香 港 交 易 及 結 算 所 有 限 公 司 及 香 港 聯 合 交 易 所 有 限 公 司 對 本 公 告 之 內 容 概 不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 就 因 本 公 告 全 部 或 任 何 部 份 內 容 而 產 生 或 因 倚 賴 該 等 內 容 而 引 致 之 任 何 損 失 承 擔 任 何 責 任。 泰昇集團控股有限公司 （於 百 慕 達 註 冊 成 立 之 有 限 公 司） （股 份 代 號：687） 截至二零二五年六月三十日止六個月之 中期業績 泰昇集團控股有限公司（「本 公 司」）董 事（「董 事」）局（「董 事 局」）欣然公佈本公司 及其附屬公司（「本 集 團」）截至二零二五年六月三十日止六個月之未經審核綜合 業 績。於 回 顧 期 內，本 集 團 錄 得 營 業 額11.50億港元（截 至 二 零 二 四 年 六 月 三 十 日 止 期 間：10.09億 港 元）及本公司普通股股東應佔溢利約為3,400萬港元（截 至 二 零 二 四 年 六 月 三 十 日 止 期 間：溢 利1,100萬 港 元），相 當 於 ...

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，概不對因本公佈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。 截至 2025 年 6 月 30 日止 六個月之中期業績公佈 新鴻基有限公司（「本公司」或「新鴻基公司」）之董事會（「董事會」或「董事」）欣 然公佈本公司及其附屬公司（「本集團」）截至 2025 年 6 月 30 日止六個月之未經審 核簡明綜合業績如下： 簡明綜合損益賬 | | | 截止至六個月 | | | --- | --- | --- | --- | | | | 30/6/2025 | 30/6/2024 | | | | 未經審核 | 未經審核 | | | 附註 | 百萬港元 | 百萬港元 | | 利息收益 | | 1,715.8 | 1,817.7 | | 其他收入 | 4 | 87.4 | 59.8 | | 總收入 | | 1,803.2 | 1,877.5 | | 投資收益淨額 | 5 | 974.1 | 50.6 | | 其他收益 | 6 | 22.6 | 23.4 | | 總收益 | | ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容 而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 麗 珠 醫 藥 集 團 股 份 有 限 公 司 LIVZON PHARMACEUTICAL GROUP INC.* （ 於 中 華 人 民 共 和 國 註 冊 成 立 的 股 份 有 限 公 司 ） （股份代號：1513） 截至2025年6月30日止六個月的未經審計中期業績公告 麗珠醫藥集團股份有限公司Livzon Pharmaceutical Group Inc.*（「本公司」，連同其附屬公 司統稱為「本集團」）董事會（「董事會」）謹此宣佈本集團截至2025年6月30日止六個月的未 經審計中期業績。本業績公告列載本公司2025年中期報告全文，並符合《香港聯合交易所 有限公司證券上市規則》中有關中期業績初步公告附載的資料之要求。 本業績公告的中英文版本可在本公司網站(www.livzon.com.cn)和香港交易及結算所有限公 司（「香港交易所」）網站(www.hkexnews.hk)查閱。 2025年 ...

龍資源有限公司*（「本公司」或「龍資源」）董 事 會（「董事會」）謹 此 公 佈 本 公 司 及 其 附 屬 公 司（統 稱 為「本集團」）截 至2025年6月30日 止 期 間 的 綜 合 中 期 業 績，連 同 截 至2024年6月30日止相應期間的比較數字如下： – 1 – 龍資源有限公司 （股份代號：1712） 中期業績公告 截 至2025年6月30日 止6個 月 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。 綜合中期損益表 綜合中期其他全面收益表 截 至2025年6月30日 止6個 月 | 截 | 至2025年 | 截 | 至2024年 | 6月30日 | 6月30日 | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 止6個 | 月 | 止6個 | 月 | 千澳元 | 千澳元 | | | | | ...

[Announcement Overview](index=1&type=section&id=Announcement%20Overview) This announcement clarifies a clerical error in the 2025 interim results announcement by Miramar Hotel and Investment Company, Limited, with all other information remaining unchanged [Company and Announcement Background](index=1&type=section&id=Company%20and%20Announcement%20Background) This announcement by Miramar Hotel and Investment Company, Limited clarifies a clerical error in its 2025 interim results announcement, emphasizing that all other information remains unchanged - Company Name: Miramar Hotel and Investment Company, Limited [2](index=2&type=chunk)[3](index=3&type=chunk) - Stock Code: **71** [3](index=3&type=chunk) - Announcement Purpose: To clarify the 2025 interim results announcement [3](index=3&type=chunk)[4](index=4&type=chunk) - Original Announcement Date: August 19, 2025 [4](index=4&type=chunk) - Announcement Nature: A supplement to the English version of the 2025 interim results announcement, to be read in conjunction with it [4](index=4&type=chunk) [Clarification of Interim Dividend Payment Date](index=1&type=section&id=Clarification%20of%20Interim%20Dividend%20Payment%20Date) This section clarifies a clerical error regarding the interim dividend payment date in the 2025 interim results announcement, correcting it to October 14, 2025 [Error Details and Correction](index=1&type=section&id=Error%20Details%20and%20Correction) The company clarifies an unintentional clerical error on page 24 of the English version of the 2025 interim results announcement regarding the interim dividend payment date, now corrected to October 14, 2025 - Error Nature: An unintentional clerical error on page 24 of the English version of the 2025 interim results announcement [4](index=4&type=chunk) - Error Content: Pertaining to the interim dividend payment date [4](index=4&type=chunk) Correction of Interim Dividend Related Dates | Item | Date | | :--- | :--- | | Dividend Payment Date | October 14, 2025 (Tuesday) | | Register of Members Closing Date | September 26, 2025 (Friday) at close of business | | Share Transfer Registration Deadline | September 26, 2025 (Friday) | | Share Transfer Document Submission Deadline | September 25, 2025 (Thursday) at 4:30 p.m. | - Impact: All other information contained in the 2025 interim results announcement remains unchanged, except for the clarification above [4](index=4&type=chunk) [Board of Directors Information](index=1&type=section&id=Board%20of%20Directors%20Information) This section lists the composition of the Board of Directors of Miramar Hotel and Investment Company, Limited at the time of the announcement [Board Composition](index=1&type=section&id=Board%20Composition) At the time of this announcement, the Board of Directors of Miramar Hotel and Investment Company, Limited comprises executive, non-executive, and independent non-executive directors, signed by Company Secretary Lai Ho Man - Announcement Date: August 20, 2025 [5](index=5&type=chunk) - Company Secretary: Lai Ho Man [5](index=5&type=chunk) - Executive Directors: Dr. Lee Ka Shing, Dr. Lam Ko Yin, Mr. Tang Yat Sun, Mr. Ho Hou Chiang [5](index=5&type=chunk) - Non-executive Directors: Dr. Fung Yuk Bun, Mr. Cheng Ka On [5](index=5&type=chunk) - Independent Non-executive Directors: Dr. Chung Wai Ming, Mr. Yeung Ping Leung, Mr. Leung Cheung Biu, Mr. Woo King Cheong, Mr. Au Siu Kee, Mr. Sin Nga Yan, Ms. Wong Yeung Fong [5](index=5&type=chunk)

[Financial Summary](index=1&type=section&id=Financial%20Summary) The company experienced a significant revenue decline but achieved substantial profit growth, driven by improved gross margin and foreign exchange gains Financial Summary for the Six Months Ended June 30 | Metric | 2025 (RMB in thousands) | 2024 (RMB in thousands) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 314,314 | 580,361 | -45.8 | | Gross Margin | 20.5% | 16.4% | 410bps | | Profit for the Period | 26,033 | 499 | 5,117.0 | | Profit/(Loss) Attributable to Shareholders | 26,308 | (2,504) | 1,150.6 | [Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, revenue significantly decreased by 45.8%, yet profit for the period and attributable profit grew substantially due to foreign exchange gains and improved gross margin Consolidated Statement of Profit or Loss Summary (For the Six Months Ended June 30) | Metric | 2025 (RMB in thousands) | 2024 (RMB in thousands) | | :--- | :--- | :--- | | Revenue | 314,314 | 580,361 | | Cost of Sales | (249,803) | (484,998) | | Gross Profit | 64,511 | 95,363 | | Other Income | 32,385 | 33,322 | | Net Other Gains/(Losses) | 54,219 | (25,686) | | Operating Profit/(Loss) | 31,773 | (17,220) | | Profit Before Tax | 27,404 | 6,575 | | Profit for the Period | 26,033 | 499 | | Profit/(Loss) Attributable to Owners of the Company | 26,308 | (2,504) | | Basic Earnings/(Loss) Per Share | RMB 0.006 | RMB (0.001) | Other Comprehensive Income Summary (For the Six Months Ended June 30) | Item | 2025 (RMB in thousands) | 2024 (RMB in thousands) | | :--- | :--- | :--- | | Profit for the Period | 26,033 | 499 | | Exchange differences arising from translation of financial statements of overseas subsidiaries | (38,887) | 31,039 | | Exchange differences arising from translation of equity investments measured at fair value through other comprehensive income | (11,086) | 9,439 | | Total comprehensive income for the period | (74,673) | 73,217 | | Total comprehensive income attributable to owners of the Company | (74,411) | 70,218 | [Consolidated Statement of Financial Position](index=4&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets and net current assets slightly decreased, while cash and cash equivalents increased, and non-current assets saw minor reductions Consolidated Statement of Financial Position Summary (As at Period End) | Metric | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Investment properties | 255,466 | 259,110 | | Property, plant and equipment | 528,798 | 538,212 | | Interests in associates | 155,343 | 161,164 | | Other investments | 374,554 | 402,240 | | **Current Assets** | | | | Inventories | 141,496 | 175,432 | | Trade and other receivables | 531,731 | 616,205 | | Bank deposits | 100,876 | 329,600 | | Cash and cash equivalents | 1,195,507 | 937,036 | | **Current Liabilities** | | | | Trade and other payables and contract liabilities | 129,718 | 168,777 | | Bank borrowings | 36,054 | 45,953 | | **Non-current Liabilities** | | | | Bank borrowings | 12,812 | 12,050 | | **Net Assets** | | | | Total equity | 3,204,832 | 3,279,504 | [Condensed Consolidated Statement of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, operating cash flow turned positive, investing cash flow significantly increased due to decreased bank deposits, and financing cash outflow rose Condensed Consolidated Statement of Cash Flows Summary (For the Six Months Ended June 30) | Metric | 2025 (RMB in thousands) | 2024 (RMB in thousands) | | :--- | :--- | :--- | | Net cash from/(used in) operating activities | 90,995 | (80,420) | | Net cash from investing activities | 245,870 | 108,029 | | Net cash (used in)/from financing activities | (16,517) | 801 | | Net increase in cash and cash equivalents | 320,348 | 28,410 | | Cash and cash equivalents at June 30 | 1,195,507 | 1,060,434 | [Notes to the Unaudited Interim Financial Report](index=7&type=section&id=Notes%20to%20the%20Unaudited%20Interim%20Financial%20Report) [1. Basis of Preparation](index=7&type=section&id=1.%20Basis%20of%20Preparation) This interim financial report is prepared under HKEX Listing Rules and HKAS 34, reviewed by the audit committee, with accounting policies consistent with 2024 annual financial statements, except for expected changes - The report is prepared in accordance with the HKEX Listing Rules and HKAS 34 issued by the HKICPA, and has been reviewed by the audit committee[11](index=11&type=chunk) - Accounting policies are consistent with those adopted in the 2024 annual financial statements, except for expected changes to be reflected in the 2025 annual financial statements[11](index=11&type=chunk) [2. Changes in Accounting Policies](index=7&type=section&id=2.%20Changes%20in%20Accounting%20Policies) HKFRS revisions effective this period have no material impact on the group's results or financial position, and no new standards not yet effective have been adopted - Certain amendments issued by the HKICPA have no material impact on the group's results or financial position for the current or prior accounting periods[13](index=13&type=chunk) - The group has not early adopted any new standards or interpretations that are not yet effective for the current accounting period[14](index=14&type=chunk) [3. Segment Reporting](index=7&type=section&id=3.%20Segment%20Reporting) The group operates in high-end consumer support and commodity trading segments, both managed by region and product line, experiencing declines in revenue and gross profit, with commodity trading seeing a significant drop - The group's business is divided into two reportable segments: "High-end Consumer Support" and "Commodity Trading," managed by geographical area and product/service lines[15](index=15&type=chunk)[18](index=18&type=chunk) Reportable Segment Revenue and Gross Profit (For the Six Months Ended June 30) | Metric | 2025 (RMB in thousands) | 2024 (RMB in thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | **Revenue from external customers** | | | | | High-end Consumer Support | 248,095 | 352,339 | -29.6% | | Commodity Trading | 66,219 | 228,022 | -71.0% | | **Reportable segment gross profit** | | | | | High-end Consumer Support | 55,343 | 68,915 | -19.7% | | Commodity Trading | 9,168 | 26,448 | -65.3% | | **Reportable segment assets (As at period end)** | | | | | High-end Consumer Support | 62,042 | 69,420 | -10.6% | | Commodity Trading | 79,454 | 106,012 | -25.1% | Reconciliation of Consolidated Profit or Loss (For the Six Months Ended June 30) | Metric | 2025 (RMB in thousands) | 2024 (RMB in thousands) | | :--- | :--- | :--- | | Total reportable segment revenue | 369,549 | 668,033 | | Elimination of inter-segment revenue | (55,235) | (87,672) | | Consolidated revenue | 314,314 | 580,361 | | Total reportable segment gross profit | 64,511 | 95,363 | | Consolidated profit before tax | 27,404 | 6,575 | [4. Other Income and Net Other Gains/(Losses)](index=10&type=section&id=4.%20Other%20Income%20and%20Net%20Other%20Gains%2F(Losses)) Other income slightly decreased, but net other gains shifted from a loss to a significant gain, primarily due to foreign exchange and fair value gains on financial assets held for trading Other Income (For the Six Months Ended June 30) | Item | 2025 (RMB in thousands) | 2024 (RMB in thousands) | | :--- | :--- | :--- | | Interest income | 18,918 | 20,690 | | Rental income | 1,071 | 1,441 | | Government grants | 1,931 | 552 | | Dividend income from other investments | 8,876 | 3,955 | | Others | 1,589 | 6,684 | | **Total** | **32,385** | **33,322** | Net Other Gains/(Losses) (For the Six Months Ended June 30) | Item | 2025 (RMB in thousands) | 2024 (RMB in thousands) | | :--- | :--- | :--- | | Net foreign exchange gains/(losses) | 45,420 | (26,269) | | Net loss on disposal of property, plant and equipment | (88) | (26) | | Net gain on disposal of a subsidiary | 1 | – | | Fair value gains on financial assets held for trading | 8,886 | 609 | | **Total** | **54,219** | **(25,686)** | [5. Profit Before Tax](index=11&type=section&id=5.%20Profit%20Before%20Tax) Profit before tax significantly increased, accompanied by a decrease in finance costs and depreciation expenses Finance Costs (For the Six Months Ended June 30) | Item | 2025 (RMB in thousands) | 2024 (RMB in thousands) | | :--- | :--- | :--- | | Interest on bank borrowings | 947 | 2,036 | | Interest on lease liabilities | 386 | 327 | | Bank charges | 173 | 356 | | **Total** | **1,506** | **2,719** | Other Items (For the Six Months Ended June 30) | Item | 2025 (RMB in thousands) | 2024 (RMB in thousands) | | :--- | :--- | :--- | | Amortisation | 441 | 257 | | Depreciation – investment properties and property, plant and equipment | 21,322 | 28,177 | | Depreciation – right-of-use assets | 4,872 | 4,638 | | Expenses relating to short-term leases and leases of low-value assets | 1,273 | 1,012 | [6. Income Tax Expense](index=12&type=section&id=6.%20Income%20Tax%20Expense) Income tax expense significantly decreased year-on-year, primarily due to reductions in PRC income tax and deferred tax Income Tax Expense (For the Six Months Ended June 30) | Item | 2025 (RMB in thousands) | 2024 (RMB in thousands) | | :--- | :--- | :--- | | Current tax | | | | Hong Kong Profits Tax | – | 26 | | PRC Enterprise Income Tax | 1,131 | 3,674 | | Deferred tax | 240 | 2,376 | | **Total** | **1,371** | **6,076** | - Hong Kong Profits Tax provision is calculated at an estimated annual effective tax rate of **16.5%** (with **8.25%** for certain qualifying corporations), while other overseas subsidiaries are taxed at their respective estimated annual effective tax rates applicable in their countries or jurisdictions[29](index=29&type=chunk) [7. Earnings/(Loss) Per Share](index=12&type=section&id=7.%20Earnings%2F(Loss)%20Per%20Share) Basic earnings per share transitioned from a loss to a profit, with diluted earnings per share remaining identical due to the absence of dilutive potential ordinary shares Basic Earnings/(Loss) Per Share (For the Six Months Ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Profit/(Loss) attributable to owners of the Company | RMB 26,308,000 | RMB (2,504,000) | | Weighted average number of ordinary shares in issue | 4,404,018,959 shares | 4,404,018,959 shares | | Basic earnings/(loss) per share | RMB 0.006 | RMB (0.001) | - For the periods ended June 30, 2025 and 2024, there were no dilutive potential ordinary shares, thus diluted earnings/(loss) per share is identical to basic earnings/(loss) per share[31](index=31&type=chunk) [8. Property, Plant and Equipment](index=12&type=section&id=8.%20Property%2C%20Plant%20and%20Equipment) The group recognized additions to right-of-use assets of RMB 4,665,000, while acquisitions of self-owned assets significantly decreased to RMB 3,208,000 - For the six months ended June 30, 2025, the group entered into several lease agreements for office use, recognizing additions to right-of-use assets of **RMB 4,665,000** (2024: RMB 3,578,000)[32](index=32&type=chunk) - For the six months ended June 30, 2025, the group primarily acquired machinery items and construction in progress at a cost of **RMB 3,208,000** (2024: RMB 35,083,000), representing a significant year-on-year decrease[33](index=33&type=chunk) [9. Interests in Associates](index=13&type=section&id=9.%20Interests%20in%20Associates) As of June 30, 2025, interests in associates amounted to RMB 155,343,000, a decrease from RMB 161,164,000 as of December 31, 2024 Interests in Associates (As at Period End) | Item | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | | :--- | :--- | :--- | | Unlisted corporate entities | 155,343 | 161,164 | [10. Other Investments](index=13&type=section&id=10.%20Other%20Investments) Total other investments decreased, comprising equity investments measured at fair value through other comprehensive income (listed and unlisted funds) and listed securities measured at fair value through profit or loss Equity Investments Measured at Fair Value Through Other Comprehensive Income (As at Period End) | Item | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | | :--- | :--- | :--- | | Listed securities | 163,204 | 177,779 | | Unlisted fund investments | 211,350 | 224,461 | | **Total** | **374,554** | **402,240** | Equity Investments Measured at Fair Value Through Profit or Loss (As at Period End) | Item | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | | :--- | :--- | :--- | | Listed securities | 20,546 | 12,181 | [11. Inventories](index=14&type=section&id=11.%20Inventories) As of June 30, 2025, total inventories decreased to RMB 141,496,000 from RMB 175,432,000, mainly due to a reduction in finished goods and merchandise Composition of Inventories (As at Period End) | Item | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | | :--- | :--- | :--- | | Raw materials | 18,990 | 17,493 | | Work in progress | 43,764 | 45,001 | | Finished goods and merchandise | 78,742 | 112,938 | | **Total** | **141,496** | **175,432** | [12. Trade and Other Receivables](index=14&type=section&id=12.%20Trade%20and%20Other%20Receivables) As of June 30, 2025, total trade and other receivables decreased to RMB 531,731,000 from RMB 616,205,000, primarily due to a significant reduction in trade receivables within 3 months Ageing Analysis of Trade and Other Receivables (As at Period End) | Item | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | | :--- | :--- | :--- | | **Current Assets** | | | | Trade receivables within 3 months | 107,863 | 243,018 | | Trade receivables over 3 months but less than 12 months | 268,214 | 213,785 | | Trade receivables over 12 months | 1,259 | 1,846 | | Other receivables less loss allowance | 73,897 | 71,969 | | PRC VAT recoverable | 21,576 | 28,860 | | Interest receivables | 9,186 | 5,861 | | Dividend receivables | 495 | – | | Prepayments and deposits | 49,241 | 50,866 | | **Total current assets** | **531,731** | **616,205** | | **Non-current Assets** | | | | Prepayments and deposits | 8,708 | 7,894 | | **Total** | **540,439** | **624,099** | - Trade receivables are due within **30 to 360 days** from the invoice date, and all current trade and other receivables are expected to be recovered within one year[40](index=40&type=chunk) [13. Bank Deposits](index=15&type=section&id=13.%20Bank%20Deposits) This note provides the table title but does not include specific data [14. Cash and Cash Equivalents](index=15&type=section&id=14.%20Cash%20and%20Cash%20Equivalents) As of June 30, 2025, the group's cash and cash equivalents comprise cash at bank and cash on hand - As of June 30, 2025, and December 31, 2024, all cash and cash equivalents presented in the consolidated statement of financial position represent cash at bank and cash on hand[43](index=43&type=chunk) [15. Trade and Other Payables and Contract Liabilities](index=15&type=section&id=15.%20Trade%20and%20Other%20Payables%20and%20Contract%20Liabilities) As of June 30, 2025, total trade and other payables and contract liabilities decreased to RMB 129,718,000 from RMB 168,777,000 as of December 31, 2024 Ageing Analysis of Trade and Other Payables and Contract Liabilities (As at Period End) | Item | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | | :--- | :--- | :--- | | Trade payables within 1 month | 45,878 | 66,119 | | Trade payables over 1 month but less than 3 months | 10,500 | 20,738 | | Trade payables over 3 months but less than 12 months | 6,006 | 4,502 | | Trade payables over 12 months | 5,887 | 6,475 | | Trade payables | 68,271 | 97,834 | | Contract liabilities | 23,863 | 29,748 | | Other payables and accrued expenses | 37,584 | 41,195 | | **Total** | **129,718** | **168,777** | [16. Bank Borrowings](index=15&type=section&id=16.%20Bank%20Borrowings) As of June 30, 2025, total bank borrowings decreased to RMB 48,866,000 from RMB 58,003,000 as of December 31, 2024, with some loans secured by land and buildings Bank Borrowings (As at Period End) | Item | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | | :--- | :--- | :--- | | Bank borrowings repayable within one year or on demand – secured | 36,054 | 45,953 | | Bank borrowings repayable after one year – secured | 12,812 | 12,050 | | **Total** | **48,866** | **58,003** | - As of June 30, 2025, bank facilities of certain subsidiaries were secured by land and buildings with an aggregate carrying amount of **RMB 177,443,000** (December 31, 2024: RMB 170,687,000)[45](index=45&type=chunk) [17. Capital, Reserves and Dividends](index=16&type=section&id=17.%20Capital%2C%20Reserves%20and%20Dividends) The Board did not recommend or declare an interim dividend for the six months ended June 30, 2025, and the share award scheme expired on March 25, 2025, with no shares granted - The Board did not recommend or declare an interim dividend for the six months ended June 30, 2025 (2024: nil)[46](index=46&type=chunk) - The share award scheme expired on the tenth anniversary of its adoption date, March 25, 2025, and no shares were granted under the scheme during the periods ended June 30, 2025 and 2024[48](index=48&type=chunk) [18. Commitments](index=16&type=section&id=18.%20Commitments) As of June 30, 2025, capital commitments contracted but not provided for in the interim financial report amounted to RMB 13,285,000 Capital Commitments (As at Period End) | Item | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | | :--- | :--- | :--- | | Contracted | 13,285 | 13,184 | [19. Material Related Party Transactions](index=16&type=section&id=19.%20Material%20Related%20Party%20Transactions) Revenue from shop design and decoration services to Shengshi Group decreased, while new income from other goods and services was added, and purchases from associates were nil Material Related Party Transactions (For the Six Months Ended June 30) | Item | 2025 (RMB in thousands) | 2024 (RMB in thousands) | | :--- | :--- | :--- | | Shop design and decoration services provided to Shengshi Group | 7,611 | 11,257 | | Other goods and services provided to Shengshi Group | 1,073 | – | | Purchase of goods and services from associates | – | 38,660 | | Rental and electricity income from associates | 28 | 28 | [Management Discussion and Analysis](index=17&type=section&id=Management%20Discussion%20and%20Analysis) [I. Financial Review](index=17&type=section&id=I.%20Financial%20Review) Despite significant revenue decline, the group achieved substantial profit growth due to improved gross margin and foreign exchange gains, maintaining a robust financial position with a zero net debt-to-equity ratio Revenue Distribution (For the Six Months Ended June 30) | Business Segment | 2025 (RMB in thousands) | 2025 (%) | 2024 (RMB in thousands) | 2024 (%) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | High-end Consumer Support | 248,095 | 78.9 | 352,339 | 60.7 | -29.6 | | Commodity Trading | 66,219 | 21.1 | 228,022 | 39.3 | -71.0 | | **Total** | **314,314** | **100** | **580,361** | **100** | **-45.8** | - Gross profit was approximately **RMB 64,511,000** (a year-on-year decrease of **32.4%**), with a gross margin of approximately **20.5%** (a year-on-year increase of **4.1 percentage points**), primarily due to lower sales costs in high-end consumer support and changes in the commodity portfolio[54](index=54&type=chunk) - Profit for the period was **RMB 26,033,000** (a year-on-year increase of **5,117.0%**), and profit attributable to owners of the Company was **RMB 26,308,000** (a year-on-year increase of **1,150.6%**), mainly due to foreign exchange gains generated by operating units from exchange rate fluctuations[55](index=55&type=chunk) - As of June 30, 2025, the group's total equity reached **RMB 3,204,832,000**, net current assets were **RMB 1,848,144,000**, and cash and cash equivalents plus bank deposits totaled **RMB 1,296,383,000**[56](index=56&type=chunk)[61](index=61&type=chunk) - The net debt-to-equity ratio was **zero**, with total bank borrowings of **RMB 48,866,000**, approximately **72%** denominated in RMB and **28%** in New Taiwan Dollars[56](index=56&type=chunk)[57](index=57&type=chunk) - The group actively monitors and manages foreign exchange risks, implementing foreign currency hedging policies for significant foreign currency exposures[58](index=58&type=chunk) - As of June 30, 2025, the group had no significant contingent liabilities[60](index=60&type=chunk) - Current liabilities amounted to approximately **RMB 176,118,000**, comprising bank borrowings, trade and other payables[62](index=62&type=chunk) - The capital structure includes **4,404,018,959** issued shares and accumulated profits in reserves of **RMB 3,113,909,000**[63](index=63&type=chunk) - There were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures, nor any other significant investments held during the review period[64](index=64&type=chunk)[65](index=65&type=chunk) [II. Business Review](index=20&type=section&id=II.%20Business%20Review) The group's business focuses on high-end consumer product manufacturing, international commodity trading, and international shipping, with all segments facing declining sales and profits due to market pressures and price fluctuations - The group's business primarily focuses on manufacturing high-end consumer support products, building high-end consumer service platforms, and international commodity trading with related supply chain services[66](index=66&type=chunk) - The high-end consumer support business continues to face pressure, with both sales performance and profit declining year-on-year, but the group is responding through innovation, expanding business models, acquiring new clients, developing new products, and enhancing technological innovation[67](index=67&type=chunk) - In the second half of the year, the high-end consumer support business will further strengthen industry management, R&D, and innovation, expanding into other high-end lifestyle product areas such as jewelry, cosmetics, and mobile phones, and extending commercial space beautification services to living space beautification services[68](index=68&type=chunk) - International commodity trading business saw a decline in both sales and gross profit compared to the same period last year, but still maintained positive revenue, with plans to build a bulk cargo transit logistics park in Mexico[69](index=69&type=chunk) - International shipping business experienced declines in both revenue and profit due to fluctuations in the global dry bulk shipping market, with plans to intensify expansion into the Chinese shipping market and actively develop new clients, cargo types, and routes in the second half of the year[71](index=71&type=chunk) [III. Social Responsibility and Human Resources](index=21&type=section&id=III.%20Social%20Responsibility%20and%20Human%20Resources) The group upholds a "people-oriented" core value, employing 1,285 staff as of June 30, 2025, with decreased employee costs, emphasizing human resource development, competitive compensation, and environmental protection for sustainable development - The group consistently advocates a "people-oriented" core value, promoting a corporate spirit of "mutual respect, courage to take responsibility, close collaboration, and continuous innovation"[72](index=72&type=chunk) Employee Count and Costs (For the Six Months Ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Employee Count | 1,285 employees | 1,409 employees | | Employee Costs | RMB 105,981,000 | RMB 110,651,000 | - The group values human resource development and value creation, employing a standardized recruitment system, investing resources in various training programs, and offering competitive compensation and incentive mechanisms[72](index=72&type=chunk) - The group prioritizes environmental protection for sustainable development, implements strict quality inspection processes for products to meet national quality standards, and strictly adheres to national regulations for pollutant reporting[74](index=74&type=chunk) [IV. Future Outlook](index=22&type=section&id=IV.%20Future%20Outlook) Despite a complex international economic environment, the group remains confident in China's long-term economic development, planning to cautiously advance international trade and shipping, and expand high-end consumer support services into more lifestyle product areas - The group remains confident in the long-term sustainable development of the PRC economy, despite facing challenges from international political and economic instability and insufficient domestic demand[75](index=75&type=chunk) - In the second half of the year, the group will continue to adhere to the principle of "steady and long-term, sustainable operation," cautiously and prudently advancing international trade business, and continuously expanding its closely related international shipping business, striving to become an important player in the international shipping supply chain[75](index=75&type=chunk) - The group will adjust the production of high-end watch support products in response to market demand, while pursuing limited diversification, expanding high-end consumer support production to include jewelry, eyewear, cosmetics, mobile phones, and other 3C products, and extending commercial space beautification services to living space beautification services[75](index=75&type=chunk) [Other Information](index=22&type=section&id=Other%20Information) [Dividend Distribution](index=22&type=section&id=Dividend%20Distribution) The Board did not recommend or declare an interim dividend for the six months ended June 30, 2025 - The Board did not recommend or declare an interim dividend for the six months ended June 30, 2025 (2024: nil)[76](index=76&type=chunk) [Share-linked Agreements](index=22&type=section&id=Share-linked%20Agreements) The share award scheme expired on March 25, 2025, with no awards granted, and the share option scheme also expired on May 14, 2025, with no options granted - The share award scheme expired on the tenth anniversary of its adoption date, March 25, 2025, and no award shares were granted by the company during the review period[83](index=83&type=chunk)[82](index=82&type=chunk) - The share option scheme expired on May 14, 2025, and the company did not grant any share options under the scheme during the review period[86](index=86&type=chunk)[85](index=85&type=chunk) [Purchase, Sale or Redemption of Securities](index=24&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Securities) During the review period, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities - During the review period, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities (including the sale of treasury shares)[87](index=87&type=chunk) [Compliance with Corporate Governance Code](index=24&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The company complied with the Corporate Governance Code, except for the combined Chairman and CEO roles held by Mr. Zhang Yonglin, which the Board believes maintains sufficient balance of power - The company complied with the Corporate Governance Code during the review period, except for a deviation from provision C.2.1, where the roles of Chairman and Chief Executive Officer were not separated, both held by Mr. Zhang Yonglin[88](index=88&type=chunk) - The Board believes that despite the combined roles of Chairman and CEO, all significant decisions are made after consultation with and, where applicable, by the Board, which includes three independent non-executive directors, ensuring sufficient balance of power and safeguarding scientific decision-making[88](index=88&type=chunk) [Events After the Reporting Period](index=25&type=section&id=Events%20After%20the%20Reporting%20Period) - Except for matters disclosed in this announcement, no events with a material impact on the group have occurred from the end of the review period up to the date of this announcement[89](index=89&type=chunk) [Acknowledgements](index=25&type=section&id=Acknowledgements) - The Directors take this opportunity to express their gratitude to all shareholders for their continuous strong support, and to all employees of the group for their efforts and contributions during the review period[90](index=90&type=chunk) - As of the date of this announcement, the executive directors of the company are Mr. Zhang Yonglin (Chairman) and Mr. Li Shuzhong; the non-executive director is Mr. Shi Zhongyang; and the independent non-executive directors are Mr. Cai Jianmin, Mr. Liu Xueling, and Ms. Qian Weiqing[90](index=90&type=chunk)

[Interim Results Overview](index=1&type=section&id=Interim_Results_Overview) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=Condensed_Consolidated_Statement_of_Profit_or_Loss_and_Other_Comprehensive_Income) The company recorded a net loss of US$1,708 thousand in the first half of 2025, a reversal from a net profit of US$1,278 thousand in the prior year, primarily due to decreased shipping service revenue and a significant increase in cost of sales Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (US$ thousand) | 2024 (US$ thousand) | | :--- | :--- | :--- | | Total Revenue | 4,381 | 5,070 | | Total Cost of Sales | (5,207) | (2,966) | | Other Income | 308 | 502 | | Administrative Expenses | (1,180) | (1,010) | | Profit (Loss) Before Tax | (1,708) | 1,278 | | Profit (Loss) for the Period Attributable to Owners of the Company | (1,708) | 1,278 | | Total Comprehensive Income (Expense) for the Period Attributable to Owners of the Company | (1,665) | 1,278 | | Basic Earnings (Loss) Per Share Attributable to Owners of the Company (US cents) | (0.16) | 0.12 | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed_Consolidated_Statement_of_Financial_Position) As of June 30, 2025, the company's total assets slightly decreased to US$59,555 thousand, with a significant increase in current liabilities leading to a reduction in net current assets and total equity Condensed Consolidated Statement of Financial Position (As at June 30) | Indicator | 2025 (US$ thousand) | 2024 (US$ thousand) | | :--- | :--- | :--- | | **Assets** | | | | Non-current Assets | 40,952 | 40,147 | | Current Assets | 18,603 | 19,660 | | Total Assets | 59,555 | 59,807 | | **Liabilities and Equity** | | | | Current Liabilities | 2,287 | 1,003 | | Net Current Assets | 16,316 | 18,657 | | Total Equity | 57,139 | 58,804 | | Non-current Liabilities | 129 | – | | Total Liabilities and Equity | 59,555 | 59,807 | [Notes to the Condensed Consolidated Financial Statements](index=5&type=section&id=Notes_to_the_Condensed_Consolidated_Financial_Statements) [1. General Information](index=5&type=section&id=1.%20General%20Information) This section provides fundamental company details, including its Bermuda registration, primary business locations, dual listing on HKEX and SGX, and the presentation currency of its financial statements in US dollars - The company is incorporated in Bermuda, with its primary listing on the Main Board of the Stock Exchange of Hong Kong and a secondary listing on the Main Board of the Singapore Exchange[7](index=7&type=chunk) - The condensed consolidated financial statements are presented in US dollars, which is the company's functional currency[7](index=7&type=chunk) [2. Principal Accounting Policies](index=5&type=section&id=2.%20Principal%20Accounting%20Policies) The condensed consolidated financial statements are prepared in accordance with IAS 34 and HKEX Listing Rules, on a historical cost basis, with no significant impact from new IFRS amendments applied this period - The condensed consolidated financial statements have been prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting' and the applicable disclosure requirements of Appendix D2 to the Hong Kong Listing Rules[8](index=8&type=chunk) - The application of amendments to International Financial Reporting Standards during this interim period did not have a significant impact on the Group's financial position and performance for the current and prior periods[10](index=10&type=chunk) [3. Revenue Analysis](index=6&type=section&id=3.%20Revenue%20Analysis) Total revenue for the first half of 2025 was US$4,381 thousand, a 14% year-on-year decrease, with shipping service revenue falling to US$3,830 thousand from US$5,070 thousand, and new trading revenue of US$551 thousand Revenue Breakdown (For the six months ended June 30) | Revenue Source | 2025 (US$ thousand) | 2024 (US$ thousand) | | :--- | :--- | :--- | | Shipping Service Revenue | 3,830 | 4,391 | | Trading Revenue | 551 | – | | Rental Income | – | 679 | | Total Revenue from Contracts with Customers | 4,381 | 5,070 | [4. Segment Information](index=7&type=section&id=4.%20Segment%20Information) Operating segments were reclassified into shipping services and trading, with the shipping services segment reporting a loss of US$749 thousand, while the trading segment recorded a profit of US$13 thousand - During this interim period, the Group's operating and reportable segments were re-evaluated and reclassified into shipping services and trading[13](index=13&type=chunk) Segment Revenue and Results (For the six months ended June 30) | Segment | 2025 Revenue (US$ thousand) | 2025 Results (US$ thousand) | 2024 Revenue (US$ thousand) | 2024 Results (US$ thousand) | | :--- | :--- | :--- | :--- | :--- | | Shipping Services | 3,830 | (749) | 5,070 | 2,170 | | Trading | 551 | 13 | – | – | | **Total** | **4,381** | **(736)** | **5,070** | **2,170** | | Profit (Loss) Before Tax | | (1,708) | | 1,278 | [5. Other Income](index=8&type=section&id=5.%20Other%20Income) Total other income decreased to US$308 thousand from US$502 thousand in the prior year, primarily due to a reduction in bank interest income Other Income (For the six months ended June 30) | Item | 2025 (US$ thousand) | 2024 (US$ thousand) | | :--- | :--- | :--- | | Bank Interest Income | 182 | 385 | | Other Income | 126 | 117 | | **Total** | **308** | **502** | [6. Components of Profit (Loss) Before Tax](index=9&type=section&id=6.%20Profit%20%28Loss%29%20Before%20Tax) The loss before tax was primarily influenced by increased employee benefit expenses, crew expenses, depreciation of property, plant and equipment, and a decrease in bank interest income Key Items Affecting Profit (Loss) Before Tax (For the six months ended June 30) | Item | 2025 (US$ thousand) | 2024 (US$ thousand) | | :--- | :--- | :--- | | Employee Benefit Expenses | 666 | 417 | | Crew Expenses | 1,458 | 961 | | Depreciation of Property, Plant and Equipment | 1,353 | 992 | | Depreciation of Right-of-Use Assets | 67 | 49 | | Bank Interest Income | (182) | (385) | [7. Income Tax Expense](index=9&type=section&id=7.%20Income%20Tax%20Expense) The company incurred no income tax expense for the six months ended June 30, 2025, or 2024 - No assessable profits arose in Hong Kong, and no taxes were incurred in other jurisdictions for the six months ended June 30, 2025, and 2024[19](index=19&type=chunk) [8. Earnings (Loss) Per Share](index=9&type=section&id=8.%20Earnings%20%28Loss%29%20Per%20Share) Basic earnings per share shifted from a profit of 0.12 US cents in the prior year to a basic loss of 0.16 US cents due to the loss incurred during the period Earnings (Loss) Per Share (For the six months ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit (Loss) for the Period Attributable to Owners of the Company (US$ thousand) | (1,708) | 1,278 | | Weighted Average Number of Ordinary Shares in Issue (thousand shares) | 1,097,704 | 1,097,704 | | Basic Earnings (Loss) Per Share (US cents) | (0.16) | 0.12 | [9. Dividend Policy](index=10&type=section&id=9.%20Dividends) The Board of Directors decided not to declare an interim dividend for this interim period, consistent with the prior year - The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2025 (June 30, 2024: nil)[21](index=21&type=chunk)[25](index=25&type=chunk) [10. Property, Plant and Equipment](index=10&type=section&id=10.%20Property%2C%20Plant%20and%20Equipment) Additions to property, plant and equipment significantly increased to US$1,862 thousand in the first half of 2025, compared to US$2 thousand in the prior year - Additions to property, plant and equipment amounted to **US$1,862 thousand** for the six months ended June 30, 2025 (June 30, 2024: US$2 thousand)[22](index=22&type=chunk) [11. Trade Receivables](index=10&type=section&id=11.%20Trade%20Receivables) Trade receivables from shipping services are all within 30 days of invoice date, not overdue or impaired, and have been fully settled - Trade receivables from shipping services are aged within 30 days from the invoice date, are neither overdue nor impaired, and have been fully settled[23](index=23&type=chunk) [12. Other Receivables and Prepayments](index=10&type=section&id=12.%20Other%20Receivables%20and%20Prepayments) Total other receivables and prepayments increased from US$722 thousand as of December 31, 2024, to US$988 thousand as of June 30, 2025 Other Receivables and Prepayments (As at June 30) | Item | 2025 (US$ thousand) | 2024 (US$ thousand) | | :--- | :--- | :--- | | Other Receivables | 711 | 558 | | Prepayments for Operating Expenses and Other Deposits | 277 | 154 | | Account Balance with Brokers | – | 10 | | **Total** | **988** | **722** | [13. Deposits Received, Other Payables and Accrued Charges](index=10&type=section&id=13.%20Deposits%20Received%2C%20Other%20Payables%20and%20Accrued%20Charges) Total deposits received, other payables, and accrued charges significantly increased from US$775 thousand as of December 31, 2024, to US$2,033 thousand as of June 30, 2025, mainly due to a provision for dry-docking costs Deposits Received, Other Payables and Accrued Charges (As at June 30) | Item | 2025 (US$ thousand) | 2024 (US$ thousand) | | :--- | :--- | :--- | | Accrued Operating Expenses and Other Payables | 618 | 625 | | Provision for Dry-docking Costs | 1,415 | – | | Deposits Received from Ship Charterers | – | 150 | | **Total** | **2,033** | **775** | [Business Review and Outlook](index=11&type=section&id=Business_Review_and_Outlook) [Business Review Overview](index=11&type=section&id=Business_Review_Overview) In the first half of 2025, the Group's main businesses were shipping and trading, with shipping under pressure from tariff wars and geopolitical events, leading to a 14% year-on-year revenue decrease to US$4,381 thousand and a net loss of US$1,708 thousand - In the first half of 2025, the Group recorded revenue of **US$4,381 thousand**, a **14% year-on-year decrease** (2024: US$5,070 thousand)[26](index=26&type=chunk) - A loss attributable to owners of the company of **US$1,708 thousand** was recorded, compared to a profit of US$1,278 thousand in the prior year[26](index=26&type=chunk) - Basic loss per share for the period was **0.16 US cents** (2024: basic earnings per share of 0.12 US cents)[26](index=26&type=chunk) - The shipping business market faced immense pressure, with supramax dry bulk vessel charter rates plummeting by **34.1% year-on-year**[26](index=26&type=chunk) - To mitigate the cyclical impact on the shipping business, the Group strategically relaunched its trading business[26](index=26&type=chunk) [Shipping Business Performance](index=11&type=section&id=Shipping_Business_Performance) The dry bulk fleet, comprising three supramax vessels, experienced a significant reduction in shipping service revenue due to a 34.1% year-on-year drop in the BSI 58 index and the 'Heroic' vessel being out of service for dry-docking repairs - The Group's dry bulk fleet consists of **three supramax vessels** with a total carrying capacity of approximately **171,000 DWT**[27](index=27&type=chunk) - The average BSI 58 for the first half of 2025 was **US$9,202 per day**, a decrease of **US$4,773** year-on-year, reaching a five-year historical low[27](index=27&type=chunk) - The vessel 'Heroic' was out of service for dry-docking repairs, reducing operating revenue by approximately **US$300 thousand**[27](index=27&type=chunk) [Trading Business Expansion](index=11&type=section&id=Trading_Business_Expansion) Leveraging the new controlling shareholder's experience and network, the Group expanded into coal trading in the first half of 2025, generating sales revenue of US$551 thousand and a profit of US$13 thousand from 5,200 tons of coal sold - The Group expanded its business into coal trading in the first half of 2025, recording sales revenue of **US$551 thousand** (2024: nil) and a profit of **US$13 thousand** (2024: nil)[28](index=28&type=chunk) - In the first half of 2025, the Group achieved coal sales of **5,200 tons** (2024: nil)[28](index=28&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=12&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital%20Structure) As of June 30, 2025, both current and quick assets decreased, and the current ratio fell from 19.6 to 8.1, remaining strong despite increased current liabilities due to dry-docking provisions, while equity attributable to owners decreased due to the period's loss - As of June 30, 2025, the Group had current assets of **US$18,603 thousand** (December 31, 2024: US$19,660 thousand)[29](index=29&type=chunk) - Quick assets totaled **US$13,910 thousand** (December 31, 2024: US$18,938 thousand)[29](index=29&type=chunk) - The current ratio was approximately **8.1** (December 31, 2024: 19.6), with the decrease primarily due to the provision for dry-docking costs during the review period[29](index=29&type=chunk) - Equity attributable to owners of the company was **US$57,139 thousand**, a decrease of **US$1,665 thousand** from the end of last year, mainly due to the Group incurring a loss of US$1,708 thousand[29](index=29&type=chunk) - The Group's bank interest income decreased by **53%** to **US$182 thousand** (2024: US$385 thousand), primarily due to a general reduction in bank deposit interest rates[30](index=30&type=chunk) [Outlook and Future Strategies](index=12&type=section&id=Outlook_and_Future_Strategies) Management maintains cautious optimism for the medium-to-long-term shipping business outlook, expecting strong short-term demand, and plans to leverage new shareholder resources to diversify into logistics and trading in China, Mongolia, and Belt and Road countries, while seeking fleet expansion, cost reduction, and M&A opportunities - Management remains cautiously optimistic about the medium-to-long-term outlook for the shipping business, expecting strong shipping demand in the short term[31](index=31&type=chunk) - The Group will expand its logistics and trading businesses in mainland China, Mongolia, and other Belt and Road countries, aiming to cultivate new business growth points within the year to achieve business diversification[31](index=31&type=chunk) - Future strategies include opportunistically expanding the fleet, enhancing professional fleet management, implementing cost reduction and efficiency improvement measures, and seeking investment or merger and acquisition opportunities[32](index=32&type=chunk) [Corporate Governance and Other Information](index=13&type=section&id=Corporate_Governance_and_Other_Information) [Changes in Directors' Information](index=13&type=section&id=Changes_in_Directors%27_Information) Independent Non-executive Director Mr. Zhu Gaoming resigned from CIFI Holdings and joined Fosun International as a Senior Assistant and Senior Expert in Financial Management on August 4, 2025 - Independent Non-executive Director Mr. Zhu Gaoming resigned from his positions as Vice President and President of Overseas Business at CIFI Holdings (Group) Co Ltd in July 2025[33](index=33&type=chunk) - Mr. Zhu Gaoming joined Fosun International Limited as a Senior Assistant and Senior Expert in Financial Management on August 4, 2025[33](index=33&type=chunk) [Corporate Governance and Securities Dealing Code](index=13&type=section&id=Corporate_Governance_and_Securities_Dealing_Code) The company complied with all applicable code provisions of the Corporate Governance Code in Appendix C1 of the HKEX Listing Rules during the reporting period, and all directors confirmed compliance with the adopted Securities Dealing Code - The company complied with all applicable code provisions of the Corporate Governance Code as set out in Appendix C1 to the Hong Kong Listing Rules for the six months ended June 30, 2025[34](index=34&type=chunk) - All directors confirmed their compliance with the required standards of the Securities Dealing Code throughout the six months ended June 30, 2025[35](index=35&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=13&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the six months ended June 30, 2025 - Neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the six months ended June 30, 2025[36](index=36&type=chunk) [Completion of Voluntary Conditional General Cash Offer](index=14&type=section&id=Completion_of_Voluntary_Conditional_General_Cash_Offer) Huajian Limited completed its voluntary conditional general cash offer for the company on February 18, 2025, becoming the direct and ultimate controlling company with approximately 51.81% of the issued share capital - The voluntary conditional general cash offer was completed on **February 18, 2025**[37](index=37&type=chunk) - Following the completion of the general offer, Huajian Limited became the direct and ultimate controlling company, holding **568,768,963 shares**, representing approximately **51.81%** of the company's issued share capital[37](index=37&type=chunk) [Audit Committee Review](index=14&type=section&id=Audit_Committee_Review) The interim financial statements, though unaudited, have been reviewed by the Audit Committee and approved by the Board of Directors - The company's unaudited condensed consolidated interim financial statements for the six months ended June 30, 2025, have been reviewed by the Audit Committee and formally approved by the Board of Directors upon the Audit Committee's recommendation[38](index=38&type=chunk) [Forward-Looking Statements and Board Information](index=14&type=section&id=Forward-Looking_Statements_and_Board_Information) This interim results announcement contains forward-looking statements regarding the Group's financial condition, results, and business, which involve known and unknown risks and uncertainties, and concludes with a list of Board members - This interim results announcement contains forward-looking statements regarding the Group's financial condition, results, and business, which involve known and unknown risks and uncertainties[39](index=39&type=chunk) - The Board of Directors includes three Executive Directors (Ms. Liu Sainan, Mr. Hu Yingxia, Ms. Li Chunyang) and three Independent Non-executive Directors (Mr. Zhu Gaoming, Mr. Qiu Yiyong, Mr. Tang Banghao)[39](index=39&type=chunk)

[Financial Highlights](index=1&type=section&id=財務摘要) [Overview of Financial Highlights](index=1&type=section&id=財務摘要概覽) Bafook Holdings Limited reported interim results for the six months ended June 30, 2025, with revenue decreasing by 22.0% to RMB190,271 thousands, loss for the period narrowing to (RMB36,167) thousands, and adjusted loss significantly narrowing by 42.3% 2025 H1 Key Financial Data | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 190,271 | 243,952 | -22.0% | | Adjusted Loss for the Period | (15,419) | (26,700) | -42.3% | | Convertible Bond Interest | (20,748) | (19,869) | +4.4% | | Loss for the Period | (36,167) | (46,569) | -22.3% | | Loss Per Share (RMB cents) — Basic and Diluted | (2.08) | (2.86) | -27.3% | - Adjusted loss for the period, a non-GAAP financial measure calculated by excluding convertible bond interest from loss for the period, significantly narrowed by **42.3%** year-on-year, indicating improved operating loss after removing non-operating items[3](index=3&type=chunk)[4](index=4&type=chunk) [Interim Results Review](index=2&type=section&id=中期業績回顧) [Performance Overview](index=2&type=section&id=業績概覽) In H1 2025, the Group's system sales (including associates) remained stable at RMB1,716 million with 1,131 stores, but self-operated and franchised restaurant system sales and reported revenue declined due to industry slowdown and weak consumption 2025 H1 Operating Overview | Indicator | 2025 H1 (RMB millions) | 2024 H1 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Group System Sales | 1,716 | 1,716 | 0.0% | | Group's Own Brands' Self-operated and Franchised Restaurants System Sales | 274 | 325 | -13.6% | | Financial Statement Revenue | 190 | 244 | -22.0% | | Total Number of Stores (as of June 30) | 1,131 | 1,131 | 0.0% | - The catering industry experienced an overall slowdown, intensified market consolidation, and consumer focus on price and differentiated products, compounded by sustained weak consumption and price wars on delivery platforms, leading to pressure on corporate profitability[5](index=5&type=chunk) [Brand Operations and Innovation](index=2&type=section&id=品牌運營與創新) Key brands 'Hehegu' and 'Xinladao' actively responded to market challenges through platform optimization, new product launches, brand innovation, and asset-light expansion, while associate brands 'Yujian Xiaomian' and 'Baozai Huang' enhanced market position with competitive pricing and enhanced experiences - "Hehegu" Chinese fast food leveraged the concentrated surge in delivery platforms, strengthening its freshly cooked advantage and launching new products to counter market impact in Beijing[6](index=6&type=chunk) - "Xinladao" fish hotpot implemented brand innovation, piloted new models, enhanced product upgrades by introducing fresh-cut ingredients and multiple hotpot items, and pursued asset-light expansion through joint ventures and store renovations[6](index=6&type=chunk) - Associate brand "Yujian Xiaomian" strengthened competitiveness with **price advantages**, diverse products, and multi-period operations, also expanding into the Hong Kong market; "Baozai Huang" has over **200 stores** nationwide, innovating with a communal hotpot model to enhance dining experience[6](index=6&type=chunk) [Ecosystem Platform Development](index=3&type=section&id=生態鏈平台發展) Bafook Holdings continues to leverage its 'Co-creation Camp' platform to integrate ecosystem and industry resources, aiming to diversify revenue, strengthen collaborations, and drive innovation - The Group integrates its ecosystem and industry resources through the "Co-creation Camp" platform to broaden revenue streams, strengthen industry cooperation, and drive enterprise innovation and development[7](index=7&type=chunk) [Management Discussion and Analysis](index=3&type=section&id=管理層討論與分析) [Revenue](index=3&type=section&id=收入) Total Group revenue decreased by 22.0% to RMB190.3 million, with restaurant operations and delivery revenue declining due to market competition and fewer stores, while food ingredient sales grew by 4.9% Revenue Composition and Changes | Revenue Source | 2025 H1 (RMB millions) | 2024 H1 (RMB millions) | Change (%) | Primary Reason | | :--- | :--- | :--- | :--- | :--- | | Group and its Associates System Revenue | 1,716 | 1,715 | +0.1% | Stable | | Group's Own Brands' Self-operated and Franchised Restaurants System Sales | 274 | 325 | -13.6% | Decrease | | Group Revenue | 190.3 | 244.0 | -22.0% | Intense market competition | | Restaurant Operations Revenue | 71.7 | 116.2 | -38.3% | Intense market competition | | Delivery Business Revenue | 73.6 | 84.9 | -13.3% | Decrease in number of stores | | Sales of Food Ingredients Revenue | 45.0 | 42.9 | +4.9% | Increase | [Cost and Expense Analysis](index=3&type=section&id=成本與費用分析) During the period, major costs and expenses decreased in absolute terms, notably employee benefits and property rental, driven by fewer self-operated stores and cost control, though some expense ratios increased due to lower revenue [Raw Materials and Changes in Inventories of Finished Goods](index=3&type=section&id=製成品之所用原材料及存貨變動) Raw materials and inventory changes decreased by 16.3% to RMB83.5 million, but their percentage of revenue rose from 40.9% to 43.9% due to lower revenue | Indicator | 2025 H1 (RMB millions) | 2024 H1 (RMB millions) | Change (%) | Percentage of Revenue (2025 vs 2024) | | :--- | :--- | :--- | :--- | :--- | | Raw Materials and Changes in Inventories of Finished Goods | 83.5 | 99.8 | -16.3% | 43.9% vs 40.9% | [Online Platform Service and Delivery Fees](index=3&type=section&id=線上平台服務費及配送費) Online platform service and delivery fees decreased by 16.8% to RMB13.4 million, primarily due to reduced delivery revenue | Indicator | 2025 H1 (RMB millions) | 2024 H1 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Online Platform Service and Delivery Fees | 13.4 | 16.1 | -16.8% | [Employee Benefit Expenses](index=3&type=section&id=僱員福利開支) Employee benefit expenses significantly decreased by 27.7% to RMB55.1 million, mainly due to fewer self-operated stores, reduced staff hours, and cost control, with its revenue percentage also declining | Indicator | 2025 H1 (RMB millions) | 2024 H1 (RMB millions) | Change (%) | Percentage of Revenue (2025 vs 2024) | | :--- | :--- | :--- | :--- | :--- | | Employee Benefit Expenses | 55.1 | 76.2 | -27.7% | 29.0% vs 31.2% | [Depreciation of Right-of-Use Assets](index=4&type=section&id=使用權資產折舊) Depreciation of right-of-use assets decreased by 18.4% to RMB24.8 million, but its percentage of revenue slightly increased from 12.5% to 13.0% due to lower revenue and fewer self-operated stores | Indicator | 2025 H1 (RMB millions) | 2024 H1 (RMB millions) | Change (%) | Percentage of Revenue (2025 vs 2024) | | :--- | :--- | :--- | :--- | :--- | | Depreciation of Right-of-Use Assets | 24.8 | 30.4 | -18.4% | 13.0% vs 12.5% | [Depreciation and Amortization of Other Assets](index=4&type=section&id=其他資產折舊及攤銷) Depreciation and amortization of other assets decreased by 24.7% to RMB6.7 million, with its percentage of revenue remaining stable between 3.5% and 3.6% | Indicator | 2025 H1 (RMB millions) | 2024 H1 (RMB millions) | Change (%) | Percentage of Revenue (2025 vs 2024) | | :--- | :--- | :--- | :--- | :--- | | Depreciation and Amortization of Other Assets | 6.7 | 8.9 | -24.7% | 3.5% vs 3.6% | [Property Rental and Related Expenses](index=4&type=section&id=物業租金及其他相關開支) Property rental and related expenses significantly decreased by 43.9% to RMB4.6 million, primarily due to store closures and relocation to lower-rent sites, with its revenue percentage also decreasing | Indicator | 2025 H1 (RMB millions) | 2024 H1 (RMB millions) | Change (%) | Percentage of Revenue (2025 vs 2024) | | :--- | :--- | :--- | :--- | :--- | | Property Rental and Related Expenses | 4.6 | 8.2 | -43.9% | 2.4% vs 3.4% | [Other Expenses](index=4&type=section&id=其他開支) Other expenses decreased by 17.8% to RMB18.5 million, mainly due to reduced routine maintenance, but its percentage of revenue slightly increased from 9.2% to 9.7% due to lower revenue | Indicator | 2025 H1 (RMB millions) | 2024 H1 (RMB millions) | Change (%) | Percentage of Revenue (2025 vs 2024) | | :--- | :--- | :--- | :--- | :--- | | Other Expenses | 18.5 | 22.5 | -17.8% | 9.7% vs 9.2% | [Share of Profits / (Losses) of Associates](index=4&type=section&id=應佔聯營公司溢利%2F%28虧損%29) Share of profits from associates turned from a loss of RMB5.8 million in H1 2024 to a profit of RMB5.9 million in H1 2025, driven by strong-performing brands Share of Profits / (Losses) of Associates | Indicator | 2025 H1 (RMB millions) | 2024 H1 (RMB millions) | Change | | :--- | :--- | :--- | :--- | | Share of Profits / (Losses) of Associates | 5.9 (Profit) | (5.8) (Loss) | Turnaround from loss to profit | [Net Finance Costs](index=4&type=section&id=財務費用淨額) Net finance costs slightly increased from RMB23.9 million in H1 2024 to RMB24.3 million in H1 2025, primarily due to higher convertible bond interest Net Finance Costs | Indicator | 2025 H1 (RMB millions) | 2024 H1 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Net Finance Costs | 24.3 | 23.9 | +1.7% | [Income Tax Expense](index=5&type=section&id=所得稅費用) Income tax expense slightly increased from RMB0.5 million in H1 2024 to RMB0.6 million in H1 2025 Income Tax Expense | Indicator | 2025 H1 (RMB millions) | 2024 H1 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Income Tax Expense | 0.6 | 0.5 | +20.0% | [Loss for the Period](index=5&type=section&id=期內虧損) The Group's loss for the period narrowed by 22.3% to RMB36.2 million, primarily due to reduced operating losses and increased profits from associates Loss for the Period | Indicator | 2025 H1 (RMB millions) | 2024 H1 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Loss for the Period | (36.2) | (46.6) | -22.3% | [Non-GAAP Financial Measures](index=5&type=section&id=非公認會計準則財務計量) [Adjusted Loss for the Period](index=5&type=section&id=期內經調整虧損) The Group presents adjusted loss for the period as a non-GAAP financial measure, excluding convertible bond interest to reflect core operating performance, with H1 2025 adjusted loss narrowing by 42.3% to RMB15.4 million Reconciliation of Loss for the Period to Adjusted Loss for the Period | Indicator | 2025 H1 (RMB thousands) | 2024 H1 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Loss for the Period | (36,167) | (46,569) | -22.3% | | Convertible Bond Interest | 20,748 | 19,869 | +4.4% | | Adjusted Loss for the Period | (15,419) | (26,700) | -42.3% | - This non-GAAP financial measure has limitations as an analytical tool and should be considered a supplement to, not a substitute for, financial performance analysis prepared in accordance with Hong Kong Financial Reporting Standards, and may not be comparable to similarly titled measures presented by other companies[4](index=4&type=chunk)[20](index=20&type=chunk) [Future Outlook](index=7&type=section&id=未來前景) [Future Development Strategy](index=7&type=section&id=未來發展戰略) Despite intense industry competition, the Group remains confident in its long-term growth potential, focusing on enhancing brand value, optimizing self-operated businesses, leveraging brand capitalization, and exploring diverse investment models for value creation and shareholder returns - The Group will continue to develop its core capabilities to achieve value creation and shareholder returns, despite intense competition in the catering industry, maintaining a firm belief in long-term growth potential[28](index=28&type=chunk) - Strategic deployments include enhancing brand enterprise value and optimizing the performance of self-operated businesses to contribute to Group profits[29](index=29&type=chunk) - Leveraging the capitalization process of high-quality brands to achieve value enhancement and cash inflow[29](index=29&type=chunk) - Exploring diversified investment empowerment models, including store investments, to expand business growth points[28](index=28&type=chunk) [Condensed Consolidated Interim Statement of Comprehensive Income](index=8&type=section&id=中期簡明綜合全面收益表) [Analysis of Comprehensive Income](index=8&type=section&id=綜合全面收益分析) For the six months ended June 30, 2025, the Group's loss for the period narrowed to RMB36,167 thousands from RMB46,569 thousands, driven by a 22.0% revenue decrease, reduced other income and expenses, and a shift to profit from associates Summary of Condensed Consolidated Interim Statement of Comprehensive Income | Indicator | 2025 H1 (RMB thousands) | 2024 H1 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 190,271 | 243,952 | -22.0% | | Other Income | 5,513 | 10,290 | -46.4% | | Raw Materials and Changes in Inventories of Finished Goods | (83,533) | (99,802) | -16.3% | | Online Platform Service and Delivery Fees | (13,403) | (16,079) | -16.8% | | Employee Benefit Expenses | (55,144) | (76,163) | -27.7% | | Depreciation of Right-of-Use Assets | (24,826) | (30,444) | -18.4% | | Depreciation and Amortization of Other Assets | (6,660) | (8,869) | -24.7% | | Property Rental and Related Expenses | (4,578) | (8,181) | -43.9% | | Other Expenses | (18,491) | (22,464) | -17.8% | | Share of Profits / (Losses) of Associates | 5,914 | (5,793) | Turnaround from loss to profit | | Loss Before Tax | (35,569) | (46,119) | -22.9% | | Loss for the Period | (36,167) | (46,569) | -22.3% | | Loss Per Share (RMB cents) Attributable to Equity Holders of the Company | (2.08) | (2.86) | -27.3% | - Other comprehensive income for the period turned from a loss of RMB3,195 thousands in H1 2024 to a gain of **RMB6,153 thousands** in H1 2025, primarily due to exchange differences arising from the translation of overseas operations[32](index=32&type=chunk) [Condensed Consolidated Interim Statement of Financial Position](index=10&type=section&id=中期簡明綜合資產負債表) [Analysis of Financial Position](index=10&type=section&id=綜合資產負債分析) As of June 30, 2025, total Group assets decreased to RMB772,973 thousands, with reduced right-of-use assets and associate investments, while total current liabilities reached RMB911,689 thousands, primarily convertible bonds, and total deficit expanded to RMB250,191 thousands Summary of Condensed Consolidated Interim Statement of Financial Position | Indicator | 2025 June 30 (RMB thousands) | 2024 Dec 31 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Total Non-Current Assets | 610,750 | 648,936 | -5.9% | | Total Current Assets | 162,223 | 152,746 | +6.2% | | Total Assets | 772,973 | 801,682 | -3.6% | | **Liabilities** | | | | | Total Current Liabilities | 911,689 | 897,680 | +1.6% | | Total Non-Current Liabilities | 111,475 | 124,179 | -10.3% | | Total Liabilities | 1,023,164 | 1,021,859 | +0.1% | | **Equity** | | | | | Deficit Attributable to Equity Holders of the Company | (276,475) | (249,626) | +10.8% (Deficit expanded) | | Non-Controlling Interests | 26,284 | 29,449 | -10.8% | | Total Deficit | (250,191) | (220,177) | +13.6% (Deficit expanded) | - As of June 30, 2025, right-of-use assets amounted to **RMB69.3 million**, a decrease from RMB95.3 million as of December 31, 2024[21](index=21&type=chunk)[33](index=33&type=chunk) - As of June 30, 2025, inventories amounted to **RMB18.0 million**, a decrease from RMB23.3 million as of December 31, 2024, with inventory turnover days slightly increasing from 43 to **45 days**[22](index=22&type=chunk)[33](index=33&type=chunk) - As of June 30, 2025, total lease liabilities were **RMB80.0 million**, a **22.9% decrease** from RMB103.8 million as of December 31, 2024, primarily due to rental payments for existing leases and the closure of some stores in H1[27](index=27&type=chunk)[34](index=34&type=chunk) [Notes to the Condensed Consolidated Interim Financial Information](index=12&type=section&id=簡明綜合中期財務資料附註) [Basis of Preparation](index=12&type=section&id=編製基準) The condensed consolidated interim financial information is prepared under HKAS 34 and Listing Rules Appendix D2 on a going concern basis, despite current liabilities exceeding current assets by RMB749,466 thousands, as convertible bond maturity extension ensures sufficient funds for the next 12 months - The condensed consolidated interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 Interim Financial Reporting issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of Appendix D2 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[35](index=35&type=chunk) - As of June 30, 2025, the Group's current liabilities exceeded its current assets by **RMB749,466 thousands**[36](index=36&type=chunk) - The original maturity date of the convertible bonds has been extended by **25 months** to **December 23, 2027**, through a supplemental deed, with the repayment dates for all accrued interest being similarly deferred[36](index=36&type=chunk) - Based on the extension arrangement and the Group's ability to generate net cash inflows from its future operating and investing activities, the directors believe the Group has sufficient funds to meet its debt obligations for the next 12 months, thus preparing the financial information on a going concern basis[37](index=37&type=chunk) [Principal Accounting Policies](index=12&type=section&id=主要會計政策) The condensed consolidated interim financial information is prepared on a historical cost basis, except for fair value financial assets, with HKAS 21 (Revised) 'Lack of Exchangeability' having no material impact, and IFRS 18 expected to broadly affect future financial statement presentation and disclosure - The condensed consolidated interim financial information is prepared on a historical cost basis, except for financial assets at fair value through profit or loss, which are measured at fair value[38](index=38&type=chunk) - The Group first applied Hong Kong Accounting Standard 21 (Revised) "Lack of Exchangeability" from January 1, 2025, but this revision is not relevant to the Group and is not expected to have a material impact[38](index=38&type=chunk)[39](index=39&type=chunk) - Hong Kong Financial Reporting Standard 18 "Presentation and Disclosure in Financial Statements" will be effective from January 1, 2027, and is expected to have certain pervasive impacts on the presentation and disclosure of the Group's financial statements[41](index=41&type=chunk) [Revenue and Segment Information](index=13&type=section&id=收入及分部資料) Operating segment information is not presented as key operating decisions are based on overall Group performance; revenue details show declines in restaurant operations and delivery, slight growth in food ingredient sales, with China as the primary market and no single external customer accounting for over 10% of revenue - The key operating decision-makers focus on the overall operating performance of the Group, thus no operating segment information is presented[42](index=42&type=chunk) Revenue Details from Customer Contracts | Revenue Source | 2025 H1 (RMB thousands) | 2024 H1 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Restaurant Operations | 71,696 | 116,163 | -38.3% | | Delivery Business | 73,567 | 84,865 | -13.3% | | Sales of Food Ingredients | 45,008 | 42,924 | +4.9% | | Total | 190,271 | 243,952 | -22.0% | - The Group's primary market is China, with sales to overseas customers contributing less than **10%** of revenue, and no single external customer's transaction revenue accounting for **10% or more** of the Group's total revenue[43](index=43&type=chunk)[44](index=44&type=chunk) [Other Income](index=14&type=section&id=其他收入) Other income decreased by 46.4% to RMB5,513 thousands, primarily due to reduced franchise and management service income, alongside a significant drop in government grants Other Income Details | Other Income Source | 2025 H1 (RMB thousands) | 2024 H1 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Franchise Income | 3,561 | 7,703 | -53.8% | | Government Grants | — | 220 | -100.0% | | Investment Income from Wealth Management Products | 169 | 79 | +113.9% | | Management Service Income | 1,066 | 1,733 | -38.5% | | Loan Interest Income | 162 | 159 | +1.9% | | Others | 555 | 396 | +40.2% | | Total | 5,513 | 10,290 | -46.4% | - Government grants primarily consist of tax refunds obtained under relevant tax policies and amortization of deferred government grants related to assets[45](index=45&type=chunk) - Management service income mainly includes service fees received by the Group for providing commercial, management, and administrative support services[46](index=46&type=chunk) [Other Expenses](index=14&type=section&id=其他開支) Total other expenses decreased by 17.8% to RMB18,491 thousands, mainly due to reductions in routine maintenance, advertising and marketing, and business development expenses Other Expenses Details | Other Expense Item | 2025 H1 (RMB thousands) | 2024 H1 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Routine Maintenance Expenses | 4,006 | 7,419 | -46.0% | | Advertising and Marketing Expenses | 2,387 | 2,952 | -19.2% | | Business Development Expenses | 2,951 | 3,940 | -25.0% | | Professional Service Fees | 2,409 | 2,427 | -0.7% | | Auditor's Remuneration — Audit Services | 900 | 900 | 0.0% | | Other Expenses | 5,838 | 4,826 | +21.0% | | Total Other Expenses | 18,491 | 22,464 | -17.8% | [Income Tax Expense (Notes)](index=15&type=section&id=所得稅費用) Income tax expense increased from RMB450 thousands in H1 2024 to RMB598 thousands in H1 2025, primarily due to higher withholding tax on dividends from associates Income Tax Expense Details | Income Tax Item | 2025 H1 (RMB thousands) | 2024 H1 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Current Income Tax | 421 | 50 | +742.0% | | Deferred Tax | 177 | 400 | -55.8% | | Total | 598 | 450 | +32.9% | - Hong Kong profits tax operates under a two-tiered system, with eligible entities taxed at **8.25%** on the first HKD2 million of profits and **16.5%** on the remainder; Chinese subsidiaries are subject to a corporate income tax rate of **25%**[50](index=50&type=chunk)[51](index=51&type=chunk) - In H1 2025, a **10% withholding tax** of **RMB379 thousands** was incurred on dividends received from Chinese associates[48](index=48&type=chunk)[52](index=52&type=chunk) [Loss for the Period (Notes)](index=16&type=section&id=期內虧損_附註) The Group's loss for the period is stated after deducting total depreciation and amortization of RMB31,486 thousands and total property rental and related expenses of RMB4,578 thousands Items Deducted/Included in Loss for the Period | Deducted/Included Item | 2025 H1 (RMB thousands) | 2024 H1 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total Depreciation and Amortization | 31,486 | 39,313 | -19.9% | | Total Property Rental and Related Expenses | 4,578 | 8,181 | -43.9% | | Auditor's Remuneration — Audit Services | 900 | 900 | 0.0% | [Dividends](index=16&type=section&id=股息) The Board has resolved not to declare an interim dividend for the six months ended June 30, 2025 - The Board resolved not to declare an interim dividend for the six months ended June 30, 2025 (2024: nil)[54](index=54&type=chunk) [Loss Per Share](index=16&type=section&id=每股虧損) Basic and diluted loss per share both narrowed to RMB(2.08) cents from RMB(2.86) cents, with no assumption of issuing potentially dilutive ordinary shares due to their anti-dilutive effect Loss Per Share | Indicator | 2025 H1 (RMB cents) | 2024 H1 (RMB cents) | Change (%) | | :--- | :--- | :--- | :--- | | Basic Loss Per Share | (2.08) | (2.86) | -27.3% | | Diluted Loss Per Share | (2.08) | (2.86) | -27.3% | - Basic loss per share is calculated based on the loss for the period attributable to equity holders of the Company of **RMB32,859 thousands** and the weighted average number of ordinary shares in issue of **1,578,664,000 shares** during the period[55](index=55&type=chunk) - In calculating diluted loss per share, no potentially dilutive ordinary shares were assumed to be issued as they had an anti-dilutive effect, which would reduce the loss per share[55](index=55&type=chunk) [Trade and Other Receivables](index=17&type=section&id=應收貿易及其他款項) As of June 30, 2025, net trade and other receivables slightly decreased to RMB60,719 thousands, with trade receivables increasing and other receivables decreasing Net Trade and Other Receivables | Indicator | 2025 June 30 (RMB thousands) | 2024 Dec 31 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Net Trade and Other Receivables | 60,719 | 62,321 | -2.6% | | Net Trade Receivables (Current) | 9,461 | 7,720 | +22.6% | | Net Other Receivables (Current) | 46,458 | 45,489 | +2.1% | | Net Other Receivables (Non-Current) | 4,800 | 9,112 | -47.3% | - The aging analysis of trade receivables at the end of the reporting period by invoice date shows **RMB5,061 thousands** within 6 months and **RMB6,094 thousands** between 6 months and 1 year[56](index=56&type=chunk) [Trade and Other Payables](index=18&type=section&id=應付貿易及其他款項) As of June 30, 2025, total trade and other payables slightly decreased to RMB114,603 thousands, with trade payables reducing and turnover days improving from 79 to 76 Trade and Other Payables | Indicator | 2025 June 30 (RMB thousands) | 2024 Dec 31 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Trade Payables | 33,680 | 36,649 | -8.1% | | Other Payables and Accruals | 80,923 | 79,633 | +1.6% | | Total | 114,603 | 116,282 | -1.4% | - Trade payables turnover days decreased from **79 days** for the year ended December 31, 2024, to **76 days** for the six months ended June 30, 2025[24](index=24&type=chunk) [Borrowings](index=18&type=section&id=借款) As of June 30, 2025, total Group borrowings increased by 81.4% to RMB37,839 thousands, primarily due to a significant rise in related party borrowings, with the weighted average annual interest rate increasing from 5.16% to 5.58% Borrowings Composition and Changes | Borrowing Type | 2025 June 30 (RMB thousands) | 2024 Dec 31 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Secured Bank Borrowings | 2,600 | 1,600 | +62.5% | | Unsecured and Unguaranteed Bank Borrowings | 10,000 | 10,000 | 0.0% | | Borrowings from Related Parties | 25,239 | 9,260 | +172.6% | | Total Borrowings | 37,839 | 20,860 | +81.4% | - As of June 30, 2025, the weighted average annual interest rate for borrowings was **5.58%**, higher than **5.16%** as of December 31, 2024[58](index=58&type=chunk) - As of June 30, 2025, bank borrowings of **RMB2,600 thousands** were guaranteed by a third party[58](index=58&type=chunk) [Convertible Bonds](index=19&type=section&id=可換股債券) As of June 30, 2025, total convertible bonds and related interest increased to RMB658,482 thousands due to accrued interest and exchange rate changes; though fully classified as current liabilities, their maturity has been extended to December 23, 2027 Changes in Convertible Bond Components | Indicator | 2025 June 30 (RMB thousands) | 2024 Dec 31 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total Convertible Bonds and Related Interest | 658,482 | 647,780 | +1.6% | - According to Note 1, as the original maturity date of these convertible bonds falls within 12 months from the respective statement of financial position dates, their entire carrying amount is presented as current liabilities as of June 30, 2025, and December 31, 2024[58](index=58&type=chunk) - In H1 2025, convertible bond interest expense amounted to **RMB20,748 thousands**, calculated using the effective interest method[60](index=60&type=chunk) [Events After Reporting Period](index=20&type=section&id=結算日後事項) Subsequent to the reporting period, a wholly-owned subsidiary signed an agreement on July 31, 2025, to dispose of a 1.71% equity interest in Guangzhou Yujian Xiaomian Catering Co., Ltd. for RMB48,000 thousands, expecting a pre-tax gain of approximately RMB42,000 thousands - A wholly-owned subsidiary of the Group signed an agreement to dispose of a **1.71%** equity interest in Guangzhou Yujian Xiaomian Catering Co., Ltd. for a total consideration of **RMB48,000 thousands**[61](index=61&type=chunk) - This equity disposal is expected to generate a pre-tax gain of approximately **RMB42,000 thousands**[61](index=61&type=chunk) [Review](index=20&type=section&id=審閱) The condensed consolidated interim financial information has not been audited by the company's auditor but has been reviewed by the audit committee - The condensed consolidated interim financial information is unaudited but has been reviewed by the Company's Audit Committee[62](index=62&type=chunk) [Other Information](index=21&type=section&id=其他資料) [Interim Dividends](index=21&type=section&id=中期股息) The Board has resolved not to declare an interim dividend for the six months ended June 30, 2025 - The Board resolved not to declare an interim dividend for the six months ended June 30, 2025 (2024: nil)[63](index=63&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=21&type=section&id=流動資金%2C%20財務資源及資本結構) As of June 30, 2025, the Group's total deficit expanded to RMB250.2 million, with current liabilities significantly exceeding current assets, resulting in a current ratio of 0.18; however, the Board believes sufficient funds exist for the next 12 months due to convertible bond extension and future cash flow generation Overview of Liquidity and Capital Structure | Indicator | 2025 June 30 (RMB millions) | 2024 Dec 31 (RMB millions) | Change | | :--- | :--- | :--- | :--- | | Total Deficit | 250.2 | 220.2 | Expanded | | Current Assets | 162.2 | 152.7 | Increased | | Current Liabilities | 911.7 | 897.7 | Increased | | Current Ratio | 0.18 | 0.17 | Slightly increased | | Outstanding Borrowings | 37.8 | 20.9 | Increased | | Cash and Cash Equivalents | 24.3 | 21.3 | Increased | | Net Cash to Equity Ratio | 0.054 | -0.002 | Improved | | Outstanding Convertible Bonds | 658.5 | 647.8 | Increased | - The Group's liquidity primarily depends on its ability to maintain sufficient operating cash inflows and secure adequate financing to repay maturing debts[64](index=64&type=chunk) - Considering the convertible bond extension arrangement and the Group's ability to generate net cash inflows from its future operating and investing activities, the directors believe the Company has sufficient funds to meet its debt obligations and capital expenditure requirements for the next 12 months[65](index=65&type=chunk) [Capital Commitments](index=21&type=section&id=資本承擔) As of June 30, 2025, the Group had no significant capital commitments for property, plant, and equipment contracted but not provided for in the consolidated financial statements - As of June 30, 2025, the Group had no capital expenditure contracted but not provided for in the consolidated financial statements regarding property, plant, and equipment[66](index=66&type=chunk) [Material Investments](index=22&type=section&id=重大投資) The Group holds significant investments in 'Yujian Xiaomian' and 'Tianshuilai,' both exceeding 5% of total assets, with 'Yujian Xiaomian' rapidly expanding its noodle restaurant network and 'Tianshuilai' operating over 200 'Baozai Huang' stores, aiming to enhance investment returns through a multi-brand matrix and internal controls - The Group's material investments include Guangzhou Yujian Xiaomian Catering Co., Ltd. ("Yujian Xiaomian") and Tianshuilai (Beijing) Catering Trade Management Co., Ltd. ("Tianshuilai"), with the carrying values of these investments each exceeding **5%** of the Group's total assets[67](index=67&type=chunk) Overview of Material Investments (as of June 30, 2025) | Investment Project | Equity Interest | Carrying Value Accounted for by Equity Method (RMB millions) | Carrying Value as % of Group's Total Assets | | :--- | :--- | :--- | :--- | | "Yujian Xiaomian" | 17.16% | 61.1 | 7.9% | | "Tianshuilai" | 25.03% | 52.4 | 6.8% | - "Yujian Xiaomian"'s store network rapidly expanded from **170 stores** as of December 31, 2022, to **360 stores** as of December 31, 2024[69](index=69&type=chunk) - "Tianshuilai" operates the "Baozai Huang" brand, with over **200 stores** nationwide as of December 31, 2024, primarily self-operated[70](index=70&type=chunk) - The Group has established a multi-brand investment matrix based on cross-regional, cross-industry, and diversified business formats, aiming to enhance investment returns and achieve value appreciation[70](index=70&type=chunk) [Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=23&type=section&id=重大收購及出售附屬公司%2C%20聯營公司及合資公司) For the six months ended June 30, 2025, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures - For the six months ended June 30, 2025, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures[71](index=71&type=chunk) [Future Plans for Material Investments and Capital Assets](index=23&type=section&id=重大投資及資本資產的未來計劃) As of the announcement date, the Group currently has no definite plans for material investments and capital assets - As of the announcement date, the Group currently has no definite plans for material investments and capital assets[72](index=72&type=chunk) [Pledge of Assets](index=23&type=section&id=資產抵押) As of June 30, 2025, the Group had no pledge of assets - As of June 30, 2025, the Group had no pledge of assets[73](index=73&type=chunk) [Contingent Liabilities](index=23&type=section&id=或然負債) As of June 30, 2025, the Group had no material contingent liabilities - As of June 30, 2025, the Group had no material contingent liabilities[74](index=74&type=chunk) [Gearing Ratio](index=23&type=section&id=資產負債比率) As of June 30, 2025, the Group's gearing ratio increased to 159% from 152% as of December 31, 2024, reflecting a relatively higher debt level Gearing Ratio | Indicator | 2025 June 30 | 2024 Dec 31 | Change | | :--- | :--- | :--- | :--- | | Gearing Ratio | 159% | 152% | Increased | - The gearing ratio is calculated as net debt divided by total capital, where net debt includes total borrowings (comprising current and non-current borrowings and convertible bonds) less cash and cash equivalents[75](index=75&type=chunk) [Foreign Exchange Risk](index=23&type=section&id=外匯風險) The Group's operations are primarily conducted in HKD and RMB, exposing it to foreign exchange risk from transactions denominated in other currencies, with no forward contracts entered into during the period to hedge this risk - The Group's operations are primarily conducted in Hong Kong Dollars and Renminbi, and transactions denominated in currencies other than Hong Kong Dollars and Renminbi are subject to foreign exchange risk[76](index=76&type=chunk) - For the six months ended June 30, 2025, the Group did not enter into any forward contracts to hedge its foreign exchange risk[76](index=76&type=chunk) [Human Resources](index=23&type=section&id=人力資源) As of June 30, 2025, the Group's headcount decreased to approximately 1,303 from 1,582, maintaining good employee relations, providing training, benefits, and incentive schemes, with remuneration based on performance, experience and market conditions Employee Headcount | Indicator | 2025 June 30 | 2024 Dec 31 | Change | | :--- | :--- | :--- | :--- | | Employee Headcount | 1,303 | 1,582 | Decreased | - The Group maintains good employee relations and provides adequate training, competitive benefits, and incentive schemes for its employees[77](index=77&type=chunk) - Employee remuneration is determined based on their performance, professional experience, and prevailing market conditions, including salaries and performance-based bonuses[77](index=77&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=24&type=section&id=購買%2C%20出售或贖回本公司之上市證券) For the six months ended June 30, 2025, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[78](index=78&type=chunk) [Compliance with Corporate Governance Code](index=24&type=section&id=遵守企業管治守則) For the six months ended June 30, 2025, the Company complied with the effective code provisions in Part 2 of the Corporate Governance Code set out in Appendix C1 to the Listing Rules - For the six months ended June 30, 2025, the Company complied with the effective code provisions in Part 2 of the Corporate Governance Code set out in Appendix C1 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[79](index=79&type=chunk) [Standard Code for Directors' Securities Transactions](index=24&type=section&id=董事進行證券交易須遵守的標準守則) The Company adopted the Standard Code for Securities Transactions by Directors of Listed Issuers in Appendix C3 of the Listing Rules, and all directors confirmed compliance during the reporting period - The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules as the code for all securities transactions by directors and relevant employees of the Company[80](index=80&type=chunk) - The Company has made specific enquiries to all directors, and all directors confirmed their compliance with the Standard Code throughout the six months ended June 30, 2025[80](index=80&type=chunk) [Events After the Reporting Period (Balance Sheet Date)](index=24&type=section&id=資產負債表日後事項) Except for the convertible bond extension disclosed in Note 1, no material events occurred after June 30, 2025, up to the announcement date - Except for the matters disclosed in Note 14 to the Company's condensed consolidated financial results, no material events occurred after June 30, 2025, up to the date of this announcement[81](index=81&type=chunk) [Audit Committee](index=24&type=section&id=審核委員會) The Group's unaudited interim results for the six months ended June 30, 2025, were reviewed by the Audit Committee, including all independent non-executive directors, discussing accounting principles, internal controls, and financial reporting matters, though not audited by the company's auditor - The Group's unaudited interim results for the six months ended June 30, 2025, have not been reviewed by the Company's auditor but have been reviewed by the Company's Audit Committee, which includes all independent non-executive directors of the Company[82](index=82&type=chunk) - The Company's Audit Committee also reviewed the accounting principles and practices adopted by the Group and discussed matters relating to internal controls and financial reporting with management[82](index=82&type=chunk) [Interim Report](index=25&type=section&id=中期報告) This announcement has been published on the websites of The Stock Exchange of Hong Kong Limited and the Company, with the interim report for the six months ended June 30, 2025, to be dispatched to shareholders and available online in due course - This results announcement has been published on the websites of The Stock Exchange of Hong Kong Limited and the Company[83](index=83&type=chunk) - The Company's interim report for the six months ended June 30, 2025, will be dispatched to the Company's shareholders in due course and will be available for review on the websites of The Stock Exchange of Hong Kong Limited and the Company[83](index=83&type=chunk) [Board of Directors](index=25&type=section&id=董事會) As of the announcement date, the Board comprises three executive directors (Mr. Zhao Linghuan, Mr. Wang Xiaolong, and Mr. Jing Shen) and three independent non-executive directors (Mr. Leung Kwai Kei, Mr. Law Wai Yan, and Ms. Zhuo Ping) - As of the date of this announcement, the Board comprises three executive directors (Mr. Zhao Linghuan, Mr. Wang Xiaolong, and Mr. Jing Shen) and three independent non-executive directors (Mr. Leung Kwai Kei, Mr. Law Wai Yan, and Ms. Zhuo Ping)[85](index=85&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，並明確表示概不會就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。 H World Group Limited 華住集團有限公司 （股份代號：1179） 2025年第二季度 及中期未經審核財務業績公告 及宣派現金股息 及海外監管公告 華住集團有限公司（「本公司」）謹此公佈其截至2025年6月30日止三個月及六個 月的未經審核財務業績。本業績公告亦根據香港聯合交易所有限公司證券上市規 則第13.48(1)條，作為本公司截至2025年6月30日止六個月之中期報告向本公司 股東提供。本公告於香港聯合交易所有限公司網站www.hkexnews.hk 及本公司網 站 https://ir.hworld.com 可供閱覽。 本公司亦根據香港聯合交易所有限公司證券上市規則第13.10B條作出本公告。本 公司將於2025年8月20日納斯達克全球精選市場交易時段前（美國東部時間）就有 關下述公告向美國證券交易委員會遞交6-K表格。 茲提述日期為2025年8月8日的公告，內容有關建議宣派及派 ...

[Introduction and Company Information](index=1&type=section&id=Introduction%20and%20Company%20Information) This section provides an overview of the company's regulatory context and key information regarding its board of directors [Regulatory Disclaimer](index=1&type=section&id=Regulatory%20Disclaimer) This document's content is regulated by the Hong Kong Securities and Futures Commission, which is not responsible for its accuracy or completeness, nor does it bear any loss arising from reliance on its content - The Hong Kong SFC regulates this document but is not responsible for its accuracy or completeness, nor does it bear any losses[1](index=1&type=chunk) [Company and Board Information](index=1&type=section&id=Company%20and%20Board%20Information) Hong Kong Exchanges and Clearing Limited (HKEX) published its condensed consolidated financial statements for the six months ended June 30, 2025, with a Board comprising 12 independent non-executive directors and one executive director (Group Chief Executive) - HKEX published its condensed consolidated financial statements for the six months ended June 30, 2025[2](index=2&type=chunk) - The Board of Directors consists of **12 independent non-executive directors** and **one executive director** (Group Chief Executive)[3](index=3&type=chunk) [Condensed Consolidated Income Statement](index=2&type=section&id=Condensed%20Consolidated%20Income%20Statement) This section presents the Group's financial performance, highlighting significant revenue and profit growth, alongside increased operating and tax expenses [Income Statement Summary](index=2&type=section&id=Income%20Statement%20Summary) For the six months ended June 30, 2025, HKEX's revenue and other income significantly increased, with profit for the period substantially rising year-on-year, driven by growth in transaction and trading system usage fees, clearing and settlement fees, and net investment income, while operating expenses and tax expenses (due to minimum top-up tax) also increased - Revenue and other income increased by **32.5%** from HKD **10,621 million** in 2024 to HKD **14,076 million** in 2025[4](index=4&type=chunk) - Profit for the period increased by **38.4%** from HKD **6,186 million** in 2024 to HKD **8,562 million** in 2025[4](index=4&type=chunk) - Taxation increased by **109.1%** from HKD **766 million** in 2024 to HKD **1,602 million** in 2025, primarily due to the Hong Kong minimum top-up tax[4](index=4&type=chunk) Key Financial Data from Condensed Consolidated Income Statement | Metric | As of June 30, 2025 (HKD Million) | As of June 30, 2024 (HKD Million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 11,034 | 8,062 | 36.9% | | Net investment income | 2,875 | 2,521 | 14.0% | | Revenue and other income | 14,076 | 10,621 | 32.5% | | Transaction-related expenses | (164) | (166) | -1.2% | | Operating expenses | (2,973) | (2,794) | 6.4% | | EBITDA | 10,939 | 7,661 | 42.8% | | Operating profit | 10,196 | 6,963 | 46.4% | | Profit before tax | 10,164 | 6,952 | 46.2% | | Taxation | (1,602) | (766) | 109.1% | | Profit for the period | 8,562 | 6,186 | 38.4% | | Profit attributable to HKEX shareholders | 8,519 | 6,125 | 39.1% | | Basic earnings per share (HKD) | 6.74 | 4.84 | 39.2% | | Diluted earnings per share (HKD) | 6.72 | 4.83 | 39.1% | [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) This section details the Group's total comprehensive income, reflecting strong profit growth and a positive shift in other comprehensive income components [Comprehensive Income Overview](index=3&type=section&id=Comprehensive%20Income%20Overview) For the six months ended June 30, 2025, the Group's total comprehensive income significantly increased, primarily due to a substantial rise in profit for the period and a shift from loss to positive gain in other comprehensive income, notably from currency translation differences of overseas subsidiaries and fair value changes of financial assets measured at fair value - Profit for the period increased by **38.4%** from HKD **6,186 million** in 2024 to HKD **8,562 million** in 2025[5](index=5&type=chunk) - Other comprehensive income shifted from a loss of HKD **7 million** in 2024 to a gain of HKD **483 million** in 2025[5](index=5&type=chunk) - Total comprehensive income increased by **46.4%** from HKD **6,179 million** in 2024 to HKD **9,045 million** in 2025[5](index=5&type=chunk) Key Data from Condensed Consolidated Statement of Comprehensive Income | Metric | As of June 30, 2025 (HKD Million) | As of June 30, 2024 (HKD Million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Profit for the period | 8,562 | 6,186 | 38.4% | | Other comprehensive income | 483 | (7) | Significant growth | | - Currency translation differences of overseas subsidiaries | 198 | (18) | Significant growth | | - Cash flow hedges (net of tax) | 70 | (3) | Significant growth | | - Financial assets measured at fair value through other comprehensive income: fair value changes (net of tax) | 199 | 14 | 1321.4% | | Total comprehensive income | 9,045 | 6,179 | 46.4% | | Total comprehensive income attributable to HKEX shareholders | 9,000 | 6,119 | 47.1% | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This section outlines the Group's financial position, showing growth in total assets, liabilities, and equity, reflecting a strengthened financial foundation [Financial Position Overview](index=4&type=section&id=Financial%20Position%20Overview) As of June 30, 2025, the Group's total assets and liabilities both increased, with significant rises in cash and cash equivalents, financial assets measured at amortized cost, and liabilities such as margin deposits from participants, while total equity also grew steadily, reflecting the company's continuously strengthening financial foundation - Total assets increased by **11.3%** from HKD **381,629 million** as of December 31, 2024, to HKD **424,872 million** as of June 30, 2025[6](index=6&type=chunk) - Total liabilities increased by **12.3%** from HKD **327,222 million** as of December 31, 2024, to HKD **367,421 million** as of June 30, 2025[6](index=6&type=chunk) - Total equity increased by **5.6%** from HKD **54,407 million** as of December 31, 2024, to HKD **57,451 million** as of June 30, 2025[6](index=6&type=chunk) Key Data from Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (HKD Million) | December 31, 2024 (HKD Million) | Change (%) | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Cash and cash equivalents | 173,897 | 134,365 | 29.4% | | Financial assets measured at fair value through profit or loss | 2,842 | 7,558 | -62.4% | | Financial assets measured at fair value through other comprehensive income | 44,117 | 50,704 | -12.9% | | Financial assets measured at amortized cost | 68,662 | 43,610 | 57.4% | | Derivative financial instruments (assets) | 58,848 | 67,747 | -13.0% | | Accounts receivable, prepayments and deposits | 51,681 | 54,497 | -5.2% | | Goodwill and other intangible assets | 19,939 | 19,605 | 1.7% | | Property, plant and equipment | 1,651 | 1,504 | 9.8% | | Right-of-use assets | 2,529 | 1,174 | 115.4% | | **Total assets** | **424,872** | **381,629** | **11.3%** | | **Liabilities** | | | | | Derivative financial instruments (liabilities) | 58,920 | 67,863 | -13.1% | | Margin deposits from participants, Mainland China securities and clearing margins, and cash collateral | 234,508 | 188,857 | 24.2% | | Accounts payable, accruals and other liabilities | 39,561 | 37,584 | 5.3% | | Current tax liabilities | 2,003 | 1,321 | 51.6% | | Participants' contributions to clearing house funds | 28,631 | 27,124 | 5.6% | | Lease liabilities | 873 | 1,294 | -32.6% | | **Total liabilities** | **367,421** | **327,222** | **12.3%** | | **Equity** | | | | | Equity attributable to HKEX shareholders | 56,910 | 53,852 | 5.7% | | Non-controlling interests | 541 | 555 | -2.6% | | **Total equity** | **57,451** | **54,407** | **5.6%** | [Condensed Consolidated Statement of Changes in Equity](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This section presents the changes in the Group's equity, detailing the impact of profit, other comprehensive income, and dividend distributions [Equity Changes H1 2025](index=5&type=section&id=Equity%20Changes%20H1%202025) As of June 30, 2025, equity attributable to HKEX shareholders increased from HKD **53,852 million** at the beginning of the year to HKD **56,910 million**, primarily driven by profit for the period and total comprehensive income, despite the distribution of the second interim dividend for 2024 - Equity attributable to HKEX shareholders increased from HKD **53,852 million** as of January 1, 2025, to HKD **56,910 million** as of June 30, 2025[7](index=7&type=chunk) - Profit for the period was HKD **8,519 million**, and other comprehensive income was HKD **481 million**[7](index=7&type=chunk) - A second interim dividend of HKD **6,193 million** for 2024 was distributed[7](index=7&type=chunk) Overview of Equity Changes H1 2025 | Metric | January 1, 2025 (HKD Million) | June 30, 2025 (HKD Million) | Change (HKD Million) | | :--- | :--- | :--- | :--- | | Equity attributable to HKEX shareholders | 53,852 | 56,910 | 3,058 | | Non-controlling interests | 555 | 541 | (14) | | **Total equity** | **54,407** | **57,451** | **3,044** | | **Key changes:** | | | | | Profit for the period | - | 8,519 | 8,519 | | Other comprehensive income | - | 481 | 481 | | Second interim dividend for 2024 | - | (6,193) | (6,193) | | Share-based employee compensation benefits | - | 190 | 190 | [Equity Changes H1 2024](index=6&type=section&id=Equity%20Changes%20H1%202024) As of June 30, 2024, equity attributable to HKEX shareholders increased from HKD **51,344 million** at the beginning of the year to HKD **52,708 million**, primarily due to profit for the period, partially offset by the distributed second interim dividend for 2023 - Equity attributable to HKEX shareholders increased from HKD **51,344 million** as of January 1, 2024, to HKD **52,708 million** as of June 30, 2024[8](index=8&type=chunk) - Profit for the period was HKD **6,125 million**, and other comprehensive income/(loss) was a loss of HKD **6 million**[8](index=8&type=chunk) - A second interim dividend of HKD **4,944 million** for 2023 was distributed[8](index=8&type=chunk) Overview of Equity Changes H1 2024 | Metric | January 1, 2024 (HKD Million) | June 30, 2024 (HKD Million) | Change (HKD Million) | | :--- | :--- | :--- | :--- | | Equity attributable to HKEX shareholders | 51,344 | 52,708 | 1,364 | | Non-controlling interests | 452 | 512 | 60 | | **Total equity** | **51,796** | **53,220** | **1,424** | | **Key changes:** | | | | | Profit for the period | - | 6,125 | 6,125 | | Other comprehensive income/(loss) | - | (6) | (6) | | Second interim dividend for 2023 | - | (4,944) | (4,944) | | Share-based employee compensation benefits | - | 206 | 206 | [Condensed Consolidated Cash Flow Statement](index=7&type=section&id=Condensed%20Consolidated%20Cash%20Flow%20Statement) This section presents the Group's cash flow activities, showing significant growth in operating cash flow, a shift to net outflow from investing activities, and increased financing outflows for dividends [Cash Flow Overview](index=7&type=section&id=Cash%20Flow%20Overview) For the six months ended June 30, 2025, the Group's net cash inflow from operating activities significantly increased, net cash outflow from investing activities was primarily impacted by the acquisition of HKEX headquarters property, and net cash outflow from financing activities was mainly for dividend payments, resulting in a notable increase in cash and cash equivalents at period-end - Net cash inflow from operating activities increased by **152.7%** from HKD **5,697 million** in 2024 to HKD **14,399 million** in 2025[9](index=9&type=chunk) - Net cash (outflow)/inflow from investing activities shifted from an inflow of HKD **3,572 million** in 2024 to an outflow of HKD **3,457 million** in 2025, primarily due to the payment of HKD **2,559 million** for the acquisition of HKEX headquarters property[9](index=9&type=chunk) - Net cash outflow from financing activities increased by **25.0%** from HKD **5,141 million** in 2024 to HKD **6,427 million** in 2025, mainly for dividend payments of HKD **6,169 million** to HKEX shareholders[9](index=9&type=chunk) Key Data from Condensed Consolidated Cash Flow Statement | Metric | As of June 30, 2025 (HKD Million) | As of June 30, 2024 (HKD Million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net cash inflow from operating activities (non-HKFRS measure) | 10,069 | 5,852 | 72.1% | | Net cash inflow from operating activities | 14,399 | 5,697 | 152.7% | | Net cash (outflow)/inflow from investing activities | (3,457) | 3,572 | Significant change | | - Payments for acquisition of HKEX headquarters property | (2,559) | - | N/A | | Net cash outflow from financing activities | (6,427) | (5,141) | 25.0% | | - Dividends paid to HKEX shareholders | (6,169) | (4,923) | 25.3% | | Net increase in cash and cash equivalents | 4,515 | 4,128 | 9.4% | | Cash and cash equivalents at June 30 | 18,470 | 13,334 | 38.5% | [Notes to the Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes on the Group's financial statements, covering accounting policies, segment performance, and specific financial items [Note 1 Basis of Preparation](index=8&type=section&id=Note%201%20Basis%20of%20Preparation) These condensed consolidated financial statements are prepared in accordance with HKAS 34 and should be read in conjunction with the 2024 annual consolidated financial statements, with financial information for the year ended December 31, 2024, derived from the statutory annual consolidated financial statements and an unqualified auditor's report - These financial statements are prepared in accordance with HKAS 34 'Interim Financial Reporting' issued by the Hong Kong Institute of Certified Public Accountants[10](index=10&type=chunk) - Financial information for the year ended December 31, 2024, is derived from the statutory annual consolidated financial statements, and the auditor's report was unqualified[10](index=10&type=chunk) [Note 2 Accounting Policies](index=8&type=section&id=Note%202%20Accounting%20Policies) The accounting policies adopted in these financial statements are consistent with those in the 2024 annual consolidated financial statements; new/amended HKFRS accounting standards (e.g., HKFRS 19, HKFRS 7, and HKFRS 9 amendments) are not expected to have a significant impact on the Group, but the impact of HKFRS 18 adoption, particularly on income statement structure and management performance indicator disclosures, is still being assessed - The accounting policies used in preparing these condensed consolidated financial statements are consistent with those in the 2024 annual consolidated financial statements[11](index=11&type=chunk) - Amendments to HKFRS 19, HKFRS 7, and HKFRS 9, along with annual improvements to HKFRS accounting standards, are not expected to have any significant impact on the Group[12](index=12&type=chunk) - HKFRS 18 will replace HKAS 1, introducing new requirements to enhance comparability and transparency of financial performance, with no impact on profit attributable to Group shareholders, and the Group is still assessing its impact on the income statement structure and disclosure of management performance indicators[13](index=13&type=chunk) [Note 3 Operating Segments](index=10&type=section&id=Note%203%20Operating%20Segments) The Group classifies its business into four operating segments—Cash, Equity Securities and Financial Derivatives, Commodities, and Data and Connectivity—based on internal management reports reviewed by the chief operating decision maker, with EBITDA used to assess segment performance; in H1 2025, all segments achieved revenue growth, with the Cash segment contributing the most to EBITDA - The Group's operating segments include: Cash, Equity Securities and Financial Derivatives, Commodities, and Data and Connectivity[14](index=14&type=chunk)[15](index=15&type=chunk) - The chief operating decision maker assesses the performance of each operating segment based on its EBITDA[16](index=16&type=chunk) H1 2025 Segment Revenue and EBITDA Performance | Segment | Revenue (HKD Million) | Revenue Share (%) | EBITDA (HKD Million) | EBITDA Share (%) | | :--- | :--- | :--- | :--- | :--- | | Cash | 6,502 | 58.9% | 6,063 | 55.4% | | Equity Securities and Financial Derivatives | 2,010 | 18.2% | 2,932 | 26.8% | | Commodities | 1,411 | 12.8% | 797 | 7.3% | | Data and Connectivity | 1,103 | 10.0% | 895 | 8.2% | | Corporate Items | 8 | 0.1% | 252 | 2.3% | | **Group Total** | **11,034** | **100%** | **10,939** | **100%** | H1 2025 Segment Revenue and EBITDA YoY Change | Segment | 2025 Revenue (HKD Million) | 2024 Revenue (HKD Million) | Revenue YoY Change (%) | 2025 EBITDA (HKD Million) | 2024 EBITDA (HKD Million) | EBITDA YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cash | 6,502 | 4,005 | 62.3% | 6,063 | 3,505 | 73.0% | | Equity Securities and Financial Derivatives | 2,010 | 1,704 | 18.0% | 2,932 | 2,494 | 17.6% | | Commodities | 1,411 | 1,299 | 8.6% | 797 | 816 | -2.3% | | Data and Connectivity | 1,103 | 1,045 | 5.6% | 895 | 840 | 6.5% | | Corporate Items | 8 | 9 | -11.1% | 252 | 6 | Significant growth | [Note 4 Transaction and Trading System Usage Fees](index=12&type=section&id=Note%204%20Transaction%20and%20Trading%20System%20Usage%20Fees) For the six months ended June 30, 2025, total transaction and trading system usage fees significantly increased, primarily driven by a substantial rise in equity securities transaction fees traded on SEHK and through Stock Connect, with derivative warrants, callable bull/bear contracts, and warrants also showing significant growth - Total transaction and trading system usage fees increased by **49.1%** from HKD **3,290 million** in 2024 to HKD **4,906 million** in 2025[18](index=18&type=chunk) - Transaction fees for equity securities traded on SEHK and through Stock Connect increased by **99.6%** from HKD **1,424 million** in 2024 to HKD **2,842 million** in 2025[18](index=18&type=chunk) Composition of Transaction and Trading System Usage Fees | Category | As of June 30, 2025 (HKD Million) | As of June 30, 2024 (HKD Million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Equity securities traded on SEHK and through Stock Connect | 2,842 | 1,424 | 99.6% | | Derivative warrants, callable bull/bear contracts and warrants traded on SEHK | 307 | 187 | 64.2% | | Futures and options contracts traded on SEHK and HKFE | 991 | 954 | 3.9% | | Commodity contracts traded on LME and Qianhai Mercantile Exchange | 766 | 725 | 5.7% | | **Total** | **4,906** | **3,290** | **49.1%** | [Note 5 Net Investment Income](index=12&type=section&id=Note%205%20Net%20Investment%20Income) For the six months ended June 30, 2025, net investment income increased, primarily due to higher total interest income from financial assets measured at amortized cost and financial assets measured at fair value through other comprehensive income, which offset net foreign exchange swap losses - Net investment income increased by **14.0%** from HKD **2,521 million** in 2024 to HKD **2,875 million** in 2025[19](index=19&type=chunk) - Total interest income from financial assets measured at amortized cost was HKD **3,605 million** (2024: HKD **4,800 million**), and total interest income from financial assets measured at fair value through other comprehensive income was HKD **1,125 million** (2024: HKD **613 million**)[19](index=19&type=chunk) - Net foreign exchange swap losses were HKD **89 million** (2024: HKD **81 million**), offset by interest income from higher-yielding deposits[19](index=19&type=chunk) Composition of Net Investment Income | Category | As of June 30, 2025 (HKD Million) | As of June 30, 2024 (HKD Million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total interest income from financial assets measured at amortized cost | 3,605 | 4,800 | -24.9% | | Total interest income from financial assets measured at fair value through other comprehensive income | 1,125 | 613 | 83.5% | | Interest returned to participants | (2,121) | (3,015) | -29.7% | | **Net interest income** | **2,609** | **2,398** | **8.8%** | | Net gains/(losses) from financial assets measured at fair value through other comprehensive income | 72 | - | N/A | | Net gains/(losses) from financial assets mandatorily measured at fair value and derivative financial instruments | 122 | 120 | 1.7% | | Other exchange differences | 72 | 3 | 2300.0% | | **Net investment income** | **2,875** | **2,521** | **14.0%** | [Note 6 Transaction Related Expenses](index=13&type=section&id=Note%206%20Transaction%20Related%20Expenses) Transaction-related expenses, including license fees, bank charges, and other costs directly varying with trading and settlement activities, slightly decreased this period - Transaction-related expenses include license fees, bank charges, and other costs directly varying with trading and settlement activities[20](index=20&type=chunk) - For the six months ended June 30, 2025, transaction-related expenses were HKD **164 million**, slightly lower than HKD **166 million** in 2024[4](index=4&type=chunk) [Note 7 Employee Costs and Related Expenses](index=13&type=section&id=Note%207%20Employee%20Costs%20and%20Related%20Expenses) For the six months ended June 30, 2025, employee costs and related expenses slightly increased, primarily driven by growth in salaries and other short-term employee benefits and termination benefits, while share-based employee compensation benefits decreased - Total employee costs and related expenses increased by **0.8%** from HKD **1,937 million** in 2024 to HKD **1,952 million** in 2025[21](index=21&type=chunk) - Salaries and other short-term employee benefits increased from HKD **1,592 million** in 2024 to HKD **1,604 million** in 2025, while share-based employee compensation benefits decreased from HKD **206 million** to HKD **190 million**[21](index=21&type=chunk) Composition of Employee Costs and Related Expenses | Category | As of June 30, 2025 (HKD Million) | As of June 30, 2024 (HKD Million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Salaries and other short-term employee benefits | 1,604 | 1,592 | 0.8% | | Share-based employee compensation benefits under HKEX Share Award Scheme | 190 | 206 | -7.8% | | Termination benefits | 32 | 18 | 77.8% | | Retirement benefit expenses | 126 | 121 | 4.1% | | **Total** | **1,952** | **1,937** | **0.8%** | [Note 8 Finance Costs](index=13&type=section&id=Note%208%20Finance%20Costs) For the six months ended June 30, 2025, finance costs decreased, primarily due to a reduction in interest on lease liabilities and negative interest on JPY deposits - Total finance costs decreased by **17.0%** from HKD **59 million** in 2024 to HKD **49 million** in 2025[22](index=22&type=chunk) - Interest on lease liabilities decreased from HKD **28 million** in 2024 to HKD **22 million** in 2025, and negative interest on JPY deposits decreased from HKD **3 million** to HKD **0 million**[22](index=22&type=chunk) Composition of Finance Costs | Category | As of June 30, 2025 (HKD Million) | As of June 30, 2024 (HKD Million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Interest on borrowings | 2 | 2 | 0.0% | | Interest on lease liabilities | 22 | 28 | -21.4% | | Bank facility commitment fees | 25 | 26 | -3.8% | | Negative interest on JPY deposits | - | 3 | -100.0% | | **Total** | **49** | **59** | **-17.0%** | [Note 9 Taxation](index=14&type=section&id=Note%209%20Taxation) For the six months ended June 30, 2025, tax expenses significantly increased, primarily due to the recognition of Hong Kong minimum top-up tax, leading to a substantial rise in Hong Kong profits tax and total current tax; the Group is objecting to additional tax assessment notices regarding offshore profit exemption for Stock Connect transactions - Total tax expenses increased by **109.1%** from HKD **766 million** in 2024 to HKD **1,602 million** in 2025[23](index=23&type=chunk) - Hong Kong minimum top-up tax was HKD **363 million** (2024: zero), as the effective tax rate for Hong Kong entities was below 15%[23](index=23&type=chunk) - The Group is objecting to additional tax assessment notices issued by the Hong Kong Inland Revenue Department regarding offshore profit exemption for Stock Connect transactions[24](index=24&type=chunk) Composition of Tax Expenses | Category | As of June 30, 2025 (HKD Million) | As of June 30, 2024 (HKD Million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Hong Kong profits tax | 1,047 | 611 | 71.4% | | Hong Kong minimum top-up tax | 363 | - | N/A | | Taxation outside Hong Kong | 174 | 179 | -2.8% | | **Total current tax** | **1,584** | **790** | **100.5%** | | Deferred tax | 18 | (24) | Significant change | | **Tax expenses** | **1,602** | **766** | **109.1%** | [Note 10 Earnings Per Share](index=15&type=section&id=Note%2010%20Earnings%20Per%20Share) For the six months ended June 30, 2025, both basic and diluted earnings per share significantly increased, reflecting strong performance in profit attributable to shareholders - Basic earnings per share increased by **39.2%** from HKD **4.84** in 2024 to HKD **6.74** in 2025[25](index=25&type=chunk) - Diluted earnings per share increased by **39.1%** from HKD **4.83** in 2024 to HKD **6.72** in 2025[26](index=26&type=chunk) Earnings Per Share Data | Metric | As of June 30, 2025 | As of June 30, 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Profit attributable to shareholders (HKD Million) | 8,519 | 6,125 | 39.1% | | Weighted average number of shares outstanding less shares held for share award scheme (thousand shares) | 1,263,911 | 1,264,558 | -0.1% | | **Basic earnings per share (HKD)** | **6.74** | **4.84** | **39.2%** | | Weighted average number of shares for diluted earnings per share (thousand shares) | 1,267,621 | 1,267,742 | -0.01% | | **Diluted earnings per share (HKD)** | **6.72** | **4.83** | **39.1%** | [Note 11 Dividends](index=15&type=section&id=Note%2011%20Dividends) As of June 30, 2025, declared interim dividends significantly increased, reflecting the company's enhanced profitability - Interim dividend declared as of June 30 was HKD **6.00** per share (2024: HKD **4.36** per share), totaling HKD **7,607 million** (2024: HKD **5,528 million**), an increase of **37.6%**[27](index=27&type=chunk) Interim Dividend Declaration | Category | As of June 30, 2025 (HKD Million) | As of June 30, 2024 (HKD Million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Interim dividend declared as of June 30 | 7,607 | 5,528 | 37.6% | | Less: Dividends on shares held for share award scheme as of June 30 | (24) | (15) | 60.0% | | **Total** | **7,583** | **5,513** | **37.6%** | [Note 12 Financial Assets](index=16&type=section&id=Note%2012%20Financial%20Assets) As of June 30, 2025, the Group's total financial assets significantly increased, primarily driven by higher cash and cash equivalents for margins and corporate funds, as well as financial assets measured at amortized cost; financial assets are held for specific purposes, and some cannot be used to fund other Group activities - Total financial assets increased by **14.6%** from HKD **303,984 million** as of December 31, 2024, to HKD **348,366 million** as of June 30, 2025[28](index=28&type=chunk) - Financial assets for margins increased by **31.1%** from HKD **168,455 million** as of December 31, 2024, to HKD **220,792 million** as of June 30, 2025[28](index=28&type=chunk) - Certain cash and cash equivalents (e.g., margins, clearing house funds, A-share cash) are held for specific purposes and cannot be used to fund other Group activities[29](index=29&type=chunk) Composition of Financial Assets | Category | June 30, 2025 (HKD Million) | December 31, 2024 (HKD Million) | Change (%) | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | 173,897 | 134,365 | 29.4% | | Financial assets measured at fair value through profit or loss | 2,842 | 7,558 | -62.4% | | Financial assets measured at fair value through other comprehensive income | 44,117 | 50,704 | -12.9% | | Financial assets measured at amortized cost | 68,662 | 43,610 | 57.4% | | Derivative financial instruments | 58,848 | 67,747 | -13.0% | | **Total** | **348,366** | **303,984** | **14.6%** | [Note 13 Derivative Financial Instruments](index=18&type=section&id=Note%2013%20Derivative%20Financial%20Instruments) As of June 30, 2025, the Group's derivative financial assets and liabilities primarily consisted of base and ferrous metal futures and options contracts cleared by LME Clear, with their fair values decreasing; the Group uses forward foreign exchange contracts and foreign exchange swaps for cash flow hedging and optimizing foreign currency cash flows - Total derivative financial assets decreased by **13.0%** from HKD **67,747 million** as of December 31, 2024, to HKD **58,848 million** as of June 30, 2025[30](index=30&type=chunk) - Total derivative financial liabilities decreased by **13.1%** from HKD **67,863 million** as of December 31, 2024, to HKD **58,920 million** as of June 30, 2025[30](index=30&type=chunk) - The fair value of base and ferrous metal futures and options contracts cleared by LME Clear was HKD **58,781 million** for both assets and liabilities (December 31, 2024: HKD **67,629 million**)[30](index=30&type=chunk) Overview of Derivative Financial Instruments | Category | June 30, 2025 (HKD Million) | December 31, 2024 (HKD Million) | Change (%) | | :--- | :--- | :--- | :--- | | **Derivative Financial Assets** | | | | | Base and ferrous metal futures and options contracts cleared through LME Clear | 58,781 | 67,629 | -13.0% | | Forward foreign exchange contracts | 37 | - | N/A | | Foreign exchange swaps | 30 | 118 | -74.6% | | **Total (Assets)** | **58,848** | **67,747** | **-13.0%** | | **Derivative Financial Liabilities** | | | | | Base and ferrous metal futures and options contracts cleared through LME Clear | 58,781 | 67,629 | -13.0% | | Forward foreign exchange contracts | - | 60 | -100.0% | | Foreign exchange swaps | 139 | 174 | -20.2% | | **Total (Liabilities)** | **58,920** | **67,863** | **-13.1%** | [Note 14 Accounts Receivable, Prepayments and Deposits](index=19&type=section&id=Note%2014%20Accounts%20Receivable%2C%20Prepayments%20and%20Deposits) As of June 30, 2025, total accounts receivable, prepayments, and deposits slightly decreased, primarily due to a reduction in settlement reserve funds and clearing margins held by ChinaClear, though accounts receivable for continuous net settlement and prepayments for the acquisition of HKEX headquarters property increased - Total accounts receivable, prepayments, and deposits decreased by **5.2%** from HKD **54,497 million** as of December 31, 2024, to HKD **51,681 million** as of June 30, 2025[33](index=33&type=chunk) - Settlement reserve funds and clearing margins held by ChinaClear decreased from HKD **19,814 million** as of December 31, 2024, to HKD **13,312 million** as of June 30, 2025[33](index=33&type=chunk) - Prepayments for the acquisition of HKEX headquarters property were HKD **754 million** (December 31, 2024: zero)[33](index=33&type=chunk) Composition of Accounts Receivable, Prepayments and Deposits | Category | June 30, 2025 (HKD Million) | December 31, 2024 (HKD Million) | Change (%) | | :--- | :--- | :--- | :--- | | Accounts receivable for continuous net settlement | 33,840 | 31,813 | 6.4% | | Transaction levies, stamp duty and fees receivable | 1,619 | 1,083 | 49.5% | | Settlement reserve funds and clearing margins held by ChinaClear | 13,312 | 19,814 | -32.8% | | Inter-CCP margins held by Shanghai Clearing House | 502 | 828 | -39.4% | | Prepayments for acquisition of HKEX headquarters property | 754 | - | N/A | | Other accounts receivable, prepayments and deposits | 1,061 | 959 | 10.6% | | **Total** | **51,681** | **54,497** | **-5.2%** | [Note 15 Acquisition of HKEX Headquarters Property](index=19&type=section&id=Note%2015%20Acquisition%20of%20HKEX%20Headquarters%20Property) In April 2025, the Group agreed to acquire the HKEX headquarters property for HKD **6.3 billion**, obtaining partial possession and recognizing right-of-use assets and property, plant, and equipment; this transaction resulted in a lease modification and a one-off gain of HKD **76 million** - The Group agreed to acquire the HKEX headquarters property for a total consideration of HKD **6.3 billion**[34](index=34&type=chunk) - As of June 30, 2025, partial possession of the property was obtained, and HKD **1.718 billion** in land lease right-of-use assets, HKD **34 million** in property right-of-use assets, and HKD **53 million** in leasehold improvements (property, plant, and equipment) were recognized[34](index=34&type=chunk) - A one-off gain of HKD **76 million** from lease modification was recognized and included in miscellaneous income[34](index=34&type=chunk) [Note 16 Right-of-Use Assets](index=20&type=section&id=Note%2016%20Right-of-Use%20Assets) As of June 30, 2025, total right-of-use assets significantly increased, primarily due to the recognition of substantial land lease and property right-of-use assets from the acquisition of HKEX headquarters property, partially offset by lease modifications and depreciation - Total right-of-use assets increased by **115.4%** from HKD **1,174 million** as of January 1, 2025, to HKD **2,529 million** as of June 30, 2025[36](index=36&type=chunk) - The acquisition of HKEX headquarters property resulted in an increase of HKD **1,718 million** in land lease right-of-use assets and HKD **34 million** in property right-of-use assets[36](index=36&type=chunk) Changes in Right-of-Use Assets | Category | January 1, 2025 (HKD Million) | Additions (HKD Million) | Lease Modifications (HKD Million) | Depreciation (HKD Million) | June 30, 2025 (HKD Million) | | :--- | :--- | :--- | :--- | :--- | :--- | | Land leases | 15 | 1,718 | - | (1) | 1,732 | | Properties | 1,124 | 34 | (298) | (116) | 765 | | Information technology facilities | 31 | 4 | - | (6) | 29 | | Equipment and motor vehicles | 4 | - | - | (1) | 3 | | **Total** | **1,174** | **1,756** | **(298)** | **(124)** | **2,529** | [Note 17 Margins, Mainland China Securities and Clearing Margins, and Cash Collateral from Participants](index=20&type=section&id=Note%2017%20Margins%2C%20Mainland%20China%20Securities%20and%20Clearing%20Margins%2C%20and%20Cash%20Collateral%20from%20Participants) As of June 30, 2025, total margin deposits, Mainland China securities and clearing margins, and cash collateral from participants significantly increased, primarily driven by substantial growth in margin deposits from Futures Clearing Corporation and SEHK Options Clearing House - Total increased by **24.2%** from HKD **188,857 million** as of December 31, 2024, to HKD **234,508 million** as of June 30, 2025[36](index=36&type=chunk) - Margin deposits from Futures Clearing Corporation clearing participants increased by **70.8%** from HKD **60,030 million** as of December 31, 2024, to HKD **102,513 million** as of June 30, 2025[36](index=36&type=chunk) - Margin deposits from SEHK Options Clearing House clearing participants increased by **93.3%** from HKD **16,906 million** as of December 31, 2024, to HKD **32,684 million** as of June 30, 2025[36](index=36&type=chunk) Composition of Margins and Cash Collateral from Participants | Category | June 30, 2025 (HKD Million) | December 31, 2024 (HKD Million) | Change (%) | | :--- | :--- | :--- | :--- | | Margin deposits from Futures Clearing Corporation clearing participants | 102,513 | 60,030 | 70.8% | | Margin deposits, Mainland China securities and clearing margins, and cash collateral from HKSCC clearing participants | 23,498 | 29,679 | -20.9% | | Margin deposits from LME Clear clearing participants | 62,264 | 65,788 | -5.4% | | Margin deposits from OTC Clearing clearing participants | 13,258 | 15,699 | -15.5% | | Inter-CCP margins provided by Shanghai Clearing House to OTC Clearing | 291 | 755 | -61.4% | | Margin deposits from SEHK Options Clearing House clearing participants | 32,684 | 16,906 | 93.3% | | **Total** | **234,508** | **188,857** | **24.2%** | [Note 18 Accounts Payable, Accruals and Other Liabilities](index=21&type=section&id=Note%2018%20Accounts%20Payable%2C%20Accruals%20and%20Other%20Liabilities) The Group's accounts payable, accruals, and other liabilities primarily consist of accounts payable for continuous net settlement, with most due within two days after the trade date - Accounts payable for continuous net settlement accounted for **87%** of total accounts payable, accruals, and other liabilities (December 31, 2024: **90%**)[37](index=37&type=chunk) - Most accounts payable, accruals, and other liabilities are due within three months[37](index=37&type=chunk) [Note 19 Clearing House Funds](index=21&type=section&id=Note%2019%20Clearing%20House%20Funds) As of June 30, 2025, total clearing house funds increased, primarily driven by higher cash contributions from clearing participants, with the OTC Clearing Interest Rate and Foreign Exchange Guarantee Fund showing significant growth - Total clearing house funds increased by **5.8%** from HKD **28,714 million** as of December 31, 2024, to HKD **30,378 million** as of June 30, 2025[38](index=38&type=chunk) - Cash contributions from clearing participants increased from HKD **27,124 million** as of December 31, 2024, to HKD **28,631 million** as of June 30, 2025[38](index=38&type=chunk) - The OTC Clearing Interest Rate and Foreign Exchange Guarantee Fund increased by **39.0%** from HKD **6,056 million** as of December 31, 2024, to HKD **8,413 million** as of June 30, 2025[38](index=38&type=chunk) Composition of Clearing House Funds | Category | June 30, 2025 (HKD Million) | December 31, 2024 (HKD Million) | Change (%) | | :--- | :--- | :--- | :--- | | Cash contributions from clearing participants | 28,631 | 27,124 | 5.6% | | Contributions to OTC Clearing Interest Rate and Foreign Exchange Guarantee Resources | 156 | 156 | 0.0% | | Clearing house fund reserves | 1,591 | 1,434 | 10.9% | | **Total** | **30,378** | **28,714** | **5.8%** | | **Comprising Funds:** | | | | | Futures Clearing Corporation Reserve Fund | 4,541 | 6,074 | -25.3% | | HKSCC Guarantee Fund | 6,399 | 6,382 | 0.3% | | LME Clear Reserve Fund | 8,736 | 8,728 | 0.1% | | OTC Clearing Interest Rate and Foreign Exchange Guarantee Fund | 8,413 | 6,056 | 39.0% | | OTC Clearing Interest Rate and Foreign Exchange Guarantee Resources | 193 | 191 | 1.0% | | SEHK Options Clearing House Reserve Fund | 2,096 | 1,283 | 63.4% | [Note 20 Borrowings](index=22&type=section&id=Note%2020%20Borrowings) As of June 30, 2025, total borrowings decreased, primarily due to dividend payments by OTC Clearing to non-controlling interests, resulting in a corresponding reduction in the put option amount - Total borrowings decreased by **12.6%** from HKD **452 million** as of December 31, 2024, to HKD **395 million** as of June 30, 2025[39](index=39&type=chunk) - OTC Clearing paid dividends of HKD **59 million** to non-controlling interests, resulting in a corresponding reduction in the put option amount[39](index=39&type=chunk) Composition of Borrowings | Category | June 30, 2025 (HKD Million) | December 31, 2024 (HKD Million) | Change (%) | | :--- | :--- | :--- | :--- | | Put option granted to non-controlling interests | 395 | 452 | -12.6% | | - Non-current liabilities | 52 | 70 | -25.7% | | - Current liabilities | 343 | 382 | -10.2% | [Note 21 Share Capital and Shares Held for Share Award Scheme](index=22&type=section&id=Note%2021%20Share%20Capital%20and%20Shares%20Held%20for%20Share%20Award%20Scheme) As of June 30, 2025, issued share capital remained stable, while the number of shares held for the share award scheme slightly decreased, reflecting the combined impact of share grants and share purchases - Issued and fully paid ordinary share capital was HKD **31,955 million**, consistent with December 31, 2024[40](index=40&type=chunk) - Shares held for the share award scheme decreased from HKD **1,125 million** as of December 31, 2024, to HKD **1,122 million** as of June 30, 2025[40](index=40&type=chunk) - For the six months ended June 30, 2025, the share award scheme purchased **53,767** HKEX shares from the open market for a total of HKD **19 million**, and granted **63,479** HKEX shares at a total cost of HKD **22 million**[40](index=40&type=chunk) Share Capital and Shares Held for Share Award Scheme | Category | January 1, 2025 (HKD Million) | June 30, 2025 (HKD Million) | Change (HKD Million) | | :--- | :--- | :--- | :--- | | Share capital | 31,955 | 31,955 | 0 | | Shares held for share award scheme | (1,125) | (1,122) | 3 | | **Total** | **30,830** | **30,833** | **3** | [Note 22 Employee Share Arrangements](index=23&type=section&id=Note%2022%20Employee%20Share%20Arrangements) The Group uses a share award scheme as an employee benefit, granting shares to employees; for the six months ended June 30, 2025, over **1.44 million** shares were awarded, with some being re-granted forfeited or unallocated shares - The Group uses a share award scheme as an employee benefit, granting shares to Group employees (including executive directors)[41](index=41&type=chunk) - For the six months ended June 30, 2025, a total of **1,441,003** shares were awarded under the employee share award scheme (March 7, 2025), with an average fair value of HKD **301.44** per share[41](index=41&type=chunk) - Of these, **37,239** shares were re-granted forfeited or unallocated shares, and **74,543** shares were awarded to the HKEX Group Chief Executive[41](index=41&type=chunk)[42](index=42&type=chunk) [Note 23 Set-Aside Reserves](index=23&type=section&id=Note%2023%20Set-Aside%20Reserves) As of June 30, 2025, total set-aside reserves increased, primarily driven by growth in clearing house fund reserves - Total set-aside reserves increased by **10.8%** from HKD **1,451 million** as of December 31, 2024, to HKD **1,608 million** as of June 30, 2025[43](index=43&type=chunk) - Clearing house fund reserves increased from HKD **1,434 million** as of December 31, 2024, to HKD **1,591 million** as of June 30, 2025[43](index=43&type=chunk)[44](index=44&type=chunk) Composition of Set-Aside Reserves | Category | June 30, 2025 (HKD Million) | December 31, 2024 (HKD Million) | Change (%) | | :--- | :--- | :--- | :--- | | Clearing house fund reserves | 1,591 | 1,434 | 10.9% | | China statutory reserves | 17 | 17 | 0.0% | | **Total** | **1,608** | **1,451** | **10.8%** | [Note 24 Notes to the Condensed Consolidated Cash Flow Statement](index=24&type=section&id=Note%2024%20Notes%20to%20the%20Condensed%20Consolidated%20Cash%20Flow%20Statement) This note provides a reconciliation of profit before tax to net cash inflow from operating activities and an analysis of changes in financing liabilities; the significant increase in net cash inflow from operating activities reflects the strong cash-generating capability of core businesses - Net cash inflow from operating activities (non-HKFRS measure) increased by **72.1%** from HKD **5,852 million** in 2024 to HKD **10,069 million** in 2025[45](index=45&type=chunk) - The reconciliation of profit before tax to net cash inflow from operating activities shows that the net increase in margin financial assets and liabilities had a significant impact on cash flow[45](index=45&type=chunk) Reconciliation of Net Cash Inflow from Operating Activities | Adjustment Item | As of June 30, 2025 (HKD Million) | As of June 30, 2024 (HKD Million) | | :--- | :--- | :--- | | Profit before tax | 10,164 | 6,952 | | Net interest income | (2,609) | (2,398) | | Finance costs | 49 | 59 | | Depreciation and amortisation | 743 | 698 | | Net increase in margin financial assets | (45,517) | (15,877) | | Net increase in margin financial liabilities | 45,651 | 15,882 | | (Increase)/decrease in accounts receivable, prepayments and deposits | (2,542) | 7,898 | | Increase/(decrease) in other liabilities | 1,774 | (2,022) | | **Net cash inflow from operating activities** | **9,135** | **4,990** | | Interest received on short-term debt securities, time deposits and cash and cash equivalents | 3,844 | 4,763 | | Interest paid to participants | (2,121) | (3,015) | | Income tax paid | (753) | (805) | | **Net cash inflow from operating activities (non-HKFRS measure)** | **10,069** | **5,852** | Reconciliation of Financing Liabilities | Category | Borrowings (H1 2025) (HKD Million) | Borrowings (H1 2024) (HKD Million) | Lease Liabilities (H1 2025) (HKD Million) | Lease Liabilities (H1 2024) (HKD Million) | | :--- | :--- | :--- | :--- | :--- | | As of January 1 | 452 | 447 | 1,294 | 1,604 | | Additions to leases | - | - | 24 | 120 | | Lease modifications/revaluations | - | - | (324) | (181) | | Cash flow (payments) | (59) | - | (155) | (158) | | As of June 30 | 395 | 449 | 873 | 1,412 | [Note 25 Capital Expenditure and Commitments](index=25&type=section&id=Note%2025%20Capital%20Expenditure%20and%20Commitments) For the six months ended June 30, 2025, the Group's capital expenditure significantly increased, primarily due to the acquisition of HKEX headquarters property; future capital expenditure commitments also substantially grew, mainly concentrated on headquarters property, property, plant, and equipment, and intangible assets - For the six months ended June 30, 2025, the Group's capital expenditure was HKD **2.657 billion** (2024: HKD **612 million**), with HKD **1.805 billion** used for the acquisition of HKEX headquarters property[47](index=47&type=chunk) - As of June 30, 2025, contracted but unprovided capital expenditure commitments were HKD **4,201 million** (December 31, 2024: HKD **222 million**), primarily including HKD **4,009 million** for the HKEX headquarters property[47](index=47&type=chunk) Capital Expenditure Commitments | Category | June 30, 2025 (HKD Million) | December 31, 2024 (HKD Million) | Change (%) | | :--- | :--- | :--- | :--- | | **Contracted but unprovided:** | | | | | - HKEX headquarters property | 4,009 | - | N/A | | - Other property, plant and equipment | 16 | 26 | -38.5% | | - Intangible assets | 176 | 196 | -10.2% | | **Approved but not contracted:** | | | | | - Property, plant and equipment | 980 | 662 | 48.0% | | - Intangible assets | 651 | 818 | -20.4% | | **Total** | **5,832** | **1,702** | **242.7%** | [Note 26 Contingent Liabilities](index=26&type=section&id=Note%2026%20Contingent%20Liabilities) As of June 30, 2025, the Group has several contingent liabilities, including potential requirements by the SFC to replenish compensation funds, indemnity undertakings to the Collector of Stamp Revenue, and commitments for HKSCC's winding-up liabilities - May be required by the SFC to replenish the Unified Exchange Compensation Fund, involving an amount not exceeding HKD **71 million**[49](index=49&type=chunk) - Undertaking to indemnify the Collector of Stamp Revenue for underpaid stamp duty by participants, with a maximum total liability of HKD **104 million**[49](index=49&type=chunk) - Commitment to bear HKSCC's winding-up liabilities and costs, limited to HKD **50 million**[49](index=49&type=chunk) [Note 27 Significant Related Party Transactions](index=26&type=section&id=Note%2027%20Significant%20Related%20Party%20Transactions) This note discloses key management personnel compensation; for the six months ended June 30, 2025, total key management personnel compensation decreased, primarily due to a reduction in share-based employee compensation benefits - Total key management personnel compensation decreased by **10.1%** from HKD **179 million** in 2024 to HKD **161 million** in 2025[48](index=48&type=chunk) - Share-based employee compensation benefits decreased from HKD **87 million** in 2024 to HKD **55 million** in 2025[48](index=48&type=chunk) Key Management Personnel Compensation | Category | As of June 30, 2025 (HKD Million) | As of June 30, 2024 (HKD Million) | Change (%) | | :--- | :--- | :--- | :--- | | Salaries and other short-term employee benefits | 100 | 87 | 14.9% | | Share-based employee compensation benefits | 55 | 87 | -36.8% | | Retirement benefit expenses | 6 | 5 | 20.0% | | **Total** | **161** | **179** | **-10.1%** | [Note 28 Assets Charged](index=27&type=section&id=Note%2028%20Assets%20Charged) LME Clear receives securities and gold as non-cash collateral from clearing participants and holds securities as collateral for overnight tri-party reverse repurchase agreements; these non-cash collaterals are not recorded in the Group's condensed consolidated statement of financial position, but some have been re-pledged to investment agents, custodians, and banks - The fair value of non-cash collateral received by LME Clear totaled USD **2.702 billion** (HKD **21.211 billion**), used for margins submitted by clearing participants[50](index=50&type=chunk) - LME Clear holds securities as collateral for overnight tri-party reverse repurchase agreements, with a fair value of USD **7.311 billion** (HKD **57.391 billion**)[51](index=51&type=chunk) - These non-cash collaterals are not recorded in the Group's condensed consolidated statement of financial position[52](index=52&type=chunk) [Note 29 Capital Management](index=27&type=section&id=Note%2029%20Capital%20Management) As of June 30, 2025, the Group allocated HKD **4 billion** from shareholders' funds to support the risk management systems of its clearing houses, with HKD **2.16 billion** injected as capital into HKSCC, SEHK Options Clearing House, and Futures Clearing Corporation - The Group allocated HKD **4 billion** (December 31, 2024: HKD **4 billion**) from shareholders' funds to support the risk management systems of its clearing houses[53](index=53&type=chunk) - Of this, HKD **2.16 billion** (December 31, 2024: HKD **2.16 billion**) was injected as capital into HKSCC, SEHK Options Clearing House, and Futures Clearing Corporation[53](index=53&type=chunk) [Note 30 Fair Value of Financial Assets and Liabilities](index=28&type=section&id=Note%2030%20Fair%20Value%20of%20Financial%20Assets%20and%20Liabilities) This note discloses the classification of financial assets and liabilities measured at fair value and details the valuation methods for Level 3 investments (e.g., equity interests in Fusion Bank, Huakong Qingjiao, Guangzhou Futures Exchange); the carrying amounts of short-term financial assets and liabilities approximate their fair values - Financial assets and liabilities are classified by fair value hierarchy levels (Level 1, 2, 3), with Level 1 using quoted prices in active markets, Level 2 using observable market data, and Level 3 using unobservable data[54](index=54&type=chunk)[56](index=56&type=chunk) - The Group holds unlisted equity interests in Fusion Bank Limited, Huakong Qingjiao Information Technology (Beijing) Co., Ltd., and Guangzhou Futures Exchange, which are classified as Level 3 investments[57](index=57&type=chunk)[58](index=58&type=chunk) - The total fair value of Level 3 investments was HKD **334 million** (December 31, 2024: HKD **329 million**), estimated using market approach[58](index=58&type=chunk) Financial Assets and Liabilities Measured at Fair Value | Category | June 30, 2025 (HKD Million) | December 31, 2024 (HKD Million) | | :--- | :--- | :--- | | **Financial Assets** | | | | Financial assets measured at fair value (Total) | 47,359 | 58,262 | | Derivative financial instruments (Total) | 58,848 | 67,747 | | **Total (Assets)** | **106,207** | **126,009** | | **Financial Liabilities** | | | | Derivative financial instruments (Total) | 58,920 | 67,863 | | **Total (Liabilities)** | **58,920** | **67,863** | Fair Value of Financial Assets and Liabilities Not Measured at Fair Value | Category | June 30, 2025 (Carrying Amount) (HKD Million) | June 30, 2025 (Fair Value) (HKD Million) | December 31, 2024 (Carrying Amount) (HKD Million) | December 31, 2024 (Fair Value) (HKD Million) | | :--- | :--- | :--- | :--- | :--- | | **Assets** | | | | | | Financial assets measured at amortized cost: Debt securities due after one year | 1,411 | 1,459 | 1,439 | 1,443 | | Financial assets measured at amortized cost: Other financial assets due after one year | 78 | 65 | 89 | 67 | | **Liabilities** | | | | | | Borrowings: Put option granted to non-controlling interests | 395 | 402 | 452 | 455 | | Financial guarantee provided to Collector of Stamp Revenue | 20 | 43 | 20 | 35 |