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，並表明概不會就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。 CYBERNAUT INTERNATIONAL HOLDINGS COMPANY LIMITED 截至二零二四年十二月三十一日止年度年報 進一步補充公告 茲提述賽伯樂國際控股有限公司（「本公司」，連同其附屬公司統稱「本集團」）於 二零二五年六月二十日刊發之截至二零二四年十二月三十一日止年度之年報（「年 報」）。除另有指明外，本公告所用詞彙與年報界定者具相同涵義。 除年報所提供資料外，本公司董事（「董事」）會（「董事會」）謹此就年報「企業管治 報告」一節「風險管理及內部控制」分節及「綜合財務報表附註」一節附註2（過往年 度調整）提供進一步資料。 本公司內部控制系統中識別的不足 賽伯樂國際控股有限公司 （於開曼群島註冊成立之有限公司） （股份代號：1020） 於二零二五年七月，本公司已聘請一名新專責財務總監，其將負責（其中包括）監 管本公司會計及財務職能以及審閱本集團的財務報表。此舉將彌補因缺乏專責財 務總監而導 ...

[Business Overview](index=1&type=section&id=Business%20Overview) The company achieved significant revenue growth, stable core product performance, and expanded its business scope with new commercialized products and clinical trial advancements [Business Highlights During the Reporting Period](index=1&type=section&id=Business%20Highlights%20During%20the%20Reporting%20Period) The company achieved significant revenue growth, stable core product performance, and expanded its business scope with new commercialized products and clinical trial advancements - The company's operating revenue reached **RMB 294.0 million**, a **75.4% year-on-year increase**, primarily driven by stable growth of core products and incremental contributions from Alcon-introduced products[4](index=4&type=chunk) - Zerviate® (0.24% Cetirizine Ophthalmic Solution) received NMPA approval for commercialization, currently the only FDA-approved anti-allergic ophthalmic drug for patients aged two years and above[4](index=4&type=chunk) - OT-703 (ILUVIEN®, Fluocinolone Acetonide Intravitreal Implant) was approved by CDE for inclusion in the Hainan Boao Lecheng International Medical Tourism Pilot Zone for real-world study, with patient enrollment initiated[4](index=4&type=chunk) - The Phase III clinical trial application for self-developed product OT-802 (Pilocarpine Hydrochloride) for presbyopia indication was approved by CDE, potentially filling a market gap for commercialized innovative drugs in China's presbyopia field[5](index=5&type=chunk) - During the reporting period, six of the company's products received production approval, and the local production of YUTIQ® entered the review and public announcement phase[5](index=5&type=chunk) [Financial Summary](index=2&type=section&id=Financial%20Summary) The Group's revenue significantly increased, but adjusted net loss slightly widened due to rising cost of sales, while bank balances and other financial assets remained high Key Financial Indicators Comparison (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change | Primary Reason | | :--- | :--- | :--- | :--- | :--- | | Revenue | 294.0 | 167.6 | 75.4% increase | Significant growth in ophthalmic product sales and CDMO services, partially offset by reduced pharmaceutical product promotion service revenue | | Adjusted Net Loss | 108.0 | 100.8 | 7.2 increase | Cost of sales (including intangible asset amortization) increased slightly more than revenue growth | | Bank Balances and Other Financial Assets | 578.2 | N/A | N/A | As of June 30, 2025 | [Company Overview](index=3&type=section&id=Company%20Overview) Ocumension Therapeutics is a China-focused ophthalmic pharmaceutical platform dedicated to developing and commercializing first-in-class or best-in-class therapies [Company Positioning and Product Pipeline](index=3&type=section&id=Company%20Positioning%20and%20Product%20Pipeline) Ocumension Therapeutics is a China-focused ophthalmic pharmaceutical platform with a comprehensive ophthalmic drug pipeline covering anterior and posterior segment diseases - The company is positioned as a China ophthalmic pharmaceutical platform company, with a vision to provide world-class holistic drug solutions to meet China's ophthalmic medical needs[8](index=8&type=chunk) - A comprehensive ophthalmic drug pipeline has been established, with **34 drug assets**, including **21 products in commercialization**, **3 products in Phase III clinical trials**, and **2 products entering commercial registration**[8](index=8&type=chunk) - Core product YUTIQ® (0.18mg Fluocinolone Acetonide Intravitreal Implant) has been approved for commercialization in mainland China and included in the National Medical Insurance Catalog, while the innovative anti-allergic drug Zerviate® has also been approved for commercialization[8](index=8&type=chunk) Overview of Selected Ophthalmic Drug Pipeline | Pipeline Category | Product Name | Mechanism of Action | Indication | Clinical/Market Status | | :--- | :--- | :--- | :--- | :--- | | Uveitis, Retinal Diseases | OT-401 YUTIQ® | Fluocinolone Acetonide Intravitreal Implant | Chronic non-infectious uveitis affecting the posterior segment of the eye | Marketed | | Uveitis, Retinal Diseases | OT-702 Boyoujing® | Aflibercept Ophthalmic Solution | Wet age-related macular degeneration, diabetic macular edema | Marketed | | Refractive Correction | OT-802 | Pilocarpine Hydrochloride Ophthalmic Solution | Presbyopia | Phase III/RWE | | Keratoconjunctivitis | OT-1001 Zerviate® | Cetirizine Hydrochloride Ophthalmic Solution | Allergic conjunctivitis | Marketed | | Ophthalmic Surgery and Post-operative Inflammation | OT-502 Dexycu® | Dexamethasone Intracameral Suspension | Post-operative inflammation | Commercialization application submitted | [Management Discussion and Analysis](index=4&type=section&id=Management%20Discussion%20and%20Analysis) The company achieved significant revenue growth, optimized R&D investment, and expanded market coverage and brand influence during the reporting period [Business Review](index=4&type=section&id=Business%20Review) The company achieved significant revenue growth, optimized R&D investment, and expanded market coverage and brand influence during the reporting period - Operating revenue reached **RMB 294.0 million**, a **75.4% year-on-year increase**, enhancing product line depth and opening up market space[12](index=12&type=chunk) - R&D expenses amounted to **RMB 39.0 million**, a **33.6% year-on-year decrease**, with steady progress in the R&D pipeline[12](index=12&type=chunk) [R&D Performance](index=4&type=section&id=R%26D%20Performance) The company achieved significant clinical R&D progress with Zerviate® approval, OT-703 real-world study, and OT-802 entering Phase III, solidifying its leading position in innovative ophthalmic drugs - Zerviate® received NMPA approval for commercialization, currently the only FDA-approved anti-allergic ophthalmic drug for patients aged two years and above[13](index=13&type=chunk) - OT-703 was approved by CDE for inclusion in the Hainan Boao Lecheng International Medical Tourism Pilot Zone for real-world data application, with patient enrollment initiated[13](index=13&type=chunk) - The Phase III clinical trial application for self-developed product OT-802 (for presbyopia indication) was approved by CDE[13](index=13&type=chunk) - The company currently has **three products in Phase III clinical trials** and **two products in commercial registration**, ranking among the top innovative pharmaceutical companies in China for ophthalmic drugs in Phase III clinical and registration stages[13](index=13&type=chunk) [Progress of Key Candidate Drugs](index=5&type=section&id=Progress%20of%20Key%20Candidate%20Drugs) OT-703's real-world study has been approved and initiated patient enrollment, while OT-802's Phase III clinical trial application was approved, expected to start in early 2026, demonstrating the company's strategic focus in DME and presbyopia - The real-world study application for OT-703 (Fluocinolone Acetonide Intravitreal Implant) was approved by CDE in May 2025, with patient enrollment initiated in the Hainan Boao Lecheng International Medical Tourism Pilot Zone, and further patient enrollment expected in H2 2025[14](index=14&type=chunk)[15](index=15&type=chunk) - The Phase III clinical trial application for OT-802 (Pilocarpine Hydrochloride Ophthalmic Solution) was approved by CDE in June 2025, with Phase III clinical trials expected to commence in early 2026[15](index=15&type=chunk)[16](index=16&type=chunk) [Commercialization Performance](index=5&type=section&id=Commercialization%20Performance) The company successfully integrated Alcon-introduced products, actively expanded hospital coverage and market promotion, achieving rapid sales growth and establishing a nationwide commercial network - The acquired and licensed Alcon product portfolio has been integrated into the company's commercialization landscape, accelerating hospital coverage expansion and promoting market access for new products like Zerviate®[17](index=17&type=chunk) - Total revenue reached **RMB 294.0 million**, a **75.4% year-on-year increase**, primarily from commercialized products[17](index=17&type=chunk) - The company has achieved coverage of **21,535 hospitals nationwide**, including **2,799 tertiary hospitals**, with a commercial team of over **290 people**, completing nationwide commercial network coverage[17](index=17&type=chunk) [Production Performance](index=5&type=section&id=Production%20Performance) Six products received production approval, commercial batch production is proceeding orderly, and YUTIQ®'s local production entered the review and public announcement phase, demonstrating commitment to providing quality ophthalmic drugs - Six products have received production approval, with commercial batch production proceeding as planned[18](index=18&type=chunk) - The local production of YUTIQ® has entered the review and public announcement phase[18](index=18&type=chunk) [Future Development and Outlook](index=6&type=section&id=Future%20Development%20and%20Outlook) The company aims to accelerate new product R&D and commercialization, optimize production, promote core products, and expand international and online channels to achieve its vision as a leader in ophthalmology [Development Goals for H2 2025](index=6&type=section&id=Development%20Goals%20for%20H2%202025) The company aims to accelerate new product R&D and commercialization, optimize production, promote core products, and expand international and online channels to achieve its vision as a leader in ophthalmology - Accelerate new product R&D and commercialization: Increase investment to ensure at least one NDA approval and maintain a continuous rhythm of new product launches[19](index=19&type=chunk) - Optimize production and supply chain management: Focus on commercial batch production at the Suzhou factory, ensuring stable supply and product quality, and improving production efficiency and cost reduction[19](index=19&type=chunk) - Promote core product YUTIQ®: Intensify promotion efforts, expand coverage, and increase market penetration[19](index=19&type=chunk) - Strengthen marketing and promotion for other drugs: Increase marketing and promotion for Xelpros®, Xelpros Plus®, Betimol®, Emadine®, and AzaSite®, consolidating leadership in niche markets[19](index=19&type=chunk) - Expand international vision: Actively explore international markets, seek cooperation opportunities with overseas partners, and expand international business through out-licensing innovative products[20](index=20&type=chunk) - Continuous innovation and technological leadership: Continuously invest in R&D, exploring new therapeutic areas and methods[20](index=20&type=chunk) - Expand online OTC channels: Improve online OTC channels to provide end-users with a more convenient and efficient purchasing experience[21](index=21&type=chunk) [Management Discussion and Analysis - Financial Performance](index=8&type=section&id=Management%20Discussion%20and%20Analysis%20-%20Financial%20Performance) The company's revenue significantly increased, but adjusted net loss slightly widened due to rising cost of sales, while bank balances and other financial assets remained high [Revenue](index=8&type=section&id=Revenue) The Group's revenue significantly increased, driven by strong ophthalmic product sales and CDMO services, partially offset by a change in promotion service revenue Revenue Components (For the six months ended June 30) | Revenue Source | 2025 (RMB thousand) | 2024 (RMB thousand) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Sales of ophthalmic products | 284,680 | 150,013 | 89.8% increase | | Pharmaceutical product promotion services | 568 | 11,859 | 95.2% decrease | | Sales-based royalty income | 2,108 | 2,291 | 8.0% decrease | | CDMO services | 6,677 | 3,460 | 93.0% increase | | **Total Revenue** | **294,033** | **167,623** | **75.4% increase** | - Revenue growth was primarily due to a significant increase in sales of ophthalmic products (including Xelpros®, AzaSite®, and products under the Alcon transaction) and CDMO services[22](index=22&type=chunk) - The decrease in pharmaceutical product promotion service revenue was due to a change in revenue recognition resulting from a business model shift for Xelpros® and Xelpros Plus®[22](index=22&type=chunk) [Cost of Sales](index=8&type=section&id=Cost%20of%20Sales) Cost of sales significantly increased, primarily due to higher ophthalmic product sales, Alcon transaction-related license amortization costs, and a business model shift - Cost of sales increased from **RMB 68.4 million** in the same period of 2024 to **RMB 188.4 million** in 2025[24](index=24&type=chunk) - The increase was due to higher costs of sales of ophthalmic products, increased amortization costs for licenses related to the Alcon transaction, and a business model shift for Xelpros® and Xelpros Plus® from promotion services to direct sales[24](index=24&type=chunk) [Gross Profit](index=9&type=section&id=Gross%20Profit) Despite the increase in cost of sales, gross profit still achieved a slight increase, consistent with overall revenue growth - Gross profit increased by **6.5%** from **RMB 99.2 million** in the same period of 2024 to **RMB 105.6 million** in 2025[25](index=25&type=chunk) [Other Income](index=9&type=section&id=Other%20Income) Other income primarily consists of bank interest and government grants, which significantly decreased this period due to reduced bank deposits and lower interest rates - Other income decreased by approximately **RMB 10.3 million** from **RMB 15.4 million** in the same period of 2024 to **RMB 5.1 million** in 2025[26](index=26&type=chunk) - This was primarily due to reduced bank deposits and lower deposit interest rates[26](index=26&type=chunk) [Other Losses](index=9&type=section&id=Other%20Losses) Other losses slightly increased, mainly due to higher net foreign exchange losses resulting from currency fluctuations - Other losses increased from **RMB 0.3 million** in the same period of 2024 to **RMB 0.7 million** in 2025[27](index=27&type=chunk) - This was primarily due to increased net foreign exchange losses from currency fluctuations, partially offset by an increase in the fair value of other financial assets[27](index=27&type=chunk) [Selling and Marketing Expenses](index=9&type=section&id=Selling%20and%20Marketing%20Expenses) Selling and marketing expenses slightly increased, primarily reflected in the growth of salaries and benefits, and marketing and promotion fees Selling and Marketing Expenses Components (For the six months ended June 30) | Component | 2025 (RMB thousand) | 2024 (RMB thousand) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Salaries and benefits | 64,440 | 52,360 | 23.1% increase | | Share-based payments | 8,159 | 18,347 | 55.6% decrease | | Marketing and promotion | 31,945 | 22,528 | 41.8% increase | | Others | 12,460 | 16,678 | 25.3% decrease | | **Total Selling and Marketing Expenses** | **117,004** | **109,913** | **6.4% increase** | - Total selling and marketing expenses slightly increased from **RMB 109.9 million** in the same period of 2024 to **RMB 117.0 million** in 2025[28](index=28&type=chunk) [Research and Development Expenses](index=10&type=section&id=Research%20and%20Development%20Expenses) R&D expenses significantly decreased, primarily due to lower share-based payments and third-party contractor costs R&D Expenses Components (For the six months ended June 30) | Component | 2025 (RMB thousand) | 2024 (RMB thousand) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Third-party contractor costs | 11,875 | 19,656 | 39.6% decrease | | Staff costs | 19,188 | 27,709 | 30.7% decrease | | Depreciation and amortization | 4,949 | 5,423 | 8.7% decrease | | Others | 2,974 | 5,917 | 49.7% decrease | | **Total R&D Expenses** | **38,986** | **58,705** | **33.6% decrease** | - R&D expenses decreased by **33.6%** from **RMB 58.7 million** in the same period of 2024 to **RMB 39.0 million** in 2025[30](index=30&type=chunk) - The decrease was primarily due to a **RMB 8.5 million** reduction in share-based payments to R&D personnel and a **RMB 7.8 million** reduction in third-party contractor costs[30](index=30&type=chunk) [Administrative Expenses](index=10&type=section&id=Administrative%20Expenses) Administrative expenses decreased, primarily due to a reduction in share-based payments for administrative personnel - Administrative expenses decreased by **RMB 6.5 million** from **RMB 91.1 million** in the same period of 2024 to **RMB 84.6 million** in 2025[32](index=32&type=chunk) - This was primarily due to a reduction in share-based payments to administrative personnel[32](index=32&type=chunk) [Income Tax Expense](index=10&type=section&id=Income%20Tax%20Expense) Income tax expense remained relatively stable during the reporting period - Income tax expense remained relatively stable at **RMB 0.3 million** in both 2025 and the same period of 2024[33](index=33&type=chunk) [Loss for the Period](index=10&type=section&id=Loss%20for%20the%20Period) Loss for the period decreased year-on-year, driven by increased gross profit and reduced R&D and administrative expenses, partially offset by higher selling and marketing expenses - Loss for the period decreased by **RMB 19.0 million** from **RMB 151.3 million** in the same period of 2024 to **RMB 132.3 million** in 2025[34](index=34&type=chunk) - The decrease in loss was primarily due to a **RMB 6.4 million** increase in gross profit, a **RMB 19.7 million** decrease in R&D expenses, and a **RMB 6.5 million** decrease in administrative expenses[34](index=34&type=chunk) - This was partially offset by a **RMB 7.1 million** increase in selling and marketing expenses compared to the same period of 2024[34](index=34&type=chunk) [Non-IFRS Measures](index=11&type=section&id=Non-IFRS%20Measures) The company uses non-IFRS adjusted net loss to exclude non-cash items, providing a clearer operational assessment for investors, with adjusted net loss slightly widening this period Non-IFRS Adjusted Net Loss (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Loss for the period | (132,320) | (151,341) | | Add: Share-based payments | 24,320 | 50,572 | | **Non-IFRS Adjusted Net Loss for the Period** | **(108,000)** | **(100,769)** | Condensed Consolidated Statement of Financial Position Data (As of June 30, 2025) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total current assets | 817,686 | 978,795 | | Total non-current assets | 3,079,244 | 2,995,009 | | Total assets | 3,896,930 | 3,973,804 | | Total current liabilities | 154,667 | 155,001 | | Total non-current liabilities | 89,156 | 45,186 | | Total liabilities | 243,823 | 200,187 | | Net assets | 3,653,107 | 3,773,617 | [Financial Position and Liquidity](index=12&type=section&id=Financial%20Position%20and%20Liquidity) The company maintains a healthy financial position, primarily funded by equity and product sales, with sufficient cash to support operations and R&D [Trade Receivables](index=12&type=section&id=Trade%20Receivables) The increase in trade receivables is largely consistent with revenue growth, with most balances less than one year old - The company provides an average credit period of **30 to 90 days** to its trade customers[36](index=36&type=chunk) - As of June 30, 2025, the increase in trade receivables was largely consistent with revenue growth[38](index=38&type=chunk) [Trade Payables](index=12&type=section&id=Trade%20Payables) Most trade payables have an aging period of less than one year - Most trade payables have an aging period of less than one year[39](index=39&type=chunk) [Working Capital and Funding Sources](index=12&type=section&id=Working%20Capital%20and%20Funding%20Sources) The company primarily obtains working capital from equity financing and product sales, maintaining adequate cash for operations and R&D activities - Cash is primarily used for daily operations, selling and marketing, drug clinical trial R&D, and maintenance and upgrades of production equipment at the Suzhou factory[40](index=40&type=chunk) - Cash is primarily obtained through equity financing, sales of ophthalmic products, pharmaceutical product promotion services, royalty income, and CDMO services[40](index=40&type=chunk) - As of June 30, 2025, cash and cash equivalents amounted to **RMB 458.1 million** (December 31, 2024: RMB 769.2 million)[40](index=40&type=chunk) [Borrowings](index=12&type=section&id=Borrowings) Borrowings increased, with new loan agreements entered into with banks at interest rates ranging from 0.35% to 0.76% below the one-year loan prime rate - As of June 30, 2025, loans recorded amounted to **RMB 49.0 million** (December 31, 2024: RMB 16.5 million)[41](index=41&type=chunk) - During the reporting period, new loan agreements were entered into with banks, with interest rates ranging from **0.35% to 0.76% below the one-year loan prime rate**[41](index=41&type=chunk) [Capital Commitments](index=12&type=section&id=Capital%20Commitments) The company's capital commitments for property, plant, and equipment decreased - As of June 30, 2025, contractual capital commitments for the acquisition of property, plant, and equipment amounted to **RMB 4.2 million** (December 31, 2024: RMB 5.0 million)[42](index=42&type=chunk) [Contingent Liabilities](index=12&type=section&id=Contingent%20Liabilities) As of the end of the reporting period, the company had no significant contingent liabilities - As of June 30, 2025, the company had no significant contingent liabilities, guarantees, or litigation[43](index=43&type=chunk) [Pledge of Assets](index=13&type=section&id=Pledge%20of%20Assets) As of the end of the reporting period, the company had no pledge of assets - As of June 30, 2025, the company had no pledge of assets[44](index=44&type=chunk) [Gearing Ratio](index=13&type=section&id=Gearing%20Ratio) The company is in a net cash position, rendering the gearing ratio inapplicable - As of June 30, 2025, the company was in a net cash position, thus the gearing ratio is not applicable[45](index=45&type=chunk) [Material Investments, Acquisitions and Disposals](index=13&type=section&id=Material%20Investments,%20Acquisitions%20and%20Disposals) During the reporting period, the company had no other material investments, acquisitions, or disposals - The company had no other material investments, significant acquisitions or disposals of subsidiaries, associates, and joint ventures during the six months ended June 30, 2025[46](index=46&type=chunk) [Future Plans for Material Investments or Capital Assets](index=13&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) As of the announcement date, the company has no specific future plans for material capital expenditures, investments, or capital assets - As of the date of this announcement, the company has no specific future plans for material capital expenditures, investments, or capital assets[47](index=47&type=chunk) [Foreign Exchange](index=13&type=section&id=Foreign%20Exchange) The company faces foreign currency risk and has implemented foreign currency hedging measures under its treasury policy, continuously monitoring and managing foreign exchange risk - The company faces foreign currency risk as certain bank balances and cash, trade and other receivables, and trade and other payables are denominated in foreign currencies[48](index=48&type=chunk) - The Group currently implements foreign currency hedging measures under its funding and treasury policy and will closely monitor foreign exchange exposure, considering more detailed measures to hedge significant foreign currency exposure[48](index=48&type=chunk) [Employees and Remuneration](index=13&type=section&id=Employees%20and%20Remuneration) The company's employee count increased, total remuneration costs remained stable, with comprehensive training and performance-based compensation, including share incentive plans [Number of Employees and Remuneration Policy](index=13&type=section&id=Number%20of%20Employees%20and%20Remuneration%20Policy) The company's employee count increased, total remuneration costs remained stable, with comprehensive training and performance-based compensation, including share incentive plans - As of June 30, 2025, the company had **505 employees** (June 30, 2024: 477 employees)[49](index=49&type=chunk) - For the six months ended June 30, 2025, total remuneration costs (including share-based payments) amounted to **RMB 150.3 million** (June 30, 2024: RMB 149.9 million)[49](index=49&type=chunk) Employee Functional Distribution (As of June 30, 2025) | Function | Number of Employees | Percentage of Total | | :--- | :--- | :--- | | Commercial | 291 | 57.6% | | R&D | 55 | 10.9% | | Manufacturing | 126 | 25.0% | | Management and Administration | 33 | 6.5% | | **Total** | **505** | **100%** | - The company provides formal and comprehensive company-level and department-level training, and regularly reviews and determines employee remuneration and benefits based on employee performance, qualifications, responsibilities, and market salary levels of comparable companies[50](index=50&type=chunk) - The company has adopted ESOP, RSU plans, the 2021 Share Option Scheme, the 2021 Share Award Scheme, and the 2024 Share Award Scheme to provide incentives to employees[51](index=51&type=chunk) [Condensed Consolidated Financial Statements](index=15&type=section&id=Condensed%20Consolidated%20Financial%20Statements) The company's revenue significantly increased, but cost of sales also rose, leading to a slight increase in gross profit. Reduced R&D and administrative expenses offset some selling and marketing expense growth, narrowing the loss for the period [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=15&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) Revenue significantly increased, but higher cost of sales led to a modest gross profit rise. Reduced R&D and administrative expenses helped narrow the loss for the period Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 294,033 | 167,623 | | Cost of sales | (188,386) | (68,421) | | Gross profit | 105,647 | 99,202 | | Other income | 5,116 | 15,443 | | Other gains and losses | (727) | (267) | | Selling and marketing expenses | (117,004) | (109,913) | | Research and development expenses | (38,986) | (58,705) | | Administrative expenses | (84,573) | (91,087) | | Finance costs | (824) | (1,827) | | Loss before tax | (132,028) | (151,076) | | Income tax expense | (292) | (265) | | **Loss for the period** | **(132,320)** | **(151,341)** | | Total comprehensive expense for the period | (131,152) | (199,662) | | Loss per share (RMB) | (0.17) | (0.23) | [Condensed Consolidated Statement of Financial Position](index=16&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) Total assets slightly decreased, with reduced current assets but increased non-current assets. Total liabilities rose, leading to a slight decrease in net assets Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Property, plant and equipment | 426,802 | 435,016 | | Right-of-use assets | 41,602 | 16,514 | | Intangible assets | 2,493,946 | 2,438,120 | | **Current Assets** | | | | Inventories | 66,415 | 45,518 | | Trade and other receivables | 173,000 | 164,072 | | Bank balances and cash | 458,062 | 769,205 | | **Current Liabilities** | | | | Trade and other payables | 129,084 | 141,334 | | Borrowings | 10,443 | 2,056 | | **Non-current Liabilities** | | | | Borrowings | 38,526 | 14,491 | | **Net Assets** | **3,653,107** | **3,773,617** | [Notes to the Condensed Consolidated Financial Statements](index=17&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) The condensed consolidated financial statements are prepared under IAS 34 and HKEX Listing Rules, applying consistent accounting policies, with no significant impact from new IFRS amendments [Basis of Preparation and Accounting Policies](index=17&type=section&id=Basis%20of%20Preparation%20and%20Accounting%20Policies) The condensed consolidated financial statements are prepared under IAS 34 and HKEX Listing Rules, applying consistent accounting policies, with no significant impact from new IFRS amendments - The condensed consolidated financial statements have been prepared in accordance with International Accounting Standard 34 and the applicable disclosure requirements of Appendix D2 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[54](index=54&type=chunk) - The accounting policies and methods of computation are consistent with those used in the annual consolidated financial statements for 2024, except for additional changes resulting from the application of amendments to IFRS accounting standards[55](index=55&type=chunk) - The application of amendments to IFRS accounting standards during this interim period has not had a significant impact on the Group's financial position and performance for the current and prior periods and/or the disclosures contained in these condensed consolidated financial statements[56](index=56&type=chunk) [Revenue and Segment Information](index=17&type=section&id=Revenue%20and%20Segment%20Information) The Group's revenue primarily derives from ophthalmic product sales, promotion services, sales-based royalties, and CDMO services, with all external customer revenue originating from China Revenue Source Analysis (For the six months ended June 30) | Type of Goods or Services | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Sales of ophthalmic products | 284,680 | 150,013 | | Pharmaceutical product promotion services | 568 | 11,859 | | Sales-based royalty income | 2,108 | 2,291 | | Contract development and manufacturing (CDMO) services | 6,677 | 3,460 | | **Total** | **294,033** | **167,623** | - Revenue from sales of ophthalmic products is recognized when control of the goods is transferred, and revenue from pharmaceutical product promotion services is recognized when the obligation to arrange for the sale and/or delivery of pharmaceutical products under the service contract is fulfilled[59](index=59&type=chunk)[60](index=60&type=chunk) - Sales-based royalty income is recognized based on the gross margin of each sale when the customer completes the sale; CDMO service revenue is recognized when products are delivered to the customer[61](index=61&type=chunk)[62](index=62&type=chunk) - All external customer revenue of **RMB 292,771,000** (2024: RMB 165,456,000) originated from China, and all non-current assets are located in China[64](index=64&type=chunk) [Other Income and Other Gains and Losses](index=19&type=section&id=Other%20Income%20and%20Other%20Gains%20and%20Losses) Other income decreased due to lower bank interest and government grants, while other losses increased mainly from higher net foreign exchange losses Other Income and Other Gains and Losses (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | **Other Income** | | | | Bank interest income | 4,040 | 14,285 | | Government grants | 472 | 574 | | Others | 604 | 584 | | **Subtotal** | **5,116** | **15,443** | | **Other Gains and Losses** | | | | Net exchange (losses) gains | (1,967) | 725 | | Fair value changes of financial assets at fair value through profit or loss | 1,242 | (213) | | **Subtotal** | **(727)** | **(267)** | - Other income decreased primarily due to reduced bank deposits and lower deposit interest rates[26](index=26&type=chunk) - Increased net exchange losses led to an increase in other losses[27](index=27&type=chunk)[65](index=65&type=chunk) [Income Tax Expense](index=20&type=section&id=Income%20Tax%20Expense) Income tax expense remained stable, primarily involving Hong Kong and mainland China profits tax, with rates determined by local regulations Income Tax Expense (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Current tax – Hong Kong | 104 | 108 | | Current tax – China | 249 | 245 | | Over-provision in prior years | (61) | (88) | | **Total** | **292** | **265** | - Hong Kong current tax is calculated under the two-tiered profits tax regime, and China subsidiaries are taxed at a rate of **25%**[67](index=67&type=chunk) [Trade Receivables](index=20&type=section&id=Trade%20Receivables) The aging analysis of trade receivables shows that most receivables are within 90 days, reflecting a healthy collection cycle Aging Analysis of Trade Receivables (As of June 30) | Aging | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | 0 to 90 days | 150,029 | 125,470 | | 91 to 180 days | – | 218 | | Over 180 days | 1,111 | – | | **Total** | **151,140** | **125,688** | [Bank Balances and Cash](index=21&type=section&id=Bank%20Balances%20and%20Cash) Total bank balances and cash decreased, primarily due to a reduction in time deposits Bank Balances and Cash (As of June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Cash at bank | 380,110 | 255,118 | | Time deposits | 77,952 | 514,087 | | **Total** | **458,062** | **769,205** | [Trade Payables](index=21&type=section&id=Trade%20Payables) The aging analysis of trade payables shows that most payments are within 30 days, reflecting the company's relatively fast payment cycle Aging Analysis of Trade Payables (As of June 30) | Aging | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | 0 to 30 days | 9,735 | 30,888 | | 31 to 60 days | 1,626 | 2,798 | | Over 60 days | 375 | 733 | | **Total** | **11,736** | **34,419** | - The Group's average credit period for purchases of goods/services is **60 days**[71](index=71&type=chunk) [Borrowings](index=22&type=section&id=Borrowings) Total borrowings increased, with most having repayment terms exceeding one year, indicating a change in the company's financing structure Borrowings Repayment Date Analysis (As of June 30) | Repayment Term | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Within one year | 10,443 | 2,056 | | Over one year but not exceeding two years | 17,541 | 4,112 | | Over two years | 20,985 | 10,379 | | **Total** | **48,969** | **16,547** | - Borrowings bear interest at rates ranging from **0.35% to 0.76% below the one-year loan prime rate** and are guaranteed by Group entities[73](index=73&type=chunk) [Dividends](index=22&type=section&id=Dividends) The Board decided not to declare any dividends for the six months ended June 30, 2025 - No dividends were paid, declared, or proposed for the six months ended June 30, 2025 and 2024[74](index=74&type=chunk) [Other Information](index=23&type=section&id=Other%20Information) This section covers post-reporting period events, dividend policy, corporate governance, securities trading compliance, and the utilization of proceeds from listings and placings [Events After the Reporting Period](index=23&type=section&id=Events%20After%20the%20Reporting%20Period) No significant events occurred after June 30, 2025, up to the announcement date, that would materially impact the Group - No events that would cause a material impact on the Group occurred after June 30, 2025, and immediately before the date of this announcement[75](index=75&type=chunk) [Interim Dividend](index=23&type=section&id=Interim%20Dividend) The Board does not recommend an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[76](index=76&type=chunk) [Compliance with Corporate Governance Code](index=23&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The Group is committed to maintaining high corporate governance standards and believes it has complied with all applicable code provisions of the Corporate Governance Code - The company has complied with all applicable code provisions of the Corporate Governance Code during the six months ended June 30, 2025[77](index=77&type=chunk) [Compliance with the Model Code for Securities Transactions](index=23&type=section&id=Compliance%20with%20the%20Model%20Code%20for%20Securities%20Transactions) The company has adopted guidelines no less stringent than the Model Code and confirms that all directors and relevant employees complied with the code during the reporting period - Following specific inquiries by the company, all directors and relevant employees have confirmed their compliance with the Model Code during the six months ended June 30, 2025[78](index=78&type=chunk) [Use of Proceeds from Listing](index=24&type=section&id=Use%20of%20Proceeds%20from%20Listing) Net proceeds from the listing were primarily used for R&D of core products and other candidates, commercialization, team expansion, and working capital. As of June 30, 2025, most funds were utilized as planned, with remaining funds to be used per the expected timetable Use of Proceeds from Listing (As of June 30, 2025) | Purpose | Intended Net Proceeds (HKD million) | Utilized as of June 30, 2025 (HKD million) | Unutilized as of June 30, 2025 (HKD million) | Expected Timetable for Unutilized Funds | | :--- | :--- | :--- | :--- | :--- | | R&D personnel costs and ongoing R&D for OT-401 | 197.57 | 103.90 | 93.67 | Before end of 2025 | | Milestone payments for OT-401 | 49.39 | 33.90 | 15.49 | –(1) | | Commercialization of OT-401 | 246.96 | 246.96 | – | – | | Ongoing R&D for other candidate drugs | 562.42 | 562.42 | – | – | | Milestone payments for other licensed-in candidate drugs | 96.15 | 73.68 | 22.47 | Before end of 2027(2) | | Further expansion of sales and marketing team | 164.64 | 164.64 | – | – | | Acquisition of 100% equity in Suzhou Xiaxiang | 164.64 | 164.64 | – | – | | Working capital and general corporate purposes | 164.64 | 164.64 | – | – | | **Total** | **1,646.41** | **1,514.78** | **131.63** | | - As of June 30, 2025, all unutilized net proceeds were held by the company and deposited as short-term deposits in licensed banks or recognized financial institutions[80](index=80&type=chunk) [Use of Proceeds from Placing](index=25&type=section&id=Use%20of%20Proceeds%20from%20Placing) Net proceeds from placing were primarily used for commercial team expansion, international multi-center clinical trials, specific product R&D, and Suzhou factory construction. As of June 30, 2025, most funds were utilized as planned, with remaining funds to be used per the expected timetable Use of Proceeds from Placing and Subscription (As of June 30, 2025) | Purpose | Intended Net Proceeds (HKD million) | Utilized as of June 30, 2025 (HKD million) | Unutilized as of June 30, 2025 (HKD million) | Expected Timetable for Unutilized Funds | | :--- | :--- | :--- | :--- | :--- | | Expansion of commercial team | 234.51 | 157.31 | 77.20 | Before end of 2025 | | International multi-center clinical trials | 273.60 | 254.23 | 19.37 | –(1) | | OT-702 (Eylea biosimilar) | 99.66 | 99.66 | – | – | | OT-301 (NCX-470) | 50.03 | 50.03 | – | – | | OT-101 (Low-dose Atropine) | 43.78 | 43.78 | – | – | | OT-1001 (ZERVIATE®) | 30.10 | 10.73 | 19.37 | –(1) | | OT-202 (TKI) | 50.03 | 50.03 | – | – | | Construction and development of new production facilities at Suzhou factory | 195.43 | 195.43 | – | – | | Other general corporate purposes | 78.17 | 78.17 | – | – | | **Total** | **781.71** | **685.14** | **96.57** | | - As of June 30, 2025, all unutilized net proceeds from the subscription have been deposited in bank accounts maintained by the Group[82](index=82&type=chunk) [Purchases, Sales or Redemptions of the Company's Listed Securities](index=26&type=section&id=Purchases,%20Sales%20or%20Redemptions%20of%20the%20Company's%20Listed%20Securities) During the reporting period, the company repurchased **3,863,500 shares** for a total consideration of **HKD 17,697,268** to enhance long-term shareholder value. Repurchased shares are held in treasury for potential financing, share incentive plans, and other purposes consistent with the company's articles of association Share Repurchase Details (During the Reporting Period) | Month | Number of Shares Purchased | Highest Price Paid (HKD) | Lowest Price Paid (HKD) | Total Consideration Paid (HKD) | | :--- | :--- | :--- | :--- | :--- | | January 2025 | 534,000 | 4.63 | 3.71 | 2,174,693 | | February 2025 | 745,500 | 4.61 | 3.97 | 3,155,375 | | April 2025 | 2,174,000 | 5.42 | 4.09 | 10,217,680 | | May 2025 | 410,000 | 5.41 | 5.17 | 2,149,520 | | **Total** | **3,863,500** | | | **17,697,268** | - As of the date of this announcement, the **3,863,500 repurchased shares** have not yet been cancelled[83](index=83&type=chunk) - The company intends to use the treasury shares for potential financing, awards to eligible participants under share incentive schemes, and/or for other purposes consistent with the company's articles of association, the Listing Rules, and any other applicable laws, rules, and regulations[83](index=83&type=chunk) [Review of Unaudited Interim Results and Interim Report](index=26&type=section&id=Review%20of%20Unaudited%20Interim%20Results%20and%20Interim%20Report) The Group's unaudited condensed consolidated interim financial statements have been reviewed by independent auditor Deloitte Touche Tohmatsu and the Audit Committee, confirming compliance with applicable accounting standards, laws, and regulations - The Group's unaudited condensed consolidated interim financial statements for the six months ended June 30, 2025, have been reviewed by independent auditor Deloitte Touche Tohmatsu[84](index=84&type=chunk) - The Audit Committee believes that the Group's unaudited interim results comply with applicable accounting standards, laws, and regulations, and that appropriate disclosures have been made by the company[84](index=84&type=chunk) [Publication of 2025 Condensed Consolidated Interim Results and Interim Report](index=27&type=section&id=Publication%20of%202025%20Condensed%20Consolidated%20Interim%20Results%20and%20Interim%20Report) This announcement has been published on the HKEX and company websites, and the interim report will be dispatched to shareholders and published on relevant websites in due course - This announcement is published on the HKEX website (www.hkexnews.hk) and the company's website (www.ocumension.com)[85](index=85&type=chunk) - The company's interim report for the six months ended June 30, 2025, will be dispatched to shareholders and published on the HKEX and the company's respective websites in due course[85](index=85&type=chunk) [Acknowledgement](index=27&type=section&id=Acknowledgement) The Board extends its sincere gratitude to the Group's shareholders, management, employees, business partners, and customers - The Board hereby expresses its sincere gratitude to the Group's shareholders, management, employees, business partners, and customers for their support and contributions to the Group[86](index=86&type=chunk) [Definitions and Acronyms](index=27&type=section&id=Definitions%20and%20Acronyms) This section defines key terms and acronyms used in the report, covering company, regulatory bodies, products, diseases, and financial reporting standards for clarity [Common Terms and Acronyms](index=27&type=section&id=Common%20Terms%20and%20Acronyms) This section defines key terms and acronyms used in the report, covering company, regulatory bodies, products, diseases, and financial reporting standards for clarity - This section includes definitions for key institutions, business models, and regulatory terms such as "Alcon", "CDE", "CDMO", "FDA", "IFRS", and "NMPA"[87](index=87&type=chunk)[88](index=88&type=chunk)[89](index=89&type=chunk)[90](index=90&type=chunk)[91](index=91&type=chunk)[93](index=93&type=chunk) - It also includes explanations for product and disease-related terms such as "core products", "chronic NIU-PS", "AMD", and "wAMD"[87](index=87&type=chunk)[88](index=88&type=chunk)[89](index=89&type=chunk)[93](index=93&type=chunk)

Company Profile [Company Overview](index=3&type=section&id=Company%20Overview) Sinopec is one of China's largest integrated energy and chemical companies, with a broad business scope including oil and gas exploration, refining, sales, hydrogen energy, and new energy - Sinopec is one of China's largest integrated energy and chemical companies, with extensive operations in oil and gas exploration, refining, sales, hydrogen energy, and new energy[6](index=6&type=chunk) - The company's H-shares were listed on the Hong Kong Stock Exchange on October 18, 2000, and A-shares on the Shanghai Stock Exchange on August 8, 2001[6](index=6&type=chunk) Company Basic Information | Indicator | Content | | :--- | :--- | | Legal Name | China Petroleum & Chemical Corporation | | Chinese Abbreviation | Sinopec | | English Name | China Petroleum & Chemical Corporation | | English Abbreviation | Sinopec Corp. | | Registered, Office, and Contact Address | 22 Chaoyangmen North Street, Chaoyang District, Beijing, China | | Postal Code | 100728 | | Phone | 86-10-59960028 | | Fax | 86-10-59960386 | | Website | http://www.sinopec.com | | Email | ir@sinopec.com | | A-share Listing Place/Abbreviation/Code | Shanghai Stock Exchange/Sinopec/600028 | | H-share Listing Place/Abbreviation/Code | The Stock Exchange of Hong Kong Limited/Sinopec/00386 | [Definitions](index=3&type=section&id=Definitions) This section defines common terms used in the report, ensuring clear understanding of key terminology and conversion ratios for oil and gas production - The report defines key terms such as "Sinopec", "the Company", and "Sinopec Group Company"[7](index=7&type=chunk) - Conversion ratios for domestic and overseas crude oil and natural gas production are specified, for example, 1 ton of domestic crude oil is approximately 7.1 barrels, and 1 cubic meter of natural gas equals 35.31 cubic feet[7](index=7&type=chunk) Key Financial Data and Indicators [Financial Data and Indicators Prepared Under PRC GAAP](index=5&type=section&id=Financial%20Data%20and%20Indicators%20Prepared%20Under%20PRC%20GAAP) In H1 2025, under PRC GAAP, revenue decreased by 10.6% and net profit attributable to parent company shareholders decreased by 39.8%, mainly due to falling crude oil prices and a sluggish chemical market H1 2025 Key Accounting Data (PRC GAAP) | Item | 2025 (RMB millions) | 2024 (RMB millions) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,409,052 | 1,576,131 | (10.6) | | Total Profit | 28,767 | 50,868 | (43.4) | | Net Profit Attributable to Parent Company Shareholders | 21,483 | 35,703 | (39.8) | | Net Profit Attributable to Parent Company Shareholders After Deducting Non-Recurring Gains and Losses | 21,215 | 35,582 | (40.4) | | Net Cash Flow from Operating Activities | 61,016 | 42,269 | 44.4 | | Equity Attributable to Parent Company Shareholders (2025/6/30 vs 2024/12/31) | 827,449 | 819,922 | 0.9 | | Total Assets (2025/6/30 vs 2024/12/31) | 2,144,939 | 2,084,771 | 2.9 | H1 2025 Key Financial Indicators (PRC GAAP) | Item | 2025 (RMB) | 2024 (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share | 0.177 | 0.296 | (40.2) | | Diluted Earnings Per Share | 0.177 | 0.296 | (40.2) | | Basic Earnings Per Share After Deducting Non-Recurring Gains and Losses | 0.175 | 0.295 | (40.7) | | Weighted Average Return on Net Assets (%) | 2.61 | 4.37 | (1.76) percentage points | | Weighted Average Return on Net Assets After Deducting Non-Recurring Gains and Losses (%) | 2.58 | 4.36 | (1.78) percentage points | H1 2025 Non-Recurring Gains and Losses | Item | Amount (RMB millions) | | :--- | :--- | | Net gain from disposal of non-current assets | (557) | | Donation expenses | 42 | | Government subsidies | (453) | | Gains from holding and disposing of various investments | (71) | | Net amount of other non-recurring income and expenses | 330 | | Subtotal | (709) | | Corresponding tax adjustments | 256 | | Total | (453) | | Non-recurring gains and losses affecting net profit attributable to parent company shareholders | (268) | | Non-recurring gains and losses affecting net profit attributable to minority shareholders | (185) | - Accounts receivable increased by **46.0%**, mainly due to increased overseas trade operations[13](index=13&type=chunk) - Investment in other equity instruments increased by **1,064.2%**, primarily due to strategic investment in CATL equity[13](index=13&type=chunk) - Bonds payable increased by **125.2%**, mainly due to the issuance of medium-term notes and technology innovation bonds during the period[13](index=13&type=chunk) - Financial expenses increased by **34.3%**, mainly due to increased net exchange losses on foreign currency loans and decreased interest income from lower deposit rates[14](index=14&type=chunk) - Asset impairment losses increased by **35.5%**, primarily due to increased impairment losses on some petroleum and chemical products and trading crude oil caused by falling crude oil prices[14](index=14&type=chunk) - Cash paid for dividends, profits, or interest increased by **384.0%**, mainly due to differences in dividend payment timing[14](index=14&type=chunk) [Financial Data and Indicators Prepared Under IFRS](index=8&type=section&id=Financial%20Data%20and%20Indicators%20Prepared%20Under%20IFRS) In H1 2025, under IFRS, operating profit decreased by 34.5%, profit attributable to company shareholders decreased by 35.9%, and basic earnings per share decreased by 36.2% H1 2025 Key Accounting Data (IFRS) | Item | 2025 (RMB millions) | 2024 (RMB millions) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Profit | 33,423 | 51,021 | (34.5) | | Profit Attributable to Company Shareholders | 23,752 | 37,079 | (35.9) | | Net Cash Flow from Operating Activities | 61,016 | 42,269 | 44.4 | | Equity Attributable to Company Shareholders (2025/6/30 vs 2024/12/31) | 824,565 | 815,815 | 1.1 | | Total Assets (2025/6/30 vs 2024/12/31) | 2,142,807 | 2,081,440 | 2.9 | H1 2025 Key Financial Indicators (IFRS) | Item | 2025 (RMB) | 2024 (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share | 0.196 | 0.307 | (36.2) | | Diluted Earnings Per Share | 0.196 | 0.307 | (36.2) | | Return on Capital Employed (%) | 2.82 | 4.30 | (1.48) percentage points | Chairman's Statement [Chairman's Statement](index=8&type=section&id=Chairman's%20Statement) Chairman Hou Qijun reviewed Sinopec's 25-year achievements, highlighting its integrated energy and chemical strengths, and outlined future strategies focusing on innovation, value, transformation, resource security, market expansion, and open cooperation, while announcing an interim cash dividend of RMB 0.088 per share - The company overcame challenges such as significant declines in international crude oil prices and low chemical market margins in the first half, maintaining stable production and operations, but with a substantial year-on-year decrease in profitability[18](index=18&type=chunk) - The Board of Directors decided to distribute an interim cash dividend of **RMB 0.088 per share**, in line with the upper limit specified in the Articles of Association[18](index=18&type=chunk) - The company will fully and accurately implement new development concepts, adhere to specialized development, market-oriented operations, integrated coordination, and digital intelligence empowerment, promoting the extension of the industrial and value chains towards high-end segments[19](index=19&type=chunk) - Future focus will be on innovation-driven development, increasing reform of the scientific and technological system and mechanisms, and deploying new technologies such as new energy batteries, synthetic biology, and AI applications[19](index=19&type=chunk) - Emphasis will be placed on transformation and upgrading, promoting high-end, intelligent, and green development of existing businesses, fostering new productive forces, and building a "second growth curve"[21](index=21&type=chunk) - Greater attention will be given to resource security, increasing oil and gas exploration and development, and expanding the new energy industry to form a "three-pillar" structure of oil, gas, and new energy[22](index=22&type=chunk) - Focus will also be on market expansion, building an integrated energy service provider for "oil, gas, hydrogen, electricity, and services", expanding the natural gas sales network, and improving the Easy Joy integrated service ecosystem[22](index=22&type=chunk) - The company will prioritize open cooperation, promoting "group overseas expansion" across the entire industry chain, deepening strategic cooperation with international companies, and enhancing international operational capabilities[23](index=23&type=chunk) Operating Performance Review and Outlook [Operating Performance Review](index=11&type=section&id=Operating%20Performance%20Review) In H1 2025, China's economy grew steadily, with GDP up 5.3%, while domestic natural gas demand increased 2.1%, refined oil demand decreased 3.6%, and major chemical product demand grew 10.1%, amidst volatile international crude oil prices - In H1 2025, China's GDP increased by **5.3%** year-on-year[25](index=25&type=chunk) - Domestic natural gas demand increased by **2.1%** year-on-year, refined oil demand decreased by **3.6%** year-on-year (gasoline down 4.6%, diesel down 4.3%), and demand for major chemical products increased by **10.1%** year-on-year[25](index=25&type=chunk) - International crude oil prices fluctuated downwards, with the average spot price of Platts Brent crude oil at **US$71.7/barrel**, a year-on-year decrease of **14.7%**[25](index=25&type=chunk) [Production and Operations](index=11&type=section&id=Production%20and%20Operations) In H1 2025, the company actively responded to market changes across all production and operation segments, achieving a 2.0% increase in oil and gas equivalent production and a 5.1% rise in natural gas output Exploration and Production Operating Performance | Item | 2025 | 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Oil and Gas Equivalent Production (million boe) | 262.81 | 257.66 | 2.0 | | Crude Oil Production (million barrels) | 140.04 | 140.53 | (0.3) | | China | 126.73 | 126.49 | 0.2 | | Overseas | 13.31 | 14.04 | (5.2) | | Natural Gas Production (billion cubic feet) | 736.28 | 700.57 | 5.1 | Refining Operating Performance (million tons) | Item | 2025 | 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Crude Oil Processed | 119.97 | 126.69 | (5.3) | | Gasoline, Diesel, Kerosene Production | 71.40 | 77.30 | (7.6) | | Gasoline | 30.79 | 32.34 | (4.8) | | Diesel | 24.27 | 29.31 | (17.2) | | Kerosene | 16.33 | 15.65 | 4.3 | | Chemical Light Oil Production | 22.06 | 19.79 | 11.5 | Marketing and Distribution Operating Performance (million tons) | Item | 2025 | 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Refined Oil Sales | 112.14 | 119.01 | (5.8) | | Domestic Total Refined Oil Sales | 87.05 | 90.14 | (3.4) | | Retail Sales | 54.53 | 56.96 | (4.3) | | Direct Sales and Distribution | 32.52 | 33.18 | (2.0) | - The total number of Sinopec branded service stations increased to **31,015**, and convenience stores to **28,689**, both showing slight growth[33](index=33&type=chunk) Major Chemical Product Production (thousand tons) | Item | 2025 | 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Ethylene | 7,563 | 6,496 | 16.4 | | Synthetic Resins | 11,041 | 9,784 | 12.8 | | Synthetic Fiber Monomers and Polymers | 5,437 | 4,598 | 18.2 | | Synthetic Fibers | 601 | 633 | (5.1) | | Synthetic Rubber | 804 | 678 | 18.6 | [Safety and Health](index=13&type=section&id=Safety%20and%20Health) The company continuously improved its HSE management system, launched a safety production campaign, and enhanced employee HSE awareness, maintaining overall safe and clean production - Continuously improved the HSE management system and launched the Safety Production Remediation Action 2025, maintaining overall safe and clean production[38](index=38&type=chunk) - Strengthened prevention and control of occupational diseases at the source, focusing on the occupational, physical, and mental health of domestic and overseas employees[38](index=38&type=chunk) [Technological Innovation](index=13&type=section&id=Technological%20Innovation) The company made significant progress in key core technology breakthroughs, including enhanced oil recovery, intelligent drilling software, needle coke applications, POE industrial demonstration units, and seawater hydrogen production - Breakthroughs achieved in heterogeneous composite flooding technology for significantly enhanced oil recovery, and an independent Geodrill intelligent drilling software system was developed[39](index=39&type=chunk) - Needle coke products successfully applied in large-diameter graphite electrodes, and proprietary POE industrial demonstration unit and 400,000 tons/year acrylonitrile unit successfully started up[39](index=39&type=chunk) - Seawater hydrogen production industrial pilot plant completed performance and stability tests, and the Changcheng large model was launched[39](index=39&type=chunk) [Capital Expenditures](index=14&type=section&id=Capital%20Expenditures) In H1 2025, the company's capital expenditures totaled RMB 43.8 billion, primarily allocated to exploration and production, refining, marketing and distribution, and chemical segments H1 2025 Capital Expenditures by Segment | Segment | Capital Expenditures (RMB billions) | Main Uses | | :--- | :--- | :--- | | Exploration and Production | 27.6 | Oil and gas capacity building, storage and transportation facilities | | Refining | 5.5 | Refining transformation and upgrading, technological renovation | | Marketing and Distribution | 2.8 | Integrated energy station network, non-fuel business | | Chemicals | 7.3 | Ethylene, aromatics projects | | Headquarters and Others | 0.5 | Scientific research and development, digitalization | | **Total** | **43.8** | | [Business Outlook](index=14&type=section&id=Business%20Outlook) For H2 2025, China's economy is expected to continue its recovery, with sustained growth in natural gas and chemical product demand, while refined oil demand faces alternative energy impacts and international crude oil prices remain uncertain - In H2 2025, China's economy is expected to continue its recovery, with domestic natural gas and chemical product demand maintaining growth, while refined oil demand will be affected by alternative energy sources[41](index=41&type=chunk) - The company will reduce its full-year capital expenditure plan by approximately **5%**[43](index=43&type=chunk) H2 2025 Key Production and Operation Plans | Segment | Planned Indicator | Value | | :--- | :--- | :--- | | Exploration and Production | Crude Oil Production | 141 million barrels | | | Natural Gas Production | 714.5 billion cubic feet | | Refining | Crude Oil Processed | 130 million tons | | Marketing and Distribution | Domestic Refined Oil Sales | 89.8 million tons | | Chemicals | Ethylene Production | 7.85 million tons | Management Discussion and Analysis [Consolidated Operating Results](index=15&type=section&id=Consolidated%20Operating%20Results) In H1 2025, consolidated operating revenue decreased by 10.6% to RMB 1,409.1 billion, and operating profit decreased by 34.5% to RMB 33.4 billion, primarily due to volatile crude oil prices, declining domestic refined oil demand, and low chemical margins H1 2025 Consolidated Income Statement Key Items (IFRS) | Item | 2025 (RMB millions) | 2024 (RMB millions) | Change Rate (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,409,052 | 1,576,131 | (10.6) | | Revenue from Principal Operations | 1,380,387 | 1,545,920 | (10.7) | | Operating Expenses | (1,375,629) | (1,525,110) | (9.8) | | Operating Profit | 33,423 | 51,021 | (34.5) | | Net Finance Costs | (8,426) | (6,275) | 34.3 | | Investment Income and Share of Profits/(Losses) of Associates and Joint Ventures | 6,120 | 7,576 | (19.2) | | Profit Before Tax | 31,117 | 52,322 | (40.5) | | Income Tax Expense | (5,207) | (9,931) | (47.6) | | Profit for the Period | 25,910 | 42,391 | (38.9) | | Attributable to Company Shareholders | 23,752 | 37,079 | (35.9) | | Attributable to Non-Controlling Interests | 2,158 | 5,312 | (59.4) | - Revenue from principal operations decreased by **10.7%** year-on-year, mainly due to lower prices of petroleum and chemical products and decreased sales volumes of refined oil products[47](index=47&type=chunk) H1 2025 Sales Volume and Average Realized Price of Major External Sales Products | Product | 2025 Sales Volume (thousand tons/million cubic meters) | 2024 Sales Volume (thousand tons/million cubic meters) | Sales Volume Change Rate (%) | 2025 Average Realized Price (RMB/ton/thousand cubic meters) | 2024 Average Realized Price (RMB/ton/thousand cubic meters) | Price Change Rate (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Crude Oil | 3,867 | 4,254 | (9.1) | 3,563 | 3,981 | (10.5) | | Natural Gas | 31,666 | 31,406 | 0.8 | 2,362 | 2,398 | (1.5) | | Gasoline | 44,306 | 46,597 | (4.9) | 8,462 | 9,043 | (6.4) | | Diesel | 36,057 | 38,647 | (6.7) | 6,433 | 7,009 | (8.2) | | Kerosene | 12,261 | 13,376 | (8.3) | 5,071 | 5,805 | (12.6) | | Basic Chemical Raw Materials | 18,811 | 17,940 | 4.9 | 5,147 | 6,126 | (16.0) | | Synthetic Fiber Monomers and Polymers | 4,031 | 3,377 | 19.4 | 5,262 | 5,926 | (11.2) | | Synthetic Resins | 8,815 | 8,074 | 9.2 | 7,277 | 7,454 | (2.4) | | Synthetic Fibers | 610 | 631 | (3.3) | 7,189 | 7,723 | (6.9) | | Synthetic Rubber | 768 | 669 | 14.8 | 11,734 | 11,721 | 0.1 | - Purchases of crude oil, products, operating supplies, and expenses decreased by **10.8%** year-on-year, accounting for **81.3%** of total operating expenses, mainly due to lower crude oil and refined oil procurement costs[51](index=51&type=chunk) - Exploration expenses increased by **24.3%** year-on-year, mainly due to the company's increased efforts in shale oil and ultra-deep oil and gas exploration[51](index=51&type=chunk) - Taxes other than income tax decreased by **7.0%** year-on-year, mainly due to a **RMB 6.3 billion** reduction in consumption tax from lower refined oil production and a **RMB 2.6 billion** reduction in special oil gains levy and resource tax due to falling oil prices[51](index=51&type=chunk) - Other net income increased by **235.1%** year-on-year, mainly due to increased gains from commodity derivative hedging activities[51](index=51&type=chunk) [Operating Results by Business Segment](index=18&type=section&id=Operating%20Results%20by%20Business%20Segment) In H1 2025, operating results across all business segments were significantly impacted by market conditions, with exploration and production, refining, and marketing and distribution segments experiencing profit declines, and the chemical segment incurring a loss H1 2025 Operating Revenue, Expenses, and Profit by Business Segment (IFRS) | Segment | Operating Revenue (RMB millions) | Operating Expenses (RMB millions) | Operating Profit (RMB millions) | Operating Revenue Change Rate (%) | Operating Expenses Change Rate (%) | Operating Profit Change Rate (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Exploration and Production | 144,656 | 121,018 | 23,638 | (5.9) | (2.9) | (18.9) | | Refining | 658,324 | 654,789 | 3,535 | (12.2) | (11.8) | (50.4) | | Marketing and Distribution | 752,587 | 744,628 | 7,959 | (12.8) | (12.3) | (45.7) | | Chemicals | 241,938 | 246,162 | (4,224) | (6.0) | (5.5) | — | | Headquarters and Others | 662,975 | 661,330 | 1,645 | (16.8) | (16.5) | (61.8) | - The cash operating cost for oil and gas in the Exploration and Production segment was **RMB 718.0/ton**, a year-on-year decrease of **4.7%**[61](index=61&type=chunk) - The average cost of crude oil and feedstock processed by the Refining segment was **RMB 4,077/ton**, a year-on-year decrease of **10.1%**; refining margin was **RMB 315/ton**, a year-on-year decrease of **0.3%**[65](index=65&type=chunk) - Non-fuel business profit in the Marketing and Distribution segment was **RMB 3.09 billion**, a year-on-year increase of **17.0%**, with convenience store merchandise and service profit at **RMB 2.93 billion** and charging service fees at **RMB 0.5 billion**[71](index=71&type=chunk) - The Chemicals segment incurred an operating loss of **RMB 4.2 billion**, an increase of **RMB 1.1 billion** in loss year-on-year, mainly due to concentrated capacity release, declining profitability of aromatics and other products, and scheduled plant maintenance[75](index=75&type=chunk) [Assets, Liabilities, Equity, and Cash Flows](index=22&type=section&id=Assets,%20Liabilities,%20Equity,%20and%20Cash%20Flows) As of June 30, 2025, total assets increased by RMB 61.4 billion to RMB 2,142.8 billion, total liabilities increased by RMB 52.0 billion to RMB 1,161.3 billion, and net cash inflow from operating activities increased by RMB 18.7 billion to RMB 61.0 billion June 30, 2025 Assets, Liabilities, and Equity (RMB millions) | Item | June 30, 2025 | December 31, 2024 | Change Amount | | :--- | :--- | :--- | :--- | | Total Assets | 2,142,807 | 2,081,440 | 61,367 | | Current Assets | 572,910 | 524,515 | 48,395 | | Non-Current Assets | 1,569,897 | 1,556,925 | 12,972 | | Total Liabilities | 1,161,294 | 1,109,293 | 52,001 | | Current Liabilities | 703,751 | 673,237 | 30,514 | | Non-Current Liabilities | 457,543 | 436,056 | 21,487 | | Equity Attributable to Company Shareholders | 824,565 | 815,815 | 8,750 | | Total Equity | 981,513 | 972,147 | 9,366 | - Current assets increased by **RMB 48.4 billion**, mainly due to a **RMB 20.4 billion** increase in accounts receivable from increased overseas business operations, and a **RMB 16.7 billion** increase in cash and cash equivalents and time deposits[79](index=79&type=chunk) - Current liabilities increased by **RMB 30.5 billion**, mainly due to the company's issuance of ultra-short-term financing bonds and reclassification of some long-term borrowings due within one year, with short-term borrowings increasing by **RMB 34.8 billion**[80](index=80&type=chunk) H1 2025 Consolidated Cash Flow Statement Key Items (RMB millions) | Item | 2025 | 2024 | Change Amount | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 61,016 | 42,269 | 18,747 | | Net Cash Flow Used in Investing Activities | (59,968) | (79,004) | 19,036 | | Net Cash Flow from Financing Activities | 15,095 | 36,862 | (21,767) | | Net Increase in Cash and Cash Equivalents | 16,143 | 127 | 16,016 | - Research and development expenditures in H1 2025 totaled **RMB 8.2 billion**, including **RMB 6.2 billion** in expenses and **RMB 2.0 billion** in investments[86](index=86&type=chunk) - Environmental protection expenditures in H1 2025 totaled **RMB 6.9 billion**[86](index=86&type=chunk) Items Related to Fair Value Measurement (RMB millions) | Item | Beginning Balance | Ending Balance | Fair Value Change Gain/Loss for the Period | | :--- | :--- | :--- | :--- | | Financial assets held for trading | 4 | 3 | (1) | | Derivative financial instruments and cash flow hedges | (858) | (3,723) | 4,580 | | Receivables financing | 2,613 | 7,678 | – | | Investments in other equity instruments | 416 | 4,843 | – | | Total | 2,175 | 8,801 | 4,579 | - Strategic investment in CATL equity, with an ending book value of **RMB 4.424 billion** and investment gain/loss for the period of **RMB 854 million**[89](index=89&type=chunk) [Analysis of Financial Statements Prepared Under PRC GAAP](index=25&type=section&id=Analysis%20of%20Financial%20Statements%20Prepared%20Under%20PRC%20GAAP) In H1 2025, under PRC GAAP, consolidated operating profit decreased by 43.5% to RMB 29.1 billion, and net profit attributable to parent company shareholders decreased by 39.8% to RMB 21.5 billion, with refining gross margin being the lowest at 1.5% H1 2025 Operating Revenue and Operating Profit/(Loss) by Business Segment (PRC GAAP) | Segment | Operating Revenue (RMB millions) | Operating Profit/(Loss) (RMB millions) | | :--- | :--- | :--- | | Exploration and Production | 144,656 | 21,267 | | Refining | 658,324 | 2,597 | | Marketing and Distribution | 752,587 | 7,170 | | Chemicals | 241,938 | (4,518) | | Headquarters and Others | 662,975 | (3,213) | | Consolidated Operating Revenue | 1,409,052 | | | Consolidated Operating Profit | | 29,094 | | Net Profit Attributable to Parent Company Shareholders | | 21,483 | - Consolidated operating profit decreased by **43.5%** year-on-year, and net profit attributable to parent company shareholders decreased by **39.8%** year-on-year, mainly due to inventory losses from continuously falling crude oil and product prices, as well as declining domestic gasoline and diesel sales volumes and price spreads[92](index=92&type=chunk)[93](index=93&type=chunk) June 30, 2025 Financial Data (PRC GAAP) | Item | June 30, 2025 (RMB millions) | December 31, 2024 (RMB millions) | Change Amount (RMB millions) | | :--- | :--- | :--- | :--- | | Total Assets | 2,144,939 | 2,084,771 | 60,168 | | Non-Current Liabilities | 456,756 | 435,241 | 21,515 | | Shareholders' Equity | 984,432 | 976,293 | 8,139 | - The increase in total assets was mainly due to a **RMB 20.4 billion** increase in accounts receivable, a **RMB 16.7 billion** increase in monetary funds, and a **RMB 13.1 billion** increase in external equity investments[95](index=95&type=chunk) - The increase in non-current liabilities was mainly due to the issuance of medium-term notes and technology innovation bonds, leading to an increase in low-cost bond financing[95](index=95&type=chunk) H1 2025 Gross Profit Margin by Principal Business Segment (PRC GAAP) | Segment | Operating Revenue (RMB millions) | Operating Costs (RMB millions) | Gross Profit Margin (%) | YoY Operating Revenue Change (%) | YoY Operating Costs Change (%) | YoY Gross Profit Margin Change (percentage points) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Exploration and Production | 144,656 | 102,055 | 23.8 | (5.9) | (1.4) | (1.7) | | Refining | 658,324 | 535,484 | 1.5 | (12.2) | (13.3) | (0.2) | | Marketing and Distribution | 752,587 | 712,628 | 5.1 | (12.8) | (12.6) | (0.3) | | Chemicals | 241,938 | 238,373 | 1.1 | (6.0) | (5.5) | (0.5) | | Headquarters and Others | 662,975 | 656,511 | 1.0 | (16.8) | (16.1) | (0.7) | | Total | 1,409,052 | 1,192,753 | 6.6 | (10.6) | (10.2) | (0.8) | [Reasons and Impact of Changes in Accounting Policies, Estimates, and Methods](index=26&type=section&id=Reasons%20and%20Impact%20of%20Changes%20in%20Accounting%20Policies,%20Estimates,%20and%20Methods) This section refers to Note 2 of the financial statements prepared under International Financial Reporting Standards for details on changes in the company's accounting policies, estimates, and methods - Details on changes in the company's accounting policies, accounting estimates, and accounting methods can be found in Note 2 to the financial statements prepared under International Financial Reporting Standards[98](index=98&type=chunk) Corporate Governance, Environment, and Society [Improvements in Corporate Governance](index=27&type=section&id=Improvements%20in%20Corporate%20Governance) The company continuously improved its corporate governance, complied with regulations, and emphasized shareholder returns, internal control, risk management, information disclosure, and ESG management - The company complies with its Articles of Association and domestic and overseas securities regulatory requirements, improving corporate governance and continuously enhancing the quality of listed companies[99](index=99&type=chunk) - The Board of Directors and its specialized committees diligently reviewed and decided on matters, with independent directors actively conducting special research and providing advice[99](index=99&type=chunk) - The company values shareholder returns, strengthens market value management, formulated and issued the "Sinopec Market Value Management Measures", and continued to implement share repurchases[99](index=99&type=chunk) - Continuously improved ESG management, solidly carried out the Safety Production Remediation Action, deepened systematic environmental protection governance, and steadily advanced carbon peaking actions[99](index=99&type=chunk) [Directors, Supervisors, and Other Senior Management](index=27&type=section&id=Directors,%20Supervisors,%20and%20Other%20Senior%20Management) During the reporting period, several directors, supervisors, and senior management resigned due to work adjustments or age, while new non-executive directors were elected - Mr. Zhang Shaofeng, Mr. Yu Baocai, Mr. Ma Yongsheng, Mr. Tan Wenfang, and Mr. Zhang Chunsheng resigned from their positions due to work adjustments or age[100](index=100&type=chunk)[101](index=101&type=chunk) - Mr. Hou Qijun was elected as a non-executive director and chairman of Sinopec, and Mr. Cai Yong was elected as a non-executive director of Sinopec[101](index=101&type=chunk) - As of June 30, 2025, the company's directors, supervisors, and other senior management and their associates did not hold any disclosable interests or short positions in shares, related shares, or debentures[102](index=102&type=chunk) [Dividend Distribution](index=27&type=section&id=Dividend%20Distribution) The company distributed a final cash dividend of RMB 0.14 per share for 2024 and approved an interim dividend of RMB 0.088 per share for H1 2025, payable by September 25, 2025 - The 2024 final cash dividend of **RMB 0.14/share** (tax inclusive) was distributed on or before June 27, 2025[103](index=103&type=chunk) - The total cash dividend distributed for the full year 2024 was **RMB 0.286/share** (tax inclusive)[103](index=103&type=chunk) - The H1 2025 dividend distribution plan is a dividend of **RMB 0.088/share** (tax inclusive), to be paid on or before September 25, 2025[104](index=104&type=chunk) - Dividends for H-share shareholders will be paid in Hong Kong Dollars, with the exchange rate based on the average benchmark exchange rate of RMB to HKD published by the People's Bank of China in the week prior to the dividend declaration date (i.e., HKD 1 to RMB 0.909564)[105](index=105&type=chunk) - The company is obligated to withhold and pay 10% corporate income tax for non-resident enterprise H-share shareholders, and varying rates of individual income tax for individual H-share shareholders[106](index=106&type=chunk) [Employee Information](index=28&type=section&id=Employee%20Information) As of June 30, 2025, the company had 348,654 employees, with major subsidiaries Sinopec Sales Co. and China International United Petroleum & Chemicals Co. Ltd. employing 116,005 and 621 staff, respectively - As of June 30, 2025, the company had **348,654** employees[107](index=107&type=chunk) - Major subsidiaries Sinopec Sales Co. Ltd. had **116,005** employees, and China International United Petroleum & Chemicals Co. Ltd. had **621** employees[107](index=107&type=chunk) [Compensation Policy](index=28&type=section&id=Compensation%20Policy) The company has established a compensation system based on job value, performance contribution, and capability enhancement, continuously improving employee performance evaluation and incentive mechanisms - The company has established a compensation distribution system based on job value, performance contribution, and capability enhancement[108](index=108&type=chunk) - Continuously improved employee performance evaluation and incentive and restraint mechanisms[108](index=108&type=chunk) [Training Overview](index=28&type=section&id=Training%20Overview) During the reporting period, the company strengthened training management, improved its high-quality training system, and conducted over 29 million hours of online training - In the first half, the headquarters trained **1,700** key talents, focusing on management personnel, expert talents, skilled talents, and international talents[109](index=109&type=chunk) - Deepened the application of Sinopec Online Academy to enhance the intelligence and precision of training, with over **29 million** online training hours in the first half[110](index=110&type=chunk) [Implementation of Share Incentive Scheme](index=29&type=section&id=Implementation%20of%20Share%20Incentive%20Scheme) The company did not implement any share incentive scheme during the reporting period - The company did not implement any share incentive scheme during the reporting period[111](index=111&type=chunk) [Compliance with Corporate Governance Code](index=29&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) During the reporting period, the company complied with all code provisions of the Corporate Governance Code set out in Appendix C1 of the Hong Kong Listing Rules - During the reporting period, Sinopec complied with all code provisions of the Corporate Governance Code set out in Appendix C1 of the Hong Kong Listing Rules[112](index=112&type=chunk) [Review of Interim Report](index=29&type=section&id=Review%20of%20Interim%20Report) The Audit Committee of Sinopec's Board of Directors has reviewed and confirmed this report - The Audit Committee of Sinopec's Board of Directors has reviewed and confirmed this report[113](index=113&type=chunk) [Work on Ecological Protection, Pollution Prevention, and Environmental Responsibility](index=29&type=section&id=Work%20on%20Ecological%20Protection,%20Pollution%20Prevention,%20and%20Environmental%20Responsibility) The company deepened systematic environmental protection governance, advanced its Green Enterprise Action Plan, and initiated a "Waste-Free Group" three-year action, achieving stable COD emissions and reduced SO2 emissions - Deepened systematic environmental protection governance, fully promoted the second phase of the Green Enterprise Action Plan, and launched the "Waste-Free Group" three-year action[114](index=114&type=chunk) - COD emissions in discharged wastewater remained largely flat year-on-year, sulfur dioxide emissions decreased by **2%** year-on-year, and solid waste proper disposal rate reached **100%**[114](index=114&type=chunk) [Measures and Effects of Carbon Emission Reduction](index=29&type=section&id=Measures%20and%20Effects%20of%20Carbon%20Emission%20Reduction) The company actively and steadily advanced its "dual carbon" actions, reducing greenhouse gas emissions by 1.456 million tons of CO2 equivalent through energy saving and consumption reduction, and recovering 550 million cubic meters of methane - Reduced greenhouse gas emissions by **1.456 million tons of CO2 equivalent** through energy saving and consumption reduction[115](index=115&type=chunk) - Recovered and utilized **0.961 million tons of CO2**, with **0.398 million tons** injected for enhanced oil recovery[115](index=115&type=chunk) - Recovered **550 million cubic meters of methane**, equivalent to reducing greenhouse gas emissions by **8.25 million tons of CO2 equivalent**[115](index=115&type=chunk) [Number and Names of Enterprises Included in the List of Legally Disclosed Environmental Information, and Inquiry Index for Environmental Information Disclosure Reports](index=29&type=section&id=Number%20and%20Names%20of%20Enterprises%20Included%20in%20the%20List%20of%20Legally%20Disclosed%20Environmental%20Information,%20and%20Inquiry%20Index%20for%20Environmental%20Information%20Disclosure%20Reports) As of June 30, 2025, Sinopec and its major subsidiaries had 12 entities on the list of legally disclosed environmental information enterprises, with their environmental data disclosed through official systems - As of June 30, 2025, Sinopec and its important subsidiaries had **12** entities included in the list of enterprises legally required to disclose environmental information[117](index=117&type=chunk) - These enterprises have legally disclosed environmental information through the enterprise environmental information legal disclosure system established by environmental protection authorities[116](index=116&type=chunk) [Company's Work on Consolidating Poverty Alleviation Achievements and Rural Revitalization](index=30&type=section&id=Company's%20Work%20on%20Consolidating%20Poverty%20Alleviation%20Achievements%20and%20Rural%20Revitalization) During the reporting period, the company actively promoted new achievements in rural revitalization, deepening educational and industrial assistance, and completing consumer assistance totaling RMB 830 million - Deepened educational assistance, with **82** enterprises partnering with **72** schools, promoting projects such as "Academicians in Classroom", "Sinopec Accompanying Study", and "Chunlei Gas Station"[118](index=118&type=chunk) - Implemented industrial assistance, building demonstration industrial projects such as Dongxiang Quinoa and Yuexi Cuilan tea[118](index=118&type=chunk) - Completed consumer assistance totaling **RMB 830 million**[118](index=118&type=chunk) Significant Matters [Major Construction Projects](index=31&type=section&id=Major%20Construction%20Projects) The company continued to advance several major construction projects in H1, including shale oil, LNG, refining upgrades, and ethylene projects, with significant investments aimed at enhancing capacity and new material production - Shengli Shale Oil project completed **174** new wells, added **1.145 million tons/year** of new capacity, with cumulative investment of **RMB 15.4 billion**[119](index=119&type=chunk) - Longkou LNG project Phase I has a designed processing capacity of **6 million tons/year**, with cumulative investment of **RMB 5.9 billion**[120](index=120&type=chunk) - Maoming Refining Transformation and Upgrading and Ethylene Quality Improvement project accumulated investment of **RMB 9.3 billion**, including a 3 million tons/year catalytic cracking unit and 1 million tons/year ethylene plant[121](index=121&type=chunk) - Zhenhai 1.5 million tons/year Ethylene and Downstream High-end New Materials Industrial Cluster project accumulated investment of **RMB 4.4 billion**[122](index=122&type=chunk) - Henan Refining & Chemical 1 million tons/year Ethylene project accumulated investment of **RMB 2.6 billion**[123](index=123&type=chunk) [Analysis of Core Competencies](index=31&type=section&id=Analysis%20of%20Core%20Competencies) The company's core competencies stem from its integrated upstream, midstream, and downstream position as a large energy and chemical company, possessing strong overall scale, risk resistance, and sustained profitability - The company is China's largest supplier of refined oil and petrochemical products, a major oil and gas producer, the world's largest refining company, and the second-largest chemical company, with the second-largest number of service stations globally[124](index=124&type=chunk) - Its integrated business structure generates strong synergies, helping to improve resource utilization efficiency and providing strong risk resistance and sustained profitability[124](index=124&type=chunk) - Possesses market-proximate geographical advantages, a professional talent team, refined management capabilities, and world-leading technological strength, with overall technology reaching advanced international levels[126](index=126&type=chunk) - Formulated a future-oriented green transformation and development strategy, accelerating the development of new energy with a focus on hydrogen energy and high-end chemical materials, aiming to build a world-leading clean energy chemical company[127](index=127&type=chunk) [Continuing Connected Transactions During the Reporting Period](index=32&type=section&id=Continuing%20Connected%20Transactions%20During%20the%20Reporting%20Period) During the reporting period, the company engaged in a series of continuing connected transactions with Sinopec Group Company, including mutual supply, leasing, intellectual property licensing, and financial services, all within approved limits - During the reporting period, the company entered into a series of continuing connected transaction agreements with Sinopec Group Company, including mutual supply agreements, land use right lease contracts, property lease contracts, intellectual property licensing contracts, security fund documents, and financial service agreements[128](index=128&type=chunk) H1 2025 Continuing Connected Transaction Amounts | Transaction Type | Amount (RMB billions) | | :--- | :--- | | Total Purchase Amount | 110.165 | | Of which: Procurement of products and services | 103.464 | | Payment of property rent | 0.607 | | Payment of land rent | 5.591 | | Interest expense | 0.503 | | Total Sales Amount | 67.163 | | Of which: Sales of goods | 65.805 | | Agency commission income | 0.033 | | Interest income | 1.325 | - All continuing connected transaction amounts did not exceed the limits approved by the shareholders' meeting and the Board of Directors[129](index=129&type=chunk) [Connected Debts and Credits](index=33&type=section&id=Connected%20Debts%20and%20Credits) As of the end of the reporting period, the company had connected debts and credits with Sinopec Group Company and its associates, primarily due to loans and other receivables/payables, with no significant adverse impact on operations or financial position H1 2025 Connected Debts and Credits (RMB millions) | Related Party | Relationship | Ending Balance of Funds Provided to Related Parties | Ending Balance of Funds Provided by Related Parties to the Company | | :--- | :--- | :--- | :--- | | Sinopec Group | Parent company and its subsidiaries | 18,960 | 16,877 | | Other Related Parties | Associates and joint ventures | 4,019 | 8,421 | | Total | | 22,979 | 25,298 | - The connected debts and credits arose from loans and other receivables and payables[137](index=137&type=chunk) - The connected debts and credits had no significant adverse impact on the company's operating results and financial position[137](index=137&type=chunk) [Daily Connected Transactions with China Oil & Gas Piping Network Corporation During the Reporting Period](index=33&type=section&id=Daily%20Connected%20Transactions%20with%20China%20Oil%20%26%20Gas%20Piping%20Network%20Corporation%20During%20the%20Reporting%20Period) In H1 2025, the company's daily connected transactions with China Oil & Gas Piping Network Corporation for refined oil pipeline transportation services amounted to RMB 2.484 billion, within the approved annual limit - From January 1 to June 30, 2025, the actual amount of daily connected transactions with China Oil & Gas Piping Network Corporation for refined oil pipeline transportation services was **RMB 2.484 billion**[132](index=132&type=chunk) - This transaction amount complied with the 2025 annual limit approved by the Board of Directors[132](index=132&type=chunk) [Sinopec, Fujian Refining & Petrochemical, and Aramco Singapore Establish Joint Venture](index=33&type=section&id=Sinopec,%20Fujian%20Refining%20%26%20Petrochemical,%20and%20Aramco%20Singapore%20Establish%20Joint%20Venture) Sinopec, Fujian Refining & Petrochemical, and Aramco Singapore signed a joint venture agreement on April 28, 2025, to establish a new company with an estimated registered capital of RMB 28.8009 billion, with Sinopec and Fujian Refining & Petrochemical holding 25% and 50% equity respectively, and Aramco Singapore holding 25% - Sinopec, Fujian Refining & Petrochemical, and Aramco Singapore signed a joint venture agreement on April 28, 2025, to jointly establish a joint venture company[133](index=133&type=chunk) - The registered capital of the joint venture company is estimated to be **RMB 28,800,906,667**, with Sinopec, Fujian Refining & Petrochemical, and Aramco Singapore holding **25%**, **50%**, and **25%** equity respectively[133](index=133&type=chunk) - Sinopec will provide corresponding financial support for Fujian Refining & Petrochemical's capital contribution obligations under the joint venture agreement, based on its **50%** equity interest in Fujian Refining & Petrochemical[133](index=133&type=chunk) - Sinopec and Fujian Refining & Petrochemical were granted a call option to acquire Aramco Singapore's equity in the joint venture, and Aramco Singapore was granted a put option to sell its equity in the joint venture[133](index=133&type=chunk) [Sinopec's Issuance of A-Shares to Specific Subscribers](index=33&type=section&id=Sinopec's%20Issuance%20of%20A-Shares%20to%20Specific%20Subscribers) In 2024, the company completed the issuance of 2,390,438,247 A-shares to Sinopec Group Company, raising RMB 12 billion, with 25% of the funds invested in projects as of the reporting period end - In 2024, the company completed the issuance of **2,390,438,247 A-shares** to Sinopec Group Company, raising a total of **RMB 12 billion**[134](index=134&type=chunk)[135](index=135&type=chunk) Overall Use of Raised Funds (RMB millions) | Source of Raised Funds | Total Raised Funds | Net Raised Funds After Issuance Expenses | Total Committed Investment in Prospectus | Cumulative Investment as of End of Reporting Period | Cumulative Investment Progress (%) | Amount Invested During Reporting Period | Percentage of Amount Invested During Reporting Period (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Issuance of shares to specific subscribers | 12,000 | 11,987 | 11,987 | 3,049 | 25 | 1,182 | 10 | Details of Projects Funded by Raised Capital (RMB millions) | Project Name | Planned Investment Amount from Raised Funds | Cumulative Investment Amount from Raised Funds as of End of Reporting Period | Cumulative Investment Progress (%) | Date Project is Expected to Reach Usable State | | :--- | :--- | :--- | :--- | :--- | | Tianjin LNG Project Phase III Stage I | 4,500 | 281 | 6 | 2027 | | Yanshan Branch Hydrogen Purification Facility Improvement Project | 187 | 143 | 76 | 2024 | | Maoming Branch Refining Transformation and Upgrading and Ethylene Quality Improvement Project | 4,800 | 1,261 | 26 | 2027 | | Maoming Branch 50,000 tons/year Polyolefin Elastomer (POE) Industrial Pilot Plant Project | 900 | 836 | 93 | 2025 | | Sino-Kuwait (Guangdong) Petrochemical Co., Ltd. No. 2 EVA Project | 1,600 | 528 | 33 | 2026 | | Total | 11,987 | 3,049 | 25 | | - During the reporting period, there were no changes or terminations of projects funded by raised capital[140](index=140&type=chunk) - During the reporting period, the company did not use idle raised funds to temporarily supplement working capital or for cash management or investment in related products[141](index=141&type=chunk) [Implementation of the Company's 'Quality Improvement, Efficiency Enhancement, and High Returns' Action Plan](index=35&type=section&id=Implementation%20of%20the%20Company's%20'Quality%20Improvement,%20Efficiency%20Enhancement,%20and%20High%20Returns'%20Action%20Plan) The company formulated an action plan for 2024 and a three-year dividend return plan (2024-2026), maintaining dividend continuity and stability, and continuing share repurchases to prioritize investor returns - The company formulated the 2024 "Quality Improvement, Efficiency Enhancement, and High Returns" action plan and a three-year (2024-2026) shareholder dividend return plan[142](index=142&type=chunk) - In H1 2025, the company maintained dividend continuity and stability, and continued to implement share repurchases, focusing on investor returns[142](index=142&type=chunk) [Major Litigation and Arbitration Matters](index=35&type=section&id=Major%20Litigation%20and%20Arbitration%20Matters) During the reporting period, the company had no major litigation or arbitration matters - During the reporting period, the company had no major litigation or arbitration matters[143](index=143&type=chunk) [Statement on the Integrity of the Company, its Controlling Shareholder, and Actual Controller](index=35&type=section&id=Statement%20on%20the%20Integrity%20of%20the%20Company,%20its%20Controlling%20Shareholder,%20and%20Actual%20Controller) During the reporting period, the company and its controlling shareholder had no unfulfilled obligations from effective legal documents or large overdue debts - During the reporting period, the company and its controlling shareholder had no unfulfilled obligations determined by effective legal documents or large overdue debts[144](index=144&type=chunk) [Major Contracts and Their Performance](index=35&type=section&id=Major%20Contracts%20and%20Their%20Performance) During the reporting period, the company had no major contracts that should have been disclosed but were not - During the reporting period, the company had no major contracts that should have been disclosed but were not[145](index=145&type=chunk) [Major Equity Investments](index=35&type=section&id=Major%20Equity%20Investments) During the reporting period, the company did not undertake any major equity investment matters - During the reporting period, the company did not undertake any major equity investment matters[146](index=146&type=chunk) [Major Asset and Equity Disposals](index=35&type=section&id=Major%20Asset%20and%20Equity%20Disposals) During the reporting period, the company did not undertake any major asset and equity disposal matters - During the reporting period, the company did not undertake any major asset and equity disposal matters[147](index=147&type=chunk) [Business with Finance Company and Shengjun Company](index=36&type=section&id=Business%20with%20Finance%20Company%20and%20Shengjun%20Company) The company conducts deposit, loan, and credit businesses with Sinopec Finance Co., Ltd. and Sinopec Shengjun International Investment Co., Ltd., with total deposits of RMB 81.72 billion and loans of RMB 30.257 billion as of June 30, 2025 H1 2025 Deposit Business (RMB millions) | Related Party | Maximum Daily Deposit Limit | Deposit Interest Rate Range | Beginning Balance | Ending Balance | | :--- | :--- | :--- | :--- | :--- | | Finance Company | Total not exceeding RMB 90 billion | Demand: 0.25%-1.05% Time: 0.60%-7.40% | 7,722 | 14,945 | | Shengjun Company | Total not exceeding RMB 90 billion | Demand: 0%-4.10% Time: 0.15%-5.50% | 58,711 | 66,775 | H1 2025 Loan Business (RMB millions) | Related Party | Loan Limit | Loan Interest Rate Range | Beginning Balance | Ending Balance | | :--- | :--- | :--- | :--- | :--- | | Shengjun Company | 118,078 | 1.67%-5.42% | 2,669 | 2,759 | | Finance Company | 56,347 | 2.35%-4.20% | 25,309 | 27,498 | H1 2025 Credit Business or Other Financial Business (RMB millions) | Related Party | Business Type | Ending Balance | Actual Amount Incurred | | :--- | :--- | :--- | :--- | | Finance Company | Issuance of acceptance bills | 19,258 | 19,840 | | | Bill discounting | — | 4,128 | - The company formulated the "Sinopec Risk Disposal Plan for Financial Business with Sinopec Finance Co., Ltd. and Sinopec Shengjun International Investment Co., Ltd.", to ensure fund safety[152](index=152&type=chunk) [Major Guarantee Contracts and Their Performance](index=38&type=section&id=Major%20Guarantee%20Contracts%20and%20Their%20Performance) As of June 30, 2025, the company's total external guarantees amounted to RMB 3.962 billion (excluding guarantees to controlled subsidiaries), and guarantees to controlled subsidiaries totaled RMB 3.579 billion, with the total guarantee amount representing 0.9% of net assets June 30, 2025 Company Total Guarantee Amount (RMB millions) | Item | Amount | | :--- | :--- | | Total external guarantees by the company (A) | 3,962 | | Total guarantees to controlled subsidiaries by the company (B) | 3,579 | | Total guarantee amount (A+B) | 7,541 | | Percentage of total guarantee amount to company's net assets (%) | 0.9 | | Of which: Debt guarantees provided to guaranteed parties with asset-liability ratio exceeding 70% (D) | 3,962 | | Total of the above three guarantee amounts (C+D+E) | 3,962 | - On June 17, 2025, the company signed a "Financing Guarantee Agreement" with China Construction Bank (Asia) Corporation Limited to provide joint and several liability guarantees for the relevant financing arrangements of the Kazakhstan Gas Chemical Project Company; as of the end of the reporting period, the project company had not yet incurred actual financing[156](index=156&type=chunk) [Performance of Major Commitments by Related Parties](index=39&type=section&id=Performance%20of%20Major%20Commitments%20by%20Related%20Parties) The company and Sinopec Group Company strictly fulfilled various commitments during the reporting period, including those related to IPO, other commitments, and share lock-up commitments for refinancing Performance of Major Commitments by Related Parties | Commitment Background | Commitment Type | Committing Party | Summary of Commitment Content | Performance Period | Strictly Fulfilled | | :--- | :--- | :--- | :--- | :--- | :--- | | Commitments related to initial public offering | Initial Public Offering | Sinopec Group Company | Comply with connected transaction agreements; resolve legality issues of land and property ownership certificates within a time limit; implement "Restructuring Agreement"; intellectual property licensing; avoid horizontal competition; waive business competition and conflicts of interest with Sinopec | — | Yes | | Other commitments | Other | Sinopec Group Company | Grant Sinopec a ten-year option to require Sinopec Group Company to sell overseas oil and gas assets invested after the date of this commitment letter | Within 10 years from the date Sinopec Group Company obtains relevant rights and interests | Yes | | Commitments related to refinancing | Share Lock-up | Sinopec Group Company | Not to transfer the A-shares subscribed in this issuance within 36 months from the completion date of this issuance | 36 months from the completion date of this issuance | Yes | - As of the disclosure date of this report, the company has no unfulfilled performance commitments, unfulfilled asset injection or asset integration commitments, nor any profit forecasts for assets or projects[158](index=158&type=chunk) [Structured Entities Controlled by the Company](index=39&type=section&id=Structured%20Entities%20Controlled%20by%20the%20Company) During the reporting period, the company had no controlled structured entities - None[159](index=159&type=chunk) [Share Repurchases, Sales, and Redemptions](index=40&type=section&id=Share%20Repurchases,%20Sales,%20and%20Redemptions) The company was authorized to repurchase up to 10% of its issued A-shares or H-shares on June 28, 2024, and has repurchased and canceled 36,180,000 H-shares during the reporting period - The company was authorized to repurchase up to **10%** of its issued A-shares or H-shares, respectively[160](index=160&type=chunk) - During the reporting period, the company cumulatively repurchased **36,180,000 H-shares**, accounting for approximately **0.03%** of the company's total issued share capital as of June 30, 2025[160](index=160&type=chunk) - The total amount paid was **HKD 149,221,546**, and the repurchased H-shares that had not yet been canceled were canceled on June 3, 2025[160](index=160&type=chunk) March 2025 H-Share Repurchase Information | Repurchase Month | Number of Shares Repurchased | Highest Price Per Share (HKD/share) | Lowest Price Per Share (HKD/share) | Total Price (HKD) | | :--- | :--- | :--- | :--- | :--- | | March 2025 | 36,180,000 | 4.17 | 4.09 | 149,221,546 | - Controlled subsidiary Sinopec Shanghai Petrochemical Company Limited also implemented H-share repurchases[162](index=162&type=chunk) [Information on Major Subsidiaries or Associates](index=40&type=section&id=Information%20on%20Major%20Subsidiaries%20or%20Associates) During the reporting period, Sinopec Sales Co., Ltd. and China International United Petroleum & Chemicals Co., Ltd. were major subsidiaries, with their net profits or investment income significantly impacting the company's net profit H1 2025 Major Subsidiaries Information (RMB millions) | Company Name | Company Type | Registered Capital | Equity Held (%) | Total Assets | Net Assets | Net Profit | Operating Revenue | Operating Profit | Principal Business | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Sinopec Sales Co., Ltd. | Controlled Subsidiary | 28,403 | 70 | 546,868 | 265,254 | 6,942 | 750,908 | 8,441 | Refined oil sales | | China International United Petroleum & Chemicals Co., Ltd. | Wholly-owned Subsidiary | 5,000 | 100 | 225,040 | 72,052 | 5,547 | 659,327 | 6,554 | Crude oil and petrochemical product trading | [Risk Factors](index=41&type=section&id=Risk%20Factors) The company faces multiple operational risks, including macroeconomic changes, industry cyclical fluctuations, policy and regulatory shifts, environmental regulations, oil and gas resource uncertainties, crude oil procurement price volatility, production and natural disaster risks, investment risks, overseas business expansion, exchange rate fluctuations, and cybersecurity risks - Macroeconomic changes risk: Global economic growth momentum is insufficient, increasing uncertainty, potentially affected by carbon tariffs, trade protectionism, geopolitical factors, and international oil price changes[165](index=165&type=chunk) - Industry cyclical changes risk: A significant portion of the company's revenue comes from refined oil and petrochemical products, and its business is cyclical, easily affected by macroeconomic conditions, policies, supply and demand, and price factors[165](index=165&type=chunk) - Macroeconomic policy and government regulation risk: The Chinese government is gradually relaxing industry access and strengthening regulation; policy changes such as opening up crude oil import rights, tightening refined oil export quotas, natural gas price reforms, support for new energy industries, and reforms in resource and environmental taxes may affect the company's operations[166](index=166&type=chunk) - Risk of changes in environmental regulations: Stricter environmental regulations may increase the company's environmental protection expenditures[167](index=167&type=chunk) - Crude oil procurement risk: Most of the crude oil required by the company needs to be purchased externally, and significant fluctuations in crude oil prices and localized supply disruptions may pose risks[168](index=168&type=chunk) - Overseas business expansion and operation risk: Overseas operations are affected by local laws and regulations, geopolitical factors, economic uncertainties, sanctions, unstable fiscal and tax policies, and other factors[170](index=170&type=chunk) - Exchange rate risk: Fluctuations in the RMB exchange rate will impact the revenue of the upstream segment and the profitability of the refining segment[170](index=170&type=chunk) - Cybersecurity risk: Cyberattacks may lead to production interruptions, data loss, damage to personnel, property, environment, and reputation, requiring continuous increased investment in security[171](index=171&type=chunk) Share Changes and Shareholder Information [Statement of Changes in Shares](index=43&type=section&id=Statement%20of%20Changes%20in%20Shares) As of June 30, 2025, the company's total shares decreased by 36,318,000 to 121,245,237,698 shares, primarily due to the cancellation of H-shares, with no change in restricted shares Statement of Changes in Shares | Item | Number Before Change | Percentage Before Change (%) | Change in Number | Number After Change | Percentage After Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 2,390,438,247 | 1.97 | — | 2,390,438,247 | 1.97 | | II. Unrestricted Tradable Shares | 118,891,117,451 | 98.03 | (36,318,000) | 118,854,799,451 | 98.03 | | Of which: Overseas listed foreign shares | 24,049,292,600 | 19.83 | (36,318,000) | 24,012,974,600 | 19.81 | | III. Total Shares | 121,281,555,698 | 100 | (36,318,000) | 121,245,237,698 | 100 | - During the reporting period, Sinopec canceled **36,318,000 H-shares**[172](index=172&type=chunk) - Share repurchases increased basic earnings per share and net assets per share attributable to ordinary shareholders in the most recent year and period[173](index=173&type=chunk) [Number of Shareholders and Shareholding Information](index=44&type=section&id=Number%20of%20Shareholders%20and%20Shareholding%20Information) As of June 30, 2025, the company had 456,099 shareholders, meeting Hong Kong Listing Rules' minimum public float, with Sinopec Group Company as the largest shareholder holding 68.53% - As of June 30, 2025, the company had a total of **456,099** shareholders, including **450,892** domestic A-share shareholders and **5,207** overseas H-share shareholders[174](index=174&type=chunk) - Sinopec's minimum public float complied with the requirements of the Hong Kong Listing Rules[174](index=174&type=chunk) June 30, 2025 Top Ten Shareholders' Shareholding Information | Shareholder Name | Number of Shares Held at Period End | Percentage (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | China Petrochemical Group Co., Ltd. | 83,090,545,996 | 68.53 | State-owned shares | | HKSCC Nominees Limited | 23,874,861,206 | 19.69 | H-shares | | China Securities Finance Corporation Limited | 2,325,374,407 | 1.92 | A-shares | | China National Petroleum Corporation | 2,165,749,530 | 1.79 | A-shares | | Hong Kong Securities Clearing Company Limited | 883,084,973 | 0.73 | A-shares | - As of June 30, 2025, Sinopec Group Company and its wholly-owned subsidiaries cumulatively increased their holdings of Sinopec A-shares by **28,486,900 shares** and H-shares by **302,004,000 shares**[176](index=176&type=chunk) June 30, 2025 H-Share Shareholder Information Disclosed Under the Securities and Futures Ordinance | Shareholder Name | Capacity in which Shares are Held | Number of Shares in which Interests are Held (shares) | Approximate Percentage of Sinopec's Interests (H-shares) (%) | | :--- | :--- | :--- | :--- | | BlackRock, Inc. | Interests of a corporation controlled by a substantial shareholder | 1,666,916,417(L) | 6.94(L) | | Shengjun Company | Beneficial owner | 1,344,668,000(L) | 5.60(L) | [Changes in Controlling Shareholder and Actual Controller](index=45&type=section&id=Changes%20in%20Controlling%20Shareholder%20and%20Actual%20Controller) During the reporting period, there were no changes in the company's controlling shareholder and actual controller - During the reporting period, there were no changes in Sinopec's controlling shareholder and actual controller[182](index=182&type=chunk) Bond-Related Information [Non-Financial Enterprise Debt Financing Instruments in the Interbank Bond Market](index=46&type=section&id=Non-Financial%20Enterprise%20Debt%20Financing%20Instruments%20in%20the%20Interbank%20Bond%20Market) The company issued multiple tranches of medium-term notes, technology innovation bonds, and ultra-short-term financing bonds in the interbank market, with all proceeds used as specified and timely interest payments made Overview of Non-Financial Enterprise Debt Financing Instruments in the Interbank Bond Market | Bond Abbreviation | Code | Issue Date | Maturity Date | Issue Size (RMB billions) | Bond Balance (RMB billions) | Interest Rate (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | 21 Sinopec MTN001 | 102101386 | 2021/7/23 | 2026/7/27 | 5.0 | 5.0 | 3.2 | | 24 Sinopec MTN001 | 102483276 | 2024/7/30 | 2034/7/31 | 3.5 | 3.5 | 2.24 | | 24 Sinopec MTN002 | 102483277 | 2024/7/30 | 2034/7/31 | 3.5 | 3.5 | 2.24 | | 24 Sinopec MTN003 | 102485444 | 2024/12/16 | 2026/12/17 | 6.0 | 6.0 | 1.7 | | 24 Sinopec MTN004 | 102485443 | 2024/12/16 | 2027/12/17 | 4.0 | 4.0 | 1.75 | | 25 Sinopec MTN001 | 102580205 | 2025/1/13 | 2030/1/14 | 12.0 | 12.0 | 1.75 | | 25 Sinopec MTN002 | 102580206 | 2025/1/13 | 2035/1/14 | 10.0 | 10.0 | 1.96 | | 25 Sinopec MTN003 | 102580639 | 2025/2/18 | 2045/2/19 | 5.0 | 5.0 | 2 | | 25 Sinopec SCP001 (Tech Innovation Bond) | 012581163 | 2025/5/19 | 2025/11/18 | 5.0 | 5.0 | 1.5 | | 25 Sinopec SCP002 (Tech Innovation Bond) | 012581165 | 2025/5/19 | 2025/11/18 | 5.0 | 5.0 | 1.5 | | 25 Sinopec SCP003 (Tech Innovation Bond) | 012581167 | 2025/5/19 | 2025/11/18 | 5.0 | 5.0 | 1.5 | | 25 Sinopec MTN004 (Tech Innovation Bond) | 102582100 | 2025/5/20 | 2028/5/21 | 5.0 | 5.0 | 1.62 | | 25 Sinopec SCP004 | 012581715 | 2025/7/18 | 2025/12/16 | 6.0 | 6.0 | 1.45 | - All bond proceeds have been used as specified in the prospectus[184](index=184&type=chunk) - The bonds are unsecured, the debt repayment plan remains unchanged, and the bond trustee has fulfilled its responsibilities as required by regulations[184](index=184&type=chunk) [Company's Accounting Data and Financial Indicators as of the End of the Reporting Period (PRC GAAP)](index=47&type=section&id=Company's%20Accounting%20Data%20and%20Financial%20Indicators%20as%20of%20the%20End%20of%20the%20Reporting%20Period%20(PRC%20GAAP)) As of the reporting period end, the company's current and quick ratios increased, while the asset-liability ratio

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部份內容而產生或因倚賴 該等內容而引致之任何損失承擔任何責任。 （在中華人民共和國註冊成立的股份有限公司） （證券代號：00386） 2025年半年度業績公告 中國石油化工股份有限公司（「中國石化」或「本公司」）董事會謹此宣佈中國石 化及其附屬公司截至2025年6月30日止六個月之未經審計業績。本公告列載中 國石化2025年半年度報告全文，並符合香港聯合交易所有限公司證券上市規則 中有關中期業績初步公告附載資料之要求。中國石化2025年半年度報告全文 同時刊載於香港聯合交易所有限公司網站( www.hkexnews.hk )及中國石化網站 ( www.sinopec.com/listco /)。 發佈業績公告 本業績公告的中英文版本可在中國石化網站(www.sinopec.com/listco /)及香港聯合 交易所有限公司網站(www.hkexnews.hk)查閱。在對中英文版本理解上發生歧義 時，以中文為準。 承董事會命 中國石油化工股份有限公司 黃文生 副總裁、 ...

香 港 交 易 及 結 算 所 有 限 公 司 及 香 港 聯 合 交 易 所 有 限 公 司（「聯交所」）對 本 公 佈 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 本公佈全部或任何部分內容而產生或因倚賴該等內容而引致之任何損失承擔任 何責任。 Wing Fung Group Asia Limited 榮豐集團亞洲有限公司 榮豐集團亞洲有限公司（「本公司」，連同其附屬公司統稱為「本集團」）董事（「董事」） 會（「董事會」）謹 此 公 佈 本 集 團 截 至 二 零 二 五 年 六 月 三 十 日 止 六 個 月 之 未 經 審 核 中期業績。本公佈列載本公司二零二五年中期報告（「二零二五年中期報告」）全文， 並符合聯交所GEM證 券 上 市 規 則（「GEM上市規則」）中 有 關 中 期 業 績 初 步 公 告 附 載 的 資 料 的 相 關 規 定。本 公 司 二 零 二 五 年 中 期 報 告 印 刷 本 將 於 二 零 二 五 年 八 月 寄 發 予 選 擇 收 取 印 刷 本 的 本 公 司 股 東。本 公 司 ...

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。 Kingland Group Holdings Limited 景聯集團控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：1751） 截至二零二五年六月三十日止六個月 之中期業績公告 財務摘要 截 至 二 零 二 五 年 六 月 三 十 日 止 六 個 月，本 集 團 的 經 營 業 績 如 下： – 1 – • 收益約為31.7百 萬 港 元（二 零 二 四 年：約60.2百 萬 港 元），較 去 年 同 期 減 少 約47.3%； • 淨虧損約為4.6百 萬 港 元，而 去 年 同 期 為 純 利 約9.8百 萬 港 元； • 根據普通股加權平均數計算的每股基本及攤薄虧損約為1.92港 仙（二 零 二 四 年：每 股 盈 利 約4.05港 仙）； • 董 事 不 建 議 就 截 至 二 零 二 五 年 六 月 三 十 日 止 六 個 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公佈全部或任何部 份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 Futong Technology Development Holdings Limited 富 通 科 技 發 展 控 股 有 限 公 司 （ 於 開 曼 群 島 註 冊 成 立 的 有 限 公 司 ） （股份代號：465） 未經審核中期業績公佈 截至二零二五年六月三十日止六個月期間 富通科技發展控股有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然宣佈截至 二零二五年六月三十日止六個月期間（「本期間」）本公司及其附屬公司（統稱「本集 團」）的未經審核簡明綜合財務業績。此等簡明綜合中期財務資料並未經審核，但已 由本公司核數師及審核委員會審閱。 – 1 – | | | 二零二五年 | 二零二四年 | | --- | --- | --- | --- | | | 附註 | 六月三十日 人民幣千元 | 十二月三十一日 人民幣千元 | | | | （未經審核） | （經審核） | | 資產及負債 | | ...

香港聯合交易所有限公司（「聯交所」）GEM之特色 GEM的定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他在聯交所上市的公司帶有較高投資風險。 有意投資的人士應了解投資於該等公司的潛在風險，並應經過審慎周詳的考慮後方作出投資決定。 由於GEM上市的公司通常為中小型公司，在GEM買賣的證券可能會較於聯交所主板買賣之證券承受較大的市場波 動風險，同時無法保證在GEM買賣的證券會有高流通量的市場。 香港交易及結算所有限公司及聯交所對本報告的內容概不負責，對其準確性或完整性亦不發表任何聲明，並明確 表示概不就因本報告全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 本報告乃遵照聯交所GEM證券上市規則（「GEM上市規則」）的規定而提供有關靖洋集團控股有限公司（「本公司」）及 其附屬公司（統稱「本集團」）的資料。本公司之董事（「董事」）願共同及個別就本報告負全責，並在作出一切合理查 詢後確認，就彼等所深知及確信，本報告所載資料在各重大方面均屬準確完備，且並無誤導或欺詐成分；亦無遺 漏其他事項，以致本報告所載任何陳述或本報告產生誤導。 本報告以環保紙印刷 目錄 公司資料 3 管理層討論及分 ...

Report Introduction [Disclaimer](index=1&type=section&id=%E5%85%8D%E8%B2%AC%E8%81%B2%E6%98%8E) The Hong Kong Stock Exchange and HKEX are not responsible for the content of this announcement, make no statement as to its accuracy or completeness, and expressly disclaim liability for any losses arising from its content - The Hong Kong Stock Exchange and HKEX are not responsible for the content of this announcement, nor do they make any statement as to its accuracy or completeness[1](index=1&type=chunk) - They expressly disclaim any liability for any loss arising from or in reliance upon the whole or any part of the contents of this announcement[1](index=1&type=chunk) [Company and GEM Listing Characteristics](index=1&type=section&id=%E5%85%AC%E5%8F%B8%E5%8F%8AGEM%E4%B8%8A%E5%B8%82%E7%89%B9%E8%89%B2) Genes Tech Group Holdings Limited (stock code: 8257) announced its interim results for the six months ended June 30, 2025, noting its Cayman Islands incorporation and GEM listing for SMEs carries higher investment risks - Genes Tech Group Holdings Limited (stock code: **8257**) published its interim results announcement for the six months ended June 30, 2025[2](index=2&type=chunk) - The company is incorporated in the Cayman Islands and listed on GEM of The Stock Exchange of Hong Kong Limited (the "Stock Exchange")[2](index=2&type=chunk) - GEM is positioned as a listing platform for small and medium-sized enterprises, and such companies carry higher investment risks, so investors should understand the potential risks and make prudent decisions[2](index=2&type=chunk) Financial Statements [Condensed Consolidated Interim Statement of Comprehensive Income](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E4%B8%AD%E6%9C%9F%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, revenue increased by **9.4%** to **NT$585.31 million**, gross profit rose by **28.98%** to **NT$201.97 million**, and profit attributable to owners surged by **25.84%** to **NT$48.70 million**, with basic earnings per share at **NT$4.87 cents** Condensed Consolidated Interim Statement of Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (NT$ thousand) | 2024 (NT$ thousand) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 585,306 | 535,007 | 9.40% | | Cost of sales | (383,332) | (378,421) | 1.30% | | Gross profit | 201,974 | 156,586 | 28.98% | | Other income | 2 | 2,863 | -99.93% | | Other (losses) / gains, net | (28,470) | 9,985 | -385.06% | | Selling and distribution expenses | (16,655) | (25,537) | -34.78% | | General and administrative expenses | (77,587) | (71,008) | 9.26% | | Finance income | 694 | 638 | 8.78% | | Finance costs | (8,200) | (9,835) | -16.63% | | Profit before income tax | 71,758 | 63,692 | 12.66% | | Income tax expense | (23,059) | (24,989) | -7.72% | | Profit for the period attributable to owners of the Company | 48,699 | 38,703 | 25.84% | | Exchange differences | 19,539 | (7,403) | -364.00% | | Total comprehensive income for the period attributable to owners of the Company | 68,238 | 31,300 | 118.02% | | Basic and diluted earnings per share (NT$ cents) | 4.87 | 3.87 | 25.84% | [Condensed Consolidated Interim Statement of Financial Position](index=3&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, total assets were **NT$2,444.50 million**, a slight decrease from December 31, 2024, with total equity increasing to **NT$888.72 million** and total liabilities rising to **NT$1,667.45 million** Condensed Consolidated Interim Statement of Financial Position (As of June 30) | Indicator | June 30, 2025 (NT$ thousand) | December 31, 2024 (NT$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | **ASSETS** | | | | | Non-current assets | 461,126 | 452,141 | 1.99% | | Current assets | 1,992,363 | 2,095,038 | -4.90% | | **TOTAL ASSETS** | **2,444,504** | **2,556,164** | **-4.37%** | | **EQUITY** | | | | | Share capital | 38,815 | 38,815 | 0.00% | | Reserves | 849,900 | 781,662 | 8.73% | | **TOTAL EQUITY** | **888,715** | **820,477** | **8.32%** | | **LIABILITIES** | | | | | Non-current liabilities | 127,031 | 138,648 | -8.38% | | Current liabilities | 1,540,418 | 1,485,379 | 3.71% | | **TOTAL LIABILITIES** | **1,667,449** | **1,624,027** | **2.67%** | | **TOTAL EQUITY AND LIABILITIES** | **2,556,164** | **2,444,504** | **4.57%** | [Condensed Consolidated Interim Statement of Changes in Equity](index=5&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E4%B8%AD%E6%9C%9F%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) For the six months ended June 30, 2025, total equity increased from approximately **NT$820.48 million** to approximately **NT$888.72 million**, primarily due to **NT$48.70 million** in profit for the period and **NT$19.54 million** in other comprehensive income (exchange differences) Condensed Consolidated Interim Statement of Changes in Equity (For the six months ended June 30) | Indicator | June 30, 2025 (NT$ thousand) | January 1, 2025 (NT$ thousand) | Change (NT$ thousand) | | :--- | :--- | :--- | :--- | | Share capital | 38,815 | 38,815 | 0 | | Share premium | 146,571 | 146,571 | 0 | | Statutory reserve | 184,971 | 169,644 | 15,327 | | Other reserves | 182,226 | 182,226 | 0 | | Exchange reserve | (3,786) | (23,325) | 19,539 | | Retained earnings | 339,918 | 306,546 | 33,372 | | **TOTAL EQUITY** | **888,715** | **820,477** | **68,238** | - Profit for the period was **NT$48,699 thousand**, and other comprehensive income (exchange differences) was **NT$19,539 thousand**[8](index=8&type=chunk) [Condensed Consolidated Interim Statement of Cash Flows](index=6&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E4%B8%AD%E6%9C%9F%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 **NT$53.05 million**, net cash used in investing activities was **NT$3.36 million**, and net cash used in financing activities was **NT$57.94 million**, with cash and cash equivalents at period-end totaling **NT$205.58 million** Condensed Consolidated Interim Statement of Cash Flows (For the six months ended June 30) | Indicator | 2025 (NT$ thousand) | 2024 (NT$ thousand) | Change (NT$ thousand) | | :--- | :--- | :--- | :--- | | Net cash from operating activities | 53,050 | (11,602) | 64,652 | | Net cash used in investing activities | (3,359) | (1,470) | -1,889 | | Net cash used in financing activities | (57,944) | (11,182) | -46,762 | | Net decrease in cash and cash equivalents | (8,253) | (24,254) | 16,001 | | Cash and cash equivalents at beginning of period | 194,292 | 150,739 | 43,553 | | Effect of foreign exchange rate changes | 19,538 | (7,401) | 26,939 | | Cash and cash equivalents at end of period | 205,577 | 119,084 | 86,493 | Notes to the Financial Statements [General Information](index=7&type=section&id=%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) The company is an investment holding company primarily providing turnkey solutions and trading semiconductor manufacturing equipment and parts, registered in the Cayman Islands with main operations in Taiwan, listed on HKEX GEM, and reports in NT$ thousands - The Company is an investment holding company, and its subsidiaries are principally engaged in the provision of turnkey solutions and trading of parts and used semiconductor manufacturing equipment[11](index=11&type=chunk) - The Company's ultimate parent company and ultimate controlling party is Chia Chien Development Limited, and the ultimate controlling individual is Mr. Yang Ming-Hsiang[11](index=11&type=chunk) - The principal place of business of the Group is located in Hsinchu County, Zhubei City, Taiwan, and it is listed on GEM of The Stock Exchange of Hong Kong Limited[11](index=11&type=chunk)[12](index=12&type=chunk) [Company Profile](index=7&type=section&id=%E5%85%AC%E5%8F%B8%E6%A6%82%E6%B3%81) Genes Tech Group Holdings Limited is an investment holding company whose subsidiaries provide turnkey solutions and trade parts and used semiconductor manufacturing equipment, registered in the Cayman Islands with primary operations in Taiwan and listed on HKEX GEM - The Company is an investment holding company, and its subsidiaries are principally engaged in the provision of turnkey solutions and trading of parts and used semiconductor manufacturing equipment[11](index=11&type=chunk) - The Company was incorporated in the Cayman Islands with its registered office at Cricket Square[11](index=11&type=chunk) - The principal place of business of the Group is located at No. 80, Baotai 3rd Road, Zhubei City, Hsinchu County, Taiwan[11](index=11&type=chunk) [Principal Subsidiaries](index=7&type=section&id=%E4%B8%BB%E8%A6%81%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8) The company holds several direct and indirect wholly-owned subsidiaries, including Genes Tech (Hong Kong), Jili International, Jiafeng, Genes Tech (Taiwan), Chongjun Technology, Shanghai Jinghuan Technology, and GENES TECH U.S.A. INC., covering investment holding, turnkey solutions, trading of parts and used semiconductor equipment, and heating tape manufacturing across Hong Kong, Anguilla, Taiwan, China, and the USA Overview of Principal Subsidiaries | Subsidiary Name | Place and Date of Incorporation | Principal Business and Place of Operation | | :--- | :--- | :--- | | Genes Tech (Hong Kong) Co., Ltd. | Hong Kong, April 13, 2018 | Investment holding, Hong Kong | | Jili International Limited | Hong Kong, March 26, 2018 | Investment holding, Hong Kong | | Jiafeng Limited | Anguilla, April 28, 2016 | Investment holding, Anguilla | | Genes Tech Co., Ltd. | Taiwan, December 28, 2009 | Provision of turnkey solutions and trading of parts and used semiconductor manufacturing equipment, Taiwan | | Chongjun Technology Co., Ltd. | Taiwan, July 27, 2009 | Manufacturing and sale of heating tapes, Taiwan | | Shanghai Jinghuan Technology Co., Ltd. | China, May 12, 2020 | Provision of turnkey solutions and trading of parts and used semiconductor manufacturing equipment, China | | GENES TECH U.S.A. INC. | Arizona, November 11, 2024 | Provision of semiconductor turnkey solutions | - All listed subsidiaries are **100%** beneficially owned by the Company[13](index=13&type=chunk)[14](index=14&type=chunk) [Basis of Preparation](index=8&type=section&id=%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) The condensed consolidated interim financial information is prepared in accordance with HKAS 34 and GEM Listing Rules, to be read with the 2024 annual financial statements, with the company assessing new standards and income tax accrued at the expected annual effective rate - The condensed consolidated interim financial information has been 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 provisions of the GEM Listing Rules[15](index=15&type=chunk) - The Group is assessing the impact of new standards, amendments to standards, and interpretations that have been issued but are not yet effective and have not been early adopted in prior accounting periods, on the Group's results and financial position[15](index=15&type=chunk) - Income tax for the six-month period is accrued using the tax rate that would be applicable to the expected total annual profit or loss[16](index=16&type=chunk) [Significant Accounting Policies](index=9&type=section&id=%E9%87%8D%E5%A4%A7%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) Significant accounting policies used for interim financial information are consistent with the 2024 annual consolidated financial statements, with no material impact from new standard amendments effective January 1, 2025 - The significant accounting policies adopted in the preparation of these unaudited condensed consolidated interim financial information are consistent with those followed in the preparation of the Group's consolidated financial statements for the year ended December 31, 2024[17](index=17&type=chunk) - The Group has adopted and applied the amendments to standards and interpretations effective for accounting periods beginning on January 1, 2025, including amendments to HKFRS 7, HKFRS 5, HKAS 16, HKAS 1, and HKFRS 17[17](index=17&type=chunk)[18](index=18&type=chunk) - The adoption of these amendments to standards and interpretations has had no material impact on the Group's consolidated results and financial position[17](index=17&type=chunk) [Estimates](index=9&type=section&id=%E4%BC%B0%E8%A8%88) Preparation of condensed consolidated interim financial information involves management judgments, estimates, and assumptions regarding accounting policies and reported amounts, with actual results potentially differing, and key judgments and uncertainties remain similar to the 2024 annual financial statements - The preparation of the condensed consolidated 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[19](index=19&type=chunk) - Actual results may differ from these estimates[19](index=19&type=chunk) - 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 to the consolidated financial statements for the year ended December 31, 2024[19](index=19&type=chunk) [Financial Risk Management](index=9&type=section&id=%E8%B2%A1%E5%8B%99%E9%A2%A8%E9%9A%AA%E7%AE%A1%E7%90%86) The Group faces market (foreign exchange, interest rate), credit, and liquidity risks, with no changes in risk management since December 31, 2024, and monitors capital using a gearing ratio of **38.77%** as of June 30, 2025, an improvement from **48.45%** - The Group's operations are exposed to various financial risks: market risk (including foreign exchange risk and cash flow and fair value interest rate risk), credit risk, and liquidity risk[20](index=20&type=chunk) - There have been no changes in the risk management arrangements and policies since December 31, 2024[21](index=21&type=chunk) - The Group monitors capital on the basis of the gearing ratio, which is calculated as net debt divided by total equity, and as of June 30, 2025, the Group's gearing ratio was approximately **38.77%** (December 31, 2024: approximately **48.45%**)[23](index=23&type=chunk) [Financial Risk Factors](index=9&type=section&id=%E8%B2%A1%E5%8B%99%E9%A2%A8%E9%9A%AA%E5%9B%A0%E7%B4%A0) The Group's operations are exposed to market risks (foreign exchange, cash flow, and fair value interest rate risks), credit risk, and liquidity risk, with no changes in risk management arrangements or policies since December 31, 2024 - The Group's operations are exposed to market risk (including foreign exchange risk and cash flow and fair value interest rate risk), credit risk, and liquidity risk[20](index=20&type=chunk) - The condensed consolidated interim financial information does not include all financial risk management information and disclosures required in the annual financial statements and should be read in conjunction with the Group's annual financial statements as of December 31, 2024[20](index=20&type=chunk) - There have been no changes in the risk management arrangements and policies since December 31, 2024[21](index=21&type=chunk) [Capital Management](index=10&type=section&id=%E8%B3%87%E6%9C%AC%E7%AE%A1%E7%90%86) The Group's primary capital management objectives are ensuring going concern, maintaining sound capital ratios, and maximizing shareholder value, monitoring capital with a gearing ratio of approximately **38.77%** as of June 30, 2025, down from **48.45%** - The Group's primary objectives of capital management are to ensure the Group's ability to continue as a going concern and to maintain a sound capital ratio to support its business operations and maximize shareholder value[22](index=22&type=chunk) - The Group monitors capital on the basis of the gearing ratio, which is calculated as net debt divided by total equity[23](index=23&type=chunk) - As of June 30, 2025, the Group's gearing ratio was approximately **38.77%** (December 31, 2024: approximately **48.45%**)[23](index=23&type=chunk) [Fair Value Estimation](index=10&type=section&id=%E5%85%AC%E5%B9%B3%E5%80%BC%E4%BC%B0%E8%A8%88) The carrying amounts of the Group's current financial assets and liabilities approximate their fair values due to short maturities, and non-current deposits, lease liabilities, and bank borrowings also have carrying amounts similar to their fair values estimated using discounted cash flows - The carrying amounts of the Group's current financial assets and current financial liabilities approximate their fair values due to their short maturities[24](index=24&type=chunk) - The carrying amounts of non-current deposits, lease liabilities, and bank borrowings approximate their fair values, which are estimated based on discounted cash flows[24](index=24&type=chunk) [Offsetting Financial Assets and Liabilities](index=10&type=section&id=%E6%8A%B5%E9%8A%B7%E9%87%91%E8%9E%8D%E8%B3%87%E7%94%A2%E5%8F%8A%E9%87%91%E8%9E%8D%E8%B2%A0%E5%82%B5) The Group has no financial assets or liabilities subject to offsetting, enforceable master netting arrangements, or similar agreements - The Group has no financial assets and financial liabilities subject to offsetting, enforceable master netting arrangements, and similar agreements[25](index=25&type=chunk) [Revenue and Segment Information](index=11&type=section&id=%E6%94%B6%E5%85%A5%E5%8F%8A%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group treats providing turnkey solutions and trading parts and used semiconductor manufacturing equipment as a single operating segment, with total revenue of **NT$585.31 million** for the six months ended June 30, 2025, primarily from Taiwan and the USA, and **Customer A** contributing **67.88%** of total revenue - The Group regards the aggregate revenue and operating results generated from the provision of turnkey solutions and trading of parts and used semiconductor manufacturing equipment as a single operating segment[26](index=26&type=chunk) Revenue Streams (For the six months ended June 30) | Revenue Category | 2025 (NT$ thousand) | 2024 (NT$ thousand) | Proportion of Total Revenue (2025) | | :--- | :--- | :--- | :--- | | Provision of turnkey solutions | 113,690 | 226,597 | 19.42% | | Trading of parts and used semiconductor manufacturing equipment | 471,616 | 308,410 | 80.58% | | **Total Revenue** | **585,306** | **535,007** | **100.00%** | Geographical Segment Revenue (For the six months ended June 30) | Region | 2025 (NT$ thousand) | 2024 (NT$ thousand) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Taiwan | 290,847 | 195,244 | 48.97% | | United States | 226,407 | 126,809 | 78.54% | | China | 60,526 | 85,243 | -28.99% | | Singapore | 6,502 | 74,427 | -91.26% | | Japan | 777 | 52,393 | -98.52% | | Germany | 247 | 354 | -30.23% | | South Korea | - | 537 | -100.00% | | **Total** | **585,306** | **535,007** | **9.40%** | [Major Customer Information](index=12&type=section&id=%E4%B8%BB%E8%A6%81%E5%AE%A2%E6%88%B6%E8%B3%87%E6%96%99) As of June 30, 2025, **Customer A** contributed **NT$397.32 million**, representing **67.88%** of the Group's total revenue, a **77.52%** increase from the prior year, with **Customer B** also contributing over **10%** Major Customer Revenue Contribution (For the six months ended June 30) | Customer | 2025 (NT$ thousand) | 2024 (NT$ thousand) | 2025 Proportion of Total Revenue | | :--- | :--- | :--- | :--- | | Customer A | 397,317 | 223,819 | 67.88% | | Customer B | 70,557 | * | 12.05% | | Customer C | * | 58,105 | * | - Revenue from **Customer A** increased by **77.52%** from **NT$223,819 thousand** in 2024 to **NT$397,317 thousand** in 2025[31](index=31&type=chunk) - In 2025, **Customer B** contributed over **10%** of the Group's total revenue, while in 2024, **Customer C** contributed over **10%**[31](index=31&type=chunk) [Expenses by Nature](index=12&type=section&id=%E6%8C%89%E6%80%A7%E8%B3%AA%E5%8A%83%E5%88%86%E7%9A%84%E9%96%8B%E6%94%AF) For the six months ended June 30, 2025, the Group's total expenses were **NT$477.57 million**, a slight increase from the prior period, with employee benefit expenses rising by **14.02%** to **NT$144.29 million**, while travel expenses significantly decreased by **50.46%** Expenses by Nature (For the six months ended June 30) | Expense Category | 2025 (NT$ thousand) | 2024 (NT$ thousand) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Auditor's remuneration — audit services | 5,964 | 6,013 | -0.81% | | Auditor's remuneration — non-audit services | - | 120 | -100.00% | | Cost of materials used | 240,693 | 254,768 | -5.52% | | Amortisation of intangible assets | 4,652 | 6,282 | -25.95% | | Depreciation of property, plant and equipment | 8,149 | 8,557 | -4.77% | | Depreciation of right-of-use assets | 8,867 | 6,186 | 43.33% | | Research expenses | 611 | 672 | -9.08% | | Net provision for warranty | 7,810 | 3,762 | 107.60% | | Commission | 2,895 | 6,953 | -58.37% | | Employee benefit expenses | 144,289 | 126,550 | 14.02% | | Professional fees | 3,635 | 5,731 | -36.58% | | Short-term lease related expenses | 2,134 | 1,935 | 10.28% | | Transportation expenses | 5,078 | 5,302 | -4.22% | | Travel expenses | 5,997 | 12,106 | -50.46% | | Insurance expenses | 13,763 | 13,024 | 5.67% | | Entertainment expenses | 3,917 | 2,375 | 65.77% | | Utilities expenses | 2,167 | 1,865 | 16.19% | | Others | 16,953 | 12,765 | 32.82% | | **Total** | **477,574** | **474,966** | **0.55%** | [Income Tax Expense](index=13&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) For the six months ended June 30, 2025, income tax expense was **NT$23.06 million**, a decrease from **NT$24.99 million** in the prior period, with the estimated average annual tax rate remaining at approximately **23.6%** Income Tax Expense (For the six months ended June 30) | Indicator | 2025 (NT$ thousand) | 2024 (NT$ thousand) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Income tax expense | 23,059 | 24,989 | -7.72% | | Estimated average annual tax rate | 23.6% | 23.6% | 0.00% | - Income tax is recognized based on management's estimate of the weighted average annual income tax rate expected for the entire financial year[33](index=33&type=chunk) [Earnings Per Share](index=13&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 by **25.84%** to **NT$4.87 cents** from **NT$3.87 cents** in the prior period, with diluted earnings per share being the same due to no potential dilutive ordinary shares Earnings Per Share (For the six months ended June 30) | Indicator | 2025 | 2024 | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Profit attributable to owners of the Company (NT$ thousand) | 48,699 | 38,703 | 25.84% | | Weighted average number of ordinary shares outstanding (thousand shares) | 1,000,000 | 1,000,000 | 0.00% | | Basic earnings per share (NT$ cents) | 4.87 | 3.87 | 25.84% | - Diluted earnings per share is the same as basic earnings per share as there were no potential dilutive ordinary shares during these periods[36](index=36&type=chunk) [Basic Earnings Per Share](index=13&type=section&id=%E5%9F%BA%E6%9C%AC%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) Basic earnings per share for the six months ended June 30, 2025, was **NT$4.87 cents**, calculated based on profit attributable to owners of **NT$48.70 million** and a weighted average of **1,000,000,000** shares outstanding - Basic earnings per share is calculated based on the profit for the period attributable to owners of the Company of approximately **NT$48,699,000** (2024: approximately **NT$38,703,000**)[34](index=34&type=chunk) - The weighted average number of ordinary shares outstanding during the period was **1,000,000,000** shares (2024: **1,000,000,000** shares)[34](index=34&type=chunk) - Basic earnings per share was **NT$4.87 cents** (2024: **NT$3.87 cents**)[35](index=35&type=chunk) [Diluted Earnings Per Share](index=13&type=section&id=%E6%94%A4%E8%96%84%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) Diluted earnings per share is identical to basic earnings per share for the six months ended June 30, 2025, as there were no potential dilutive ordinary shares during the period - As there were no potential dilutive ordinary shares during these periods, diluted earnings per share is the same as basic earnings per share[36](index=36&type=chunk) [Property, Plant and Equipment and Intangible Assets](index=14&type=section&id=%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%A8%AD%E5%82%99%E4%BB%A5%E5%8F%8A%E7%84%A1%E5%BD%A2%E8%B3%87%E7%94%A2) For the six months ended June 30, 2025, the Group acquired leasehold improvements of approximately **NT$450 thousand** and office equipment of approximately **NT$453 thousand**, with new intangible assets of approximately **NT$289 thousand**, and no construction in progress expenses - For the six months ended June 30, 2025, the Group acquired leasehold improvements at a cost of approximately **NT$450,000** (2024: **NT$129,000**)[38](index=38&type=chunk) - Office equipment of approximately **NT$453,000** was acquired (2024: approximately **NT$1,140,000**)[38](index=38&type=chunk) - New intangible assets of approximately **NT$289,000** were added (2024: approximately **NT$590,000**)[38](index=38&type=chunk) [Trade Receivables](index=14&type=section&id=%E8%B2%A3%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of June 30, 2025, net trade receivables decreased to **NT$190.74 million** from **NT$208.58 million** on December 31, 2024, with credit terms of **30 to 90 days** and an impairment loss provision of **NT$5.01 million** Trade Receivables Analysis (As of June 30) | Indicator | June 30, 2025 (NT$ thousand) | December 31, 2024 (NT$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Trade receivables | 195,746 | 213,590 | -8.36% | | Less: Impairment provision | (5,011) | (5,011) | 0.00% | | **Net** | **190,735** | **208,579** | **-8.65%** | - The Group normally grants credit periods ranging from **30 to 90 days** (December 31, 2024: **30 to 90 days**) to its major customers[39](index=39&type=chunk) - As of June 30, 2025, an impairment loss provision of **NT$5,011,000** was made (December 31, 2024: **NT$5,011,000**)[42](index=42&type=chunk) [Trade Receivables Analysis](index=14&type=section&id=%E8%B2%A3%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85%E5%88%86%E6%9E%90) As of June 30, 2025, gross trade receivables totaled **NT$195.75 million**, with an impairment provision of **NT$5.01 million**, resulting in a net of **NT$190.74 million**, and the Group grants **30 to 90-day** credit terms to major customers, applying a simplified approach for expected credit losses Trade Receivables Analysis (As of June 30) | Indicator | June 30, 2025 (NT$ thousand) | December 31, 2024 (NT$ thousand) | | :--- | :--- | :--- | | Trade receivables | 195,746 | 213,590 | | Less: Impairment provision | (5,011) | (5,011) | | **Net** | **190,735** | **208,579** | - The Group normally grants credit periods ranging from **30 to 90 days** (December 31, 2024: **30 to 90 days**) to its major customers[39](index=39&type=chunk) - The Group applies the simplified approach under HKFRS 9 to measure expected credit losses, which requires the use of a lifetime expected loss allowance for all trade receivables[40](index=40&type=chunk) [Ageing Analysis](index=14&type=section&id=%E8%B3%AC%E9%BD%A1%E5%88%86%E6%9E%90) As of June 30, 2025, trade receivables aged **0 to 30 days** constituted the largest portion at **NT$129.81 million**, while receivables over **1 year** increased to **NT$17.16 million**, with management deeming no additional impairment necessary due to no significant change in credit quality Ageing Analysis of Trade Receivables (As of June 30) | Ageing | June 30, 2025 (NT$ thousand) | December 31, 2024 (NT$ thousand) | | :--- | :--- | :--- | | 0 to 30 days | 129,812 | 151,404 | | 31 to 90 days | 26,726 | 26,879 | | 91 to 180 days | 13,779 | 6,276 | | 181 to 365 days | 3,257 | 17,092 | | Over 1 year | 17,161 | 6,928 | | **Total** | **190,735** | **208,579** | - Management, based on past credit history and considering current and forward-looking information, believes that no impairment provision is necessary for these balances due to no significant change in credit quality[42](index=42&type=chunk) [Trade and Other Payables](index=15&type=section&id=%E8%B2%A3%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2025, total trade and other payables decreased by **24.15%** to **NT$225.60 million** from **NT$297.68 million** on December 31, 2024, primarily due to a **35.11%** reduction in trade payables to **NT$127.66 million** Trade and Other Payables (As of June 30) | Category | June 30, 2025 (NT$ thousand) | December 31, 2024 (NT$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Trade payables | 127,659 | 196,740 | -35.11% | | Other payables | 923 | 983 | -6.10% | | Accrued expenses | 82,217 | 82,284 | -0.08% | | Warranty provision | 14,798 | 17,671 | -16.26% | | **Total** | **225,597** | **297,678** | **-24.15%** | [Trade Payables Analysis](index=15&type=section&id=%E8%B2%A3%E6%98%93%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85%E5%88%86%E6%9E%90) As of June 30, 2025, trade payables were **NT$127.66 million**, a **35.11%** decrease from **NT$196.74 million** on December 31, 2024 Trade Payables (As of June 30) | Category | June 30, 2025 (NT$ thousand) | December 31, 2024 (NT$ thousand) | | :--- | :--- | :--- | | Trade payables | 127,659 | 196,740 | [Ageing Analysis](index=15&type=section&id=%E8%B3%AC%E9%BD%A1%E5%88%86%E6%9E%90) As of June 30, 2025, trade payables due on demand or within one month significantly decreased to **NT$64.01 million** from **NT$112.15 million** on December 31, 2024, while payables over one year slightly increased Ageing Analysis of Trade Payables (As of June 30) | Ageing | June 30, 2025 (NT$ thousand) | December 31, 2024 (NT$ thousand) | | :--- | :--- | :--- | | On demand or less than one month | 64,014 | 112,154 | | One month to three months | 46,637 | 73,245 | | Three months to one year | 14,945 | 9,763 | | Over one year | 2,063 | 1,578 | | **Total** | **127,659** | **196,740** | [Bank Borrowings](index=16&type=section&id=%E9%8A%80%E8%A1%8C%E5%80%9F%E6%AC%BE) As of June 30, 2025, total bank borrowings decreased by **7.04%** to **NT$550.10 million** from **NT$591.79 million** on December 31, 2024, comprising **NT$330.12 million** in secured and **NT$219.98 million** in unsecured borrowings, with unutilized facilities of approximately **NT$405.00 million** Total Bank Borrowings (As of June 30) | Category | June 30, 2025 (NT$ thousand) | December 31, 2024 (NT$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total secured borrowings | 330,122 | 335,364 | -1.56% | | Total unsecured borrowings | 219,981 | 256,421 | -14.21% | | **Total Borrowings** | **550,103** | **591,785** | **-7.04%** | - The Group's unutilized borrowing facilities amounted to approximately **NT$405,000,000** (December 31, 2024: approximately **NT$380,045,000**)[47](index=47&type=chunk) - As of June 30, 2025, bank interest rates ranged from **2.275%** to **3.525%** per annum (December 31, 2024: **2.275%** to **6.320%** per annum)[46](index=46&type=chunk) [Total Borrowings](index=16&type=section&id=%E5%80%9F%E6%AC%BE%E7%B8%BD%E9%A1%8D) As of June 30, 2025, the Group's total bank borrowings were **NT$550.10 million**, with **NT$450.71 million** current and **NT$99.39 million** non-current, including **NT$330.12 million** secured and **NT$219.98 million** unsecured Total Bank Borrowings (As of June 30) | Category | Current (NT$ thousand) | Non-current (NT$ thousand) | Total (NT$ thousand) | | :--- | :--- | :--- | :--- | | Secured bank borrowings | 262,000 | - | 262,000 | | Secured long-term bank borrowings | 10,480 | 57,642 | 68,122 | | **Total secured borrowings** | **272,480** | **57,642** | **330,122** | | Unsecured bank borrowings | 140,000 | - | 140,000 | | Unsecured long-term bank borrowings | 38,232 | 41,749 | 79,981 | | **Total unsecured borrowings** | **178,232** | **41,749** | **219,981** | | **Total Borrowings** | **450,712** | **99,391** | **550,103** | [Repayment Schedule](index=17&type=section&id=%E9%82%84%E6%AC%BE%E6%9C%9F) As of June 30, 2025, the Group's bank borrowings include **NT$450.71 million** due within one year, **NT$45.96 million** due between one and two years, **NT$37.71 million** due between two and five years, and **NT$15.72 million** due after five years Bank Borrowings Repayment Schedule (As of June 30) | Repayment Period | June 30, 2025 (NT$ thousand) | December 31, 2024 (NT$ thousand) | | :--- | :--- | :--- | | Within one year | 450,712 | 468,025 | | More than one year but not more than two years | 45,958 | 48,763 | | More than two years but not more than five years | 37,713 | 54,036 | | After five years | 15,720 | 20,961 | | **Total** | **550,103** | **591,785** | [Details of Secured and Unsecured Borrowings](index=17&type=section&id=%E6%8A%B5%E6%8A%BC%E5%8F%8A%E7%84%A1%E6%8A%B5%E6%8A%BC%E5%80%9F%E6%AC%BE%E8%A9%B3%E6%83%85) Secured short-term bank borrowings are collateralized by the Group's land and buildings at floating rates, while secured long-term borrowings are also collateralized by land and buildings, repaid in installments at floating rates, and unsecured short-term borrowings are four term loans at bank deposit rates plus a spread, with unsecured long-term borrowings being two installment loans at floating rates - Secured short-term bank borrowings consist of two loans, collateralized by the Group's land and buildings, and are repayable on their maturity dates[45](index=45&type=chunk) - Secured long-term bank borrowings consist of two loans, collateralized by the Group's land and buildings, bearing interest at a floating rate of one-year postal savings deposit rate plus **0.74%** per annum[45](index=45&type=chunk) - Unsecured short-term bank borrowings consist of four term loans totaling **NT$140,000,000**, bearing interest at the bank's one-month deposit rate plus a specific spread[48](index=48&type=chunk) - Unsecured long-term bank borrowings consist of two loans, bearing interest at a floating rate of one-year postal savings deposit rate plus **1.84%** and **0.068%** per annum, respectively, and are repayable in installments[48](index=48&type=chunk) [Share Capital](index=18&type=section&id=%E8%82%A1%E6%9C%AC) As of June 30, 2025, the company's authorized share capital was **2,000,000,000** shares of **HK$0.01** each, totaling **NT$77.63 million**, with **1,000,000,000** issued and fully paid shares totaling **NT$38.82 million**, unchanged from December 31, 2024 Share Capital Structure (As of June 30) | Category | Number of Shares | Share Capital (NT$ thousand) | | :--- | :--- | :--- | | Authorized share capital | 2,000,000,000 | 77,630 | | Issued and fully paid share capital | 1,000,000,000 | 38,815 | - The ordinary shares of **HK$0.01** par value each in the Company's share capital remained unchanged as of December 31, 2024, January 1, 2025, and June 30, 2025[49](index=49&type=chunk) [Dividends](index=18&type=section&id=%E8%82%A1%E6%81%AF) The Board does not recommend an interim dividend for the six months ended June 30, 2025, consistent with the prior period - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 (for the six months ended June 30, 2024: nil)[50](index=50&type=chunk) [Commitments](index=18&type=section&id=%E6%89%BF%E6%93%94) The Group leases properties and office equipment under irrevocable short-term lease agreements, with total future minimum lease payments of **NT$1.07 million** due within one year as of June 30, 2025 - The Group leases properties and office equipment under irrevocable short-term lease agreements, which do not include renewal options[51](index=51&type=chunk) Irrevocable Short-Term Lease Commitments (As of June 30) | Period | June 30, 2025 (NT$ thousand) | December 31, 2024 (NT$ thousand) | | :--- | :--- | :--- | | Within one year | 1,073 | 410 | [Related Party Transactions](index=19&type=section&id=%E9%97%9C%E8%81%AF%E6%96%B9%E4%BA%A4%E6%98%93) Related parties include those with control or significant influence over financial and operating decisions, and during the period, the Group engaged in key management personnel compensation transactions totaling **NT$13.92 million**, a slight decrease from the prior period, which are not considered disclosable connected transactions under GEM Listing Rules - Related parties are those persons who have the ability to control or exercise significant influence over the financial and operating decisions of another party, and persons under common control are also considered related[53](index=53&type=chunk) Key Management Personnel Compensation (For the six months ended June 30) | Compensation Category | 2025 (NT$ thousand) | 2024 (NT$ thousand) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Short-term employee benefits — salaries, allowances and benefits in kind | 13,750 | 14,927 | -7.89% | | Post-employment benefits — defined contribution retirement plans | 172 | 176 | -2.27% | | **Total** | **13,922** | **15,103** | **-7.70%** | - To the best knowledge of the Directors, none of these related party transactions constituted connected transactions subject to disclosure under the GEM Listing Rules[54](index=54&type=chunk) Management Discussion and Analysis [Market Overview](index=20&type=section&id=%E5%B8%82%E5%A0%B4%E6%A6%82%E8%A7%80) The global semiconductor market continued to grow in H1 2025, driven by AI, automotive electronics, new energy, and IoT, with SIA reporting a **19.8%** increase in May 2025 sales to **US$59 billion**, and IDC/Gartner indicating stable smartphone/PC shipments and strong EV sales - In the first half of 2025, the global semiconductor market continued its growth trend, driven by new technologies such as AI, with increasing penetration rates of new technologies and products in automotive electronics, new energy, IoT, big data, and artificial intelligence[56](index=56&type=chunk) - According to the latest report from the Semiconductor Industry Association (SIA), global semiconductor sales reached **US$59 billion** in May 2025, an increase of **19.8%** from **US$49.2 billion** in May 2024, marking **19** consecutive months of year-on-year growth[56](index=56&type=chunk) - International Data Corporation (IDC) reported that global smartphone shipments reached **295.2 million** units in the second quarter of 2025, a year-on-year increase of **1%**, marking eight consecutive quarters of growth[57](index=57&type=chunk) - Gartner's preliminary statistics show that global personal computer (PC) shipments exceeded **63 million** units in the second quarter of 2025, a year-on-year increase of **4.4%**[57](index=57&type=chunk) - Data from RhoMotion research firm indicates that global sales of electric and plug-in hybrid vehicles increased to **1.8 million** units in June 2025, a year-on-year increase of **24%**[57](index=57&type=chunk) [Business Review](index=21&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) As a Taiwan-based turnkey solution provider and exporter of semiconductor manufacturing equipment and parts, the Group achieved solid performance in H1 2025, with total revenue up **9.40%** to **NT$585.31 million**, total comprehensive income attributable to owners surging **118.02%** to **NT$68.24 million**, and basic EPS increasing **25.84%** to **NT$4.87 cents** - The Group is a Taiwan-based turnkey solution provider and exporter of parts and used semiconductor manufacturing equipment[58](index=58&type=chunk) - For the six months ended June 30, 2025, the Group's total revenue reached approximately **NT$585.31 million** (for the six months ended June 30, 2024: approximately **NT$535.01 million**), representing a year-on-year increase of **9.40%**[58](index=58&type=chunk) - Total comprehensive income for the period attributable to owners of the Company was approximately **NT$68.24 million** (for the six months ended June 30, 2024: approximately **NT$31.30 million**), representing a significant year-on-year increase of **118.02%**[58](index=58&type=chunk) - Basic earnings per share was approximately **NT$4.87 cents** (for the six months ended June 30, 2024: approximately **NT$3.87 cents**), representing a year-on-year increase of **25.84%**[58](index=58&type=chunk) [Overall Performance](index=21&type=section&id=%E6%95%B4%E9%AB%94%E6%A5%AD%E7%B8%BE) The Group's total revenue for H1 2025 reached **NT$585.31 million**, a **9.40%** year-on-year increase, with total comprehensive income attributable to owners at **NT$68.24 million**, up **118.02%**, and basic earnings per share at **NT$4.87 cents**, up **25.84%** Overall Performance Overview (For the six months ended June 30) | Indicator | 2025 (NT$ million) | 2024 (NT$ million) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 585.31 | 535.01 | 9.40% | | Total comprehensive income for the period attributable to owners of the Company | 68.24 | 31.30 | 118.02% | | Basic earnings per share (NT$ cents) | 4.87 | 3.87 | 25.84% | [Turnkey Solutions](index=21&type=section&id=%E7%B5%B1%E5%8C%85%E8%A7%A3%E6%B1%BA%E6%96%B9%E6%A1%88) The Group provides turnkey solutions for parts and used semiconductor manufacturing equipment, including hot furnace tubes and developing devices, generating approximately **NT$113.69 million** in revenue for the six months ended June 30, 2025, representing **19.42%** of total revenue, a decrease from the prior period - The parts and used semiconductor manufacturing equipment provided by the Group include hot furnace tubes, developing devices, etc., used in the front-end manufacturing process of semiconductors and wafer processing[59](index=59&type=chunk) - For the six months ended June 30, 2025, the Group's revenue from turnkey solutions was approximately **NT$113.69 million** (for the corresponding period in 2024: approximately **NT$226.60 million**)[59](index=59&type=chunk) - Revenue from turnkey solutions accounted for approximately **19.42%** of the Group's total revenue (for the corresponding period in 2024: approximately **42.35%**)[59](index=59&type=chunk) [Trading of Parts and Used Semiconductor Manufacturing Equipment](index=21&type=section&id=%E9%9B%B6%E4%BB%B6%E5%8F%8A%E4%BA%8C%E6%89%8B%E5%8D%8A%E5%B0%8E%E9%AB%94%E8%A3%BD%E9%80%A0%E8%A8%AD%E5%82%99%E8%B2%A3%E6%98%93) During the review period, revenue from trading parts and used semiconductor manufacturing equipment was approximately **NT$471.62 million**, accounting for approximately **80.58%** of the Group's total revenue, a significant increase from **NT$308.41 million** in the prior period - During the review period, the Group's revenue from trading of parts and used semiconductor manufacturing equipment was approximately **NT$471.62 million** (for the corresponding period in 2024: approximately **NT$308.41 million**)[60](index=60&type=chunk) - Trading of parts and used semiconductor manufacturing equipment accounted for approximately **80.58%** of the Group's total revenue (for the corresponding period in 2024: approximately **57.65%**)[60](index=60&type=chunk) [Financial Review](index=22&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) For the six months ended June 30, 2025, the Group's total revenue was **NT$585.31 million**, driven by significant growth in trading used semiconductor parts, with US and Taiwan operations revenue increasing by **78.54%** and **48.97%** respectively, gross profit rising **28.98%** to **NT$201.97 million**, and total comprehensive income attributable to owners growing **118.02%** - For the six months ended June 30, 2025, the Group's total revenue was approximately **NT$585.31 million** (for the corresponding period in 2024: approximately **NT$535.01 million**)[61](index=61&type=chunk) - Revenue from US operations significantly increased by **78.54%** compared to the previous year, accounting for approximately **38.68%** of the Group's total revenue[62](index=62&type=chunk) - Revenue from Taiwan operations increased by **48.97%** compared to the previous year, accounting for approximately **49.69%** of the Group's total revenue[62](index=62&type=chunk) - The Group's gross profit increased by **28.98%** year-on-year to approximately **NT$201.97 million** (for the corresponding period in 2024: approximately **NT$156.59 million**), while the overall gross profit margin increased by **5.24** percentage points to approximately **34.51%** (for the corresponding period in 2024: approximately **29.27%**)[62](index=62&type=chunk) - Total comprehensive income for the period attributable to owners of the Company was approximately **NT$68.24 million** (for the corresponding period in 2024: approximately **NT$31.30 million**), representing a significant year-on-year increase of **118.02%**[63](index=63&type=chunk) - Basic earnings per share was approximately **NT$4.87** (for the corresponding period in 2024: approximately **NT$3.87**), representing a year-on-year increase of **25.84%**[63](index=63&type=chunk) [Revenue and Gross Profit](index=22&type=section&id=%E6%94%B6%E5%85%A5%E5%8F%8A%E6%AF%9B%E5%88%A9) The Group's total revenue was **NT$585.31 million**, with **NT$471.62 million** from trading used semiconductor parts, leading to a **28.98%** increase in gross profit to **NT$201.97 million** and a **5.24** percentage point rise in gross profit margin to **34.51%**, supported by **78.54%** and **48.97%** revenue growth in US and Taiwan operations respectively Revenue and Gross Profit Overview (For the six months ended June 30) | Indicator | 2025 (NT$ million) | 2024 (NT$ million) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 585.31 | 535.01 | 9.40% | | Turnkey solutions revenue | 113.69 | 226.60 | -49.83% | | Trading of used semiconductor parts revenue | 471.62 | 308.41 | 52.92% | | Gross profit | 201.97 | 156.59 | 28.98% | | Gross profit margin | 34.51% | 29.27% | 5.24 percentage points | - Revenue from US operations significantly increased by **78.54%**, accounting for approximately **38.68%** of the Group's total revenue[62](index=62&type=chunk) - Revenue from Taiwan operations increased by **48.97%**, accounting for approximately **49.69%** of the Group's total revenue[62](index=62&type=chunk) [Profitability](index=22&type=section&id=%E7%9B%88%E5%88%A9%E8%83%BD%E5%8A%9B) Total comprehensive income attributable to owners was **NT$68.24 million**, a substantial **118.02%** year-on-year increase, with basic earnings per share growing by **25.84%** to **NT$4.87 cents** Profitability Overview (For the six months ended June 30) | Indicator | 2025 (NT$ million) | 2024 (NT$ million) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Total comprehensive income for the period attributable to owners of the Company | 68.24 | 31.30 | 118.02% | | Basic earnings per share (NT$ cents) | 4.87 | 3.87 | 25.84% | [Future Outlook](index=23&type=section&id=%E6%9C%AA%E4%BE%86%E5%B1%95%E6%9C%9B) Rapid global AI development is transforming the semiconductor industry, with WSTS forecasting **11.2%** market growth to **US$700.9 billion** in 2025, Gartner projecting **US$114.9 billion** for AI semiconductors, and Taiwan's semiconductor output expected to grow **19.1%**, while AI PCs, servers, and automotive semiconductors show strong potential despite smartphone market pressures - With the rapid development of global AI technology, the semiconductor industry is entering a historic turning point in its development[64](index=64&type=chunk) - The World Semiconductor Trade Statistics (WSTS) forecasts that global semiconductor market sales will grow by **11.2%** to **US$700.9 billion** in 2025[65](index=65&type=chunk) - Gartner estimates that the AI semiconductor market size will reach **US$114.9 billion** in 2025[65](index=65&type=chunk) - The Industrial Technology Research Institute (ITRI) International Institute of Industry Economics forecasts that Taiwan's semiconductor industry output value will grow by **19.1%** to **NT$6.33 trillion** in 2025, reaching a new historical high[65](index=65&type=chunk) - The Institute for Information Industry (MIC) forecasts that the popularization of AI PCs and the commercial replacement cycle will drive PC market growth in 2025, with server shipments expected to grow by **5.5%**[66](index=66&type=chunk) - PwC Taiwan estimates that the automotive semiconductor market will grow at an average annual rate of **10%**, with the semiconductor value per vehicle increasing from **US$800** in 2023 to **US$1,350** in 2030[67](index=67&type=chunk) [Liquidity and Capital Resources](index=24&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E6%BA%90) The Group primarily met liquidity needs through internal resources and bank borrowings, with total borrowings of approximately **NT$550.10 million** and a gearing ratio of approximately **38.77%** as of June 30, 2025, an improvement from **48.45%** - For the six months ended June 30, 2025, the Group primarily met its liquidity requirements through a combination of internal resources and bank borrowings[69](index=69&type=chunk) - As of June 30, 2025, the Group's total borrowings amounted to approximately **NT$550.10 million** (December 31, 2024: approximately **NT$591.79 million**)[69](index=69&type=chunk) - As of June 30, 2025, the Group's gearing ratio was approximately **38.77%** (December 31, 2024: approximately **48.45%**)[69](index=69&type=chunk) [Pledge of Assets](index=24&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, the Group pledged certain land and buildings with a carrying value of approximately **NT$251.49 million** to secure long-term and short-term bank borrowings, a slight decrease from December 31, 2024 - As of June 30, 2025, the Group pledged certain land and buildings to secure the Group's long-term and short-term bank borrowings[70](index=70&type=chunk) - The carrying value of the pledged assets was approximately **NT$251.49 million** (December 31, 2024: approximately **NT$253.74 million**)[70](index=70&type=chunk) [Exchange Rate Fluctuations and Hedging Risks](index=25&type=section&id=%E5%BD%99%E7%8E%87%E6%B3%A2%E5%8B%95%E5%8F%8A%E6%9C%89%E9%97%9C%E5%B0%8D%E6%B2%96%E7%9A%84%E9%A2%A8%E9%9A%AA) The Group's operations are mainly in Taiwan, with most transactions settled in NTD and USD, and the Board will monitor exchange rate fluctuations and take appropriate measures, having engaged in no derivative or hedging activities for foreign exchange risk during the review period - The operating activities of the Group's subsidiaries are mainly conducted in Taiwan, and most transactions are settled in New Taiwan Dollars and US Dollars[71](index=71&type=chunk) - The Group will closely monitor fluctuations in currency exchange rates and take appropriate measures when necessary[71](index=71&type=chunk) - During the review period, the Group did not engage in any derivative activities or enter into any hedging activities for foreign exchange risk[71](index=71&type=chunk) [Capital Commitments and Contingent Liabilities](index=25&type=section&id=%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94%E5%8F%8A%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group had no significant capital commitments or contingent liabilities, consistent with December 31, 2024 - As of June 30, 2025, the Group had no significant capital commitments (December 31, 2024: nil) and no significant contingent liabilities (December 31, 2024: nil)[72](index=72&type=chunk) [Significant Investments, Acquisitions, and Disposals of Subsidiaries and Capital Assets](index=25&type=section&id=%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2%E7%9A%84%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E3%80%81%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE) The Group made no significant investments, acquisitions, or disposals of subsidiaries and capital assets during the period - The Group had no significant investments in and disposals of subsidiaries and capital assets during the period[73](index=73&type=chunk) [Human Resources](index=25&type=section&id=%E4%BA%BA%E5%8A%9B%E8%B3%87%E6%BA%90) As of June 30, 2025, the Group employed approximately **264** full-time and contract employees primarily in Taiwan and China, with annual salary reviews for competitiveness and benefits including pensions, insurance, education, subsidies, and training - As of June 30, 2025, the Group employed approximately **264** employees[74](index=74&type=chunk) - All employees of the Group are full-time and contract employees located in Taiwan and the People's Republic of China ("China")[74](index=74&type=chunk) - Employee remuneration is reviewed annually to maintain competitive levels, and the Group also provides other benefits to employees, including but not limited to pensions, insurance, education, subsidies, and training courses[74](index=74&type=chunk) [Dividends](index=25&type=section&id=%E8%82%A1%E6%81%AF) The Board does not recommend an interim dividend for the six months ended June 30, 2025, consistent with the prior period - The Board does not recommend the payment of a dividend for the six months ended June 30, 2025 (for the six months ended June 30, 2024: nil)[75](index=75&type=chunk) Corporate Governance and Other Information [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares, or Debentures of the Company and its Associated Corporations](index=26&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E4%B8%BB%E8%A6%81%E8%A1%8C%E6%94%BF%E4%BA%BA%E5%93%A1%E6%96%BC%E6%9C%AC%E5%85%AC%E5%8F%B8%E5%8F%8A%E7%9B%B8%E8%81%AF%E6%B3%95%E5%9C%98%E8%82%A1%E4%BB%BD%E3%80%81%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E6%88%96%E5%82%B5%E6%AC%8A%E8%AD%89%E4%B8%AD%E7%9A%84%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) As of June 30, 2025, Mr. Yang Ming-Hsiang and Ms. Wei Hung-Li each held a **70.21%** long position in the company's shares, including beneficial ownership and interests as parties acting in concert, while Mr. Chiang Ting-Kuo held **0.25%** due to spousal interest, with no other disclosable interests or short positions Directors' and Chief Executive's Long Positions in Shares (As of June 30) | Director's Name | Capacity/Nature of Interest | Number of Shares Held | Approximate Percentage of Total Shares | | :--- | :--- | :--- | :--- | | Mr. Yang Ming-Hsiang | Beneficial owner | 37,975,000 | 3.80% | | | Interest of a party acting in concert | 664,075,000 | 66.41% | | | **Total** | **702,050,000** | **70.21%** | | Ms. Wei Hung-Li | Beneficial owner | 29,125,000 | 2.91% | | | Interest of a party acting in concert | 672,925,000 | 67.30% | | | **Total** | **702,050,000** | **70.21%** | | Mr. Chiang Ting-Kuo | Interest of spouse | 2,450,000 | 0.25% | - Save as disclosed above, as of June 30, 2025, none of the Directors or chief executive of the Company had any interests or short positions in the shares, underlying shares, or debentures of the Company or any of its associated corporations that were required to be notified to the Company and the Stock Exchange[78](index=78&type=chunk) [Substantial Shareholders' Interests in Shares, Underlying Shares, or Debentures of the Company](index=27&type=section&id=%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1%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%E6%88%96%E5%82%B5%E6%AC%8A%E8%AD%89%E4%B8%AD%E7%9A%84%E6%AC%8A%E7%9B%8A) As of June 30, 2025, Chia Chien Development Limited, Ever Wealth Holdings Limited, Planeta Investments Limited, Tai Yi Investment Co., Ltd., Mr. Fan Chiang-Sheng, and Mr. Lin Yen-Po were substantial shareholders, with Tai Yi, Mr. Fan, and Mr. Lin each deemed to hold approximately **70.21%** of shares due to a concert party agreement Substantial Shareholders' Long Positions in Shares (As of June 30) | Name of Substantial Shareholder | Capacity/Nature of Interest | Number of Shares Held | Approximate Percentage of Total Shares | | :--- | :--- | :--- | :--- | | Chia Chien Development Limited | Beneficial interest | 374,625,000 | 37.46% | | Ever Wealth Holdings Limited | Beneficial interest | 81,150,000 | 8.11% | | Planeta Investments Limited | Beneficial interest | 63,750,000 | 6.38% | | Tai Yi Investment Co., Ltd. | Beneficial interest | 111,300,000 | 11.13% | | | Interest of a party acting in concert | 590,750,000 | 59.08% | | | **Total** | **702,050,000** | **70.21%** | | Mr. Fan Chiang-Sheng | Beneficial owner | 2,925,000 | 0.30% | | | Interest of a party acting in concert | 699,125,000 | 69.91% | | | **Total** | **702,050,000** | **70.21%** | | Mr. Lin Yen-Po | Beneficial owner | 1,200,000 | 0.12% | | | Interest of a party acting in concert | 700,850,000 | 70.09% | | | **Total** | **702,050,000** | **70.21%** | - Mr. Yang Ming-Hsiang, Tai Yi Investment Co., Ltd., Ms. Wei Hung-Li, Mr. Lin Yen-Po, and Mr. Fan Chiang-Sheng are a group of controlling shareholders who have agreed to certain arrangements regarding their shareholdings under a concert party agreement[79](index=79&type=chunk)[83](index=83&type=chunk) [Share Option Scheme and Rights to Subscribe](index=30&type=section&id=%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%A8%88%E5%8A%83%E5%8F%8A%E8%AA%8D%E8%B3%BC%E6%AC%8A%E5%88%A9) The company adopted a share option scheme on June 20, 2017, but as of June 30, 2025, and the announcement date, no options have been granted, exercised, lapsed, or cancelled, and no outstanding options exist, nor do directors or chief executives hold any rights to subscribe for shares - The Share Option Scheme was adopted and approved by the then shareholders of the Company on June 20, 2017[93](index=93&type=chunk) - As of June 30, 2025, and up to the date of this interim results announcement, no share options have been granted, exercised, lapsed, or cancelled under the Share Option Scheme[93](index=93&type=chunk) - As of June 30, 2025, and up to the date of this interim results announcement, there were no outstanding share options under the Share Option Scheme[93](index=93&type=chunk) - Save as disclosed above, as of June 30, 2025, and up to the date of this announcement, none of the Directors and chief executive of the Company and their respective close associates had any interests in, or had been granted or exercised any rights to subscribe for, shares or related shares of the Company and/or its associated corporations[84](index=84&type=chunk) [Purchase, Sale, or Redemption of the Company's Listed Securities](index=32&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) From January 1, 2025, to June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed shares - From January 1, 2025, to June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed shares[94](index=94&type=chunk) [Directors' Interests in Competing Businesses](index=30&type=section&id=%E8%91%A3%E4%BA%8B%E6%96%BC%E7%AB%B6%E7%88%AD%E6%A5%AD%E5%8B%99%E4%B9%8B%E6%AC%8A%E7%9B%8A) From the listing date to the announcement date, no director, controlling shareholder, or their close associates held direct or indirect interests as a director or shareholder in any business competing or potentially competing with the Group, or having other conflicts of interest - From the Listing Date up to the date of this announcement, none of the Directors, controlling shareholders, or any of their respective close associates were directors or shareholders of any business, other than the Group's business, that directly or indirectly competes or may compete with the Group's business or has other conflicts of interest with the Group[86](index=86&type=chunk) [Directors' Interests in Transactions, Arrangements, or Material Contracts](index=30&type=section&id=%E8%91%A3%E4%BA%8B%E6%96%BC%E4%BA%A4%E6%98%93%E3%80%81%E5%AE%89%E6%8E%92%E6%88%96%E9%87%8D%E5%A4%A7%E5%90%88%E7%B4%84%E4%B9%8B%E6%AC%8A%E7%9B%8A) From January 1, 2025, to June 30, 2025, neither the company nor any associated company entered into any transaction, arrangement, or material contract in which a director or an entity connected with a director had a direct or indirect material interest - Neither the Company nor any associated company entered into any transaction, arrangement, or material contract in which a Director of the Company or an entity connected with a Director had a direct or indirect material interest at any time during the period from January 1, 2025, to June 30, 2025[87](index=87&type=chunk) [Directors' Securities Transactions / Model Code for Securities Transactions](index=30&type=section&id=%E8%91%A3%E4%BA%8B%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E2%88%95%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E4%B9%8B%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The company adopted the Model Code for Securities Transactions by Directors of Listed Issuers and confirmed directors' compliance from January 1, 2025, to June 30, 2025, also establishing written guidelines for employees with price-sensitive information, with no non-compliance found - The Company has adopted the required standard of dealings set out in Rules **5.48** to **5.67** of the GEM Listing Rules for securities transactions by Directors[88](index=88&type=chunk) - The Directors have confirmed that they have complied with the required standard of dealings from January 1, 2025, to June 30, 2025[88](index=88&type=chunk) - The Company has also established written guidelines for securities transactions by employees who may possess unpublished price-sensitive information of the Company, and no instances of non-compliance with the employee written guidelines have been found[89](index=89&type=chunk) [Compliance with Corporate Governance Code](index=31&type=section&id=%E9%81%B5%E5%AE%88%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%88%99) The Group adopted the principles and code provisions of the Corporate Governance Code, with no material deviations except for Code Provision C.2.1 (separation of Chairman and CEO roles), which the Board believes ensures consistent leadership and has sufficient checks and balances - The Group has adopted the principles and code provisions set out in the Corporate Governance Code (the "CG Code") contained in Appendix C1 to the GEM Listing Rules[90](index=90&type=chunk) - Save for the deviation from Code Provision C.2.1 of the CG Code, which stipulates that the roles of chairman and chief executive should be separate and not performed by the same individual, the Group has not materially deviated from the CG Code[90](index=90&type=chunk) - The Board believes that the dual role of Chairman and Chief Executive Officer by the same individual helps ensure consistent leadership within the Group and that sufficient checks and balances are in place[90](index=90&type=chunk) [Audit Committee and Review of Financial Statements](index=31&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83%E5%8F%8A%E5%AF%A9%E9%96%B1%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) The Audit Committee, established on June 20, 2017, comprising Mr. Cheng Chun Sing (Chairman), Mr. Kan Shing Chok, and Mr. Ho Pak Chuen (all independent non-executive directors), reviewed the Group's unaudited condensed consolidated interim results for the six months ended June 30, 2025, and is satisfied with its compliance with accounting standards and regulations - The Board established the Audit Committee of the Company on June 20, 2017, with written terms of reference in compliance with the GEM Listing Rules[91](index=91&type=chunk) - The members of the Audit Committee include Mr. Cheng Chun Sing (Chairman of the Audit Committee), Mr. Kan Shing Chok, and Mr. Ho Pak Chuen, all of whom are independent non-executive Directors[91](index=91&type=chunk) - The Audit Committee has reviewed the Group's unaudited condensed consolidated interim results, interim report, the accounting principles and practices adopted by the Group, and other financial reporting matters for the six months ended June 30, 2025, in conjunction with management[92](index=92&type=chunk) [By Order of the Board](index=32&type=section&id=%E6%89%BF%E8%91%A3%E4%BA%8B%E6%9C%83%E5%91%BD) This announcement is issued by the Board on August 21, 2025, by Mr. Yang

[Financial Summary](index=1&type=section&id=Financial%20Summary) The company reported a net loss attributable to owners and a loss per share, driven by significant declines in revenue and gross profit. [Key Financial Data](index=1&type=section&id=Key%20Financial%20Data) Revenue decreased 21.8% year-on-year, gross profit dropped 65.1%, resulting in a net loss of RMB 342 million and a loss per share of RMB 23.43 cents. | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 4,375,873 | 5,594,124 | (21.8) | | Gross Profit | 215,551 | 618,508 | (65.1) | | (Loss)/Profit Before Income Tax | (352,966) | 99,263 | (455.6) | | (Loss)/Profit Attributable to Owners of the Company | (342,053) | 88,506 | (486.5) | | Basic and Diluted (Loss)/Earnings Per Share (RMB cents per share) | (23.43) | 5.83 | (501.9) | - For the six months ended June 30, 2025, revenue from fruit and other food sales was **RMB 4,308.3 million**, accounting for approximately **98.5%** of total revenue[3](index=3&type=chunk) - For the six months ended June 30, 2025, total revenue from product sales to franchise stores was **RMB 3,076.9 million**, accounting for approximately **70.3%** of total revenue[3](index=3&type=chunk) [Operating Summary](index=2&type=section&id=Operating%20Summary) Total stores decreased by 27.2% to 4,386, and retail sales declined, while membership grew and private label brands expanded. Total Number of Stores as of June 30 | Store Type | 2025 | 2024 | | :--- | :--- | :--- | | Franchise Stores | 4,375 | 6,011 | | Self-operated Stores | 11 | 14 | | **Total** | **4,386** | **6,025** | Key Operating Data for the Six Months Ended June 30 | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Total Retail Sales (RMB '000) | 5,710,837 | 6,748,479 | | Overseas Direct Sales (RMB '000) | 113,341 | 141,027 | | Number of Members ('000) | 93,041 | 84,741 | | Number of Private Label Brands | 51 | 42 | [Performance Review](index=3&type=section&id=Performance%20Review) The company's performance review covers market trends, strategic adjustments, and operational highlights amidst a challenging economic environment. [Market Overview](index=3&type=section&id=Market%20Overview) Fresh fruit CPI rose 2.7% in H1 2025, indicating health value recognition, as the market shifted towards value and service, prompting retail and supply chain transformation. - In H1 2025, the national fresh fruit Consumer Price Index (CPI) increased by **2.7%** year-on-year compared to the same period in 2024, significantly higher than the **0.1%** decrease in the overall CPI during the same period[8](index=8&type=chunk) - In H1 2025, domestic fruit exports reached **USD 3.76 billion**, a year-on-year increase of approximately **6.2%** compared to the same period in 2024, while fruit imports were approximately **USD 10.74 billion**, a year-on-year decrease of approximately **5.3%**[9](index=9&type=chunk) [Company Strategy and Operations Review](index=4&type=section&id=Company%20Strategy%20and%20Operations%20Review) The company pursued its "high-quality and high-value-for-money" strategy, focusing on promotions, product optimization, and supply chain expansion, despite a revenue decline and net loss. - The company deepened its "high-quality and high-value-for-money fruit expert and leader" strategy, enhancing customer traffic and purchase frequency through promotional activities like "Good Fruit Gratitude" and "Daily Surprises"[10](index=10&type=chunk) - The Group's revenue decreased by approximately **21.8%** from **RMB 5,594.1 million** for the six months ended June 30, 2024, to **RMB 4,375.9 million** for the six months ended June 30, 2025[11](index=11&type=chunk) - The Group's gross profit decreased by approximately **65.1%** from **RMB 618.5 million** for the six months ended June 30, 2024, to **RMB 215.6 million** for the six months ended June 30, 2025[11](index=11&type=chunk) - For the six months ended June 30, 2025, the Group recorded a net loss attributable to owners of the company of **RMB 342.1 million**, compared to a profit of **RMB 88.5 million** in the same period of 2024[11](index=11&type=chunk) [Business Overview](index=5&type=section&id=Business%20Overview) This section provides a detailed overview of the company's retail and 2B business segments, including strategic initiatives, operational performance, and brand building efforts. [Retail Business Group](index=5&type=section&id=Retail%20Business%20Group) The retail business group optimized its offline network, upgraded operations, and expanded online channels, reducing store count but enhancing brand recognition and sales. [Offline Store Network Development](index=5&type=section&id=Offline%20Store%20Network%20Development) The offline store network reduced by 1,639 stores to 4,386 across 170+ cities in China by June 30, 2025, due to proactive optimization. Total Number of Franchise and Self-operated Stores as of June 30 | Store Type | 2025 | % | 2024 | % | | :--- | :--- | :--- | :--- | :--- | | Franchise stores managed by the Group | 3,570 | 81.4 | 4,707 | 78.1 | | Other franchise stores | 805 | 18.3 | 1,304 | 21.7 | | Subtotal (Franchise stores) | 4,375 | 99.7 | 6,011 | 99.8 | | Self-operated stores | 11 | 0.3 | 14 | 0.2 | | **Total** | **4,386** | **100.0** | **6,025** | **100.0** | - As of June 30, 2025, the Group's retail stores decreased by **1,639**, or approximately **27.0%**, from **6,025** as of June 30, 2024, to **4,386**[14](index=14&type=chunk) [Operational Strategy and Brand Building](index=6&type=section&id=Operational%20Strategy%20and%20Brand%20Building) The company upgraded store facades, expanded internationally, created themed stores, and optimized product offerings to enhance brand experience and drive sales. - As of June 30, 2025, the company has successfully established a regional market presence by opening **seven stores** in Indonesia[17](index=17&type=chunk) - Successfully launched eight "seasonal products with extreme value-for-money" such as Pa Pa Citrus, blueberries, and Feizixiao lychees, leading to an approximate **95.0%** year-on-year increase in store traffic and approximately **63.8%** year-on-year increase in total sales compared to the same period in 2024[18](index=18&type=chunk) [Online Channels and Membership System](index=7&type=section&id=Online%20Channels%20and%20Membership%20System) Online orders comprised 24.7% of total, with Meituan as a key contributor, and social commerce sales grew, despite a 32.9% decrease in paid members. - Orders placed through self-operated APP and mini-programs, Meituan, and Ele.me online channels accounted for approximately **24.7%** of the Group's total orders, with consumers placing orders through Meituan accounting for approximately **52.9%**[19](index=19&type=chunk) - For the six months ended June 30, 2025, sales from WeChat community group buying exceeded **RMB 58.0 million**, a year-on-year increase of approximately **12.9%** compared to the same period in 2024[19](index=19&type=chunk) - For the six months ended June 30, 2025, the total number of customers who purchased the Group's fruits and fruit products through Douyin live stream channels was approximately **1.87 million**, a year-on-year increase of approximately **64.47%** compared to the same period in 2024, with total retail sales of **RMB 53.49 million**, a year-on-year increase of approximately **29.32%**[20](index=20&type=chunk) - Gift sales as a percentage of Pagoda store retail sales increased from **12.8%** for the six months ended June 30, 2024, to approximately **14.8%** for the six months ended June 30, 2025[21](index=21&type=chunk) - As of June 30, 2025, the number of paid members decreased to approximately **719,000**, a year-on-year decrease of approximately **32.9%** compared to the same period in 2024[22](index=22&type=chunk) [2B Business Group](index=8&type=section&id=2B%20Business%20Group) H1 2025 saw 2B direct sales decrease by 1.7% to RMB 700.5 million, while domestic 2B sales grew 2.7%, and Shenzhen Banguo Technology achieved RMB 1.15 billion in GMV. - The Group's sales revenue from direct sales of fruits and other food decreased by approximately **1.7%** from **RMB 712.8 million** for the six months ended June 30, 2024, to **RMB 700.5 million** for the six months ended June 30, 2025[23](index=23&type=chunk) - Overseas direct sales of fruits decreased by approximately **19.6%** year-on-year compared to the same period in 2024, while total sales to domestic 2B customers increased by approximately **2.7%** year-on-year[23](index=23&type=chunk) - For the six months ended June 30, 2025, Shenzhen Banguo Technology Co., Ltd. achieved a Gross Merchandise Volume (GMV) of approximately **RMB 1.15 billion** and established **seven central warehouses** and **428 city warehouses**[23](index=23&type=chunk) [Category Brand Building](index=9&type=section&id=Category%20Brand%20Building) The company pursued a "high-quality and high-value-for-money" strategy, building differentiated fruit brands, with signature and A-grade fruits comprising 64.5% of retail sales and 51 private labels launched. - For the six months ended June 30, 2025, total sales of signature and A-grade fruits accounted for approximately **64.5%** of Pagoda store retail sales[25](index=25&type=chunk) - As of June 30, 2025, the company has successfully launched a total of **51 signature fruit private label brands**, and the total retail sales of these signature fruit private label brands accounted for approximately **14.9%** of Pagoda store retail sales for the six months ended June 30, 2025[25](index=25&type=chunk) [Other Business Updates and Outlook](index=9&type=section&id=Other%20Business%20Updates%20and%20Outlook) This section details the company's digital system upgrades and outlines its strategic vision for future growth across retail, 2B, and category brand development. [Digital System Upgrade](index=9&type=section&id=Digital%20System%20Upgrade) H1 2025 saw the company upgrade its gift card mini-program, establishing digital gifting capabilities and introducing a "worry-free gift after-sales card" to enhance customer experience. - In H1 2025, the company upgraded its gift card mini-program, establishing digital gifting capabilities and launching a "worry-free gift after-sales card"[27](index=27&type=chunk) [Strategic Outlook](index=10&type=section&id=Strategic%20Outlook) The company views H1 as a strategic transformation, continuing its "high-quality and high-value-for-money" strategy, focusing on retail optimization, 2B expansion, and category brand building. - In retail business, the company will iterate selection standards, strengthen freshness management, enhance quality control, and upgrade its scientific pricing system using accumulated data[28](index=28&type=chunk) - In 2B business, the company will continue to expand more categories and domestic and international channels, develop new fruit gift boxes, strengthen supply chain procurement capabilities, and firmly execute the "global sourcing, global selling" strategy[29](index=29&type=chunk) - In category brand building, the company will deepen cooperation with suppliers, introduce advanced agricultural technologies and seeds, jointly build competitive category brands, and focus on product differentiation and food safety[29](index=29&type=chunk) [Financial Performance Analysis](index=11&type=section&id=Financial%20Performance%20Analysis) This section provides a detailed analysis of the company's financial results, including income statement, revenue breakdown, cost and expense analysis, and non-HKFRS measures. [Consolidated Income Statement Overview](index=11&type=section&id=Consolidated%20Income%20Statement%20Overview) Revenue decreased 21.8% to RMB 4,375.9 million, gross profit fell 65.1% to RMB 215.6 million, resulting in an operating loss and a net loss of RMB 353.3 million for the period. Condensed Consolidated Interim Statement of Profit or Loss (For the six months ended June 30) | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Revenue | 4,375,873 | 5,594,124 | | Cost of Sales | (4,160,322) | (4,975,616) | | Gross Profit | 215,551 | 618,508 | | Operating (Loss)/Profit | (319,856) | 127,920 | | (Loss)/Profit Before Income Tax | (352,966) | 99,263 | | (Loss)/Profit for the Period | (353,251) | 83,955 | | (Loss)/Profit Attributable to Owners of the Company | (342,053) | 88,506 | | Basic and Diluted (Loss)/Earnings Per Share (RMB cents per share) | (23.43) | 5.83 | [Revenue Analysis](index=12&type=section&id=Revenue%20Analysis) Total revenue decreased 21.8% year-on-year, primarily due to declining fruit and food sales, reduced franchise store revenue, and lower overseas direct sales, partially offset by domestic 2B growth. [Revenue by Operating Segment](index=12&type=section&id=Revenue%20by%20Operating%20Segment) Total revenue decreased 21.8% to RMB 4,375.9 million, with fruit and food sales comprising 98.5%, while royalty, franchise, membership, and other income streams all declined. Revenue by Operating Segment for the Six Months Ended June 30 | Operating Segment | 2025 (RMB '000) | % | 2024 (RMB '000) | % | | :--- | :--- | :--- | :--- | :--- | | Fruit and other food sales | 4,308,322 | 98.5 | 5,435,726 | 97.2 | | Royalty and franchise income | 8,575 | 0.2 | 67,157 | 1.2 | | Membership fee income | 21,687 | 0.5 | 38,353 | 0.7 | | Others | 37,289 | 0.8 | 52,888 | 0.9 | | **Total** | **4,375,873** | **100.0** | **5,594,124** | **100.0** | - The Group's total revenue decreased by approximately **21.8%** from **RMB 5,594.1 million** for the six months ended June 30, 2024, to **RMB 4,375.9 million** for the six months ended June 30, 2025[34](index=34&type=chunk) [Revenue from Fruit and Other Food Sales by Distribution Channel](index=13&type=section&id=Revenue%20from%20Fruit%20and%20Other%20Food%20Sales%20by%20Distribution%20Channel) Fruit and food sales revenue decreased, mainly due to a 23.3% drop in franchise store income to RMB 3,076.9 million, alongside declines in direct sales and online channel revenue. Revenue from Fruit and Other Food Sales by Distribution Channel for the Six Months Ended June 30 | Distribution Channel | 2025 (RMB '000) | % | 2024 (RMB '000) | % | | :--- | :--- | :--- | :--- | :--- | | Franchise stores | 3,076,920 | 71.4 | 4,011,787 | 73.8 | | Self-operated stores | 14,772 | 0.3 | 21,218 | 0.4 | | Regional agents | 479,212 | 11.1 | 627,807 | 11.5 | | Direct sales | 700,473 | 16.3 | 712,778 | 13.1 | | Online channels | 36,945 | 0.9 | 62,136 | 1.2 | | **Total** | **4,308,322** | **100.0** | **5,435,726** | **100.0** | - The decrease in revenue from franchise stores was primarily due to weak domestic consumption and a reduction in the number of franchise stores[37](index=37&type=chunk) - The decrease in direct sales revenue was mainly due to a reduction in the Group's 2B business in overseas markets, as export restrictions were imposed on certain domestic fruits in overseas markets[37](index=37&type=chunk) [Revenue by Geographical Market](index=32&type=section&id=Revenue%20by%20Geographical%20Market) Mainland China revenue decreased 21.9% to RMB 4,262.5 million, Indonesia's revenue fell 40.7%, Singapore's grew 33.5%, and Hong Kong and other countries' revenue declined 23.6%. Revenue by Geographical Market for the Six Months Ended June 30 | Region | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Mainland China | 4,262,532 | 5,453,097 | | Indonesia | 40,817 | 68,815 | | Singapore | 40,567 | 30,372 | | Hong Kong and other countries | 31,957 | 41,840 | | **Total** | **4,375,873** | **5,594,124** | [Cost and Expense Analysis](index=13&type=section&id=Cost%20and%20Expense%20Analysis) Sales cost decreased 16.4%, but gross profit fell 65.1% to a 4.9% margin due to product optimization, while other income declined and management expenses rose from share-based payments and severance. [Cost of Sales and Gross Profit](index=13&type=section&id=Cost%20of%20Sales%20and%20Gross%20Profit) Cost of sales decreased 16.4% to RMB 4,160.3 million, while gross profit fell 65.1% to RMB 215.6 million, and gross margin dropped to 4.9% due to product optimization. - Cost of sales decreased by approximately **16.4%** from **RMB 4,975.6 million** for the six months ended June 30, 2024, to **RMB 4,160.3 million** for the six months ended June 30, 2025[38](index=38&type=chunk) - The Group's gross profit decreased by approximately **65.1%** from **RMB 618.5 million** for the six months ended June 30, 2024, to **RMB 215.6 million** for the six months ended June 30, 2025[39](index=39&type=chunk) - The Group's gross profit margin decreased from **11.1%** for the six months ended June 30, 2024, to **4.9%** for the six months ended June 30, 2025[39](index=39&type=chunk) [Other Income and Gains](index=14&type=section&id=Other%20Income%20and%20Gains) Other income decreased 36.4% to RMB 17.4 million due to reduced government subsidies, and net other gains were RMB 7.0 million, impacted by joint venture investment losses. - The Group's other income decreased by approximately **36.4%** from **RMB 27.4 million** for the six months ended June 30, 2024, to **RMB 17.4 million** for the six months ended June 30, 2025, primarily due to a decrease in government grants[40](index=40&type=chunk) - The Group recorded net other gains of **RMB 7.0 million** for the six months ended June 30, 2025, mainly due to losses from the dilution of investment in Nanjing Golden Manor Agricultural Products Co., Ltd., a joint venture[41](index=41&type=chunk) [Selling and Administrative Expenses](index=15&type=section&id=Selling%20and%20Administrative%20Expenses) Selling expenses decreased 13.3% to RMB 257.2 million due to reduced personnel, while administrative expenses rose 28.2% to RMB 216.2 million, driven by share-based payments and severance costs. - The Group's selling expenses decreased by approximately **13.3%** from **RMB 296.6 million** for the six months ended June 30, 2024, to **RMB 257.2 million** for the six months ended June 30, 2025, primarily due to a reduction in sales personnel[42](index=42&type=chunk) - The Group's administrative expenses increased by approximately **28.2%** from **RMB 168.7 million** for the six months ended June 30, 2024, to **RMB 216.2 million** for the six months ended June 30, 2025[43](index=43&type=chunk) - The increase in administrative expenses was mainly due to **RMB 17.7 million** in share-based payment expenses from the share award scheme and **RMB 24.0 million** in severance compensation from large-scale layoffs[43](index=43&type=chunk) [Impairment Losses on Financial Assets and R&D Expenses](index=15&type=section&id=Impairment%20Losses%20on%20Financial%20Assets%20and%20R%26D%20Expenses) Net impairment losses on financial assets increased to RMB 39.9 million due to franchise store closures, while R&D expenses decreased 29.9% to RMB 46.5 million from reduced personnel. - Net impairment losses on financial assets increased from **RMB 8.9 million** in the same period of 2024 to **RMB 39.9 million** in the same period of 2025, primarily due to extended aging caused by the closure of franchise stores[44](index=44&type=chunk) - The Group's R&D expenses decreased by approximately **29.9%** from **RMB 66.3 million** for the six months ended June 30, 2024, to **RMB 46.5 million** for the six months ended June 30, 2025, primarily due to a reduction in R&D personnel[45](index=45&type=chunk) [Finance Costs and Share of Profits/Losses of Associates](index=16&type=section&id=Finance%20Costs%20and%20Share%20of%20Profits%2FLosses%20of%20Associates) Finance income decreased 57.1% to RMB 12.0 million, finance costs decreased 6.4% to RMB 49.2 million, and share of profits from associates and joint ventures turned profitable at RMB 4.1 million. - Finance income decreased by approximately **57.1%** from **RMB 27.9 million** for the six months ended June 30, 2024, to **RMB 12.0 million** for the six months ended June 30, 2025, primarily due to a decrease in interest income from bank deposits[46](index=46&type=chunk) - Finance costs decreased by approximately **6.4%** from **RMB 52.5 million** for the six months ended June 30, 2024, to **RMB 49.2 million** for the six months ended June 30, 2025, primarily due to a decrease in bank borrowings[46](index=46&type=chunk) - The Group recorded a net share of profits from associates and joint ventures of **RMB 4.1 million** for the six months ended June 30, 2025, compared to a net loss of **RMB 4.0 million** in the same period of 2024[47](index=47&type=chunk) [Profit/Loss Before Tax and for the Period](index=16&type=section&id=Profit%2FLoss%20Before%20Tax%20and%20for%20the%20Period) Profit before tax turned to a RMB 353.0 million loss, driven by product optimization, lower gross margin, and reduced franchise stores, resulting in a RMB 353.3 million net loss for the period. - The Group recorded a loss before income tax of **RMB 353.0 million** for the six months ended June 30, 2025, compared to a profit of **RMB 99.3 million** in the same period of 2024[48](index=48&type=chunk) - Income tax expense decreased by approximately **98.1%** from **RMB 15.3 million** for the six months ended June 30, 2024, to **RMB 0.3 million** for the six months ended June 30, 2025[49](index=49&type=chunk) - For the six months ended June 30, 2025, the Group recorded a net loss of approximately **RMB 353.3 million**, compared to a net profit of approximately **RMB 84.0 million** in the same period of 2024, with a net loss margin of **8.1%**[50](index=50&type=chunk) [Non-HKFRS Measures](index=17&type=section&id=Non-HKFRS%20Measures) The company presents adjusted net loss of RMB 295.2 million and an adjusted net loss margin of 6.7% (non-HKFRS measures), reflecting the exclusion of non-recurring items. Reconciliation of (Loss)/Profit for the Period and Net (Loss)/Profit Margin to Adjusted Net (Loss)/Profit and Adjusted Net (Loss)/Profit Margin | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | (Loss)/Profit for the period (as reported under HKFRS) | (353,251) | 83,955 | | Add: Share-based payment expenses | 17,688 | 4,959 | | Add: Severance compensation expenses related to layoffs or headcount adjustments | 24,002 | 2,718 | | Add: Loss/(gain) from dilution of investment in associates and joint ventures | 16,407 | (3,658) | | Adjusted net (loss)/profit for the period (Non-HKFRS measure) | (295,154) | 87,974 | | Net (loss)/profit margin (as reported under HKFRS) | (8.1%) | 1.5% | | Adjusted net (loss)/profit margin (Non-HKFRS measure) | (6.7%) | 1.6% | [Liquidity and Capital Resources](index=18&type=section&id=Liquidity%20and%20Capital%20Resources) This section details the company's capital structure, cash position, use of global offering proceeds, debt, pledged assets, and cash flow analysis. [Capital Structure and Cash Position](index=18&type=section&id=Capital%20Structure%20and%20Cash%20Position) Net assets decreased to RMB 2,465.2 million, with cash and bank balances of RMB 2,316.5 million, including RMB 1,954.9 million in unrestricted cash, facing manageable interest rate and foreign exchange risks. - As of June 30, 2025, the Group's net assets were **RMB 2,465.2 million**, compared to **RMB 2,810.3 million** as of December 31, 2024[55](index=55&type=chunk) - As of June 30, 2025, the Group's cash and bank balances were **RMB 2,316.5 million**, which included unrestricted cash and cash equivalents of **RMB 1,954.9 million**[56](index=56&type=chunk) [Use of Proceeds from Global Offering](index=19&type=section&id=Use%20of%20Proceeds%20from%20Global%20Offering) Net proceeds from the global offering were HKD 474.0 million, with HKD 236.6 million utilized for IT system upgrades, bank loan repayment, and general working capital as of June 30, 2025. Use of Net Proceeds from Global Offering as of June 30, 2025 | Intended Use | Adjusted Allocation of Net Proceeds (HKD Million) | Percentage of Total Net Proceeds (%) | Net Proceeds Utilized as of December 31, 2024 (HKD Million) | Balance of Net Proceeds Utilized for the Six Months Ended June 30, 2025 (HKD Million) | Balance of Unutilized Net Proceeds as of June 30, 2025 (HKD Million) | Expected Timeline | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Improve and upgrade operational and supply chain systems | 23.3 | 4.9 | 11.4 | 11.9 | Zero | – | | Upgrade and improve core backbone information technology systems and infrastructure | 169.5 | 35.8 | 92.4 | 68.2 | 8.9 | Before December 31, 2026 | | Repay part of interest-bearing bank borrowings | 91.5 | 19.3 | 91.5 | Zero | Zero | – | | Use as working capital and for other general corporate purposes | 189.7 | 40.0 | 23.3 | 156.5 | 9.9 | Before December 31, 2025 | | **Total** | **474.0** | **100.0** | **218.6** | **236.6** | **18.8** | | [Debt and Pledged Assets](index=20&type=section&id=Debt%20and%20Pledged%20Assets) The company had RMB 267.4 million in non-current and RMB 2,282.9 million in current bank borrowings, with gearing rising to 103.5% due to reduced equity, and pledged assets as collateral. - As of June 30, 2025, the Group had total non-current bank borrowings of **RMB 267.4 million** and current bank borrowings of **RMB 2,282.9 million**[60](index=60&type=chunk) - The Group's gearing ratio increased from **89.3%** as of December 31, 2024, to **103.5%** as of June 30, 2025, primarily due to a decrease in total equity[60](index=60&type=chunk) - As of June 30, 2025, the Group pledged right-of-use assets of **RMB 45.5 million** and buildings classified as property, plant and equipment of **RMB 21.4 million** for its bank borrowings[61](index=61&type=chunk) [Cash Flow Analysis](index=20&type=section&id=Cash%20Flow%20Analysis) Net cash used in operating activities was RMB 123.2 million, a shift from prior year's inflow, mainly due to decreased trade payables and increased receivables, while net cash from investing was RMB 191.4 million. - For the six months ended June 30, 2025, net cash used in operating activities was **RMB 123.2 million**, compared to net cash generated from operating activities of **RMB 277.7 million** for the six months ended June 30, 2024[62](index=62&type=chunk) - For the six months ended June 30, 2025, net cash generated from investing activities was **RMB 191.4 million**, compared to net cash used in investing activities of **RMB 1,002.7 million** for the six months ended June 30, 2024[62](index=62&type=chunk) - For the six months ended June 30, 2025, net cash used in financing activities was **RMB 8.3 million**, compared to net cash generated from financing activities of **RMB 905.8 million** for the six months ended June 30, 2024[63](index=63&type=chunk) [Financial Assets, Capital, and Investment Management](index=21&type=section&id=Financial%20Assets%2C%20Capital%2C%20and%20Investment%20Management) This section covers the company's investment portfolio, capital expenditures, contingent liabilities, and significant investment activities. [Investment Portfolio](index=21&type=section&id=Investment%20Portfolio) The company invests in low-risk wealth management products, primarily structured deposits, holding RMB 487.7 million in structured deposits and other fair value financial assets. - As of June 30, 2025, the Group held structured deposits (classified as financial assets at fair value through profit or loss) of **RMB 487.7 million**[64](index=64&type=chunk) - As of June 30, 2025, the Group held other financial assets at fair value through profit or loss of **RMB 50.0 million**[64](index=64&type=chunk) - As of June 30, 2025, the Group held financial assets at fair value through other comprehensive income of **RMB 37.5 million**[64](index=64&type=chunk) [Capital Expenditure](index=21&type=section&id=Capital%20Expenditure) Capital expenditure for H1 2025 was RMB 27.1 million, primarily for payments related to the new office building construction in Shenzhen. - For the six months ended June 30, 2025, the Group's capital expenditure was **RMB 27.1 million**, primarily for payments related to the new office building under construction in Yantian District, Shenzhen, China[66](index=66&type=chunk) [Contingent Liabilities and Guarantees](index=22&type=section&id=Contingent%20Liabilities%20and%20Guarantees) As of June 30, 2025, the company had no contingent liabilities, guarantees, or significant litigation. - As of June 30, 2025, the Group had no contingent liabilities, guarantees, or any material litigation against the Group[67](index=67&type=chunk) [Material Investments, Acquisitions, and Disposals](index=22&type=section&id=Material%20Investments%2C%20Acquisitions%2C%20and%20Disposals) In H1 2025, the company subscribed to short-term, principal-protected structured deposits from CITIC Bank (RMB 500 million) and Bank of Beijing (RMB 350 million), with no other material investments or disposals. - In H1 2025, the company subscribed to CITIC Bank structured deposit products with a total principal amount of **RMB 500 million**[69](index=69&type=chunk) - In H1 2025, the company subscribed to Bank of Beijing structured deposit products with a total principal amount of **RMB 350 million**[70](index=70&type=chunk) - Save as disclosed, in H1 2025, the company had no material investments, acquisitions, or disposals of subsidiaries, associates, and joint ventures[71](index=71&type=chunk) [Operational Efficiency and Human Resources](index=23&type=section&id=Operational%20Efficiency%20and%20Human%20Resources) This section analyzes the company's turnover ratios, employee information, and relationships with major suppliers and customers. [Turnover Ratios](index=23&type=section&id=Turnover%20Ratios) Average inventory turnover days increased to 12.3, trade receivables to 35.8 due to lower revenue, and trade payables to 21.5 due to extended settlement policies. - Average inventory turnover days slightly increased from **10.9 days** for the six months ended June 30, 2024, to **12.3 days** for the six months ended June 30, 2025[73](index=73&type=chunk) - Average trade receivables turnover days slightly increased from **34.2 days** for the six months ended June 30, 2024, to **35.8 days** for the six months ended June 30, 2025, primarily due to a decrease of approximately **21.8%** in the company's total revenue[73](index=73&type=chunk) - Average trade payables turnover days increased from **14.1 days** for the six months ended June 30, 2024, to **21.5 days** for the six months ended June 30, 2025, primarily due to the company extending its settlement policy since Q4 2024[73](index=73&type=chunk) [Employees and Benefits](index=24&type=section&id=Employees%20and%20Benefits) As of June 30, 2025, the company had 2,156 employees, with RMB 338.2 million in employee benefit expenses (7.7% of total revenue), focusing on talent development and incentive schemes. - As of June 30, 2025, the Group had **2,156 employees**[74](index=74&type=chunk) - In H1 2025, the Group incurred total employee benefit expenses of **RMB 338.2 million**, accounting for approximately **7.7%** of the Group's total revenue for the same period[74](index=74&type=chunk) [Major Suppliers and Customers](index=24&type=section&id=Major%20Suppliers%20and%20Customers) Purchases from the largest supplier were 5.3% of total procurement, with top five at 20.4%, while the largest customer contributed 1.5% of revenue, with top five (all franchisees) at 6.6%. - For the six months ended June 30, 2025, purchases from the Group's largest supplier accounted for approximately **5.3%** of the Group's total procurement costs for the same period, with the top five suppliers collectively accounting for **20.4%**[75](index=75&type=chunk) - For the six months ended June 30, 2025, revenue contributed by the Group's largest customer accounted for approximately **1.5%** of the Group's total revenue for the same period, with the top five customers collectively accounting for **6.6%**, all of whom were the Group's franchisees[75](index=75&type=chunk) [Notes to Financial Statements](index=25&type=section&id=Notes%20to%20Financial%20Statements) This section provides detailed notes to the condensed consolidated interim financial statements, including income statement, comprehensive income statement, statement of financial position, general information, accounting policies, segment information, expense details, income tax, earnings per share, dividends, trade receivables, and trade payables. [Condensed Consolidated Interim Statement of Profit or Loss](index=25&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Profit%20or%20Loss) This chapter presents the unaudited consolidated income statement for H1 2025, detailing revenue, costs, profits/losses, finance items, tax, and earnings per share. Condensed Consolidated Interim Statement of Profit or Loss (For the six months ended June 30) | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Revenue | 4,375,873 | 5,594,124 | | Cost of Sales | (4,160,322) | (4,975,616) | | Gross Profit | 215,551 | 618,508 | | Other income | 17,423 | 27,415 | | Net other gains | 6,993 | 22,517 | | Selling expenses | (257,161) | (296,617) | | Administrative expenses | (216,248) | (168,696) | | Net impairment loss allowance on financial assets | (39,920) | (8,884) | | Research and development expenses | (46,494) | (66,323) | | Operating (Loss)/Profit | (319,856) | 127,920 | | Finance income | 11,973 | 27,888 | | Finance costs | (49,152) | (52,531) | | Net finance costs | (37,179) | (24,643) | | Share of profits/(losses) of associates and joint ventures | 4,069 | (4,014) | | (Loss)/Profit Before Income Tax | (352,966) | 99,263 | | Income tax expense | (285) | (15,308) | | (Loss)/Profit for the Period | (353,251) | 83,955 | | (Loss)/Profit Attributable to Owners of the Company | (342,053) | 88,506 | | Non-controlling interests | (11,198) | (4,551) | | Basic and Diluted (Loss)/Earnings Per Share (RMB cents per share) | (23.43) | 5.83 | [Condensed Consolidated Interim Statement of Comprehensive Income](index=26&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Comprehensive%20Income) This chapter presents the unaudited consolidated statement of comprehensive income for H1 2025, showing a RMB 353.3 million loss for the period, with other comprehensive income primarily from fair value changes of financial assets. Condensed Consolidated Interim Statement of Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | (Loss)/Profit for the Period | (353,251) | 83,955 | | Other comprehensive income (net of tax) | 555 | 3,760 | | Total comprehensive (loss)/income for the Period | (352,696) | 87,715 | | Total comprehensive (loss)/income attributable to owners of the Company | (341,498) | 92,266 | | Non-controlling interests | (11,198) | (4,551) | [Condensed Consolidated Interim Statement of Financial Position](index=27&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Financial%20Position) This chapter presents the unaudited consolidated statement of financial position as of June 30, 2025, detailing assets, liabilities, and equity, with total assets of RMB 7,284.2 million, total liabilities of RMB 4,819.0 million, and net assets of RMB 2,465.2 million. Condensed Consolidated Interim Statement of Financial Position (As of June 30, 2025) | Indicator | 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | **Assets** | | | | Non-current assets | 2,201,439 | 2,323,108 | | Current assets | 5,082,726 | 5,496,480 | | **Total Assets** | **7,284,165** | **7,819,588** | | **Liabilities** | | | | Non-current liabilities | 726,233 | 650,050 | | Current liabilities | 4,092,730 | 4,359,240 | | **Total Liabilities** | **4,818,963** | **5,009,290** | | **Net Assets** | **2,465,202** | **2,810,298** | | **Equity** | | | | Capital and reserves attributable to owners of the Company | 2,373,670 | 2,707,568 | | Non-controlling interests | 91,532 | 102,730 | | **Total Equity** | **2,465,202** | **2,810,298** | [General Information and Basis of Preparation](index=29&type=section&id=General%20Information%20and%20Basis%20of%20Preparation) The company, incorporated in China in 2001 and listed on HKEX in 2023, operates a franchise retail network and fruit trading, with interim financial information prepared under HKAS 34. - The Company's shares have been listed on the Main Board of The Stock Exchange of Hong Kong Limited since **January 16, 2023**[82](index=82&type=chunk) - The Company and its subsidiaries are principally engaged in operating a franchise retail network and fruit trading[82](index=82&type=chunk) - The condensed consolidated interim financial information for the six months ended June 30, 2025, has been prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting"[83](index=83&type=chunk) [Accounting Policies](index=29&type=section&id=Accounting%20Policies) Accounting policies align with the 2024 annual report, adopting new standards like HKAS 21 and HKFRS 1 amendments, while management assesses the impact of other un-effective standards. - The accounting policies applied are consistent with those applied in the preparation of the Group's financial statements for the year ended December 31, 2024, except for income tax estimates and the adoption of new and revised standards, amendments to standards, and interpretations[84](index=84&type=chunk) - New and revised standards adopted by the Group include amendments to HKAS 21 and HKFRS 1 "Lack of Exchangeability"[84](index=84&type=chunk) - Management is assessing the financial impact of adopting the revised standards that are not yet effective[86](index=86&type=chunk) [Revenue and Segment Information](index=30&type=section&id=Revenue%20and%20Segment%20Information) Operating segments (Franchise, Trading, Others) are assessed by key decision-makers, with segment results excluding fair value gains/losses, auditor's remuneration, legal fees, income tax, and finance income/costs. - The chief operating decision-maker assesses the Group's performance in the following reportable operating segments: operating franchise and self-operated retail networks ("Franchise"), sales of fruits and other food - fruit trading ("Trading"), and others[88](index=88&type=chunk)[89](index=89&type=chunk) - Segment results measurement excludes the impact of fair value gains and losses on structured deposits, auditor's remuneration, legal and professional fees, income tax expense, interest income from bank deposits, and interest expense on borrowings[88](index=88&type=chunk) Contract Revenue and Segment Results by Operating Segment for the Six Months Ended June 30, 2025 | Segment | Contract Revenue (RMB '000) | Less: Inter-segment Revenue (RMB '000) | Revenue from External Customers (RMB '000) | Segment Results (RMB '000) | | :--- | :--- | :--- | :--- | :--- | | Franchise | 3,807,687 | – | 3,807,687 | (275,551) | | Trading | 724,421 | (168,370) | 556,051 | 10,688 | | Others | 24,956 | (12,821) | 12,135 | (12,810) | | **Total** | **4,557,064** | **(181,191)** | **4,375,873** | **(277,673)** | [Expense Details](index=33&type=section&id=Expense%20Details) Reporting period expenses include RMB 3,991.1 million for cost of inventories sold, RMB 338.2 million for employee benefits, RMB 66.8 million for depreciation and amortization, and other operational costs. Expense Details for the Six Months Ended June 30 | Expense Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Cost of inventories sold | 3,991,077 | 4,780,592 | | Employee benefit expenses (including directors' emoluments) | 338,244 | 331,252 | | Depreciation of property, plant and equipment | 30,155 | 25,633 | | Depreciation of right-of-use assets | 29,418 | 33,992 | | Amortisation of intangible assets | 7,186 | 8,948 | | Auditor's remuneration | 2,300 | 2,300 | | Legal and professional fees | 54,231 | 54,735 | | Transportation expenses | 77,561 | 97,914 | | Marketing and promotion expenses | 37,050 | 51,988 | | Office supplies | 3,155 | 3,735 | | Labor costs | 50,181 | 42,711 | | Short-term lease related expenses | 15,038 | 15,738 | | Travel and entertainment expenses | 5,796 | 7,750 | | Entertainment expenses | 2,019 | 4,790 | | Utilities expenses | 7,089 | 7,046 | | Other tax expenses | 7,067 | 10,700 | | Others | 22,658 | 27,428 | | **Total** | **4,680,225** | **5,507,252** | [Income Tax Expense](index=33&type=section&id=Income%20Tax%20Expense) Income tax expense was RMB 0.3 million, comprising current income tax of RMB 4.4 million and deferred tax of (RMB 4.1 million), recognized based on expected annual profit. Income Tax Expense for the Six Months Ended June 30 | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Current income tax | 4,362 | 16,305 | | Deferred tax | (4,077) | (997) | | **Income Tax Expense** | **285** | **15,308** | [Earnings Per Share](index=34&type=section&id=Earnings%20Per%20Share) Basic and diluted loss per share was RMB 23.43 cents, calculated from loss attributable to owners and weighted average shares, with diluted matching basic due to unfulfilled share award conditions. Basic (Loss)/Earnings Per Share for the Six Months Ended June 30 | Indicator | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | (Loss)/Profit attributable to owners of the Company (RMB '000) | (342,053) | 88,506 | | Weighted average number of shares outstanding ('000 shares) | 1,459,919 | 1,519,412 | | Basic (Loss)/Earnings Per Share (expressed in RMB cents) | (23.43) | 5.83 | - Diluted loss per share for the six months ended June 30, 2025, was the same as basic loss per share because the conditions for share awards had not yet been met[99](index=99&type=chunk) [Dividends](index=34&type=section&id=Dividends) A final dividend of RMB 0.0065 per share for 2024 was approved and recognized, while the Board does not recommend an interim dividend for the period ended June 30, 2025. - A final dividend of **RMB 0.0065** per ordinary share (equivalent to a total of approximately **RMB 10,006,000**) for the year ended December 31, 2024, was approved by the Company's shareholders and recognized in the condensed consolidated interim statement of financial position as of June 30, 2025[100](index=100&type=chunk) - The Board does not recommend the payment of an interim dividend for the period ended June 30, 2025[101](index=101&type=chunk) [Trade Receivables](index=35&type=section&id=Trade%20Receivables) As of June 30, 2025, total trade receivables were RMB 856.4 million (net RMB 773.0 million after allowance), with regular review of repayment progress and aging within a 90-day credit period. Total and Net Trade Receivables as of June 30, 2025 | Indicator | 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Total trade receivables | 856,350 | 1,034,749 | | Less: Loss allowance | (83,320) | (69,468) | | **Net Trade Receivables** | **773,030** | **965,281** | Aging Analysis of Trade Receivables as of June 30, 2025 | Aging | 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | 1 to 90 days | 553,115 | 653,062 | | 91 to 180 days | 189,573 | 285,007 | | 181 to 365 days | 41,603 | 36,101 | | Over one year | 72,059 | 60,579 | | **Total** | **856,350** | **1,034,749** | [Trade Payables](index=35&type=section&id=Trade%20Payables) As of June 30, 2025, total trade payables were RMB 466.3 million, with carrying amounts approximating fair values and denominated in RMB. Aging Analysis of Trade Payables as of June 30, 2025 | Aging | 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | 1 to 30 days | 433,047 | 474,711 | | 31 to 60 days | 18,155 | 20,879 | | 61 to 90 days | 1,841 | 6,859 | | Over 90 days | 13,251 | 25,421 | | **Total** | **466,294** | **527,870** | [Other Information](index=36&type=section&id=Other%20Information) This section provides additional information on interim dividends, corporate governance, securities trading, share repurchases, public float, post-reporting period events, audit committee review, and publication details. [Interim Dividend](index=36&type=section&id=Interim%20Dividend) The Board has resolved not to declare an interim dividend for the six months ended June 30, 2025. - The Board has resolved not to declare an interim dividend for the six months ended June 30, 2025[104](index=104&type=chunk) [Corporate Governance Practices](index=36&type=section&id=Corporate%20Governance%20Practices) The company maintains high corporate governance standards, adopting and complying with all applicable code provisions of the HKEX Listing Rules' Corporate Governance Code during the reporting period. - The Company has adopted the Corporate Governance Code set out in Appendix C1 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and has complied with all applicable code provisions for the six months ended June 30, 2025[105](index=105&type=chunk) [Standard Code for Securities Transactions](index=36&type=section&id=Standard%20Code%20for%20Securities%20Transactions) The company adopted the "Standard Code for Securities Transactions by Directors of Listed Issuers" (Listing Rules Appendix C3), confirming compliance by all directors and supervisors, with no employee breaches found. - The Company has adopted the "Standard Code for Securities Transactions by Directors of Listed Issuers" as set out in Appendix C3 to the Listing Rules and confirmed that all Directors and Supervisors have complied with the required standards set out in the Standard Code for the six months ended June 30, 2025[106](index=106&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=36&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) For H1 2025, neither the company nor its subsidiaries purchased, sold, or redeemed any of its listed securities, and no treasury shares were held. - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[107](index=107&type=chunk) [Public Float](index=36&type=section&id=Public%20Float) The company maintained a sufficient public float as required by Listing Rules for H1 2025 and up to the announcement date, with at least 25% of issued share capital held by the public. - For the six months ended June 30, 2025, and up to the date of this announcement, the Company has maintained a sufficient public float as required by the Listing Rules[108](index=108&type=chunk) [Events After the Reporting Period](index=36&type=section&id=Events%20After%20the%20Reporting%20Period) As of the date of this announcement, no significant events affecting the Group have occurred after June 30, 2025. - As of the date of this announcement, no significant events affecting the Group have occurred after June 30, 2025[109](index=109&type=chunk) [Audit Committee](index=37&type=section&id=Audit%20Committee) The Audit Committee, comprising two independent non-executive directors and one non-executive director, reviewed the Group's unaudited condensed consolidated interim financial information for H1 2025. - The Audit Committee, together with the Company's senior management, has reviewed the Group's unaudited condensed consolidated interim financial information for the six months ended June 30, 2025[110](index=110&type=chunk) [Scope of Work of PricewaterhouseCoopers](index=37&type=section&id=Scope%20of%20Work%20of%20PricewaterhouseCoopers) The unaudited condensed consolidated interim financial information was reviewed by PricewaterhouseCoopers in accordance with HKSAE 2410 issued by the HKICPA. - The condensed consolidated interim financial information is unaudited but has been reviewed by the Group's auditor, PricewaterhouseCoopers, in accordance with Hong Kong Standard on Review Engagements 2410 issued by the Hong Kong Institute of Certified Public Accountants[111](index=111&type=chunk) [Publication of 2025 Interim Results and 2025 Interim Report](index=37&type=section&id=Publication%20of%202025%20Interim%20Results%20and%202025%20Interim%20Report) This interim results announcement has been published on the company's website and the HKEX website, with the interim report to be dispatched and published as required. - This interim results announcement has been published on the Company's website (www.pagoda.com.cn) and the HKEX website (www.hkexnews.hk)[112](index=112&type=chunk)