[Summary](index=1&type=section&id=摘要) This section provides key financial highlights for the first half of 2025, including revenue, gross profit, and profit attributable to owners, along with dividend declarations Key Financial Highlights for H1 2025 | Metric | H1 2025 (RMB Million) | H1 2024 (RMB Million) | YoY Growth/Decrease (%) | | :--- | :--- | :--- | :--- | | Revenue | 3,460.8 | 3,371.0 | 2.7% | | Gross Profit | 645.4 | 716.8 | -10.0% | | Profit | 270.2 | 325.4 | -17.0% | | Profit Attributable to Owners of the Company | 213.8 | 265.1 | -19.4% | - The Board resolved to declare an interim dividend of **HKD 0.0678 per share** for the six months ended June 30, 2025 (H1 2024: HKD 0.0839 per share)[3](index=3&type=chunk) - The Board further resolved to declare a special dividend of **HKD 0.0271 per share** for the six months ended June 30, 2025 (H1 2024: HKD 0.0336 per share) to reward shareholder support[3](index=3&type=chunk) [Financial Statements](index=2&type=section&id=財務報表) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=簡明綜合損益及其他全面收益表) This section presents the unaudited consolidated profit or loss and other comprehensive income of Yongsheng Services Group for the six months ended June 30, 2025, showing a slight increase in revenue but a decrease in gross profit and profit compared to the same period in 2024 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (RMB Thousand) | Metric | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Revenue | 3,460,843 | 3,371,025 | | Cost of Services | (2,815,409) | (2,654,268) | | Gross Profit | 645,434 | 716,757 | | Other Income and Other Gains and Losses | 31,211 | 14,637 | | Administrative Expenses | (175,324) | (193,791) | | Selling Expenses | (52,263) | (47,477) | | Net Expected Credit Loss on Financial Assets | (96,251) | (64,610) | | Profit Before Tax | 348,129 | 417,887 | | Income Tax Expense | (77,971) | (92,528) | | Profit and Total Comprehensive Income for the Period | 270,158 | 325,359 | | Profit Attributable to Owners of the Company | 213,778 | 265,053 | | Basic and Diluted Earnings Per Share (RMB) | 0.12 | 0.15 | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=簡明綜合財務狀況表) This section outlines the assets, liabilities, and equity of Yongsheng Services Group as of June 30, 2025, indicating growth in total assets and equity but a decrease in cash and cash equivalents compared to December 31, 2024 Condensed Consolidated Statement of Financial Position (RMB Thousand) | Metric | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | **Non-Current Assets** | | | | Property, Plant and Equipment | 88,865 | 96,775 | | Investment Properties | 548,715 | 549,125 | | Intangible Assets | 290,320 | 297,557 | | Goodwill | 1,488,171 | 1,488,171 | | Total Non-Current Assets | 3,236,587 | 3,241,675 | | **Current Assets** | | | | Trade and Bills Receivables | 2,861,187 | 2,445,015 | | Cash and Cash Equivalents | 2,241,313 | 2,617,846 | | Total Current Assets | 6,076,502 | 5,974,978 | | **Current Liabilities** | | | | Trade and Bills Payables | 1,518,921 | 1,307,537 | | Contract Liabilities | 732,224 | 940,075 | | Total Current Liabilities | 3,704,140 | 3,752,531 | | **Equity** | | | | Equity Attributable to Owners of the Company | 5,108,359 | 5,001,126 | | Total Equity | 5,522,254 | 5,386,041 | [Notes to the Financial Statements](index=6&type=section&id=財務報表附註) [Basis of Preparation](index=6&type=section&id=1.%20編製基準) The condensed consolidated financial statements are prepared in accordance with HKAS 34 and HKEX Listing Rules, applying consistent accounting policies and methods as the 2024 annual financial statements - The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[12](index=12&type=chunk) - The accounting policies and methods of computation adopted in preparing these condensed consolidated financial statements are consistent with those applied in the Group's financial statements for the year ended December 31, 2024[12](index=12&type=chunk) [Application of Amendments to HKFRSs](index=6&type=section&id=2.%20應用香港財務報告準則會計準則的修訂) During this interim period, the Group first applied amendments to HKFRSs, which did not cause significant changes to its accounting policies, financial position, or performance presentation - During this interim period, the Group first applied amendments to Hong Kong Financial Reporting Standards (HKFRSs) issued by the Hong Kong Institute of Certified Public Accountants, including HKAS 21 (Amendment) Lack of Exchangeability[13](index=13&type=chunk) - The application of these amendments did not result in significant changes to the Group's accounting policies, the presentation of the Group's financial position and performance for the current and prior periods, and/or the disclosures contained in these condensed consolidated financial statements[13](index=13&type=chunk) [Revenue and Segment Information](index=7&type=section&id=3.%20收入及分部資料) The Group's revenue primarily derives from property management, community value-added, value-added services to non-property owners, and city services, all generated within China, with management reviewing the business as a single operating segment - The Group's revenue refers to income from property management services, community value-added services, value-added services to non-property owners, and city services[14](index=14&type=chunk) - The Group's principal operating entities are all located in the People's Republic of China ("China"), thus all revenue is derived from China[14](index=14&type=chunk) Revenue Analysis by Category (RMB Thousand) | Revenue Category | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Property Management Services | 2,668,749 | 2,462,483 | | Community Value-Added Services | 396,403 | 399,398 | | Value-Added Services to Non-Property Owners | 269,609 | 356,613 | | City Services | 125,474 | 149,021 | | Others | 608 | 3,510 | | **Total** | **3,460,843** | **3,371,025** | Revenue Analysis by Timing of Recognition (RMB Thousand) | Timing of Recognition | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | At a point in time | 146,934 | 156,326 | | Over time | 3,313,301 | 3,211,189 | | **Total** | **3,460,235** | **3,367,515** | [Profit Before Tax](index=8&type=section&id=4.%20除稅前溢利) This section details the main expenses affecting profit before tax, including depreciation, amortization, lease expenses, and staff costs, providing insight into profit composition Expense Details Affecting Profit Before Tax (RMB Thousand) | Expense Item | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Depreciation of Property, Plant and Equipment | 18,377 | 26,061 | | Amortization of Intangible Assets | 18,331 | 23,084 | | Expenses related to short-term leases - leased properties | 3,448 | 3,495 | | Expenses related to leases of low-value assets - plant and machinery | 741 | 703 | | Staff Costs (including directors' emoluments) - Wages, salaries and other benefits | 1,041,538 | 1,065,460 | | Staff Costs (including directors' emoluments) - Bonuses | 70,431 | 78,301 | | Staff Costs (including directors' emoluments) - Contributions to retirement schemes | 156,696 | 158,210 | [Income Tax Expense](index=9&type=section&id=5.%20所得稅開支) This section discloses the Group's income tax expense for the six months ended June 30, 2025, comprising PRC corporate income tax and deferred tax Income Tax Expense Details (RMB Thousand) | Tax Category | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | PRC Corporate Income Tax - Current tax | 105,304 | 114,070 | | PRC Corporate Income Tax - Under-provision in prior periods | 478 | 582 | | Deferred Tax - Credited to profit or loss for the period | (27,811) | (22,124) | | **Total Income Tax Expense** | **77,971** | **92,528** | [Dividends](index=9&type=section&id=6.%20股息) This section details the final dividends declared and paid, along with interim and special dividends resolved by the Board, to reward shareholder support - For the year ended December 31, 2024, a final dividend of **HKD 0.0668 per share** was declared and paid to owners of the Company (for the six months ended June 30, 2024: HKD 0.0914 per share)[21](index=21&type=chunk) - The Board has resolved to declare an interim dividend of **HKD 0.0678 per share** and a special dividend of **HKD 0.0271 per share** for the six months ended June 30, 2025[21](index=21&type=chunk) - The interim dividend for the six months ended June 30, 2024, was **HKD 0.0839 per share**, and the special dividend was **HKD 0.0336 per share**[21](index=21&type=chunk) [Earnings Per Share](index=10&type=section&id=7.%20每股盈利) This section provides the basis and specific values for basic and diluted earnings per share attributable to the Company's equity holders, reflecting changes in profitability Earnings Per Share Calculation (RMB Thousand) | Metric | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Profit Attributable to Owners of the Company | 213,778 | 265,053 | | Weighted Average Number of Ordinary Shares (Thousand Shares) | 1,728,554 | 1,737,452 | | **Basic and Diluted Earnings Per Share (RMB)** | **0.12** | **0.15** | [Trade and Bills Receivables](index=10&type=section&id=8.%20貿易應收款項及應收票據) This section discloses the composition and aging analysis of the Group's trade and bills receivables, showing an increase primarily due to slower collection speeds amid a downward market trend Trade and Bills Receivables (RMB Thousand) | Item | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Trade Receivables - Related Parties | 942,710 | 878,789 | | Trade Receivables - Third Parties | 2,343,629 | 1,907,086 | | Bills Receivable | 6,633 | 4,093 | | Less: Provision for Credit Losses | (431,785) | (344,953) | | **Total** | **2,861,187** | **2,445,015** | Aging Analysis of Trade and Bills Receivables (RMB Thousand) | Aging | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Within 1 year | 1,782,741 | 1,589,620 | | 1 to 2 years | 542,219 | 510,796 | | 2 to 3 years | 332,292 | 229,695 | | 3 to 4 years | 136,330 | 76,949 | | 4 to 5 years | 67,605 | 37,955 | | **Total** | **2,861,187** | **2,445,015** | [Trade and Bills Payables](index=11&type=section&id=9.%20貿易應付款項及應付票據) This section discloses the composition and aging analysis of the Group's trade and bills payables, showing an increase primarily due to business expansion Trade and Bills Payables (RMB Thousand) | Item | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Trade Payables - Related Parties | 31,728 | 25,132 | | Trade Payables - Third Parties | 1,469,920 | 1,257,593 | | Bills Payable | 17,273 | 24,812 | | **Total** | **1,518,921** | **1,307,537** | Aging Analysis of Trade and Bills Payables (RMB Thousand) | Aging | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Within 1 year | 1,163,372 | 959,602 | | 1 to 2 years | 156,309 | 180,289 | | 2 to 3 years | 104,797 | 121,511 | | 3 to 4 years | 50,937 | 44,644 | | 4 to 5 years | 43,506 | 1,491 | | **Total** | **1,518,921** | **1,307,537** | [Business Review](index=13&type=section&id=業務回顧) [Overview](index=13&type=section&id=概覽) Yongsheng Services Group is a rapidly growing integrated property management service provider in China, covering 100 cities with approximately 253.7 million sqm under management, serving over 1.12 million households across four business segments - As of June 30, 2025, the Company provides property management services, value-added services, and city services in **100 cities** in mainland China, with a total contracted GFA of approximately **354.9 million sqm** and a total GFA under management of approximately **253.7 million sqm**, serving over **1.12 million households**[26](index=26&type=chunk) - Business covers residential and non-residential properties, including office buildings, shopping malls, schools, hospitals, scenic spots, government buildings, highway service stations, rail transit, and ferry terminals[26](index=26&type=chunk) - The Company has four major business segments: property management services, community value-added services, value-added services to non-property owners, and city services[27](index=27&type=chunk) [Business Development and Scale](index=15&type=section&id=持續高質量發展) The Group adheres to a city-deepening strategy, achieving high-quality growth in contracted and GFA under management through multi-driven approaches, with approximately 7.7% and 7.4% year-on-year increases respectively as of June 30, 2025 - As of June 30, 2025, contracted GFA was approximately **354.9 million sqm** with **1,966 contracted projects**, representing increases of approximately **7.7%** and **13.6%** respectively compared to June 30, 2024[28](index=28&type=chunk) - As of June 30, 2025, GFA under management was approximately **253.7 million sqm** with **1,531 projects under management**, representing increases of **7.4%** and **7.4%** respectively compared to June 30, 2024[28](index=28&type=chunk) Changes in Contracted GFA and GFA Under Management (Thousand Sqm) | Metric | 2025 Contracted GFA | 2025 GFA Under Management | 2024 Contracted GFA | 2024 GFA Under Management | | :--- | :--- | :--- | :--- | :--- | | At beginning of period | 350,935 | 250,642 | 308,265 | 221,408 | | New additions | 20,756 | 18,778 | 37,588 | 24,464 | | Terminations | (16,837) | (15,679) | (16,323) | (9,526) | | At end of period | 354,854 | 253,741 | 329,530 | 236,346 | GFA Under Management and Property Management Service Revenue by Geographical Region (June 30, 2025) | Region | GFA (Thousand Sqm) | Revenue (RMB Thousand) | Revenue Share (%) | | :--- | :--- | :--- | :--- | | Eastern Region | 142,492 | 1,568,920 | 58.8 | | Northern Region | 35,244 | 359,743 | 13.5 | | Central-Southern Region | 37,429 | 337,362 | 12.6 | | Western Region | 28,448 | 302,813 | 11.4 | | Northeastern Region | 10,128 | 99,911 | 3.7 | | **Total** | **253,741** | **2,668,749** | **100.0** | [Market Strategy and Cooperation](index=18&type=section&id=市場策略與合作) Amid a challenging real estate market, the Company maintains market-oriented business with CIFI Group, continuously enhancing independent third-party market development and significantly increasing external expansion contract saturated revenue this period - The Company adheres to the principle of "conducting business with CIFI Group on market-oriented principles," effectively mitigating the negative impact of the severe real estate market[34](index=34&type=chunk) - The Company is committed to developing third-party markets through diversified approaches, primarily targeting regional property developers, existing residential properties, government bidding projects, and industrial parks and office buildings for commercial clients[35](index=35&type=chunk) - During this period, the Company's saturated revenue from external expansion contracts significantly increased year-on-year, achieving its best performance in history[36](index=36&type=chunk) [Strategic Acquisitions](index=19&type=section&id=戰略併購) Strategic acquisitions are a key part of the Company's history, adhering to 'pre-acquisition selection, post-acquisition management' principles to boost market share and expand business, with no acquisitions in H1 2025 - The Company adheres to the principle of "careful selection before investment and refined management after investment" in acquisitions, aiming to increase market share, expand regional business scale, and break industry barriers through strategic acquisitions[37](index=37&type=chunk) - Since 2022, due to external environmental disturbances and internal risk control requirements, the Company has significantly reduced the number of acquisition projects[37](index=37&type=chunk) - In the first half of 2025, the Company did not undertake any project acquisitions, but historical acquisition projects have achieved good integration and met performance targets[37](index=37&type=chunk)[38](index=38&type=chunk) [Property Portfolio Analysis](index=20&type=section&id=物業組合分析) The Group's GFA under management is detailed by property developer type, property type (residential/non-residential), and revenue model (lump-sum/commission), showing increasing contributions from third-party developers and non-residential properties Total GFA Under Management by Property Developer Type (Thousand Sqm) | Developer Type | June 30, 2025 (Thousand Sqm) | 2025 Share (%) | June 30, 2024 (Thousand Sqm) | 2024 Share (%) | | :--- | :--- | :--- | :--- | :--- | | CIFI Group | 58,857 | 23.2 | 60,477 | 25.6 | | Third-Party Property Developers | 194,884 | 76.8 | 175,869 | 74.4 | | **Total** | **253,741** | **100.0** | **236,346** | **100.0** | Total GFA Under Management and Property Management Service Revenue by Property Type | Property Type | 2025 GFA (Thousand Sqm) | 2025 Revenue (RMB Thousand) | 2025 Revenue Share (%) | 2024 GFA (Thousand Sqm) | 2024 Revenue (RMB Thousand) | 2024 Revenue Share (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Residential Properties | 154,368 | 1,334,666 | 50.0 | 151,779 | 1,457,526 | 59.2 | | Non-Residential Properties | 99,373 | 1,334,083 | 50.0 | 84,567 | 1,004,957 | 40.8 | | **Total** | **253,741** | **2,668,749** | **100.0** | **236,346** | **2,462,483** | **100.0** | Total GFA Under Management and Property Management Service Revenue by Revenue Model | Revenue Model | 2025 GFA (Thousand Sqm) | 2025 Revenue (RMB Thousand) | 2025 Revenue Share (%) | 2024 GFA (Thousand Sqm) | 2024 Revenue (RMB Thousand) | 2024 Revenue Share (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Lump-Sum | 251,450 | 2,664,929 | 99.9 | 234,476 | 2,460,204 | 99.9 | | Commission | 2,291 | 3,820 | 0.1 | 1,870 | 2,279 | 0.1 | | **Total** | **253,741** | **2,668,749** | **100.0** | **236,346** | **2,462,483** | **100.0** | [Community Value-Added Services](index=22&type=section&id=社區增值服務) Amid a weak macroeconomy and property market, community value-added service revenue slightly decreased by 0.8% this period, prompting the Company to focus on higher-margin businesses and optimize services for sustainable development - During this period, revenue from community value-added services was approximately **RMB 396.4 million**, a decrease of approximately **0.8%** compared to approximately RMB 399.4 million in the same period of 2024[43](index=43&type=chunk) - The Company is more focused on the development of community value-added services and has exited some low-margin and less sustainable businesses[43](index=43&type=chunk) Community Value-Added Service Revenue Details (RMB Thousand) | Service Category | 2025 (RMB Thousand) | 2025 Share (%) | 2024 (RMB Thousand) | 2024 Share (%) | | :--- | :--- | :--- | :--- | :--- | | Home Life Services | 207,433 | 52.3 | 221,493 | 55.4 | | Parking Space Management and Leasing Services | 72,576 | 18.3 | 76,153 | 19.1 | | Property Brokerage Services | 67,662 | 17.1 | 62,270 | 15.6 | | Value-Added Services for Public Areas | 48,732 | 12.3 | 39,482 | 9.9 | | **Total** | **396,403** | **100.0** | **399,398** | **100.0** | [Value-Added Services to Non-Property Owners](index=25&type=section&id=對非業主的增值服務) Revenue from value-added services to non-property owners significantly decreased by approximately 24.4% this period due to the weak Chinese real estate market, leading the Company to adopt a more cautious strategy and exit lower-expected-return projects - Revenue from value-added services to non-property owners decreased by approximately **24.4%** to approximately **RMB 269.6 million** compared to RMB 356.6 million in the same period of 2024, primarily due to the weak Chinese real estate market[47](index=47&type=chunk) - The Company is more cautious in providing value-added services to non-property owners and has exited some service projects with relatively low expected returns[47](index=47&type=chunk) Value-Added Services to Non-Property Owners Revenue Details (RMB Thousand) | Service Category | 2025 (RMB Thousand) | 2025 Share (%) | 2024 (RMB Thousand) | 2024 Share (%) | | :--- | :--- | :--- | :--- | :--- | | Co-selling Services | 79,097 | 29.3 | 109,069 | 30.6 | | Additional Specialized Customization Services | 130,795 | 48.5 | 151,115 | 42.4 | | Early-stage Planning and Design Consulting Services | 10,943 | 4.1 | 18,615 | 5.2 | | Property Repair Services | 39,404 | 14.6 | 58,636 | 16.4 | | Pre-delivery Inspection Services | 9,370 | 3.5 | 19,178 | 5.4 | | **Total** | **269,609** | **100.0** | **356,613** | **100.0** | [City Services](index=26&type=section&id=城市服務) The Company actively explores city services, enhancing professional capabilities through acquisitions and positioning itself as a municipal service manager, urban asset operator, and future development partner, aiming to be the preferred smart city service brand - The Company has gradually expanded from traditional residential property to non-residential areas and extended to urban service operations, actively exploring and accumulating experience since 2020[49](index=49&type=chunk) - Through the acquisition of Meizhong Environment in 2021, the Company further enhanced its professional capabilities in urban services[49](index=49&type=chunk) - The Company's city services are positioned as: urban municipal service manager (environmental sanitation and greening, renovation of old communities), urban asset operation assistant (management of idle urban spaces and regional resources), and urban future development partner (smart city construction)[49](index=49&type=chunk) [Future Outlook](index=27&type=section&id=未來展望) [Business Expansion Strategy](index=27&type=section&id=高質量發展引領，穩步拓展業務規模與區域佈局) The Company will pursue high-quality development, steadily expanding management area and service types, optimizing market expansion, deepening presence in key regions, and exploring high-potential non-residential sectors while strengthening cooperation with state-owned enterprises - The Company will be guided by high-quality development, steadily expanding its management area and service types, promoting simultaneous growth in scale and density[51](index=51&type=chunk) - Focus on deeply cultivating key regions such as the Yangtze River Delta, Guangdong-Hong Kong-Macao Greater Bay Area, and Beijing-Tianjin-Hebei, which have concentrated populations and active economies, gradually achieving a hundred-city layout and regional intensive operation[51](index=51&type=chunk) - Continuously expand non-residential businesses, with particular attention to high-potential sectors such as commercial complexes, medical and elderly care, logistics parks, and urban public buildings[51](index=51&type=chunk) - Deepen strategic cooperation with state-owned construction platforms, urban investment companies, and high-quality real estate enterprises, exploring integrated models of "build-operate-transfer + operation" and "government + market-oriented" approaches[52](index=52&type=chunk) [Enhancing Value-Added Service Capabilities](index=28&type=section&id=提升多元增值服務能力，打造全鏈條服務體系) The Company will refine pre-delivery consulting, construction inspection, delivery acceptance, and property repair services to enhance overall solution delivery, transitioning from single to full-chain management, and exploring management output and digitalization for smaller property companies - Actively improve service modules such as pre-delivery consulting, construction inspection, delivery acceptance, and property repair management to enhance overall solution delivery capabilities and consolidate market advantages in value-added services to non-property owners[53](index=53&type=chunk) - Promote the transformation of services from single management to full-chain management to achieve greater value co-creation[53](index=53&type=chunk) - Explore providing management output and digital transformation services for small and medium-sized regional property companies, realizing a shift from "property manager" to "property solution provider"[53](index=53&type=chunk) [Deepening Community Value-Added Services](index=29&type=section&id=深耕社區增值服務，打造業主全場景生活生態圈) Community value-added services remain a strategic core, with the Company strengthening business unit models, iterating services around high-frequency, essential owner needs, and building a full-lifecycle service system for 'people, things, and spaces' to achieve sustainable growth through 'deep service, light assets, strong stickiness' - Community value-added services will remain the strategic core of "building a larger and stronger platform, optimizing and thoroughly developing the ecosystem," strengthening the business unit model and optimizing the independent operation of owner service lines[54](index=54&type=chunk) - Focus on continuously iterating services around high-frequency, essential owner needs, such as community housekeeping, space renovation, age-friendly renovation, neighborhood commerce, and community live-streaming sales[54](index=54&type=chunk) - Adopt "deep service, light assets, strong stickiness" as the community operation strategic direction, continuously exploring potential market demand to achieve sustainable growth in service revenue[54](index=54&type=chunk) [Talent and Organizational Development](index=29&type=section&id=人才與組織升級雙驅動，打造強執行力團隊) The Company will build a stable and efficient core team through campus recruitment and external talent acquisition, implement a 'cage-for-birds' strategy for senior management, and promote flat organizational reform to enhance cross-departmental synergy and a 'results-oriented, accountability-driven' culture - Build a stable, efficient, and professional grassroots and middle-level core team through a dual-driven approach of "Yongdongli" campus recruitment and external talent introduction[55](index=55&type=chunk) - Adhere to the "cage-for-birds" strategy for the senior management team, focusing on managers with consistent values, strong execution, and systemic thinking[55](index=55&type=chunk) - Promote flat organizational reform, enhance cross-departmental collaboration efficiency, and strengthen a "results-oriented, accountability-driven" culture to improve overall organizational resilience and response speed[55](index=55&type=chunk) [Technology and Smart Operations](index=30&type=section&id=全面投入技術與智慧運營，打造數字驅動型企業) The Company will increase investment in smart technology R&D, enhance AI, IoT, and big data applications in property management, upgrade internal systems, and establish a 'centralized command center' to transition property management from 'human governance' to 'digital governance' - Continuously increase investment in smart technology companies and R&D, strengthening the integrated application of artificial intelligence, Internet of Things, and big data in property management service scenarios[56](index=56&type=chunk) - Comprehensively upgrade internal management systems, financial data platforms, HR cloud, contract management cloud, and other basic infrastructures to build a data foundation and enhance management efficiency and risk controllability[56](index=56&type=chunk) - Plan to build a "centralized command center" integrating smart central control, data decision-making, and remote collaboration, achieving centralized operation and real-time monitoring of city-level projects[56](index=56&type=chunk) [Financial Analysis](index=31&type=section&id=財務分析) [Revenue Analysis](index=31&type=section&id=收入) The Group's total revenue increased by 2.7% to RMB 3,460.8 million this period, with property management services as the largest contributor at 77.1%, while community value-added and city services saw slight declines, and value-added services to non-property owners significantly decreased due to the weak real estate market - During this period, the Group recorded revenue of approximately **RMB 3,460.8 million**, an increase of approximately **2.7%** compared to approximately RMB 3,371.0 million in the same period of 2024[57](index=57&type=chunk) Revenue by Business Line (RMB Thousand) | Business Line | 2025 (RMB Thousand) | 2025 Share (%) | 2024 (RMB Thousand) | 2024 Share (%) | | :--- | :--- | :--- | :--- | :--- | | Property Management Services | 2,668,749 | 77.1 | 2,462,483 | 73.1 | | Community Value-Added Services | 396,403 | 11.4 | 399,398 | 11.8 | | Value-Added Services to Non-Property Owners | 269,609 | 7.8 | 356,613 | 10.6 | | City Services | 125,474 | 3.6 | 149,021 | 4.4 | | Others | 608 | 0.1 | 3,510 | 0.1 | | **Total Revenue** | **3,460,843** | **100.0** | **3,371,025** | **100.0** | Property Management Service Revenue by Property Developer Type (RMB Thousand) | Developer Type | 2025 (RMB Thousand) | 2025 Share (%) | 2024 (RMB Thousand) | 2024 Share (%) | | :--- | :--- | :--- | :--- | :--- | | CIFI Group | 614,349 | 23.0 | 717,025 | 29.1 | | Third-Party Property Developers | 2,054,400 | 77.0 | 1,745,458 | 70.9 | | **Total Revenue** | **2,668,749** | **100.0** | **2,462,483** | **100.0** | - Revenue from value-added services to non-property owners decreased by approximately **24.4%** to **RMB 269.6 million**, primarily due to the weak Chinese real estate industry[60](index=60&type=chunk) - City services revenue decreased by approximately **15.8%** to **RMB 125.5 million**, mainly due to the Company's strategy of reallocating resources and exiting some low-profit businesses[61](index=61&type=chunk) [Costs and Gross Profit](index=33&type=section&id=服務成本) Service costs increased by 6.1% to RMB 2,815.4 million this period, leading to a 10.0% decrease in gross profit to RMB 645.4 million. The overall gross profit margin fell by 2.7 percentage points to 18.6%, primarily due to declines in property management and value-added services - Cost of services increased by approximately **6.1%** from approximately RMB 2,654.3 million in the same period of 2024 to approximately **RMB 2,815.4 million** in this period, mainly due to the expansion of business scale[62](index=62&type=chunk) - Gross profit decreased by approximately **10.0%** from approximately RMB 716.8 million in the same period of 2024 to approximately **RMB 645.4 million** in this period[63](index=63&type=chunk) Gross Profit Margin by Business Line (%) | Business Line | 2025 (%) | 2024 (%) | | :--- | :--- | :--- | | Property Management Services | 18.5 | 20.5 | | Community Value-Added Services | 28.2 | 37.1 | | Value-Added Services to Non-Property Owners | 8.9 | 12.4 | | City Services | 12.3 | 11.7 | | **Total** | **18.6** | **21.3** | - The Group's gross profit margin was **18.6%**, a decrease of **2.7 percentage points** from **21.3%** in the same period of 2024, mainly due to a decrease in gross profit margins for property management services and value-added services[65](index=65&type=chunk) [Other Income and Other Gains/Losses](index=34&type=section&id=其他收入及其他收益及虧損) This period, the Group's other income and other gains and losses significantly increased by 113.7% to RMB 31.2 million, primarily due to a reduction in fair value losses on financial assets at fair value through profit or loss - The Group's other income and other gains and losses were approximately **RMB 31.2 million**, an increase of approximately **113.7%** compared to approximately RMB 14.6 million in the same period of 2024[66](index=66&type=chunk) - The increase was mainly due to a decrease in fair value losses on financial assets at fair value through profit or loss during this period[66](index=66&type=chunk) [Administrative and Selling Expenses](index=35&type=section&id=行政及銷售開支) The Group's total administrative and selling expenses decreased by approximately 5.7% to RMB 227.6 million this period compared to RMB 241.3 million in the same period of 2024 - The Group's total administrative and selling expenses were approximately **RMB 227.6 million**, a decrease of approximately **5.7%** compared to approximately RMB 241.3 million in the same period of 2024[67](index=67&type=chunk) [Other Expenses](index=35&type=section&id=其他開支) The Group recorded other expenses of approximately RMB 4.5 million this period, a decrease from approximately RMB 6.0 million in the same period of 2024 - The Group recorded other expenses of approximately **RMB 4.5 million**, a decrease from approximately RMB 6.0 million in the same period of 2024[68](index=68&type=chunk) [Profit Before Income Tax Expense](index=35&type=section&id=除所得稅開支前溢利) The Group's profit before income tax expense for this period was approximately RMB 348.1 million, a decrease of approximately 16.7% from RMB 417.9 million in the same period of 2024 - Profit before income tax expense was approximately **RMB 348.1 million**, a decrease of approximately **16.7%** compared to approximately RMB 417.9 million in the same period of 2024[69](index=69&type=chunk) [Income Tax Expense](index=35&type=section&id=所得稅開支) The Group's income tax expense for this period was approximately RMB 78.0 million, representing 22.4% of profit before income tax expense, a slight decrease compared to the same period in 2024 - The Group's income tax expense was approximately **RMB 78.0 million**, accounting for **22.4%** of profit before income tax expense[70](index=70&type=chunk) - In the same period of 2024, income tax expense was approximately RMB 92.5 million, accounting for 22.1% of profit before income tax expense[70](index=70&type=chunk) [Profit Attributable to Owners of the Company](index=35&type=section&id=本公司擁有人應佔溢利) For the six months ended June 30, 2025, profit attributable to owners of the Company was approximately RMB 213.8 million, a decrease of approximately 19.4% from RMB 265.1 million in the same period of 2024 - Profit attributable to owners of the Company was approximately **RMB 213.8 million**, a decrease of approximately **19.4%** compared to approximately RMB 265.1 million in the same period of 2024[71](index=71&type=chunk) [Assets and Liabilities Analysis](index=36&type=section&id=資產負債分析) This section analyzes the Group's asset and liability structure, showing decreases in non-current assets like property, plant and equipment, investment properties, and intangible assets, while goodwill remained stable; trade and bills receivables increased, cash and cash equivalents decreased, and trade and bills payables increased while contract liabilities decreased - Property, plant and equipment were approximately **RMB 88.9 million**, a decrease from approximately RMB 96.8 million as of December 31, 2024[72](index=72&type=chunk) - Investment properties were approximately **RMB 548.7 million**, a decrease from approximately RMB 549.1 million as of December 31, 2024, mainly due to changes in fair value[73](index=73&type=chunk) - Intangible assets were approximately **RMB 290.3 million**, a decrease from approximately RMB 297.6 million as of December 31, 2024, mainly due to amortization of intangible assets during this period[74](index=74&type=chunk) - Goodwill was approximately **RMB 1,488.2 million**, remaining unchanged compared to December 31, 2024[75](index=75&type=chunk) - Trade and bills receivables were approximately **RMB 2,861.2 million**, an increase from approximately RMB 2,445.0 million as of December 31, 2024, mainly due to slower collection speeds amid a downward market trend[76](index=76&type=chunk) - Cash and cash equivalents were approximately **RMB 2,241.3 million**, a decrease from approximately RMB 2,617.8 million as of December 31, 2024[78](index=78&type=chunk) - Trade and bills payables were approximately **RMB 1,518.9 million**, an increase from approximately RMB 1,307.5 million as of December 31, 2024, mainly due to business expansion[79](index=79&type=chunk) - Contract liabilities were approximately **RMB 732.2 million**, a decrease from approximately RMB 940.1 million as of December 31, 2024[81](index=81&type=chunk) [Cash Flow Analysis](index=38&type=section&id=現金流) This period, the Group generated a net cash outflow from operating activities of approximately RMB 229.9 million, primarily due to increased trade receivables; net cash outflow from investing activities was RMB 17.3 million, and net cash outflow from financing activities was approximately RMB 128.3 million - Net cash outflow from operating activities was approximately **RMB 229.9 million** (H1 2024: net inflow of approximately RMB 101.6 million), mainly due to an increase in trade and bills receivables[82](index=82&type=chunk) - Net cash outflow from investing activities was **RMB 17.3 million** (H1 2024: net inflow of approximately RMB 22.4 million), mainly due to a decrease in proceeds from the disposal of financial assets at fair value through profit or loss[82](index=82&type=chunk) - Net cash outflow from financing activities was approximately **RMB 128.3 million** (H1 2024: approximately RMB 204.8 million), mainly due to a decrease in dividend payments[82](index=82&type=chunk) [Gearing Ratio](index=38&type=section&id=資產負債比率及計算基礎) As of June 30, 2025, the Group's gearing ratio increased to 0.85% (December 31, 2024: 0.66%), calculated as the sum of long-term and short-term interest-bearing borrowings divided by total equity - As of June 30, 2025, the Group's gearing ratio was **0.85%** (December 31, 2024: 0.66%)[83](index=83&type=chunk) - The gearing ratio is calculated as the sum of long-term and short-term interest-bearing borrowings divided by total equity[83](index=83&type=chunk) [Capital Structure and Liquidity](index=39&type=section&id=資本架構) The Group's cash and bank balances are held in RMB, HKD, and USD, with all borrowings denominated in RMB at fixed interest rates; both equity attributable to owners of the Company and net current assets increased, maintaining a stable financial position - The Group's cash and bank balances are held in RMB, HKD, and USD, with all borrowings denominated in RMB and at fixed interest rates[84](index=84&type=chunk) - Equity attributable to owners of the Company was approximately **RMB 5,108.4 million** (December 31, 2024: approximately RMB 5,001.1 million)[84](index=84&type=chunk) - The Group's net current assets were approximately **RMB 2,372.4 million** (December 31, 2024: approximately RMB 2,222.4 million)[84](index=84&type=chunk) [Liquidity and Financial Resources](index=39&type=section&id=流動資金及財務資源) The Group's cash is primarily used for working capital, funded mainly by operating cash flow; as of June 30, 2025, borrowings totaled RMB 46.8 million, with certain property, plant, and equipment pledged as collateral - The Group's cash is primarily used for working capital, mainly funded by operating cash flow[85](index=85&type=chunk) - As of June 30, 2025, the Group's borrowings amounted to **RMB 46.8 million** (December 31, 2024: RMB 35.5 million)[85](index=85&type=chunk) - The Group has pledged property, plant and equipment with a carrying amount of approximately **RMB 14.9 million** as collateral for borrowings with a balance of approximately **RMB 13.9 million**[86](index=86&type=chunk) [Contingent Liabilities](index=40&type=section&id=或然負債) As of June 30, 2025, the Group had no significant unquantified contingent liabilities, and legal claims are not expected to materially adversely affect its business, financial position, or operating results - As of June 30, 2025, the Group had no significant unquantified contingent liabilities[87](index=87&type=chunk) - The Group is involved in certain legal claims arising in the ordinary and daily course of business, which, after considering relevant legal advice, are not expected to have any material adverse effect on its business, financial position, or operating results[87](index=87&type=chunk) [Material Investments and Future Plans](index=40&type=section&id=持有的重大投資) As of June 30, 2025, the Group held no material investments, made no significant acquisitions or disposals of subsidiaries, associates, or joint ventures, and had no immediate future plans for material investments or capital assets - As of June 30, 2025, the Group held no material investments[88](index=88&type=chunk) - For the six months ended June 30, 2025, the Group did not have any material acquisitions or disposals of subsidiaries, associates, or joint ventures[89](index=89&type=chunk) - As of June 30, 2025, the Group had no immediate plans for any material investments and capital assets[90](index=90&type=chunk) [Interest Rate Risk](index=41&type=section&id=利率風險) The Group's interest rate risk is limited to market risk from interest rate changes, primarily related to floating-rate bank balances, which management mitigates through monitoring and prudent measures - The Group's interest rate risk is limited to market risk arising from changes in interest rates, which is primarily related to floating-rate bank balances[91](index=91&type=chunk) - Management monitors interest rate risk and takes prudent measures to mitigate it[91](index=91&type=chunk) [Foreign Exchange Risk](index=41&type=section&id=外匯風險) The Group's primary operations are in China, with most revenue and expenses denominated in RMB, while some bank balances are in HKD and USD; no contracts are currently in place to hedge foreign exchange risk, but management continuously monitors and takes prudent measures - The Group's principal operations are conducted in China, and the majority of the Group's revenue and expenses are denominated in RMB[92](index=92&type=chunk) - Certain bank balances are denominated in HKD and USD[92](index=92&type=chunk) - Currently, the Group has not entered into any contracts to hedge its foreign exchange risk, but management will continue to monitor foreign exchange risk and take prudent measures to mitigate it[92](index=92&type=chunk) [Employment and Remuneration Policies](index=41&type=section&id=僱傭及薪酬政策) The Group adopts remuneration policies comparable to industry peers, based on responsibilities, market levels, and performance, and contributes to social welfare schemes; as of June 30, 2025, the Group employed 22,072 staff - The Group adopts remuneration policies similar to its peers, with employee remuneration determined by reference to their responsibilities and current market levels in the region[93](index=93&type=chunk) - Discretionary performance bonuses are paid to employees after evaluation, and the Group participates in various social welfare schemes in accordance with applicable statutory requirements in China[93](index=93&type=chunk) - As of June 30, 2025, the Group employed **22,072 staff** (December 31, 2024: 25,734 staff)[93](index=93&type=chunk) [Other Information](index=41&type=section&id=其他信息) [Use of Proceeds from Initial Public Offering](index=41&type=section&id=首次公開發售籌集所得款項用途) This section reviews the planned and actual use of net proceeds from the Company's IPO; as of June 30, 2025, most funds were utilized as planned, with remaining amounts primarily for developing a one-stop service community platform and 'Yue Life' online service platform - The Company raised net proceeds of approximately **HKD 619.8 million** from its initial public offering and an additional approximately **HKD 63.2 million** from the partial exercise of the over-allotment option on January 4, 2019[94](index=94&type=chunk) - The net proceeds were originally planned for strategic acquisitions and investment opportunities (**55%**), establishing smart communities and utilizing internet technology (**26%**), developing a one-stop service community platform (**9%**), and general corporate purposes (**10%**)[95](index=95&type=chunk) Use of Net Proceeds from Initial Public Offering (HKD Million) | Use | Net Proceeds Percentage | Net Proceeds Allocated (as of Jan 1, 2025) | Amount Utilized During Period (up to June 30, 2025) | Amount Utilized (as of June 30, 2025) | Unutilized Amount | Expected Timeline for Unutilized Net Proceeds | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Strategic acquisitions and investment opportunities | 55% | 375.6 | — | 375.6 | — | Not applicable | | Utilizing latest internet and information technology and establishing smart communities | 26% | 177.6 | — | 177.6 | — | Not applicable | | Developing a one-stop service community platform and our "Yue Life" online service platform | 9% | 61.5 | 17.8 | 48.3 | 13.2 | Before December 31, 2025 | | General corporate purposes and working capital | 10% | 68.3 | — | 68.3 | — | Not applicable | | **Total Net Proceeds** | **100%** | **683.0** | **17.8** | **669.8** | **13.2** | | [2020 Placing and Subscription](index=44&type=section&id=2020年配售事項及2020年認購事項) This section details the completion of the 2020 Placing and Subscription, where the Company received net proceeds of approximately HKD 1,564.5 million, primarily allocated for strategic acquisitions, IT-related development, and working capital/general corporate purposes - The 2020 Placing and 2020 Subscription were completed on June 8, 2020, and June 16, 2020, respectively, with a placing price of **HKD 11.78 per share**[99](index=99&type=chunk) - The Company received net proceeds of approximately **HKD 1,564,476,000** from the 2020 Subscription[100](index=100&type=chunk) Use of Net Proceeds from 2020 Subscription (HKD Million) | Use | Net Proceeds Percentage | Net Proceeds Allocated (HKD Million) | Unutilized Amount (as of Jan 1, 2025) | Amount Utilized During Period (up to June 30, 2025) | Amount Utilized (as of June 30, 2025) | Unutilized Amount (as of June 30, 2025) | Expected Timeline for Unutilized Net Proceeds | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Strategic acquisitions and investment opportunities | 80% | 1,251.6 | — | — | 1,251.6 | — | Not applicable | | Information technology related development | 5% | 78.2 | 36.8 | 0.9 | 42.3 | 35.9 | Before December 31, 2025 | | Working capital and general corporate purposes | 15% | 234.7 | — | — | 234.7 | — | Not applicable | | **Total** | **100%** | **1,564.5** | **36.8** | **0.9** | **1,528.6** | **35.9** | | [Dividend Policy](index=46&type=section&id=中期股息及特別股息) The Board resolved to declare an interim dividend of HKD 0.0678 per share and a special dividend of HKD 0.0271 per share for the six months ended June 30, 2025; share transfer registration will be suspended from September 4 to September 8, 2025, to determine dividend entitlements - The Board has resolved to declare an interim dividend of **HKD 0.0678 per share** and a special dividend of **HKD 0.0271 per share** for the six months ended June 30, 2025, totaling approximately **HKD 117.2 million** and approximately **HKD 46.8 million** respectively[101](index=101&type=chunk) - The interim dividend and special dividend are expected to be paid on **September 15, 2025**, to shareholders whose names appear on the Company's register of members at the close of business on September 8, 2025[101](index=101&type=chunk) - The Company will suspend share transfer registration from **September 4, 2025, to September 8, 2025** (both dates inclusive), to determine dividend entitlements[102](index=102&type=chunk) [Corporate Governance](index=46&type=section&id=遵守企業管治守則) The Company applied good corporate governance principles and complied with the Corporate Governance Code provisions in Appendix C1 Part 2 of the HKEX Listing Rules during this period - The Company has applied the principles of good corporate governance and complied with the code provisions set out in the Corporate Governance Code in Appendix C1 Part 2 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[103](index=103&type=chunk) [Standard Code for Securities Transactions by Directors](index=46&type=section&id=董事進行證券交易的標準守則) The Company adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules, and all directors confirmed compliance during this period after specific inquiry - The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules as the code of conduct for directors' securities transactions[104](index=104&type=chunk) - Following specific inquiries made to all directors, all directors confirmed compliance with the Standard Code during this period[104](index=104&type=chunk) [Audit Committee](index=47&type=section&id=審核委員會及審閱中期業績) The Audit Committee, comprising three independent non-executive directors with Mr. Zhang Weicong as Chairman, reviewed the unaudited interim results for the six months ended June 30, 2025, without disagreement with the Board on auditor recommendations - The Audit Committee comprises three independent non-executive directors, namely Mr. Yu Tiecheng, Mr. Ma Yongyi, and Mr. Zhang Weicong, with Mr. Zhang Weicong serving as Chairman[105](index=105&type=chunk) - The Audit Committee has reviewed the unaudited interim results for the six months ended June 30, 2025, and there were no disagreements with the Board regarding any recommendations provided by the external auditors concerning their selection, appointment, dismissal, or removal[105](index=105&type=chunk) - The Company's auditor, BDO Limited, has reviewed the Group's unaudited condensed consolidated interim financial statements for the six months ended June 30, 2025[105](index=105&type=chunk) [Dealings in Listed Securities](index=47&type=section&id=購買、出售或贖回本公司上市證券) During this period, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, and as of June 30, 2025, the Company held no treasury shares - During this period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities (including the sale or transfer of treasury shares)[106](index=106&type=chunk) - As of June 30, 2025, the Company held no treasury shares[106](index=106&type=chunk) [Events After Reporting Period](index=47&type=section&id=報告期後事項) No discloseable events that could materially impact the Group's operations and financial results occurred after June 30, 2025, up to the date of this announcement - No discloseable events that could materially impact the Group's operations and financial results occurred after June 30, 2025, up to the date of this announcement[107](index=107&type=chunk) [Publication of Interim Results](index=48&type=section&id=刊發中期業績公告及中期報告) 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 published on the HKEX and Company websites in due course - 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 (upon request) in due course[108](index=108&type=chunk) - The interim report will be published on the HKEX website www.hkexnews.hk and the Company's website www.ysservice.com.cn[108](index=108&type=chunk) [Acknowledgements and Board of Directors](index=48&type=section&id=致謝) Chairman Lin Zhong, on behalf of the Board, expressed sincere gratitude to customers, suppliers, shareholders, and all management and staff for their support and contributions during this period, and listed the Board members as of the announcement date - Chairman Lin Zhong, on behalf of the Board, sincerely thanked customers, suppliers, and shareholders for their continuous support to the Group, and also expressed gratitude to all management and staff for their hard work and contributions during this period[109](index=109&type=chunk) - As of the date of this announcement, the executive directors are Mr. Lin Zhong, Mr. Zhou Hongbin, and Mr. Zhou Di; the non-executive directors are Ms. Cui Xiaoqing and Mr. Lin Zhubo; and the independent non-executive directors are Mr. Ma Yongyi, Mr. Yu Tiecheng, and Mr. Zhang Weicong[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份內容而產生或 因倚賴該等內容而引致的任何損失承擔任何責任。 EVERBRIGHT GRAND CHINA ASSETS LIMITED 光大永年有限公司 （於英屬維爾京群島註冊成立並以存續方式 在開曼群島註冊的有限公司） （股份代號：3699） 截至2025年6月30日止六個月中期業績公告 財務摘要 光大永年有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然公佈本公司及 其附屬公司（統稱「本集團」）截至2025年6月30日止六個月的未經審核財務業績， 連同2024年同期的比較數字。中期財務業績雖未經審核，惟本公司已聘請畢馬 威會計師事務所（「畢馬威」）按照香港會計師公會頒佈之香港審閱工作準則第 2410號「由實體之獨立核數師執行之中期財務資料審閱」審閱中期財務業績。畢 馬威就中期財務資料之審閱而出具之報告載於即將寄予本公司股東（「股東」） 之中期報告內。中期財務業績亦已由審核委員會審閱。 – 1 – ‧ 收益約為人民幣24.5百萬元，較2024年增加約人 ...

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。 Pharmaron Beijing Co., Ltd. 康 龍 化 成（ 北 京 ）新 藥 技 術 股 份 有 限 公 司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：3759） 截至2025年6月30日止六個月中期業績公告 財務摘要及要點 | | 截至6月30日止六個月 | | | | --- | --- | --- | --- | | | 2025年 | 2024年 | 變動 | | | 人民幣千元 | 人民幣千元 | % | | 收益 | 6,440,951 | 5,604,463 | 14.9 | | 毛利 | 2,172,201 | 1,848,051 | 17.5 | | 母公司擁有人應佔利潤 | 701,396 | 1,113,403 | (37.0) | | 母公司擁有人應佔非國際財務報告 | | | | | 準則經調整淨利潤 | 755,701 | 690,266 | 9.5 ...

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。 Mulsanne Group Holding Limited 慕尚集團控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：1817） 截至2025年6月30日止六個月之中期業績公告 財務摘要 慕尚集團控股有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然公佈本公司 及其附屬公司（統稱「本集團」）截至2025年6月30日止六個月（「本期間」）之中期業 績，連同2024年同期的比較數字。 1 • 截至2025年6月30日止六個月，自營店的銷售額保持相對穩定為人民幣 448.7百萬元，2024年同期則為人民幣456.5百萬元。其中，GXG自營店的 銷售額亦保持相對穩定。 • 於本期間，通過降本增效措施，本集團加強了費用控制。行政開支和財務 成本佔收入的比重分別下降至8.6%及1.7%，2024年同期則分別為10.3%及 2.7%。 • 截至2025年6月30日止六個月的淨利潤約為人民幣8.9百 ...

[Financial Highlights](index=1&type=section&id=%E8%B4%A2%E5%8A%A1%E6%91%98%E8%A6%81) [Performance Overview](index=1&type=section&id=%E4%B8%9A%E7%BB%A9%E6%A6%82%E8%A7%88) Ten Pao Group Holdings Limited reported unaudited interim results for the six months ended June 30, 2025, with revenue up 19.3% to HKD 2,948.1 million, gross profit up 4.9% to HKD 526.7 million, but gross margin decreased by 2.4 percentage points to 17.9%, while profit attributable to owners increased by 20.4% to HKD 211.7 million, and an interim dividend of 6.2 HK cents per share was declared Financial Summary for the Six Months Ended June 30, 2025 | Indicator | June 30, 2025 (thousand HKD) | June 30, 2024 (thousand HKD) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 2,948,051 | 2,471,011 | +19.3% | | Gross Profit | 526,658 | 501,850 | +4.9% | | Gross Profit Margin | 17.9% | 20.3% | -2.4 percentage points | | Profit Before Income Tax | 253,309 | 207,024 | +22.4% | | Profit Attributable to Owners of the Company | 211,650 | 175,830 | +20.4% | | Basic Earnings Per Share | HKD 0.21 | HKD 0.17 | +HKD 0.04 | - The Board has resolved to declare an interim dividend of **6.2 HK cents per ordinary share** for the six months ended June 30, 2025 (2024: 5.2 HK cents per ordinary share)[3](index=3&type=chunk) [Financial Statements](index=2&type=section&id=%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) [Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=%E7%AE%80%E6%98%8E%E5%90%88%E5%B9%B6%E6%8D%9F%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the company's revenue increased to HKD 2,948.1 million, operating profit significantly grew to HKD 252.3 million, and profit attributable to owners reached HKD 211.7 million Key Data from Condensed Consolidated Statement of Profit or Loss | Indicator | June 30, 2025 (thousand HKD) | June 30, 2024 (thousand HKD) | | :--- | :--- | :--- | | Revenue | 2,948,051 | 2,471,011 | | Cost of Sales | (2,421,393) | (1,969,161) | | Gross Profit | 526,658 | 501,850 | | Other Income | 9,262 | 10,508 | | Other Gains — Net | 28,150 | 28,912 | | Selling Expenses | (68,602) | (84,082) | | Administrative Expenses | (241,849) | (247,222) | | Net Impairment Loss on Financial Assets | (1,275) | (9,855) | | Operating Profit | 252,344 | 200,111 | | Finance Income — Net | 965 | 6,913 | | Profit Before Income Tax | 253,309 | 207,024 | | Income Tax Expense | (41,129) | (31,680) | | Profit for the Period | 212,180 | 175,344 | | Profit Attributable to Owners of the Company | 211,650 | 175,830 | | Non-controlling Interests | 530 | (486) | | Basic and Diluted Earnings Per Share | HKD 0.21 | HKD 0.17 | [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=%E7%AE%80%E6%98%8E%E5%90%88%E5%B9%B6%E7%BB%BC%E5%90%88%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, profit for the period was HKD 212.2 million, with total comprehensive income attributable to owners of HKD 242.5 million, influenced by currency translation differences and fair value changes in equity investments Key Data from Condensed Consolidated Statement of Comprehensive Income | Indicator | June 30, 2025 (thousand HKD) | June 30, 2024 (thousand HKD) | | :--- | :--- | :--- | | Profit for the Period | 212,180 | 175,344 | | Other Comprehensive Income (items that may be reclassified to profit or loss subsequently) | | | | Currency Translation Differences | (19,446) | 30,849 | | Fair Value Changes of Equity Investments at Fair Value Through Other Comprehensive Income | 881 | — | | Total Other Comprehensive Income | (18,565) | 30,849 | | Total Comprehensive Income for the Period | 193,615 | 206,193 | | Total Comprehensive Income for the Period Attributable to Owners of the Company | 193,085 | 206,679 | | Non-controlling Interests | 530 | (486) | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E7%AE%80%E6%98%8E%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of June 30, 2025, total assets were HKD 5,121.5 million, total liabilities HKD 3,077.6 million, and total equity HKD 2,043.9 million, showing an increase in non-current assets and a decrease in current assets and liabilities Key Data from Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | **Assets** | | | | Total Non-current Assets | 1,892,023 | 1,678,624 | | Total Current Assets | 3,229,451 | 3,731,027 | | **Total Assets** | **5,121,474** | **5,409,651** | | **Equity** | | | | Share Capital and Reserves Attributable to Owners of the Company | 2,047,846 | 1,855,720 | | Non-controlling Interests | (3,943) | (4,125) | | **Total Equity** | **2,043,903** | **1,851,595** | | **Liabilities** | | | | Total Non-current Liabilities | 186,500 | 177,235 | | Total Current Liabilities | 2,891,071 | 3,380,821 | | **Total Liabilities** | **3,077,571** | **3,558,056** | | **Total Equity and Liabilities** | **5,121,474** | **5,409,651** | [Notes to the Financial Statements](index=6&type=section&id=%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%99%84%E6%B3%A8) [General Information](index=6&type=section&id=%E4%B8%80%E8%88%AC%E8%B5%84%E6%96%99) Ten Pao Group Holdings Limited, incorporated in the Cayman Islands and listed on HKEX since 2015, primarily engages in consumer switching power supplies and industrial smart chargers and controllers in China, with Mr. Hung Kwong Yee as controlling shareholder - Ten Pao Group Holdings Limited was incorporated in the Cayman Islands on January 27, 2015, and listed on The Stock Exchange of Hong Kong Limited on December 11, 2015[9](index=9&type=chunk)[10](index=10&type=chunk) - The Group is principally engaged in the development, manufacture, and sale of consumer switching power supplies and industrial smart chargers and controllers in the PRC, with Mr. Hung Kwong Yee as the controlling shareholder[9](index=9&type=chunk) [Basis of Preparation](index=6&type=section&id=%E7%BC%96%E5%88%B6%E5%9F%BA%E5%87%86) These interim financial information are prepared in accordance with HKAS 34 "Interim Financial Reporting" issued by the HKICPA and should be read in conjunction with the 2024 annual financial statements - These interim financial information are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants and should be read in conjunction with the annual financial statements for the year ended December 31, 2024[13](index=13&type=chunk) [Accounting Policies](index=6&type=section&id=%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96) Accounting policies applied are consistent with the 2024 financial statements, except for HKFRS amendments effective January 1, 2025, which directors believe have no significant impact on the Group's financial performance or position - The accounting policies applied are consistent with those adopted in the 2024 financial statements, except for the adoption of amendments to Hong Kong Financial Reporting Standards effective for financial years beginning on January 1, 2025[14](index=14&type=chunk) - The Directors believe that the application of new and revised standards and interpretations of HKFRS during the period has no significant impact on the Group's financial performance and position for the current and prior periods, nor on the information disclosed in these interim financial information[15](index=15&type=chunk) Standards Issued But Not Yet Applied by the Group | Standard | Description | Effective Date | | :--- | :--- | :--- | | Annual Improvements to HKFRS Accounting Standards | Annual Improvements | January 1, 2026 | | Amendments to HKFRS 9 and HKFRS 7 | Classification and Measurement of Financial Instruments | January 1, 2026 | | HKFRS 18 | Presentation and Disclosure in Financial Statements | January 1, 2027 | | HKFRS 19 | Non-publicly Accountable Subsidiaries: Disclosures | January 1, 2027 | | HK(IFRIC)-Int 5 | Classification by a Borrower of a Term Loan that Contains a Repayment on Demand Clause | January 1, 2027 | | Amendments to HKAS 28 and HKFRS 10 | Sale or Contribution of Assets between an Investor and its Associate or Joint Venture | To be determined | [Estimates](index=7&type=section&id=%E4%BC%B0%E8%AE%A1) The preparation of interim financial information involves management judgments, estimates, and assumptions consistent with those applied in the 2024 financial statements, with actual results potentially differing - The preparation of interim financial information requires management to make judgments, estimates, and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income, and expenses, and actual results may differ[18](index=18&type=chunk) - In preparing these interim financial information, the significant judgments made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those applied in the 2024 financial statements[18](index=18&type=chunk) [Financial Risk Management](index=7&type=section&id=%E8%B4%A2%E5%8A%A1%E9%A3%8E%E9%99%A9%E7%AE%A1%E7%90%86) The Group faces market risks (foreign exchange, price, interest rate), credit risk, and liquidity risk, with no changes in risk management functions or policies since December 31, 2024, and no significant liquidity risk - The Group is exposed to various financial risks from its business activities: market risk (including foreign exchange risk, price risk, cash flow, and fair value interest rate risk), credit risk, and liquidity risk[19](index=19&type=chunk) - There have been no changes in the risk management function or risk management policies since December 31, 2024[19](index=19&type=chunk) - The Directors believe that the Group does not have any significant liquidity risk[20](index=20&type=chunk) [Segment Information](index=8&type=section&id=%E5%88%86%E9%83%A8%E8%B5%84%E6%96%99) The Group's business is divided into six reportable segments: smart chargers and controllers, telecommunications, new energy business, media and entertainment, lighting, and others, with smart chargers and controllers having the highest revenue and new energy business showing significant growth for the six months ended June 30, 2025 - The Group's electronic charging products are classified into six reportable segments: (i) smart chargers and controllers; (ii) telecommunications; (iii) new energy business; (iv) media and entertainment; (v) lighting; and (vi) others[21](index=21&type=chunk) Segment Revenue and Results (for the Six Months Ended June 30) | Segment | 2025 Revenue (thousand HKD) | 2025 Segment Results (thousand HKD) | 2024 Revenue (thousand HKD) | 2024 Segment Results (thousand HKD) | | :--- | :--- | :--- | :--- | :--- | | Smart Chargers and Controllers | 1,170,307 | 279,599 | 989,123 | 264,363 | | Telecommunications | 663,505 | 85,430 | 639,117 | 92,967 | | New Energy Business | 562,244 | 44,969 | 420,911 | 48,207 | | Media and Entertainment | 221,977 | 41,713 | 168,547 | 34,876 | | Lighting | 207,137 | 52,361 | 146,748 | 35,146 | | Others | 122,881 | 22,586 | 106,565 | 26,291 | | **Total** | **2,948,051** | **526,658** | **2,471,011** | **501,850** | Non-current Assets by Country (excluding financial instruments and deferred income tax assets) | Country | June 30, 2025 (thousand HKD) | June 30, 2024 (thousand HKD) | | :--- | :--- | :--- | | PRC (excluding Hong Kong) | 1,370,416 | 1,217,535 | | Vietnam | 146,525 | 127,906 | | Hungary | 64,966 | 61,999 | | Hong Kong | 88,829 | 9,818 | | Others | 33,820 | 11,714 | | **Total** | **1,704,556** | **1,428,972** | [Other Income and Other Gains — Net](index=10&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%20%E2%80%94%20%E5%87%80%E9%A2%9D) For the six months ended June 30, 2025, other income was HKD 9.3 million and other net gains were HKD 28.2 million, primarily from net exchange gains and government grants Other Income and Other Gains — Net | Item | June 30, 2025 (thousand HKD) | June 30, 2024 (thousand HKD) | | :--- | :--- | :--- | | **Other Income** | | | | Sale of Scraps | 4,867 | 3,586 | | Product Standard Modification Fees | — | 2,444 | | Sale of Raw Materials, Samples, and Molds | 2,209 | 2,423 | | Safety Fee Income | 729 | 707 | | Others | 1,457 | 1,348 | | **Subtotal** | **9,262** | **10,508** | | **Other Gains — Net** | | | | Fair Value Changes of Derivative Financial Instruments | 1,336 | (648) | | Fair Value Changes of Financial Assets at Fair Value Through Profit or Loss | 3,188 | 2,419 | | Fair Value Changes of Investment Properties | (300) | (500) | | Net Exchange Gains | 15,565 | 10,751 | | Government Grants | 7,920 | 17,929 | | Gains on Disposal of Property, Plant and Equipment | 2,816 | 187 | | Others | (2,375) | (1,226) | | **Subtotal** | **28,150** | **28,912** | [Expenses by Nature](index=10&type=section&id=%E6%8C%89%E6%80%A7%E8%B4%A8%E5%88%92%E5%88%86%E7%9A%84%E5%BC%80%E6%94%AF) For the six months ended June 30, 2025, total expenses amounted to HKD 2,731.8 million, with raw materials and consumables being the largest component and employee benefit expenses also increasing Expenses by Nature (for the Six Months Ended June 30) | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Raw Materials and Consumables Used (excluding R&D expenses) | 1,923,878 | 1,741,599 | | Employee Benefit Expenses (excluding R&D expenses) | 394,462 | 326,802 | | Changes in Inventories of Finished Goods and Work-in-progress | 111,136 | (70,274) | | Depreciation, Amortisation and Impairment Expenses (excluding R&D expenses) | 72,091 | 89,538 | | R&D Expenses — Employee Benefit Expenses | 76,792 | 68,902 | | R&D Expenses — Raw Materials, Consumables, and Others Used | 23,424 | 15,873 | | R&D Expenses — Depreciation and Amortisation | 7,946 | 8,642 | | Provision for Impairment of Inventories | 58 | 2,607 | | Auditor's Remuneration | 1,678 | 1,618 | | Other Expenses | 120,379 | 115,158 | | **Total Cost of Sales, Selling Expenses, and Administrative Expenses** | **2,731,844** | **2,300,465** | [Finance Income and Expenses](index=11&type=section&id=%E8%B4%A2%E5%8A%A1%E6%94%B6%E5%85%A5%E5%8F%8A%E5%BC%80%E6%94%AF) For the six months ended June 30, 2025, net finance income was HKD 965 thousand, a significant decrease from HKD 6,913 thousand in the prior year, mainly due to a substantial increase in interest expense on bank borrowings Finance Income and Expenses (for the Six Months Ended June 30) | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | **Finance Income:** | | | | Interest Income | 8,024 | 9,035 | | **Finance Expenses:** | | | | Interest on Bank Borrowings | (6,255) | (1,349) | | Interest on Lease Liabilities | (804) | (773) | | **Finance Expenses Expensed** | **(7,059)** | **(2,122)** | | **Finance Income — Net** | **965** | **6,913** | [Income Tax Expense](index=11&type=section&id=%E6%89%80%E5%BE%97%E7%A8%8E%E5%BC%80%E6%94%AF) For the six months ended June 30, 2025, income tax expense was HKD 41.1 million, primarily comprising PRC corporate income tax, Hong Kong profits tax, and Vietnam corporate income tax, with some PRC subsidiaries enjoying a preferential 15% tax rate as "High-New Technology Enterprises" Income Tax Expense (for the Six Months Ended June 30) | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | **Current Income Tax** | | | | — PRC Corporate Income Tax | 20,792 | 15,573 | | — Hong Kong Profits Tax | 15,399 | 7,815 | | — Vietnam Corporate Income Tax | 7,356 | 4,263 | | **Subtotal** | **43,547** | **27,651** | | Deferred Income Tax | (2,418) | 4,029 | | **Total** | **41,129** | **31,680** | - Ten Pao Electronic (Huizhou) Co, Ltd, Dazhou Ten Pao Jinhu Electronic Co, Ltd, Shaanxi Huifeng Electronic Technology Co, Ltd, Huizhou Ten Pao Chuangneng Technology Co, Ltd, and Ten Pao Precision Technology (Huizhou) Co, Ltd are recognized as "High-New Technology Enterprises" and enjoy a preferential corporate income tax rate of **15%**[27](index=27&type=chunk) [Earnings Per Share](index=12&type=section&id=%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) For the six months ended June 30, 2025, basic earnings per share increased to 21 HK cents from 17 HK cents in the prior year, with diluted earnings per share being similar to basic earnings per share Earnings Per Share (for the Six Months Ended June 30) | Indicator | 2025 (thousand HKD/thousand shares/HK cents) | 2024 (thousand HKD/thousand shares/HK cents) | | :--- | :--- | :--- | | Profit Attributable to Owners of the Company | 211,650 | 175,830 | | Weighted Average Number of Shares in Issue | 1,030,389 | 1,030,389 | | Basic Earnings Per Share | 21 | 17 | - As of June 30, 2025, diluted earnings per share were similar to basic earnings per share (June 30, 2024: same)[29](index=29&type=chunk) [Dividends](index=12&type=section&id=%E8%82%A1%E6%81%AF) The Board resolved to declare an interim dividend of 6.2 HK cents per ordinary share for the six months ended June 30, 2025, totaling HKD 63.9 million, an increase from the prior year - The Board resolved on August 21, 2025, to declare an interim dividend of **6.2 HK cents per ordinary share** of the Company for the six months ended June 30, 2025 (2024 interim: 5.2 HK cents per ordinary share), amounting to **HKD 63.9 million** (2024 interim: HKD 53.6 million)[30](index=30&type=chunk) - On June 13, 2025, the final dividend of **6 HK cents per ordinary share** of the Company for the year ended December 31, 2024 (amounting to HKD 61,823,000) was approved by the then shareholders[30](index=30&type=chunk) [Property, Plant and Equipment](index=13&type=section&id=%E7%89%A9%E4%B8%9A%E3%80%81%E5%8E%82%E6%88%BF%E5%8F%8A%E8%AE%BE%E5%A4%87) As of June 30, 2025, the net book value of property, plant and equipment increased to HKD 1,370.6 million from December 31, 2024, primarily due to additions and currency translation differences Changes in Net Book Value of Property, Plant and Equipment | Item | June 30, 2025 (thousand HKD) | | :--- | :--- | | Net Book Value at January 1, 2024 | 1,253,639 | | Additions | 165,456 | | Disposals | (6,491) | | Currency Translation Differences | 26,048 | | Depreciation/Amortisation | (68,061) | | **Net Book Value at June 30, 2025** | **1,370,591** | [Inventories](index=13&type=section&id=%E5%AD%98%E8%B4%A7) As of June 30, 2025, net inventories decreased to HKD 851.2 million from December 31, 2024, mainly due to reductions in raw materials, work-in-progress, and finished goods, while impairment provisions slightly increased Composition of Inventories | Item | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Raw Materials | 327,152 | 400,376 | | Work-in-progress | 177,626 | 191,874 | | Finished Goods | 440,675 | 537,563 | | **Total** | **945,453** | **1,129,813** | | Less: Impairment Provision | (94,216) | (92,872) | | **Net Value** | **851,237** | **1,036,941** | Changes in Impairment Provision for Inventories | Item | June 30, 2025 (thousand HKD) | June 30, 2024 (thousand HKD) | | :--- | :--- | :--- | | At January 1 | 92,872 | 108,499 | | Currency Translation Differences | 1,286 | (480) | | Net Write-back of Provision | 58 | 2,607 | | **At June 30** | **94,216** | **110,626** | [Trade and Other Receivables](index=14&type=section&id=%E8%B4%B8%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E5%BA%94%E6%94%B6%E6%AC%BE%E9%A1%B9) As of June 30, 2025, total trade and other receivables amounted to HKD 1,680.5 million, with net trade receivables at HKD 1,522.2 million, generally subject to 30 to 90-day credit terms, and some receivables pledged for bank borrowings Composition of Trade and Other Receivables | Item | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Trade Receivables — Net | 1,522,219 | 1,452,038 | | VAT Provision | 90,805 | 64,509 | | Prepayments | 24,500 | 20,093 | | Bills Receivable | 18,302 | 97 | | Cash in Transit | 9,420 | 8,837 | | Export Tax Refund Receivable | 6,720 | 16,185 | | Deposits | 3,978 | 8,087 | | Employee Benefits | 3,682 | 3,306 | | Advances to Employees | 745 | 560 | | Others | 143 | 3,635 | | **Total** | **1,680,514** | **1,577,347** | Ageing Analysis of Trade Receivables | Ageing | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Less than 3 months | 1,213,616 | 1,088,281 | | More than 3 months but not exceeding 1 year | 314,610 | 367,100 | | More than 1 year | 1,391 | 3,616 | | **Total** | **1,529,617** | **1,458,997** | - As of June 30, 2025, the Group's bank borrowings were secured by trade and other receivables with a carrying amount of **HKD 83,257,000** (December 31, 2024: HKD 332,282,000)[34](index=34&type=chunk) [Share Capital and Share Premium](index=15&type=section&id=%E8%82%A1%E6%9C%AC%E5%8F%8A%E8%82%A1%E4%BB%BD%E6%BA%A2%E4%BB%B7) As of June 30, 2025, issued and fully paid ordinary share capital was HKD 10.3 million and share premium was HKD 162.4 million, remaining unchanged from December 31, 2024 Issued and Fully Paid Ordinary Shares | Item | Number of Shares | Share Capital (thousand HKD) | Share Premium (thousand HKD) | Total (thousand HKD) | | :--- | :--- | :--- | :--- | :--- | | At January 1, 2024, December 31, 2024, January 1, 2025, and June 30, 2025 | 1,030,388,965 | 10,304 | 162,426 | 172,730 | [Borrowings](index=15&type=section&id=%E5%80%9F%E8%B4%B7) As of June 30, 2025, total borrowings were HKD 610.8 million, all current bank borrowings, a decrease from HKD 650.7 million on December 31, 2024, mainly due to net repayment, with some bank borrowings secured by restricted bank deposits and trade and other receivables Total Borrowings | Item | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | **Non-current** | | | | Bank Borrowings — Secured | — | 3,002 | | Less: Current Portion of Non-current Borrowings | — | (3,002) | | **Subtotal** | **—** | **—** | | **Current** | | | | Bank Borrowings — Secured | 505,840 | 606,262 | | Bank Borrowings — Unsecured | 104,936 | 41,477 | | **Total Short-term Bank Borrowings** | **610,776** | **647,739** | | Current Portion of Non-current Borrowings | — | 3,002 | | **Total Borrowings** | **610,776** | **650,741** | Changes in Borrowings (for the Six Months Ended June 30) | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Opening Balance at January 1 | 650,741 | 654,899 | | Proceeds from Borrowings | 583,747 | 140,879 | | Repayment of Borrowings | (632,592) | (584,370) | | Currency Translation Differences | 8,880 | (3,464) | | **Closing Balance at June 30** | **610,776** | **207,944** | Assets Pledged for Bank Borrowings | Pledged Assets | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Restricted Bank Deposits | 385,853 | 584,942 | | Trade and Other Receivables | 83,257 | 332,282 | | Investment Properties | — | 6,300 | | **Total** | **469,110** | **923,524** | [Trade and Other Payables](index=16&type=section&id=%E8%B4%B8%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E5%BA%94%E4%BB%98%E6%AC%BE%E9%A1%B9) As of June 30, 2025, total trade and other payables amounted to HKD 2,105.2 million, a decrease from December 31, 2024, primarily due to reductions in trade payables and bills payable Composition of Trade and Other Payables | Item | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Trade Payables | 1,297,736 | 1,613,613 | | Bills Payable | 322,436 | 496,672 | | Accrued Wages and Employee Benefits | 302,001 | 346,398 | | Accrued Expenses and Other Payables | 129,932 | 130,414 | | Payables Related to Share-based Transactions with Subsidiaries | 24,916 | 29,911 | | Endorsed Bills Receivable Not Derecognized and Not Yet Due | 18,031 | — | | Other Taxes Payable | 10,195 | 6,649 | | **Total** | **2,105,247** | **2,623,657** | Ageing Analysis of Trade Payables | Ageing | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Less than 3 months | 1,212,210 | 1,267,909 | | More than 3 months but not exceeding 1 year | 77,538 | 335,907 | | More than 1 year | 7,988 | 9,797 | | **Total** | **1,297,736** | **1,613,613** | [Management Discussion and Analysis](index=17&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) [Overview](index=17&type=section&id=%E6%A6%82%E8%A7%88) Ten Pao Group, a smart power solution provider, successfully navigated global inflation and geopolitical conflicts in H1 2025 through diversified market presence, production bases, and R&D centers, achieving 19.3% revenue growth to HKD 2,948.1 million and 20.4% profit growth to HKD 211.7 million, while maintaining a stable dividend policy - Ten Pao, as a leading smart power solution provider, has consistently received multiple awards for excellent quality and delivery from Global Fortune 500 clients for many years, and has been recognized as a national provincial green factory and awarded for excellence in new industrialization[37](index=37&type=chunk) - Facing global inflation, geopolitical conflicts, and trade barriers, the Group successfully implemented flexible resource allocation and agile market response through diversified markets, decentralized production bases, and R&D centers[38](index=38&type=chunk) - The Group seized opportunities in AI smart manufacturing and energy development, expanding its new energy and high-end smart controller businesses, enhancing its product portfolio and customer base, thereby forming a business safety barrier[38](index=38&type=chunk) Key Financial Performance for H1 2025 | Indicator | Amount (HKD) | Year-on-Year Growth | | :--- | :--- | :--- | | Revenue | 2,948.1 million | 19.3% | | Gross Profit | 526.7 million | - | | Gross Profit Margin | 17.9% | Decreased | | Profit Before Tax | 253.3 million | - | | Profit Attributable to Owners of the Company | 211.7 million | 20.4% | | Basic Earnings Per Share | 21 HK cents | Increased | - The Group is committed to maintaining a long-term stable dividend policy, declaring an interim dividend of **6.2 HK cents per ordinary share** for the current period (2024: 5.2 HK cents), with a payout ratio of approximately **30.2%**[40](index=40&type=chunk) [Market and Business Review](index=18&type=section&id=%E5%B8%82%E5%9C%BA%E5%8F%8A%E4%B8%9A%E5%8A%A1%E5%9B%9E%E9%A1%BE) Amid global market uncertainties, the Group maintained operational and financial stability through its "high quality, strong R&D, smart manufacturing, and global presence" strategy, expanding industrial power, new energy, and consumer power businesses, with global production layout entering a harvest phase and active positioning in AI computing power and smart controller markets - The Group steadfastly executed its comprehensive strategy of "high quality, strong R&D, smart manufacturing, and global presence" to drive diversified development of innovative products and customers with high flexibility, maintain stable raw material supply, advance order fulfillment and delivery, and implement strict internal cost control, thereby maintaining operational and financial stability[41](index=41&type=chunk) - The industrial power segment's revenue increased by **18.3%** year-on-year, accounting for **39.7%** of total revenue, as the Group continued to research and develop fast charging technologies and high-tech digital power products, entering the new track of high-power computing power power supplies[42](index=42&type=chunk) - The Group successfully expanded its AI computing power power product matrix, launching new high-power power products of **3,500W** for servers, widely applicable in high-performance computing scenarios such as cloud computing data centers, supercomputing/HPC systems, and enterprise-grade servers[43](index=43&type=chunk) - To seize opportunities in the smart controller market, the Group actively engaged with Global Fortune 500 clients to expand demand for high-end smart controller orders, with new production bases in Vietnam and Mexico equipped with smart controller production facilities[45](index=45&type=chunk) - New energy business revenue increased by **33.6%** year-on-year, rising to **19.1%** of total revenue, primarily driven by energy storage and automotive electronics products, as the Group adhered to three strategies: "energy storage systems, automotive electronics applications, and core charging modules for electric vehicles," and participated in Thailand's "oil-to-electric" two-wheel electric vehicle battery swap cabinet and fast charging pile projects[47](index=47&type=chunk) - The Group's global production layout is entering a harvest phase, with production bases located in Huizhou and Dazhou in China, Hungary, Vietnam, and Mexico, and the new Chuangneng Industrial Park production lines in Huizhou are expected to be fully operational in H2 2025, while new factory production lines in Vietnam and Mexico primarily focus on smart controllers[48](index=48&type=chunk) - The Group integrates AI application technology into its production equipment and develops core components of AI hardware—smart controllers and charging solutions—to fully connect the AI industry chain, enhance production capacity and efficiency, and provide high-end technical support to downstream customers[50](index=50&type=chunk) [Outlook](index=20&type=section&id=%E5%B1%95%E6%9C%9B) For H2 2025, facing global economic slowdown and trade policy changes, the Group will deepen its core new energy and smart controller businesses, align with "new quality productive forces," focus on energy storage, EV charging, and AI computing power, and enhance R&D, global production, and supply chain management for sustainable growth - Looking ahead to H2 2025, the Group will maintain close communication with customers, respond to global market changes with a flexible global production and sales network, and seize global emission reduction and intelligentization trends to develop competitive smart products, continuously deepening and expanding its core new energy and smart controller businesses[51](index=51&type=chunk) - The Group will actively respond to the national call for developing "new quality productive forces," expand into the green new energy sector, focusing on cutting-edge areas such as energy storage system solutions, electric vehicle charging equipment, green mobility, and AI computing power power supplies, which will become new engines driving Ten Pao's future growth[52](index=52&type=chunk) - The Group will continue to strengthen R&D investment, focusing on developing smart products and energy storage systems, high-end smart controllers, all-digital power products, and high-power and high-stability power products, and actively expand into the Southeast Asian new energy market, participating in Thailand's "oil-to-electric" two-wheel electric vehicle battery swap cabinet and fast charging pile projects[54](index=54&type=chunk) - The global smart controller market size is projected to exceed **USD 100 billion by 2033**, and the Group will continue to empower growth across various industries, making it a key development direction[55](index=55&type=chunk) - Global AI computing power equipment power supply market sales are expected to reach **USD 805 million by 2031**, with a compound annual growth rate of **7.5%**, and the Group will continue to strengthen the development and market promotion of AI computing power power supply related product lines, and evaluate cooperation opportunities with leading global technology companies[57](index=57&type=chunk) - The Group will continue to strengthen its global product and production layout, strategically expand overseas production bases, actively promote the application of intelligent manufacturing and high-efficiency technologies, and enhance cooperation with top international clients to expand into high-value-added business areas[59](index=59&type=chunk) [Liquidity and Financial Resources](index=23&type=section&id=%E6%B5%81%E5%8A%A8%E8%B5%84%E9%87%91%E5%8F%8A%E8%B4%A2%E5%8A%A1%E8%B5%84%E6%BA%90) As of June 30, 2025, the Group maintained a sound financial position with net current assets of HKD 338.4 million, a current ratio of 1.12 times, and a gearing ratio of 29.9%, with net cash from operating activities at HKD 99.7 million, net cash used in investing activities at HKD 230.4 million, and net cash from financing activities at HKD 3.1 million Liquidity and Financial Ratios | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Net Current Assets | HKD 338.4 million | HKD 350.2 million | | Current Ratio | 1.12 times | 1.10 times | | Gearing Ratio | 29.9% | 35.1% | Cash Flow (for the Six Months Ended June 30) | Item | 2025 (million HKD) | 2024 (million HKD) | | :--- | :--- | :--- | | Net Cash from Operating Activities | 99.7 | 332.9 | | Net Cash Used in Investing Activities | (230.4) | (183.9) | | Net Cash from Financing Activities | 3.1 | (66.9) | Debt Maturity Profile | Maturity Period | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Within 1 year | 610,776 | 650,741 | | 1 to 2 years | — | — | | 2 to 5 years | — | — | | **Total** | **610,776** | **650,741** | [Financial Risk Management](index=24&type=section&id=%E8%B4%A2%E5%8A%A1%E9%A3%8E%E9%99%A9%E7%AE%A1%E7%90%86_MD%26A) The Group manages foreign exchange risk, cash flow and fair value interest rate risk, and credit risk through regular review of net foreign exchange exposure, maintaining sufficient cash, and implementing strict customer credit assessment policies [Foreign Exchange Risk](index=24&type=section&id=%E5%A4%96%E6%B1%87%E9%A3%8E%E9%99%A9) The Group primarily faces exchange rate fluctuation risks of HKD and USD against RMB, as most revenue and receivables are denominated in USD and HKD, while cost of sales is mainly in RMB, with no foreign exchange forward contracts entered into during the period - The Group is exposed to currency exchange rate fluctuation risks of HKD and USD against RMB due to its export sales to overseas countries, with revenue denominated in USD and HKD accounting for approximately **48.7%** of its total revenue (2024: 50.1%)[65](index=65&type=chunk) - The Group manages its foreign exchange risk by regularly reviewing its net foreign exchange exposure and may enter into foreign exchange forward contracts when necessary, but no such contracts were entered into during the current period[65](index=65&type=chunk) [Cash Flow and Fair Value Interest Rate Risk](index=24&type=section&id=%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E5%8F%8A%E5%85%AC%E5%85%81%E5%80%BC%E5%88%A9%E7%8E%87%E9%A3%8E%E9%99%A9) The Group's income and operating cash flows are largely unaffected by market interest rate changes due to no significant interest-bearing assets (excluding bank balances and cash), with bank borrowings primarily denominated in HKD, USD, and RMB - The Group's income and operating cash flows are largely unaffected by changes in market interest rates, as the Group has no significant interest-bearing assets (other than bank balances and cash)[66](index=66&type=chunk) - As of June 30, 2025, the Group's bank borrowings amounted to **HKD 610.8 million** (December 31, 2024: HKD 650.7 million), primarily denominated in HKD, USD, and RMB[66](index=66&type=chunk) [Credit Risk](index=24&type=section&id=%E4%BF%A1%E8%B4%B7%E9%A3%8E%E9%99%A9) The Group has no significant concentration of credit risk, managing it by extending credit to customers with good credit records, regularly assessing financial standing, and requiring prepayments, while bank balances and restricted deposits are held with reputable banks - The Group has no significant concentration of credit risk, having implemented policies to ensure that credit terms are only granted to customers with good credit records, and regularly assesses their creditworthiness based on financial standing, past experience, and other factors[67](index=67&type=chunk) - For customers not granted credit terms, the Group generally requires them to pay deposits and/or advances before product delivery[67](index=67&type=chunk) - All of the Group's bank balances, time deposits, and restricted bank deposits are held with reputable and large banks and financial institutions in the PRC and Hong Kong that do not have significant credit risk[68](index=68&type=chunk) [Liquidity Risk](index=25&type=section&id=%E6%B5%81%E5%8A%A8%E8%B5%84%E9%87%91%E9%A3%8E%E9%99%A9) Management closely monitors liquidity, maintaining sufficient cash and cash equivalents to cover working capital and mitigate cash flow fluctuations - The Group's management closely monitors its liquidity position, maintaining cash and cash equivalents at levels deemed sufficient to cover working capital and mitigate the impact of cash flow fluctuations[69](index=69&type=chunk) [Contingent Liabilities](index=25&type=section&id=%E6%88%96%E7%84%B6%E8%B4%9F%E5%80%BA) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities (December 31, 2024: nil)[70](index=70&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=25&type=section&id=%E8%B4%AD%E4%B9%B0%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B5%8E%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E8%AF%81%E5%88%B8) During the period, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - During the period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[71](index=71&type=chunk) [Human Resources](index=25&type=section&id=%E4%BA%BA%E5%8A%9B%E8%B5%84%E6%BA%90) As of June 30, 2025, the Group employed approximately 8,000 full-time employees, with total labor costs of HKD 471.3 million, and has adopted new share option and subsidiary share award schemes to attract, develop, and retain talent - As of June 30, 2025, the Group employed approximately **8,000 full-time employees**, with total labor costs for the period amounting to **HKD 471.3 million**, compared to HKD 395.7 million for the corresponding period last year[72](index=72&type=chunk) - The Company conditionally adopted a share option scheme ("2025 Share Option Scheme") on June 13, 2025, aiming to provide incentives, rewards, or encouragement to eligible participants through the grant of share options[73](index=73&type=chunk) - The board of directors of Ten Pao Electronic (Huizhou) Co, Ltd, a subsidiary of the Company, has resolved to propose the adoption of the Ten Pao Electronic (Huizhou) Share Award Scheme, aiming to establish a long-term incentive mechanism to attract and retain talent[73](index=73&type=chunk) [Other Information](index=26&type=section&id=%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) [Corporate Governance Practices](index=26&type=section&id=%E4%BC%81%E4%B8%9A%E7%AE%A1%E6%B2%BB%E5%B8%B8%E8%A7%84) The Company is committed to good corporate governance, having established audit, nomination, and remuneration committees, and has complied with the Corporate Governance Code during the period, except for the combined roles of Chairman and CEO, which the Board believes is in the Company's best interest - The Board has established an Audit Committee, a Nomination Committee, and a Remuneration Committee, and formulated their respective terms of reference, in compliance with the requirements of the Corporate Governance Code set out in Appendix C1 of the Listing Rules[74](index=74&type=chunk) - The Company has complied with the applicable code provisions of the Corporate Governance Code throughout the period, save for code provision C.2.1 (separation of the roles of chairman and chief executive)[74](index=74&type=chunk) - The Board believes that combining the roles of Chairman and Chief Executive Officer allows for strong and consistent leadership, which facilitates the Group's implementation and execution of business strategies, serving the best interests of the Company[75](index=75&type=chunk) [Changes in Composition of Nomination Committee](index=26&type=section&id=%E6%8F%90%E5%90%8D%E5%A7%94%E5%91%98%E4%BC%9A%E7%BB%84%E6%88%90%E5%8F%98%E5%8A%A8) Ms. Hung Shui Lam, an executive director, was appointed as a member of the Nomination Committee effective August 21, 2025, resulting in a six-member committee comprising two executive and four independent non-executive directors - Ms. Hung Shui Lam, an executive director of the Company, has been appointed as a member of the Nomination Committee, effective August 21, 2025[76](index=76&type=chunk) - Following the aforementioned change, the Nomination Committee will comprise **six members**, including two executive directors (namely Mr. Hung, Chairman, and Ms. Hung Shui Lam) and four independent non-executive directors[76](index=76&type=chunk) [Standard Code for Securities Transactions](index=27&type=section&id=%E8%AF%81%E5%88%B8%E4%BA%A4%E6%98%93%E6%A0%87%E5%87%86%E5%AE%88%E5%88%99) The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as its code of conduct for directors and relevant employees, with all directors confirming compliance 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 its code of conduct for directors' dealings in the Company's securities[77](index=77&type=chunk) - All Directors confirmed that they have complied with the Model Code throughout the period and up to the date of this announcement, and the Company is not aware of any non-compliance with the Model Code by relevant employees[77](index=77&type=chunk) [Interim Dividend](index=27&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board has resolved to declare an interim dividend of 6.2 HK cents per ordinary share for the period (2024: 5.2 HK cents), expected to be paid on October 27, 2025, to shareholders on record as of October 10, 2025 - The Board has resolved to declare an interim dividend of **6.2 HK cents per ordinary share** (2024: 5.2 HK cents per ordinary share) to shareholders for the current period[78](index=78&type=chunk) - The interim dividend is expected to be paid on Monday, October 27, 2025, to all shareholders whose names appear on the register of members of the Company on Friday, October 10, 2025[78](index=78&type=chunk) [Significant Events After Reporting Period](index=27&type=section&id=%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%90%8E%E9%87%8D%E5%A4%A7%E4%BA%8B%E4%BB%B6) The Directors are unaware of any discloseable significant events occurring after June 30, 2025, and up to the announcement date - The Directors are not aware of any significant events requiring disclosure that have occurred subsequent to June 30, 2025, and up to the date of this announcement[79](index=79&type=chunk) [Closure of Register of Members](index=27&type=section&id=%E6%9A%82%E5%81%9C%E5%8A%9E%E7%90%86%E8%82%A1%E4%BB%BD%E8%BF%87%E6%88%B7%E7%99%BB%E8%AE%B0%E6%89%8B) The Company's register of members will be closed from October 8 to October 10, 2025, to determine shareholders entitled to the interim dividend, with the ex-dividend date being October 3, 2025 - The Company's register of members will be closed from Wednesday, October 8, 2025, to Friday, October 10, 2025 (both days inclusive), for the purpose of determining shareholders entitled to the interim dividend for the current period[80](index=80&type=chunk) - The ex-dividend date will be Friday, October 3, 2025[80](index=80&type=chunk) [Audit Committee and Review of Financial Statements](index=27&type=section&id=%E5%AE%A1%E6%A0%B8%E5%A7%94%E5%91%98%E4%BC%9A%E5%8F%8A%E5%AE%A1%E9%98%85%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) The Audit Committee, comprising four independent non-executive directors, has reviewed the unaudited interim condensed consolidated financial statements for the period and deemed the Group's risk management and internal control systems effective - The Audit Committee comprises all **four independent non-executive directors**[81](index=81&type=chunk) - The Audit Committee has reviewed the Company's unaudited interim condensed consolidated financial statements for the period with the Company's management, and has also reviewed the effectiveness of the Group's risk management and internal control systems, deeming them effective[81](index=81&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=28&type=section&id=%E5%88%8A%E7%99%BB%E4%B8%AD%E6%9C%9F%E4%B8%9A%E7%BB%A9%E5%85%AC%E5%91%8A%E5%8F%8A%E4%B8%AD%E6%9C%9F%E6%8A%A5%E5%91%8A) The interim results announcement has been published on the HKEX and Company websites, and the interim report, containing all information required by the Listing Rules, will be issued to shareholders and published on both websites in due course - This interim results announcement is published on the HKEX website (www.hkexnews.hk) and the Company's website (www.tenpao.com)[82](index=82&type=chunk) - The interim report for the period, containing all information required by the Listing Rules, will be dispatched to shareholders and published on the respective websites of the HKEX and the Company in due course[82](index=82&type=chunk)

[Financial Summary](index=1&type=section&id=Financial%20Summary) For the six months ended June 30, 2025, the company's revenue grew by 31.5% year-over-year to $94.5 million, but basic earnings per share decreased by 9.5% due to increased listing expenses; adjusted net profit, excluding non-recurring items, rose by 13.9% to $18.9 million, indicating core business profitability growth [Financial Summary](index=1&type=section&id=Financial%20Summary) For the six months ended June 30, 2025, the company's revenue grew by 31.5% year-over-year to $94.5 million, but basic earnings per share decreased by 9.5% due to increased listing expenses; adjusted net profit, excluding non-recurring items, rose by 13.9% to $18.9 million, indicating core business profitability growth Key Financial Indicators for H1 2025 | Indicator | For the Six Months Ended June 30, 2025 | Year-over-Year Change | | :--- | :--- | :--- | | Revenue | $94.5 million | +31.5% | | Basic Earnings Per Share | $0.067 | -9.5% | | Adjusted Net Profit | $18.9 million | +13.9% | | Adjusted Basic Earnings Per Share | $0.084 | +7.7% | - During the reporting period, listing expenses significantly increased from **$0.9 million** in the prior year to **$4.0 million**, a primary factor in the decline of basic earnings per share[4](index=4&type=chunk) [Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's interim condensed consolidated financial statements, including the statement of profit or loss, comprehensive income, and financial position, reflecting revenue growth, changes in profitability, and a strengthened balance sheet due to listing proceeds [Interim Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) During the reporting period, the company's revenue increased by 31.5% to $94.46 million, and gross profit rose by 15.3% to $31.83 million; however, due to a significant increase in administrative expenses, profit before tax slightly decreased by 1.7% to $18.62 million, and profit for the period declined by 4.8% to $14.98 million Interim Condensed Consolidated Statement of Profit or Loss (USD Thousands) | Item | For the Six Months Ended June 30, 2025 | For the Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Revenue | 94,464 | 71,839 | | Gross Profit | 31,830 | 27,604 | | Profit Before Tax | 18,621 | 18,934 | | Profit for the Period | 14,976 | 15,734 | | Basic Earnings Per Share (US Cents) | 6.7 | 7.4 | [Interim Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the reporting period, the company's total comprehensive income, including other comprehensive income from foreign currency translation, was $14.98 million, slightly lower than $15.73 million in the prior year Interim Condensed Consolidated Statement of Comprehensive Income (USD Thousands) | Item | For the Six Months Ended June 30, 2025 | For the Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Profit for the Period | 14,976 | 15,734 | | Other Comprehensive Income for the Period | 7 | (6) | | Total Comprehensive Income for the Period | 14,983 | 15,728 | [Interim Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets significantly increased to $198 million, primarily due to listing proceeds boosting cash and cash equivalents to $164 million; net assets also grew from $48.09 million to $163 million, reflecting a substantially strengthened financial position Key Balance Sheet Items (USD Thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and Cash Equivalents | 164,117 | 54,818 | | Total Assets | 198,422 | 74,136 | | **Liabilities** | | | | Total Current Liabilities | 34,495 | 25,396 | | **Equity** | | | | Net Assets | 163,078 | 48,089 | | Total Equity | 163,078 | 48,089 | [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 operating segment data, dividends, and changes in share capital, offering further insights into the company's financial structure and performance [3. Operating Segment Information](index=7&type=section&id=3.%20Operating%20Segment%20Information) The company manages and evaluates its business as a single operating segment (beverage and snack sales), with Mainland China being its primary market, contributing the vast majority of revenue and achieving significant growth during the reporting period - Management views the Group's business as a single operating segment for resource allocation and performance assessment[14](index=14&type=chunk) Revenue by Geographical Region (USD Thousands) | Region | For the Six Months Ended June 30, 2025 | For the Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Mainland China | 87,511 | 67,424 | | Hong Kong | 3,997 | 2,496 | | Taiwan | 1,334 | 578 | | Other | 1,622 | 1,341 | | **Total** | **94,464** | **71,839** | [6. Dividends](index=9&type=section&id=6.%20Dividends) During the reporting period, company shareholders approved and paid multiple dividends, including a 2024 final dividend of $28 million and 2025 interim dividends totaling $14 million Dividends Declared and Paid During the Reporting Period (USD Thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | 2024 Final Dividend | 28,000 | - | | 2023 Final Dividend | - | 8,500 | | 2025 Interim Dividend | 12,000 | - | | 2024 Interim Dividend | - | 3,000 | | Dividends Paid from Retained Earnings | 2,000 | - | [12. Share Capital](index=12&type=section&id=12.%20Share%20Capital) During the reporting period, the company's share capital underwent significant changes, including a 1-for-200 share split and a successful listing on the Hong Kong Stock Exchange on June 30, 2025, issuing approximately 41.67 million new ordinary shares and raising approximately $147.6 million in total proceeds - The company effected a **1-for-200 share split** on June 17, 2025[37](index=37&type=chunk) - On June 30, 2025, the company listed on the Main Board of the Hong Kong Stock Exchange, issuing **41,666,800 new shares** and raising approximately **$147.6 million** in total proceeds, with related transaction costs of approximately **$5.6 million**[38](index=38&type=chunk) [Management Discussion and Analysis](index=16&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an in-depth analysis of the company's operational and financial performance, covering business overview, review of operations, future outlook, and detailed financial review, offering management's perspective on key drivers and strategies [1. Business Overview](index=16&type=section&id=1.%20Business%20Overview) The company is a Thailand-based ready-to-drink beverage and ready-to-eat food company with core brands `if` and `Innococo`, a leader in introducing natural coconut water to Mainland China, expanding across Asia and other global markets, and launched six new products during the reporting period to meet market demand - The company's core brands are `if` (focused on natural healthy Thai beverages) and `Innococo` (a healthy alternative to traditional sports drinks)[51](index=51&type=chunk) - Mainland China is the company's largest market, with products also popular in Asian markets such as Hong Kong, Singapore, and Taiwan[50](index=50&type=chunk) - During the reporting period, the company launched **six new products**, including the `if` tea series, Thai street drinks, and a limited-edition coconut water to celebrate the 50th anniversary of China-Thailand diplomatic relations[51](index=51&type=chunk) [2. Business Review](index=17&type=section&id=2.%20Business%20Review) In H1 2025, total revenue grew by 31.5% year-over-year to $94.5 million, primarily driven by coconut water products which saw a 33.3% revenue increase and accounted for 96.9% of total revenue; the `if` brand was a key growth driver, increasing its revenue contribution from 82.4% to 89.0%, but gross margin declined by 4.7 percentage points to 33.7% due to adverse Thai Baht appreciation Revenue by Brand (USD Thousands) | Brand | H1 2025 | % of Total | H1 2024 | % of Total | | :--- | :--- | :--- | :--- | :--- | | if | 84,083 | 89.0% | 59,174 | 82.4% | | Innococo | 10,381 | 11.0% | 12,594 | 17.5% | | **Total** | **94,464** | **100%** | **71,839** | **100%** | Revenue by Product (USD Thousands) | Product | H1 2025 | % of Total | H1 2024 | % of Total | | :--- | :--- | :--- | :--- | :--- | | Coconut Water | 91,506 | 96.9% | 68,664 | 95.6% | | Other Coconut Water Related | 701 | 0.7% | 1,352 | 1.9% | | Other Beverages | 2,257 | 2.4% | 1,436 | 2.0% | | Plant-Based Snacks | – | – | 387 | 0.5% | | **Total** | **94,464** | **100%** | **71,839** | **100%** | - Gross margin decreased from **38.4% to 33.7%**, primarily due to adverse foreign exchange impacts from the appreciation of the Thai Baht against the US Dollar during the reporting period[56](index=56&type=chunk) - Adjusted net profit (excluding listing expenses) was **$18.9 million**, a **13.9% year-over-year increase**, demonstrating robust core business profitability[56](index=56&type=chunk) [3. Outlook](index=19&type=section&id=3.%20Outlook) The company maintains an optimistic outlook on future market prospects, anticipating continued high growth in the ready-to-drink soft beverage market, especially the coconut water segment, across Greater China and globally; to capitalize on opportunities, five key business strategies include strengthening procurement, enhancing innovation, consolidating the China market while expanding overseas, reinforcing brand building, and pursuing strategic collaborations and M&A - The Greater China coconut water beverage market is projected to grow from **$1.09 billion** in 2024 to **$2.65 billion** by 2029, at a **CAGR of 19.4%**[61](index=61&type=chunk) - The company's future growth strategies include strengthening procurement capabilities, enhancing innovation, consolidating the China market while expanding overseas (Australia, Americas, Southeast Asia), continuous investment in brand building, and pursuing strategic collaborations and mergers and acquisitions[62](index=62&type=chunk) [4. Financial Review](index=20&type=section&id=4.%20Financial%20Review) This section details the company's H1 financial performance, with revenue up 31.5% driven by Mainland China, gross profit up 15.3% but gross margin down due to exchange rates, sales and distribution expenses increasing with revenue, marketing expenses decreasing due to timing, and administrative expenses surging 122.9% due to listing fees, which was the primary cause of net profit decline; listing proceeds significantly boosted cash and bank balances to $164 million [A. Revenue](index=20&type=section&id=A.%20Revenue) Revenue for the reporting period increased by 31.5% year-over-year to $94.5 million, primarily driven by continued penetration in the Mainland China market and increased coconut water sales; revenue in Mainland China, Hong Kong, Taiwan, and Australia grew by 29.8%, 60.1%, 130.8%, and 215.3% respectively - Revenue increased from **$71.8 million to $94.5 million**, a **31.5% year-over-year growth**, primarily attributable to increased coconut water sales in Mainland China[63](index=63&type=chunk) [B. Gross Profit and Gross Margin](index=20&type=section&id=B.%20Gross%20Profit%20and%20Gross%20Margin) Gross profit increased by 15.3% year-over-year to $31.8 million; however, gross margin decreased from 38.4% in the prior year to 33.7%, primarily due to adverse foreign exchange movements from the appreciation of the Thai Baht against the US Dollar - Gross margin decreased by **4.7 percentage points to 33.7%**, primarily due to adverse currency movements from the appreciation of the Thai Baht against the US Dollar[64](index=64&type=chunk) [E. Administrative Expenses](index=21&type=section&id=E.%20Administrative%20Expenses) Administrative expenses surged by 122.9% year-over-year to $6.1 million, primarily due to a $4.0 million increase in non-recurring professional fees related to the listing on the Hong Kong Stock Exchange - Administrative expenses increased from **$2.7 million to $6.1 million**, primarily attributable to a **$4.0 million** increase in non-recurring professional fees related to the listing on the Stock Exchange during the reporting period[68](index=68&type=chunk) [I. Profit for the Period](index=22&type=section&id=I.%20Profit%20for%20the%20Period) Affected by a significant increase in listing-related professional fees, profit for the period decreased by 4.8% from $15.7 million to $15.0 million, with net margin falling from 21.9% to 15.9%; excluding listing fees, adjusted net profit was $18.9 million, a 13.9% year-over-year increase - Profit for the period decreased by **4.8% year-over-year to $15.0 million**, primarily due to increased listing-related professional fees[72](index=72&type=chunk) [J. Cash and Bank Balances](index=22&type=section&id=J.%20Cash%20and%20Bank%20Balances) As of the end of the reporting period, cash and bank balances were $164.1 million, a significant 199.4% increase from $54.8 million at the end of 2024, primarily due to $147.6 million in proceeds from the listing and issuance of ordinary shares, partially offset by $42.0 million in dividends paid - Cash and bank balances increased from **$54.8 million to $164.1 million**, primarily due to net proceeds from the listing[73](index=73&type=chunk) [6. Cash Flows](index=23&type=section&id=6.%20Cash%20Flows) During the reporting period, net cash inflow from operating activities was $9.6 million, a year-over-year decrease; net cash outflow from investing activities was $0.3 million; net cash inflow from financing activities surged to $100 million, primarily from listing proceeds, net of dividend payments and issuance costs; ultimately, cash and cash equivalents at period-end significantly increased to $164 million Cash Flow Statement Summary (USD Thousands) | Item | For the Six Months Ended June 30, 2025 | For the Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 9,596 | 15,345 | | Net Cash Flow Used in Investing Activities | (263) | (10) | | Net Cash Flow from Financing Activities | 99,951 | 5,188 | | **Net Increase in Cash and Cash Equivalents** | **109,284** | **20,523** | - Net cash inflow from financing activities primarily stemmed from **$147.6 million** in proceeds from the issuance of ordinary shares, offset by **$42.0 million** in dividends paid and **$5.6 million** in transaction costs[86](index=86&type=chunk) [Use of Listing Proceeds](index=27&type=section&id=Use%20of%20Listing%20Proceeds) The company listed on June 30, 2025, raising net proceeds of approximately $138 million, all of which remained unutilized as of the reporting period end; funds are planned for strengthening warehousing and distribution capabilities (30%), brand building (22%), market expansion (13%), product development (5%), strategic alliances and acquisitions (20%), and working capital (10%) Planned Use of Listing Proceeds (USD Millions) | Purpose | % of Total | Planned Amount | Amount Utilized | Unutilized Amount | | :--- | :--- | :--- | :--- | :--- | | Strengthening Warehousing and Distribution Capabilities | 30 | 41.4 | 0 | 41.4 | | Brand Building | 22 | 30.4 | 0 | 30.4 | | Market Consolidation and Expansion | 13 | 17.9 | 0 | 17.9 | | Enhancing Product Development Capabilities | 5 | 6.9 | 0 | 6.9 | | Strategic Alliances and Acquisitions | 20 | 27.6 | 0 | 27.6 | | Working Capital and Other | 10 | 13.8 | 0 | 13.8 | | **Total** | **100** | **138.0** | **0** | **138.0** |

[Company Information and Performance Summary](index=1&type=section&id=Company%20Information%20and%20Performance%20Summary) This section provides an overview of the company and its financial performance for the first half of 2025 [Company Profile](index=1&type=section&id=PETRO-KING%20OILFIELD%20SERVICES%20LIMITED) PETRO-KING OILFIELD SERVICES LIMITED, a BVI-registered company (stock code 2178), presents its unaudited consolidated results for the six months ended June 30, 2025 - Company name: PETRO-KING OILFIELD SERVICES LIMITED, stock code: **2178**[2](index=2&type=chunk) [First Half Performance Overview](index=1&type=section&id=Business%20Review) In H1 2025, the Group's revenue significantly decreased by 32.9% to 111.3 million HKD, resulting in a net loss of 11.5 million HKD and no interim dividend Key Financial Performance for H1 2025 | Metric | 2025 H1 (million HKD) | 2024 H1 (million HKD) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 111.3 | 165.9 | -32.9% | | Net Loss | (11.5) | (0.4) | Increased by 11.1 million HKD | | Loss attributable to owners of the Company | (11.8) | (0.4) | Increased by 11.4 million HKD | | Basic loss per share (HK cents) | (0.68) | (0.02) | Increased by 0.66 HK cents | - The Board resolved not to declare an interim dividend for H1 2025 (H1 2024: nil)[4](index=4&type=chunk) [Business Review and Operational Analysis](index=2&type=section&id=Business%20Review%20and%20Operational%20Analysis) This section analyzes the Group's operational performance across geographical markets, service types, and customer segments, alongside human resources, R&D, and future outlook [Geographical Market Analysis](index=2&type=section&id=Geographical%20Market%20Analysis) In H1 2025, overall revenue decreased by 32.9%, with China market revenue down 26.4% and overseas market revenue sharply declining by 86.7% H1 2025 Geographical Market Revenue Comparison | Market | 2025 H1 (million HKD) | 2024 H1 (million HKD) | Approximate % Change (%) | % of Total Revenue H1 2025 (%) | % of Total Revenue H1 2024 (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | China Market | 108.9 | 147.9 | -26.4 | 97.8 | 89.2 | | Overseas Market | 2.4 | 18.0 | -86.7 | 2.2 | 10.8 | | **Total** | **111.3** | **165.9** | **-32.9** | **100** | **100** | - China market revenue decreased primarily due to reduced production enhancement services in Southwest China[5](index=5&type=chunk) - Overseas market revenue significantly decreased due to the expiration of a Middle East supervision service contract in H1 2024 with no H1 2025 revenue, and reduced drilling services in Uzbekistan and integrated project management services in the Middle East[6](index=6&type=chunk)[9](index=9&type=chunk)[10](index=10&type=chunk) [China Market](index=2&type=section&id=China%20Market) China market revenue decreased by 26.4% year-on-year, with Southwest China seeing the largest decline due to reduced production enhancement services, while Northwest China grew by 17.0% from increased drilling services H1 2025 China Market Revenue Comparison by Region | Region | 2025 H1 (million HKD) | 2024 H1 (million HKD) | Approximate % Change (%) | % of Total China Market Revenue H1 2025 (%) | % of Total China Market Revenue H1 2024 (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Southwest China | 73.4 | 113.7 | -35.4 | 67.4 | 76.9 | | North China | 21.0 | 21.9 | -4.1 | 19.3 | 14.8 | | Northwest China | 11.0 | 9.4 | 17.0 | 10.1 | 6.3 | | Other China Regions | 3.5 | 2.9 | 20.7 | 3.2 | 2.0 | | **Total** | **108.9** | **147.9** | **-26.4** | **100** | **100** | - Southwest China revenue decreased primarily due to reduced production enhancement services[7](index=7&type=chunk) - Northwest China revenue increased mainly due to increased drilling services, partially offset by reduced production enhancement and completion services[8](index=8&type=chunk) [Overseas Market](index=4&type=section&id=Overseas%20Market) Overseas market revenue sharply declined by 86.7% year-on-year, primarily due to the expiration of a Middle East supervision service contract and reduced drilling services in Uzbekistan H1 2025 Overseas Market Revenue Comparison by Region | Region | 2025 H1 (million HKD) | 2024 H1 (million HKD) | Approximate % Change (%) | % of Total Overseas Market Revenue H1 2025 (%) | % of Total Overseas Market Revenue H1 2024 (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Middle East | 1.4 | 14.2 | -90.1 | 58.3 | 78.9 | | Other | 1.0 | 3.8 | -73.7 | 41.7 | 21.1 | | **Total** | **2.4** | **18.0** | **-86.7** | **100** | **100** | - Middle East revenue decreased primarily due to the expiration of a supervision service contract in H1 2024 with no H1 2025 revenue, and reduced integrated project management services[9](index=9&type=chunk) - Other overseas regions' revenue decreased mainly due to reduced drilling services provided in Uzbekistan[10](index=10&type=chunk) [Analysis by Service Type](index=5&type=section&id=Analysis%20by%20Service%20Type) In H1 2025, oilfield project tools and services revenue decreased by 28.6%, and consulting services revenue sharply declined by 67.6%, while drilling services saw a 32.1% increase H1 2025 Revenue Comparison by Service Type | Service Type | 2025 H1 (million HKD) | 2024 H1 (million HKD) | Approximate % Change (%) | % of Total Revenue H1 2025 (%) | % of Total Revenue H1 2024 (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Oilfield Project Tools and Services | 105.4 | 147.7 | -28.6 | 94.7 | 89.0 | | Consulting Services | 5.9 | 18.2 | -67.6 | 5.3 | 11.0 | | **Total** | **111.3** | **165.9** | **-32.9** | **100** | **100** | [Oilfield Project Tools and Services](index=5&type=section&id=Oilfield%20Project%20Tools%20and%20Services) Revenue from oilfield project tools and services decreased by 28.6% year-on-year, primarily due to reduced production enhancement services in Southwest China - Oilfield project tools and services revenue decreased primarily due to reduced production enhancement services provided in Southwest China[11](index=11&type=chunk) [Consulting Services](index=5&type=section&id=Consulting%20Services) Consulting services revenue sharply decreased by 67.6% year-on-year, mainly due to the expiration of a Middle East supervision service contract and reduced integrated project management services - Consulting services revenue decreased primarily due to the expiration of a supervision service contract in H1 2024 with no H1 2025 revenue, and reduced integrated project management services in the Middle East[12](index=12&type=chunk) [Production Enhancement Services](index=6&type=section&id=Production%20Enhancement) Production enhancement services revenue decreased by 31.4% to 93.7 million HKD, primarily due to reduced services in Southwest China H1 2025 Oilfield Project Tools and Services Sub-segment Revenue | Service Type | 2025 H1 (million HKD) | 2024 H1 (million HKD) | Approximate % Change (%) | % of Total Oilfield Project Tools and Services Revenue H1 2025 (%) | % of Total Oilfield Project Tools and Services Revenue H1 2024 (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Production Enhancement | 93.7 | 136.6 | -31.4 | 88.9 | 92.5 | | Drilling | 10.7 | 8.1 | 32.1 | 10.2 | 5.5 | | Completion | 1.0 | 3.0 | -66.7 | 0.9 | 2.0 | | **Total** | **105.4** | **147.7** | **-28.6** | **100** | **100** | - Production enhancement revenue decreased primarily due to reduced production enhancement services provided in Southwest China[13](index=13&type=chunk) [Drilling Services](index=6&type=section&id=Drilling) Drilling services revenue increased by 32.1% to 10.7 million HKD, mainly driven by increased services in Northwest China, partially offset by reductions in Uzbekistan - Drilling revenue increased primarily due to increased drilling services provided in Northwest China, partially offset by reduced drilling services provided in Uzbekistan[14](index=14&type=chunk) [Completion Services](index=6&type=section&id=Completion) Completion services revenue decreased by 66.7% to 1.0 million HKD, mainly due to reduced completion tool sales in Northwest China, partially offset by increased sales in North China - Completion revenue decreased primarily due to reduced completion tool sales in Northwest China, partially offset by increased sales in North China[15](index=15&type=chunk) - Completion revenue includes commission income of approximately **0.3 million HKD** from facilitating sales of completion tools by Petro-King Energy Technology (Guangdong) Co., Ltd. and its subsidiaries to independent customers[15](index=15&type=chunk) [Analysis by Customer](index=7&type=section&id=Customers) In H1 2025, revenue from the top three customers significantly declined, with Customer 1 down 29.6% due to project delays and Customer 3 down 90.1% from contract expiration H1 2025 Revenue Comparison by Customer | Customer | 2025 H1 (million HKD) | 2024 H1 (million HKD) | Approximate % Change (%) | % of Total Revenue H1 2025 (%) | % of Total Revenue H1 2024 (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Customer 1 | 81.0 | 115.0 | -29.6 | 72.8 | 69.3 | | Customer 2 | 26.4 | 30.3 | -12.9 | 23.7 | 18.3 | | Customer 3 | 1.4 | 14.1 | -90.1 | 1.3 | 8.5 | | Customer 4 | 1.2 | 2.3 | -47.8 | 1.1 | 1.4 | | Customer 5 | 0.5 | – | N/A | 0.4 | – | | Other Customers | 0.8 | 4.2 | -81.0 | 0.7 | 2.5 | | **Total** | **111.3** | **165.9** | **-32.9** | **100** | **100** | - Customer 1 revenue decreased primarily due to internal extraction plan adjustments, delaying certain shale gas production enhancement projects to H2 2025[16](index=16&type=chunk) - Customer 3 revenue significantly decreased due to the expiration of a Middle East supervision service contract in H1 2024 with no H1 2025 revenue[16](index=16&type=chunk) [Human Resources](index=8&type=section&id=Human%20Resources) The Group values its employees, provides training, streamlines its organizational structure, and recruits international experts, resulting in a 2.1% reduction in total employees to 191 as of June 30, 2025 - In H1 2025, the Group arranged **68** training courses totaling over **2,163** hours, attended by **131** employees[17](index=17&type=chunk) - As of June 30, 2025, the Group had **191** employees, a decrease of approximately **2.1%** from **195** employees as of December 31, 2024[17](index=17&type=chunk) - The Company prioritizes talent acquisition and has hired several international experts skilled in market development[17](index=17&type=chunk) [Research and Development Investment and Achievements](index=8&type=section&id=R%26D) The Group prioritizes R&D in oilfield services and new energy, holding 40 utility model patents and 11 invention patents, with 35 additional applications pending as of June 30, 2025 - In H1 2025, in addition to oilfield service technology R&D, the Group also conducted several new energy utilization studies, including CO2 geological sequestration, LNG cold energy utilization, solidified hydrogen storage, geothermal energy utilization, and in-situ underground coal hydrogen production technology[18](index=18&type=chunk) - As of June 30, 2025, the Group held **40** utility model patents and **11** invention patents, with **27** utility model patents and **8** invention patents currently under application[18](index=18&type=chunk) [Business Outlook](index=9&type=section&id=Outlook) The Group anticipates stable demand for production enhancement and other oilfield services in H2 2025, driven by stable international oil prices and China's shale gas policies, while also exploring diversified investment opportunities in green energy - Market demand for the Group's production enhancement and other oilfield services is expected to remain robust for the remainder of 2025, supported by relatively stable international oil prices and China's policies encouraging shale gas consumption[19](index=19&type=chunk) - The Group will continue to focus on marketing and promoting oilfield services and technologies, and explore diversified investment opportunities, including green and renewable energy projects[19](index=19&type=chunk) [Financial Statements](index=10&type=section&id=Financial%20Statements) This section presents the Group's interim condensed consolidated statements of comprehensive income and financial position for H1 2025 [Interim Condensed Consolidated Statement of Comprehensive Income](index=10&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) In H1 2025, the Group's revenue significantly decreased to 111,266 thousand HKD, resulting in an operating loss of 4,730 thousand HKD and a net loss of 11,532 thousand HKD Summary of Interim Condensed Consolidated Statement of Comprehensive Income | Metric | 2025 H1 (thousand HKD) | 2024 H1 (thousand HKD) | | :--- | :--- | :--- | | Revenue | 111,266 | 165,908 | | Operating (Loss)/Profit | (4,730) | 7,636 | | Loss for the period | (11,532) | (412) | | Loss for the period attributable to owners of the Company | (11,793) | (395) | | Basic loss per share (HK cents) | (0.68) | (0.02) | [Interim Condensed Consolidated Statement of Financial Position](index=12&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group reported total assets less current liabilities of 211,532 thousand HKD and net assets of 171,799 thousand HKD, with net current liabilities increasing to 7,896 thousand HKD Summary of Interim Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Non-current assets | 219,428 | 226,208 | | Current assets | 381,579 | 416,731 | | Current liabilities | 389,475 | 417,096 | | Net current liabilities | (7,896) | (365) | | Net assets | 171,799 | 180,263 | | Equity attributable to owners of the Company | 164,093 | 172,818 | [Notes to Financial Information and Management Discussion](index=14&type=section&id=Notes%20to%20Financial%20Information%20and%20Management%20Discussion) This section provides detailed notes on the financial information, including general company data, accounting policies, segment performance, and balance sheet item analysis [General Information](index=14&type=section&id=1%20General%20Information) PETRO-KING OILFIELD SERVICES LIMITED, incorporated in BVI in 2007 and listed in Hong Kong in 2013, primarily provides oilfield technical and consulting services - The Group primarily provides oilfield technical services covering different stages of the oilfield lifecycle (including drilling, completion, and production enhancement) and oil and gas field consulting services, supplemented by trading activities of related oil and gas field products[24](index=24&type=chunk) - The Company was listed on The Stock Exchange of Hong Kong Limited on **March 6, 2013**[24](index=24&type=chunk) [Basis of Preparation and Going Concern](index=14&type=section&id=2%20Basis%20of%20Preparation) The interim financial information, prepared under IAS 34, highlights a net loss and net current liabilities as of June 30, 2025, indicating significant going concern uncertainties, which the directors plan to address through additional financing - For the six months ended June 30, 2025, the Group recorded a net loss of approximately **11,532,000 HKD**, with net current liabilities of approximately **7,896,000 HKD** and total current bank and other borrowings of approximately **112,083,000 HKD**, while holding cash and cash equivalents of only approximately **18,832,000 HKD**[25](index=25&type=chunk) - The directors have prepared cash flow forecasts covering the next fifteen months and plan to apply for additional loan facilities from Bank of China (expected to be no less than **RMB 20,000,000**) and draw down unutilized loan facilities of **RMB 30,000,000** to support going concern[26](index=26&type=chunk)[27](index=27&type=chunk) - These conditions indicate the existence of a material uncertainty that may cast significant doubt about the Group's ability to continue as a going concern[26](index=26&type=chunk) [Significant Accounting Policies](index=16&type=section&id=3%20Significant%20Accounting%20Policies) The accounting policies adopted are consistent with the 2024 financial statements, and the adoption of new and revised IFRS effective January 1, 2025, had no significant impact on the interim condensed consolidated financial statements - The Group has adopted all new and revised International Financial Reporting Standards (IFRS) relevant to its operations and effective for the accounting period beginning on **January 1, 2025**[30](index=30&type=chunk) - The adoption of new and revised IFRS did not have a significant impact on the Group's interim condensed consolidated financial statements[30](index=30&type=chunk) [Revenue and Segment Information](index=16&type=section&id=4%20Revenue%20and%20Segment%20Information) The Group's primary operating segments are oilfield project tools and services (105,376 thousand HKD revenue, 13,013 thousand HKD loss) and consulting services (5,890 thousand HKD revenue, 3,764 thousand HKD profit) for H1 2025 - The Group has two operating segments: Oilfield Project Tools and Services (providing oilfield technical services and related product trading) and Consulting Services (providing integrated project management and supervision services)[33](index=33&type=chunk) [Revenue Recognition](index=17&type=section&id=Revenue) In H1 2025, the Group's total revenue was 111,266 thousand HKD, with oilfield project tools and services contributing 105,376 thousand HKD and consulting services contributing 5,890 thousand HKD H1 2025 Revenue Recognized by Service Type | Service Type | 2025 H1 (thousand HKD) | 2024 H1 (thousand HKD) | | :--- | :--- | :--- | | Oilfield Project Tools and Services | 105,376 | 147,716 | | – Production Enhancement Projects | 93,721 | 136,623 | | – Drilling Projects | 10,664 | 8,061 | | – Completion Projects | 991 | 3,032 | | Consulting Services | 5,890 | 18,192 | | – Integrated Project Management Services | 1,692 | 3,496 | | – Supervision Services | 4,198 | 14,696 | | **Total Revenue** | **111,266** | **165,908** | - In H1 2025, most revenue (**110,557 thousand HKD**) was recognized over time, with only **709 thousand HKD** recognized at a point in time[35](index=35&type=chunk) [Segment Results](index=18&type=section&id=Segment%20Results) In H1 2025, the oilfield project tools and services segment recorded a loss of 13,013 thousand HKD, while the consulting services segment recorded a profit of 3,764 thousand HKD, resulting in an overall segment loss H1 2025 Segment Results | Segment | 2025 H1 (thousand HKD) | 2024 H1 (thousand HKD) | | :--- | :--- | :--- | | Oilfield Project Tools and Services Revenue | 105,376 | 147,716 | | Consulting Services Revenue | 5,890 | 18,192 | | Oilfield Project Tools and Services Results | (13,013) | (4,219) | | Consulting Services Results | 3,764 | 8,717 | | **Total Segment Results** | **(9,249)** | **4,498** | [Other Income and Losses, Net](index=21&type=section&id=Other%20Income%20and%20Losses%2C%20Net) In H1 2025, net other income increased significantly to 2,777 thousand HKD, primarily due to higher government subsidies, partially offset by a loss on deemed acquisition of an associate's interest H1 2025 Composition of Other Income and Losses, Net | Item | 2025 H1 (thousand HKD) | 2024 H1 (thousand HKD) | | :--- | :--- | :--- | | Net foreign exchange (losses)/gains | (258) | 308 | | Loss on deemed acquisition of interest in an associate | (2,095) | – | | Government subsidies | 4,390 | 553 | | **Total** | **2,777** | **225** | [Net Finance Costs](index=21&type=section&id=6%20Net%20Finance%20Costs) In H1 2025, net finance costs decreased by 16.2% to 5,670 thousand HKD, primarily due to reduced interest expenses on bank and other borrowings H1 2025 Net Finance Costs | Item | 2025 H1 (thousand HKD) | 2024 H1 (thousand HKD) | | :--- | :--- | :--- | | Finance income | 220 | 834 | | Finance costs | (5,890) | (7,584) | | **Net finance costs** | **(5,670)** | **(6,750)** | - Net finance costs decreased primarily due to repayment of bank and other borrowings in H1 2025[57](index=57&type=chunk) [Income Tax Expense](index=22&type=section&id=7%20Income%20Tax%20Expense) In H1 2025, income tax expense decreased to 412 thousand HKD, comprising current tax of 98 thousand HKD and overseas withholding tax of 314 thousand HKD H1 2025 Income Tax Expense | Item | 2025 H1 (thousand HKD) | 2024 H1 (thousand HKD) | | :--- | :--- | :--- | | Current tax | 98 | (21) | | Overseas withholding tax | 314 | 1,027 | | **Income tax expense** | **412** | **1,006** | [Loss Per Share](index=22&type=section&id=8%20Loss%20Per%20Share) In H1 2025, loss attributable to owners of the Company was 11,793 thousand HKD, resulting in a basic and diluted loss per share of 0.68 HK cents, a significant increase from the prior year H1 2025 Loss Per Share | Metric | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Loss for the period attributable to owners of the Company (thousand HKD) | (11,793) | (395) | | Weighted average number of ordinary shares (thousand shares) | 1,726,674 | 1,726,674 | | **Basic and diluted loss per share (HK cents)** | **(0.68)** | **(0.02)** | - Diluted loss per share for H1 2025 was the same as basic loss per share, as all potential ordinary shares had an anti-dilutive effect[43](index=43&type=chunk) [Dividend Policy](index=22&type=section&id=9%20Dividends) The Board resolved not to declare an interim dividend for H1 2025, consistent with the prior year - The Board resolved not to declare an interim dividend for H1 2025 (H1 2024: nil)[44](index=44&type=chunk) [Balance Sheet Item Analysis](index=23&type=section&id=Balance%20Sheet%20Item%20Analysis) This section details changes in key balance sheet items, including reduced property, plant and equipment acquisitions, increased right-of-use assets, and changes in trade receivables, payables, contract assets, inventories, and interests in associates [Property, Plant and Equipment](index=23&type=section&id=10%20Property%2C%20Plant%20and%20Equipment) In H1 2025, the Group acquired 1,576 thousand HKD and disposed of 32 thousand HKD in property, plant and equipment, both lower than the prior year H1 2025 Property, Plant and Equipment Movements | Item | 2025 H1 (thousand HKD) | 2024 H1 (thousand HKD) | | :--- | :--- | :--- | | Additions to property, plant and equipment | 1,576 | 4,472 | | Disposals of property, plant and equipment | 32 | 210 | [Right-of-use Assets](index=23&type=section&id=11%20Right-of-use%20Assets) In H1 2025, the Group added 142 thousand HKD in right-of-use assets, with no additions in the prior year - In H1 2025, the Group added approximately **142,000 HKD** in right-of-use assets (H1 2024: nil)[46](index=46&type=chunk) [Trade Receivables](index=23&type=section&id=12%20Trade%20Receivables) As of June 30, 2025, net trade receivables decreased by 24.0% to 153.3 million HKD, while the average turnover days increased from 206 to 289 days due to reduced revenue Trade Receivables Ageing Analysis (thousand HKD) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Up to 3 months | 39,209 | 160,362 | | 3 to 6 months | 66,401 | 38,582 | | 6 to 12 months | 47,852 | 2,545 | | Over 12 months | 4,002 | 5,066 | | **Trade receivables – Total** | **157,464** | **206,555** | - As of June 30, 2025, net trade receivables were approximately **153.3 million HKD**, a decrease of approximately **24.0%** from December 31, 2024[63](index=63&type=chunk) - The average turnover days for trade receivables increased from approximately **206** days in H1 2024 to approximately **289** days in H1 2025, primarily due to reduced revenue[63](index=63&type=chunk) [Trade Payables](index=24&type=section&id=13%20Trade%20Payables) As of June 30, 2025, trade payables decreased by 6.8% to 189.4 million HKD, while the average turnover days increased from 426 to 500 days due to reduced material costs and technical service fees Trade Payables Ageing Analysis (thousand HKD) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Up to 3 months | 26,990 | 87,226 | | 3 to 6 months | 40,979 | 9,529 | | 6 to 12 months | 49,573 | 23,619 | | Over 12 months | 71,890 | 82,858 | | **Total** | **189,432** | **203,232** | - As of June 30, 2025, trade payables were approximately **189.4 million HKD**, a decrease of approximately **6.8%** from December 31, 2024[65](index=65&type=chunk) - The average turnover days for trade payables increased from approximately **426** days in H1 2024 to approximately **500** days in H1 2025, primarily due to reduced material costs and technical service fees incurred in H1 2025[65](index=65&type=chunk) [Contract Assets](index=28&type=section&id=Contract%20Assets) As of June 30, 2025, contract assets increased by 8.4% to 119.4 million HKD, mainly due to increased unbilled work for production enhancement services - As of June 30, 2025, the Group's contract assets were approximately **119.4 million HKD**, an increase of approximately **8.4%** from December 31, 2024, primarily due to increased unbilled work for production enhancement services provided to certain customers[64](index=64&type=chunk) [Inventories](index=27&type=section&id=Inventories) As of June 30, 2025, inventories remained stable at 8.4 million HKD, but average turnover days decreased from 131 to 78 days, reflecting stricter inventory control - As of June 30, 2025, the Group's inventories were approximately **8.4 million HKD**, consistent with December 31, 2024[62](index=62&type=chunk) - The average inventory turnover days decreased from approximately **131** days in H1 2024 to approximately **78** days in H1 2025, reflecting the Group's implementation of stricter inventory control policies[62](index=62&type=chunk) [Interests in Associates](index=27&type=section&id=Interests%20in%20Associates) As of June 30, 2025, interests in associates decreased by 2.1 million HKD to 82.3 million HKD, mainly due to the share of losses from Petro-King Energy Group and exchange differences - As of June 30, 2025, the Group's interests in associates were approximately **82.3 million HKD**, a decrease of approximately **2.1 million HKD** from December 31, 2024, primarily due to its share of losses from Petro-King Energy Group and exchange differences[61](index=61&type=chunk) - The Group holds approximately **28.11%** equity interest in Petro-King Energy (December 31, 2024: approximately **27.67%**) and intends to retain its interest as a long-term investment[61](index=61&type=chunk) [Liquidity and Capital Resources](index=28&type=section&id=Liquidity%20and%20Capital%20Resources) The Group aims to ensure going concern and optimize capital structure, with cash and cash equivalents at 18.8 million HKD and total borrowings of 146.7 million HKD, facing restricted bank deposits and pledged assets [Cash and Borrowings](index=28&type=section&id=Cash%20and%20Borrowings) As of June 30, 2025, cash and cash equivalents increased to 18.8 million HKD, while total bank and other borrowings amounted to 146.7 million HKD, with 76.4% due within one year - As of June 30, 2025, the Group's cash and cash equivalents were approximately **18.8 million HKD**, an increase of approximately **3.2 million HKD** from December 31, 2024[66](index=66&type=chunk) - As of June 30, 2025, the Group's bank and other borrowings were approximately **146.7 million HKD**, of which approximately **76.4%** are repayable within one year[66](index=66&type=chunk) [Restricted Bank Deposits and Pledged Assets](index=29&type=section&id=Restricted%20Bank%20Deposits%20and%20Pledged%20Assets) As of June 30, 2025, approximately 31.7 million HKD in bank deposits were frozen, and the Group pledged 56.7 million HKD in machinery and 79.5 million HKD in trade receivables as collateral for borrowings - As of June 30, 2025, bank deposits of approximately **RMB 28.9 million** (approximately **31.7 million HKD**) were frozen by the court, pending the outcome of an appeal for a technical service fee claim[67](index=67&type=chunk) - As of June 30, 2025, the Group pledged certain machinery with a carrying amount of approximately **56.7 million HKD** and trade receivables of approximately **79.5 million HKD** as collateral for borrowings[67](index=67&type=chunk) [Gearing Ratio](index=29&type=section&id=Gearing%20Ratio) As of June 30, 2025, the Group's gearing ratio was 36.2%, a slight decrease from 36.7% at the end of 2024 - As of June 30, 2025, the Group's gearing ratio (calculated as net debt divided by total capital) was approximately **36.2%** (December 31, 2024: approximately **36.7%**)[68](index=68&type=chunk) [Foreign Exchange Risk](index=29&type=section&id=Foreign%20Exchange%20Risk) The Group faces foreign exchange risk primarily related to USD and RMB, arising from various foreign currency-denominated financial instruments, and did not use hedging instruments in H1 2025 - The Group is exposed to foreign exchange risk primarily related to USD and RMB, arising from foreign currency-denominated trade and other receivables, contract assets, cash and cash equivalents, trade and other payables, intercompany balances, bank and other borrowings, and lease liabilities[69](index=69&type=chunk) - In H1 2025, the Group did not use any financial instruments for hedging purposes[69](index=69&type=chunk) [Off-balance Sheet Arrangements](index=29&type=section&id=Off-balance%20Sheet%20Arrangements) As of June 30, 2025, the Group had no off-balance sheet arrangements - As of June 30, 2025, the Group had no off-balance sheet arrangements[70](index=70&type=chunk) [Other Information](index=30&type=section&id=Other%20Information) This section covers post-reporting period events, corporate governance, directors' securities transactions, dealings in listed securities, interim dividend policy, and the audit committee's review [Events After Reporting Period](index=30&type=section&id=Events%20After%20Reporting%20Period) No significant events materially affecting the Group's operations or financial position have occurred since the end of the reporting period or the publication of the 2024 annual report - No significant events materially affecting the Group's business operations occurred from the end of the reporting period up to the date of this announcement[71](index=71&type=chunk) - There have been no significant changes in the development or future development of the Group's business and financial position since the publication of the Company's annual report for the year ended December 31, 2024[72](index=72&type=chunk) [Corporate Governance](index=30&type=section&id=Corporate%20Governance) The Company maintains high corporate governance standards, with a Board comprising three executive, one non-executive, and three independent non-executive directors, and complied with Appendix C1 of the Listing Rules in H1 2025 - The Board comprises three executive directors, one non-executive director, and three independent non-executive directors[73](index=73&type=chunk)[78](index=78&type=chunk) - In H1 2025, the Company complied with the Corporate Governance Code set out in Appendix C1 of the Listing Rules in all applicable aspects[73](index=73&type=chunk) [Directors' Securities Transactions](index=30&type=section&id=Directors'%20Securities%20Transactions) All directors fully complied with the Model Code for Securities Transactions by Directors of Listed Issuers, as set out in Appendix C3 of the Listing Rules, during H1 2025 - The Company confirms that all directors fully complied with the standards set out in the Model Code as stipulated in Appendix C3 of the Listing Rules during H1 2025[74](index=74&type=chunk) [Dealings in Listed Securities](index=30&type=section&id=Dealings%20in%20Listed%20Securities) Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during H1 2025 - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during H1 2025[75](index=75&type=chunk) [Interim Dividend](index=30&type=section&id=Interim%20Dividend) The Board resolved not to declare an interim dividend for H1 2025, consistent with the prior year - The Board resolved not to declare an interim dividend for H1 2025 (H1 2024: nil)[76](index=76&type=chunk) [Audit Committee](index=31&type=section&id=Audit%20Committee) The Company has established an Audit Committee, composed of three independent non-executive directors, which has reviewed the unaudited interim condensed consolidated financial information - The Company has established an Audit Committee, comprising three independent non-executive directors, which has reviewed the unaudited interim condensed consolidated financial information[77](index=77&type=chunk)

[Interim Results Summary](index=1&type=section&id=Interim%20Results%20Summary) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group's unaudited interim results show total revenue decreased by 15.2% to HK$39,874 thousand, gross profit decreased by 34.4% to HK$7,296 thousand, and loss for the period narrowed by 13.6% to HK$37,653 thousand, with basic and diluted loss per share of 2.23 HK cents Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Metric | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 39,874 | 47,023 | -15.2% | | Cost of Revenue | (32,578) | (35,893) | -9.2% | | Gross Profit | 7,296 | 11,130 | -34.4% | | Other Income | 90 | 113 | -20.4% | | Other Gains and Losses | (13,266) | (14,276) | -7.1% | | Administrative Expenses | (16,190) | (21,863) | -26.0% | | Impairment Losses | (559) | (2,655) | -79.0% | | Share of Results of Associates | (14,764) | (15,877) | -7.0% | | Finance Costs | (260) | (144) | +80.6% | | Loss Before Tax | (37,653) | (43,572) | -13.6% | | Income Tax Expense | – | (19) | -100.0% | | Loss for the Period | (37,653) | (43,591) | -13.6% | | Total Comprehensive Expense for the Period | (28,479) | (54,536) | -47.8% | | Basic and Diluted Loss Per Share | (2.23) HK Cents | (2.58) HK Cents | -13.6% | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets were HK$359,365 thousand, an 8.4% decrease from December 31, 2024. Total liabilities were HK$46,963 thousand, an 8.9% decrease, and net assets declined to HK$312,402 thousand Condensed Consolidated Statement of Financial Position (As of June 30) | Metric | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current Assets | 295,946 | 324,253 | -8.7% | | Current Assets | 63,419 | 68,203 | -7.0% | | **Total Assets** | **359,365** | **392,456** | **-8.4%** | | Current Liabilities | 44,588 | 48,156 | -7.4% | | Non-current Liabilities | 2,375 | 3,419 | -30.6% | | **Total Liabilities** | **46,963** | **51,575** | **-8.9%** | | Share Capital | 168,730 | 168,730 | 0.0% | | Reserves | 143,672 | 172,151 | -16.5% | | **Total Equity** | **312,402** | **340,881** | **-8.3%** | [Notes to the Condensed Consolidated Financial Statements](index=5&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) [Company Information](index=5&type=section&id=1.%20Company%20Information) The Company is a listed entity incorporated in the Cayman Islands with shares listed on the Hong Kong Stock Exchange, primarily engaged in sales of daily necessities, healthcare and hygiene products, food products and nutritional supplements, equity securities trading, property investment, investment holding, and money lending in Hong Kong and China - The company is a listed entity incorporated in the Cayman Islands, with shares listed on the Hong Kong Stock Exchange[8](index=8&type=chunk) - Principal businesses include sales of daily necessities, healthcare and hygiene products, production and sales of food products and nutritional supplements, equity securities trading, property investment, investment holding, and money lending businesses[8](index=8&type=chunk) [Basis of Preparation and Accounting Policies](index=5&type=section&id=2.%20Basis%20of%20Preparation%20and%20Accounting%20Policies) The interim condensed consolidated financial statements are prepared in accordance with HKAS 34 and the Listing Rules, with accounting policies consistent with the 2024 annual consolidated financial statements, except for new standards effective January 1, 2025. Management exercised significant judgment and estimates in their preparation - The financial statements are prepared in accordance with HKAS 34 and the Listing Rules, with accounting policies largely consistent with the 2024 annual statements[9](index=9&type=chunk) - The Group has not early adopted new or revised Hong Kong Financial Reporting Standards that have been issued but are not yet effective[9](index=9&type=chunk)[11](index=11&type=chunk) - Preparation of the statements involves significant management judgments and estimates, and actual results may differ[9](index=9&type=chunk)[12](index=12&type=chunk) [Revenue Analysis](index=6&type=section&id=5.%20Revenue%20Analysis) Total revenue for the first half of 2025 was HK$39,874 thousand, a 15.2% year-on-year decrease, with customer contract revenue (mainly from sales of daily necessities, healthcare, and hygiene products) at HK$37,212 thousand and rental income at HK$2,662 thousand, primarily from the Hong Kong market Revenue Sources (For the six months ended June 30) | Revenue Source | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Sales of daily necessities, healthcare and hygiene products | 35,803 | 42,002 | -14.8% | | Sales of food products and nutritional supplements | 1,409 | 1,855 | -24.0% | | Rental income | 2,662 | 3,166 | -15.9% | | **Total Revenue** | **39,874** | **47,023** | **-15.2%** | - Revenue is primarily recognized when customers obtain control of goods, typically upon delivery and acceptance[14](index=14&type=chunk) - Geographical revenue primarily originated from Hong Kong (**HK$35,803 thousand**), with China contributing **HK$1,409 thousand**[14](index=14&type=chunk) [Segment Information](index=7&type=section&id=6.%20Segment%20Information) The Group is organized into three reportable segments based on operational nature: distribution, manufacturing, and investment. The finance lease segment has no related items this period as the associate is no longer classified as such. Segment results exclude certain other income, gains and losses, share of results of associates, and corporate expenses - The Group's principal operating segments include distribution (daily necessities, healthcare, and hygiene products in Hong Kong), manufacturing (food products and nutritional supplements in China), and investment (investment properties in China, Hong Kong securities, and money lending)[17](index=17&type=chunk) - The finance lease segment had no related items during the current period, as Beijing Hengjia Group is no longer classified as an associate[16](index=16&type=chunk) [Segment Revenue and Results](index=8&type=section&id=Segment%20Revenue%20and%20Results) In the first half of 2025, the distribution segment reported HK$35,803 thousand in revenue and a loss of HK$1,792 thousand; the manufacturing segment had HK$1,409 thousand in revenue and a loss of HK$2,425 thousand; the investment segment generated HK$2,662 thousand in revenue and a loss of HK$11,632 thousand, with no revenue or results from the finance lease segment Segment Revenue and Results (For the six months ended June 30) | Segment | 2025 Revenue (HK$ Thousand) | 2024 Revenue (HK$ Thousand) | Revenue Change (%) | 2025 Results (HK$ Thousand) | 2024 Results (HK$ Thousand) | Results Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Distribution | 35,803 | 42,002 | -14.8% | (1,792) | (887) | +102.0% | | Manufacturing | 1,409 | 1,855 | -24.0% | (2,425) | (2,454) | -1.2% | | Investment | 2,662 | 3,166 | -15.9% | (11,632) | (14,348) | -19.0% | | Finance Lease | – | – | N/A | – | (15,553) | -100.0% | | **Total** | **39,874** | **47,023** | **-15.2%** | **(15,849)** | **(33,242)** | **-52.3%** | - All segment revenue was derived from external customers[19](index=19&type=chunk) [Segment Assets and Liabilities](index=9&type=section&id=Segment%20Assets%20and%20Liabilities) As of June 30, 2025, the distribution segment had assets of HK$42,250 thousand and liabilities of HK$4,556 thousand; the manufacturing segment had assets of HK$45,546 thousand and liabilities of HK$5,938 thousand; the investment segment had assets of HK$177,803 thousand and liabilities of HK$6,931 thousand, with interests in associates totaling HK$75,094 thousand Segment Assets and Liabilities (As of June 30) | Segment | 2025 Assets (HK$ Thousand) | 2024 Assets (HK$ Thousand) | Assets Change (%) | 2025 Liabilities (HK$ Thousand) | 2024 Liabilities (HK$ Thousand) | Liabilities Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Distribution | 42,250 | 46,567 | -9.2% | 4,556 | 7,315 | -37.7% | | Manufacturing | 45,546 | 46,376 | -1.8% | 5,938 | 5,946 | -0.1% | | Investment | 177,803 | 188,012 | -5.4% | 6,931 | 7,349 | -5.7% | | Interests in Associates | 75,094 | 91,442 | -17.9% | – | – | N/A | | **Total** | **359,365** | **392,456** | **-8.4%** | **46,963** | **51,575** | **-8.9%** | - Most assets and liabilities are allocated to reportable and operating segments, with the exception of a few corporate items[22](index=22&type=chunk) [Details of Other Financial Items](index=9&type=section&id=Details%20of%20Other%20Financial%20Items) This section details the composition and changes in other income, other gains and losses, impairment losses, finance costs, and loss for the period [Other Income](index=9&type=section&id=7.%20Other%20Income) Other income for the first half of 2025 was HK$90 thousand, a 20.4% year-on-year decrease, primarily from interest income from banks and non-bank financial institutions and government grants Other Income (For the six months ended June 30) | Income Source | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Interest income from banks and non-bank financial institutions | 33 | 65 | -49.3% | | Government grants | 54 | – | N/A | | Miscellaneous income | 3 | 48 | -93.8% | | **Total** | **90** | **113** | **-20.4%** | [Other Gains and Losses](index=10&type=section&id=8.%20Other%20Gains%20and%20Losses) Net other gains and losses for the first half of 2025 amounted to a loss of HK$13,266 thousand, a 7.1% year-on-year decrease, primarily comprising fair value losses on investment properties of HK$10,876 thousand and fair value losses on financial assets at fair value through profit or loss of HK$1,823 thousand Other Gains and Losses (For the six months ended June 30) | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Fair value changes on financial assets at fair value through profit or loss | (1,823) | (871) | +109.3% | | Fair value changes on investment properties | (10,876) | (12,991) | -16.3% | | Net exchange losses | (7) | (28) | -75.0% | | Write-off of property, plant and equipment | – | (145) | -100.0% | | Write-off of trade receivables | (31) | – | N/A | | Write-off of inventories | (192) | (129) | +48.8% | | Loss on remeasurement of assets classified as held for sale | (337) | – | N/A | | Others | – | (112) | -100.0% | | **Total** | **(13,266)** | **(14,276)** | **-7.1%** | [Impairment Losses under Expected Credit Loss Model](index=10&type=section&id=9.%20Impairment%20Losses%20under%20Expected%20Credit%20Loss%20Model) Total impairment losses for the first half of 2025 amounted to HK$559 thousand, a significant 79.0% year-on-year decrease, primarily due to impairment of other receivables, with no impairment losses on loans receivable this period Impairment Losses under Expected Credit Loss Model (For the six months ended June 30) | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Loans receivable | – | 1,400 | -100.0% | | Other receivables | 559 | 1,255 | -55.5% | | **Total** | **559** | **2,655** | **-79.0%** | [Finance Costs](index=10&type=section&id=10.%20Finance%20Costs) Finance costs for the first half of 2025 were HK$260 thousand, an 80.6% year-on-year increase, primarily due to higher interest on lease liabilities and bank borrowings Finance Costs (For the six months ended June 30) | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Interest on bank borrowings | 51 | 23 | +121.7% | | Interest on lease liabilities | 155 | 63 | +146.0% | | Interest on other loans | 54 | 58 | -6.9% | | **Total** | **260** | **144** | **+80.6%** | [Income Tax Expense](index=11&type=section&id=11.%20Income%20Tax%20Expense) Income tax expense for the first half of 2025 was zero, compared to HK$19 thousand in the same period of 2024, primarily due to a reduction in China corporate income tax Income Tax Expense (For the six months ended June 30) | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Current tax – China corporate income tax | – | 22 | -100.0% | | Over-provision in prior years – Hong Kong profits tax | – | (3) | -100.0% | | **Income Tax Expense** | **–** | **19** | **-100.0%** | [Components of Loss for the Period](index=11&type=section&id=12.%20Components%20of%20Loss%20for%20the%20Period) The loss for the first half of 2025 was primarily composed of cost of inventories sold of HK$32,578 thousand, staff costs of HK$8,349 thousand, and total depreciation of HK$2,543 thousand Components of Loss for the Period (For the six months ended June 30) | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 353 | 128 | +175.8% | | Depreciation of right-of-use assets | 2,190 | 1,794 | +22.1% | | **Total Depreciation** | **2,543** | **1,922** | **+32.3%** | | Cost of inventories sold | 32,578 | 35,893 | -9.2% | | Staff costs | 8,349 | 11,154 | -25.2% | | Short-term lease expenses | 194 | 591 | -67.2% | [Dividends and Loss Per Share](index=11&type=section&id=Dividends%20and%20Loss%20Per%20Share) The Board does not recommend an interim dividend for the first half of 2025, and basic and diluted loss per share for the period was 2.23 HK cents, a narrowing compared to the prior year [Dividends](index=11&type=section&id=13.%20Dividends) 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[30](index=30&type=chunk) [Loss Per Share Attributable to Owners of the Company](index=12&type=section&id=14.%20Loss%20Per%20Share%20Attributable%20to%20Owners%20of%20the%20Company) Loss attributable to owners of the Company for the period was HK$37,653 thousand, with basic and diluted loss per share of 2.23 HK cents, a narrowing compared to the same period last year Loss Per Share Attributable to Owners of the Company (For the six months ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Loss for the period attributable to owners of the Company | (37,653) HK$ Thousand | (43,591) HK$ Thousand | | Weighted average number of ordinary shares | 1,687,303 Thousand Shares | 1,687,303 Thousand Shares | | **Basic and Diluted Loss Per Share** | **(2.23) HK Cents** | **(2.58) HK Cents** | - The Company had no dilutive potential ordinary shares during the current and prior periods, thus diluted loss per share is the same as basic loss per share[31](index=31&type=chunk) [Receivables and Payables](index=12&type=section&id=Receivables%20and%20Payables) This section details the composition and aging analysis of trade receivables, other receivables, deposits and prepayments, and trade and other payables, illustrating changes in each account [Trade Receivables](index=12&type=section&id=15.%20Trade%20Receivables) As of June 30, 2025, net trade receivables amounted to HK$7,736 thousand, a 16.9% decrease from December 31, 2024, with an increase in receivables aged 31-90 days and 91-270 days Trade Receivables (As of June 30) | Metric | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Trade receivables | 7,910 | 9,760 | -18.9% | | Less: Impairment allowance | (174) | (457) | -61.9% | | **Net Trade Receivables** | **7,736** | **9,303** | **-16.9%** | Aging Analysis of Trade Receivables (As of June 30) | Aging | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | 0-30 days | 1,956 | 4,786 | -59.1% | | 31-90 days | 3,097 | 2,499 | +23.9% | | 91-270 days | 1,961 | 1,334 | +47.0% | | Over 270 days | 722 | 684 | +5.6% | | **Total** | **7,736** | **9,303** | **-16.9%** | - The credit period granted to customers ranges from **0 to 60 days**[32](index=32&type=chunk) [Other Receivables, Deposits and Prepayments](index=13&type=section&id=16.%20Other%20Receivables%2C%20Deposits%20and%20Prepayments) As of June 30, 2025, total other receivables, deposits, and prepayments amounted to HK$14,362 thousand, a 13.2% decrease from December 31, 2024, with impairment allowance increasing to HK$5,749 thousand Other Receivables, Deposits and Prepayments (As of June 30) | Item | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Other receivables | 11,709 | 12,589 | -7.0% | | Prepayments | 1,179 | 1,552 | -24.1% | | Prepayments for purchases of goods | 6,582 | 6,949 | -5.3% | | Deposits | 641 | 642 | -0.2% | | **Subtotal** | **20,111** | **21,732** | **-7.5%** | | Less: Impairment allowance | (5,749) | (5,190) | +10.8% | | **Total** | **14,362** | **16,542** | **-13.2%** | [Trade and Other Payables](index=14&type=section&id=17.%20Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables amounted to HK$20,638 thousand, a 15.2% decrease from December 31, 2024, with a significant reduction in trade payables aged 0-30 days and 31-90 days Trade and Other Payables (As of June 30) | Item | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Trade payables | 860 | 2,383 | -63.9% | | Accrued expenses | 6,300 | 8,050 | -21.7% | | Receipts in advance | 5,099 | 6,658 | -23.4% | | Deposits received | 1,380 | – | N/A | | Other payables | 6,999 | 7,263 | -3.6% | | **Total** | **20,638** | **24,354** | **-15.2%** | Aging Analysis of Trade Payables (As of June 30) | Aging | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | 0-30 days | 293 | 705 | -58.5% | | 31-90 days | 40 | 1,031 | -96.1% | | 91-270 days | 1 | 136 | -99.3% | | Over 270 days | 526 | 511 | +2.9% | | **Total** | **860** | **2,383** | **-63.9%** | - Deposits received include a deposit of RMB1,259,000 (approximately **HK$1,380,000**) for the disposal of an investment property classified as held for sale[34](index=34&type=chunk) [Management Discussion and Analysis](index=15&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=15&type=section&id=Business%20Review) The Group's total revenue decreased by 15.2% year-on-year, gross profit by 34.4%, and net loss narrowed by 13.6% in the first half of 2025, with all business segments (distribution, manufacturing, investment) facing challenges and declining revenue, though the investment segment's loss narrowed - The Group's total revenue was **HK$39.9 million**, a **15.2% year-on-year decrease**; gross profit was **HK$7.3 million**, a **34.4% year-on-year decrease**; and net loss was **HK$37.7 million**, a **13.6% year-on-year decrease**[36](index=36&type=chunk) - The Group operates three segments: distribution, manufacturing, and investment, in China and Hong Kong[37](index=37&type=chunk) [Distribution Segment](index=15&type=section&id=Distribution%20Segment) The distribution segment's revenue decreased by 14.8% year-on-year to HK$35.8 million, recording a net loss of HK$1.8 million, primarily due to changing consumption patterns and reduced supply of traditional Chinese medicine products Distribution Segment Performance (For the six months ended June 30) | Metric | 2025 (HK$ Million) | 2024 (HK$ Million) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 35.8 | 42.0 | -14.8% | | Net Loss | (1.8) | (0.9) | +100.0% | - The decrease in revenue was mainly due to underperformance of own-brand health and wellness products, and reduced supply of traditional Chinese medicine products due to packaging changes and the suspension of approval for continuing connected transactions[38](index=38&type=chunk) [Manufacturing Segment](index=15&type=section&id=Manufacturing%20Segment) The manufacturing segment's revenue decreased by 26.3% year-on-year to HK$1.4 million, with a net loss of HK$2.4 million, a slight narrowing of loss, facing challenges from intense competition in the Chinese food market and limited production scale hindering cost reduction Manufacturing Segment Performance (For the six months ended June 30) | Metric | 2025 (HK$ Million) | 2024 (HK$ Million) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1.4 | 1.9 | -26.3% | | Net Loss | (2.4) | (2.5) | -4.0% | - Extremely low sales and a recorded loss were primarily impacted by intense competition in the Chinese food market and limited production scale making product cost reduction difficult[39](index=39&type=chunk) [Investment Segment](index=16&type=section&id=Investment%20Segment) The investment segment's revenue decreased by 15.9% year-on-year to HK$2.7 million, mainly due to an early lease termination by a tenant, while net loss narrowed to HK$11.6 million, primarily benefiting from reduced fair value losses on investment properties, and the Group has signed an agreement to dispose of a property in Shanghai Investment Segment Performance (For the six months ended June 30) | Metric | 2025 (HK$ Million) | 2024 (HK$ Million) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 2.7 | 3.2 | -15.9% | | Net Loss | (11.6) | (14.3) | -19.0% | - The decrease in revenue was primarily due to an early lease termination by a tenant[40](index=40&type=chunk) - The reduction in loss was mainly attributable to a decrease in fair value losses on investment properties in China from **HK$13.0 million** to **HK$10.9 million**[40](index=40&type=chunk) - The Group has agreed to dispose of a property in Minhang District, Shanghai, for RMB6,295,842 (approximately **HK$6,844,000**), with completion expected on or before August 30, 2025[40](index=40&type=chunk) [Financial Review](index=16&type=section&id=Financial%20Review) This section provides a detailed analysis of changes in the Group's financial metrics, noting that total revenue declined due to Hong Kong daily necessities sales, gross margin decreased due to discounts and rising costs, administrative expenses significantly reduced due to staff cost control, and associate losses primarily stemmed from Top Insight Limited [Revenue](index=16&type=section&id=Revenue) Revenue for the period was HK$39.9 million, a 15.2% year-on-year decrease, primarily due to lower sales of daily necessities, healthcare, and hygiene products in Hong Kong - Revenue was **HK$39.9 million**, a **15.2% year-on-year decrease**, primarily due to lower sales of daily necessities, healthcare, and hygiene products in Hong Kong[41](index=41&type=chunk) [Gross Profit](index=16&type=section&id=Gross%20Profit) Gross profit for the period was HK$7.3 million, a 34.4% year-on-year decrease, with gross margin falling from 23.7% to 18.3%, mainly due to higher trade discounts offered to bulk buyers and increased costs for certain products - Gross profit was **HK$7.3 million**, a **34.4% year-on-year decrease**[42](index=42&type=chunk) - Gross profit margin decreased from **23.7% to 18.3%**, attributed to higher trade discounts offered to bulk buyers and increased costs for certain products[42](index=42&type=chunk) [Other Income](index=16&type=section&id=Other%20Income) Other income for the period was HK$90 thousand, a 20.4% year-on-year decrease, primarily from bank fixed deposit interest income and a one-off Chinese government grant - Other income was **HK$90 thousand**, a **20.4% year-on-year decrease**, primarily from bank fixed deposit interest income and a one-off Chinese government grant[43](index=43&type=chunk) [Other Gains and Losses](index=17&type=section&id=Other%20Gains%20and%20Losses) Net other gains and losses for the period resulted in a HK$13.3 million loss, a 7.1% year-on-year decrease, primarily comprising fair value losses on investment properties of HK$10.9 million and fair value losses on financial assets at fair value through profit or loss of HK$1.8 million - Net other gains and losses resulted in a **HK$13.3 million loss**, a **7.1% year-on-year decrease**[44](index=44&type=chunk) - This primarily included fair value losses on investment properties of **HK$10.9 million** (a **16.2% year-on-year decrease**) and fair value losses on financial assets at fair value through profit or loss of **HK$1.8 million** (a **100% year-on-year increase**)[44](index=44&type=chunk) [Administrative Expenses](index=17&type=section&id=Administrative%20Expenses) Administrative expenses for the period were HK$16.2 million, a 25.9% year-on-year decrease, primarily comprising staff costs of HK$8.3 million, legal and professional fees, depreciation, and various administrative expenses - Administrative expenses were **HK$16.2 million**, a **25.9% year-on-year decrease**[45](index=45&type=chunk) - This primarily included staff costs of **HK$8.3 million** (a **25.6% year-on-year decrease**), legal and professional fees, depreciation, and various administrative expenses[45](index=45&type=chunk) [Share of Results of Associates](index=17&type=section&id=Share%20of%20Results%20of%20Associates) Share of results of associates for the period was a loss of HK$14.8 million, a 7.0% year-on-year decrease, primarily due to the share of loss from Top Insight Limited, with no related share of loss from Beijing Hengjia Group as it is no longer classified as an associate - Share of results of associates was a **HK$14.8 million loss**, a **7.0% year-on-year decrease**[46](index=46&type=chunk) - This primarily included a share of loss from Top Insight Limited of **HK$14.7 million** (compared to a profit of **HK$800 thousand** in the prior year) and a loss from Simagi Finance Company Limited of **HK$34 thousand**[46](index=46&type=chunk) - Beijing Hengjia Group, no longer classified as an associate, had no related share of loss this period (compared to a **HK$15.6 million loss** in the prior year)[46](index=46&type=chunk) [Loss for the Period Attributable to Owners of the Company](index=17&type=section&id=Loss%20for%20the%20Period%20Attributable%20to%20Owners%20of%20the%20Company) Net loss attributable to owners of the Company for the period was HK$37.7 million, a 13.6% year-on-year decrease, primarily due to tightened control over administrative expenses - Net loss for the period was **HK$37.7 million**, a **13.6% year-on-year decrease**[47](index=47&type=chunk) - The reduction in loss was primarily due to tightened control over administrative expenses[47](index=47&type=chunk) [Financial Position and Liquidity](index=17&type=section&id=Financial%20Position%20and%20Liquidity) The Group's total assets and liabilities both decreased, while the gearing ratio and current ratio remained stable, with cash and cash equivalents declining primarily due to net cash outflow from operating activities [Financial Position](index=17&type=section&id=Financial%20Position) As of June 30, 2025, the Group's total assets were HK$359.4 million, an 8.4% year-on-year decrease; total liabilities were HK$47.0 million, an 8.9% year-on-year decrease, with both the gearing ratio and current ratio remaining stable Financial Position Overview (As of June 30) | Metric | June 30, 2025 (HK$ Million) | December 31, 2024 (HK$ Million) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 359.4 | 392.5 | -8.4% | | Total Liabilities | 47.0 | 51.6 | -8.9% | | Gearing Ratio | 13.1% | 13.1% | 0.0% | | Current Ratio | 1.4 | 1.4 | 0.0% | - The decrease in total assets was primarily due to fair value losses on investment properties in China and unsatisfactory operating results of associates[48](index=48&type=chunk) - The decrease in total liabilities was mainly due to a reduction in trade and other payables[48](index=48&type=chunk) [Liquidity and Financial Resources](index=18&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group's cash and cash equivalents were approximately HK$8.7 million, a decrease of HK$4.5 million from the beginning of the period, primarily due to net cash outflow from operating activities, while short-term bank borrowings remained stable - Cash and cash equivalents were approximately **HK$8.7 million**, a **HK$4.5 million decrease** from December 31, 2024, primarily due to net cash outflow from operating activities[50](index=50&type=chunk) - Short-term bank borrowings amounted to **HK$2.8 million**, remaining stable compared to the beginning of the period[50](index=50&type=chunk) - The Group finances its business operations through funding from banks and other non-bank financial institutions, as well as internally generated cash flows[50](index=50&type=chunk) [Risk Management](index=18&type=section&id=Risk%20Management) The Group faces no significant foreign exchange risk and has not engaged in hedging, with credit risk primarily stemming from loans receivable, for which policies and procedures are in place to mitigate risk, assessed using an expected credit loss model [Foreign Exchange Risk](index=18&type=section&id=Foreign%20Exchange%20Risk) The Group is not exposed to significant foreign currency exchange rate fluctuation risk, as major transactions are denominated in local currencies, and no foreign exchange hedging transactions or instruments were entered into during the reporting period - The Group is not exposed to significant foreign currency exchange rate fluctuation risk, as major transactions are denominated in local currencies[51](index=51&type=chunk) - No foreign exchange hedging transactions or instruments were entered into during the reporting period[51](index=51&type=chunk) [Credit Risk](index=18&type=section&id=Credit%20Risk) The Group's primary credit risk arises from loans receivable, particularly money lending services, for which policies and procedures are established to mitigate risk, and assessments are conducted using a probability-weighted expected credit loss model - Primary credit risk originates from loans receivable, especially money lending services[52](index=52&type=chunk) - The Group has established policies and procedures to mitigate credit risk and assesses the recoverability of loans receivable using a probability-weighted expected credit loss model[52](index=52&type=chunk)[53](index=53&type=chunk) [Legal and Commitments](index=19&type=section&id=Legal%20and%20Commitments) There were no pledged assets or significant contingent liabilities at the end of the reporting period, while the Group faces litigation related to Beijing Hengjia and has filed for its judicial dissolution, with capital commitments significantly reduced [Pledged Assets](index=19&type=section&id=Pledged%20Assets) As of June 30, 2025, and December 31, 2024, the Group had no pledged assets - As of June 30, 2025, and December 31, 2024, there were no pledged assets[54](index=54&type=chunk) [Contingent Liabilities](index=19&type=section&id=Contingent%20Liabilities) As of June 30, 2025, and December 31, 2024, the Group had no significant contingent liabilities - As of June 30, 2025, and December 31, 2024, the Group had no significant contingent liabilities[55](index=55&type=chunk) [Litigation](index=19&type=section&id=Litigation) The Group has received a civil writ from Beijing Hengjia regarding unpaid registered capital of US$22.61 million, with the Board believing there are strong legal grounds to address the claim and having filed a lawsuit in a Chinese court for Beijing Hengjia's judicial dissolution - The Group has received a civil writ from Beijing Hengjia regarding unpaid registered capital of **US$22.61 million**[56](index=56&type=chunk) - The Board believes there are strong legal grounds to address the claim and may realize the investment to eliminate litigation uncertainty[56](index=56&type=chunk) - The Group has filed a lawsuit in a Chinese court seeking the judicial dissolution of Beijing Hengjia[56](index=56&type=chunk) [Capital Commitments](index=19&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group had no capital commitments, a significant reduction from HK$134 thousand as of December 31, 2024 - As of June 30, 2025, the Group had no capital commitments (December 31, 2024: **HK$134 thousand** for the acquisition of property, plant, and equipment)[57](index=57&type=chunk) [Prospects](index=19&type=section&id=Prospects) The Group's future performance is influenced by economic conditions in Hong Kong and China, with Hong Kong experiencing solid expansion but weak private consumption, and China facing domestic consumption and real estate market challenges. The Group plans to enhance performance and liquidity through product diversification, channel expansion, product optimization, conservative investment strategies, and potential property disposals, while actively seeking new growth opportunities - Hong Kong's economy expanded steadily in the first quarter of 2025, but private consumption expenditure saw a slight decline[58](index=58&type=chunk) - China's economy faces risks including weak domestic consumption, a sluggish real estate market, Sino-US geopolitical tensions, and global trade protectionism[59](index=59&type=chunk) - The Chinese government has introduced various support measures, such as subsidies for old-for-new home appliances and relaxed fiscal policies, to counter external threats, stimulate domestic demand, and support high-tech industries[59](index=59&type=chunk) - The distribution segment aims to boost sales through product diversification, expanding distribution channels, and broadening its customer base[60](index=60&type=chunk) - The manufacturing segment is stabilizing operations of new healthy instant noodle production lines, expanding product categories (e.g., low-GI certified instant noodles), increasing own-brand market exposure, and enriching nutritional supplement categories[60](index=60&type=chunk) - The investment segment will adhere to a conservative strategy, closely evaluating and optimizing its investment portfolio, and may dispose of Chinese properties to replenish liquidity and mitigate market risks[60](index=60&type=chunk) - For the second half of 2025, the Group anticipates optimizing business segments to enhance sales and profitability, seeking cost reductions, potentially exiting loss-making projects, disposing of properties, and reallocating resources to promising segments[60](index=60&type=chunk) - The Group will prudently explore new potential growth opportunities, undervalued assets, and business expansion opportunities to diversify revenue streams, generate profits, and enhance shareholder value[60](index=60&type=chunk) [Other Information](index=20&type=section&id=Other%20Information) [Employees and Remuneration](index=20&type=section&id=Employees%20and%20Remuneration) As of June 30, 2025, the Group employed approximately 42 staff in Hong Kong and China, a decrease from 56 as of December 31, 2024, with remuneration determined by basic salary, bonuses, and benefits-in-kind, referencing industry practice and individual performance Number of Employees | Metric | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Number of Employees | 42 | 56 | -25.0% | - Staff remuneration is determined by basic salary, bonuses, and other benefits-in-kind, referencing industry practice and individual performance[61](index=61&type=chunk) - The Group provides induction training for new staff and regular training for existing employees[61](index=61&type=chunk) [Events After Reporting Period](index=21&type=section&id=Events%20After%20Reporting%20Period) Except as otherwise disclosed in this announcement, the Group had no significant events after the end of the reporting period - No significant events after the end of the reporting period were disclosed[62](index=62&type=chunk) [Purchase, Redemption or Sale of Listed Securities](index=21&type=section&id=Purchase%2C%20Redemption%20or%20Sale%20of%20Listed%20Securities) Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the period - Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the reporting period[63](index=63&type=chunk) [Corporate Governance](index=21&type=section&id=Corporate%20Governance) The Group generally complied with the Corporate Governance Code during the reporting period, with deviations noted in the unseparated roles of Chairman and Chief Executive Officer and the Remuneration Committee's terms of reference not covering senior management remuneration. All Directors confirmed compliance with the Model Code for Securities Transactions, and the Audit Committee reviewed and approved the interim financial statements [Corporate Governance Practices](index=21&type=section&id=Corporate%20Governance%20Practices) The Group complied with all code provisions of Appendix C1 to the Listing Rules, "Corporate Governance Code," except for deviations regarding the unseparated roles of Chairman and Chief Executive Officer and the Remuneration Committee's terms of reference not covering senior management remuneration - The Group complied with all code provisions of Appendix C1 to the Listing Rules, "Corporate Governance Code," with two deviations[64](index=64&type=chunk) - Deviation C.2.1: Mr. Wang Liping serves as both Chairman and Chief Executive Officer, and the company is seeking a suitable candidate; the Board believes the existing balance of power adequately safeguards shareholders' interests[64](index=64&type=chunk) - Deviation E.1.2: The Remuneration Committee's terms of reference do not include reviewing senior management remuneration, as the Board believes executive directors are better suited for this role[65](index=65&type=chunk) [Model Code for Securities Transactions](index=22&type=section&id=Model%20Code%20for%20Securities%20Transactions) The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers in Appendix C3 to the Listing Rules, and all Directors confirmed compliance with the required standards throughout the review period - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers in Appendix C3 to the Listing Rules[66](index=66&type=chunk) - All Directors confirmed compliance with the required standards of the Model Code throughout the review period[66](index=66&type=chunk) [Review by Audit Committee](index=22&type=section&id=Review%20by%20Audit%20Committee) The Audit Committee, established in accordance with the Corporate Governance Code and comprising three independent non-executive directors, has reviewed and approved the unaudited condensed consolidated financial statements for the six months ended June 30, 2025 - The Audit Committee has been established in accordance with the Corporate Governance Code and comprises three independent non-executive directors[67](index=67&type=chunk) - The Audit Committee has reviewed and approved the unaudited condensed consolidated financial statements for the six months ended June 30, 2025[67](index=67&type=chunk) [Publication of Interim Results and Report](index=22&type=section&id=Publication%20of%20Interim%20Results%20and%20Report) This interim results announcement has been published on the Company's website and the Stock Exchange's website, and the 2025 interim report containing all required information will be dispatched to shareholders and published on the aforementioned websites in due course - The interim results announcement has been published on the Company's website (www.egichk.com) and the Stock Exchange's website (www.hkexnews.hk)[68](index=68&type=chunk) - The 2025 interim report, containing all required information, will be dispatched to shareholders and published on the aforementioned websites in due course[68](index=68&type=chunk)

[Announcement Overview](index=1&type=section&id=Announcement%20Overview) [Company Basic Information](index=1&type=section&id=Company%20Basic%20Information) This is the unaudited interim results announcement of TravelSky Technology Limited (Stock Code: 00696) for the six months ended June 30, 2025, prepared in accordance with China Accounting Standards for Business Enterprises - This announcement is the unaudited interim results for the six months ended June 30, 2025[2](index=2&type=chunk) - The financial statements are prepared in accordance with the China Accounting Standards for Business Enterprises[2](index=2&type=chunk) [Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Income Statement](index=2&type=section&id=Consolidated%20Income%20Statement) For the six months ended June 30, 2025, the Group's total operating revenue was RMB 3,894.5 million, with a net profit of RMB 1,448.8 million and basic earnings per share of RMB 0.49 Key Data from Consolidated Income Statement (For the six months ended June 30, 2025, RMB'000) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Total Operating Revenue | 3,894,500 | 4,041,791 | | Total Operating Costs | 2,427,877 | 2,535,291 | | Operating Profit | 1,689,988 | 1,613,656 | | Profit Before Tax | 1,677,920 | 1,605,722 | | Net Profit | 1,448,783 | 1,376,815 | | Net Profit Attributable to Shareholders of the Parent Company | 1,447,651 | 1,367,221 | | Basic Earnings Per Share (RMB/Share) | 0.49 | 0.47 | | Diluted Earnings Per Share (RMB/Share) | 0.49 | 0.47 | - **Net profit attributable to shareholders of the parent company increased by 5.9%** year-on-year to RMB 1,447,651 thousand[3](index=3&type=chunk) [Consolidated Balance Sheet](index=4&type=section&id=Consolidated%20Balance%20Sheet) As of June 30, 2025, the Group's total assets reached RMB 32,121.5 million, an increase of approximately 8.1% from the end of the previous year, with total liabilities at RMB 8,445.1 million Key Data from Consolidated Balance Sheet (As of June 30, 2025, RMB'000) | Item | Closing Balance | Prior Year-End Balance | | :--- | :--- | :--- | | **Assets** | | | | Total Current Assets | 23,384,427 | 20,498,211 | | Total Non-current Assets | 8,737,037 | 9,196,434 | | Total Assets | 32,121,464 | 29,694,646 | | **Liabilities and Equity** | | | | Total Current Liabilities | 7,707,128 | 6,724,716 | | Total Non-current Liabilities | 737,944 | 72,944 | | Total Liabilities | 8,445,071 | 6,797,660 | | Total Equity | 23,676,393 | 22,896,986 | | Total Liabilities and Equity | 32,121,464 | 29,694,646 | - **Total assets increased by approximately 8.1%** compared to the end of the previous year[5](index=5&type=chunk)[6](index=6&type=chunk) - **Total current liabilities increased by 14.6%** year-on-year, while **total non-current liabilities surged by 911.7%**[7](index=7&type=chunk) [Notes to the Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) [Basic Information of the Company](index=8&type=section&id=Basic%20Information%20of%20the%20Company) The company, incorporated in Beijing on October 18, 2000, provides IT services for the aviation industry, with its ultimate controlling entity being the State-owned Assets Supervision and Administration Commission of the State Council - The company was incorporated in Beijing on October 18, 2000, with a total issued share capital of 2,926,209,589 shares[9](index=9&type=chunk) - Principal activities include air passenger service processing, electronic travel distribution, airport passenger processing, air cargo data processing, and internet travel platform services[9](index=9&type=chunk) - The ultimate controlling entity is the State-owned Assets Supervision and Administration Commission of the State Council of the PRC[9](index=9&type=chunk) [Basis of Preparation of Financial Statements](index=8&type=section&id=Basis%20of%20Preparation%20of%20Financial%20Statements) The interim results are prepared in accordance with China Accounting Standards for Business Enterprises on a going concern basis and comply with Hong Kong's disclosure requirements - The financial statements are prepared in accordance with the China Accounting Standards for Business Enterprises issued by the Ministry of Finance of the PRC[11](index=11&type=chunk) - The statements comply with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Hong Kong Companies Ordinance[11](index=11&type=chunk) - The financial statements are prepared on a going concern basis[12](index=12&type=chunk) [Changes in Accounting Policies](index=9&type=section&id=Changes%20in%20Accounting%20Policies) There were no changes in accounting policies during the reporting period - There were no changes in accounting policies during the period[13](index=13&type=chunk) [Taxation](index=9&type=section&id=Taxation) The Group is subject to VAT, Urban Maintenance and Construction Tax, and Corporate Income Tax, enjoying a preferential rate of 15% as a "High and New Technology Enterprise" and a further reduced rate of 10% as a "Key Software Enterprise" Major Taxes and Tax Rates | Tax Type | Applicable Rate (%) | | :--- | :--- | | Value-added Tax (VAT) | 3.00–23.00 | | Urban Maintenance and Construction Tax | 5.00, 7.00 | | Corporate Income Tax | 8.25–25.00 | - The company is recognized as a "High and New Technology Enterprise" and is entitled to a **preferential Corporate Income Tax rate of 15%**, valid until 2025[15](index=15&type=chunk) - The company is recognized as a "Key Software Enterprise" and is entitled to a **further reduced preferential tax rate of 10%**, with the difference to be refunded subsequently[16](index=16&type=chunk) [Notes to Key Items in the Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Key%20Items%20in%20the%20Consolidated%20Financial%20Statements) This section details key financial statement items, including receivables, investments, payables, revenue composition, and earnings per share, providing comparative data against prior periods [Accounts Receivable](index=11&type=section&id=Accounts%20Receivable) As of June 30, 2025, total accounts receivable were RMB 5,331.2 million, with provisions for bad debts totaling RMB 930.1 million Aging Analysis of Accounts Receivable (RMB'000) | Aging | Closing Balance | Prior Year-End Balance | | :--- | :--- | :--- | | Within 1 year | 4,148,447 | 4,364,621 | | 1 to 2 years | 1,235,590 | 886,221 | | 2 to 3 years | 342,556 | 402,296 | | Over 3 years | 434,794 | 407,659 | | Subtotal | 6,261,288 | 6,060,796 | | Less: Provision for bad debts | 930,067 | 1,101,521 | | Total | 5,331,221 | 4,959,275 | Analysis of Accounts Receivable by Provision Method (As of period-end, RMB'000) | Category | Carrying Amount | Proportion (%) | Provision for Bad Debts | Provision Rate (%) | Book Value | | :--- | :--- | :--- | :--- | :--- | :--- | | Individually assessed | 871,967 | 13.93 | 589,703 | 67.63 | 282,264 | | Collectively assessed | 5,389,321 | 86.07 | 340,364 | 6.32 | 5,048,957 | | Total | 6,261,288 | 100.00 | 930,067 | | 5,331,221 | [Other Equity Instrument Investments](index=12&type=section&id=Other%20Equity%20Instrument%20Investments) The Group holds a 13.26% stake in China Merchants Renhe Life Insurance, with a fair value of RMB 1,043.8 million, designated as a financial asset at FVTOCI Details of Other Equity Instrument Investments (RMB'000) | Item | Closing Balance | Prior Year-End Balance | | :--- | :--- | :--- | | China Merchants Renhe Life Insurance Co, Ltd | 1,043,827 | 1,004,312 | | Total | 1,043,827 | 1,004,312 | - Holds a **13.26% equity interest** in China Merchants Renhe Life Insurance Co, Ltd, with a fair value of **RMB 1,043,827 thousand**[22](index=22&type=chunk) - The investment is designated as a financial asset at fair value through other comprehensive income (FVTOCI)[22](index=22&type=chunk) [Other Non-current Financial Assets](index=13&type=section&id=Other%20Non-current%20Financial%20Assets) The Group's investment in CMSC Equity Fund has a carrying amount of RMB 996.9 million, with a focus on the 5G and information communication industry chain Details of Other Non-current Financial Assets (RMB'000) | Item | Closing Balance | Prior Year-End Balance | | :--- | :--- | :--- | | Financial assets at fair value through profit or loss | 996,867 | 1,017,412 | | Of which: Equity instrument investments | 996,867 | 1,017,412 | | Total | 996,867 | 1,017,412 | - This asset represents an investment in CMSC Equity Fund, with a paid-in capital of **RMB 852,175 thousand** and a carrying amount of **RMB 996,867 thousand**[23](index=23&type=chunk) - CMSC Equity Fund primarily invests in companies related to the 5G and information communication industry chain[23](index=23&type=chunk) [Accounts Payable](index=14&type=section&id=Accounts%20Payable) As of June 30, 2025, total accounts payable were RMB 2,209.3 million, a slight increase from the previous year-end, with balances aged within one year accounting for 60.5% Details of Accounts Payable (RMB'000) | Aging | Closing Balance | Prior Year-End Balance | | :--- | :--- | :--- | | Within 1 year (inclusive) | 1,335,823 | 1,549,348 | | 1–2 years (inclusive) | 620,571 | 340,986 | | 2–3 years (inclusive) | 135,545 | 186,807 | | Over 3 years | 117,341 | 110,259 | | Total | 2,209,280 | 2,187,400 | [Contract Liabilities](index=14&type=section&id=Contract%20Liabilities) As of June 30, 2025, contract liabilities amounted to RMB 815.5 million, an increase of 26.3% from the previous year-end, primarily from system integration services Details of Contract Liabilities (RMB'000) | Item | Closing Balance | Prior Year-End Balance | | :--- | :--- | :--- | | Contracts for system integration services, etc | 815,475 | 645,608 | | Total | 815,475 | 645,608 | [Revenue and Cost of Sales](index=15&type=section&id=Revenue%20and%20Cost%20of%20Sales) For the six months ended June 30, 2025, the Group's revenue was RMB 3,894.5 million and cost of sales was RMB 1,606.5 million, with system integration service revenue declining significantly Revenue and Cost of Sales (RMB'000) | Item | Current Period Revenue | Current Period Cost | Prior Period Revenue | Prior Period Cost | | :--- | :--- | :--- | :--- | :--- | | Main business | 3,881,068 | 1,601,054 | 4,020,211 | 1,628,051 | | Other business | 13,431 | 5,472 | 21,581 | 6,072 | | Total | 3,894,500 | 1,606,526 | 4,041,791 | 1,634,123 | Breakdown of Revenue (RMB'000) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Aviation information technology services | 2,313,440 | 2,265,033 | | Settlement and clearing services | 312,470 | 277,972 | | System integration services | 418,355 | 679,849 | | Data network services | 189,533 | 216,410 | | Technical support and product revenue | 384,961 | 295,310 | | Other revenue | 275,742 | 307,218 | | Total | 3,894,500 | 4,041,791 | - **Revenue from system integration services decreased by 38.5% year-on-year**, mainly affected by the progress of project construction[25](index=25&type=chunk) [Investment Income](index=16&type=section&id=Investment%20Income) For the six months ended June 30, 2025, total investment income was RMB 28.7 million, a decrease from the prior period due to lower returns from trading financial assets Details of Investment Income (RMB'000) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Income from long-term equity investments under the equity method | 11,043 | 2,121 | | Investment income from disposal of long-term equity investments | 115 | 7,673 | | Investment income from trading financial assets during the holding period | 8,859 | 29,540 | | Interest income from debt investments during the holding period | 8,697 | — | | Total | 28,714 | 39,335 | [Credit Impairment Losses](index=16&type=section&id=Credit%20Impairment%20Losses) For the six months ended June 30, 2025, credit impairment losses were RMB 176.5 million, a significant increase from the prior period mainly due to higher bad debt losses on accounts receivable Details of Credit Impairment Losses (RMB'000) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Bad debt losses on notes receivable | 5,637 | 7,791 | | Bad debt losses on accounts receivable | 170,908 | 57,873 | | Total | 176,545 | 65,664 | [Asset Impairment Losses](index=17&type=section&id=Asset%20Impairment%20Losses) For the six months ended June 30, 2025, asset impairment losses amounted to RMB 2.1 million, primarily related to contract assets Details of Asset Impairment Losses (RMB'000) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Impairment losses on contract assets | 2,069 | –6,021 | | Total | 2,069 | –6,021 | [Earnings Per Share](index=17&type=section&id=Earnings%20Per%20Share) For the six months ended June 30, 2025, both basic and diluted earnings per share were RMB 0.49, an increase from RMB 0.47 in the prior period Earnings Per Share Calculation | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Profit (RMB'000) | 1,447,651 | 1,367,221 | | Number of shares ('000 shares) | 2,926,210 | 2,926,210 | | Earnings per share (basic and diluted) | 0.49 | 0.47 | [Dividend Distribution](index=17&type=section&id=Dividend%20Distribution) A final cash dividend of RMB 0.239 per share for 2024, totaling RMB 699.4 million, was approved and recorded as a distribution of retained earnings - The final cash dividend for 2024 was **RMB 0.239 per share** (tax inclusive), totaling **RMB 699,364 thousand**[28](index=28&type=chunk) - This dividend was recognized in shareholders' equity for the six months ended June 30, 2025, as a distribution of retained earnings[28](index=28&type=chunk) [Asset Disposal](index=18&type=section&id=Asset%20Disposal) For the six months ended June 30, 2025, the Group recorded a gain on asset disposal of RMB 2.7 million, mainly from the disposal of right-of-use assets - Gain on disposal of assets amounted to **RMB 2,734 thousand**[29](index=29&type=chunk) - This primarily includes a gain of RMB 2,770 thousand from the disposal of right-of-use assets (lease modification gain) and a loss of RMB 36 thousand from office and electronic equipment[29](index=29&type=chunk) [Supplementary Information to the Income Statement by Nature of Expense](index=18&type=section&id=Supplementary%20Information%20to%20the%20Income%20Statement%20by%20Nature%20of%20Expense) For the six months ended June 30, 2025, staff costs were RMB 968.2 million and depreciation and amortization were RMB 438.1 million, with system integration sales costs decreasing by 52.1% Expenses by Nature (RMB'000) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Staff costs | 968,206 | 937,785 | | Depreciation and amortization | 438,094 | 531,602 | | Cost of sales for integration business | 200,792 | 418,795 | | Technical support and maintenance fees | 285,498 | 286,074 | | Departure and distribution support fees | 307,218 | 303,275 | | Network usage fees | 42,631 | 44,190 | | Finance costs | –55,907 | –78,654 | | Other operating costs | 196,526 | 47,556 | | Total | 2,383,057 | 2,490,623 | - **Cost of sales for integration business decreased by 52.1%**, mainly affected by the progress of system integration projects[30](index=30&type=chunk) - **Depreciation and amortization decreased by 17.6%**, mainly because certain fixed assets and intangible assets were fully depreciated or amortized[30](index=30&type=chunk) [Business Review](index=19&type=section&id=Business%20Review) [Business Review for the First Half of 2025](index=19&type=section&id=Business%20Review%20for%20the%20First%20Half%20of%202025) In H1 2025, the Group capitalized on the civil aviation market recovery, advanced its core businesses, enhanced innovation, and strategically entered emerging industries like AI and the low-altitude economy - The civil aviation passenger market hit a new record high, with both domestic and international passenger volumes surpassing the same period in 2019[31](index=31&type=chunk) - The Electronic Travel Distribution (ETD) system processed approximately **370.7 million passengers** for domestic and foreign airlines, a **year-on-year increase of 5.3%**[32](index=32&type=chunk) - The settlement and clearing system handled approximately **628.4 million transactions**, up **3.7% year-on-year**, with settled revenue exceeding **RMB 35.61 billion**, a **20.0% increase**[34](index=34&type=chunk) - Actively participated in smart airport construction projects and promoted new-generation departure front-end systems, facial recognition travel platforms, and full-process baggage tracking systems[36](index=36&type=chunk) - Expanded value-added data center services, upgraded cargo terminal production systems, and developed applications for the "Aviation-Travel Chain" blockchain and digital RMB payments[37](index=37&type=chunk) - Ensured stable operation of mainframe and open platform systems with an availability rate exceeding **99.99%** and expanded data center resources[38](index=38&type=chunk) - Led research into AI applications for the civil aviation industry and actively developed the low-altitude economy sector, signing the first user for its collaborative platform[39](index=39&type=chunk) [Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) [Overview](index=23&type=section&id=Overview) In H1 2025, the Group's profit before tax grew 4.5% to RMB 1,677.9 million, and net profit attributable to shareholders rose 5.9% to RMB 1,447.7 million, driven by stable revenue growth and improved collections - **Profit before tax was RMB 1,677.9 million**, an increase of approximately **4.5%** compared to H1 2024[40](index=40&type=chunk) - **Net profit attributable to shareholders of the parent company was RMB 1,447.7 million**, an increase of approximately **5.9%** compared to H1 2024[40](index=40&type=chunk) - The profit growth was mainly attributable to stable revenue growth from aviation information technology services and improved collection of payments[40](index=40&type=chunk) [Total Revenue](index=23&type=section&id=Total%20Revenue) Total revenue for H1 2025 was RMB 3,894.5 million, a 3.6% decrease year-on-year, impacted by a significant 38.5% decline in system integration service revenue despite growth in other segments - **Total revenue was RMB 3,894.5 million**, a **year-on-year decrease of 3.6%**[41](index=41&type=chunk) Revenue Changes by Business Segment (RMB million) | Business Segment | H1 2025 | H1 2024 | Change Rate | | :--- | :--- | :--- | :--- | | Aviation information technology services | 2,313.4 | 2,265.0 | +2.1% | | Settlement and clearing services | 312.5 | 278.0 | +12.4% | | System integration services | 418.4 | 679.8 | -38.5% | | Data network services | 189.5 | 216.4 | -12.4% | | Technical support and product revenue | 385.0 | 295.3 | +30.4% | | Other revenue | 275.7 | 307.2 | -10.2% | - The decrease in system integration service revenue was mainly affected by the progress of project construction[42](index=42&type=chunk) [Total Operating Costs](index=25&type=section&id=Total%20Operating%20Costs) Total operating costs for H1 2025 decreased by 4.2% to RMB 2,427.9 million, driven by a 52.1% reduction in integration business sales costs and a 17.6% drop in depreciation and amortization - **Total operating costs were RMB 2,427.9 million**, a **year-on-year decrease of 4.2%**[44](index=44&type=chunk) - **Credit impairment losses were RMB -176.5 million**, mainly due to improved payment collection from certain customers, resulting in a decrease in the provision for bad debts on accounts receivable[44](index=44&type=chunk) Changes in Major Cost Items | Cost Item | Change Rate | | :--- | :--- | | Staff costs | +3.2% | | Depreciation and amortization | -17.6% | | Cost of sales for integration business | -52.1% | | Technical support and maintenance fees | -0.2% | | Departure and distribution support fees | +1.3% | [Corporate Income Tax](index=26&type=section&id=Corporate%20Income%20Tax) The company accrued corporate income tax for H1 2025 at a preferential rate of 15% as a "High and New Technology Enterprise" and is eligible for a further reduced rate of 10% as a "Key Software Enterprise" - The company accrued corporate income tax for H1 2025 at a **preferential rate of 15%** due to its "High and New Technology Enterprise" status[46](index=46&type=chunk) - The company has been recognized as a "Key Software Enterprise" from 2006 to 2024, entitling it to a **10% preferential tax rate**, with the difference to be refunded subsequently[46](index=46&type=chunk) [Net Profit Attributable to Shareholders of the Parent Company](index=26&type=section&id=Net%20Profit%20Attributable%20to%20Shareholders%20of%20the%20Parent%20Company) Net profit attributable to shareholders of the parent company increased by RMB 80.4 million, from RMB 1,367.2 million in H1 2024 to RMB 1,447.7 million in H1 2025 - Net profit attributable to shareholders of the parent company **increased by RMB 80.4 million year-on-year** to **RMB 1,447.7 million**[48](index=48&type=chunk) [Liquidity and Capital Structure](index=27&type=section&id=Liquidity%20and%20Capital%20Structure) [Liquidity and Capital Structure](index=27&type=section&id=Liquidity%20and%20Capital%20Structure) In H1 2025, the Group generated a net cash inflow from operating activities of RMB 1,314.8 million, holding cash and cash equivalents of RMB 6,621.2 million against total borrowings of RMB 1,396.1 million - **Net cash inflow from operating activities was RMB 1,314.8 million**[49](index=49&type=chunk) - **Total borrowings amounted to RMB 1,396.1 million**, comprising short-term bank loans of RMB 924.6 million and entrusted loans of RMB 471.5 million[49](index=49&type=chunk) - **Cash and cash equivalents stood at RMB 6,621.2 million**, of which 95.3% was denominated in RMB[49](index=49&type=chunk) [Restricted Bank Deposits](index=27&type=section&id=Restricted%20Bank%20Deposits) As of June 30, 2025, restricted bank deposits totaled RMB 1,821.6 million, primarily consisting of provisions for customers' payments used as performance guarantees for settlement-related businesses - Restricted bank deposits amounted to **RMB 1,821.6 million**, of which **RMB 1,794.3 million** was provisions for customers' payments[50](index=50&type=chunk) - These funds are mainly held in designated accounts as performance guarantees for settlement-related businesses[50](index=50&type=chunk) [Entrusted Deposits and Irrecoverable Overdue Time Deposits](index=27&type=section&id=Entrusted%20Deposits%20and%20Irrecoverable%20Overdue%20Time%20Deposits) As of June 30, 2025, the Group had no entrusted deposits or irrecoverable overdue time deposits - The Group had no entrusted deposits or irrecoverable overdue time deposits[51](index=51&type=chunk) [Foreign Exchange Risk](index=27&type=section&id=Foreign%20Exchange%20Risk) The Group's foreign exchange risk arises from commercial transactions and assets and liabilities denominated in foreign currencies, with potential impacts from RMB exchange rate fluctuations - Foreign exchange risk arises from commercial transactions and assets and liabilities denominated in foreign currencies[52](index=52&type=chunk) - Fluctuations in the exchange rate of RMB against foreign currencies may affect operating results[52](index=52&type=chunk) [Investment in Financial Assets](index=27&type=section&id=Investment%20in%20Financial%20Assets) The Group prudently invests in principal-protected wealth management products with returns higher than bank deposit rates, including structured deposits, certificates of deposit, and equity funds - The Group's fund management strategy typically involves selecting principal-protected wealth management products with interest rates higher than bank deposits to maximize returns[53](index=53&type=chunk) [Trading Financial Assets](index=28&type=section&id=Trading%20Financial%20Assets) As of June 30, 2025, the Group held structured bank deposits totaling RMB 6,000 million with annual interest rates ranging from 0.45% to 2.30% - Held structured bank deposits totaling **RMB 6,000 million**, with annual interest rates of **0.45%–2.30%** and tenors of 92 to 186 days[54](index=54&type=chunk) [Financial Assets at Amortized Cost](index=28&type=section&id=Financial%20Assets%20at%20Amortized%20Cost) As of June 30, 2025, the Group held certificates of deposit totaling RMB 670 million and reverse repurchase agreements of RMB 1,000 million - Held certificates of deposit totaling **RMB 670 million**, with annual interest rates of **1.75%–3.10%** and tenors of 365 to 1,097 days[55](index=55&type=chunk) - Held reverse repurchase agreements of **RMB 1,000 million** with an annualized interest rate of **1.66%** and a tenor of 28 days[55](index=55&type=chunk) [Financial Assets at Fair Value through Other Comprehensive Income](index=28&type=section&id=Financial%20Assets%20at%20Fair%20Value%20through%20Other%20Comprehensive%20Income) The Group holds a 13.26% stake in China Merchants Renhe Life Insurance, with a fair value of RMB 1,043.8 million as of June 30, 2025 Investment in China Merchants Renhe Life Insurance (RMB'000) | Investment Name | Shareholding (%) | Fair Value as at June 30, 2025 | Fair Value as at Dec 31, 2024 | Gain for the six months ended June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | | China Merchants Renhe Life | 13.26 | 1,043,827 | 1,004,312 | 39,515 | - China Merchants Renhe Life Insurance recorded a **profit of RMB 173.33 million** in H1 2025[57](index=57&type=chunk) - The insurer will continue to promote product transformation and strengthen asset-liability management around its strategic initiatives[59](index=59&type=chunk) [Financial Assets at Fair Value through Profit or Loss](index=30&type=section&id=Financial%20Assets%20at%20Fair%20Value%20through%20Profit%20or%20Loss) The Group has made a capital contribution of RMB 852.2 million to the CMSC Equity Fund, which invests in the 5G industry and information communication supply chain - A capital contribution of **RMB 852.2 million** has been made to the CMSC Equity Fund[60](index=60&type=chunk) - The CMSC Equity Fund primarily invests in companies related to 5G industry applications and the information communication industry chain[60](index=60&type=chunk) [Pledge of Assets](index=31&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the Group had no pledged assets - The Group had no pledged assets[61](index=61&type=chunk) [Contingent Liabilities](index=31&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no material contingent liabilities - The Group had no material contingent liabilities[62](index=62&type=chunk) [Gearing Ratio](index=31&type=section&id=Gearing%20Ratio) As of June 30, 2025, the Group's gearing ratio was 26.3%, an increase from 22.9% at the end of 2024 - The gearing ratio was **26.3%** (December 31, 2024: 22.9%)[63](index=63&type=chunk) [Progress in Data Resource Capitalization](index=31&type=section&id=Progress%20in%20Data%20Resource%20Capitalization) During the period, the Group did not recognize any new data resources as intangible assets, with the existing balance reported at RMB 20.2 million - No new data resources were recognized as intangible assets during the period[64](index=64&type=chunk) - The financial statements report "Intangible assets – of which: data resources" at **RMB 20.2 million**[64](index=64&type=chunk) [Significant Investment or Financing Plans](index=31&type=section&id=Significant%20Investment%20or%20Financing%20Plans) The Group had no significant acquisitions, disposals, or investment plans as of June 30, 2025, with capital expenditure in H1 2025 totaling RMB 133.8 million - As of June 30, 2025, the Group had no significant acquisitions, disposals, or plans for major investments or capital asset purchases[65](index=65&type=chunk) - Total capital expenditure for H1 2025 was **RMB 133.8 million** (H1 2024: RMB 141.5 million)[65](index=65&type=chunk) - Capital expenditure commitments amounted to approximately **RMB 1,518.7 million**, mainly for operations, system maintenance, and R&D upgrades[65](index=65&type=chunk) [Employees](index=32&type=section&id=Employees) As of June 30, 2025, the Group had 6,740 employees, with staff costs for H1 2025 amounting to RMB 968.2 million, representing 39.9% of total operating costs - As of June 30, 2025, the Group had a total of **6,740 employees**[67](index=67&type=chunk) - Staff costs for H1 2025 were approximately **RMB 968.2 million**, accounting for about **39.9% of total operating costs**[67](index=67&type=chunk) - Total enterprise annuity expenses were approximately **RMB 47.3 million** (H1 2024: RMB 40.9 million)[67](index=67&type=chunk) [Subsequent Events](index=32&type=section&id=Subsequent%20Events) [Subsequent Events](index=32&type=section&id=Subsequent%20Events) In July and August 2025, the company received a tax refund of RMB 89.7 million related to its "Key Software Enterprise" status, with no other significant events to disclose - In July and August 2025, the company received a tax refund of **RMB 89.7 million** related to its "Key Software Enterprise" status[68](index=68&type=chunk) - There were no other significant events to disclose from June 30, 2025, to the date of this announcement[68](index=68&type=chunk) [Outlook and Dividend Policy](index=33&type=section&id=Outlook%20and%20Dividend%20Policy) [Outlook for the Second Half of 2025](index=33&type=section&id=Outlook%20for%20the%20Second%20Half%20of%202025) For H2 2025, the Group will focus on high-quality development, technology-led innovation, strengthening its industrial position, and accelerating its layout in strategic emerging industries - In H2, the focus will be on high-quality development, strengthening technology-led innovation, and enhancing industrial control capabilities[69](index=69&type=chunk) - The Group will accelerate its layout in strategic emerging industries, cultivate new quality productive forces, and consolidate its core business advantages[69](index=69&type=chunk) [Interim Dividend](index=33&type=section&id=Interim%20Dividend) The Board of Directors has recommended not to declare an interim dividend for the first half of 2025 - The Board of Directors recommended **no interim dividend** for the first half of 2025[70](index=70&type=chunk) [Purchase, Sale or Redemption of Securities](index=33&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20Securities) The company and its subsidiaries did not purchase, sell, or redeem any of its listed securities during the first half of 2025 and held no treasury shares - In H1 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of its listed securities[71](index=71&type=chunk) - As of June 30, 2025, the company did not hold any treasury shares[71](index=71&type=chunk) [Corporate Governance](index=34&type=section&id=Corporate%20Governance) [Corporate Governance](index=34&type=section&id=Corporate%20Governance) The company adheres to high standards of corporate governance but has two deviations from the code provisions: the concurrent roles of Chairman and CEO and a delayed board election - The company has adopted the code provisions in the Corporate Governance Code and Corporate Governance Report in Appendix C1 to the Listing Rules[72](index=72&type=chunk) - **Deviation from code provision C.2.1**: The roles of Chairman and Chief Executive Officer are held by the same individual as a transitional arrangement[72](index=72&type=chunk) - **Deviation from code provision B.2.2**: The re-election of the Board of Directors has been postponed but will not affect normal operations[73](index=73&type=chunk) - Apart from the above deviations, the company fully complied with all other code provisions during H1 2025[73](index=73&type=chunk) [Audit and Risk Management Committee (Supervisory Committee)](index=35&type=section&id=Audit%20and%20Risk%20Management%20Committee%20(Supervisory%20Committee)) The Audit and Risk Management Committee has reviewed the Group's unaudited interim results for the six months ended June 30, 2025, and discussed related matters - The Audit and Risk Management Committee has reviewed the Group's unaudited interim results for the six months ended June 30, 2025[75](index=75&type=chunk) - The committee discussed matters including internal control, risk management, and financial reporting[75](index=75&type=chunk) [Other Information](index=35&type=section&id=Other%20Information) [Publication of Interim Results on the Internet](index=35&type=section&id=Publication%20of%20Interim%20Results%20on%20the%20Internet) This results announcement is available on the websites of Hong Kong Exchanges and Clearing Limited and the company - This results announcement is available on the website of Hong Kong Exchanges and Clearing Limited (www.hkexnews.hk) and the company's website (www.travelskyir.com)[76](index=76&type=chunk) [Board of Directors](index=35&type=section&id=Board%20of%20Directors) As of the announcement date, the Board comprises one executive director, three non-executive directors, three independent non-executive directors, and one employee representative director - Executive Director: Mr. Huang Rongshun (Chairman)[78](index=78&type=chunk) - Non-executive Directors: Mr. Sun Yuquan, Mr. Qu Guangji, and Ms. He Xiaoqun[78](index=78&type=chunk) - Independent Non-executive Directors: Mr. Liu Zehong, Mr. Chan Wing Tak, and Mr. Xu Hongzhi[78](index=78&type=chunk) - Employee Representative Director: Ms. Liang Shuang[77](index=77&type=chunk)

Announcements and Disclaimers [HKEX and Stock Exchange Disclaimer](index=1&type=section&id=%E9%A6%99%E6%B8%AF%E4%BA%A4%E6%98%93%E6%89%80%E5%8F%8A%E8%81%AF%E4%BA%A4%E6%89%80%E5%85%8D%E8%B2%AC%E8%81%B2%E6%98%8E) The HKEX and the Stock Exchange disclaim responsibility for the announcement's content, accuracy, or completeness, and any losses incurred from reliance on it - Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited are not responsible for the contents of this announcement, make no representation as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement[1](index=1&type=chunk) [Company Information and Announcement Purpose](index=1&type=section&id=%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E4%BF%A1%E6%81%AF%E5%8F%8A%E5%85%AC%E5%91%8A%E7%9B%AE%E7%9A%84) Jimu Group Limited (Stock Code: 8187) announces its unaudited consolidated financial results for the six months ended June 30, 2025, in compliance with GEM Listing Rules - Jimu Group Limited (Stock Code: **8187**) announces its unaudited consolidated financial results for the six months ended June 30, 2025[2](index=2&type=chunk)[3](index=3&type=chunk) - This announcement complies with the relevant requirements for preliminary announcements of interim results under the GEM Listing Rules of The Stock Exchange of Hong Kong Limited[3](index=3&type=chunk) [GEM Market Characteristics and Risk Warning](index=2&type=section&id=GEM%E5%B8%82%E5%A0%B4%E7%89%B9%E8%89%B2%E5%8F%8A%E9%A2%A8%E9%9A%AA%E6%8F%90%E7%A4%BA) The GEM market, designed for SMEs, carries higher investment risks, potential for significant stock price volatility, and no guarantee of liquidity; the Board confirms report accuracy - The GEM market is positioned for small and medium-sized companies, carrying higher investment risks, potential for significant stock price volatility, and no guarantee of high liquidity[6](index=6&type=chunk) - The Directors confirm that the information contained in this report is accurate and complete in all material aspects, without any misleading or fraudulent content[6](index=6&type=chunk) Condensed Consolidated Financial Statements [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, revenue grew significantly by 167.8% to HKD 14,358 thousand, but loss for the period expanded to HKD 3,932 thousand, with basic loss per share of HKD 0.026 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | June 30, 2025 (HKD thousand) | June 30, 2024 (HKD thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 14,358 | 5,361 | 167.8% | | Cost of inventories sold | (8,852) | (3,059) | 189.4% | | Loss before tax | (3,932) | (3,410) | 15.3% | | Loss and total comprehensive expenses for the period | (3,932) | (3,410) | 15.3% | | Basic and diluted loss per share (HKD) | (0.026) | (0.031) | -16.1% | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, total assets were HKD 20,640 thousand, and net assets were HKD 12,220 thousand, with net current assets decreasing from HKD 14,400 thousand to HKD 10,144 thousand Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (HKD thousand) | December 31, 2024 (HKD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current assets | 2,715 | 2,545 | 6.7% | | Current assets | 17,925 | 21,486 | -16.6% | | Current liabilities | 7,781 | 7,086 | 9.8% | | Net current assets | 10,144 | 14,400 | -29.5% | | Net assets | 12,220 | 16,152 | -24.3% | | Total equity | 12,220 | 16,152 | -24.3% | [Condensed Consolidated Statement of Changes in Equity](index=5&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) As of June 30, 2025, total equity was HKD 12,220 thousand, a decrease of HKD 3,932 thousand from the beginning of the year, primarily due to the loss for the period Condensed Consolidated Statement of Changes in Equity | Indicator | January 1, 2025 (HKD thousand) | June 30, 2025 (HKD thousand) | Change (HKD thousand) | | :--- | :--- | :--- | :--- | | Total equity | 16,152 | 12,220 | (3,932) | | Loss and total comprehensive expenses for the period | - | (3,932) | (3,932) | [Condensed Consolidated Statement of Cash Flows](index=6&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For the six months ended June 30, 2025, net cash from operating activities was HKD 6,864 thousand, with a net increase in cash and cash equivalents of HKD 5,743 thousand, bringing period-end bank balances and cash to HKD 10,782 thousand Condensed Consolidated Statement of Cash Flows | Indicator | June 30, 2025 (HKD thousand) | June 30, 2024 (HKD thousand) | Change (HKD thousand) | | :--- | :--- | :--- | :--- | | Net cash from operating activities | 6,864 | 5,345 | 1,519 | | Net cash used in investing activities | (400) | (964) | 564 | | Net cash used in financing activities | (721) | (4,771) | 4,050 | | Net increase/(decrease) in cash and cash equivalents | 5,743 | (390) | 6,133 | | Cash and cash equivalents at end of period | 10,782 | 1,092 | 9,690 | Notes to the Condensed Consolidated Financial Statements [General Information](index=7&type=section&id=%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) Jimu Group Limited is an investment holding company incorporated in the Cayman Islands, primarily engaged in trading footwear, apparel, and sports-related peripheral products, with shares listed on GEM - The Company is an investment holding company primarily engaged in the trading of footwear, apparel, and sports-related peripheral products[14](index=14&type=chunk) - The Company's shares are listed on the GEM of The Stock Exchange of Hong Kong Limited[13](index=13&type=chunk) [Basis of Preparation](index=7&type=section&id=%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) These interim financial statements are prepared in accordance with HKAS 34 and Chapter 18 of the GEM Listing Rules, unaudited by external auditors but reviewed by the Audit Committee - The unaudited condensed consolidated financial statements have been prepared in accordance with Hong Kong Accounting Standard 34 Interim Financial Reporting issued by the Hong Kong Institute of Certified Public Accountants and Chapter 18 of the Rules Governing the Listing of Securities on GEM of The Stock Exchange of Hong Kong Limited[16](index=16&type=chunk) - The unaudited condensed consolidated financial statements have not been audited by the Company's auditor but have been reviewed by the Company's Audit Committee[17](index=17&type=chunk) [Principal Accounting Policies](index=8&type=section&id=%E4%B8%BB%E8%A6%81%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) The accounting policies adopted for these interim financial statements are consistent with the prior year, and newly adopted HKFRSs have no significant impact on the Group's results or financial position - The accounting policies adopted in the preparation of the interim unaudited condensed consolidated financial information are consistent with those applied in the preparation of the Group's annual consolidated financial statements for the year ended December 31, 2024[18](index=18&type=chunk) - The adoption of new/revised HKFRSs has no significant impact on the Group's results and financial position for the current and prior periods[19](index=19&type=chunk) [Revenue](index=8&type=section&id=%E6%94%B6%E5%85%A5) For the six months ended June 30, 2025, the Group's entire revenue of HKD 14,358 thousand was derived from trading footwear, apparel, and sports-related peripheral products, representing significant growth year-on-year Revenue by Source | Revenue Source | June 30, 2025 (HKD thousand) | June 30, 2024 (HKD thousand) | | :--- | :--- | :--- | | Trading of footwear, apparel and sports-related peripheral products | 14,358 | 5,361 | [Segment Information](index=9&type=section&id=%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group operates solely in one reportable and operating segment: footwear, apparel, and sports-related peripheral products, with all revenue primarily from Hong Kong and no longer from Canada - The Group has only one reportable and operating segment, which is the footwear, apparel, and sports-related peripheral products business[22](index=22&type=chunk) Revenue by Geographical Location | Region | June 30, 2025 (HKD thousand) | June 30, 2024 (HKD thousand) | | :--- | :--- | :--- | | Hong Kong | 14,358 | 5,060 | | Canada | – | 301 | | **Total** | **14,358** | **5,361** | Non-current Assets by Geographical Location | Location of Non-current Assets | June 30, 2025 (HKD thousand) | December 31, 2024 (HKD thousand) | | :--- | :--- | :--- | | Hong Kong | 2,478 | 2,308 | [Income Tax Expense](index=10&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) No Hong Kong profits tax provision was made for the six months ended June 30, 2025, and 2024, as the Group had no assessable profits during these periods - No provision for Hong Kong profits tax has been made in the unaudited condensed consolidated financial statements as the Group had no assessable profits for the six months ended June 30, 2025, and June 30, 2024[29](index=29&type=chunk) [Loss for the Period](index=11&type=section&id=%E6%9C%9F%E5%85%A7%E虧%E6%90%8D) The loss for the period was primarily influenced by the cost of inventories sold, employee costs (salaries, allowances, retirement benefits), and depreciation expenses (plant and equipment, right-of-use assets) Components of Loss for the Period | Indicator | June 30, 2025 (HKD thousand) | June 30, 2024 (HKD thousand) | | :--- | :--- | :--- | | Cost of inventories sold | 8,852 | 3,059 | | Total employee costs | 3,327 | 2,462 | | Total depreciation | 840 | 1,045 | | Expenses related to short-term leases | 730 | 115 | [Dividends](index=11&type=section&id=%E8%82%A1%E6%81%AF) The Company's directors do not recommend the payment of any interim dividend for the six months ended June 30, 2025 - No dividends were paid, declared, or proposed during the current interim period and prior interim period[32](index=32&type=chunk) [Loss Per Share](index=12&type=section&id=%E6%AF%8F%E8%82%A1%E虧%E6%90%8D) For the six months ended June 30, 2025, both basic and diluted loss per share were HKD 0.026, with diluted loss being the same due to the anti-dilutive nature of share options Loss Per Share Calculation | Indicator | June 30, 2025 (HKD thousand) | June 30, 2024 (HKD thousand) | | :--- | :--- | :--- | | Loss for the purpose of calculating basic loss per share | (3,932) | (3,410) | | Weighted average number of ordinary shares for calculating basic loss per share (thousand shares) | 151,684 | 108,345 | - Basic and diluted loss per share for the six months ended June 30, 2025, and June 30, 2024, were the same because the exercise of share options would decrease the loss per share, thus having an anti-dilutive effect[34](index=34&type=chunk) [Movements in Property, Plant and Equipment and Right-of-Use Assets](index=13&type=section&id=%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%E8%AE%8A%E5%8B%95) For the six months ended June 30, 2025, the Group acquired approximately HKD 401 thousand in property, plant and equipment and HKD 609 thousand in right-of-use assets, incurring corresponding depreciation expenses Asset Movements | Asset Category | Acquisition Cost (HKD thousand) | Depreciation Expense (HKD thousand) | | :--- | :--- | :--- | | Property, plant and equipment (June 30, 2025) | 401 | 197 | | Property, plant and equipment (December 31, 2024) | 965 | - | | Right-of-use assets (June 30, 2025) | 609 | 643 | | Right-of-use assets (December 31, 2024) | 1,736 | - | [Inventories](index=13&type=section&id=%E5%AD%98%E8%B2%A8) As of June 30, 2025, merchandise inventories of footwear, apparel, and sports-related peripheral products for resale significantly decreased to HKD 6,004 thousand from HKD 13,163 thousand at December 31, 2024 Inventories | Inventory Category | June 30, 2025 (HKD thousand) | December 31, 2024 (HKD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Merchandise of footwear, apparel and sports-related peripheral products for resale | 6,004 | 13,163 | -54.4% | [Trade Receivables](index=14&type=section&id=%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E8%B3%AC%E6%AC%BE) As of June 30, 2025, trade receivables (net of impairment losses) were zero, primarily due to an impairment provision of HKD 2,175 thousand for expected credit losses Trade Receivables | Indicator | June 30, 2025 (HKD thousand) | December 31, 2024 (HKD thousand) | | :--- | :--- | :--- | | Trade receivables from contracts with customers | 2,175 | 2,126 | | Less: Impairment loss under expected credit loss model | (2,175) | – | | **Net amount** | **–** | **2,126** | - The Group grants credit terms ranging from **30 to 60 days** to its customers for sales of footwear, apparel, and sports-related peripheral products[37](index=37&type=chunk) Ageing Analysis of Trade Receivables | Ageing | June 30, 2025 (HKD thousand) | December 31, 2024 (HKD thousand) | | :--- | :--- | :--- | | Over 90 days | – | 2,126 | [Other Receivables, Prepayments and Deposits](index=15&type=section&id=%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85%E3%80%81%E9%A0%90%E4%BB%98%E6%AC%BE%E9%A0%85%E5%8F%8A%E6%8C%89%E9%87%91) As of June 30, 2025, the total of other receivables, prepayments, and deposits was HKD 1,139 thousand, a slight decrease from HKD 1,158 thousand at December 31, 2024 Other Receivables, Prepayments and Deposits | Item | June 30, 2025 (HKD thousand) | December 31, 2024 (HKD thousand) | | :--- | :--- | :--- | | Other receivables (net of provision) | 401 | 383 | | Prepayments | 139 | 186 | | Lease deposits | 642 | 642 | | Other deposits | 194 | 184 | | Less: Lease deposits shown under non-current assets | (237) | (237) | | **Total** | **1,139** | **1,158** | [Trade Payables](index=15&type=section&id=%E8%B2%BF%E6%98%93%E6%87%89%E4%BB%98%E8%B3%AC%E6%AC%BE) As of June 30, 2025, total trade payables increased to HKD 3,072 thousand from HKD 2,415 thousand at December 31, 2024, with credit terms ranging from 0 to 60 days Ageing Analysis of Trade Payables | Ageing | June 30, 2025 (HKD thousand) | December 31, 2024 (HKD thousand) | | :--- | :--- | :--- | | 0 to 30 days | 578 | 54 | | 31 to 60 days | 88 | – | | 61 to 90 days | 82 | – | | Over 90 days | 2,324 | 2,361 | | **Total** | **3,072** | **2,415** | - The credit period for purchases of goods ranges from **0 to 60 days**[40](index=40&type=chunk) [Other Payables and Accruals](index=16&type=section&id=%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85%E5%8F%8A%E6%87%89%E8%A8%88%E8%B2%BB%E7%94%A8) As of June 30, 2025, total other payables and accruals were HKD 3,681 thousand, a slight decrease from HKD 3,777 thousand at December 31, 2024 Other Payables and Accruals | Item | June 30, 2025 (HKD thousand) | December 31, 2024 (HKD thousand) | | :--- | :--- | :--- | | Accrued staff wages | 760 | 463 | | Accrued expenses | 343 | 960 | | Other taxes payable | 1,239 | 1,220 | | Other payables | 1,339 | 1,134 | | **Total** | **3,681** | **3,777** | [Share Capital](index=16&type=section&id=%E8%82%A1%E6%9C%AC) As of June 30, 2025, the Company's issued and fully paid share capital remained at HKD 30,337 thousand, comprising 151,683,840 shares, consistent with the capital structure after the 2024 share placement Share Capital | Item | June 30, 2025 (HKD thousand) | December 31, 2024 (HKD thousand) | | :--- | :--- | :--- | | Authorized ordinary shares (HKD thousand) | 100,000 | 100,000 | | Issued and fully paid shares (HKD thousand) | 30,337 | 30,337 | | Number of issued shares (shares) | 151,683,840 | 151,683,840 | - The placing of **43,338,240 new shares** was completed on October 31, 2024, with net proceeds of approximately **HKD 10,200,000**, increasing share capital by **HKD 8,668,000** and share premium by approximately **HKD 1,580,000**[42](index=42&type=chunk) [Share Option Scheme](index=17&type=section&id=%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%A8%88%E5%8A%83) The Company adopted a share option scheme in 2016 to reward eligible individuals; as of June 30, 2025, 807,886 share options remained unexercised at an exercise price of HKD 0.37 per share, with no cancellations or exercises during the period - The Company adopted a share option scheme (the "2016 Scheme") to grant share options to eligible persons as a reward for their contributions[43](index=43&type=chunk) Share Options Outstanding | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of share options outstanding at period/year-end | 807,886 | 807,886 | | Weighted average exercise price (HKD per share) | 0.37 | 0.37 | - No share options were cancelled or exercised during the six months ended June 30, 2025, and June 30, 2024[51](index=51&type=chunk) [Fair Value Measurement of Financial Instruments](index=19&type=section&id=%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7%E7%9A%84%E5%85%AC%E5%B9%B3%E5%80%BC%E8%A8%88%E9%87%8F) The Directors believe that the carrying amounts of the Group's financial assets and liabilities recorded at amortized cost in the unaudited condensed consolidated financial statements approximate their fair values - The Directors are of the opinion that the carrying amounts of these financial assets and financial liabilities recorded at amortized cost in the unaudited condensed consolidated financial statements approximate their fair values[52](index=52&type=chunk) [Related Party Disclosures](index=19&type=section&id=%E9%97%9C%E8%81%AF%E6%96%B9%E6%8A%AB%E9%9C%B2) The Group's key management comprises all executive directors, whose remuneration is determined by the Remuneration Committee based on individual and Group performance, industry standards, and market conditions - The Group's key management comprises all executive directors of the Company, whose remuneration details are disclosed in Note 7[53](index=53&type=chunk) - The remuneration of executive directors is determined by the Company's Remuneration Committee based on individual performance, the Group's performance and profitability, industry remuneration standards, and prevailing market conditions[53](index=53&type=chunk) Management Discussion and Analysis [Business Review and Outlook](index=20&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7%E5%8F%8A%E5%B1%95%E6%9C%9B) The Group primarily engages in footwear, apparel, and sports-related peripheral products, expanding retail through physical stores and wholesale, expecting positive revenue effects in H2 2025 from Hong Kong's event economy - The Group is engaged in the business of footwear, apparel, and sports-related peripheral products, continuously expanding its retail business through physical stores while strategically seeking wholesale opportunities[55](index=55&type=chunk)[56](index=56&type=chunk) - The Hong Kong government's development of a mega-event economy creates a positive environment for the sports trade industry, and the Group's business is expected to benefit from this trend, achieving positive revenue effects in the second half of 2025[56](index=56&type=chunk) [Footwear, Apparel and Sports-related Peripheral Products Business](index=20&type=section&id=%E9%9E%8B%E6%9C%8D%E5%8F%8A%E9%81%8B%E5%8B%95%E7%9B%B8%E9%97%9C%E9%80%B1%E9%82%8A%E7%94%A2%E5%93%81%E6%A5%AD%E5%8B%99) The Group's business involves sourcing, retail, and marketing of footwear, printed apparel, sportswear, and other sports-related peripheral products in Hong Kong, with significant revenue growth from a new wholesale contract - The Group is engaged in the sourcing, retail, and marketing of footwear, printed apparel, sportswear, and other sports-related peripheral products in Hong Kong[56](index=56&type=chunk) - In the first half of 2025, the Group successfully signed a wholesale contract with an independent distributor, significantly boosting the Group's revenue[56](index=56&type=chunk) [Financial Review](index=21&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) The Group's revenue significantly increased by 166.7% during the reporting period, mainly due to wholesale business expansion, but loss for the period widened due to higher employee benefits, new store openings, and impairment of trade receivables [Revenue](index=21&type=section&id=%E6%94%B6%E7%9B%8A) Revenue for the period saw a substantial increase, primarily driven by the expansion of the wholesale business Revenue | Indicator | June 30, 2025 (HKD thousand) | June 30, 2024 (HKD thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 14,400 | 5,400 | 166.7% | - The increase in revenue was primarily due to the expansion of the wholesale business[59](index=59&type=chunk) [Cost of Inventories Sold](index=21&type=section&id=%E5%B7%B2%E5%94%AE%E5%AD%98%E8%B2%A8%E6%88%90%E6%9C%AC) The cost of inventories sold increased significantly in line with the substantial growth in revenue Cost of Inventories Sold | Indicator | June 30, 2025 (HKD thousand) | June 30, 2024 (HKD thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Cost of inventories sold | 8,900 | 3,100 | 187.1% | [Employee Benefit Expenses](index=21&type=section&id=%E5%83%B1%E5%93%A1%E7%A6%8F%E5%88%A9%E9%96%8B%E6%94%AF) Employee benefit expenses increased due to the opening of more retail stores and the hiring of additional senior employees during the reporting period Employee Benefit Expenses | Indicator | June 30, 2025 (HKD thousand) | June 30, 2024 (HKD thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Employee benefit expenses | 3,300 | 2,500 | 32.0% | - The increase in employee benefit expenses was due to the opening of more retail stores and the hiring of more senior employees during the reporting period[61](index=61&type=chunk) [Other Operating Expenses](index=21&type=section&id=%E5%85%B6%E4%BB%96%E7%B6%93%E7%87%9F%E9%96%8B%E6%94%AF) Other operating expenses increased, primarily attributable to the opening of two additional stores during the reporting period Other Operating Expenses | Indicator | June 30, 2025 (HKD thousand) | June 30, 2024 (HKD thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Other operating expenses | 3,900 | 3,000 | 30.0% | - The increase in other operating expenses was due to the opening of two additional stores during the reporting period[62](index=62&type=chunk) [Finance Costs](index=22&type=section&id=%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) Finance costs decreased, mainly because no additional loan interest was incurred for the six months ended June 30, 2025 Finance Costs | Indicator | June 30, 2025 (HKD thousand) | June 30, 2024 (HKD thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Finance costs | 98 | 182 | -46.2% | - The decrease in finance costs was mainly due to no further loan interest being incurred for the six months ended June 30, 2025[63](index=63&type=chunk) [Loss for the Period](index=22&type=section&id=%E6%9C%9F%E5%85%A7%E虧%E6%90%8D) The loss for the period increased due to higher employee benefits from wholesale expansion, increased operating expenses from new stores, and an impairment loss of approximately HKD 2,200 thousand on trade receivables Loss for the Period | Indicator | June 30, 2025 (HKD thousand) | June 30, 2024 (HKD thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Loss for the period | (3,900) | (3,400) | 14.7% | - The increase in loss was mainly due to increased employee benefit expenses from wholesale business expansion, increased other operating expenses from new store openings, and an impairment loss on trade receivables of approximately **HKD 2,200 thousand** recognized under the expected credit loss model[64](index=64&type=chunk) [Liquidity, Financial and Capital Structure](index=23&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%E6%9E%B6%E6%A7%8B) As of June 30, 2025, the Group's total borrowings were approximately HKD 1,700 thousand, with a gearing ratio of 8.3%, net current assets of HKD 10,100 thousand, and a current ratio of approximately 2.3 times, maintaining a prudent financial policy Liquidity, Financial and Capital Structure | Indicator | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Total borrowings | HKD 1,700 thousand | HKD 1,700 thousand | No change | | Gearing ratio | 8.3% | 7.1% | Increase of 1.2 percentage points | | Net current assets | HKD 10,100 thousand | HKD 14,400 thousand | Decrease of HKD 4,300 thousand | | Current ratio | 2.3 times | 3.0 times | Decrease of 0.7 times | - The Group's operations are primarily financed by revenue generated from its business operations, available bank balances and cash, and interest-bearing borrowings[66](index=66&type=chunk) [2024 Placing](index=24&type=section&id=2024%20Placing) The Company completed a placing of 43,338,240 new shares at HKD 0.25 per share on October 31, 2024, raising net proceeds of approximately HKD 10,200 thousand for loan repayment and business operations - The Company completed the placing of **43,338,240 new shares** at a placing price of **HKD 0.25 per share** on October 31, 2024[67](index=67&type=chunk) Use of Proceeds from 2024 Placing | Purpose | Net Proceeds (HKD thousand) | Utilized as of Dec 31, 2024 (HKD thousand) | Utilized as of June 30, 2025 (HKD thousand) | Unutilized as of June 30, 2025 (HKD thousand) | | :--- | :--- | :--- | :--- | :--- | | Repayment of loans | 2,700 | (2,700) | – | – | | Business operations | 7,500 | (3,346) | (4,154) | – | | **Total** | **10,200** | **(6,046)** | **(4,154)** | **–** | [2024 Subscription](index=24&type=section&id=2024%20Subscription) The Company's 2024 subscription agreement with China Mining United Holdings Group Limited was terminated on May 30, 2025, after multiple extensions, due to the subscriber needing more time to meet compliance requirements - The Company's 2024 subscription agreement with China Mining United Holdings Group Limited was terminated on **May 30, 2025**, after multiple extensions[69](index=69&type=chunk)[70](index=70&type=chunk) - The termination was due to the subscriber requiring more time to satisfy applicable compliance requirements[70](index=70&type=chunk) [Pledge of Assets](index=25&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, the Group had not pledged any assets to secure other borrowings - As of June 30, 2025, the Group had not pledged any assets to secure other borrowings of the Group[72](index=72&type=chunk) [Exchange Rate Risk](index=25&type=section&id=%E5%8C%AF%E7%8E%87%E9%A2%A8%E9%9A%AA) The Group's revenue, costs, and expenses are denominated in HKD and CAD, and management believes there is no significant foreign exchange risk, with no financial instruments used for hedging - The Group's revenue, costs, and expenses are denominated in **HKD** and **CAD**, and management believes there is no significant foreign exchange risk[73](index=73&type=chunk) - As of June 30, 2025, the Group did not use any financial instruments to hedge foreign exchange risk[73](index=73&type=chunk) [Future Plans for Material Investments and Capital Assets](index=26&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2%E4%B9%8B%E6%9C%AA%E4%BE%86%E8%A8%88%E5%8A%83) As of the six months ended June 30, 2025, the Group currently has no other material investment plans - As of the six months ended June 30, 2025, the Group currently has no other material investment plans[74](index=74&type=chunk) [Contingent Liabilities](index=26&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group had no material contingent liabilities - As of June 30, 2025, the Group had no material contingent liabilities[75](index=75&type=chunk) [Capital Commitments](index=26&type=section&id=%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94) As of June 30, 2025, the Group had no material capital commitments - As of June 30, 2025, the Group had no material capital commitments[76](index=76&type=chunk) [Employees and Remuneration Policy](index=26&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%87%91%E6%94%BF%E7%AD%96) As of June 30, 2025, the total number of employees decreased to 22; the Group offers competitive remuneration, including internal promotion, share options, and performance bonuses, to attract and retain talent Employee Headcount | Indicator | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Total number of employees | 22 | 24 | Decrease of 2 employees | - The Group provides competitive remuneration packages to its employees, including internal promotion opportunities, share options, and performance bonuses, to attract, develop, and retain highly capable employees[77](index=77&type=chunk) [Material Investments Held](index=26&type=section&id=%E6%89%80%E6%8C%81%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87) For the six months ended June 30, 2025, the Group held no material investments - For the six months ended June 30, 2025, the Group held no material investments[78](index=78&type=chunk) [Material Acquisitions or Disposals](index=26&type=section&id=%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E6%88%96%E5%87%BA%E5%94%AE) For the six months ended June 30, 2025, the Group had no material acquisitions or disposals of subsidiaries and associated companies - For the six months ended June 30, 2025, the Group had no material acquisitions or disposals of subsidiaries and associated companies[79](index=79&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) The Company complied with all applicable code provisions of the Corporate Governance Code in Appendix C1 of the GEM Listing Rules, except for the vacant Chairman position; Mr. Zhou Yifeng was appointed CEO - The Company has complied with all applicable code provisions of the Corporate Governance Code set out in Appendix C1 to the GEM Listing Rules, except for the position of Chairman which has remained vacant[80](index=80&type=chunk)[81](index=81&type=chunk) - Mr. Zhou Yifeng was appointed as the Chief Executive Officer of the Company with effect from November 12, 2024[81](index=81&type=chunk) [Code of Conduct for Directors' Securities Transactions](index=27&type=section&id=%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9B%B8%E9%97%9C%E4%B9%8B%E6%93%8D%E5%AE%88%E5%AE%88%E5%89%87) The Group adopted the required dealing standards from the GEM Listing Rules as its code of conduct for directors' securities transactions, with all directors confirming compliance during the review period - The Group has adopted the required dealing standards set out in Rules 5.48 to 5.67 of the GEM Listing Rules as its code of conduct for directors' securities transactions in the Company's shares[83](index=83&type=chunk) - Following specific enquiry with all Directors, all Directors have confirmed that they have complied with the required dealing standards and the code of conduct for directors' securities transactions during the review period[83](index=83&type=chunk) [Interests in Competing Business](index=27&type=section&id=%E6%96%BC%E7%AB%B6%E7%88%AD%E6%A5%AD%E5%8B%99%E4%B9%8B%E6%AC%8A%E7%9B%8A) For the six months ended June 30, 2025, no Directors or their close associates engaged in any business that competed or might compete with the Group's business - For the six months ended June 30, 2025, none of the Directors or any of their respective close associates were engaged in any business that directly or indirectly competed or might compete with the business of the Group[84](index=84&type=chunk) [Share Option Scheme](index=27&type=section&id=%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%A8%88%E5%8A%83) The Company's share option scheme, effective May 30, 2016, for ten years, had total shares issuable under options and awards representing approximately 0.53% of the weighted average issued shares as of June 30, 2025 - The Share Option Scheme became effective on **May 30, 2016**, for a period of **ten years**[86](index=86&type=chunk) Share Option Scheme Summary | Item | January 1, 2025 | June 30, 2025 | | :--- | :--- | :--- | | Total number of share options authorized for grant under the scheme (shares) | 1,592,114 | 1,592,114 | | Total number of shares issuable under options and awards as of period-end (shares) | 807,886 | 807,886 | | Percentage of weighted average issued shares | - | Approximately **0.53%** | [Use of Proceeds from Placing of New Shares under General Mandate in 2024](index=29&type=section&id=%E4%BA%8C%E9%9B%B6%E4%BA%8C%E5%9B%9B%E5%B9%B4%E6%A0%B9%E6%93%9A%E7%89%B9%E5%88%A5%E6%8E%88%E6%AC%8A%E9%85%8D%E5%94%AE%E6%96%B0%E8%82%A1%E6%89%80%E5%BE%97%E6%AC%BE%E9%A0%85%E7%94%A8%E9%80%94) The net proceeds of approximately HKD 10,200 thousand from the 2024 placing were fully utilized for loan repayment (HKD 2,700 thousand) and business operations (HKD 7,500 thousand) - The net proceeds of approximately **HKD 10,200,000** from the 2024 placing were fully utilized for loan repayment and business operations[88](index=88&type=chunk)[90](index=90&type=chunk) Use of Proceeds from 2024 Placing | Purpose | Net Proceeds (HKD thousand) | Utilized as of Dec 31, 2024 (HKD thousand) | Utilized as of June 30, 2025 (HKD thousand) | Unutilized as of June 30, 2025 (HKD thousand) | | :--- | :--- | :--- | :--- | :--- | | Repayment of loans | 2,700 | (2,700) | – | – | | Business operations | 7,500 | (3,346) | (4,154) | – | | **Total** | **10,200** | **(6,046)** | **(4,154)** | **–** | [Directors' and Chief Executive's Interests and/or Short Positions in the Shares, Underlying Shares and Debentures of the Company](index=30&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E6%9C%80%E9%AB%98%E8%A1%8C%E6%94%BF%E4%BA%BA%E5%93%A1%E6%96%BC%E6%9C%AC%E5%85%AC%E5%8F%B8%E7%9A%84%E8%82%A1%E4%BB%BD%E3%80%81%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E5%8F%8A%E5%82%B5%E6%AC%8A%E8%AD%89%E7%9A%84%E6%AC%8A%E7%9B%8A%E5%8F%8A%E2%95%B1%E6%88%96%E6%B7%A1%E5%80%89) As of June 30, 2025, Non-executive Director Mr. Cen Ziyang beneficially owned 6,750 ordinary shares, representing approximately 0.00% of the share capital, with no other directors or chief executives holding disclosable interests or short positions Directors' and Chief Executive's Interests | Director Name | Capacity | Number of Shares Held (Ordinary Shares) | Approximate Percentage of Interest | | :--- | :--- | :--- | :--- | | Mr. Cen Ziyang | Beneficial owner | 6,750 | 0.00% | [Substantial Shareholders' and Other Persons' Interests and/or Short Positions in the Shares and Underlying Shares of the Company](index=31&type=section&id=%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1%E5%8F%8A%E5%85%B6%E4%BB%96%E4%BA%BA%E5%A3%AB%E6%96%BC%E6%9C%AC%E5%85%AC%E5%8F%B8%E8%82%A1%E4%BB%BD%E5%8F%8A%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E7%9A%84%E6%AC%8A%E7%9B%8A%E5%8F%8A%E2%95%B1%E6%88%96%E6%B7%A1%E5%80%89) As of June 30, 2025, Qunying International Limited was a substantial shareholder, beneficially owning 26,464,939 Company shares, representing 17.45% of the issued share capital Substantial Shareholders' Interests | Name | Capacity/Nature of Interest | Number of Shares Held | Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Qunying International Limited | Beneficial owner | 26,464,939 | 17.45% | [Purchase, Sale or Redemption of the Company's Listed Securities or Sale of Treasury Shares](index=31&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8%E6%88%96%E5%87%BA%E5%94%AE%E5%BA%AB%E5%AD%98%E8%82%A1%E4%BB%BD) For the six months ended June 30, 2025, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, and the Company held no treasury shares - For the six months ended June 30, 2025, the Company did not redeem any of its own listed securities, nor did the Company or any of its subsidiaries purchase or sell any of the Company's listed securities[93](index=93&type=chunk) - As of June 30, 2025, the Company held no treasury shares[94](index=94&type=chunk) Other Information [Disclosure of Changes in Directors' Information](index=32&type=section&id=%E6%8A%AB%E9%9C%B2%E8%91%A3%E4%BA%8B%E8%B3%87%E6%96%99%E8%AE%8A%E5%8B%95) Changes in directors' information occurred from December 31, 2024, to the report date, as required by GEM Listing Rule 17.50A(1) - In accordance with Rule 17.50A(1) of the GEM Listing Rules, changes in directors' information from December 31, 2024, to the date of this report are set out below[95](index=95&type=chunk) [Audit Committee](index=32&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Audit Committee, comprising three independent non-executive directors, reviewed the Group's interim results for the six months ended June 30, 2025, confirming financial statements were prepared according to applicable accounting standards - The Audit Committee currently comprises three members (namely Mr. Choi Ho Yan (Chairman), Mr. Kung Wai Sze, and Mr. Yiu Yu Hong), all of whom are independent non-executive directors[95](index=95&type=chunk) - The Audit Committee has reviewed the Group's interim results for the six months ended June 30, 2025, and is of the opinion that the unaudited condensed consolidated financial statements have been prepared in accordance with applicable accounting standards, the requirements under the GEM Listing Rules, and other applicable legal requirements[95](index=95&type=chunk) [Events After Reporting Period](index=32&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) Subsequent to the reporting period, Mr. Chan Ting Leut was appointed as a director of the Company's wholly-owned subsidiaries on January 17, 2025, and June 30, 2025 - On January 17, 2025, Mr. Chan Ting Leut was appointed as a director of Worldwide Allies Group Limited, Art Kingdom Limited, and Wealthy Creation Limited, all of which are wholly-owned subsidiaries of the Company[98](index=98&type=chunk) - On June 30, 2025, Mr. Chan Ting Leut was appointed as a director of Allied Bless Limited, a wholly-owned subsidiary of the Company[98](index=98&type=chunk) [Publication of Interim Results and Interim Report on the Stock Exchange and Company Website](index=33&type=section&id=%E6%96%BC%E8%81%AF%E4%BA%A4%E6%89%80%E5%8F%8A%E6%9C%AC%E5%85%AC%E5%8F%B8%E7%B6%B2%E7%AB%99%E5%88%8A%E7%99%BC%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%8F%8A%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) The Company's unaudited interim results announcement for the six months ended June 30, 2025, has been published on the Stock Exchange and Company websites, with the interim report to be dispatched and published in due course - The Company's unaudited interim results announcement for the six months ended June 30, 2025, has been published on the Stock Exchange website www.hkexnews.hk and the Company's website www.jimugrouphk.com[99](index=99&type=chunk)