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 本 公 告 全 部 或 任 何 部 分 內 容 而 產 生 或 因 倚 賴 該 等 內 容 而 引 致 的 任 何 損 失 承 擔 任 何 責 任。 Bright Future Technology Holdings Limited 輝煌明天科技控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：1351） 截 至2025年6月30日止六個月之 中期業績公告 輝煌明天科技控股有限公司（「本公司」）董 事（「董 事」）會（「董事會」）欣 然 公 佈 本 公 司 及 其 附 屬 公 司（「本集團」）截 至2025年6月30日止六個月的未經審核中期業 績，連 同 截 至2024年6月30日 止 六 個 月 的 比 較 數 字 如 下： 於 本 公 告 中，「我 們」指 本 公 司，倘 文 義 另 有 所 指，則 指 本 集 團。 | | | 財務業績摘要 | | | | | | | | | | | | | | | --- | --- ...

[Announcement Overview](index=1&type=section&id=Announcement%20Overview) This announcement, issued by DREAMEAST GROUP LIMITED (in compulsory liquidation), supplements its 2023 and 2024 full-year results, provides additional resumption guidance, and confirms continued trading suspension [Company and Announcement Basic Information](index=1&type=section&id=Company%20and%20Announcement%20Basic%20Information) This section details the company's identity as DREAMEAST GROUP LIMITED, currently in compulsory liquidation, and its stock code - Company Name: DREAMEAST GROUP LIMITED (夢東方集團有限公司), currently in compulsory liquidation[2](index=2&type=chunk) - Stock Code: **593**[2](index=2&type=chunk) [Main Purpose of Announcement](index=1&type=section&id=Main%20Purpose%20of%20Announcement) The announcement aims to provide additional information on deconsolidation, supplement financial results, and communicate new resumption guidance and continued trading suspension - The supplementary announcement covers full-year results for the years ended December 31, 2023, and December 31, 2024[3](index=3&type=chunk) - The liquidators intend to provide additional information to shareholders and potential investors regarding the deconsolidation matter[4](index=4&type=chunk) [Deconsolidation Event](index=1&type=section&id=Deconsolidation%20Event) This section details the events leading to the Group's loss of control over certain subsidiaries and joint ventures, resulting in their deconsolidation [Background and Precursors of the Event](index=1&type=section&id=Background%20and%20Precursors%20of%20the%20Event) Following board changes, the former controlling shareholder unilaterally restricted the Group's control over certain subsidiaries and joint ventures (collectively, the "Deconsolidated Group"), leading to an irreversible loss of control - The former controlling shareholder (Mr. Zhou Zheng) restricted the management of the Deconsolidated Group from contacting Group employees and interfered with its business operations around late November 2023[4](index=4&type=chunk) [Board Changes](index=2&type=section&id=Board%20Changes) On November 24, 2023, an EGM resolution removed Ms. Zhou Jin and Mr. Yang Lei as executive directors and appointed Mr. Lam Chi Ying as a non-executive director, triggering uncooperative actions from the former controlling shareholder - On November 3, 2023, the company received a letter requesting an EGM to remove Ms. Zhou Jin (sister of the former controlling shareholder) and Mr. Yang Lei as executive directors and appoint Mr. Lam Chi Ying as a non-executive director[5](index=5&type=chunk) - On November 24, 2023, all resolutions related to the changes in board composition were duly passed by shareholders[5](index=5&type=chunk) [Former Controlling Shareholder's Uncooperative Actions and Impact](index=2&type=section&id=Former%20Controlling%20Shareholder%27s%20Uncooperative%20Actions%20and%20Impact) Following board changes, the former controlling shareholder unilaterally severed the Group's control over the Deconsolidated Group, preventing control re-establishment and access to records, leading to an irreversible loss of control - After the board changes, the former controlling shareholder's unilateral actions severed the Group's control over the Deconsolidated Group[6](index=6&type=chunk) - The Group ultimately and irreversibly lost control over the Deconsolidated Group and could not obtain its books and records[6](index=6&type=chunk) [Composition of the Deconsolidated Group](index=2&type=section&id=Composition%20of%20the%20Deconsolidated%20Group) The Deconsolidated Group comprises eight subsidiaries primarily engaged in property development, investment management, leasing, commercial services, and entertainment - The Deconsolidated Group consists of **eight** subsidiaries[7](index=7&type=chunk) - Its principal businesses include property development, investment management, leasing and commercial services, and entertainment and property development[7](index=7&type=chunk) [Confirmation of Deconsolidation](index=2&type=section&id=Confirmation%20of%20Deconsolidation) Due to the Group's loss of control over the Deconsolidated Group, the company confirmed deconsolidation in late July 2025, in accordance with HKFRS 10 - Around late July 2025, the company confirmed its determination to deconsolidate in accordance with HKFRS 10[6](index=6&type=chunk) [Resumption and Suspension Status](index=2&type=section&id=Resumption%20and%20Suspension%20Status) This section outlines the additional guidance received from the Stock Exchange for share resumption and confirms the ongoing suspension of trading [Additional Resumption Guidance](index=2&type=section&id=Additional%20Resumption%20Guidance) The Stock Exchange issued additional resumption guidance on August 19, 2025, requiring an independent internal control review and proof of adequate and effective internal controls to fulfill Listing Rules obligations - The Stock Exchange issued additional resumption guidance on August 19, 2025, requiring the company to conduct an independent internal control review[8](index=8&type=chunk) - The company must demonstrate that it has established adequate and effective internal controls and procedures to fulfill its obligations under the Listing Rules[8](index=8&type=chunk) - The company has engaged a professional consulting firm as an independent internal control adviser, and the review results will be announced in due course[9](index=9&type=chunk) [Continued Suspension of Trading in Shares](index=3&type=section&id=Continued%20Suspension%20of%20Trading%20in%20Shares) The company's shares have been suspended from trading since 11:56 a.m. on March 11, 2024, and will remain suspended until further notice - Trading in the company's shares on the Stock Exchange has been suspended since **11:56 a.m. on March 11, 2024**[10](index=10&type=chunk) - The shares will remain suspended from trading and will continue to be suspended until further notice[10](index=10&type=chunk) [Corporate Governance and Investor Alert](index=3&type=section&id=Corporate%20Governance%20and%20Investor%20Alert) This section clarifies the responsibilities of the liquidators following the board's cessation of powers and provides cautionary advice to investors [Responsibilities of the Board and Liquidators](index=3&type=section&id=Responsibilities%20of%20the%20Board%20and%20Liquidators) The powers of the company's board members ceased upon the winding-up order on March 11, 2024, with company affairs, business, and property now managed by joint and several liquidators Mr. Ma Tak Man and Mr. Wong Kwok Keung - All directors' powers ceased upon the High Court's winding-up order for the company on **March 11, 2024**[12](index=12&type=chunk) - The company's affairs, business, and property are managed by joint and several liquidators Mr. Ma Tak Man and Mr. Wong Kwok Keung[12](index=12&type=chunk) [Investor Attention](index=3&type=section&id=Investor%20Attention) The company will issue further announcements to keep the public informed and advises shareholders and potential investors to exercise caution when dealing in its shares - The company will issue further announcements as appropriate and timely to keep the public informed[11](index=11&type=chunk) - Shareholders and potential investors of the company are urged to exercise caution when dealing in the company's shares[12](index=12&type=chunk)

[Report Overview and Company Information](index=1&type=section&id=I.%20Report%20Overview%20and%20Company%20Information) This section provides an overview of the report, company details, accounting policies, and operating segment information [Report Declaration and GEM Characteristics](index=1&type=section&id=1.1%20Report%20Declaration%20and%20GEM%20Characteristics) Unaudited H1 2025 interim results released, highlighting GEM market features and directors' full responsibility for accuracy - The company released its unaudited condensed consolidated interim results for the six months ended June 30, 2025[3](index=3&type=chunk) - The GEM market is positioned for small and medium-sized companies with high investment risks, requiring investors to understand potential risks[4](index=4&type=chunk) - The company's directors jointly and individually bear full responsibility for the accuracy, completeness, and non-misleading nature of the information contained in this announcement[4](index=4&type=chunk) [Company Basic Information](index=6&type=section&id=1.2%20Company%20Basic%20Information) The company provides testing and inspection services in China, established in 2000, listed on GEM in September 2024, and controlled by a state-owned entity - The company primarily engages in testing and inspection services for construction engineering, building materials, food, and agricultural products in China[8](index=8&type=chunk) - The company was established on March 28, 2000, completed its shareholding reform in 2023, and was listed on GEM on September 6, 2024[8](index=8&type=chunk)[29](index=29&type=chunk) - The company's direct controlling entity is Xinyi Construction Engineering Quality and Safety Affairs Center, a state-owned enterprise[8](index=8&type=chunk) [Basis of Preparation and Accounting Policies](index=6&type=section&id=1.3%20Basis%20of%20Preparation%20and%20Accounting%20Policies) Interim condensed consolidated financial information is prepared under HKAS 34, consistent with annual statements, with no impact from HKAS 21 (Revised) - The interim condensed consolidated financial information has been prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting'[9](index=9&type=chunk) - The adoption of HKAS 21 (Revised) 'The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability' had no impact on the interim condensed consolidated financial information[10](index=10&type=chunk)[12](index=12&type=chunk) [Operating Segment Information](index=7&type=section&id=1.4%20Operating%20Segment%20Information) The Group's operating activities are managed as a single segment, with all business activities, revenue, and non-current assets located in Mainland China - The Group's operations are managed as a single operating segment, and therefore no segment information is presented[13](index=13&type=chunk) - All of the Group's revenue and non-current assets are derived from and located in Mainland China[14](index=14&type=chunk)[15](index=15&type=chunk) [Financial Performance Summary](index=3&type=section&id=II.%20Financial%20Performance%20Summary) This section summarizes the Group's financial performance, including profit or loss, comprehensive income, and financial position [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=2.1%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For H1 2025, revenue grew 9.32% to RMB 24.96 million, but profit and total comprehensive income significantly decreased by 74.29% to RMB 1.89 million due to increased costs, with basic and diluted EPS falling to RMB 0.04 Summary of Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 24,958 | 22,830 | 9.32% | | Cost of sales | (12,120) | (6,658) | 82.04% | | Gross profit | 12,838 | 16,172 | (20.61%) | | Other income | 362 | 109 | 232.11% | | Administrative expenses | (6,877) | (5,485) | 25.38% | | Research and development expenses | (616) | (280) | 120.00% | | Net impairment losses on financial assets at amortised cost | (1,638) | (127) | 1189.76% | | Profit before tax | 3,279 | 9,817 | (66.59%) | | Income tax expense | (1,391) | (2,474) | (43.86%) | | Profit and total comprehensive income for the period | 1,888 | 7,343 | (74.29%) | | Basic and diluted earnings per share attributable to owners of the parent | RMB 0.04 | RMB 0.31 | (87.10%) | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=2.2%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total net assets increased by 3.20% to RMB 184.51 million, with increases in non-current and current assets, significant growth in trade receivables, and a 52.71% rise in current liabilities Summary of Condensed Consolidated Statement of Financial Position (As of June 30) | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total non-current assets | 76,644 | 67,523 | 13.51% | | Total current assets | 173,171 | 167,522 | 3.37% | | Total current liabilities | 27,355 | 17,914 | 52.71% | | Net current assets | 145,816 | 149,608 | (2.53%) | | Total assets less current liabilities | 222,460 | 217,131 | 2.45% | | Total non-current liabilities | 37,949 | 38,342 | (1.03%) | | Net assets | 184,511 | 178,789 | 3.20% | [Business Overview and Market Analysis](index=13&type=section&id=III.%20Business%20Overview%20and%20Market%20Analysis) This section introduces the Group's business, reviews market trends, and analyzes its core competitiveness [Business Introduction](index=13&type=section&id=3.1%20Business%20Introduction) The Group, a testing and inspection service provider in Maoming, Guangdong, listed on GEM in September 2024, offers comprehensive construction engineering, water conservancy, food, and agricultural testing services, holding qualifications for 42 service categories covering over 3,446 parameters - The Group, a testing and inspection service provider in Maoming, Guangdong, China, was listed on GEM on September 6, 2024[29](index=29&type=chunk) - It provides comprehensive construction engineering testing and inspection services, including foundation, infrastructure, building materials, slope and foundation pit monitoring, water conservancy projects, and food and agricultural-related testing[29](index=29&type=chunk) - The Group has obtained qualifications for **42 service categories**, covering over **3,446 parameters**[29](index=29&type=chunk) [Market Review and Industry Trends](index=13&type=section&id=3.2%20Market%20Review%20and%20Industry%20Trends) National and provincial policies drive the growth of the independent testing market in Western Guangdong, projected to reach RMB 6.5 billion by 2028, creating opportunities in water conservancy and transportation infrastructure, but also intensifying competition and demanding business diversification into new testing areas - National policies support the development of the testing and inspection industry, with the independent testing market in Western Guangdong projected to reach **RMB 6.5 billion** by 2028, at a CAGR of **12.7%**[30](index=30&type=chunk)[31](index=31&type=chunk) - With over **100 construction engineering testing institutions** in Western Guangdong, market competition is intense, requiring the Group to adjust its operating strategies[32](index=32&type=chunk) - The testing and inspection industry shows a trend towards business diversification, requiring the Group to actively expand into new testing projects and areas such as food, transportation, water conservancy, and fire safety[33](index=33&type=chunk) [Core Competitiveness Analysis](index=15&type=section&id=3.3%20Core%20Competitiveness%20Analysis) The Group's core competitiveness stems from its brand and credibility as the first state-owned enterprise listed in Western Guangdong, supported by an experienced team, continuous R&D in smart systems and labs, multiple patents, a broad customer base, and diversified services including food, agricultural, and environmental testing - As the first listed company in Xinyi City and the first state-owned enterprise listed in Western Guangdong, the Group enjoys high brand recognition and credibility[34](index=34&type=chunk) - It possesses an experienced management team and professional talent, including **12 senior engineers**, and has obtained multiple professional qualification certificates[35](index=35&type=chunk) - Continuous technological R&D has led to the successful development of the Xince Testing Information Smart Management System V2.0 and the nation's first unattended smart construction laboratory, securing multiple patents and copyrights[36](index=36&type=chunk) - Implementing a diversified service strategy, the Group launched food and agricultural product testing services in May 2024, focusing on air environmental testing, and holds qualifications for **42 categories** with over **3,446 testing parameters**[38](index=38&type=chunk) [Business Review and Development](index=17&type=section&id=IV.%20Business%20Review%20and%20Development) This section details the Group's main business activities, including new service introductions and updates to its qualifications [Main Business Introduction](index=17&type=section&id=4.1%20Main%20Business%20Introduction) The Group provides comprehensive, high-quality testing and inspection services, expanding into water conservancy engineering, alongside construction engineering and food testing, serving diverse clients with qualifications in 42 service categories, demonstrating strong professionalism and market competitiveness - The Group's main business now includes water conservancy engineering testing services, covering construction engineering testing, construction engineering inspection, water conservancy engineering testing and inspection, and food testing services[39](index=39&type=chunk) - With qualifications in **42 different categories** of construction engineering testing and inspection services, the Group meets the diverse needs of various client groups[39](index=39&type=chunk) [Construction Engineering Testing Services](index=18&type=section&id=4.1.1%20Construction%20Engineering%20Testing%20Services) Construction engineering testing services provide comprehensive, professional assessments for project quality and safety, covering foundations, infrastructure, materials, structures, and environmental factors, including precise air quality monitoring for pollutants like formaldehyde, benzene, and TVOC - Construction engineering testing services cover foundation, infrastructure and public roads, engineering materials, building structures, and product and material testing[40](index=40&type=chunk) - Environmental testing focuses on indoor air quality, accurately monitoring pollutants such as formaldehyde, benzene, and TVOC[40](index=40&type=chunk) [Construction Engineering Inspection Services](index=19&type=section&id=4.1.2%20Construction%20Engineering%20Inspection%20Services) Construction engineering inspection services primarily involve slope and foundation pit monitoring, assessing safety, changes, and trends through regular patrols and data analysis to identify risks, enable timely intervention, minimize hazards, and ensure structural integrity for project safety - Construction engineering inspection services primarily provide slope and foundation pit monitoring, assessing safety conditions through measurements and inspections[41](index=41&type=chunk) - Monitoring services help identify potential risks early, enabling intervention measures to ensure the structural integrity of slopes and foundation pits[41](index=41&type=chunk) [Water Conservancy Engineering Testing and Inspection Services](index=19&type=section&id=4.1.3%20Water%20Conservancy%20Engineering%20Testing%20and%20Inspection%20Services) On April 16, 2025, the Group acquired a 51% stake in Maoming Yueshui Engineering Testing Co., Ltd. for RMB 9.33 million, expanding into water conservancy engineering testing services, which cover raw materials and intermediate products to ensure structural safety and operational efficiency of critical facilities - On April 16, 2025, the Group subscribed for a **51% equity interest** in Yueshui Engineering Testing for **RMB 9.33 million**, expanding into water conservancy engineering testing and inspection services[42](index=42&type=chunk) - Water conservancy engineering testing and inspection services cover raw materials, intermediate products, and material testing, aiming to ensure the structural safety and functional stability of water conservancy projects[42](index=42&type=chunk)[43](index=43&type=chunk) [Food and Agricultural Product Testing Business](index=20&type=section&id=4.1.4%20Food%20and%20Agricultural%20Product%20Testing%20Business) The food and agricultural product testing department, operational since May 2024, provides comprehensive food safety and quality testing, covering physical, chemical, additive, and contaminant analyses using quantitative and rapid methods, and is entrusted by Chinese government administrative departments for municipal and county-level food safety sampling tasks - The food and agricultural product testing department officially commenced operations in May 2024, providing food safety and quality testing services[44](index=44&type=chunk) - Services include testing for physical and chemical properties, additives, veterinary drug residues, harmful substances, elements, and toxins, utilizing both quantitative and rapid testing methods[44](index=44&type=chunk) - Entrusted by Chinese government administrative departments, the Group undertakes municipal and county-level food safety sampling tasks[44](index=44&type=chunk) [Business Development and Qualification Updates](index=21&type=section&id=4.2%20Business%20Development%20and%20Qualification%20Updates) The Group is expanding new business areas and updating qualifications, with food and agricultural product testing contributing revenue since May 2024 and water conservancy engineering testing expanded via acquisition; it now holds 42 construction engineering testing qualifications and a new certificate in July 2025 covering seven specialized areas, enhancing its professional and market competitiveness - The Group has obtained testing qualifications in **three areas**, covering **42 categories** of construction engineering testing and inspection services with over **3,446 parameters**, and the single pile vertical compressive static load testing tonnage for foundation testing services has been increased to **35,000 kN**[45](index=45&type=chunk) - The food and agricultural product testing department officially commenced operations in May 2024, generating approximately **RMB 5.40 million** in revenue as of June 30, 2025, and has obtained testing qualifications for **851 parameters**[46](index=46&type=chunk) - On April 16, 2025, the Group entered into a capital increase agreement to subscribe for a **51% equity interest** in Yueshui Engineering Testing, entering the water conservancy engineering testing service industry[47](index=47&type=chunk) - On July 22, 2025, the Company obtained the 'Construction Engineering Quality Testing Institution Qualification Certificate' issued by the Department of Housing and Urban-Rural Development of Guangdong Province, covering **seven specialized qualifications**: building materials and components, main structure and decoration, steel structure, foundation, building energy efficiency, municipal engineering materials, and road engineering[49](index=49&type=chunk) [Detailed Financial Performance Analysis](index=23&type=section&id=V.%20Detailed%20Financial%20Performance%20Analysis) This section provides an in-depth analysis of the Group's revenue, costs, other income and expenses, net profit, EPS, and key balance sheet changes [Revenue Analysis](index=23&type=section&id=5.1%20Revenue%20Analysis) For H1 2025, total revenue grew 9.32% to RMB 24.96 million, driven by an 83.42% increase in food and agricultural product testing and new water conservancy engineering services, while construction engineering testing revenue declined by 10.98%, reflecting business diversification Revenue Breakdown by Service Category (For the six months ended June 30) | Service Category | 2025 (RMB thousands) | 2024 (RMB thousands) | Year-on-year Change (%) | Proportion (2025) | | :--- | :--- | :--- | :--- | :--- | | Construction engineering testing services | 16,682 | 18,739 | (10.98%) | 66.8% | | Construction engineering inspection services | 1,228 | 1,292 | (4.95%) | 4.9% | | Food and agricultural testing services | 5,134 | 2,799 | 83.42% | 20.6% | | Water conservancy engineering testing services | 1,798 | — | New | 7.2% | | Other businesses | 116 | — | New | 0.5% | | **Total** | **24,958** | **22,830** | **9.32%** | **100.0%** | [Cost of Sales and Gross Profit](index=24&type=section&id=5.2%20Cost%20of%20Sales%20and%20Gross%20Profit) For H1 2025, cost of sales surged by 82.04% to RMB 12.12 million due to increased depreciation and engineer salaries, leading to a drop in overall gross profit margin from 70.8% to 51.4%, despite high margins in water conservancy engineering testing - Cost of sales increased by **82.04%** year-on-year to **RMB 12.12 million**, primarily due to increased depreciation expenses and higher salaries resulting from an increase in the number of engineers[52](index=52&type=chunk) Gross Profit and Gross Profit Margin by Service Category (For the six months ended June 30) | Service Category | 2025 Gross Profit (RMB thousands) | 2025 Gross Profit Margin (%) | 2024 Gross Profit (RMB thousands) | 2024 Gross Profit Margin (%) | Gross Profit Change (%) | Gross Profit Margin Change (percentage points) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Construction engineering testing services | 9,551 | 57.3 | 13,982 | 74.6 | (31.7%) | (17.3) | | Foundation testing services | 7,587 | 78.2 | 12,513 | 88.7 | (39.4%) | (10.5) | | Building materials testing services | (197) | (7.8) | 492 | 20.4 | (140.0%) | (28.2) | | Building structure testing services | 503 | 36.2 | 469 | 57.9 | 7.2% | (21.7) | | Infrastructure and public road testing services | 1,658 | 54.0 | 508 | 36.1 | 226.4% | 17.9 | | Construction engineering inspection services | (6) | (0.5) | 476 | 36.8 | (101.3%) | (37.3) | | Food and agricultural testing services | 1,691 | 32.9 | 1,714 | 61.2 | (1.3%) | (28.3) | | Water conservancy engineering testing services | 1,507 | 83.8 | — | — | — | 83.8 | | Other businesses | 95 | 81.9 | — | — | — | 81.9 | | **Total** | **12,838** | **51.4** | **16,172** | **70.8** | **(20.6%)** | **(19.4)** | - Overall gross profit margin decreased by **19.4 percentage points** to **51.4%**, primarily attributable to increased employee remuneration and depreciation expenses[55](index=55&type=chunk) [Other Income and Expenses](index=26&type=section&id=5.3%20Other%20Income%20and%20Expenses) For H1 2025, other income surged by 232.11% to RMB 0.36 million due to increased interest from cash, while administrative expenses rose by 25.38% to RMB 6.88 million (27.55% of total revenue) due to higher depreciation and professional fees; net impairment losses on financial assets increased to RMB 1.64 million due to trade receivables, and finance costs rose to RMB 0.75 million from lease liability interest - Other income increased to **RMB 0.36 million**, primarily from interest income due to increased cash and cash equivalents after listing[56](index=56&type=chunk) - Administrative expenses increased to **RMB 6.88 million**, representing **27.55%** of total revenue, mainly due to increased depreciation, amortization, and professional fees[57](index=57&type=chunk) - Net impairment losses on financial assets at amortised cost increased to **RMB 1.64 million**, primarily due to an increase in trade receivables[58](index=58&type=chunk) - Finance costs increased to **RMB 0.75 million**, mainly due to increased interest expenses on lease liabilities[59](index=59&type=chunk) [Income Tax and Net Profit](index=27&type=section&id=5.4%20Income%20Tax%20and%20Net%20Profit) For H1 2025, income tax expense decreased by 43.86% to RMB 1.39 million due to lower profit before tax from increased costs, resulting in a 74.29% decline in profit and total comprehensive income to RMB 1.89 million - Income tax provision decreased to **RMB 1.39 million**, primarily due to a reduction in total profit caused by increased costs and expenses[60](index=60&type=chunk) - Profit and total comprehensive income for the period decreased by **74.29%** year-on-year to **RMB 1.89 million**[61](index=61&type=chunk) [Earnings Per Share and Dividends](index=10&type=section&id=5.5%20Earnings%20Per%20Share%20and%20Dividends) For H1 2025, basic and diluted earnings per share attributable to owners of the parent significantly decreased to RMB 0.04 from RMB 0.31, and the Board decided not to recommend any interim dividend - Basic and diluted earnings per share attributable to owners of the parent were **RMB 0.04** (2024: **RMB 0.31**)[25](index=25&type=chunk)[61](index=61&type=chunk) - The Board has decided not to recommend the payment of any interim dividend (2024: nil)[63](index=63&type=chunk) [Key Balance Sheet Item Changes](index=27&type=section&id=5.6%20Key%20Balance%20Sheet%20Item%20Changes) As of June 30, 2025, key balance sheet items changed, with increases in property, plant, equipment, inventories, deferred tax assets, cash, and trade payables reflecting business expansion and subcontracting; trade receivables significantly grew with extended turnover days due to slower client payments, while right-of-use assets, prepayments, other receivables, and fixed deposits decreased [Property, Plant and Equipment](index=27&type=section&id=5.6.1%20Property,%20Plant%20and%20Equipment) As of June 30, 2025, property, plant, and equipment increased to RMB 29.76 million (December 31, 2024: RMB 24.38 million), primarily due to the acquisition of additional machinery for business expansion - Property, plant and equipment increased to **RMB 29.76 million** (December 31, 2024: **RMB 24.38 million**), primarily due to the acquisition of additional machinery and equipment for business expansion[62](index=62&type=chunk) [Right-of-Use Assets](index=27&type=section&id=5.6.2%20Right-of-Use%20Assets) As of June 30, 2025, right-of-use assets decreased to RMB 38.11 million (December 31, 2024: RMB 38.66 million), mainly due to depreciation of existing assets by RMB 1.0 million, partially offset by new assets from newly established and acquired subsidiaries of RMB 0.45 million - Right-of-use assets decreased to **RMB 38.11 million** (December 31, 2024: **RMB 38.66 million**), primarily due to depreciation of existing assets and new assets from newly acquired subsidiaries[64](index=64&type=chunk) [Deferred Tax Assets](index=27&type=section&id=5.6.3%20Deferred%20Tax%20Assets) As of June 30, 2025, deferred tax assets increased to RMB 3.78 million (December 31, 2024: RMB 2.30 million), mainly due to increased bad debt provisions and a reduction in one-off listing incentive receivables - Deferred tax assets increased to **RMB 3.78 million** (December 31, 2024: **RMB 2.30 million**), primarily due to increased bad debt provisions and a reduction in listing incentive receivables[65](index=65&type=chunk) [Inventories](index=28&type=section&id=5.6.4%20Inventories) As of June 30, 2025, inventories increased to RMB 4.08 million (December 31, 2024: RMB 2.98 million), primarily due to assets related to recognized contract costs for testing services, with performance costs increasing by RMB 1.1 million - Inventories increased to **RMB 4.08 million** (December 31, 2024: **RMB 2.98 million**), primarily due to an increase in assets related to contract costs for testing services[66](index=66&type=chunk) [Trade Receivables](index=28&type=section&id=5.6.5%20Trade%20Receivables) As of June 30, 2025, trade receivables increased to RMB 65.64 million (December 31, 2024: RMB 48.64 million), with turnover days rising from 257 to 414, primarily due to slower client payments in the first half of 2025 - Trade receivables increased to **RMB 65.64 million** (December 31, 2024: **RMB 48.64 million**)[67](index=67&type=chunk) - Trade receivables turnover days increased from **257 days** to **414 days**, primarily due to slower client payment progress[67](index=67&type=chunk) [Prepayments and Other Receivables](index=28&type=section&id=5.6.6%20Prepayments%20and%20Other%20Receivables) As of June 30, 2025, prepayments and other receivables decreased to RMB 5.28 million (December 31, 2024: RMB 7.73 million), primarily because the RMB 3.0 million one-off listing incentive receivable recognized at the end of 2024 was fully received in January 2025 - Prepayments and other receivables decreased to **RMB 5.28 million** (December 31, 2024: **RMB 7.73 million**), primarily due to the recovery of listing incentive receivables[68](index=68&type=chunk) [Fixed Deposits](index=28&type=section&id=5.6.7%20Fixed%20Deposits) As of June 30, 2025, fixed deposits were zero (December 31, 2024: RMB 10 million), primarily because the 6-month fixed deposit purchased by the Group in December 2024 had matured and been redeemed - Fixed deposits decreased to **zero** (December 31, 2024: **RMB 10 million**), primarily due to the maturity and redemption of a 6-month fixed deposit purchased in December 2024[69](index=69&type=chunk) [Cash and Cash Equivalents](index=28&type=section&id=5.6.8%20Cash%20and%20Cash%20Equivalents) As of June 30, 2025, cash and cash equivalents increased to RMB 100.57 million (December 31, 2024: RMB 99.86 million), primarily due to normal cash inflows exceeding outflows - Cash and cash equivalents increased to **RMB 100.57 million** (December 31, 2024: **RMB 99.86 million**), primarily due to normal cash inflows exceeding outflows[70](index=70&type=chunk) [Trade Payables](index=28&type=section&id=5.6.9%20Trade%20Payables) As of June 30, 2025, trade payables increased to RMB 5.71 million (December 31, 2024: RMB 4.83 million) due to increased subcontracting, with turnover days rising from 49 to 79, primarily due to extended settlement periods for service purchases - Trade payables increased to **RMB 5.71 million** (December 31, 2024: **RMB 4.83 million**), primarily due to increased subcontracting[71](index=71&type=chunk) - Trade payables turnover days increased from **49 days** to **79 days**, primarily due to extended settlement periods for purchased services[72](index=72&type=chunk) [Financial Management and Capital Operations](index=29&type=section&id=VI.%20Financial%20Management%20and%20Capital%20Operations) This section covers the Group's liquidity, financial resources, capital structure, treasury policies, risk management, significant investments, and use of listing proceeds [Liquidity, Financial Resources and Capital Structure](index=29&type=section&id=6.1%20Liquidity,%20Financial%20Resources%20and%20Capital%20Structure) The Group maintains a robust financial position with a liquidity ratio of 6.33 (December 31, 2024: 9.35) and a net cash position; the gearing ratio is not applicable due to a net surplus of RMB 77.35 million as of June 30, 2025, with net proceeds from listing of approximately HKD 54.4 million and total cash and cash equivalents of RMB 100.57 million - The Group's current ratio is **6.33** (December 31, 2024: **9.35**), maintaining a net cash position[73](index=73&type=chunk) - The gearing ratio is not applicable as the Group had a net surplus of **RMB 77.35 million** as of June 30, 2025[73](index=73&type=chunk) - The listing successfully raised net proceeds of approximately **HKD 54.4 million**[73](index=73&type=chunk) [Treasury Policy and Risk Management](index=29&type=section&id=6.2%20Treasury%20Policy%20and%20Risk%20Management) The Group adopts a prudent treasury policy, mitigating credit risk through continuous assessment and monitoring liquidity; it faces foreign exchange translation risk for RMB against HKD and USD without hedging, has no significant contingent liabilities, asset pledges, or interest-bearing debts, and has capital commitments of RMB 2.85 million primarily for property and machinery acquisition - The Group adopts a prudent treasury policy, reducing credit risk through continuous credit assessment and monitoring its liquidity position[74](index=74&type=chunk) - It faces foreign exchange translation risk for RMB against HKD and USD, but currently has no foreign currency hedging policy[75](index=75&type=chunk)[79](index=79&type=chunk) - There are no significant contingent liabilities, asset pledges, or interest-bearing debts, and interest rate risk is not material[77](index=77&type=chunk)[78](index=78&type=chunk)[80](index=80&type=chunk) - Capital commitments amount to **RMB 2.85 million**, primarily for the acquisition of buildings and machinery and equipment[76](index=76&type=chunk) [Significant Investments and Mergers & Acquisitions](index=30&type=section&id=6.3%20Significant%20Investments%20and%20Mergers%20%26%20Acquisitions) For H1 2025, the Group had no significant investments, but on April 16, 2025, it agreed to subscribe for a 51% equity interest in Yueshui Engineering Testing for RMB 9.33 million through a capital increase agreement - For the six months ended June 30, 2025, the Group had no significant investments[81](index=81&type=chunk) - On April 16, 2025, the Group subscribed for a **51% equity interest** in Yueshui Engineering Testing for **RMB 9,330,000**[82](index=82&type=chunk) [Use of Listing Proceeds](index=32&type=section&id=6.4%20Use%20of%20Listing%20Proceeds) The Group's net listing proceeds of approximately HKD 54.4 million are planned for use from September 2024 to December 2026; as of June 30, 2025, most proceeds remain unutilized, with funds for diversified testing services not used as planned, prompting a Board review and separate announcement, while unutilized funds are held as interest-bearing deposits at Bank of China - Net proceeds from the listing of approximately **HKD 54.4 million** are planned for use from September 2024 to December 2026[87](index=87&type=chunk) Planned and Actual Use of Net Listing Proceeds (As of June 30, 2025) | Business Objective | Planned Use as per Prospectus (HKD thousands) | Net Unutilized Proceeds as of June 30, 2025 (HKD thousands) | | :--- | :--- | :--- | | Expansion of construction engineering testing services | 14,950.3 | 13,280.4 | | Consolidate Maoming market position and expand to third- to fifth-tier cities in Western Guangdong | 15,102.3 | 15,102.3 | | Diversification of testing and inspection services (food and agriculture, transportation, fire safety, etc.) | 20,327.9 | (19,838.2) | | Upgrade ERP system | 3,000.4 | 3,000.4 | | General working capital | 1,019.6 | 513.1 | | **Total** | **54,400.5** | **51,734.4** | - Funds for diversified testing and inspection services were not used as planned, and the Board stated it would review and issue a separate announcement[87](index=87&type=chunk) - The unutilized net proceeds have been placed as interest-bearing deposits with Bank of China[89](index=89&type=chunk) [Prospects and Risks](index=33&type=section&id=VII.%20Prospects%20and%20Risks) This section outlines the Group's market outlook, potential risks, and strategic business objectives [Market Outlook](index=33&type=section&id=7.1%20Market%20Outlook) New policies will drive growth in transportation and water conservancy testing markets; the Group will seize these opportunities, focusing on food, agricultural products, transportation, water conservancy, and fire safety testing for diversified development and enhanced competitiveness - Policies such as the 'Highway and Waterway Engineering Quality Testing Management Measures' and 'Water Conservancy Central Budget Investment Special Management Measures' will bring new growth points to the transportation and water conservancy testing markets[90](index=90&type=chunk) - The Group will focus on food and agricultural products, transportation engineering, water conservancy engineering, and fire safety testing to achieve diversified development[90](index=90&type=chunk) [Potential Risks](index=33&type=section&id=7.2%20Potential%20Risks) The Group faces three main risks: the impact of China's real estate slowdown (34.25% of H1 2025 revenue from property developers), high operational concentration in Maoming, Guangdong, and complex M&A decision-making and integration risks; the Group has established response departments, optimized strategies, expanded markets, and conducts due diligence to manage M&A risks - Business may be affected by the slowdown in China's real estate development, with **34.25%** of H1 2025 revenue derived from property developers, and slowing property investment adversely impacting client businesses[91](index=91&type=chunk)[92](index=92&type=chunk) - The vast majority of business operations are concentrated in Maoming, Guangdong, and are affected by the region's economic conditions, government policies, or business environment developments[93](index=93&type=chunk) - Undertaking mergers and acquisitions involves decision-making and integration risks, which the Group will mitigate through due diligence, expert review, and post-investment management[94](index=94&type=chunk) [Business Objectives](index=35&type=section&id=7.3%20Business%20Objectives) The Group has three business objectives: expanding construction engineering testing services (now meeting seven specialized qualifications), strengthening its Maoming market position and expanding to third- to fifth-tier cities in Western Guangdong (entered Gaozhou and Huazhou), and diversifying testing and inspection services into food, agriculture, transportation, and fire safety (achieved transportation Class C assessment, agricultural product testing qualifications, and plans for a fire safety testing subsidiary in H2 2025) - Expand construction engineering testing services, now meeting **seven specialized qualification requirements**, including building materials and components, main structure and decoration, foundation, building energy efficiency, municipal engineering materials, road engineering, and steel structures[95](index=95&type=chunk)[96](index=96&type=chunk) - Strengthen Maoming's market position and expand service coverage to third- to fifth-tier cities in Western Guangdong, having successfully entered Gaozhou City and Huazhou City[97](index=97&type=chunk)[98](index=98&type=chunk) - Provide diversified testing and inspection services, expanding into food and agriculture, transportation, and fire safety, having passed the transportation Class C assessment, obtained qualifications for **851 agricultural product testing parameters**, and plans to establish a fire safety testing subsidiary in H2 2025[100](index=100&type=chunk)[101](index=101&type=chunk) [Other Information and Corporate Governance](index=31&type=section&id=VIII.%20Other%20Information%20and%20Corporate%20Governance) This section covers employee and remuneration policies, post-reporting period events, securities transactions, corporate governance compliance, and competing business interests [Employees and Remuneration Policy](index=31&type=section&id=8.1%20Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had 115 employees (June 30, 2024: 94), with total employee benefit expenses of approximately RMB 8.66 million (2024: RMB 6.76 million); remuneration is based on qualifications, experience, and performance, while discretionary bonuses depend on individual performance, Group financial results, and market conditions - As of June 30, 2025, the Group had **115 employees** (June 30, 2024: **94 employees**)[85](index=85&type=chunk) - Total employee benefit expenses were approximately **RMB 8.66 million** (2024: **RMB 6.76 million**)[85](index=85&type=chunk) - Remuneration is determined based on qualifications, experience, and performance, while discretionary bonuses depend on work performance, the Group's financial performance, and general market conditions[85](index=85&type=chunk) [Events After Reporting Period](index=31&type=section&id=8.2%20Events%20After%20Reporting%20Period) On August 5, 2025, the Group conditionally agreed to acquire 100% equity of Xinyi Rongli Motor Vehicle Testing Co., Ltd. for RMB 12.57 million; no other significant subsequent events occurred from June 30, 2025, to the announcement date - On August 5, 2025, the Group agreed to acquire a **100% equity interest** in Xinyi Rongli Motor Vehicle Testing Co., Ltd. for **RMB 12.57 million**[86](index=86&type=chunk) [Securities Transactions](index=39&type=section&id=8.3%20Securities%20Transactions) For the six months ended June 30, 2025, and up to the announcement date, the Company neither purchased, sold, nor redeemed any of its listed securities, nor held any treasury shares - For the six months ended June 30, 2025, and up to the date of this announcement, the Company neither purchased, sold, nor redeemed any of its listed securities, nor held any treasury shares[102](index=102&type=chunk) [Compliance with Corporate Governance Code](index=39&type=section&id=8.4%20Compliance%20with%20Corporate%20Governance%20Code) The Company complies with all provisions of the GEM Listing Rules' Corporate Governance Code, though the roles of Chairman and CEO are combined under Executive Director Mr. Lai Feng, an arrangement the Board believes enhances responsiveness, efficiency, and effectiveness in strategy and execution, while maintaining balanced power distribution - The Company has adopted and complied with all provisions of the Corporate Governance Code set out in Appendix C1 to the GEM Listing Rules[103](index=103&type=chunk) - The roles of Chairman and Chief Executive Officer are not segregated, both held by Executive Director Mr. Lai Feng, an arrangement the Board believes enhances responsiveness, efficiency, and effectiveness[103](index=103&type=chunk) [Review and Approval](index=40&type=section&id=8.5%20Review%20and%20Approval) Securities transactions by directors, supervisors, and senior management complied with the code of conduct; the Audit Committee reviewed the unaudited interim results for the six months ended June 30, 2025, confirming compliance with accounting standards and GEM Listing Rules, with adequate disclosure, and the financial figures in this announcement were agreed upon by the Group's auditor, Ernst & Young - Securities transactions by directors, supervisors, and senior management complied with the code of conduct, with no breaches[104](index=104&type=chunk) - The Audit Committee has reviewed these interim results, deeming them compliant with applicable accounting standards and GEM Listing Rules, with adequate disclosure[105](index=105&type=chunk) - The financial statement figures contained in this announcement have been agreed upon by the Group's auditor, Ernst & Young[105](index=105&type=chunk) [Competing Business Interests](index=40&type=section&id=8.6%20Competing%20Business%20Interests) As of June 30, 2025, and up to the announcement date, no directors, supervisors, controlling shareholders, or their associates (as defined by GEM Listing Rules) held interests in any business directly or indirectly competing or potentially competing with the Company's business - No directors, supervisors, controlling shareholders, or their associates held interests in any business directly or indirectly competing with the Company's business[106](index=106&type=chunk)

[Definitions](index=4&type=section&id=%E9%87%8B%E7%BE%A9) This section provides key vocabulary and their definitions used in the report, ensuring a clear understanding of professional terms, covering company products, stock types, and operational indicators[9](index=9&type=chunk)[10](index=10&type=chunk)[12](index=12&type=chunk)[13](index=13&type=chunk) [Company Information](index=7&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) [Board of Directors and Committees](index=7&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83%E5%8F%8A%E5%A7%94%E5%93%A1%E6%9C%83%E6%88%90%E5%93%A1) The company's Board of Directors comprises **11** directors, including executive, non-executive, and independent non-executive directors, with established committees for strategic, audit, remuneration, and nomination functions to enhance corporate governance - Board members include Mr. Wang Yapeng (Chairman) and Ms. Zhuang Hao (General Manager), among **11** directors[16](index=16&type=chunk) - The company has a Strategic Committee (Convener: Mr. Wang Yapeng), an Audit Committee (Convener: Dr. Zhang Guoqing), a Remuneration and Appraisal Committee (Convener: Ms. Wu Yongqian), and a Nomination Committee (Convener: Dr. Yang Chenhui)[17](index=17&type=chunk) [Principal Offices and Advisor Information](index=7&type=section&id=%E4%B8%BB%E8%A6%81%E8%BE%A6%E4%BA%8B%E8%99%95%E5%8F%8A%E9%A1%A7%E5%95%8F%E4%BF%A1%E6%81%AF) The company's head office and China headquarters are located in Xiamen, Fujian Province, with its principal place of business in Hong Kong situated on Gloucester Road, and Ernst & Young serves as its auditor, while Fosun International Capital Limited acts as its compliance advisor - Head office and China headquarters address: No. **9**, Putou Road, Phase II, Dongfu Industrial Zone, Haicang District, Xiamen City, Fujian Province, China[17](index=17&type=chunk) - Principal place of business in Hong Kong: Office **5**, **15**th Floor, BEA Harbour Centre, **56** Gloucester Road, Hong Kong SAR[17](index=17&type=chunk) - The auditor is Ernst & Young, and the compliance advisor is Fosun International Capital Limited[17](index=17&type=chunk)[18](index=18&type=chunk) [Financial Highlights](index=9&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) [Revenue by Business Segment](index=9&type=section&id=%E6%8C%89%E6%A5%AD%E5%8B%99%E5%88%86%E9%83%A8%E5%8A%83%E5%88%86%E7%9A%84%E6%94%B6%E5%85%A5) For the six months ended June **30**, **2025**, the company's total revenue increased by **31.79%** year-on-year to **RMB 3,233.53 million**, primarily driven by the cross-border social e-commerce business, which saw a significant increase in revenue contribution Revenue by Business Segment (RMB thousands) | | 2025 Revenue | 2025 Percentage | 2024 Revenue | 2024 Percentage | | :--- | :--- | :--- | :--- | :--- | | Cross-border Social E-commerce | 2,116,454 | 65.4% | 1,384,122 | 56.4% | | Paper-based Packaging | 1,115,164 | 34.5% | 1,013,388 | 41.3% | | Others | 1,908 | 0.1% | 55,954 | 2.3% | | **Total** | **3,233,526** | **100.0%** | **2,453,464** | **100.0%** | - The revenue contribution from cross-border social e-commerce business increased from **56.4%** in **2024** to **65.4%** in **2025**, becoming the primary revenue source[20](index=20&type=chunk) [Gross Profit and Gross Margin by Business Segment](index=9&type=section&id=%E6%8C%89%E6%A5%AD%E5%8B%99%E5%88%86%E9%83%A8%E5%8A%83%E5%88%86%E7%9A%84%E6%AF%9B%E5%88%A9%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87) During the reporting period, the company's total gross profit increased by **52.36%** year-on-year to **RMB 1,515.27 million**, with the overall gross margin rising to **46.9%**, primarily due to increased revenue contribution from the high-margin cross-border social e-commerce business Gross Profit and Gross Margin by Business Segment (RMB thousands) | | 2025 Gross Profit | 2025 Gross Margin | 2024 Gross Profit | 2024 Gross Margin | | :--- | :--- | :--- | :--- | :--- | | Cross-border Social E-commerce | 1,299,036 | 61.4% | 822,779 | 59.4% | | Paper-based Packaging | 215,199 | 19.3% | 166,594 | 16.4% | | Others | 1,037 | 54.4% | 5,171 | 9.2% | | **Total** | **1,515,272** | **46.9%** | **994,544** | **40.5%** | - The gross margin for cross-border social e-commerce business increased from **59.4%** to **61.4%**, and for paper-based packaging business, it rose from **16.4%** to **19.3%**[21](index=21&type=chunk) [Business Review](index=10&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) [Company Profile](index=10&type=section&id=%E5%85%AC%E5%8F%B8%E6%A6%82%E6%B3%81) Xiamen Jihong Technology Co, Ltd, established in **2003** and A-share listed in **2016**, completed its H-share listing on **May 27, 2025**, with its business encompassing cross-border social e-commerce and paper-based FMCG packaging, known for innovation and market leadership - The company was established in **2003**, listed on A-shares in **2016**, and on H-shares on **May 27, 2025**[22](index=22&type=chunk) - The company's businesses include cross-border social e-commerce and paper-based FMCG packaging, with the latter being one of its core businesses, offering one-stop products and services[23](index=23&type=chunk) [Cross-border Social E-commerce Business](index=10&type=section&id=%E8%B7%A8%E5%A2%83%E7%A4%BE%E4%BA%A4%E9%9B%BB%E5%95%86%E6%A5%AD%E5%8B%99) The company's cross-border social e-commerce business leverages dynamic data analysis capabilities to place targeted advertisements on social media platforms, promoting mainland Chinese goods to global overseas consumers for precise product selection and推送 - Business Model: Utilizing dynamic data analysis capabilities to place targeted advertisements on social media platforms, selling mainland Chinese goods to overseas consumers in Asia, Europe, and North America[24](index=24&type=chunk) [Paper-based FMCG Packaging Business](index=10&type=section&id=%E7%B4%99%E8%A3%BD%E5%BF%AB%E6%B6%88%E5%93%81%E5%8C%85%E8%A3%9D%E6%A5%AD%E5%8B%99) The company is one of the few in mainland China offering one-stop paper-based FMCG packaging products and services, centered on process design and technical planning, actively investing in eco-friendly packaging development, and maintaining long-term partnerships with leading FMCG enterprises - Core Capabilities: Providing one-stop paper-based packaging products and services covering the entire production process, with process design and technical planning at its core[25](index=25&type=chunk) - Environmental Commitment: Proactively investing in the development of eco-friendly packaging, responding to global trends in plastic use restrictions[25](index=25&type=chunk) [Management Discussion and Analysis](index=11&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) [Principal Businesses During the Reporting Period](index=11&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%85%A7%E5%85%AC%E5%8F%B8%E5%從%E4%BA%8B%E7%9A%84%E4%B8%BB%E8%A6%81%E6%A5%AD%E5%8B%99) The company, founded on technological innovation and digital intelligence empowerment, has established a dual-driven development model of cross-border social e-commerce and FMCG packaging solutions, successfully listing H-shares during the reporting period and achieving substantial growth in revenue and net profit - The company's H-shares were listed on the Main Board of the Hong Kong Stock Exchange on **May 27, 2025**, making it the first A+H listed cross-border social e-commerce and paper-based FMCG packaging enterprise in China[27](index=27&type=chunk) Key Financial Indicators for H1 2025 (RMB ten thousands) | Indicator | Amount (RMB ten thousands) | Y-o-Y Growth | | :--- | :--- | :--- | | Revenue | 323,352.64 | 31.79% | | Net Profit Attributable to Shareholders of Listed Company | 11,814.68 | 63.27% | | Net Profit Attributable to Shareholders of Listed Company After Non-recurring Gains and Losses | 11,327.59 | 79.43% | | Cross-border Social E-commerce Business Revenue | 211,645.43 | 52.91% | | Cross-border Social E-commerce Business Net Profit Attributable to Parent | 5,540.17 | 97.67% | | Packaging Business Revenue | 111,516.43 | 10.04% | | Packaging Business Net Profit Attributable to Parent | 7,565.86 | 34.43% | | Total Assets | 406,494.79 | 16.04% (vs. beginning of year) | | Owners' Equity Attributable to Shareholders of Listed Company | 264,023.11 | 19.90% (vs. beginning of year) | | Net Cash Flows from Operating Activities | 18,263.75 | 377.80% | [28](index=28&type=chunk)[29](index=29&type=chunk) [Cross-border Social E-commerce Business](index=12&type=section&id=%E8%B7%A8%E5%A2%83%E7%A4%BE%E4%BA%A4%E9%9B%BB%E5%95%86%E6%A5%AD%E5%8B%99) The company's cross-border social e-commerce business benefits from policy support and digital intelligence technology advantages, employing a proactive and precise customer acquisition model, continuously investing in R&D to build an efficient operating system, and driving product selection, content generation, precise advertising, and global customer service with AI - Policy Support: In the first half of **2025**, China's cross-border e-commerce policy system continued to improve, injecting momentum into the high-quality development of the industry[30](index=30&type=chunk) - Business Model: Through dynamic data analysis, precise product selection, and targeted advertising, mainland Chinese goods are sold to global overseas consumers, without operating its own platform[31](index=31&type=chunk) [Unique Business Model for Proactive and Precise Customer Acquisition](index=12&type=section&id=%E4%B8%BB%E5%8B%95%E7%B2%BE%E6%BA%96%E7%99%BC%E7%8F%BE%E7%9B%AE%E6%A8%99%E5%AE%A2%E6%88%B6%E7%9A%84%E7%8D%A8%E7%89%B9%E5%95%86%E6%A5%AD%E6%A8%A1%E5%BC%8F) - The company achieves precise product selection and push notifications through proprietary big data analysis and algorithm capabilities, placing advertisements on social media platforms to guide consumers to landing pages for purchase completion[31](index=31&type=chunk)[32](index=32&type=chunk) - Product categories are extensive, including home goods, apparel, electronics, footwear, bags, beauty and personal care, health products, maternal and infant products, watches, and accessories[31](index=31&type=chunk) [Continuous R&D Investment to Build an Efficient Operating System](index=13&type=section&id=%E6%8C%81%E7%BA%8C%E7%9A%84%E7%A0%94%E7%99%BC%E6%8A%95%E5%85%A5%EF%BC%8C%E6%A7%8B%E5%BB%BA%E9%AB%98%E6%95%88%E7%9A%84%E9%81%8B%E7%87%9F%E7%B3%BB%E7%B5%B1) - The company independently developed and continuously iterates the "Giikin" operation management system, utilizing AI applications to seamlessly connect all stages from product selection, advertising, procurement, transportation, and logistics[34](index=34&type=chunk) - The explosive development of AI large model technology in **2025** enhanced the company's "AI e-commerce" advantage, forging a core competitive moat of "data + intelligent algorithms"[35](index=35&type=chunk) [Intelligent Product Selection: Data-Driven Precise Decision-Making](index=13&type=section&id=%E6%99%BA%E8%83%BD%E9%81%B8%E5%93%81%EF%BC%9A%E6%95%B8%E6%93%9A%E9%A9%85%E5%8B%95%E7%9A%84%E7%B2%BE%E6%BA%96%E6%B1%BA%E7%AD%96) - Relying on the ChatGiiKin–**6B** e-commerce text vertical model, the company analyzes consumer preferences in different regional markets, formulating customized strategies for the product selection team to improve decision-making efficiency[35](index=35&type=chunk) [Content Generation: A Creative Engine Spanning Cultures and Languages](index=13&type=section&id=%E5%85%A7%E5%AE%B9%E7%94%A2%E7%94%9F%EF%BC%9A%E8%B7%A8%E8%B6%8A%E6%96%87%E5%8C%96%E8%88%87%E8%AA%9E%E8%A8%80%E7%9A%84%E5%89%B5%E6%84%8F%E5%BC%95%E6%93%8E) - Utilizing self-developed AI technology for efficient localization, the ChatGiiKin–**6B** model automatically generates multi-language product titles, keywords, and descriptions, and intelligently adapts advertising materials[35](index=35&type=chunk) [Precise Advertising: Intelligent Marketing Closed Loop](index=14&type=section&id=%E7%B2%BE%E6%BA%96%E6%8A%95%E6%94%BE%EF%BC%9A%E6%99%BA%E8%83%BD%E5%8C%96%E7%9A%84%E7%87%9F%E9%8A%B7%E9%96%89%E7%92%B0) - The Giikin system integrates the G–king advertising assistant, connecting with platforms like Meta, TikTok, and Google via API to analyze advertising data and recommend effective advertising strategies[36](index=36&type=chunk) [Global Operations: AI-Driven Customer Service and Expansion](index=14&type=section&id=%E5%85%A8%E7%90%83%E9%81%8B%E7%87%9F%EF%BC%9AAI%E9%A9%85%E5%8B%95%E7%9A%84%E5%AE%A2%E6%88%B6%E6%9C%8D%E5%8B%99%E8%88%87%E6%8B%93%E5%B1%95) - Leveraging AI robots to provide multi-language instant translation and intelligent responses, offering **7x24**-hour customer service to over **40** countries and regions globally, reducing operational costs and supporting business expansion[36](index=36&type=chunk) [Long-term Strategic Planning](index=14&type=section&id=%E9%95%B7%E6%9C%9F%E6%88%B0%E7%95%A5%E8%A6%8F%E5%8A%83) - The company will continue to increase investment in artificial intelligence, building a "data-centric" operating model to achieve full-chain digital and intelligent management, driving cost reduction, efficiency improvement, and user experience upgrades[37](index=37&type=chunk) - The company will strengthen brand building, incubating its own brands such as SENADA BIKES, Veimia, Konciwa, and PETTENA, to enhance market competitiveness and brand influence[37](index=37&type=chunk) [Paper-based FMCG Packaging Business](index=15&type=section&id=%E7%B4%99%E8%A3%BD%E5%BF%AB%E6%B6%88%E5%93%81%E5%8C%85%E8%A3%9D%E6%A5%AD%E5%8B%99) The company's paper-based packaging business aligns with industry trends towards automation, intelligence, and green practices, integrating environmental concepts throughout the production process, providing one-stop integrated services, and establishing long-term partnerships with leading domestic and international FMCG enterprises - Development Direction: Actively responding to national green economy and low-carbon transition policies, committed to developing eco-friendly materials and green packaging technologies, integrating ESG principles into product design and manufacturing[39](index=39&type=chunk) - Competitive Advantages: Operating **10** production facilities nationwide, holding multiple professional certifications, and establishing strategic partnerships with leading FMCG companies in various sub-sectors including food, catering, beverages, and daily necessities, both domestically and internationally[40](index=40&type=chunk) [Financial Review](index=16&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) This section provides a detailed review of financial performance during the reporting period, including revenue, cost, gross profit, various expenses, net profit, liquidity, and key financial ratios, indicating a significant improvement in the company's overall profitability - The company's net profit increased by **107.07%** from **RMB 65.99 million** in the first half of **2024** to **RMB 136.64 million** in the first half of **2025**[71](index=71&type=chunk) - Cash and bank balances increased from **RMB 711.06 million** at the end of **2024** to **RMB 1,275.83 million** as of June **30**, **2025**, primarily due to proceeds from the H-share issuance[72](index=72&type=chunk) [Revenue](index=16&type=section&id=%E6%94%B6%E5%85%A5) - For the six months ended June **30**, **2025**, revenue was **RMB 3,233.53 million**, a year-on-year increase of **31.79%**, primarily attributable to the growth in cross-border social e-commerce and paper-based packaging businesses[41](index=41&type=chunk) Revenue by Business Segment (RMB thousands) | Business Segment | 2025 Revenue | 2025 Percentage | 2024 Revenue | 2024 Percentage | | :--- | :--- | :--- | :--- | :--- | | Cross-border Social E-commerce | 2,116,454 | 65.4% | 1,384,122 | 56.4% | | Paper-based Packaging | 1,115,164 | 34.5% | 1,013,388 | 41.3% | | Others | 1,908 | 0.1% | 55,954 | 2.3% | | **Total** | **3,233,526** | **100.0%** | **2,453,464** | **100.0%** | [42](index=42&type=chunk) [Cost of Sales](index=17&type=section&id=%E9%8A%B7%E5%94%AE%E6%88%90%E6%9C%AC) - Cost of sales increased from **RMB 1,458.92 million** in the first half of **2024** to **RMB 1,718.25 million** in the first half of **2025**, primarily due to revenue growth[45](index=45&type=chunk) Cost of Sales by Nature (RMB thousands) | Cost of Sales | 2025 | 2025 Percentage | 2024 | 2024 Percentage | | :--- | :--- | :--- | :--- | :--- | | Raw Materials and Goods Cost | 906,163 | 52.7% | 842,007 | 57.7% | | Labor Cost | 219,954 | 12.8% | 182,966 | 12.5% | | Logistics Cost | 490,592 | 28.6% | 301,608 | 20.7% | | Others | 101,545 | 5.9% | 132,339 | 9.1% | | **Total** | **1,718,254** | **100.0%** | **1,458,920** | **100.0%** | [47](index=47&type=chunk) [Gross Profit and Gross Margin](index=18&type=section&id=%E6%AF%9B%E5%88%A9%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87) - Gross profit increased from **RMB 995 million** in the first half of **2024** to **RMB 1,515 million** in the first half of **2025**, with the gross margin improving from **40.5%** to **46.9%**[48](index=48&type=chunk) - The increase in gross margin is primarily attributable to the higher contribution from the cross-border social e-commerce business, which has a higher gross margin[48](index=48&type=chunk) [Other Income and Gains](index=18&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A) - Other income and gains decreased from **RMB 32.34 million** in the first half of **2024** to **RMB 23.57 million** in the first half of **2025**, mainly due to a reduction in government grants and interest income[50](index=50&type=chunk) [Selling and Marketing Expenses](index=19&type=section&id=%E9%8A%B7%E5%94%AE%E5%8F%8A%E7%87%9F%E9%8A%B7%E9%96%8B%E6%94%AF) - Selling and marketing expenses increased by **56.82%** from **RMB 745.33 million** in the first half of **2024** to **RMB 1,168.86 million** in the first half of **2025**[52](index=52&type=chunk) - The primary reason for this increase is the expansion of the cross-border social e-commerce business, leading to higher advertising expenses, which accounted for **95.9%** of selling and marketing expenses[52](index=52&type=chunk)[54](index=54&type=chunk) [Administrative Expenses](index=20&type=section&id=%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) - Administrative expenses increased by **8.52%** from **RMB 117.75 million** in the first half of **2024** to **RMB 127.79 million** in the first half of **2025**[57](index=57&type=chunk) - This increase is primarily attributable to higher staff costs due to an increase in the number of employees, with staff costs accounting for **59.2%** of administrative expenses[57](index=57&type=chunk)[59](index=59&type=chunk) [Research and Development Expenses](index=21&type=section&id=%E7%A0%94%E7%99%BC%E9%96%8B%E6%94%AF) - Research and development expenses increased by **5.51%** from **RMB 63.87 million** in the first half of **2024** to **RMB 67.39 million** in the first half of **2025**[61](index=61&type=chunk) - This was mainly due to increased material costs and higher staff costs resulting from an increase in the number of employees in the technology department[61](index=61&type=chunk) [Finance Costs](index=22&type=section&id=%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) - Finance costs increased from approximately **RMB 6.02 million** in the first half of **2024** to **RMB 6.61 million** in the first half of **2025**, primarily due to an increase in interest expenses on bank borrowings[63](index=63&type=chunk) Finance Costs Details (RMB thousands) | Finance Costs | 2025 | 2025 Percentage | 2024 | 2024 Percentage | | :--- | :--- | :--- | :--- | :--- | | Bank Borrowing Interest | 3,898 | 59.0% | 2,864 | 47.6% | | Lease Liabilities Interest | 2,425 | 36.7% | 2,249 | 37.4% | | Factoring Fees | 285 | 4.3% | 905 | 15.0% | | **Total** | **6,608** | **100.0%** | **6,018** | **100.0%** | [64](index=64&type=chunk) [Other Expenses and Losses](index=23&type=section&id=%E5%85%B6%E4%BB%96%E9%96%8B%E6%94%AF%E5%8F%8A%E虧%E6%90%8D) - Other expenses and losses increased from **RMB 0.96 million** in the first half of **2024** to **RMB 3.14 million** in the first half of **2025**, primarily due to an increase in investment losses from the deregistration of a subsidiary[66](index=66&type=chunk) Other Expenses and Losses Details (RMB thousands) | Item | 2025 | 2025 Percentage | 2024 | 2024 Percentage | | :--- | :--- | :--- | :--- | :--- | | Investment Loss from Deregistration of Subsidiary | 2,379 | 75.8% | – | – | | Loss on Disposal of Subsidiary | – | – | 553 | 57.8% | | Others (Impairment Loss on Property, Plant and Equipment) | 762 | 24.2% | 404 | 42.2% | | **Total** | **3,141** | **100.0%** | **957** | **100.0%** | [67](index=67&type=chunk)[68](index=68&type=chunk)[69](index=69&type=chunk) [Income Tax Expense](index=23&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) - Income tax expense increased from **RMB 15 million** in the first half of **2024** to **RMB 23 million** in the first half of **2025**, primarily due to an increase in profit leading to higher income tax provision[70](index=70&type=chunk) [Profit for the Period](index=24&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E9%96%93%E7%B4%94%E5%88%A9) - The company's net profit increased from **RMB 65.99 million** in the first half of **2024** to **RMB 136.64 million** in the first half of **2025**, representing a **107.07%** increase[71](index=71&type=chunk) [Liquidity and Working Capital](index=24&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E7%87%9F%E9%81%8B%E8%B3%87%E9%87%91) - As of June **30**, **2025**, cash and bank balances increased from **RMB 711.06 million** as of December **31**, **2024**, to **RMB 1,275.83 million**, primarily due to proceeds from the H-share issuance[72](index=72&type=chunk) - As of June **30**, **2025**, current assets were **RMB 2,592.82 million**, and current liabilities were **RMB 1,205.88 million**[72](index=72&type=chunk) [Cash Flows](index=24&type=section&id=%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F) - As of June **30**, **2025**, cash and cash equivalents were **RMB 1,275.83 million**, an increase from **RMB 666.03 million** as of June **30**, **2024**[73](index=73&type=chunk) [Key Financial Ratios](index=24&type=section&id=%E4%B8%BB%E8%A6%81%E8%B2%A1%E5%8B%99%E6%AF%94%E7%8E%87) Key Financial Ratios | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Gross Profit Margin | 46.86% | 40.54% | | Net Profit Margin | 4.23% | 2.69% | | Return on Equity | 11.21% | 5.91% | | Return on Total Assets | 7.22% | 3.96% | | Current Ratio | 2.15 | 2.50 | | Quick Ratio | 1.81 | 1.91 | | Inventory Turnover Days | 46.78 | 56.62 | | Debt-to-Equity Ratio | 13.07% | 9.33% | [74](index=74&type=chunk) - Profitability ratios (gross profit margin, net profit margin, return on equity, return on total assets) all showed significant improvement[74](index=74&type=chunk) - Inventory turnover days shortened, indicating improved inventory management efficiency[74](index=74&type=chunk) [Treasury Policy](index=25&type=section&id=%E5%BA%AB%E5%8B%99%E6%94%BF%E7%AD%96) The Group adopts a prudent financial management approach, maintaining a robust liquidity position and balancing funding continuity and flexibility through bank overdrafts, borrowings, and long-term leases - The company aims to ensure that its liquidity structure of assets, liabilities, and other commitments can meet its funding needs through diversified financing methods[76](index=76&type=chunk) [Material Investments](index=25&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87) For the six months ended June **30**, **2025**, the Group did not make any material investments - During the reporting period, the Group did not undertake any material investments[77](index=77&type=chunk) [Market Risks](index=26&type=section&id=%E5%B8%82%E5%A0%B4%E9%A2%A8%E9%9A%AA) The company faces various market risks, including raw material price fluctuations, exchange rate volatility, loss of key talent, and changes in tax incentive policies, and has implemented corresponding measures to mitigate potential impacts - Risk Types: Raw material price fluctuations, foreign exchange risk, credit risk, risk of losing key talent, and tax incentive risk[79](index=79&type=chunk) [Raw Material Price Fluctuation Risk](index=26&type=section&id=%E5%8E%9F%E6%9D%90%E6%96%99%E5%83%B9%E6%A0%BC%E6%B3%A2%E5%8B%95%E9%A2%A8%E9%9A%AA) - Risk: Fluctuations in raw paper prices negatively impact the gross margin of the packaging business[80](index=80&type=chunk) - Countermeasures: Closely monitor market dynamics, implement supplier price locking, advance stocking, centralized group procurement, and establish a price transmission system[80](index=80&type=chunk) [Exchange Rate Fluctuation Risk](index=26&type=section&id=%E5%BD%99%E7%8E%87%E6%B3%A2%E5%8B%95%E9%A2%A8%E9%9A%AA) - Risk: The cross-border social e-commerce business involves multiple foreign currency settlements, and changes in RMB to foreign currency exchange rates may affect profitability[81](index=81&type=chunk) - Countermeasures: Real-time monitoring of the foreign exchange market, considering foreign exchange hedging activities, and strengthening risk management[81](index=81&type=chunk) [Risk of Losing Key Talent](index=26&type=section&id=%E6%A0%B8%E5%BF%83%E4%BA%BA%E6%89%8D%E6%B5%81%E5%A4%B1%E7%9A%84%E9%A2%A8%E9%9A%AA) - Risk: The surging demand for professional talent in the internet industry means the loss of key technical personnel could adversely affect the company's operations and development[82](index=82&type=chunk) - Countermeasures: Building a strategic talent pool, optimizing talent structure, strengthening employee incentive mechanisms, and attracting and retaining outstanding talent[82](index=82&type=chunk) [Tax Incentive Risk](index=27&type=section&id=%E7%A8%85%E6%94%B6%E5%84%AA%E6%83%A0%E9%A2%A8%E9%9A%AA) - Risk: The company and some subsidiaries enjoy a **15%** corporate income tax preferential rate for high-tech enterprises; changes in policies or non-compliance with qualification standards may affect operating performance[84](index=84&type=chunk) - Countermeasures: Closely monitor tax incentive policy developments, promptly apply for certificate renewals, and ensure continued enjoyment of preferential treatment[84](index=84&type=chunk) [Material Acquisitions and Disposals](index=27&type=section&id=%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE) For the six months ended June **30**, **2025**, the Group did not have any material acquisitions or disposals of subsidiaries, consolidated affiliated entities, or associates - During the reporting period, the Group did not undertake any material acquisitions or disposals[85](index=85&type=chunk) [Future Plans for Material Investments and Capital Assets](index=27&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2%E7%9A%84%E6%9C%AA%E4%BE%86%E8%A8%88%E5%8A%83) As of the date of this interim report, the Group holds no material investments and has no future plans regarding material investments or capital assets - As of the report date, the Group has no future plans for material investments or capital assets[86](index=86&type=chunk) [Bank Loans and Other Borrowings](index=27&type=section&id=%E9%8A%80%E8%A1%8C%E8%B2%B8%E6%AC%BE%E5%8F%8A%E5%85%B6%E4%BB%96%E5%80%9F%E6%AC%BE) As of June **30**, **2025**, the Group's total loans and borrowings amounted to **RMB 348.4 million**, an increase of **40.4%** from December **31**, **2024**, with the debt-to-equity ratio decreasing by **6.11** percentage points from the beginning of the year to **52.51%** - As of June **30**, **2025**, the Group's total borrowings were **RMB 348.44 million**, and lease liabilities were **RMB 72.18 million**[87](index=87&type=chunk) - Total loans and borrowings increased by approximately **RMB 100.3 million** or **40.4%** compared to December **31**, **2024**[87](index=87&type=chunk) - The debt-to-equity ratio was **52.51%**, a decrease of **6.11** percentage points compared to December **31**, **2024**[88](index=88&type=chunk) [Contingent Liabilities](index=28&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June **30**, **2025**, the company had no contingent liabilities - As of June **30**, **2025**, the company had no contingent liabilities[89](index=89&type=chunk) [Pledge of Shares by Controlling Shareholders](index=28&type=section&id=%E6%8E%A7%E8%82%A1%E8%82%A1%E6%9D%B1%E8%82%A1%E4%BB%BD%E8%B3%AA%E6%8A%BC) As of the date of this interim report, controlling shareholders Ms. Zhuang Hao and Mr. Zhuang Shu have pledged a portion of their A-shares to Chinese licensed financial institutions as collateral for personal financing and external entity operations - Ms. Zhuang Hao pledged **26,350,000** A-shares, accounting for **5.82%** of the total share capital[90](index=90&type=chunk) - Mr. Zhuang Shu pledged **15,900,000** A-shares, accounting for **3.51%** of the total share capital[90](index=90&type=chunk) [Employees and Remuneration](index=28&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC) As of June **30**, **2025**, the company had **4,619** employees, primarily in production, operations, and technology departments, offering basic salaries, performance bonuses, various training programs, and participating in government-mandated welfare schemes Number of Employees by Role | Role | Number of Employees | Percentage of Total Employees | | :--- | :--- | :--- | | Production | 2,323 | 50.3% | | Sales and Marketing | 81 | 1.8% | | Technology | 587 | 12.7% | | Accounting and Finance | 105 | 2.3% | | General Administration | 482 | 10.4% | | Operations | 1,041 | 22.5% | | **Total** | **4,619** | **100%** | [92](index=92&type=chunk) - Remuneration includes basic salary, performance bonuses, year-end bonuses, project bonuses, and other miscellaneous bonuses, along with new employee onboarding training, skills training, and professional and management training[94](index=94&type=chunk) [Events After Reporting Period](index=29&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) Except as disclosed in this interim report, the company is not aware of any material events that may affect the Group from June **30**, **2025**, up to the date of this interim report - As of the date of this interim report, the company has not identified any material events after the reporting period[95](index=95&type=chunk) [Interim Dividend](index=29&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board recommends declaring an interim dividend of **RMB 0.18** per share (tax inclusive) for the six months ended June **30**, **2025**, subject to approval at an extraordinary general meeting - The proposed interim dividend is **RMB 0.18** per share (tax inclusive), based on **442,602,888** distributable shares[96](index=96&type=chunk) - The dividend is subject to approval at the extraordinary general meeting to be held on September **8**, **2025**, and is expected to be paid within **two** months after approval[96](index=96&type=chunk) [Corporate Governance and Other Information](index=30&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) [Corporate Governance Practices](index=30&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%B8%B8%E8%A6%8F) The company is committed to maintaining high standards of corporate governance, having established a modern corporate governance structure and adopted a corporate governance code, and has complied with all applicable code provisions during the reporting period, except for the unseparated roles of Chairman and Chief Executive - The company has established several independently operating and effectively balanced organizations, including the general meeting of shareholders, the Board of Directors, the Supervisory Committee (now abolished), and senior management[98](index=98&type=chunk) - The roles of Chairman and Chief Executive are not separated, with the Chief Executive's functions performed by an executive director, and the Board believes this structure does not impair the balance of power[98](index=98&type=chunk) [Standard Code for Securities Transactions by Directors](index=30&type=section&id=%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The company has adopted a code of conduct for securities transactions no less stringent than the Listing Rules' Model Code, applicable to all directors and senior management, and all directors confirmed strict compliance with this code during the reporting period - The company has adopted a "Securities Policy" whose terms are no less stringent than the Model Code set out in Appendix C**3** of the Listing Rules[100](index=100&type=chunk) - All directors confirmed strict compliance with the Model Code and the Securities Policy during the relevant period[101](index=101&type=chunk) [Audit Committee](index=31&type=section&id=%E5%AF%A9%E8%A8%88%E5%A7%94%E5%93%A1%E6%9C%83) The Audit Committee, composed of three independent non-executive directors, is responsible for reviewing compliance matters, accounting policies, financial reporting procedures, and overseeing the internal audit system, and has reviewed this interim report and financial statements - The Audit Committee comprises three independent non-executive directors: Dr. Zhang Guoqing (Chairman), Ms. Wu Yongqian, and Dr. Yang Chenhui[103](index=103&type=chunk) - Its main responsibilities include reviewing compliance, accounting policies, financial reporting, overseeing internal audit, and providing recommendations on external auditors[103](index=103&type=chunk) [Other Board Committees](index=31&type=section&id=%E5%85%B6%E4%BB%96%E8%91%A3%E4%BA%8B%E5%A7%94%E5%93%A1%E6%9C%83) In addition to the Audit Committee, the company has also established a Nomination Committee, a Strategic Committee, and a Remuneration and Appraisal Committee, with written terms of reference as stipulated by the Listing Rules - The company has a Nomination Committee, a Strategic Committee, and a Remuneration and Appraisal Committee, all with written terms of reference[104](index=104&type=chunk) [Directors' Rights to Acquire Shares or Debentures](index=31&type=section&id=%E8%91%A3%E4%BA%8B%E6%94%B6%E8%B3%BC%E8%82%A1%E4%BB%BD%E6%88%96%E5%82%B5%E6%AC%8A%E8%AD%89%E4%B9%8B%E6%AC%8A%E5%88%A9) During the reporting period, neither the company nor any of its subsidiaries was a party to any arrangement enabling directors, their spouses, or children under **18** to acquire benefits through the acquisition of shares or debentures of the company or any other body corporate - During the reporting period, directors and their associates did not acquire rights to purchase shares or debentures of the company or other corporations through any arrangement[105](index=105&type=chunk) [Interests and Short Positions of Directors and Chief Executive in Shares, Underlying Shares, and Debentures of the Company or its Associated Corporations](index=32&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%E6%88%96%E5%85%B6%E4%BB%BB%E4%BD%95%E7%9B%B8%E8%81%AF%E6%B3%95%E5%9C%98%E7%9A%84%E8%82%A1%E4%BB%BD%E3%80%81%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E5%8F%8A%E5%82%B5%E6%AC%8A%E8%AD%89%E4%B9%8B%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) As of the date of this interim report, several directors and chief executive officers held beneficial interests and/or interests as parties acting in concert in the company's shares, with Ms. Zhuang Hao being the largest beneficial interest holder Directors' Interests as of Interim Report Date (A-shares) | Director Name | Nature of Interest | Number of Shares Held | Approximate Percentage | | :--- | :--- | :--- | :--- | | Ms. Zhuang Hao | Beneficial Interest | 69,623,082 | 15.38% | | | Interests as Parties Acting in Concert | 53,866,003 | 11.90% | | Mr. Zhuang Shu | Beneficial Interest | 34,671,025 | 7.66% | | | Interests as Parties Acting in Concert | 88,818,060 | 19.62% | | Mr. Zhang Heping | Beneficial Interest | 6,236,125 | 1.38% | | | Interests as Parties Acting in Concert | 117,252,960 | 25.90% | | Mr. Lu Tashan | Beneficial Interest | 875,000 | 0.19% | | | Interests as Parties Acting in Concert | 122,614,085 | 27.09% | | Mr. Wang Yapeng | Beneficial Interest | 12,179,900 | 2.69% | [107](index=107&type=chunk) - Ms. Zhuang Hao, Mr. Zhuang Shu, Ms. He Jingying, Mr. Zhang Heping, Mr. Zhuang Zhenhai, Mr. Lu Tashan, and Tibet Yongyue are parties acting in concert, forming a single largest shareholder group[109](index=109&type=chunk)[112](index=112&type=chunk) [Interests and Short Positions of Substantial Shareholders in Shares and Underlying Shares of the Company](index=33&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%E8%82%A1%E4%BB%BD%E5%8F%8A%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E4%B9%8B%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) As of the date of this interim report, in addition to directors and chief executive officers, substantial shareholders such as Ms. He Jingying, Tibet Yongyue, and Mr. Zhuang Zhenhai also held interests and/or interests as parties acting in concert in the company's shares Substantial Shareholders' Interests as of Interim Report Date (A-shares) | Shareholder Name/Entity | Nature of Interest | Number of Shares Held | Approximate Percentage | | :--- | :--- | :--- | :--- | | Ms. He Jingying | Beneficial Interest | 6,638,925 | 1.47% | | | Interests as Parties Acting in Concert | 116,850,160 | 25.81% | | Tibet Yongyue | Beneficial Interest | 5,444,928 | 1.20% | | | Interests as Parties Acting in Concert | 118,044,157 | 26.08% | | Mr. Zhuang Zhenhai | Interest in Controlled Corporation | 5,444,928 | 1.20% | | | Interests as Parties Acting in Concert | 118,044,157 | 26.08% | [111](index=111&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=34&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E7%9A%84%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) On July **7**, **2025**, the company convened an extraordinary general meeting to approve the repurchase and cancellation of certain restricted A-shares, and as of the date of this interim report, the company held **10,076,400** treasury shares (A-shares) - On July **7**, **2025**, the company approved the repurchase and cancellation of restricted A-shares granted to certain participants[114](index=114&type=chunk) - As of the date of this interim report, the company held **10,076,400** treasury shares (A-shares)[114](index=114&type=chunk) [Amendments to Articles of Association](index=35&type=section&id=%E4%BF%AE%E8%A8%82%E7%AB%A0%E7%A8%8B) To comply with listed company regulatory requirements and improve corporate governance, the Board proposed several amendments to the Articles of Association, including the abolition of the Supervisory Committee to be replaced by the Audit Committee, and adjustments to the powers of the general meeting and the Board - Key amendments include the abolition of the Supervisory Committee to be replaced by the Audit Committee, adjustments to the powers of the general meeting and the Board, and provisions for directors, the Board, and Board committees[116](index=116&type=chunk) - These amendments were passed and approved at the extraordinary general meeting held on July **7**, **2025**[116](index=116&type=chunk) [Changes in Information of Directors and Supervisors](index=35&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E7%9B%A3%E4%BA%8B%E8%B3%87%E6%96%99%E8%AE%8A%E6%9B%B4) At the first extraordinary general meeting in **2025**, the company approved the proposal to abolish the Supervisory Committee, which will no longer be established, with its powers exercised by the Audit Committee - The company has abolished the Supervisory Committee, and its powers are now exercised by the Audit Committee[117](index=117&type=chunk) [Material Litigation](index=35&type=section&id=%E9%87%8D%E5%A4%A7%E8%A8%B4%E8%A8%9F) During the reporting period, the company was not involved in any material litigation or arbitration, and the directors were not aware of any pending or threatened material litigation or claims against the Group - During the reporting period, the company was not involved in any material litigation or arbitration[119](index=119&type=chunk)[120](index=120&type=chunk) [Public Float](index=35&type=section&id=%E5%85%AC%E7%9C%BE%E6%8C%81%E8%82%A1%E9%87%8F) From the listing date up to the date of this interim report, the company's public float has been maintained in compliance with the exemption granted by the Stock Exchange - The company's public float complies with the Stock Exchange's exemption requirements[121](index=121&type=chunk) [Continuing Disclosure Obligations Under Listing Rules](index=35&type=section&id=%E6%A0%B9%E6%93%9A%E4%B8%8A%E5%B8%82%E8%A6%8F%E5%88%99%E7%9A%84%E6%8C%81%E7%BA%8C%E6%8A%AB%E9%9C%B2%E8%B2%AC%E4%BB%BB) The company has no other disclosure obligations under Rules **13.20**, **13.21**, and **13.22** of the Listing Rules - The company has fulfilled its continuing disclosure obligations under the Listing Rules and has no other disclosure requirements[122](index=122&type=chunk) [Use of Net Proceeds from Global Offering](index=36&type=section&id=%E5%85%A8%E7%90%83%E7%99%BC%E5%94%AE%E6%89%80%E5%BE%97%E6%AC%BE%E9%A0%85%E6%B7%A8%E9%A1%8D%E7%94%A8%E9%80%94) The net proceeds from the global offering, approximately **HKD 422.0 million**, will be used for the purposes stated in the prospectus, with no changes to the intended use as of the date of this interim report, but remain unutilized - The net proceeds from the global offering are approximately **HKD 422.0 million**, with no change to the intended use[123](index=123&type=chunk) Use of Net Proceeds from Global Offering (million HKD) | Intended Use | Percentage of Total Net Proceeds | Net Proceeds for Relevant Use | Net Proceeds Utilized as of Interim Report Date | Unutilized Amount as of Interim Report Date | | :--- | :--- | :--- | :--- | :--- | | Overseas Market Expansion | 40% | 168.8 | 0 | 168.8 | | Technology Development (R&D, Data Analysis, Giikin Cloud) | 35% | 147.7 | 0 | 147.7 | | Expand Brand Portfolio and Develop Own Brands | 15% | 63.3 | 0 | 63.3 | | Working Capital and Other General Corporate Purposes | 10% | 42.2 | 0 | 42.2 | | **Total** | **100%** | **422.0** | **0** | **422.0** | [124](index=124&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=37&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (RMB thousands) | Item | June 30, 2025 (Unaudited) | June 30, 2024 (Audited) | | :--- | :--- | :--- | | Revenue | 3,233,526 | 2,453,464 | | Cost of Sales | (1,718,254) | (1,458,920) | | **Gross Profit** | **1,515,272** | **994,544** | | Other Income and Gains | 23,569 | 32,336 | | Selling and Marketing Expenses | (1,168,862) | (745,329) | | Administrative Expenses | (127,786) | (117,753) | | Research and Development Expenses | (67,393) | (63,872) | | Impairment Loss on Financial Assets | (4,235) | (1,043) | | Share of Profit / (Loss) of an Associate | 599 | (1,620) | | Net Exchange (Loss) / Gain | (1,668) | (9,293) | | Finance Costs | (6,608) | (6,018) | | Other Expenses and Losses | (3,141) | (957) | | **Profit Before Tax** | **159,748** | **80,995** | | Income Tax Expense | (23,113) | (15,006) | | **Profit for the Period** | **136,635** | **65,989** | | Profit Attributable to Owners of the Parent | 118,147 | 72,363 | | Profit Attributable to Non-controlling Interests | 18,488 | (6,374) | | **Basic EPS (RMB per share)** | **0.30** | **0.19** | | **Diluted EPS (RMB per share)** | **0.30** | **0.19** | | **Total Comprehensive Income for the Period** | **136,173** | **62,951** | [127](index=127&type=chunk)[128](index=128&type=chunk) [Condensed Consolidated Statement of Financial Position](index=39&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) Condensed Consolidated Statement of Financial Position (RMB thousands) | Item | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | **Total Non-current Assets** | **1,472,130** | **1,529,001** | | Property, Plant and Equipment | 891,575 | 930,436 | | Right-of-use Assets | 159,779 | 176,350 | | Investment in an Associate | 85,632 | 107,477 | | **Total Current Assets** | **2,592,818** | **1,974,093** | | Inventories | 404,583 | 447,889 | | Trade Receivables | 599,880 | 553,885 | | Cash and Cash Equivalents | 1,275,834 | 711,062 | | **Total Current Liabilities** | **1,205,877** | **1,084,387** | | Trade and Bills Payables | 745,740 | 716,560 | | Interest-bearing Bank and Other Borrowings (Current) | 230,919 | 121,126 | | **Net Current Assets** | **1,386,942** | **889,706** | | **Total Non-current Liabilities** | **193,621** | **210,192** | | Interest-bearing Bank and Other Borrowings (Non-current) | 117,523 | 127,067 | | **Net Assets** | **2,665,451** | **2,208,515** | | Equity Attributable to Owners of the Parent | 2,640,231 | 2,202,024 | | Non-controlling Interests | 25,220 | 6,491 | | **Total Equity** | **2,665,451** | **2,208,515** | [130](index=130&type=chunk)[131](index=131&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=41&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) Condensed Consolidated Statement of Changes in Equity (RMB thousands) | Item | Share Capital | Treasury Shares | Share Premium | Share Award Reserve | Statutory Reserve | Other Comprehensive Income | Retained Profits | Total Equity Attributable to Parent Owners | Non-controlling Interests | Total Equity | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **As at January 1, 2025** | **384,769** | **(136,164)** | **245,825** | **6,863** | **96,119** | **(20,849)** | **1,625,461** | **2,202,024** | **6,491** | **2,208,515** | | Profit for the Year | – | – | – | – | – | – | 118,147 | 118,147 | 18,488 | 136,635 | | Exchange Differences on Translation of Foreign Operations | – | – | – | – | – | (377) | – | (377) | (84) | (461) | | **Total Comprehensive Income for the Period** | **–** | **–** | **–** | **–** | **–** | **(377)** | **118,147** | **117,770** | **18,404** | **136,173** | | Issuance of Ordinary Shares | 67,910 | – | 319,104 | – | – | – | – | 387,014 | – | 387,014 | | Equity-settled Share-based Payment Expense | – | – | – | 2,709 | – | – | – | 2,709 | – | 2,709 | | Repurchase of Shares for Share Incentive Scheme | – | (9,562) | – | – | – | – | – | (9,562) | – | (9,562) | | Dividends Declared | – | – | – | – | – | – | (59,724) | (59,724) | – | (59,724) | | Contribution from Non-controlling Interests | – | – | – | – | – | – | – | – | 325 | 325 | | **As at June 30, 2025** | **452,679** | **(145,726)** | **564,929** | **9,572** | **96,119** | **(21,226)** | **1,683,884** | **2,640,231** | **25,220** | **2,665,451** | [132](index=132&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=43&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) Condensed Consolidated Statement of Cash Flows (RMB thousands) | Item | June 30, 2025 (Unaudited) | June 30, 2024 (Audited) | | :--- | :--- | :--- | | **Net Cash Flows from Operating Activities** | **182,637** | **38,017** | | Profit Before Tax | 159,748 | 80,995 | | Cash Generated from Operations | 189,518 | 76,904 | | Income Tax Paid | (12,597) | (47,287) | | Interest Received | 5,716 | 8,400 | | **Net Cash Flows Used in Investing Activities** | **(73,616)** | **(101,111)** | | Purchase of Property, Plant and Equipment Items | (43,234) | (77,171) | | Purchase of Deposits with Original Maturity Over 3 Months at Acquisition | (440,691) | (133,307) | | Proceeds from Maturity of Deposits with Original Maturity Over 3 Months at Acquisition | 390,894 | 119,891 | | **Net Cash Flows from / (Used in) Financing Activities** | **456,139** | **(322,279)** | | Proceeds from Issuance of Shares | 478,705 | – | | Repayment of Interest-bearing Bank Borrowings | (88,167) | (149,388) | | Dividends Paid | (59,724) | (136,824) | | **Net Increase / (Decrease) in Cash and Cash Equivalents** | **565,160** | **(385,373)** | | Cash and Cash Equivalents at Beginning of Year / Period | 711,062 | 1,062,110 | | **Cash and Cash Equivalents at End of Year / Period** | **1,275,834** | **666,029** | [136](index=136&type=chunk)[137](index=137&type=chunk)[139](index=139&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=46&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) [Company Information](index=46&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) This note reiterates Xiamen Jihong Technology Co, Ltd's establishment date, listing history, headquarters address, and primary operating activities, namely cross-border social e-commerce and the production and sale of eco-friendly packaging, also noting Ms. Zhuang Hao as the controlling shareholder - The company was established on December **24**, **2003**, listed on A-shares in **2016**, and on H-shares on May **27**, **2025**[140](index=140&type=chunk) - The main operating activities are cross-border social e-commerce business and the production and sale of eco-friendly and food packaging[140](index=140&type=chunk) - The Group's controlling shareholder and ultimate controlling shareholder is the natural person shareholder Ms. Zhuang Hao[141](index=141&type=chunk) [Basis of Presentation and Principal Accounting Policies](index=46&type=section&id=%E5%91%88%E5%88%97%E5%9F%BA%E6%BA%96%E5%8F%8A%E4%B8%BB%E8%A6%81%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) The interim financial information is prepared in accordance with International Accounting Standard **34**, adopting the historical cost convention, with certain financial assets measured at fair value - The interim financial information is prepared in accordance with International Accounting Standard No. **34**[142](index=142&type=chunk) - The historical cost convention is adopted, except for equity investments at fair value through other comprehensive income, financial assets at fair value through profit or loss, and certain time deposits[142](index=142&type=chunk) [Operating Segment Information](index=47&type=section&id=%E7%B6%93%E7%87%9F%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group is divided into three reportable segments based on products and services: e-commerce, packaging, and others, with management separately managing the operating results of each segment and providing financial information for each - The Group has three reportable segments: e-commerce business, packaging business, and other businesses[144](index=144&type=chunk)[146](index=146&type=chunk) [Basis for Determining Reportable Segments and Accounting Policies](index=47&type=section&id=%E5%A0%B1%E5%91%8A%E5%88%86%E9%83%A8%E7%9A%84%E7%A2%BA%E5%AE%9A%E4%BE%9D%E6%93%9A%E8%88%87%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) - Segment results are evaluated based on adjusted profit from continuing operations, excluding interest income, finance costs, dividend income, etc[144](index=144&type=chunk) - Segment assets and liabilities do not include deferred income tax assets, borrowings, etc., which are managed centrally by the Group[144](index=144&type=chunk) [Financial Information of Reportable Segments](index=48&type=section&id=%E5%A0%B1%E5%91%8A%E5%88%86%E9%83%A8%E7%9A%84%E8%B2%A1%E5%8B%99%E4%BF%A1%E6%81%AF) Financial Information of Reportable Segments for the Six Months Ended June 30, 2025 (RMB thousands) | Item | E-commerce Business | Packaging Business | Other Businesses | Inter-segment Eliminations | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue from External Customers | 2,116,454 | 1,115,164 | 1,908 | – | 3,233,526 | | Segment Results | 83,439 | 183,015 | (3,316) | – | 263,138 | | Total Profit | – | – | – | – | 159,748 | | Total Assets | – | – | – | – | 4,064,948 | | Total Liabilities | – | – | – | – | 1,399,497 | [147](index=147&type=chunk) Financial Information of Reportable Segments for the Six Months Ended June 30, 2024 (RMB thousands) | Item | E-commerce Business | Packaging Business | Other Businesses | Inter-segment Eliminations | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue from External Customers | 1,384,122 | 1,013,388 | 55,954 | – | 2,453,464 | | Segment Results | 27,575 | 209,683 | (5,837) | – | 231,421 | | Total Profit | – | – | – | – | 80,995 | | Total Assets | – | – | – | – | 3,085,495 | | Total Liabilities | – | – | – | – | 930,543 | [149](index=149&type=chunk) [Revenue](index=50&type=section&id=%E6%94%B6%E5%85%A5) This section details the disaggregation of revenue from customer contracts, including by type of goods or services and by geographical region, and explains the timing of satisfaction of performance obligations - In the first half of **2025**, total revenue from customer contracts was **RMB 3,233,526 thousand**, primarily from cross-border social e-commerce and paper-based packaging businesses[150](index=150&type=chunk) - Revenue disaggregated by geographical region shows **RMB 959,326 thousand** from Mainland China and **RMB 2,274,200 thousand** from other countries or regions[154](index=154&type=chunk) [Disaggregation of Revenue Information](index=50&type=section&id=%E6%94%B6%E7%9B%8A%E8%B3%87%E6%96%99%E5%8A%83%E5%88%86) Revenue from Customer Contracts by Type of Goods or Services for the Six Months Ended June 30, 2025 (RMB thousands) | Segment | Cross-border Social E-commerce | Paper-based Packaging | Others | Total | | :--- | :--- | :--- | :--- | :--- | | Cross-border Social E-commerce | 2,116,454 | – | – | 2,116,454 | | Paper-based Packaging | – | 1,115,164 | – | 1,115,164 | | Others | – | – | 1,908 | 1,908 | | **Total Revenue from Customer Contracts** | **2,116,454** | **1,115,164** | **1,908** | **3,233,526** | [150](index=150&type=chunk) Revenue by Geographical Region (RMB thousands) | Geographical Region | 2025 | 2024 | | :--- | :--- | :--- | | Mainland China | 959,326 | 1,008,954 | | Other Countries or Regions | 2,274,200 | 1,444,510 | | **Total** | **3,233,526** | **2,453,464** | [154](index=154&type=chunk) [Performance Obligations](index=52&type=section&id=%E5%B1%A5%E7%B4%84%E7%BE%A9%E5%8B%99) - Performance obligations for product sales are satisfied when the customer accepts the product, with contract prices typically settled within **30** to **90** days after delivery, while cross-border social e-commerce uses online platform prepayment or cash on delivery[155](index=155&type=chunk) - Performance obligations for service provision are satisfied upon completion and acceptance by the customer, with contract prices typically paid within **30** to **90** days[156](index=156&type=chunk) [Other Income and Gains, Other Expenses and Losses](index=53&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A%E3%80%81%E5%85%B6%E4%BB%96%E9%96%8B%E6%94%AF%E5%8F%8A%E虧%E6%90%8D) This section presents other income and gains for the reporting period, primarily including government grants and bank interest income, as well as other expenses and losses, mainly investment losses from the deregistration of an associate Other Income and Gains (RMB thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Government Grants | 12,191 | 19,681 | | Bank Interest Income | 5,716 | 8,400 | | Gains on Financial Assets at FVTPL | 3,884 | 1,333 | | **Total Other Income and Gains** | **23,569** | **32,336** | [158](index=158&type=chunk) Other Expenses and Losses (RMB thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Investment Loss from Deregistration of Subsidiary | 2,379 | – | | Loss on Disposal of Subsidiary | – | 553 | | Others | 762 | 404 | | **Total Other Expenses and Losses** | **3,141** | **957** | [159](index=159&type=chunk) [Finance Costs](index=54&type=section&id=%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) This section analyzes finance costs for the reporting period, primarily comprising bank borrowing interest, lease liabilities interest, and factoring fees Finance Costs Analysis (RMB thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Bank Borrowing Interest | 3,898 | 2,864 | | Lease Liabilities Interest | 2,426 | 2,249 | | Factoring Fees | 285 | 905 | | **Total** | **6,608** | **6,018** | [160](index=160&type=chunk) [Income Tax](index=55&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85) This section outlines the income tax policies for the company and its subsidiaries in China and Hong Kong, including preferential tax rates for high-tech enterprises, encouraged industries in western regions, and small and micro enterprises, as well as Hong Kong's two-tiered profits tax system - Chinese subsidiaries' corporate income tax rate is **25%**, with some high-tech enterprises enjoying a **15%** preferential tax rate[163](index=163&type=chunk) - Hong Kong profits tax is calculated at **16.5%**, with eligible enterprises paying **8.25%** on the first **HKD 2,000,000** of assessable profits[166](index=166&type=chunk) Income Tax Expense (RMB thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Current Income Tax | 23,322 | 14,640 | | Deferred Tax | (209) | 366 | | **Total** | **23,113** | **15,006** | [167](index=167&type=chunk) [Dividends](index=56&type=section&id=%E8%82%A1%E6%81%AF) This section discloses the dividends declared to ordinary equity holders of the parent company during the reporting period, including profit distribution plans for **2024** and **2023** - On April **1**, **2025**, shareholders approved the **2024** profit distribution plan, with a dividend of **RMB 0.16** per share, totaling **RMB 59,757,000**[168](index=168&type=chunk) - On April **22**, **2024**, shareholders approved the **2023** profit distribution plan, with a dividend of **RMB 0.36** per share, totaling **RMB 136,824,000**[168](index=168&type=chunk) [Earnings Per Share Attributable to Ordinary Equity Holders of the Parent](index=56&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E6

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部 或任何部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 海南美蘭國際空港股份有限公司 Hainan Meilan International Airport Company Limited* （在中華人民共和國註冊成立之股份有限公司） （股票代碼：357） 截至二零二五年六月三十日之中期業績公告 財務摘要 業務摘要 * 僅供識別 – 1 – – 總收入為人民幣1,079.26百萬元 （截至二零二四年六月三十日止六個月：人民幣1,149.28百萬元） – 航空業務收入為人民幣575.60百萬元 （截至二零二四年六月三十日止六個月：人民幣603.64百萬元） – 非航空業務收入為人民幣503.66百萬元 （截至二零二四年六月三十日止六個月：人民幣545.64百萬元） – 股東應佔淨虧損為人民幣70.20百萬元 （截至二零二四年六月三十日止六個月：股東應佔淨虧損人民幣248.05百萬元） – 每股虧損為人民幣0.15元 （截至二零二四年六月三十日止六個月：每股虧損 ...

[Performance Highlights and Dividend Policy](index=1&type=section&id=Performance%20Highlights%20and%20Dividend%20Policy) [Performance Highlights](index=1&type=section&id=Performance%20Highlights) For the six months ended June 30, 2025, the Group achieved strong growth with turnover increasing by 9.2% to approximately RMB 4.658 billion, gross profit by 10.4% to approximately RMB 800 million, and profit attributable to equity holders of the Company significantly rising by 53.8% to approximately RMB 416 million, driving basic earnings per share up by 57.1% to RMB 0.11 Key Performance Indicators for H1 2025 | Indicator | H1 2025 | Year-on-Year Change | | :--- | :--- | :--- | | Turnover | Approx. **4,658.1 Million RMB** | ▲ 9.2% | | Gross Profit | Approx. **799.8 Million RMB** | ▲ 10.4% | | Profit Attributable to Equity Holders of the Company | Approx. **416.0 Million RMB** | ▲ 53.8% | | Basic Earnings Per Share | Approx. **0.11 RMB Yuan** | ▲ 57.1% | | Net Asset Per Share | Approx. **2.41 RMB Yuan** | ▲ 5.2% | [Interim Dividend](index=1&type=section&id=Interim%20Dividend) The Board recommends an interim dividend of RMB 0.01 per share (tax inclusive) for the six months ended June 30, 2025, compared to no dividend distributed in the prior corresponding period, reflecting enhanced profitability and commitment to shareholder returns - The Board recommends an interim dividend of **RMB 0.01 per share (tax inclusive)**, totaling approximately **RMB 36.85 million**, with no dividend declared for the same period last year[3](index=3&type=chunk) - The dividend distribution is subject to approval at an extraordinary general meeting and is planned for November 25, 2025, to shareholders on record as of November 11[3](index=3&type=chunk) [Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Income Statement](index=2&type=section&id=Consolidated%20Income%20Statement) During the reporting period, the Group's total operating revenue increased by 9.2% to RMB 4.658 billion, operating profit significantly grew by 36.0% to RMB 451 million, primarily driven by a substantial increase in investment income, and net profit attributable to owners of the parent company rose by 53.8% to RMB 416 million, with basic earnings per share increasing from RMB 0.07 to RMB 0.11 Key Items from Consolidated Income Statement (Unit: RMB Yuan) | Item | Jan-Jun 2025 | Jan-Jun 2024 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | **Total Operating Revenue** | **4,658,076,541.58** | 4,265,890,940.36 | ▲ 9.2% | | **Operating Profit** | **451,447,300.24** | 332,056,505.13 | ▲ 36.0% | | **Total Profit** | **453,202,467.35** | 338,411,918.63 | ▲ 33.9% | | **Net Profit Attributable to Owners of the Parent Company** | **415,972,007.93** | 270,407,916.25 | ▲ 53.8% | | **Basic Earnings Per Share (RMB Yuan/share)** | **0.11** | 0.07 | ▲ 57.1% | - Investment income was a key driver of profit growth, increasing by **41.3%** from **RMB 282 million** in the prior period to **RMB 398 million**, primarily from investments in associates and joint ventures[7](index=7&type=chunk) [Consolidated Balance Sheet](index=4&type=section&id=Consolidated%20Balance%20Sheet) As of June 30, 2025, the Group's total assets increased by 6.5% to RMB 18.833 billion, total liabilities increased by 9.7% to RMB 9.947 billion, and total equity attributable to owners of the parent company increased by 3.3% to RMB 8.372 billion, maintaining a stable asset-liability structure Key Items from Consolidated Balance Sheet (Unit: RMB Yuan) | Item | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | **18,832,647,128.50** | 17,686,757,262.53 | ▲ 6.5% | | Total Current Assets | 12,297,185,193.02 | 11,314,638,741.05 | ▲ 8.7% | | **Total Liabilities** | **9,947,279,293.63** | 9,068,374,825.01 | ▲ 9.7% | | Total Current Liabilities | 8,795,065,919.78 | 7,422,677,256.86 | ▲ 18.5% | | **Total Equity Attributable to Owners of the Parent Company** | **8,372,117,091.17** | 8,101,862,288.65 | ▲ 3.3% | [Consolidated Cash Flow Statement](index=8&type=section&id=Consolidated%20Cash%20Flow%20Statement) During the reporting period, net cash flow from operating activities was a net outflow of RMB 517 million, an increase from RMB 252 million outflow in the prior period, while net cash flow from investing activities turned positive with a net inflow of RMB 151 million, and net cash flow from financing activities also turned positive with a net inflow of RMB 66 million, with cash and cash equivalents at period-end totaling RMB 1.803 billion Summary of Consolidated Cash Flow Statement (Unit: RMB Yuan) | Item | Jan-Jun 2025 | Jan-Jun 2024 | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | **-516,663,588.73** | -251,757,496.73 | | Net Cash Flow from Investing Activities | **151,468,034.35** | -120,654,783.12 | | Net Cash Flow from Financing Activities | **65,998,281.00** | -431,685,424.36 | | **Net Increase in Cash and Cash Equivalents** | **-297,870,919.19** | -803,605,388.56 | | **Cash and Cash Equivalents at Period-End** | **1,803,247,577.77** | 1,378,084,325.25 | [Notes to the Financial Statements](index=10&type=section&id=Notes%20to%20the%20Financial%20Statements) [Company Overview and Basis of Preparation](index=10&type=section&id=Company%20Overview%20and%20Basis%20of%20Preparation) The Company, a joint stock limited company registered in the PRC, listed on the Hong Kong Stock Exchange in 2008, with Chongqing Machinery & Electronics Group as its parent and Chongqing Yufu Holding Group as its ultimate controlling company, primarily engages in the manufacturing, sales, and services of clean energy and high-end intelligent equipment, with financial statements prepared on a going concern basis in accordance with China Accounting Standards for Business Enterprises and Hong Kong Listing Rules - The Company's principal business segments are the manufacturing, sales, and services of clean energy equipment and high-end intelligent equipment[20](index=20&type=chunk) - Financial statements are prepared in accordance with China Accounting Standards for Business Enterprises and Hong Kong Listing Rules, on a going concern basis[22](index=22&type=chunk)[23](index=23&type=chunk) [Significant Accounting Policies and Estimates](index=11&type=section&id=Significant%20Accounting%20Policies%20and%20Estimates) The Group adopts the calendar year as its accounting period, with a 12-month operating cycle and RMB as its functional currency, recognizing revenue when control of goods or services is transferred, either at a point in time or over a period, with no significant changes in accounting policies or estimates during the reporting period - Revenue is recognized when the customer obtains control of the related goods or services, distinguishing between performance obligations satisfied at a point in time or over a period[36](index=36&type=chunk)[38](index=38&type=chunk) - During the reporting period, there were no significant changes in accounting policies, significant changes in accounting estimates, or significant prior period accounting error adjustments[43](index=43&type=chunk) [Taxation](index=18&type=section&id=Taxation) The Group's main taxes include corporate income tax and value-added tax, with some subsidiaries enjoying preferential tax policies, such as the Western Development Policy and High-tech Enterprise status, applying a 15% preferential income tax rate compared to the standard 25% rate, based on their business location and nature - Several subsidiaries within the Group enjoy a **15%** preferential corporate income tax rate due to qualifying for the Western Development encouraged industries or being recognized as High-tech Enterprises[47](index=47&type=chunk)[48](index=48&type=chunk) [Notes to Key Items and Supplementary Information](index=21&type=section&id=Notes%20to%20Key%20Items%20and%20Supplementary%20Information) During the reporting period, revenue from principal activities was RMB 4.555 billion, a 9.1% year-on-year increase, non-recurring gains and losses totaled RMB 65.53 million, positively impacting net profit, and net profit attributable to ordinary shareholders of the parent company after deducting non-recurring gains and losses was RMB 350 million, with a weighted average return on net assets of 4.25% Operating Revenue by Business Segment (Jan-Jun 2025) | Business Segment | Operating Revenue (RMB Yuan) | | :--- | :--- | | High-end Intelligent Equipment Business | **880,896,050.15** | | Clean Energy Equipment Business | **3,738,135,999.77** | | Industrial Services Business | **31,910,363.02** | | Head Office and Others | **7,134,128.64** | - Total non-recurring gains and losses for the reporting period amounted to **RMB 65.526 million**, primarily from government grants and asset disposal gains[60](index=60&type=chunk)[61](index=61&type=chunk) Return on Net Assets and Earnings Per Share | Profit for the Period | Weighted Average Return on Net Assets (%) | Basic Earnings Per Share (RMB Yuan/share) | | :--- | :--- | :--- | | Net Profit Attributable to Ordinary Shareholders of the Parent Company | **5.05** | **0.11** | | Net Profit Attributable to Ordinary Shareholders of the Parent Company After Deducting Non-recurring Gains and Losses | **4.25** | **0.10** | [Management Discussion and Analysis](index=28&type=section&id=Management%20Discussion%20and%20Analysis) [Segment Business Performance](index=28&type=section&id=Segment%20Business%20Performance) The Group's business is divided into three segments: Clean Energy Equipment, the primary source of revenue and profit, saw revenue increase by 11.3% and segment results by 241.1%; High-end Intelligent Equipment revenue slightly increased by 1.1% but turned from profit to loss due to UK subsidiary performance and trade friction; Industrial Services revenue and results declined due to lower financial business interest rates Overview of Segment Performance (For the period ended June 30, Million RMB) | Business Segment | Revenue (2025) | Revenue (2024) | Segment Results (2025) | Segment Results (2024) | | :--- | :--- | :--- | :--- | :--- | | Clean Energy Equipment | **3,738.2** | 3,359.4 | **152.8** | 44.8 | | High-end Intelligent Equipment | **880.9** | 871.1 | **(37.7)** | 38.3 | | Industrial Services | **31.9** | 34.8 | **11.9** | 24.8 | [Clean Energy Equipment Business](index=29&type=section&id=Clean%20Energy%20Equipment%20Business) This segment performed strongly in the first half, with operating revenue increasing by 11.3% to RMB 3.738 billion and segment results surging by 241.1% to RMB 153 million, driven by strong market performance and order acquisition in wind power blades, industrial pumps, and wires and cables, alongside significant loss reduction in hydropower equipment, with stable growth expected in the second half through overseas market expansion and technological innovation - The Clean Energy Equipment segment's revenue grew by **11.3%**, and segment results increased by **241.1%**, primarily due to a significant reduction in losses from the hydropower equipment business[65](index=65&type=chunk)[66](index=66&type=chunk) - Joint venture Chongqing Cummins Engine Co., Ltd. achieved substantial performance growth, significantly contributing to the Group's investment income[68](index=68&type=chunk) [High-end Intelligent Equipment Business](index=30&type=section&id=High-end%20Intelligent%20Equipment%20Business) This segment's revenue slightly increased by 1.1% to RMB 881 million, but segment results turned from a profit of RMB 38.3 million in the prior period to a loss of RMB 37.7 million, mainly due to project delays and financial constraints at UK subsidiary PTG, coupled with the impact of overseas trade friction on intelligent manufacturing business, which high-end CNC machine tools growth could not offset - The High-end Intelligent Equipment segment turned from profit to loss, primarily due to increased losses from UK subsidiary PTG's business decline and the impact of overseas trade friction on the intelligent manufacturing business[69](index=69&type=chunk)[70](index=70&type=chunk) [Industrial Services Business](index=32&type=section&id=Industrial%20Services%20Business) Industrial Services revenue decreased to RMB 31.9 million in the first half, with segment results declining by 52.0% to RMB 11.9 million, mainly due to lower interest rates in the financial business, while the company continues to advance 'Digital Electromechanical' construction and treasury management systems to enhance efficiency and risk control - The Industrial Services segment's results decreased by **52.0%** year-on-year, primarily due to the impact of lower interest rates in the financial business[72](index=72&type=chunk) [Overall Financial Review](index=33&type=section&id=Overall%20Financial%20Review) The Group's total sales increased by 9.2% and gross profit by 10.4%, with operating profit significantly growing by 36.0%, mainly driven by improvements in the hydropower equipment business and a 41.3% increase in investment income, particularly from Chongqing Cummins' contribution, while significantly reduced finance costs and income tax expenses collectively led to a strong 53.8% growth in profit attributable to equity holders - Total operating revenue increased by **9.2%** to **RMB 4.658 billion**, and gross profit increased by **10.4%** to **RMB 800 million**[74](index=74&type=chunk)[75](index=75&type=chunk) - Operating profit increased by **36.0%**, primarily driven by operational improvements in the hydropower equipment business and growth in investment income[79](index=79&type=chunk) - Investment income increased by **41.3%** year-on-year, mainly benefiting from the performance growth of joint venture Chongqing Cummins[81](index=81&type=chunk) - Profit attributable to equity holders increased by **53.8%** to **RMB 416 million**, with earnings per share rising from **RMB 0.07** to **RMB 0.11**[83](index=83&type=chunk) [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) At the end of the reporting period, the Group's cash and bank balances were approximately RMB 2.423 billion, total assets increased to RMB 18.833 billion, and total liabilities increased to RMB 9.947 billion, with the current ratio decreasing from 1.52:1 to 1.40:1 and the gearing ratio slightly decreasing from 20.3% to 19.3%, indicating a stable financial position, while total bank and other borrowings slightly decreased - Net cash outflow from operating activities was **RMB 517 million**, compared to an outflow of **RMB 252 million** in the prior period[85](index=85&type=chunk) Key Financial Ratios | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current Ratio | **1.40 : 1** | 1.52 : 1 | | Gearing Ratio | **19.3%** | 20.3% | [Other Significant Information](index=37&type=section&id=Other%20Significant%20Information) [Significant Events](index=37&type=section&id=Significant%20Events) During the reporting period, the Company underwent several significant events, including an internal reorganization at the controlling shareholder level, resulting in Yufu Holding becoming the indirect controlling shareholder, the acquisition of 100% equity in Chongqing Panlian Transmission Technology Co., Ltd., the renewal of multiple continuing connected transaction agreements with the parent group, the completion of re-election for the Board of Directors and Supervisory Committee, and the deconsolidation of subsidiary Chongqing Smart Manufacturing Co., Ltd. - An internal reorganization at the controlling shareholder level resulted in Yufu Holding becoming the Company's indirect controlling shareholder[92](index=92&type=chunk) - The Company completed the acquisition of **100%** equity in Chongqing Panlian Transmission Technology Co., Ltd. and renewed multiple continuing connected transaction agreements with the parent company[94](index=94&type=chunk)[95](index=95&type=chunk)[96](index=96&type=chunk) - Subsidiary Chongqing Smart Manufacturing Co., Ltd. is no longer consolidated, with no significant financial impact expected on the Group[102](index=102&type=chunk)[104](index=104&type=chunk) - The Company completed the re-election of its Seventh Board of Directors and Supervisory Committee[107](index=107&type=chunk)[108](index=108&type=chunk) [Capital Commitments, Expenditures, and Risk Management](index=42&type=section&id=Capital%20Commitments%2C%20Expenditures%2C%20and%20Risk%20Management) At the end of the reporting period, the Group's total capital commitments were approximately RMB 44.8 million, with total capital expenditures of approximately RMB 86 million during the period, primarily for plant expansion and technical equipment upgrades, and the Group manages financial resources through treasury policies and foreign exchange hedging systems to mitigate currency fluctuation risks mainly involving HKD, GBP, and USD - Total capital expenditures during the period were approximately **RMB 86 million**, an increase of over **100%** year-on-year, primarily for capacity enhancement and technological upgrades[113](index=113&type=chunk) - The Group manages financial and exchange rate risks through treasury policies and a foreign exchange hedging system[114](index=114&type=chunk)[115](index=115&type=chunk) [Staffing Situation](index=43&type=section&id=Staffing%20Situation) As of June 30, 2025, the Group had 6,188 employees, a decrease from 6,720 in the prior corresponding period, and continues to promote technical talent upgrading and improve its remuneration system - As of June 30, 2025, the Group had **6,188** employees, a year-on-year decrease of approximately **8%**[116](index=116&type=chunk) [Major Shareholders' Interests](index=44&type=section&id=Major%20Shareholders'%20Interests) As of June 30, 2025, the Company's major shareholders include controlling shareholder Chongqing Machinery & Electronics Holding (Group) Co., Ltd., holding approximately 54.74% of the Company's shares (domestic shares + H shares), and Chongqing SASAC is deemed to hold approximately 67.34% interest in the Company due to equity relationships Major Shareholders' Shareholding (Percentage of Total Issued Shares) | Shareholder Name | Shareholding Percentage (%) | | :--- | :--- | | Chongqing Machinery & Electronics Holding (Group) Co., Ltd. | **54.74%** | | Chongqing State-owned Assets Supervision and Administration Commission (Interests in controlled corporations) | **67.34%** | | Chongqing Construction Engineering Group Co., Ltd. | **6.30%** | | China CITIC Financial Asset Management Co., Ltd. | **5.32%** | [Corporate Governance](index=46&type=section&id=Corporate%20Governance) During the reporting period, the Company adopted and complied with the code provisions of the Corporate Governance Code as set out in Appendix C1 of the Hong Kong Listing Rules, adopted procedures for directors' securities transactions, and confirmed compliance by all directors, with no purchase, sale, or redemption of any of the Company's listed securities during the period - The Company complied with the Corporate Governance Code and the Model Code for Securities Transactions by Directors during the reporting period[122](index=122&type=chunk)[123](index=123&type=chunk) - During the period, the Group did not purchase, sell, or redeem any of the Company's listed securities, had no significant acquisitions or disposals, and no new significant litigations[124](index=124&type=chunk)[125](index=125&type=chunk)[126](index=126&type=chunk)

[Interim Results Announcement](index=1&type=section&id=Interim%20Results%20Announcement) [Key Financial Highlights](index=2&type=section&id=Key%20Financial%20Highlights) Smoore International reported RMB 6.013 billion revenue, up 18.3%, with gross profit increasing 16.6% to RMB 2.244 billion, while profit for the period decreased 28.0% to RMB 492 million due to higher expenses Key Financial Data for the Six Months Ended June 30, 2025 | Metric | 2025 (RMB '000) | 2024 (RMB '000) | Change (%) | Change (percentage points) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 6,013,290 | 5,083,554 | 18.3 | - | | Gross Profit | 2,243,850 | 1,923,951 | 16.6 | - | | Gross Margin | 37.3% | 37.8% | - | (0.5) | | Profit Before Tax | 698,735 | 811,555 | (13.9) | - | | Profit for the Period | 492,154 | 683,198 | (28.0) | - | | Total Comprehensive Income for the Period | 501,166 | 724,597 | (30.8) | - | | Adjusted Profit for the Period | 737,410 | 752,851 | (2.1) | - | | Adjusted Net Profit Margin | 12.3% | 14.8% | - | (2.5) | - Profit for the period decreased by **28.0%**, primarily due to significant increases in share-based payment expenses, market development costs, and legal and compliance service fees, which were not fully offset by revenue and gross profit growth[34](index=34&type=chunk) - Adjusted profit for the period excludes non-cash share-based payment expenses, which management believes provides a clearer reflection of operating performance[5](index=5&type=chunk)[6](index=6&type=chunk) [Key Financial Ratios](index=3&type=section&id=Key%20Financial%20Ratios) As of June 30, 2025, total assets slightly decreased, but total equity grew by 2.5%, with improved debt-to-asset and current ratios indicating a robust financial structure Key Financial Ratios as of June 30, 2025 | Metric | June 30, 2025 (RMB '000) | Dec 31, 2024 (RMB '000) | Change (%) | Change (percentage points) | | :--- | :--- | :--- | :--- | :--- | | Total Assets | 27,331,803 | 27,654,378 | (1.2) | - | | Total Equity | 22,445,554 | 21,904,711 | 2.5 | - | | Cash and Cash Equivalents | 5,211,753 | 5,170,700 | 0.8 | - | | Debt-to-Asset Ratio | 17.9% | 20.8% | - | (2.9) | | Current Ratio | 336.7% | 320.3% | - | 16.4 | | Trade Receivables and Bills Turnover Days | 61.4天 | 61.5天 | (0.2) | - | | Inventory Turnover Days | 45.7天 | 41.8天 | 9.3 | - | | Trade Payables and Bills Turnover Days | 62.4天 | 65.2天 | (4.3) | - | [Management Discussion and Analysis](index=4&type=section&id=Management%20Discussion%20and%20Analysis) [Principal Business](index=4&type=section&id=Principal%20Business) Smoore International, a global leader in atomization technology, operates ToB and self-owned brand businesses, offering R&D, design, manufacturing, and technical services for diverse atomization products - The Group primarily operates through two major segments, ToB business and self-owned brand business, offering diversified atomization technology solutions[8](index=8&type=chunk) - The ToB business covers R&D, design, manufacturing, and technical services for atomization products, Heat-Not-Burn (HNB) products, special-purpose atomization products, and atomization medical products[8](index=8&type=chunk) - The self-owned brand business primarily includes R&D, design, manufacturing, and sales of self-owned brand e-vapor products and atomization beauty products[8](index=8&type=chunk) [Business Review](index=6&type=section&id=Business%20Review) Stricter global e-vapor regulations in H1 2025 drove the Group's revenue up 18.3%, fueled by ToB and self-owned brand business recovery and strategic focus on compliant, innovative products - Global e-vapor product regulations are tightening, with the US FDA increasing enforcement and several European countries implementing bans on disposable atomization products, creating growth opportunities for compliant market participants[8](index=8&type=chunk)[12](index=12&type=chunk)[13](index=13&type=chunk) Revenue by Business Segment for H1 2025 | Business Segment | H1 2025 Revenue (RMB 100 million) | Year-on-Year Growth (%) | | :--- | :--- | :--- | | ToB Business | 47.39 | 19.5 | | Self-owned Brand Business | 12.74 | 14.1 | | **Total Revenue** | **60.13** | **18.3** | - The Group drove sales growth by rapidly launching innovative and compliant new products and deepening cooperation with clients, offering marketing, branding, and channel operation services[9](index=9&type=chunk)[10](index=10&type=chunk) [Sales and Marketing](index=6&type=section&id=Sales%20and%20Marketing) Amid strict global regulations, the Group's sales and marketing focused on compliant products, with VAPORESSO strong in Europe and "Lanzhi" growing significantly in China, while ToB business faced mixed regional performance - The US FDA intensified enforcement against non-compliant e-vapor products, seizing nearly **2 million** unauthorized items, with multiple states passing or considering e-vapor registration bills[12](index=12&type=chunk) - The UK implemented a ban on disposable e-vapor product sales, creating significant market opportunities for compliant products[13](index=13&type=chunk) Revenue by Business Segment and Region for H1 2025 | Business Segment | Region | H1 2025 Revenue (RMB 100 million) | Year-on-Year Growth (%) | | :--- | :--- | :--- | | Self-owned Brand | Europe and Other | 10.69 | 15.1 | | Self-owned Brand | US | 1.74 | (6.7) | | Self-owned Brand | China (Atomization Beauty) | 0.31 | 2,595.2 | | ToB | Europe and Other | 27.34 | 38.0 | | ToB | US | 18.88 | 1.5 | | ToB | China | 1.17 | (6.1) | - Self-owned brand atomization beauty product "Lanzhi" saw revenue in mainland China increase by **2,595.2%** year-on-year, obtained Class II medical device certification, and has been adopted by multiple beauty institutions and public hospitals[15](index=15&type=chunk) [Research and Development](index=8&type=section&id=Research%20and%20Development) R&D expenses decreased 4.9% to RMB 723 million in H1 2025, shifting focus to HNB and atomization medical, with breakthroughs in HNB and new patent applications totaling 10,092 globally - R&D expenses decreased by **4.9%** year-on-year to **RMB 723 million**, with its proportion of revenue falling from **15.0%** to **12.0%**, primarily due to reduced investment in e-vapor products and the capitalization of eligible development costs[11](index=11&type=chunk)[19](index=19&type=chunk)[24](index=24&type=chunk)[46](index=46&type=chunk) - The R&D strategy focused on HNB products and atomization medical, successfully supporting a strategic client's launch of a high-end HNB product series in Japan, with plans to expand to more markets in H2 2025[19](index=19&type=chunk)[20](index=20&type=chunk)[27](index=27&type=chunk) - Atomization medical subsidiary Transpring established an inhaled product R&D center in Miami, Florida, and collaborated with CDMOs to build drug-device combination product manufacturing capabilities in the US[20](index=20&type=chunk)[21](index=21&type=chunk) R&D Expense Classification for H1 2025 | R&D Area | 2025 (RMB '000) | Proportion (%) | 2024 (RMB '000) | Proportion (%) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Electronic Nicotine Delivery Systems | 478,591 | 66.2 | 481,988 | 63.4 | (0.7) | | Atomization Medical and Atomization Beauty | 179,241 | 24.8 | 185,471 | 24.4 | (3.4) | | Special-Purpose Atomization Products and Solutions | 64,732 | 9.0 | 92,653 | 12.2 | (30.1) | | **Total** | **722,564** | **100.0** | **760,112** | **100.0** | **(4.9)** | - As of June 30, 2025, the Group had accumulated **10,092** patent applications globally, including **5,224** invention patents, with **839** new patent applications (including **464** invention patents) during the review period[23](index=23&type=chunk) [Production Operations](index=10&type=section&id=Production%20Operations) The Group's production system achieved excellent agility and improved capacity utilization through flexible operations, KPI implementation, and successful support for key HNB product launches - The production system continuously improved overall capacity utilization through flexible operational adjustments and strategic optimization of production layout, ensuring rapid market response and customer delivery[25](index=25&type=chunk) - A Key Performance Indicators (KPIs) system and an operational knowledge base were established to promote cross-factory knowledge sharing and experience integration, continuously improving operational efficiency[25](index=25&type=chunk) - The HNB business achieved breakthroughs, with the operations team effectively supporting the launch and delivery of key clients' HNB products and establishing a stringent product quality control system[25](index=25&type=chunk) [Future Prospects and Strategies](index=11&type=section&id=Future%20Prospects%20and%20Strategies) The Group will focus on "atomization technology," deepening its presence in e-vapor, HNB, and medical atomization, accelerating technology commercialization, and enhancing operations for sustainable growth and shareholder returns - The Group will continue to adhere to "atomization technology" as its core, deepening its presence in key areas such as e-vapor, HNB, special-purpose atomization products, atomization medical, and atomization beauty products[26](index=26&type=chunk) Market Size Forecast for Various Atomization Products (2024-2029) | Market | 2029 Market Size (USD) | 2024-2029 CAGR (%) | | :--- | :--- | :--- | | HNB Products | 66.86 billion | 10.1 | | E-vapor Products | 91.42 billion | 7.4 | | Special-Purpose Atomization Products | 3.44 billion | 17.2 | - The atomization medical market is projected to reach approximately **USD 93.28 billion** by 2030, with Transpring dedicated to developing generic drugs for asthma and COPD products and advancing drug-device combination product development[30](index=30&type=chunk) - China's beauty device retail market is expected to significantly expand to **RMB 25.1 billion to RMB 37.4 billion** by 2025, and the skincare market is projected to reach **RMB 701.1 billion** by 2028[31](index=31&type=chunk) - Future strategies include accelerating technology platform commercialization, prioritizing R&D for HNB and atomization medical solutions, launching competitive new products in the e-vapor sector, and deepening comprehensive one-stop cooperation with clients[31](index=31&type=chunk)[32](index=32&type=chunk) - Production and operations management will be strengthened, increasing automation, streamlining workflows, and promoting a "prevention-first" quality assurance approach, while committing to corporate social responsibility and sustainable development[33](index=33&type=chunk) [Financial Review](index=14&type=section&id=Financial%20Review) [Overall Financial Performance](index=14&type=section&id=Overall%20Financial%20Performance) In H1 2025, revenue grew 18.3% to RMB 6.013 billion, gross profit increased 16.6% to RMB 2.244 billion, but profit for the period fell 28.0% to RMB 492 million due to higher expenses Overall Financial Performance for H1 2025 | Metric | 2025 (RMB '000) | 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | | Total Revenue | 6,013,290 | 5,083,554 | 18.3 | | Gross Profit | 2,243,850 | 1,923,951 | 16.6 | | Gross Margin | 37.3% | 37.8% | (0.5 percentage points) | | Profit for the Period | 492,154 | 683,198 | (28.0) | | Adjusted Profit for the Period | 737,410 | 752,851 | (2.1) | - The primary reasons for the decrease in profit for the period include: (i) a significant increase in share-based payment expenses; (ii) a substantial increase in market development costs for self-owned brand products; and (iii) a significant increase in legal and compliance service-related fees[34](index=34&type=chunk) [Revenue by Business Type](index=14&type=section&id=Revenue%20by%20Business%20Type) Total revenue grew 18.3% in H1 2025, with ToB business contributing 78.8% (up 19.5%) and self-owned brands 21.2% (up 14.1%), notably driven by strong ToB growth in Europe and atomization beauty in China Revenue by Business Type for H1 2025 | Business Type | 2025 (RMB '000) | Proportion (%) | 2024 (RMB '000) | Proportion (%) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Self-owned Brand Business | 1,274,306 | 21.2 | 1,116,743 | 22.0 | 14.1 | | ToB Business | 4,738,984 | 78.8 | 3,966,811 | 78.0 | 19.5 | | **Total** | **6,013,290** | **100.0** | **5,083,554** | **100.0** | **18.3** | Detailed Revenue by Business Segment and Region for H1 2025 | Business Segment | Region | 2025 (RMB '000) | Proportion of Total Revenue (%) | 2024 (RMB '000) | Proportion of Total Revenue (%) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Self-owned Brand | Europe and Other (E-vapor) | 1,069,339 | 17.8 | 928,687 | 18.3 | 15.1 | | Self-owned Brand | US (E-vapor) | 174,349 | 2.9 | 186,920 | 3.7 | (6.7) | | Self-owned Brand | China (Atomization Beauty) | 30,618 | 0.5 | 1,136 | 0.0 | 2,595.2 | | ToB | Europe and Other (E-vapor, HNB, Technical Services) | 2,733,787 | 45.4 | 1,981,193 | 39.0 | 38.0 | | ToB | US (E-vapor, Special-Purpose Atomization, Technical Services) | 1,887,768 | 31.4 | 1,860,614 | 36.6 | 1.5 | | ToB | China (E-vapor, Technical Services) | 117,429 | 2.0 | 125,004 | 2.4 | (6.1) | | **Total** | | **6,013,290** | **100.0** | **5,083,554** | **100.0** | **18.3** | [Gross Profit and Cost of Revenue](index=17&type=section&id=Gross%20Profit%20and%20Cost%20of%20Revenue) Gross profit increased 16.6% to RMB 2.244 billion in H1 2025, but gross margin slightly declined to 37.3%, with cost of revenue rising 19.3% due to increased labor and indirect costs - Gross profit increased by **16.6%** to **RMB 2,243,850 thousand**, with gross margin slightly decreasing by **0.5 percentage points** to **37.3%**[41](index=41&type=chunk) Cost of Revenue Composition for H1 2025 | Cost Item | 2025 (RMB '000) | Proportion of Revenue (%) | 2024 (RMB '000) | Proportion of Revenue (%) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Raw Material Costs | 2,845,798 | 47.3 | 2,428,773 | 47.8 | 17.2 | | Labor Costs | 433,682 | 7.2 | 341,758 | 6.7 | 26.9 | | Indirect Costs | 454,955 | 7.6 | 354,390 | 7.0 | 28.4 | | Taxes and Surcharges | 35,005 | 0.6 | 34,682 | 0.7 | 0.9 | | **Total** | **3,769,440** | **62.7** | **3,159,603** | **62.2** | **19.3** | - The proportion of raw material costs to revenue slightly decreased, primarily benefiting from the Group's continuous efforts to reduce product costs and enhance efficiency[42](index=42&type=chunk) [Selling and Distribution Expenses](index=18&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and distribution expenses rose 31.2% to RMB 491 million in H1 2025, increasing to 8.2% of revenue, mainly due to higher marketing investment in self-owned brands - Selling and distribution expenses increased by **31.2%** to **RMB 491,229 thousand**, with its proportion of revenue growing from **7.4%** to **8.2%**[43](index=43&type=chunk) - Staff salaries and benefits increased by **24.9%** to **RMB 185,664 thousand**, primarily due to increased remuneration for marketing personnel[43](index=43&type=chunk) - Market development costs increased by **123.2%** to **RMB 133,965 thousand**, primarily due to intensified promotion of e-vapor products and atomization beauty products[43](index=43&type=chunk) [Administrative Expenses](index=19&type=section&id=Administrative%20Expenses) Administrative expenses surged 79.7% to RMB 610 million in H1 2025, reaching 10.1% of revenue, driven by increased share-based payment and legal compliance costs - Administrative expenses increased by **79.7%** to **RMB 609,548 thousand**, with its proportion of revenue growing from **6.7%** to **10.1%**[44](index=44&type=chunk) - Staff salaries and benefits increased by **76.2%** to **RMB 357,378 thousand**, primarily due to increased share-based payment expenses[45](index=45&type=chunk) - Professional fees increased by **819.6%** to **RMB 139,687 thousand**, primarily due to increased legal and compliance service-related fees[45](index=45&type=chunk) [Research and Development Expenses](index=20&type=section&id=Research%20and%20Development%20Expenses) R&D expenses decreased 4.9% to RMB 723 million in H1 2025, falling to 12.0% of revenue, mainly due to reduced e-vapor product investment and capitalized development costs - R&D expenses decreased by **4.9%** to **RMB 722,564 thousand**, with its proportion of revenue falling from **15.0%** to **12.0%**[46](index=46&type=chunk) - R&D expenses for Electronic Nicotine Delivery Systems decreased by **0.7%**, for atomization medical and atomization beauty products by **3.4%**, and for special-purpose atomization products and solutions by **30.1%**[46](index=46&type=chunk) - The primary reasons for the decrease in R&D expenses were reduced investment in e-vapor products and the capitalization of eligible development costs[46](index=46&type=chunk) [Other Income and Expenses](index=21&type=section&id=Other%20Income%20and%20Expenses) Total other income decreased 9.3% to RMB 350 million in H1 2025, mainly due to lower bank interest and government grants, despite increased investment note interest Other Income and Expenses for H1 2025 | Item | 2025 (RMB '000) | 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | | Interest income from bank deposits | 235,658 | 322,425 | (26.9) | | Interest income from investment notes measured at amortized cost | 87,130 | — | Not applicable | | Government grants | 19,192 | 57,955 | (66.9) | | Other | 7,711 | 5,255 | 46.7 | | **Total** | **349,691** | **385,635** | **(9.3)** | [Other Gains and Losses](index=21&type=section&id=Other%20Gains%20and%20Losses) Total other losses surged 811.9% to RMB 55.177 million in H1 2025, primarily due to net foreign exchange losses and increased losses from asset disposals Other Gains and Losses for H1 2025 | Item | 2025 (RMB '000) | 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | | Net foreign exchange (loss) gain | (37,238) | 8,134 | Not applicable | | Loss arising from forward foreign exchange contracts/swap contracts | (482) | — | Not applicable | | Gain arising from short-term floating rate bank deposits | 5,524 | 1,118 | 394.1 | | Gain arising from debt instruments | 2,498 | — | Not applicable | | Gain on early termination of leases | 258 | 396 | (34.8) | | Loss on disposal/write-off of property, plant and equipment | (25,737) | (22,935) | 12.2 | | Other | — | 7,236 | Not applicable | | **Total** | **(55,177)** | **(6,051)** | **811.9** | [Finance Costs](index=22&type=section&id=Finance%20Costs) Finance costs decreased 26.4% to RMB 13.619 million in H1 2025, mainly due to lower interest expenses from lease liabilities and discounted bills receivable - Finance costs decreased by **26.4%** year-on-year to **RMB 13,619 thousand**[49](index=49&type=chunk) - Primarily from interest expenses on lease liabilities and interest expenses arising from discounted bills receivable[49](index=49&type=chunk) [Income Tax Expense](index=22&type=section&id=Income%20Tax%20Expense) Income tax expense increased 60.9% to RMB 207 million in H1 2025, driven by higher tax provisions for international expansion and first-time recognition of Pillar Two related taxes - Income tax expense increased by **60.9%** year-on-year to **RMB 206,581 thousand**[50](index=50&type=chunk) - The primary reason for the increase in income tax was increased tax provisions related to the Group's international business expansion[50](index=50&type=chunk) - First-time recognition of current income tax expenses of **RMB 76,218 thousand** related to Pillar Two rules[86](index=86&type=chunk) [Profit for the Period and Total Comprehensive Income](index=22&type=section&id=Profit%20for%20the%20Period%20and%20Total%20Comprehensive%20Income) Profit for the period decreased 28.0% to RMB 492 million, and total comprehensive income fell 30.8% to RMB 501 million in H1 2025, as expense growth outpaced revenue and gross profit - Profit for the period decreased by **28.0%** year-on-year to **RMB 492,154 thousand**[51](index=51&type=chunk) - Total comprehensive income for the period decreased by **30.8%** year-on-year to **RMB 501,166 thousand**[51](index=51&type=chunk) - The primary reason for the decline was insufficient growth in revenue and gross profit to offset the increase in expenses[51](index=51&type=chunk) [Liquidity and Financial Resources](index=22&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group maintained strong liquidity with RMB 10.20 billion net current assets and a 336.7% current ratio, boasting a robust financial position with no borrowings or pledged assets - Net current assets were approximately **RMB 10,198,578 thousand**, and cash and cash equivalents were approximately **RMB 5,211,753 thousand**[52](index=52&type=chunk) - The current ratio was **336.7%**, an improvement from **320.3%** at the end of 2024[52](index=52&type=chunk) - The Group had no borrowings from banks or other financial institutions, its debt-to-asset ratio decreased to **21.8%**, and no assets were pledged, indicating a robust financial position[54](index=54&type=chunk)[55](index=55&type=chunk)[56](index=56&type=chunk) [Foreign Exchange Risk](index=23&type=section&id=Foreign%20Exchange%20Risk) With 70% of revenue in USD and 80% of expenses in RMB, the Group faces foreign exchange risk from USD-denominated assets, managed via settlements and forward contracts, with a 10% USD/RMB fluctuation impacting comprehensive income by RMB 1.146 billion - Approximately **70%** of the Group's revenue is settled in USD, and about **30%** in RMB; approximately **80%** of expenses are settled in RMB[57](index=57&type=chunk) - The primary foreign exchange risk arises from USD-denominated monetary assets and the net amount of trade receivables less trade payables[57](index=57&type=chunk) - If the USD to RMB exchange rate increases/decreases by **10%**, the Group's total comprehensive income will increase/decrease by approximately **RMB 1,145,717 thousand**[58](index=58&type=chunk) [Employment, Training and Development](index=24&type=section&id=Employment%2C%20Training%20and%20Development) As of June 30, 2025, the Group employed 23,183 individuals globally, offering comprehensive benefits and development programs, with total staff costs rising to 28.5% of revenue due to increased share-based payments - As of June 30, 2025, the Group had **20,978** employees in China and **2,205** in other countries and regions, totaling **23,183** employees[59](index=59&type=chunk) - The company offers comprehensive remuneration and benefits, and share incentive schemes, and has developed "Hongyi Program," "Zhenyu Program," and a "1 – 3 – 5 – 7 – 10" ten-year development path for fresh graduates[59](index=59&type=chunk)[60](index=60&type=chunk) - Total staff costs accounted for approximately **28.5%** of revenue, an increase from **25.6%** in the prior period, primarily due to a year-on-year increase in share-based payment expenses[60](index=60&type=chunk) [Capital Expenditure and Commitments](index=24&type=section&id=Capital%20Expenditure%20and%20Commitments) Total investment surged to RMB 785 million in H1 2025, mainly for headquarters, equipment, and capitalized R&D, while capital commitments decreased to RMB 474 million by June 30, 2025 - For the six months ended June 30, 2025, total investment in property, plant and equipment, and intangible assets was approximately **RMB 784,581 thousand**, a significant increase from **RMB 282,315 thousand** in the prior period[61](index=61&type=chunk) - The increase in capital expenditure was primarily due to the recognition of capital expenditure related to the headquarters building, equipment, and capitalized R&D expenditures[61](index=61&type=chunk) - As of June 30, 2025, capital commitments for contracted purchases of property, plant and equipment were approximately **RMB 474,461 thousand**, a decrease from **RMB 707,750 thousand** at the end of 2024[62](index=62&type=chunk) [Other Financial Disclosures](index=25&type=section&id=Other%20Financial%20Disclosures) The Group made no significant acquisitions, disposals, investments, or contingent liabilities during the review period, with future plans referencing past disclosures - For the six months ended June 30, 2025, the Group did not undertake any significant acquisitions or disposals of subsidiaries, associates, or joint ventures[63](index=63&type=chunk) - The Group had no significant investments or significant contingent liabilities[64](index=64&type=chunk)[65](index=65&type=chunk) - Future plans regarding significant investments or capital expenditures will refer to disclosures in the 2020 prospectus, 2021 placing announcement, and 2021 annual report[66](index=66&type=chunk) [Condensed Consolidated Financial Statements](index=26&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=26&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This statement presents the Group's unaudited profit or loss and other comprehensive income for H1 2025, detailing revenue, gross profit, expenses, profit before tax, and earnings per share Summary of Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Revenue | 6,013,290 | 5,083,554 | | Gross Profit | 2,243,850 | 1,923,951 | | Profit Before Tax | 698,735 | 811,555 | | Profit for the Period | 492,154 | 683,198 | | Total Comprehensive Income for the Period | 501,166 | 724,597 | | Basic Earnings Per Share (RMB cents) | 8.08 | 11.20 | | Diluted Earnings Per Share (RMB cents) | 7.96 | 11.11 | [Condensed Consolidated Statement of Financial Position](index=27&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This statement presents the Group's unaudited financial position as of June 30, 2025, showing a slight decrease in total assets but an increase in total equity and high net current assets Summary of Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (RMB '000) | Dec 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Non-current Assets | 12,824,214 | 10,807,950 | | Current Assets | 14,507,589 | 16,846,428 | | Current Liabilities | 4,309,011 | 5,259,365 | | Net Current Assets | 10,198,578 | 11,587,063 | | Total Assets Less Current Liabilities | 23,022,792 | 22,395,013 | | Non-current Liabilities | 577,238 | 490,302 | | Net Assets | 22,445,554 | 21,904,711 | | Total Equity | 22,445,554 | 21,904,711 | [Condensed Consolidated Statement of Cash Flows](index=29&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This statement presents the Group's unaudited cash flows for H1 2025, detailing net cash from operating, investing, and financing activities, and the period-end cash and cash equivalents Summary of Condensed Consolidated Statement of Cash Flows | Metric | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Net Cash from Operating Activities | 813,755 | 602,829 | | Net Cash from Investing Activities | 539,974 | 267,909 | | Net Cash (Used in) from Financing Activities | (1,298,904) | 332,125 | | Net Increase in Cash and Cash Equivalents | 54,825 | 1,202,863 | | Cash and Cash Equivalents at End of Period | 5,211,753 | 6,534,871 | [Notes to Condensed Consolidated Financial Statements](index=30&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) [General Information](index=30&type=section&id=General%20Information) Smoore International, incorporated in the Cayman Islands and listed on HKEX, primarily operates ToB and self-owned brand businesses, with financial statements presented in RMB - The Company was incorporated in the Cayman Islands on July 22, 2019, and its shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited on July 10, 2020[73](index=73&type=chunk) - The Group's principal activities are ToB business (R&D, design, manufacturing, and technical services for atomization products, HNB products, special-purpose atomization products, and atomization medical products) and self-owned brand business (R&D, design, manufacturing, and sales of self-owned brand e-vapor products and atomization beauty products)[73](index=73&type=chunk) - The Group's condensed consolidated financial statements are presented in RMB[74](index=74&type=chunk) [Basis of Preparation and Significant Accounting Policies](index=30&type=section&id=Basis%20of%20Preparation%20and%20Significant%20Accounting%20Policies) The condensed consolidated financial statements are prepared under HKAS 34 and Listing Rules, using historical cost, with new HKFRS revisions having no significant impact on financial position or performance - The condensed consolidated financial statements have been prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" and the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[75](index=75&type=chunk) - The financial statements are prepared on the historical cost basis, except for certain financial instruments which are measured at fair value[76](index=76&type=chunk) - The revisions to Hong Kong Financial Reporting Standards adopted for the first time in this interim period had no significant impact on the Group's financial position and performance[77](index=77&type=chunk) [Revenue and Segment Information](index=31&type=section&id=Revenue%20and%20Segment%20Information) The Group's revenue primarily from ToB and self-owned brand businesses is mostly recognized at a point in time, with Hong Kong, UK, and US as key revenue sources Disaggregation of Revenue from Contracts with Customers for H1 2025 | Business Type | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | ToB Business | 4,738,984 | 3,966,811 | | Self-owned Brand Business | 1,274,306 | 1,116,743 | | **Total Revenue** | **6,013,290** | **5,083,554** | | Timing of Revenue Recognition | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | At a point in time | 5,847,159 | 5,037,242 | | Over time | 166,131 | 46,312 | | **Total Revenue** | **6,013,290** | **5,083,554** | - Revenue from the sale of goods is recognized when control of the goods is transferred (i.e., upon delivery), while revenue from technical services is recognized over time[79](index=79&type=chunk)[80](index=80&type=chunk) Revenue Disaggregated by Customer Location for H1 2025 | Region | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Hong Kong, China | 2,128,271 | 1,858,625 | | United Kingdom | 1,501,465 | 1,149,981 | | United States | 648,850 | 567,266 | | Mainland China | 417,262 | 364,777 | | Republic of Croatia | 222,905 | 92,588 | | France | 161,195 | 160,310 | | Malaysia | 124,464 | 2,023 | | Japan | 118,811 | 114,880 | | Canada | 101,353 | 81,652 | | Other | 588,714 | 691,452 | | **Total** | **6,013,290** | **5,083,554** | [Other Gains and Losses (Note)](index=33&type=section&id=Other%20Gains%20and%20Losses%20(Note)) This note details H1 2025 other gains and losses, totaling a RMB 55.177 million loss, significantly higher due to foreign exchange and asset disposal losses Details of Other Gains and Losses for H1 2025 | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Net foreign exchange (loss) gain | (37,238) | 8,134 | | Loss arising from forward foreign exchange contracts/swap contracts | (482) | — | | Gain arising from short-term floating rate bank deposits | 5,524 | 1,118 | | Gain arising from debt instruments | 2,498 | — | | Gain on early termination of leases | 258 | 396 | | Loss on disposal/write-off of property, plant and equipment | (25,737) | (22,935) | | Other | — | 7,236 | | **Total** | **(55,177)** | **(6,051)** | [Income Tax Expense (Note)](index=34&type=section&id=Income%20Tax%20Expense%20(Note)) This note details H1 2025 income tax expense, totaling RMB 207 million (up 60.9%), driven by increased taxes across regions and the first-time recognition of Pillar Two related current income tax Details of Income Tax Expense for H1 2025 | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Mainland China corporate income tax | 78,729 | 87,985 | | Hong Kong profits tax | 34,729 | 11,882 | | Other countries and regions | 94,963 | 1,588 | | Deferred tax | (1,840) | 26,902 | | **Total** | **206,581** | **128,357** | - Certain mainland China subsidiaries, as high-tech enterprises, enjoy a preferential corporate income tax rate of **15%**[85](index=85&type=chunk) - Current income tax expenses of **RMB 76,218 thousand** related to Pillar Two rules were recognized in this interim period, leading to an expected effective income tax rate higher than **15%**[86](index=86&type=chunk) [Profit for the Period (Note)](index=35&type=section&id=Profit%20for%20the%20Period%20(Note)) This note details expenses deducted for profit calculation, including depreciation, amortization, and inventory provisions, and specifies amounts capitalized as inventory, PPE, and intangible assets Items Deducted in Profit for the Period for H1 2025 | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Depreciation of right-of-use assets for buildings and land use rights | 87,229 | 88,819 | | Depreciation of property, plant and equipment other than right-of-use assets | 232,603 | 258,614 | | Amortization of intangible assets | 14,175 | 16,875 | | **Total** | **334,007** | **364,308** | | Less: Amounts capitalized as manufacturing costs of inventories and property, plant and equipment | (187,605) | (221,122) | | Amounts capitalized as intangible assets | (11,228) | — | | Inventory provision charged to cost of revenue | 3,466 | 17,993 | | Government grants | 19,192 | 57,955 | [Dividends (Note)](index=35&type=section&id=Dividends%20(Note)) This note discloses RMB 279 million in dividends for H1 2025, with the Board declaring an interim dividend of HKD 20 cents per share, a significant increase from the prior period - Dividends recognized as distributions for the period amounted to **RMB 279,308 thousand**[88](index=88&type=chunk)[89](index=89&type=chunk) - The Board resolved to pay an interim dividend of **HKD 20 cents** per share (H1 2024: **HKD 5 cents**), totaling approximately **HKD 1,238,220 thousand** to shareholders[89](index=89&type=chunk) [Earnings Per Share (Note)](index=36&type=section&id=Earnings%20Per%20Share%20(Note)) This note provides basic and diluted earnings per share calculations, with basic EPS at RMB 8.08 cents and diluted EPS at RMB 7.96 cents as of June 30, 2025 Earnings Per Share Calculation Data for H1 2025 | Metric | 2025 (RMB '000 / '000 shares) | 2024 (RMB '000 / '000 shares) | | :--- | :--- | :--- | | Profit for the purpose of calculating basic and diluted earnings per share | 492,154 | 683,198 | | Weighted average number of ordinary shares for the purpose of calculating earnings per share | 6,091,740 | 6,101,812 | | Effect of dilutive potential ordinary shares: share options/award shares | 93,359 | 50,173 | | **Basic Earnings Per Share (RMB cents)** | **8.08** | **11.20** | | **Diluted Earnings Per Share (RMB cents)** | **7.96** | **11.11** | [Trade and Other Receivables (Note)](index=36&type=section&id=Trade%20and%20Other%20Receivables%20(Note)) This note details trade and other receivables totaling RMB 2.015 billion as of June 30, 2025, with credit terms of 0-105 days and an aging analysis provided Trade and Other Receivables for H1 2025 | Item | June 30, 2025 (RMB '000) | Dec 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Trade receivables from contracts with customers | 2,053,186 | 2,103,221 | | Less: Provision for credit losses | (37,863) | (36,314) | | Bills receivable | — | 17,918 | | **Total** | **2,015,323** | **2,084,825** | - The Group grants credit periods of **0 to 105 days** to trade customers[91](index=91&type=chunk) Aging Analysis of Trade Receivables for H1 2025 | Aging | June 30, 2025 (RMB '000) | Dec 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Within 30 days | 492,339 | 764,436 | | 31 to 60 days | 637,280 | 550,894 | | 61 to 90 days | 479,201 | 477,720 | | Over 90 days | 406,503 | 273,857 | | **Total** | **2,015,323** | **2,066,907** | [Trade and Other Payables (Note)](index=37&type=section&id=Trade%20and%20Other%20Payables%20(Note)) This note details trade and other payables totaling RMB 1.242 billion as of June 30, 2025, with typical credit terms of 30-90 days and an aging analysis provided Trade and Other Payables for H1 2025 | Item | June 30, 2025 (RMB '000) | Dec 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Trade payables | 1,136,290 | 1,209,152 | | Bills payable | 105,567 | 160,424 | | **Total** | **1,241,857** | **1,369,576** | - The Group is typically granted credit periods of **30 to 90 days**[93](index=93&type=chunk) Aging Analysis of Trade Payables for H1 2025 | Aging | June 30, 2025 (RMB '000) | Dec 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Within 30 days | 389,907 | 730,256 | | 31 to 60 days | 500,169 | 284,727 | | 61 to 90 days | 182,233 | 158,228 | | Over 90 days | 63,981 | 35,941 | | **Total** | **1,136,290** | **1,209,152** | [Other Information](index=38&type=section&id=Other%20Information) [Corporate Governance](index=38&type=section&id=Corporate%20Governance) The Company adheres to good corporate governance, complying with Listing Rules, and despite the combined Chairman/CEO role, the Board believes existing checks and balances protect shareholder interests - The Company has complied with all code provisions and recommended best practices of the Corporate Governance Code in Appendix C1 of the Listing Rules (except for the roles of Board Chairman and Chief Executive Officer being held by Mr. Chen Zhiping)[95](index=95&type=chunk) - The Board believes that the current arrangement, where the roles of Chairman and Chief Executive Officer are held by the same person, is most appropriate for the overall interests of shareholders, as there are sufficient checks and balances within the Board, and directors have committed to fulfilling their fiduciary duties[95](index=95&type=chunk)[96](index=96&type=chunk) [Audit Committee](index=39&type=section&id=Audit%20Committee) The Audit Committee, chaired by Mr. Zhong Shan and composed of three independent non-executive directors, reviews the Group's financial practices, risk management, and internal controls - The Audit Committee comprises three independent non-executive directors, with Mr. Zhong Shan serving as Chairman, possessing expertise in accounting, auditing, and finance[97](index=97&type=chunk) - The Audit Committee's primary responsibilities include reviewing the Group's financial and accounting practices, risk management, and internal controls, and it has reviewed the unaudited condensed consolidated interim financial information for the six months ended June 30, 2025[97](index=97&type=chunk) [Standard Code for Securities Transactions by Directors](index=39&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company adopted the Listing Rules' Standard Code for Directors' Securities Transactions, with all directors confirming strict compliance during the review period - The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules[98](index=98&type=chunk) - All directors have confirmed strict compliance with the requirements of the Standard Code for Securities Transactions for the six months ended June 30, 2025[98](index=98&type=chunk) [Interim Dividend and Closure of Register of Members](index=39&type=section&id=Interim%20Dividend%20and%20Closure%20of%20Register%20of%20Members) The Board declared an interim dividend of HKD 20 cents per share for H1 2025, a significant increase, with share transfer registration suspended from September 9-11, 2025, to determine eligible shareholders - The Board resolved to declare an interim dividend of **HKD 20 cents** per share for the six months ended June 30, 2025 (H1 2024: **HKD 5 cents**)[99](index=99&type=chunk) - The interim dividend will be paid to shareholders whose names appear on the register of members on September 11, 2025, with payment expected on September 25, 2025[99](index=99&type=chunk) - The Company will suspend share transfer registration from September 9, 2025, to September 11, 2025, to determine shareholders entitled to the interim dividend[100](index=100&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=40&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Listed%20Securities) Neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities, nor issued equity or sold treasury shares for cash during the review period - During the review period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities (including treasury shares)[101](index=101&type=chunk) - The Group did not issue any equity securities or sell treasury shares for cash during the review period (except for equity securities issued under share option schemes compliant with Chapter 17 of the Listing Rules)[101](index=101&type=chunk) [Review of Accounts](index=40&type=section&id=Review%20of%20Accounts) Deloitte Touche Tohmatsu, the independent auditor, reviewed the unaudited condensed consolidated interim financial information for H1 2025, adhering to HKSRE 2410 - The Company's independent auditor, Deloitte Touche Tohmatsu, has reviewed the unaudited condensed consolidated interim financial information for the six months ended June 30, 2025[102](index=102&type=chunk) - The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Hong Kong Institute of Certified Public Accountants[102](index=102&type=chunk) [Events After the Reporting Period](index=40&type=section&id=Events%20After%20the%20Reporting%20Period) No significant events requiring disclosure occurred after June 30, 2025 - There were no significant events after June 30, 2025, requiring disclosure by the Company[103](index=103&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=40&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) This interim results announcement is published on HKEX and the Company's website, with the full interim report to follow, containing all Listing Rules disclosures - This interim results announcement has been published on the HKEX website www.hkexnews.hk and the Company's website www.smooreholdings.com[104](index=104&type=chunk) - The interim report for the six months ended June 30, 2025, containing all information required to be disclosed by the Listing Rules, will be published on the HKEX and the Company's website in due course[104](index=104&type=chunk)

[Interim Performance Summary](index=1&type=section&id=Interim%20Performance%20Summary) [Financial Summary](index=1&type=section&id=Financial%20Summary) The company experienced significant other income growth but a substantial increase in loss and total comprehensive expense due to fair value losses on other financial liabilities, expanding loss per share Financial Performance Highlights (RMB thousands) | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Other income | 13,036 | 6,526 | 99.8 | | Net other gains and losses | (51,045) | 19,836 | (357.3) | | Administrative expenses | (19,643) | (23,048) | (14.8) | | Research and development expenses | (67,449) | (91,118) | (26.0) | | Finance costs | (3,350) | (3,851) | (13.0) | | Other expenses | (579) | (901) | (35.7) | | Loss before tax | (129,030) | (92,556) | 39.4 | | Loss and total comprehensive expense for the period | (129,032) | (92,556) | 39.4 | | Loss attributable to owners of the Company | (129,103) | (92,515) | 39.5 | | Basic and diluted loss per share | (0.25) | (0.18) | - | Financial Position Highlights (RMB thousands) | Metric | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current assets | 448,136 | 476,548 | (6.0) | | Current assets | 40,763 | 87,494 | (53.4) | | Current liabilities | (496,539) | (430,206) | 15.4 | | Net current liabilities | (455,776) | (342,712) | 33.0 | | Non-current liabilities | (137,845) | (150,289) | (8.3) | | Net liabilities | (145,485) | (16,453) | 784.2 | [Company Overview](index=2&type=section&id=Company%20Overview) [Overview](index=2&type=section&id=Overview) Yongtai Biological Pharmaceutical Co Ltd is a leading T-cell immunotherapy biopharmaceutical company in China, with nearly 18 years of R&D and commercialization experience - The company is a leading cell immunotherapy biopharmaceutical company in China, focusing on T-cell immunotherapy R&D and commercialization for nearly **18 years**[5](index=5&type=chunk) - The conditional NDA for the core pipeline product EAL® is currently under review by the CDE of NMPA[6](index=6&type=chunk) - The product pipeline covers non-genetically modified and genetically modified products, with key pipeline products including EAL®, 6B11, CAR-T cell series, and TCR-T cell series[6](index=6&type=chunk) [Management Discussion and Analysis](index=3&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=3&type=section&id=Business%20Review) The Group advanced multiple cell immunotherapy pipeline products' clinical trials, including EAL®'s NDA review, 6B11-OCIK Injection's Phase I completion, and CAR-T-19 Injection's Phase II enrollment and breakthrough therapy designation, while also developing R&D and production centers with stringent quality assurance - The conditional NDA for the core candidate product EAL® is under review by the CDE of NMPA and was included in China's priority review and approval list in March 2025[6](index=6&type=chunk)[11](index=11&type=chunk) - CAR-T-19 Injection completed Phase II clinical trial enrollment for **52 target patients** and received breakthrough therapy designation from the CDE, which will accelerate clinical development[14](index=14&type=chunk)[15](index=15&type=chunk) - The Group plans to build R&D and production centers in Beijing, Shaoxing, and Shanghai to support pipeline product clinical R&D and future commercialization needs, with an estimated annual production capacity exceeding **200,000 batches**[21](index=21&type=chunk)[22](index=22&type=chunk) [R&D of Pipeline Products](index=3&type=section&id=R%26D%20of%20Pipeline%20Products) The Group's pipeline covers non-genetically modified products (e.g., EAL®, 6B11) and genetically modified products (e.g., CAR-T, TCR-T series), targeting various solid tumors, hematological malignancies, and post-transplant infections, with several products in clinical trial stages Pipeline Products Overview | Product Category | Product Code | Therapeutic Area | Indication | Clinical Stage | | :--- | :--- | :--- | :--- | :--- | | Non-genetically modified products | EAL® | Solid tumors | Post-operative hepatocellular carcinoma, post-operative gastric cancer | NDA under review | | Non-genetically modified products | 6B11 | Platinum-resistant ovarian cancer (OC) | Platinum-resistant ovarian cancer (OC) | Phase I enrollment completed | | Genetically modified products | CAR-T-19 | Hematological malignancies | Relapsed/refractory B-cell acute lymphoblastic leukemia (r/r B-ALL) in patients under 25 | Phase II enrollment completed | | Genetically modified products | Dinolunsa Injection | Hematological malignancies | Relapsed or refractory diffuse large B-cell lymphoma | Phase I enrollment completed | | Genetically modified products | YT003 | Post-transplant infection | CMV infection after hematopoietic stem cell transplantation | Preclinical research | | Genetically modified products | YT007 | Solid tumors | Clear cell renal cell carcinoma (ccRCC) | Preclinical research largely completed | - The company cautions that its pipeline products, including core pipeline products, may not ultimately be successfully developed and commercialized[9](index=9&type=chunk) [EAL®](index=4&type=section&id=EAL%C2%AE) EAL®, a broad-spectrum anti-tumor cell immunotherapy product, has over a decade of clinical application experience in cancer treatment, completed Phase II enrollment for 430 patients, received CDE approval for conditional NDA submission, and was granted priority review in China, with NDA currently under review - EAL® is a broad-spectrum anti-tumor cell immunotherapy product with over **ten years** of clinical application experience in cancer treatment[10](index=10&type=chunk) - Enrollment for **430 target patients** in the Phase II clinical trial has been completed[11](index=11&type=chunk) - The CDE has approved the submission of EAL®'s conditional approval application, included it in China's priority review and approval list, and the NDA is currently under review[11](index=11&type=chunk) [6B11-OCIK Injection](index=4&type=section&id=6B11-OCIK%20Injection) 6B11-OCIK Injection, an autologous cytotoxic T lymphocyte injection for ovarian cancer, has completed Phase I enrollment for six target subjects, with preliminary analysis and interim results underway, and Phase II clinical trials planned for an opportune time - 6B11-OCIK Injection is an autologous cytotoxic T lymphocyte injection for ovarian cancer, utilizing 6B11 to induce specific anti-ovarian cancer immune responses[12](index=12&type=chunk) - Enrollment for **six target subjects** in the Phase I clinical trial has been completed, with preliminary analysis and interim results currently underway[12](index=12&type=chunk) - The Group plans to initiate Phase II clinical trials at an appropriate time based on business arrangements[12](index=12&type=chunk) [CAR-T Cell Product Pipeline](index=4&type=section&id=CAR-T%20Cell%20Product%20Pipeline) The CAR-T cell product pipeline, centered on the CAR-T-19 series, includes CAR-T-19 Injection, which received breakthrough therapy designation and completed Phase II enrollment for 52 patients, while Dinolunsa Injection and aT19 Injection aim to address CAR-T treatment durability and recurrence issues, with Dinolunsa completing Phase I enrollment and aT19 receiving Phase I IND approval - CAR-T-19 Injection is indicated for B-ALL patients under **25 years old** and has been granted breakthrough therapy designation by the CDE, which will accelerate its clinical development[14](index=14&type=chunk) - Enrollment for **52 target patients** in the CAR-T-19 Injection Phase II clinical trial has been completed[15](index=15&type=chunk) - Dinolunsa Injection and aT19 Injection aim to address the challenges of insufficient durability, suboptimal efficacy, and tumor recurrence in CAR-T cell therapy; Dinolunsa has received implied clinical approval and completed Phase I enrollment, while aT19 has received Phase I IND approval[16](index=16&type=chunk)[18](index=18&type=chunk) [TCR-T Cell Product Pipeline](index=6&type=section&id=TCR-T%20Cell%20Product%20Pipeline) The Group's TCR-T cell product pipeline focuses on tumor antigen-specific T cell adoptive immunotherapy, having established a single-cell sequencing platform, with multiple TCR-T pipeline products in preclinical research for clear cell renal cell carcinoma, CMV, and EBV infections, including TCR-T-CMV Injection completing preclinical communication and YT007 Injection largely completing preclinical research - TCR-T cell therapy is an immunotherapy based on tumor antigen-specific T cell adoptive transfer, and the Group has established a technology platform centered on single-cell sequencing[19](index=19&type=chunk) - Multiple TCR-T cell pipeline products are currently undergoing preclinical research, targeting clear cell renal cell carcinoma, CMV, and EBV viral infections[19](index=19&type=chunk) - TCR-T-CMV Injection for refractory CMV infection after hematopoietic stem cell transplantation completed preclinical communication in April 2025, and YT007 Injection for advanced clear cell renal cell carcinoma has largely completed preclinical research[19](index=19&type=chunk)[20](index=20&type=chunk) [Group Facilities](index=7&type=section&id=Group%20Facilities) The Group operates an R&D and production center in Beijing spanning approximately 27,604 square meters and plans to establish new R&D and production centers in North China (Beijing) and East China (Shaoxing, Shanghai) to expand EAL®'s distribution radius, accelerate clinical trials, and meet future commercialization needs, with a total estimated investment of RMB 2.2 billion - The Group's R&D and production center in Beijing, China, covers approximately **27,604 square meters**, supporting preclinical and clinical R&D, as well as early-stage production needs for pipeline products[21](index=21&type=chunk) - Plans include investing approximately **RMB 1.2 billion** in North China (Beijing) to build an R&D and industrialization base, with an estimated annual production capacity exceeding **200,000 batches**[21](index=21&type=chunk) - The Group plans to establish an EAL® R&D and production center in East China (Shaoxing, Shanghai), with an expected total investment of approximately **RMB 1 billion**, and construction of the Shaoxing production center has commenced[21](index=21&type=chunk)[22](index=22&type=chunk) [Quality Assurance](index=8&type=section&id=Quality%20Assurance) The Group has developed quality management documents in accordance with GMP standards, covering the entire production process to ensure product compliance with relevant laws, regulations, and GMP requirements, with EAL® production standardized and quality issues recorded for senior management review, supported by a 43-member quality department reporting directly to the CEO - The Group has developed quality management documents in accordance with GMP, covering production process procedures, product quality standards, equipment and facility operating procedures, to ensure full compliance with relevant laws, regulations, and GMP requirements[23](index=23&type=chunk) - EAL® production has been standardized, and comprehensive production process standards have been established to ensure consistent product quality[23](index=23&type=chunk) - The quality department comprises **43 employees** who report directly to the Chief Executive Officer, with two sub-teams for quality assurance and quality control[24](index=24&type=chunk) [Future and Outlook](index=8&type=section&id=Future%20and%20Outlook) The Group plans to accelerate EAL®'s commercialization, advance post-listing preparations, continue investing in preclinical research for CAR-T and TCR-T pipelines, enhance its technology platform to enrich the product pipeline, develop viral vector production and CDMO services, and expand strategic collaborations and explore M&A opportunities based on organic growth - Plans include fully advancing EAL®'s post-listing commercialization preparations, encompassing government affairs, hospital access, marketing, medical, and sales-related work[25](index=25&type=chunk) - The Group will continue to invest in preclinical research for CAR-T and TCR-T cell product pipelines, particularly for treating viral infections such as CMV[26](index=26&type=chunk) - The company is committed to enhancing its technology platform, establishing a TCR gene database targeting tumor neoantigens, and developing GMP-compliant viral vector production and CDMO services[27](index=27&type=chunk)[28](index=28&type=chunk) - Building on organic growth, the Group plans to expand strategic collaborations, seek sales, technology transfer, and strategic partnerships for existing and pipeline products, and explore M&A opportunities[29](index=29&type=chunk) [Financial Information](index=10&type=section&id=Financial%20Information) [Financial Review](index=10&type=section&id=Financial%20Review) For the six months ended June 30, 2025, the Group reported a loss before tax of RMB 129.0 million, a 39.4% increase year-on-year, driven by a 99.8% rise in other income due to government grants but offset by a swing from gain to loss in net other gains and losses due to fair value losses on financial liabilities, while administrative and R&D expenses decreased, finance costs reduced, and income tax expense remained minimal due to a 15% preferential tax rate for high-tech subsidiaries in China Financial Performance Summary (RMB thousands) | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Other income | 13,036 | 6,526 | 99.8 | | Net other gains and losses | (51,045) | 19,836 | (357.3) | | Administrative expenses | (19,643) | (23,048) | (14.8) | | Research and development expenses | (67,449) | (91,118) | (26.0) | | Finance costs | (3,350) | (3,851) | (13.0) | | Loss before tax | (129,030) | (92,556) | 39.4 | | Loss and total comprehensive expense for the period | (129,032) | (92,556) | 39.4 | - Other income increased by **99.8%** to **RMB 13.0 million**, primarily due to increased government grants for subscription funds incentives[32](index=32&type=chunk) - Net other gains and losses swung from a gain of **RMB 19.8 million** to a loss of **RMB 51.0 million**, mainly due to fair value losses on other financial liabilities[34](index=34&type=chunk) - Research and development expenses decreased by **26.0%** to **RMB 67.4 million**, primarily due to lower contract costs, staff costs, and R&D project material costs[36](index=36&type=chunk) - Beijing Yongtai and Yongtai Ruike, as high-tech enterprises, enjoyed a preferential corporate income tax rate of **15%** during the reporting period[41](index=41&type=chunk)[73](index=73&type=chunk) [Liquidity and Capital Resources](index=13&type=section&id=Liquidity%20and%20Capital%20Resources) The Group's bank balances and cash decreased from RMB 47.0 million at the end of 2024 to RMB 21.1 million as of June 30, 2025, primarily due to daily operating expenses, with lease liabilities of approximately RMB 111.7 million and no other significant outstanding debt or contingent liabilities, though convertible bonds are secured by asset and share mortgages - Bank balances and cash decreased from **RMB 47.0 million** as of December 31, 2024, to **RMB 21.1 million** as of June 30, 2025, primarily due to daily operating expenses[42](index=42&type=chunk) - As of June 30, 2025, lease liabilities were approximately **RMB 111.7 million**, secured by lease deposits and unsecured[43](index=43&type=chunk) - Convertible bonds are secured by land use rights, other pledged assets (including certain equipment and financial assets at fair value through profit or loss), and shares held by Tan Zheng Ltd and Tan Yue Yue Ltd[44](index=44&type=chunk) [Share Capital Structure](index=14&type=section&id=Share%20Capital%20Structure) The Company's shares were listed on the Main Board of the Stock Exchange on July 10, 2020, with 100,000,000 shares issued through a global offering; as of June 30, 2025, total issued share capital was USD 514,584, divided into 514,584,000 shares, reflecting a significant increase in net liabilities and a deteriorating debt-to-equity ratio - Shares were listed on the Main Board of the Stock Exchange on July 10, 2020, with **100,000,000 shares** issued through a global offering[46](index=46&type=chunk) - As of June 30, 2025, the Company's total issued share capital was **USD 514,584**, divided into **514,584,000 shares**[46](index=46&type=chunk) Debt-to-Equity Ratio | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Debt | 129.0% | 89.1% | | Equity | -29.0% | 10.9% | [Issuance of Convertible Bonds under Specific Mandate](index=14&type=section&id=Issuance%20of%20Convertible%20Bonds%20under%20Specific%20Mandate) In February 2023, the Company issued convertible bonds with a principal amount of RMB 300.0 million to Tasly for pipeline operations, R&D, and product commercialization; as of June 30, 2025, all proceeds were fully utilized, primarily for EAL® clinical trials and new R&D and production center construction, with the bonds transferred to an independent third party on July 15, 2025 - On February 20, 2023, the Company issued convertible bonds with a total principal amount of **RMB 300.0 million** to Tasly, with an initial conversion price of **RMB 4.38 per share**[47](index=47&type=chunk) - The issuance of convertible bonds aimed to raise funds for pipeline operations, R&D, and product commercialization, as well as to enhance working capital and financial position[48](index=48&type=chunk) Use of Proceeds from Convertible Bonds (RMB millions) | Use of Proceeds | Allocated Amount (RMB millions) | Amount Utilized as of June 30, 2025 (RMB millions) | | :--- | :--- | :--- | | EAL® clinical trials | 102.3 | 102.3 | | Construction costs for new R&D and production centers | 197.7 | 197.7 | | **Total** | **300.0** | **300.0** | - As of June 27, 2025, all preconditions for the transfer of the convertible bonds were met, and the transfer was completed on July 15, 2025[50](index=50&type=chunk) [Foreign Exchange](index=16&type=section&id=Foreign%20Exchange) The Group primarily operates in China, facing foreign exchange risk from Renminbi fluctuations against other currencies, mainly Hong Kong Dollars, and manages this risk by closely monitoring and minimizing net foreign exchange positions, without engaging in any currency hedging transactions during the reporting period - The Group primarily operates in China and faces foreign exchange risk arising from various currency exposures, mainly from Hong Kong Dollars[51](index=51&type=chunk) - The Group seeks to limit its foreign exchange risk exposure by closely monitoring and minimizing net foreign exchange positions[51](index=51&type=chunk) - During the reporting period, the Group did not enter into any currency hedging transactions[51](index=51&type=chunk) [Selected Financial Ratios](index=17&type=section&id=Selected%20Financial%20Ratios) The Group's current and quick ratios significantly decreased from the end of 2024 to June 30, 2025, primarily due to a reduction in financial assets at fair value through profit or loss and an increase in other financial liabilities, while the debt-to-asset ratio changed from zero at the end of 2024 to 0.14 as of June 30, 2025, reflecting increased liabilities Key Financial Ratios | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current Ratio | 0.08 | 0.20 | | Quick Ratio | 0.07 | 0.19 | | Debt-to-Asset Ratio | 0.14 | – | - The decrease in current and quick ratios was primarily due to a reduction in financial assets at fair value through profit or loss from **RMB 10.5 million** to zero, and an increase in other financial liabilities from **RMB 268.1 million** to **RMB 318.6 million**[54](index=54&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=18&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This section presents the condensed consolidated statement of profit or loss and other comprehensive income for the six months ended June 30, 2025, and the corresponding period in 2024, detailing the Group's revenue, various expenses, loss before tax, income tax expense, and total comprehensive expense for the period, disaggregated by owners of the Company and non-controlling interests - For the six months ended June 30, 2025, the loss for the period attributable to owners of the Company was **RMB 129,103 thousand**, an increase from **RMB 92,515 thousand** in the corresponding period of 2024[55](index=55&type=chunk) - Both basic and diluted loss per share were **RMB (0.25)**, higher than **RMB (0.18)** in the corresponding period of 2024[55](index=55&type=chunk) [Condensed Consolidated Statement of Financial Position](index=19&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This section provides the condensed consolidated statement of financial position as of June 30, 2025, and December 31, 2024, detailing the Group's non-current assets, current assets, current liabilities, non-current liabilities, net liabilities, and capital and reserves, reflecting a trend of deteriorating liquidity and increasing liabilities - As of June 30, 2025, the Group recorded net current liabilities of **RMB 455,776 thousand**, a significant increase from **RMB 342,712 thousand** as of December 31, 2024[56](index=56&type=chunk) - As of June 30, 2025, the Group's net liabilities were **RMB 145,485 thousand**, compared to **RMB 16,453 thousand** as of December 31, 2024, indicating a significant deterioration in its liability position[57](index=57&type=chunk) - The deficit attributable to owners of the Company significantly expanded to **RMB 142,399 thousand** as of June 30, 2025, from **RMB 13,296 thousand** as of December 31, 2024[57](index=57&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=21&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to the condensed consolidated financial statements, covering the company's general information, basis of preparation (including going concern assessment and related uncertainties), accounting policies, segment information, composition of various income and expenses, loss per share calculation, prepayments, financial assets, payables, government grants, other financial liabilities (convertible bonds), and specific disclosures on other borrowings - For the six months ended June 30, 2025, the Group incurred a loss of **RMB 129,032,000** and net cash outflows from operating activities of **RMB 45,169,000**, along with net current liabilities of **RMB 455,776,000** and net liabilities of **RMB 145,485,000**, raising significant doubts about its ability to continue as a going concern[61](index=61&type=chunk) - The company has formulated several plans to improve liquidity, including equity financing, convertible bond extension, additional financial support from shareholders, management payment schedules, bank borrowings, and government subsidies, but the success of these plans remains subject to significant uncertainties[61](index=61&type=chunk)[62](index=62&type=chunk)[65](index=65&type=chunk)[66](index=66&type=chunk) - The fair value of convertible bonds within other financial liabilities changed from **RMB 268,097 thousand** as of January 1, 2025, to **RMB 318,590 thousand** as of June 30, 2025, resulting in a fair value change loss of **RMB 50,493 thousand**[88](index=88&type=chunk) [General Information](index=21&type=section&id=General%20Information) Yongtai Biological Pharmaceutical Co Ltd, incorporated in the Cayman Islands, had its ordinary shares listed on the Main Board of the Stock Exchange of Hong Kong since July 10, 2020, with its principal business being investment holding and its subsidiaries primarily engaged in the R&D, manufacturing, and commercialization of cancer cell immunotherapy products in China, and the condensed consolidated financial statements are presented in Renminbi - The Company was incorporated in the Cayman Islands on April 11, 2018, and its ordinary shares have been listed on the Main Board of the Stock Exchange of Hong Kong since July 10, 2020[58](index=58&type=chunk) - The principal business is investment holding, with subsidiaries primarily engaged in the research and development, manufacturing, and commercialization of cancer cell immunotherapy products in China[58](index=58&type=chunk) [Basis of Preparation](index=21&type=section&id=Basis%20of%20Preparation) The condensed consolidated financial statements are prepared in accordance with IAS 34 and the Listing Rules, but the company faces significant going concern uncertainties due to losses, net operating cash outflows, net current liabilities, and net liabilities; while management has developed plans (e.g., equity financing, bond extension, shareholder support, payment management, bank borrowings, government subsidies) to improve liquidity, the success of these plans is highly uncertain, though directors deem the going concern assumption appropriate - The Group incurred a loss of **RMB 129,032,000** and net cash outflows from operating activities of **RMB 45,169,000** for the six months ended June 30, 2025[61](index=61&type=chunk) - As of that date, the Group had net current liabilities of **RMB 455,776,000**, net liabilities of **RMB 145,485,000**, and bank balances and cash of **RMB 21,053,000**, raising significant doubts about its ability to continue as a going concern[61](index=61&type=chunk) - The company has formulated several plans and measures to improve liquidity, including equity financing, convertible bond extension, additional financial support from shareholders, management payment schedules, bank borrowings, and government subsidies, but their success remains subject to significant uncertainties[61](index=61&type=chunk)[62](index=62&type=chunk)[65](index=65&type=chunk)[66](index=66&type=chunk) [Accounting Policies](index=22&type=section&id=Accounting%20Policies) The condensed consolidated financial statements are prepared on a historical cost basis, except for certain financial instruments measured at fair value, with accounting policies and calculation methods applied in this interim period consistent with the 2024 annual consolidated financial statements, and the application of IFRS amendments having no significant impact on financial position or performance - The condensed consolidated financial statements have been prepared on a historical cost basis, except for certain financial instruments measured at fair value at the end of the reporting period[64](index=64&type=chunk) - The accounting policies and methods of computation applied in this interim period are consistent with those presented in the Group's annual consolidated financial statements for the year ended December 31, 2024[64](index=64&type=chunk) - The application of amendments to IFRS accounting standards had no significant impact on the Group's financial position and performance during this period and prior periods[67](index=67&type=chunk) [Segment Information](index=23&type=section&id=Segment%20Information) The Group operates as a single operating and reportable segment, thus no further segment analysis is presented; all non-current assets are located in China, and no revenue was recorded during the reporting period - The Group has only one operating and reportable segment, and no further analysis of this single segment is presented[68](index=68&type=chunk) - The Group did not record any revenue for the six months ended June 30, 2025[69](index=69&type=chunk) - All of the Group's non-current assets (excluding financial instruments) are located in China, amounting to **RMB 445,028,000** as of June 30, 2025[69](index=69&type=chunk) [Other Income](index=23&type=section&id=Other%20Income) The Group's other income increased by **99.8%** from approximately RMB 6.5 million in the corresponding period of 2024 to RMB 13.0 million in 2025, primarily due to a significant increase in government grants for subscription funds incentives Other Income (RMB thousands) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Income from providing cell cryopreservation services | 365 | 355 | | Income from providing technical services | 610 | 832 | | Interest income from bank balances and deposits | 283 | 381 | | Interest income from lease deposits | 99 | 97 | | Rental income from leased land | – | 229 | | Government grants - subscription funds incentives | 6,770 | – | | Government grants - machinery | 4,691 | 4,128 | | Government grants - R&D activities | 46 | 428 | | Government grants - others | 172 | 76 | | **Total** | **13,036** | **6,526** | - Government grants for subscription funds incentives increased from zero in 2024 to **RMB 6,770 thousand** in 2025, being the primary reason for the growth in other income[70](index=70&type=chunk) [Net Other Gains and Losses](index=24&type=section&id=Net%20Other%20Gains%20and%20Losses) The Group recorded a net other loss of RMB 51.0 million for the six months ended June 30, 2025, a swing from a gain of RMB 19.8 million in the corresponding period of 2024, primarily due to fair value losses on other financial liabilities, with the 2024 period also including a loss on termination of an intangible asset and impairment loss on prepayments Net Other Gains and Losses (RMB thousands) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Fair value gains on financial assets at fair value through profit or loss | 65 | 3,323 | | Fair value (losses) gains on other financial liabilities | (50,493) | 41,048 | | Loss on termination of an intangible asset | – | (19,316) | | Impairment loss on prepayments to a supplier | – | (5,183) | | Exchange (losses) gains, net | (32) | 11 | | Gains (losses) on disposal of property, plant and equipment | 11 | (41) | | Others | (596) | (6) | | **Total** | **(51,045)** | **19,836** | - The fair value of other financial liabilities swung from a gain of **RMB 41,048 thousand** in 2024 to a loss of **RMB 50,493 thousand** in 2025, which was the main reason for the net loss[71](index=71&type=chunk) - The corresponding period in 2024 recorded a loss on termination of an intangible asset of **RMB 19,316 thousand** and an impairment loss on prepayments made to T-Cure of **RMB 5,183 thousand**[71](index=71&type=chunk) [Income Tax Expense](index=24&type=section&id=Income%20Tax%20Expense) The Group's income tax expense for the six months ended June 30, 2025, was RMB 2 thousand, with Chinese subsidiaries Beijing Yongtai and Yongtai Ruike benefiting from a 15% preferential corporate income tax rate as high-tech enterprises, while the Hong Kong subsidiary had no tax provision due to no estimated taxable profits; the Group holds substantial unused tax losses but has not recognized deferred tax assets due to unpredictable future profit streams Income Tax Expense (RMB thousands) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current China corporate income tax | 2 | – | - Beijing Yongtai and Yongtai Ruike, as high-tech enterprises, enjoy a reduced corporate income tax rate of **15%**[73](index=73&type=chunk) - As of June 30, 2025, the Group's estimated unused tax losses were approximately **RMB 2,051,015,000**, but no deferred tax assets were recognized[74](index=74&type=chunk) [Loss for the Period](index=25&type=section&id=Loss%20for%20the%20Period) This section details the composition of the loss for the period for the six months ended June 30, 2025, and the corresponding period in 2024, including staff costs, depreciation of property, plant and equipment, amortization of intangible assets, and raw materials and subcontracting costs included in R&D expenses Loss for the Period Components (RMB thousands) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Total staff costs | 25,996 | 36,641 | | Depreciation of property, plant and equipment | 27,638 | 29,067 | | Amortization of intangible assets | 1,273 | 1,311 | | Cost of raw materials and other consumables included in R&D expenses | 2,925 | 9,829 | | Subcontracting costs included in R&D expenses | 15,430 | 25,664 | - Total staff costs decreased from **RMB 36,641 thousand** in 2024 to **RMB 25,996 thousand** in 2025[75](index=75&type=chunk) - Costs of raw materials and other consumables, as well as subcontracting costs included in R&D expenses, both significantly decreased[75](index=75&type=chunk) [Dividends](index=25&type=section&id=Dividends) The Company's directors have decided not to declare any dividends for the interim period ended June 30, 2025 - No dividends were paid, declared, or proposed during the period[76](index=76&type=chunk) - The directors have decided not to pay any dividends for the interim period[76](index=76&type=chunk) [Loss Per Share](index=26&type=section&id=Loss%20Per%20Share) The calculation of basic and diluted loss per share attributable to owners of the Company is based on the loss for the period and the number of shares outstanding; no dilutive effect was included as the inclusion of share options and convertible bond conversions would result in a reduction in loss per share Loss Per Share (RMB thousands, except per share amount) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Loss for the period attributable to owners of the Company | (129,103) | (92,515) | | Number of shares (thousands) | 514,584 | 514,584 | | Basic and diluted loss per share (RMB) | (0.25) | (0.18) | - For the purpose of calculating diluted loss per share, the conversion of share options and unexercised convertible bonds was not included, as their inclusion would result in a reduction in loss per share[78](index=78&type=chunk) [Prepayments, Deposits and Other Receivables](index=26&type=section&id=Prepayments,%20Deposits%20and%20Other%20Receivables) The Group's total prepayments, deposits, and other receivables decreased from RMB 23,708 thousand as of December 31, 2024, to RMB 19,060 thousand as of June 30, 2025, primarily comprising prepayments to suppliers and service providers, recoverable VAT, and lease deposits Prepayments, Deposits and Other Receivables (RMB'000) | Item | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Prepayments to suppliers and service providers | 8,782 | 13,411 | | Recoverable VAT | 2,958 | 3,939 | | Prepayments for acquisition of property, plant and equipment | 1,035 | 1,029 | | Advances to employees | 1,539 | 706 | | Lease deposits | 3,474 | 3,375 | | Other deposits | 1,126 | 1,140 | | Others | 146 | 108 | | **Total** | **19,060** | **23,708** | - Prepayments to suppliers and service providers decreased from **RMB 13,411 thousand** to **RMB 8,782 thousand**[79](index=79&type=chunk) [Financial Assets at Fair Value Through Profit or Loss](index=27&type=section&id=Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) The Group's financial assets at fair value through profit or loss were zero as of June 30, 2025, a significant decrease from RMB 10,536 thousand as of December 31, 2024, mainly due to the write-off of investments in certificates of deposit and the fair value of investments in Tasly Fund and Shaoxing Fund approaching zero due to target companies ceasing clinical research or convertible bonds being overdue Financial Assets at Fair Value Through Profit or Loss (RMB'000) | Item | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Investment in Tasly Fund | – | – | | Investment in Shaoxing Fund | – | – | | Investment in certificates of deposit | – | 10,536 | | **Total** | **–** | **10,536** | - Investment in certificates of deposit was reduced to zero as of June 30, 2025, from **RMB 10,536 thousand** as of December 31, 2024[80](index=80&type=chunk) - The investment in Tasly Fund had its fair value approach zero due to the target company ceasing clinical research; the investment in Shaoxing Fund also had a fair value of zero due to overdue convertible bonds and the target company's poor financial condition[81](index=81&type=chunk)[82](index=82&type=chunk) [Trade and Other Payables](index=28&type=section&id=Trade%20and%20Other%20Payables) The Group's total trade and other payables decreased from RMB 131,925 thousand as of December 31, 2024, to RMB 126,205 thousand as of June 30, 2025, with trade payables increasing while payables for property, plant and equipment acquisition and accrued salaries and other allowances decreased Trade and Other Payables (RMB'000) | Item | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Trade payables | 40,354 | 33,609 | | Payables for acquisition of property, plant and equipment | 66,383 | 74,932 | | Accrued salaries and other allowances | 4,175 | 8,797 | | Payables for acquisition of intangible assets | 1,995 | 1,947 | | Payables for service expenses | 12,824 | 12,207 | | Others | 474 | 433 | | **Total** | **126,205** | **131,925** | - Trade payables increased from **RMB 33,609 thousand** to **RMB 40,354 thousand**, with trade payables aged over **3 years** amounting to **RMB 4,731 thousand**[83](index=83&type=chunk) - Payables for acquisition of property, plant and equipment decreased from **RMB 74,932 thousand** to **RMB 66,383 thousand**[83](index=83&type=chunk) [Deferred Government Grants](index=28&type=section&id=Deferred%20Government%20Grants) The Group's total deferred government grants decreased from RMB 60,507 thousand as of December 31, 2024, to RMB 55,770 thousand as of June 30, 2025, primarily due to the release of grants related to machinery and R&D activities Deferred Government Grants (RMB'000) | Item | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Current | – | 46 | | Non-current | 55,770 | 60,461 | | **Total** | **55,770** | **60,507** | Movement in Deferred Government Grants (RMB'000) | Item | Machinery (RMB'000) | R&D Activities (RMB'000) | Total (RMB'000) | | :--- | :--- | :--- | :--- | | As at January 1, 2025 | 60,461 | 46 | 60,507 | | Release of deferred government grants | (4,691) | (46) | (4,737) | | As at June 30, 2025 | 55,770 | – | 55,770 | [Other Financial Liabilities](index=29&type=section&id=Other%20Financial%20Liabilities) The Group's other financial liabilities primarily consist of convertible bonds, whose fair value increased from RMB 268,097 thousand as of January 1, 2025, to RMB 318,590 thousand as of June 30, 2025, resulting in a fair value change loss of RMB 50,493 thousand; these bonds are secured by assets and were transferred after the reporting period Other Financial Liabilities (RMB'000) | Item | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Convertible bonds | 318,590 | 268,097 | - The convertible bonds were issued in February 2023 with a principal of **RMB 300 million**, an annual interest rate of **6%**, maturing within **3 years**, and an initial conversion price of **RMB 4.38 per share**[87](index=87&type=chunk) - The convertible bonds are secured by certain property, plant and equipment, and financial assets at fair value through profit or loss of the Group, along with ordinary shares of the Company provided by Mr Tan Zheng and his close relatives[87](index=87&type=chunk) - The fair value of the convertible bonds was valued by an independent valuer using a binomial model, with a bond maturity of **0.64 years**, volatility of **97.27%**, and the Company's share price of **RMB 2.56** as of June 30, 2025[89](index=89&type=chunk) [Other Borrowings](index=30&type=section&id=Other%20Borrowings) The Group incurred new other borrowings of RMB 20,038 thousand during the reporting period, including RMB 10 million from Ms Wei, a family member of Mr Tan Zheng, and RMB 10 million from an indirect shareholder of Tasly; these loans bear interest at an annual rate of 4.5% and are due one year after their respective receipt dates or upon completion of equity financing, whichever is earlier Other Borrowings (RMB'000) | Item | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Other borrowings | 20,038 | – | - The Group borrowed **RMB 10 million** from Ms Wei, a family member of Mr Tan Zheng, on June 9, 2025, and **RMB 10 million** from an indirect shareholder of Tasly on June 20, 2025[92](index=92&type=chunk) - These loans bear interest at an annual rate of **4.5%** and are due one year after their respective receipt dates or upon the completion date of equity financing, whichever is earlier[92](index=92&type=chunk) [Other Information](index=31&type=section&id=Other%20Information) [Interim Dividends](index=31&type=section&id=Interim%20Dividends) The Company neither paid, declared, nor proposed any interim dividends during the reporting period - No dividends were paid, declared, or proposed during the reporting period[93](index=93&type=chunk) [Use of Net Proceeds from Listing and Over-allotment Option](index=31&type=section&id=Use%20of%20Net%20Proceeds%20from%20Listing%20and%20Over-allotment%20Option) The Company's net proceeds from the global offering and over-allotment option totaled approximately HKD 1,127.8 million, with approximately HKD 1,124.8 million utilized as of June 30, 2025, primarily for EAL® clinical trials and commercialization, CAR-T-19 and TCR-T series clinical trials, expanded EAL® R&D for other clinical indications, other pipeline product development, and working capital; the remaining proceeds are expected to be depleted by the end of 2025 - The net proceeds from the global offering and over-allotment option were approximately **HKD 1,127.8 million**[95](index=95&type=chunk) - As of June 30, 2025, the Company had utilized total proceeds of approximately **HKD 1,124.8 million**[95](index=95&type=chunk) Use of Net Proceeds (HKD millions) | Use of Proceeds | Allocation Percentage (%) | Amount Utilized as of June 30, 2025 (HKD millions) | | :--- | :--- | :--- | | Investment in EAL® clinical trials and commercialization | 34.2 | 385.6 | | R&D expenses for expanding EAL®'s other clinical indications | 18.9 | 212.5 | | Investment in CAR-T-19 and TCR-T series clinical trials | 33.2 | 374.5 | | Development of other pipeline products and construction of new R&D/production centers | 8.7 | 95.8 | | Working capital and other general corporate purposes | 5.0 | 56.4 | | **Total** | **100.0** | **1,124.8** | - The Company expects the net proceeds to be fully utilized by the end of 2025[97](index=97&type=chunk) [Material Investments, Acquisitions and Disposals](index=32&type=section&id=Material%20Investments,%20Acquisitions%20and%20Disposals) As of the date of this announcement, the Group held no material investments and had no future plans regarding material investments or capital assets - As of the date of this announcement, the Group held no material investments, nor did it have any future plans regarding material investments or capital assets[98](index=98&type=chunk) [Employees and Remuneration Policy](index=32&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had 173 employees in China, with total remuneration of approximately RMB 26.0 million, a decrease from the prior year; the company maintains an evaluation system for salary increases, bonuses, and promotions, provides training programs, and contributes to social insurance and housing provident funds for employees - As of June 30, 2025, the Group had **173 employees** in China[99](index=99&type=chunk) Employee Headcount by Function | Function | Number of Employees | | :--- | :--- | | General Management and Administration | 18 | | Research and Development | 13 | | Senior Management | 5 | | Production, Purification, Equipment, Safety and Supply Chain | 78 | | Quality | 43 | | Clinical Support and Business Development | 16 | | **Total** | **173** | - For the six months ended June 30, 2025, the Group's total employee remuneration was approximately **RMB 26.0 million**, a decrease from approximately **RMB 36.6 million** in the corresponding period of 2024[99](index=99&type=chunk) [Financing and Treasury Policy](index=33&type=section&id=Financing%20and%20Treasury%20Policy) The Group adopts a sound and conservative financing and treasury policy aimed at maintaining optimal financial health, minimizing financial costs, and mitigating risks, with cash and cash equivalents held in financial institutions with low credit risk, and financing needs regularly reviewed to support operations, R&D, and future expansion - The Group adopts a stable and conservative financing and treasury policy, aiming to maintain an optimal financial position, the most economical finance costs, and the lowest financial risks[103](index=103&type=chunk) - Cash and cash equivalents are typically held in financial institutions that the Group considers to have low credit risk[103](index=103&type=chunk) - The Group regularly reviews its financing needs to maintain sufficient financial resources to support its business operations and R&D, future investments, and expansion plans[103](index=103&type=chunk) [Share Option Schemes](index=33&type=section&id=Share%20Option%20Schemes) The Company has both a Pre-IPO Share Option Scheme and a Post-IPO Share Option Scheme to reward and incentivize participants; as of June 30, 2025, 35,930,000 share options remained unexercised under the Pre-IPO scheme, representing approximately 6.98% of total issued shares, while no options have been granted under the Post-IPO scheme since its adoption - The Company adopted the Pre-IPO Share Option Scheme on December 31, 2019, and the Post-IPO Share Option Scheme on June 6, 2020[104](index=104&type=chunk) - As of June 30, 2025, **35,930,000 share options** remained unexercised under the Pre-IPO Share Option Scheme, representing approximately **6.98%** of the total issued shares[105](index=105&type=chunk)[109](index=109&type=chunk) - No share options have been granted, exercised, cancelled, or lapsed under the Post-IPO Share Option Scheme from the listing date up to the date of this announcement[110](index=110&type=chunk) [Pre-IPO Share Option Scheme](index=34&type=section&id=Pre-IPO%20Share%20Option%20Scheme) As of June 30, 2025, 35,930,000 share options remained unexercised under the Pre-IPO Share Option Scheme, primarily granted to Mr Tan Zheng (Chairman and Executive Director), Ms Wang Yu (resigned Executive Director), and other employees, with an exercise price of HKD 5.5 per share Unexercised Share Options under Pre-IPO Scheme | Name of Grantee | Number of Unexercised Share Options as at June 30, 2025 | | :--- | :--- | | Tan Zheng (Chairman and Executive Director) | 5,000,000 | | Wang Yu (Executive Director, CEO and CTO, resigned) | 23,450,000 | | Employees (Total) | 7,480,000 | | **Total** | **35,930,000** | - All unexercised share options were granted on December 31, 2019, with an exercise period from December 31, 2019, to December 30, 2026, and an exercise price of **HKD 5.5 per share**[107](index=107&type=chunk) [Post-IPO Share Option Scheme](index=35&type=section&id=Post-IPO%20Share%20Option%20Scheme) The Post-IPO Share Option Scheme became effective from its adoption date for a maximum period of 10 years, and as of the date of this announcement, no share options have been granted, exercised, cancelled, or lapsed under this scheme - The Post-IPO Share Option Scheme became effective from its adoption date for a maximum period of **10 years**[110](index=110&type=chunk) - No share options have been granted, exercised, cancelled, or lapsed under the Post-IPO Share Option Scheme from the listing date up to the date of this announcement[110](index=110&type=chunk) [Compliance with Corporate Governance Code](index=36&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The Group is committed to maintaining high standards of corporate governance and has adopted the Corporate Governance Code set out in Appendix C1 of the Listing Rules; the Board believes the Company has complied with all applicable code provisions throughout the six months ended June 30, 2025 - The Group is committed to maintaining a high level of corporate governance and has adopted the Corporate Governance Code set out in Appendix C1 of the Listing Rules[112](index=112&type=chunk) - The Board believes that the Company has complied with all applicable code provisions of the Corporate Governance Code throughout the six months ended June 30, 2025[112](index=112&type=chunk) [Compliance with Model Code for Securities Transactions](index=36&type=section&id=Compliance%20with%20Model%20Code%20for%20Securities%20Transactions) The Company has adopted the Model Code set out in Appendix C3 of the Listing Rules to regulate securities transactions by directors and relevant employees; all directors confirmed compliance with the Model Code during the reporting period, and the company is unaware of any breaches by relevant employees - The Company has adopted the Model Code set out in Appendix C3 of the Listing Rules to regulate all transactions in the Company's securities by directors and relevant employees[113](index=113&type=chunk) - All directors have confirmed their compliance with the applicable standards set out in the Model Code for the six months ended June 30, 2025[113](index=113&type=chunk) [Directors' Interests in Contracts](index=36&type=section&id=Directors'%20Interests%20in%20Contracts) During the reporting period and up to the date of this announcement, no director held any direct or indirect material interest in any contract entered into by the Company, its subsidiaries, or fellow subsidiaries that was significant to the Group's business - During the reporting period and up to the date of this announcement, no director held any direct or indirect material interest in any contract entered into by the Company, its subsidiaries, or fellow subsidiaries that was significant to the Group's business[114](index=114&type=chunk) [Purchase, Sale and Redemption of Listed Securities](index=36&type=section&id=Purchase,%20Sale%20and%20Redemption%20of%20Listed%20Securities) As of June 30, 2025, the Company held no treasury shares, and neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's shares during the reporting period - As of June 30, 2025, the Company held no treasury shares[115](index=115&type=chunk) - 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 shares[115](index=115&type=chunk) [Audit Committee and Review of Financial Report](index=36&type=section&id=Audit%20Committee%20and%20Review%20of%20Financial%20Report) The Company's Audit Committee reviewed the unaudited consolidated interim results for the six months ended June 30, 2025, confirming compliance with applicable accounting principles and adequate disclosure; the interim results were reviewed by the auditor in accordance with Hong Kong Standard on Review Engagements 2410 - The Audit Committee comprises three members, including two independent non-executive directors (Mr Wu Zhijie as Chairman) and one non-executive director[116](index=116&type=chunk) - The Audit Committee reviewed the Company's unaudited consolidated interim results for the six months ended June 30, 2025, and confirmed compliance with applicable accounting principles, standards, and requirements, as well as adequate disclosure[117](index=117&type=chunk) - The interim results for the six months ended June 30, 2025, are unaudited but have been reviewed by the auditor in accordance with Hong Kong Standard on Review Engagements 2410[117](index=117&type=chunk) [Review Report on Condensed Consolidated Financial Statements](index=37&type=section&id=Review%20Report%20on%20Condensed%20Consolidated%20Financial%20Statements) The independent auditor issued a disclaimer of conclusion on the Group's condensed consolidated financial statements for the six months ended June 30, 2025, primarily due to significant going concern uncertainties and the auditor's inability to obtain sufficient appropriate evidence to evaluate management's material assumptions in cash flow forecasts and the success probability of the company's liquidity improvement plans - The independent auditor issued a disclaimer of conclusion on the condensed consolidated financial statements[123](index=123&type=chunk) - The basis for the disclaimer of conclusion is the significant uncertainty regarding the Group's ability to continue as a going concern, including losses for the period, net cash outflows from operating activities, net current liabilities, and net liabilities[118](index=118&type=chunk) - The auditor was unable to obtain sufficient appropriate evidence to evaluate the relevant material assumptions and estimates in management's cash flow forecasts, as well as the probability of success of the Group's plans and measures (such as equity financing, bond extension, shareholder support, etc)[119](index=119&type=chunk)[120](index=120&type=chunk) [Changes in Directors](index=38&type=section&id=Changes%20in%20Directors) During the reporting period, the Company's Board of Directors underwent several changes, including the appointments of Ms Yu Xiaohui, Mr Yang Xin, and Mr Liu Rui as non-executive directors, and Mr Zhang Guoguang as an independent non-executive director; concurrently, Mr Tao Ran resigned as a non-executive director, and Dr Wang Yu resigned as an executive director, CEO, and CTO - Ms Yu Xiaohui was appointed as a non-executive director and a member of the Audit Committee, effective April 25, 2025[124](index=124&type=chunk) - Dr Wang Yu resigned as an executive director and the Group's Chief Executive Officer and Chief Technology Officer, effective June 25, 2025[124](index=124&type=chunk) - Mr Yang Xin and Mr Liu Rui were appointed as non-executive directors, and Mr Zhang Guoguang was appointed as an independent non-executive director, all effective June 26, 2025[124](index=124&type=chunk) [Changes in Directors' Information](index=39&type=section&id=Changes%20in%20Directors'%20Information) Except for the disclosed changes in directors, no changes in directors' biographical details requiring disclosure under Rule 13.51B(1) of the Listing Rules occurred from the publication date of the Group's 2024 annual report up to August 20, 2025 - Except as disclosed, no changes in directors' biographical details requiring disclosure under Rule 13.51B(1) of the Listing Rules occurred from the publication date of the Group's 2024 annual report up to August 20, 2025[126](index=126&type=chunk) [Directors' Rights to Acquire Shares or Debentures](index=39&type=section&id=Directors'%20Rights%20to%20Acquire%20Shares%20or%20Debentures) Excluding the share option schemes, neither the Company nor its subsidiaries entered into any arrangements during or at the end of the reporting period that would enable directors to benefit from acquiring shares or debentures of the Company or any other body corporate, and no director, their spouse, or children under 18 were granted or exercised any rights to subscribe for equity or debt securities of the Company or any other body corporate - Except for the Pre-IPO Share Option Scheme and the Post-IPO Share Option Scheme, neither the Company nor its subsidiaries entered into any arrangements during or at the end of the reporting period that would enable directors to benefit from acquiring shares or debentures of the Company or any other body corporate[127](index=127&type=chunk) - No director, their spouse, or children under **18 years old** were granted any rights to subscribe for equity or debt securities of the Company or any other body corporate, nor had they exercised any such rights[127](index=127&type=chunk) [Publication of Interim Results and 2025 Interim Report](index=39&type=section&id=Publication%20of%20Interim%20Results%20and%202025%20Interim%20Report) This interim results announcement has been published on the Stock Exchange and the Company's websites, and the Company's interim report for the six months ended June 30, 2025, will be made available to shareholders and published in due course; the company encourages shareholders to view company communications online for environmental support - This interim results announcement is published on the Stock Exchange website (www.hkexnews.hk) and the Company's website (www.eaal.net)[128](index=128&type=chunk) - The Company's interim report for the six months ended June 30, 2025, will be made available to shareholders and published on the Stock Exchange and the Company's websites, respectively, in due course[128](index=128&type=chunk) - The Company encourages shareholders to view the Company's corporate communications via the Stock Exchange and the Company's websites instead of receiving printed copies[129](index=129&type=chunk) [Events After Reporting Period](index=39&type=section&id=Events%20After%20Reporting%20Period) Except as disclosed, to the best of the Company's knowledge, no significant events affecting the Group have occurred after the end of the reporting period up to the date of this announcement - Except as disclosed, to the best of the Company's knowledge, no significant events affecting the Group have occurred after the end of the reporting period up to the date of this announcement[130](index=130&type=chunk) [Definitions and Glossary of Technical Terms](index=40&type=section&id=Definitions%20and%20Glossary%20of%20Technical%20Terms) [Glossary](index=40&type=section&id=Glossary) This section defines key terms and technical vocabulary used in the report, covering product codes (e.g., 6B11, EAL®), company entities (e.g., Beijing Yongtai, Yongtai Ruike), therapeutic technologies (e.g., CAR-T cells, TCR-T cells), regulatory bodies (e.g., CDE), and financial and legal terms, to aid reader comprehension - Provides key product codes used in the report, such as "6B11" referring to ovarian cancer-related antibodies, and "EAL®" referring to the core multi-target cell immunotherapy pipeline product[5](index=5&type=chunk)[131](index=131&type=chunk)[132](index=132&type=chunk) - Explains cell immunotherapy-related technical terms, such as "CAR-T cell" referring to Chimeric Antigen Receptor T-cell, and "TCR" referring to T-cell receptor[131](index=131&type=chunk)[132](index=132&type=chunk)[135](index=135&type=chunk)[136](index=136&type=chunk) - Defines regulatory and financial terms, such as "CDE" referring to the Center for Drug Evaluation of the NMPA, "GMP" referring to Good Manufacturing Practice, and "Convertible Bonds" referring to the secured convertible bonds issued by the Company[131](index=131&type=chunk)[133](index=133&type=chunk)[136](index=136&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何 部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 CAPITAL ENVIRONMENT HOLDINGS LIMITED 首創環境控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：03989） 截至2025年6月30日止六個月的未經審核中期業績公告 首創環境控股有限公司（「本公司」）董事會（「董事會」）欣然宣佈本公司及其附 屬公司（「本集團」）於截至2025年6月30日止六個月的未經審核中期合併業績連同 2024年相應期間之比較數字如下： 中期簡明合併損益表 截至2025年6月30日止六個月 | | | 2025年 | 2024年 | | --- | --- | --- | --- | | | 附註 | 人民幣千元 | 人民幣千元 | | | | 未經審核 | 未經審核 | | 收益 | 5 | 1,875,929 | 1,786,721 | | 銷售成本 | | (1,169,922) | (1,136,244) | | 毛利 | | 70 ...

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 對 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。 ALLEGRO CULTURE LIMITED 律齊文化有限公司 （於開曼群島註冊成立並於百慕達繼續經營之有限公司） （股份代號：550） (1)截 至 二 零 二 五 年 六 月 三 十 日 止 六 個 月 中 期 業 績 公 佈； 及 (2)繼續暫停買賣 財務摘要 董 事 會 議 決 不 宣 派 截 至 二 零 二 五 年 六 月 三 十 日 止 六 個 月 的 任 何 中 期 股 息。 – 1 – • 截至二零二五年六月三十日止六個月的收益約為21.8百 萬 港 元，較 二 零 二四年同期增加57.6%。 • 截至二零二五年六月三十日止六個月的毛利約為6.3百 萬 港 元，較 二 零 二四年同期減少41.7%。截 至 二 零 二 五 年 六 月 三 十 日 止 六 個 月 的 毛 利 率 約 為29.1%。 • 截至二零二五年六月三十日止六個 ...