) | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue from "Assam Chicken Rice" | 129.4 | 118.3 | 9.4% | 7.6% | 7.3% | - Strengthened its Southeast Asian dining market positioning through cross-marketing strategies, such as sponsoring a Malaysian Lunar New Year film and launching the "Assam Laksa Set Meal"[61](index=61&type=chunk) - Expanded market coverage by adding two new stores in Hong Kong, bringing the total to **21** outlets[61](index=61&type=chunk) [「Trusty Congee and Noodle」](index=20&type=section&id=%E3%80%8C%E9%9D%A0%E5%BE%97%E4%BD%8F%E3%80%8D) "Trusty Congee and Noodle" saw a 20.9% year-on-year revenue growth to HK$80.8 million, accounting for 4.7% of total revenue, driven by prudent price adjustments, promotional product bundles, and continuous product R&D, with its Wan Chai branch earning the Michelin Bib Gourmand for fifteen consecutive years Trusty Congee and Noodle Brand Performance | Indicator | H1 2025 (HK$ million) | H1 2024 (HK$ million) | YoY Growth (%) | Ratio to Total Revenue (H1 2025) | Ratio to Total Revenue (H1 2024) | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue from "Trusty Congee and Noodle" | 80.8 | 66.8 | 20.9% | 4.7% | 4.1% | - The Wan Chai "Trusty Congee and Noodle" branch has been awarded the Michelin Bib Gourmand for **fifteen** consecutive years[62](index=62&type=chunk) [Other Brands and Marketing Strategies](index=20&type=section&id=%E5%85%B6%E4%BB%96%E5%93%81%E7%89%8C%E5%8F%8A%E7%87%9F%E9%8A%B7%E7%AD%96%E7%95%A5) The Group continues to launch high-value brands like "An Jin Dao" and "Ichibashi Ramen," upgraded "Dumpling Town" with its debut at Kai Tak Sports Park, and effectively stimulated consumption and enhanced customer loyalty through diverse product portfolios, takeaway-exclusive offers, social media promotion, and "Tai Hing App" member benefits - Launched high-value brands such as "An Jin Dao" (Korean-style bibimbap) and "Ichibashi Ramen" (affordable ramen)[63](index=63&type=chunk) - "Dumpling Town" debuted with a new image at Kai Tak Sports Park, offering a novel dining experience[63](index=63&type=chunk) - Introduced various takeaway-exclusive promotional products and expanded brand reach through social media and advertising campaigns[64](index=64&type=chunk) - The "Tai Hing App" membership exceeded **270,000**, becoming a key growth platform offering diverse services like advance ordering, takeaway, in-store pickup, delivery, and group catering[65](index=65&type=chunk) - The "Tai Hing App" features exclusive member offers, limited-time events, and collaborative benefits with other companies, effectively stimulating consumption and enhancing customer loyalty[65](index=65&type=chunk) [Sustainability](index=21&type=section&id=%E5%8F%AF%E6%8C%81%E7%BA%8C%E7%99%BC%E5%B1%95) Tai Hing Group integrates sustainability into its operations through the "Tai Hing Care" initiative, actively promoting low-carbon transition and earning the "Green Driven Excellence Award," engaging in community and fundraising activities, and fostering an inclusive workplace, recognized with the "Excellent Employer Award" for seven consecutive years and the "Star Diamond Service Award" - Signed the "Catering Industry Low Carbon Living" charter, committing to reducing carbon emissions and promoting green operational models[66](index=66&type=chunk) - Awarded the "Green Driven Excellence Award" by the "Environment and Conservation Fund Carbon Neutrality Programme for the Catering Industry"[66](index=66&type=chunk) - Collaborated with over **10** social welfare organizations to host community and fundraising events, supporting vulnerable groups in response to the government's "Love Dining Rewards" scheme[67](index=67&type=chunk) - Signed the Equal Opportunities Commission's "Racial Diversity and Inclusion Employer Charter" to promote an inclusive workplace culture[68](index=68&type=chunk) - Awarded the "ERB Annual Award Ceremony 2024/25 – Excellent Employer Award" for the **seventh** consecutive year, and the "Star Diamond Service Award – Best Catering Service"[68](index=68&type=chunk) [Outlook](index=21&type=section&id=%E5%89%8D%E6%99%AF) Facing a complex market, Tai Hing Group will pursue a "steady progress" strategy, enhancing customer experience, upgrading brand image, optimizing product portfolios, expanding its store network, and deepening e-commerce collaborations to boost competitiveness and deliver stable, sustainable shareholder returns - The Group will continue to upgrade brand images, such as renovating flagship "Tai Hing" stores and innovating "Teawood" decor, to attract a broader customer base[70](index=70&type=chunk) - Continuously optimize existing products and develop new ones, such as seasonal limited-time offerings for "Tai Hing" and "Trusty Congee and Noodle," and optimize brand-specific operational strategies (e.g., "Minh Wah Bing Teng" launching limited-time dinner specials)[70](index=70&type=chunk) - Optimize store network layout, consolidating existing business districts and developing new potential areas like Tseung Kwan O, Kai Tak, and Tsuen Wan, with each brand expanding new stores based on its characteristics[71](index=71&type=chunk) - Deepen strategic collaborations with mainstream e-commerce platforms like AlipayHK, The Club, Television Broadcasts Limited, and "Neighbourhood Buy," expanding customer touchpoints through live streaming, special programs, and limited-time offers[72](index=72&type=chunk) Other Information [Interim Dividend](index=23&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board has declared an interim dividend of **3.50 HK cents** per share for the six months ended June 30, 2025, an increase from the prior year Interim Dividend Declaration | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Interim Dividend (HK cents per share) | 3.50 | 2.50 | - Dividend warrants are expected to be dispatched to shareholders on or before October 16, 2025[73](index=73&type=chunk) [Closure of Register of Members](index=23&type=section&id=%E6%9A%AB%E5%81%9C%E8%BE%A6%E7%90%86%E8%82%A1%E4%BB%BD%E9%81%8E%E6%88%B6%E7%99%BB%E8%A8%98) To determine eligibility for the interim dividend, the company will suspend share transfer registration from September 25 to September 29, 2025 (inclusive), requiring shareholders to submit all transfer documents by 4:30 p.m. on September 24, 2025 - Share transfer registration will be suspended from September 25 to September 29, 2025[74](index=74&type=chunk) - Shareholders must submit transfer documents by **4:30 p.m. on September 24, 2025**, to qualify for the interim dividend[74](index=74&type=chunk) [Liquidity and Financial Resources, Borrowings, Capital Structure, Foreign Exchange Fluctuation Risk and Others](index=23&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E8%88%87%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90%E3%80%81%E5%80%9F%E6%AC%BE%E3%80%81%E8%82%A1%E6%9C%AC%E7%B5%90%E6%A7%8B%E3%80%81%E5%8C%AF%E7%8E%87%E6%B3%A2%E5%8B%95%E9%A2%A8%E9%9A%AA%E5%8F%8A%E5%85%B6%E4%BB%96) The Group's primary funding sources are internal cash flow and IPO proceeds, with HK$282.3 million in cash and cash equivalents and no interest-bearing bank borrowings as of June 30, 2025; liquidity ratios decreased, gearing ratio slightly increased, and the Group faces RMB-HKD exchange rate fluctuation risk, along with contingent liabilities and pledged assets [Liquidity and Financial Resources](index=23&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E8%88%87%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) The Group's main funding sources are internal cash flow and IPO proceeds, with HK$282.3 million in cash and cash equivalents as of June 30, 2025, primarily used for new restaurant openings, factory enhancements, renovations, share buybacks, and dividends, while both current and adjusted current ratios decreased Liquidity and Financial Resources Overview | Indicator (HK$ million) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and Cash Equivalents | 282.3 | 330.8 | | Total Current Assets | 485.8 | 532.1 | | Total Current Liabilities | 759.6 | 756.6 | | Current Ratio | 0.6 times | 0.7 times | | Adjusted Net Current Assets | 143.7 | 204.4 | | Adjusted Current Ratio | 1.4 times | 1.6 times | - Funds are primarily used for opening new restaurants, strengthening and expanding food factories, renovating existing restaurants, repurchasing shares, and paying dividends[75](index=75&type=chunk) [Borrowings](index=23&type=section&id=%E5%80%9F%E6%AC%BE) As of June 30, 2025, the Group had no interest-bearing bank borrowings and did not use any financial instruments for hedging during the period - As of June 30, 2025, the Group had no interest-bearing bank borrowings[77](index=77&type=chunk) - No financial instruments were used for hedging during the period[77](index=77&type=chunk) [Gearing Ratio](index=24&type=section&id=%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E6%AF%94%E7%8E%87) As of June 30, 2025, the Group's gearing ratio was **58.4%**, a slight increase from **56.0%** as of December 31, 2024 Gearing Ratio | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Gearing Ratio | 58.4% | 56.0% | - The gearing ratio is calculated as net debt divided by capital plus net debt, where net debt includes contract liabilities, lease liabilities, trade payables, other payables, and accrued expenses, less cash and cash equivalents[78](index=78&type=chunk) [Foreign Currency Risk](index=24&type=section&id=%E5%A4%96%E5%B9%A3%E9%A2%A8%E9%9A%AA) The Group's revenue and costs are primarily denominated in HKD and RMB, exposing it to exchange rate fluctuations between RMB and HKD; currently, there is no currency hedging policy, but the Group will monitor and take appropriate measures - The Group's revenue and costs are primarily denominated in Hong Kong Dollars and Renminbi, subject to exchange rate fluctuations between RMB and HKD[79](index=79&type=chunk) - The Group does not have any currency hedging policy but will closely monitor foreign currency risk and take appropriate measures[79](index=79&type=chunk) [Contingent Liabilities](index=24&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group had contingent liabilities of approximately HK$75.9 million from bank guarantees issued to landlords and public utility companies in lieu of deposits, an increase from December 31, 2024 Contingent Liabilities | Indicator (HK$ million) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Contingent Liabilities (Bank Guarantees) | 75.9 | 62.1 | [Pledged Assets](index=24&type=section&id=%E9%9B%86%E5%9C%98%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, the Group had pledged property, plant and equipment and right-of-use assets with a total net book value of approximately HK$201.3 million to secure bank facilities, representing a slight decrease in total pledged assets Pledged Assets | Indicator (HK$ million) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Net Book Value of Pledged Assets | 201.3 | 205.9 | [Significant Acquisitions and Disposals](index=24&type=section&id=%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE%E4%BA%8B%E9%A0%85) For the six months ended June 30, 2025, the Group made no other significant acquisitions or disposals beyond those disclosed in this announcement, nor any other major investment or capital asset acquisition plans - No other significant acquisitions or disposals of subsidiaries, associated corporations, joint ventures, major investments, or contractual commitments occurred during the period[82](index=82&type=chunk) - As of the announcement date, there were no other significant investment or capital asset acquisition plans[82](index=82&type=chunk) [Human Resources](index=24&type=section&id=%E4%BA%BA%E5%8A%9B%E8%B3%87%E6%BA%90) As of June 30, 2025, the Group employed approximately **6,400** staff, an increase from December 31, 2024, with remuneration policies based on employee strengths, qualifications, and abilities, and director/senior management compensation recommended by the Remuneration Committee based on performance and market conditions Employee Statistics | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of Employees | Approximately 6,400 | Approximately 6,200 | - Remuneration policy is determined by senior management based on employee strengths, qualifications, and abilities[83](index=83&type=chunk) - Directors' and senior management's remuneration is recommended by the Remuneration Committee based on operating results, individual performance, and market conditions[83](index=83&type=chunk) [Share Option Schemes](index=25&type=section&id=%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%A8%88%E5%8A%83) The company maintains pre-IPO and post-IPO share option schemes to incentivize and reward eligible participants, with no outstanding or granted options under either scheme as of June 30, 2025 - The company has pre-IPO and post-IPO share option schemes designed to incentivize and reward eligible participants[84](index=84&type=chunk) - As of June 30, 2025, there were no outstanding or granted share options under either scheme[84](index=84&type=chunk) [Purchases, Sales and Redemptions of Listed Securities](index=25&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E5%8F%8A%E8%B4%96%E5%9B%9E%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) For the six months ended June 30, 2025, the company repurchased and cancelled **27,540,000** shares on the Stock Exchange for approximately HK$25.12 million, with the Board believing these buybacks are in the best interest of the company and shareholders, demonstrating confidence in long-term business prospects Share Repurchase Details | Indicator | H1 2025 | | :--- | :--- | | Number of Shares Repurchased | 27,540,000 shares | | Total Repurchase Consideration (excluding transaction costs) | Approximately HK$25,120,000 | | Highest Price Per Share | HK$0.97 | | Lowest Price Per Share | HK$0.79 | | Cancellation Date | February 28, 2025 | - The Board believes that share repurchases demonstrate the company's confidence in its long-term business prospects and create value for shareholders[85](index=85&type=chunk) [Material Events After Reporting Period](index=25&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A0%85) The Directors are unaware of any disclosable material events occurring after June 30, 2025, and up to the date of this announcement - As of the announcement date, there were no disclosable material events after the reporting period[86](index=86&type=chunk) [Review by Audit Committee and Interim Results Review](index=25&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83%E5%AF%A9%E9%96%B1%E5%8F%8A%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%AF%A9%E9%96%B1) The company's Audit Committee reviewed the Group's accounting principles, risk management, internal control systems, and financial reporting, including the unaudited interim condensed consolidated financial statements, which were also reviewed by external auditor Ernst & Young in accordance with HKSRE 2410 - The Audit Committee reviewed accounting principles, risk management, internal controls, and financial reporting matters[87](index=87&type=chunk) - External auditor Ernst & Young reviewed the interim financial information in accordance with Hong Kong Standard on Review Engagements 2410[87](index=87&type=chunk) [Compliance with Corporate Governance Code](index=26&type=section&id=%E9%81%B5%E5%AE%88%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) For the six months ended June 30, 2025, the company complied with the applicable code provisions of the Corporate Governance Code set out in Appendix C1 to the Listing Rules - The company complied with the applicable code provisions of the Corporate Governance Code set out in Appendix C1 to the Listing Rules[88](index=88&type=chunk) [Compliance with the Standard Code for Securities Transactions by Directors](index=26&type=section&id=%E9%81%B5%E5%AE%88%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The company adopted the Standard Code for Securities Transactions by Directors as set out in Appendix C3 to the Listing Rules, and all Directors confirmed compliance during the review period - The company adopted the Standard Code for Securities Transactions by Directors as set out in Appendix C3 to the Listing Rules[89](index=89&type=chunk) - All Directors confirmed compliance with the required standards set out in the Standard Code during the review period[89](index=89&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=26&type=section&id=%E5%88%8A%E7%99%BC%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%85%AC%E5%91%8A%E5%8F%8A%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) This interim results announcement has been published on the HKEX and company websites, and the interim report containing all required information will be dispatched to shareholders and published on both websites in due course - The interim results announcement has been published on the HKEX website (www.hkexnews.hk) and the company's website (www.taihing.com)[90](index=90&type=chunk) - The interim report will be dispatched to shareholders and published on the HKEX website and the company's website in due course[90](index=90&type=chunk) [Board of Directors](index=26&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83%E6%88%90%E5%93%A1) As of the announcement date, the Board of Directors comprises three executive directors (including Chairman Mr. Chan Wing On), one non-executive director, and three independent non-executive directors - The Board of Directors includes Executive Directors Mr. Chan Wing On (Chairman), Mr. Yuen Chi Ming, Ms. Chan Shuk Fong, and Mr. Chan Ka Keung[91](index=91&type=chunk) - The Non-Executive Director is Mr. Ho Ping Ki[91](index=91&type=chunk) - The Independent Non-Executive Directors are Mr. Mak Ping Leung, Mr. Wong Siu Kai, and Dr. Sat Chui Wan[91](index=91&type=chunk)

[Financial Performance Overview](index=1&type=section&id=I.%20Financial%20Performance%20Overview) The group achieved significant profit growth in H1 2025, driven by investment gains, despite a decline in insurance revenue, leading to an expanded asset and liability structure [Condensed Consolidated Statement of Profit or Loss](index=1&type=section&id=1.1%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) Asia Financial Group's profit for the period increased by **17.1%** to **HKD 423,351 thousand** in H1 2025, primarily due to higher dividend income and investment gains Key Financial Data for H1 2025 (Profit or Loss Statement) | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Insurance revenue | 1,451,755 | 1,642,356 | -11.6% | | Insurance service results | 161,070 | 166,233 | -3.1% | | Dividend income | 108,312 | 74,901 | +44.6% | | Realized gains on investments | 30,317 | 22,335 | +35.7% | | Unrealized gains on investments | 148,029 | 108,084 | +37.0% | | Profit before tax | 466,937 | 405,704 | +15.1% | | Profit for the period | 423,351 | 361,387 | +17.1% | | Basic earnings per share | 45.8 HK cents | 38.9 HK cents | +17.7% | | Interim dividend per share | 6.5 HK cents | 5.5 HK cents | +18.2% | [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=1.2%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) Total comprehensive income for H1 2025 significantly improved to **HKD 148,949 thousand** from a loss in the prior year, mainly due to a narrower loss from equity investments Condensed Consolidated Comprehensive Income for H1 2025 | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Profit for the period | 423,351 | 361,387 | | Net other comprehensive income that may be reclassified to profit or loss in subsequent periods | 22,432 | (39,339) | | Net other comprehensive income that will not be reclassified to profit or loss in subsequent periods | (296,834) | (510,339) | | Other comprehensive income for the period, net of tax | (274,402) | (549,678) | | Total comprehensive income for the period | 148,949 | (188,291) | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=1.3%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets increased to **HKD 16,731,760 thousand**, with equity attributable to owners of the Company also rising, reflecting overall balance sheet expansion Condensed Consolidated Financial Position as of June 30, 2025 | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Total assets | 16,731,760 | 16,333,555 | | Equity attributable to owners of the Company | 11,741,773 | 11,677,999 | | Total liabilities | 4,989,987 | 4,655,556 | | Cash and bank balances | 2,666,962 | 2,522,379 | | Equity investments designated at fair value through other comprehensive income | 5,194,569 | 5,482,070 | | Financial assets at fair value through profit or loss | 3,058,654 | 2,746,119 | | Insurance contract liabilities | 4,226,599 | 3,891,024 | [Notes to the Interim Financial Statements](index=5&type=section&id=II.%20Notes%20to%20the%20Interim%20Financial%20Statements) This section details the accounting policies, segment information, and specific financial components underlying the interim financial statements [Accounting Policies](index=5&type=section&id=2.1%20Accounting%20Policies) The condensed interim consolidated financial statements adhere to HKAS 34, maintaining consistency with 2024 annual report policies, with no impact from HKAS 21 (Revised) - The condensed interim consolidated financial statements are prepared in accordance with HKAS 34, with accounting policies consistent with the 2024 annual report[7](index=7&type=chunk) - HKAS 21 (Revised) "Lack of Exchangeability" has no impact on these condensed interim consolidated financial statements, as the Group's transaction and functional currencies are convertible[8](index=8&type=chunk) [Operating Segment Information](index=6&type=section&id=2.2%20Operating%20Segment%20Information) The Group operates in two segments, Insurance and Corporate, with over **90%** of insurance revenue and results derived from Hong Kong, Macau, and mainland China - The Group's operating segments are "Insurance" and "Corporate," with detailed segment revenue, results, assets, and liabilities provided[9](index=9&type=chunk)[10](index=10&type=chunk)[11](index=11&type=chunk) - Over **90%** of the Group's insurance revenue and results are derived from Hong Kong, Macau, and mainland China[12](index=12&type=chunk) [Operating Segments](index=6&type=section&id=2.2.1%20Operating%20Segments) In H1 2025, the Insurance segment generated **HKD 1,451,755 thousand** in external customer revenue, while the Corporate segment reported **HKD 157,333 thousand** in other net income H1 2025 Segment Performance Overview | Metric | Insurance Segment (2025, HKD thousands) | Corporate Segment (2025, HKD thousands) | | :--- | :--- | :--- | | External customer revenue | 1,451,755 | - | | Other income, revenue and gains, net | 178,469 | 157,333 | | Segment results | 291,671 | 120,509 | | Interests in joint ventures | 408,826 | 157,922 | | Interests in associates | 402,264 | 488,763 | | Segment assets | 8,574,382 | 6,699,603 | | Segment liabilities | 4,469,790 | 520,197 | [Geographical Information](index=7&type=section&id=2.2.2%20Geographical%20Information) Over **90%** of the Group's insurance revenue and results originate from Hong Kong, Macau, and mainland China, indicating a strong focus on the Greater China region - Over **90%** of the Group's insurance revenue and results are derived from Hong Kong, Macau, and mainland China[12](index=12&type=chunk) [Insurance Revenue](index=7&type=section&id=2.3%20Insurance%20Revenue) Insurance revenue is defined as the expected premium income allocated over the service period of each insurance contract - Insurance revenue represents the expected premium income allocated over the service period of each insurance contract[13](index=13&type=chunk) [Finance Costs](index=7&type=section&id=2.4%20Finance%20Costs) Finance costs for H1 2025 primarily consisted of **HKD 71 thousand** in interest on lease liabilities, a slight decrease from the prior year Finance Costs | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Interest on lease liabilities | 71 | 75 | [Profit Before Tax](index=8&type=section&id=2.5%20Profit%20Before%20Tax) The Group's H1 2025 profit before tax was **HKD 466,937 thousand**, driven by positive contributions from investment gains and dividend income, despite increased staff costs Components of Profit Before Tax | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Auditor's remuneration | (3,850) | (2,548) | | Staff costs | (111,705) | (102,703) | | Total realized gains on investments | 30,317 | 22,335 | | Unrealized gains on financial assets at fair value through profit or loss | 148,029 | 108,084 | | Total dividend income | 108,312 | 74,901 | | Exchange gains/(losses), net | 19,572 | (7,282) | [Income Tax Expense](index=9&type=section&id=2.6%20Income%20Tax%20Expense) Income tax expense for H1 2025 was **HKD 43,586 thousand**, slightly lower than the prior year, with Hong Kong profits taxed at **16.5%** Income Tax Expense Details | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Current - Hong Kong for the period | 25,017 | 1,929 | | Current - Other jurisdictions for the period | 15,378 | 13,874 | | Deferred | 3,179 | 28,404 | | Total tax expense for the period | 43,586 | 44,317 | [Dividends](index=9&type=section&id=2.7%20Dividends) The Board declared an interim dividend of **HKD 6.5 cents** per ordinary share for H1 2025, totaling **HKD 60,069 thousand**, an increase from the prior year Interim Dividend Declaration | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Total proposed interim dividend | 60,069 | 51,038 | | Interim dividend per ordinary share | 6.5 HK cents | 5.5 HK cents | [Earnings Per Share](index=9&type=section&id=2.8%20Earnings%20Per%20Share) Basic earnings per share for H1 2025 increased to **HKD 45.8 cents**, driven by higher profit for the period and a slightly reduced weighted average number of shares Earnings Per Share Calculation | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Profit for the period attributable to ordinary equity holders of the Company | 423,351,000 HKD | 361,387,000 HKD | | Weighted average number of ordinary shares in issue for the period | 924,527,000 shares | 928,677,000 shares | | Basic earnings per share | 45.8 HK cents | 38.9 HK cents | - For the periods ended June 30, 2025 and 2024, the Group had no potentially dilutive ordinary shares in issue, thus no adjustment for dilution was required for basic earnings per share[19](index=19&type=chunk) [Share Capital](index=10&type=section&id=2.9%20Share%20Capital) Issued share capital as of June 30, 2025, decreased to **HKD 924,370 thousand** due to the repurchase and cancellation of **380,000** ordinary shares during the period Share Capital Movement | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Issued share capital | 924,370 | 924,750 | | Share capital | 1,500,000 | 1,500,000 | - In H1 2025, a subsidiary of the Company repurchased and cancelled **380,000** ordinary shares, resulting in a reduction in share capital[20](index=20&type=chunk)[21](index=21&type=chunk) - As of the date of this announcement, the Company's total number of issued shares is **924,142,000** shares[22](index=22&type=chunk) [Management Discussion and Analysis](index=11&type=section&id=III.%20Management%20Discussion%20and%20Analysis) This section provides an overview of the Group's H1 2025 performance, strategic responses to the economic environment, and future outlook across its diverse business segments [Performance Summary and Strategy](index=11&type=section&id=3.1%20Performance%20Summary%20and%20Strategy) Asia Financial Group's profit attributable to shareholders grew **17.1%** to **HKD 423.4 million** in H1 2025, driven by investment and insurance contributions, with a strategy of geographical diversification H1 2025 Core Performance Indicators | Metric | H1 2025 | YoY Change | | :--- | :--- | :--- | | Profit attributable to owners of the Company | HKD 423.4 million | +17.1% | | Earnings per share | HKD 45.8 cents | +17.7% | | Interim dividend per share | HKD 6.5 cents | +18.2% | - Performance growth was primarily driven by year-on-year increases in equity trading investments, robust insurance business performance, and reliable contributions from joint ventures and associates[23](index=23&type=chunk) - The Group reduced its reliance on the US market, diversifying investments into other key regions such as China, Japan, and Europe, to navigate global trade tensions, policy uncertainties, and geopolitical instability[23](index=23&type=chunk)[24](index=24&type=chunk) [Economic Background](index=12&type=section&id=3.2%20Economic%20Background) The global economy is experiencing moderate growth, with strong equity market performance in the US, Japan, Europe, China, and Hong Kong, supported by government stimulus and capital inflows - The International Monetary Fund forecasts global economic growth of **2.8%** in 2025, with China at **4%**, Hong Kong at **1.5%**, the US at **1.8%**, and the EU at **1.2%**[26](index=26&type=chunk) - In H1, the US Dow Jones Industrial Average rose **3.6%**, Japan's Nikkei 225 Stock Average increased **1.5%**, and the MSCI Europe Index climbed **6.5%**[26](index=26&type=chunk) - Chinese and Hong Kong equity markets experienced strong growth, driven by government stimulus and domestic capital flows, with the Hang Seng China Enterprises (H-Share) Index rising **19%** and the Hang Seng Index surging **20%**[26](index=26&type=chunk) - China's economy is supported by targeted government stimulus measures focusing on key sectors like innovation, green energy, and self-reliant semiconductors, while Hong Kong strengthens its financial, technological, and trade sectors by attracting multinational corporations, investments, and talent[27](index=27&type=chunk) [Management Approach and Outlook](index=13&type=section&id=3.3%20Management%20Approach%20and%20Outlook) The Group maintains a prudent and flexible investment strategy centered on equity trading, diversifying its portfolio to capitalize on transformative industries and expand its insurance business in key Asian markets - The Group's investment strategy will remain centered on equity trading investments, adhering to prudent and flexible principles to navigate ongoing geopolitical and economic uncertainties[25](index=25&type=chunk) - The long-term strategy focuses on maintaining a diversified investment portfolio in core markets, seizing growth opportunities in transformative industries such as generative AI, cybersecurity, and robotics[28](index=28&type=chunk) - The Group is confident in the growth potential of its insurance business, focusing on Hong Kong, Macau, mainland China, and international reinsurance markets, expanding services that enhance quality of life, including insurance, retirement planning, and healthcare[28](index=28&type=chunk) [Business Review](index=14&type=section&id=3.4%20Business%20Review) The Group's diverse operations include robust insurance performance, strong investment gains, challenges in healthcare services, steady pension and asset management profits, and active property development - The Group's business is diversified, encompassing insurance, equity trading investments, healthcare services, pension and asset management, and property development investments[29](index=29&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk) [Insurance Business](index=14&type=section&id=3.4.1%20Insurance%20Business) Asia Insurance's H1 2025 profit grew **19.4%** to **HKD 297.4 million**, demonstrating resilience despite an **11.6%** decline in insurance revenue, supported by diversification and digital transformation Asia Insurance H1 2025 Performance | Metric | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Asia Insurance profit | 297,400 | 249,100 | +19.4% | | Asia Insurance revenue | - | - | -11.6% | | Asia Insurance service results | - | - | -3.2% | - Asia Insurance addresses market challenges through geographical and product diversification (Greater Bay Area and Southeast Asia expansion), digital insurance solutions, specialized policies, and cross-border medical and dental products[29](index=29&type=chunk)[30](index=30&type=chunk) - The Group holds a **5%** stake in PICC Life Insurance, further solidifying its strategic position by leveraging PICC Life's nationwide branch network and bank distribution channels[33](index=33&type=chunk) [Other Investment Portfolios](index=16&type=section&id=3.4.2%20Other%20Investment%20Portfolios) H1 2025 saw strong performance in equity trading investments, with gains across value stocks, investment-grade fixed income, and alternative investments, as the Group diversified away from the US market - Equity trading investments performed strongly in H1 2025, achieving gains across value stocks, investment-grade fixed income bonds, and alternative investments[34](index=34&type=chunk) - The Group adjusted its portfolio allocation, expanding its presence in China, Japan, and Europe, reducing over-reliance on the US market, and focusing on investments that generate stable cash flow[34](index=34&type=chunk) [Healthcare Services](index=16&type=section&id=3.4.3%20Healthcare%20Services) The Group's **4.8%** stake in Bumrungrad Hospital saw its share price decline by **30.1%** (THB) and **25.5%** (HKD) in H1, primarily due to a significant drop in international patient admissions - The Group holds a **4.8%** equity interest in Bumrungrad Hospital Public Company Limited, which is its most significant listed equity investment[35](index=35&type=chunk) - Bumrungrad Hospital's share price declined by **30.1%** in THB and **25.5%** in HKD during H1, primarily due to a significant decrease in international patient admissions caused by global economic weakness[35](index=35&type=chunk) [Pension and Asset Management](index=17&type=section&id=3.4.4%20Pension%20and%20Asset%20Management) Joint venture BCT Group maintains a leading position in Hong Kong's MPF market, consistently generating robust profits, while the Group's **10%** stake in BBL Asset Management continues to provide substantial dividends - Joint venture BCT Group and its wholly-owned subsidiary BCT Trust maintain a leading position in Hong Kong's Mandatory Provident Fund services market, consistently generating robust and reliable profits[36](index=36&type=chunk) - The Group holds a **10%** stake in BBL Asset Management Company Limited in Thailand, which is known for its comprehensive services and stable returns, and regularly distributes substantial dividends[36](index=36&type=chunk) [Property Development Investment](index=17&type=section&id=3.4.5%20Property%20Development%20Investment) The Group's Shanghai property projects, including JiaDing and QingPu, are progressing, with new sales planned for Q4, anticipating market relief from government stimulus and housing policy adjustments - The Group's real estate projects in Shanghai account for **3.9%** of total assets[37](index=37&type=chunk) - The JiaDing District property project recorded no additional sales in H1 due to economic headwinds[37](index=37&type=chunk) - The QingPu District project is accelerating completion, with all units planned for delivery by year-end, and the first batch of sales for a new plot scheduled for Q4 this year[37](index=37&type=chunk) - Increased government stimulus, relaxed credit conditions, and loosened housing policies in Shanghai are expected to alleviate pressure on the real estate market[37](index=37&type=chunk) [Equity Investments Exceeding 5% of Total Assets](index=18&type=section&id=3.5%20Equity%20Investments%20Exceeding%205%25%20of%20Total%20Assets) As of June 30, 2025, the Group held two strategic equity investments exceeding **5%** of total assets: PICC Life Insurance (**18.0%**) and Bumrungrad Hospital (**7.7%**) Equity Investments Exceeding 5% of Total Assets | Holding | Number of Shares (thousands) | Investment Cost (HKD millions) | Fair Value as of June 30, 2025 (HKD millions) | % of Total Group Assets | Realized and Unrealized Gains/(Losses) (HKD millions) | Dividends Received (HKD millions) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | PICC Life Insurance | 1,288,055 | 1,522 | 3,005 | 18.0% | 75 | - | | Bumrungrad Hospital | 38,186 | 555 | 1,288 | 7.7% | (437) | 27 | - These two investments (PICC Life Insurance and Bumrungrad Hospital) are primarily long-term strategic holdings[39](index=39&type=chunk) [Capital Structure and Liquidity](index=18&type=section&id=3.6%20Capital%20Structure%20and%20Liquidity) The Group maintains a robust liquidity position with **HKD 2,666,962 thousand** in cash and bank balances as of June 30, 2025, no bank loans, and no net current liabilities - The Group uses funds generated from operations as working capital[40](index=40&type=chunk) Cash and Bank Balances | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Cash and bank balances | 2,666,962 | 2,522,379 | - As of June 30, 2025, and December 31, 2024, the Group had no bank loans[42](index=42&type=chunk) - The Group has no net current liabilities, thus no gearing ratio calculation is required, maintaining a robust liquidity position[42](index=42&type=chunk)[43](index=43&type=chunk) [Pledged Assets and Contingent Liabilities](index=19&type=section&id=3.7%20Pledged%20Assets%20and%20Contingent%20Liabilities) As of June 30, 2025, Asia Insurance pledged assets with a carrying value of **HKD 128,693 thousand** as security for reinsurance contracts, with no other significant contingent liabilities Asia Insurance Pledged Assets | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Carrying value of Asia Insurance pledged assets | 128,693 | 111,541 | - As of June 30, 2025, the Group had no significant contingent liabilities[45](index=45&type=chunk) [Employees and Remuneration Policy](index=19&type=section&id=3.8%20Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group employed **386** staff, with remuneration policies set by the Remuneration Committee, including salaries, bonuses, and comprehensive benefits, with no share option scheme in place Number of Employees | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total number of employees | 386 people | 374 people | - Employee remuneration is determined by individual performance, experience level, and industry practice, including salaries and discretionary bonuses, along with comprehensive medical and retirement benefits and training programs[46](index=46&type=chunk) - Remuneration policies are formulated by the Company's Remuneration Committee and recommended for Board approval, with no share option scheme implemented during the period[46](index=46&type=chunk) [Other Significant Matters](index=20&type=section&id=IV.%20Other%20Significant%20Matters) This section covers share repurchases, corporate governance, review of interim financial statements, dividend declarations, and public announcement details [Share Repurchases](index=20&type=section&id=4.1%20Share%20Repurchases) In H1 2025, the Group's subsidiary repurchased and cancelled **508,000** ordinary shares for approximately **HKD 2,036 thousand** to enhance net asset value and/or earnings per share H1 2025 Share Repurchase Details | Month of Repurchase | Number of Ordinary Shares Repurchased | Total Purchase Price (excluding expenses, HKD thousands) | | :--- | :--- | :--- | | April 2025 | 214,000 | 855 | | May 2025 | 66,000 | 268 | | June 2025 | 228,000 | 913 | | **Total** | **508,000** | **2,036** | - Repurchased shares were cancelled during and after the reporting period, aiming to enhance the Company's net asset value per share and/or earnings per share[47](index=47&type=chunk)[48](index=48&type=chunk) - As of the date of this announcement, the Company's total number of issued shares is **924,142,000** shares[47](index=47&type=chunk) [Corporate Governance](index=21&type=section&id=4.2%20Corporate%20Governance) The Group generally complies with the Corporate Governance Code, though the combined roles of Chairman and CEO deviate from C.2.1, which the Board believes does not impair the balance of power - The Group complies with all applicable provisions of the Corporate Governance Code, but the roles of Chairman and Chief Executive Officer are combined and held by Mr. Chan Chi Sze, a deviation from Code Provision C.2.1[49](index=49&type=chunk) - The Board believes this deviation does not impair the balance of power, as there is an experienced Board providing checks and balances, and this arrangement offers stable and consistent leadership, facilitating effective implementation of long-term business strategies[49](index=49&type=chunk)[50](index=50&type=chunk) [Review of Interim Financial Statements](index=21&type=section&id=4.3%20Review%20of%20Interim%20Financial%20Statements) The Company's Audit Committee has reviewed and recommended the unaudited condensed consolidated interim financial statements for the six months ended June 30, 2025, for Board approval - The Company's Audit Committee has reviewed and recommended the unaudited condensed consolidated interim financial statements for the six months ended June 30, 2025, for Board approval[51](index=51&type=chunk) [Declaration of Interim Dividend](index=22&type=section&id=4.4%20Declaration%20of%20Interim%20Dividend) The Board resolved to declare an interim dividend of **HKD 6.5 cents** per ordinary share for H1 2025, payable in cash around October 6, 2025, to shareholders on record as of September 26, 2025 - The Board resolved to declare an interim dividend of **HKD 6.5 cents** per ordinary share for H1 2025 (2024: **HKD 5.5 cents**)[52](index=52&type=chunk) - The dividend will be paid in cash on or about October 6, 2025, to shareholders whose names appear on the Company's register of members as of September 26, 2025[52](index=52&type=chunk) [Closure of Register of Members](index=22&type=section&id=4.5%20Closure%20of%20Register%20of%20Members) To determine eligibility for the interim dividend, the Company's register of members will be closed from September 24 to September 26, 2025, with all transfer documents due by 4:30 p.m. on September 23, 2025 - The Company's register of members will be closed from Wednesday, September 24, 2025, to Friday, September 26, 2025 (both days inclusive)[53](index=53&type=chunk) - To qualify for the interim dividend, all transfer documents, accompanied by the relevant share certificates, must be lodged with the Company's share registrar in Hong Kong by 4:30 p.m. on Tuesday, September 23, 2025[53](index=53&type=chunk) [Announcement of Results and Report](index=22&type=section&id=4.6%20Announcement%20of%20Results%20and%20Report) This results announcement is available on the Company's and HKEXnews websites, with the 2025 interim report to be published on or about September 9, 2025 - This results announcement is available on the Company's website www.afh.hk and the HKEXnews website www.hkexnews.hk[54](index=54&type=chunk) - The 2025 interim report will be published on these websites on or about Tuesday, September 9, 2025, for shareholders' review[54](index=54&type=chunk)