香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並表明概不就因本公告全部或任何部分內容而產生或依賴該等內 容而引致的任何損失承擔任何責任。 XXF GROUP HOLDINGS LIMITED 喜相逢集團控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：2473） 截至2025年6月30日止六個月的 中期業績公告 董事會欣然宣佈本集團截至2025年6月30日止六個月的未經審計綜合中期業績， 連同截至2024年6月30日止六個月的比較數字。 | 財務摘要 | | | | | --- | --- | --- | --- | | | 截至6月30日 | | | | | 止六個月 | | | | | 2025年 | 2024年 | 同比變動 | | | 人民幣千元 | 人民幣千元 | | | | 未經審計 | 未經審計 | | | 收益 | 769,151 | 658,651 | 16.8% | | 毛利 | 230,874 | 209,260 | 10.3% | | 除所得稅前利潤 | 27,920 | 27,064 | 3.2% | | 期間 ...

[Financial Highlights](index=3&type=section&id=Financial%20Highlights) [Profitability and Operating Data](index=3&type=section&id=Profitability%20and%20Operating%20Data) For the six months ended June 30, 2025, the company's profitability steadily improved, with revenue increasing by 11.0% to RMB 5.705 billion and profit attributable to equity holders growing by 8.6% to RMB 858 million, while gross profit margin slightly rose by 0.2 percentage points to 41.5% Profitability Data for the Six Months Ended June 30, 2025 | Indicator | 2025 (Unaudited) | 2024 (Unaudited) | Change | | :--- | :--- | :--- | :--- | | **Revenue** | RMB 5,704.8 million | RMB 5,141.3 million | +11.0% | | **Gross Profit** | RMB 2,366.5 million | RMB 2,125.0 million | +11.4% | | **Operating Profit** | RMB 1,137.3 million | RMB 1,060.4 million | +7.2% | | **Profit Attributable to Equity Holders** | RMB 857.7 million | RMB 789.7 million | +8.6% | | **Basic Earnings Per Share** | RMB 41.5 cents | RMB 38.2 cents | +8.6% | | **Gross Profit Margin** | 41.5% | 41.3% | +0.2 percentage points | | **Operating Profit Margin** | 19.9% | 20.6% | -0.7 percentage points | [Balance Sheet and Cash Flow Data](index=4&type=section&id=Balance%20Sheet%20and%20Cash%20Flow%20Data) As of June 30, 2025, the company maintained a healthy asset position and ample liquidity, with net cash inflow from operating activities significantly increasing by 227.2% to RMB 524 million and net cash growing by 7.5% to RMB 4.301 billion Asset and Liquidity Data as of June 30, 2025 | Indicator | As of June 30, 2025 | As of December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | **Equity Attributable to Equity Holders** | RMB 10,048.8 million | RMB 9,375.2 million | +7.2% | | **Net Cash Inflow from Operating Activities** | RMB 523.8 million | RMB 160.1 million | +227.2% | | **Net Cash** | RMB 4,300.7 million | RMB 4,001.7 million | +7.5% | | **Current Ratio** | 3.8 | 3.6 | +0.2 | | **Inventory Turnover Days** | 109 days | 107 days | +2 days | | **Trade Receivables and Bills Receivable Turnover Days** | 146 days | 149 days | -3 days | | **Trade Payables and Bills Payable Turnover Days** | 71 days | 88 days | -17 days | [Interim Results Overview](index=5&type=section&id=Interim%20Results%20Overview) [Performance and Store Network Summary](index=5&type=section&id=Performance%20and%20Store%20Network%20Summary) In the first half of 2025, the company achieved significant growth across all business segments, with total revenue increasing by 11.0% to RMB 5.70 billion and profit attributable to equity holders growing by 8.6% to RMB 858 million - Revenue increased by **11.0%** to **RMB 5.70 billion**, with profit attributable to equity holders growing by **8.6%** to **RMB 858 million**[10](index=10&type=chunk)[11](index=11&type=chunk) - E-commerce business showed strong performance, with revenue significantly increasing by **45.0%** year-on-year to **RMB 1.82 billion**[14](index=14&type=chunk) - 361º Children's business achieved steady growth, with revenue increasing by **11.4%** year-on-year to **RMB 1.26 billion**[12](index=12&type=chunk) - The Board recommended an interim dividend of **20.4 HK cents** per share, with a payout ratio of **45.0%**[15](index=15&type=chunk) - As of the end of the period, the company operated **5,669 361° stores** and **2,494 361° Children sales outlets** in mainland China, along with **1,357 sales outlets** in overseas markets[17](index=17&type=chunk) [Chairman's Statement](index=7&type=section&id=Chairman's%20Statement) [Overall Performance and Brand Strategy](index=7&type=section&id=Overall%20Performance%20and%20Brand%20Strategy) In the first half of 2025, the Group achieved a 11.0% year-on-year revenue increase to RMB 5.7 billion and an 8.6% growth in profit attributable to equity holders to RMB 858 million, while consistently enhancing its professional and international brand image through strategic sponsorships and product innovations H1 2025 Performance Summary | Indicator | Amount | Year-on-Year Growth | | :--- | :--- | :--- | | Revenue | RMB 5.7 billion | 11.0% | | Profit Attributable to Equity Holders | RMB 858 million | 8.6% | - The Board recommended an interim dividend of **20.4 HK cents** per share, with a payout ratio of **45.0%**[20](index=20&type=chunk) - The core brand strategy focuses on "professionalization, youthfulness, and internationalization," strengthening its professional image through sponsoring major events like the Asian Winter Games and collaborating with international sports organizations such as World Aquatics[21](index=21&type=chunk)[25](index=25&type=chunk) - The company launched the first signature shoe "JOKER1 GT" for global brand ambassador Nikola Jokić and successfully held his first "China Tour" event, enhancing the brand's international recognition[28](index=28&type=chunk) [Children's Business and Channel Expansion](index=10&type=section&id=Children's%20Business%20and%20Channel%20Expansion) The 361º Children's business, positioned as a "Youth Sports Expert," continues to drive high-quality growth with 2,494 sales outlets, while the Group expands its omnichannel retail presence, including 49 "Super Stores" and 1,357 overseas sales outlets - 361º Children's business is positioned as a "Youth Sports Expert" and is one of the core engines for the Group's steady growth[31](index=31&type=chunk) - As of the end of the period, the number of 361º Children's sales outlets reached **2,494**, with continuous upgrades to store image[35](index=35&type=chunk) - The new retail format "Super Stores" has accumulated **49 locations** as of June 30, 2025[39](index=39&type=chunk) - Accelerated international expansion includes **1,357 offline sales outlets** across the Americas, Europe, and Belt and Road markets, with the first overseas direct-operated store opened in Kuala Lumpur, Malaysia[39](index=39&type=chunk) [Sustainable Development and Outlook](index=12&type=section&id=Sustainable%20Development%20and%20Outlook) The Group integrates sustainable development into its corporate strategy, focusing on green production, product R&D, and social welfare, while aiming to deepen its brand positioning and expand its business ecosystem globally - Integrating sustainable development (ESG) concepts into corporate strategy, promoting deep integration of green technology and product R&D[40](index=40&type=chunk) - Actively fulfilling social responsibility, for example, by promptly donating supplies to disaster areas after the Tibet earthquake in January 2025[40](index=40&type=chunk) - Looking ahead, the Group will continue to deepen its brand positioning, expand its business ecosystem, and achieve more breakthroughs and value accumulation on the global stage[41](index=41&type=chunk) [Management Discussion and Analysis](index=13&type=section&id=Management%20Discussion%20and%20Analysis) [Industry Review](index=13&type=section&id=Industry%20Review) In the first half of 2025, China's economy demonstrated resilience with 5.3% GDP growth, while the domestic consumer market, particularly sports consumption, saw accelerated transformation driven by supportive policies and technological innovation - In the first half of 2025, China's GDP grew by **5.3%** year-on-year, with the domestic consumer market showing diversified, digitalized, and refined development trends[44](index=44&type=chunk)[45](index=45&type=chunk) - The state has issued multiple policies to support the development of the sports industry, focusing on the ice and snow economy, event economy, outdoor economy, and upgrading of sports goods[45](index=45&type=chunk)[46](index=46&type=chunk) - Technological innovation continues to stimulate new momentum in the sports goods industry, while various sports events (e.g., Asian Winter Games, "Cun Chao") have strong带动 effects[48](index=48&type=chunk) - The domestic children's sportswear market has significant long-term growth potential amid upgraded birth support policies and changing parenting concepts[51](index=51&type=chunk) [Business Review](index=16&type=section&id=Business%20Review) The Group maintained its "professionalization, youthfulness, and internationalization" brand positioning, optimizing its retail network to 5,669 core brand stores and 49 "Super Stores," while achieving strong growth in children's, international, and e-commerce businesses, with e-commerce revenue share increasing to 31.8% [Brand, Positioning and Business Model](index=16&type=section&id=Brand%2C%20Positioning%20and%20Business%20Model) 361º Group, a leading comprehensive sports goods company in China, maintains a "professional, youthful, and international" brand positioning, focusing on the mass professional sports market through an efficient distribution business model - Brand positioning is "professional, youthful, and international," providing consumers with high-value mass professional sports products[55](index=55&type=chunk) - Adopts a distribution business model where first-tier distributors exclusively distribute products in their respective regions, allowing the company to focus on brand management and product R&D[56](index=56&type=chunk) - Holds four ordering fairs annually, typically six months before new product launches, to ensure production delivery times and effectively enhance the certainty of sales revenue[58](index=58&type=chunk) [Retail Network](index=17&type=section&id=Retail%20Network) As of June 30, 2025, the Group operated 5,669 361º core brand stores in China, with an optimized store structure and an average area of 156 square meters, while successfully launching 49 "Super Stores" as a new retail format - As of June 30, 2025, the Group had **5,669 361º brand stores**, with an average single-store area of **156 square meters**[60](index=60&type=chunk) - The new retail format "Super Stores" has accumulated **49 locations**, including **4 dedicated children's Super Stores**, effectively enhancing the shopping experience and brand image[61](index=61&type=chunk) 361º Core Brand Authorized Retail Stores by Region | Region | Number of Stores (As of June 30, 2025) | % of Total | | :--- | :--- | :--- | | East | 1,141 | 20.1% | | South | 684 | 12.1% | | West | 1,252 | 22.1% | | North | 2,592 | 45.7% | | **Total** | **5,669** | **100.0%** | [Brand Promotion and Marketing](index=19&type=section&id=Brand%20Promotion%20and%20Marketing) The Group built a rich brand resource matrix by sponsoring major sports events, professional teams, and elite athletes, significantly enhancing its international influence and professional image in running and basketball through strategic partnerships and IP collaborations - Continuously served as an official partner of the Olympic Council of Asia for **16 years**, becoming the first sports brand to sponsor both the Asian Games and Asian Winter Games simultaneously[70](index=70&type=chunk) - Signed a new partnership with World Aquatics, becoming a global partner for 2026–2029, expanding the brand's overseas presence[70](index=70&type=chunk) - In the running sector, launched its proprietary IP "Track No. 3 10KM Speed Series"; in basketball, its proprietary event "Touchdown and Ignite" has achieved global expansion and entered Japan[71](index=71&type=chunk)[78](index=78&type=chunk) - Successfully broke into younger consumer segments by collaborating with popular IPs such as Xiaoliuya and Peppa Pig to launch co-branded products[81](index=81&type=chunk) [361º Children Business](index=31&type=section&id=361%C2%BA%20Children%20Business) The 361º Children's business, positioned as a "Youth Sports Expert," recorded revenue of RMB 1.261 billion, a 11.4% year-on-year increase, accounting for 22.1% of the Group's total revenue, with 2,494 sales outlets and continuous channel image upgrades 361º Children Business Performance | Indicator | Amount/Quantity | Year-on-Year Growth | | :--- | :--- | :--- | | Revenue | RMB 1,260.8 million | +11.4% | | % of Group's Total Revenue | 22.1% | - | | Number of Sales Outlets | 2,494 | - | - Product lines expanded upwards to the **16-year-old age group**, introducing innovative technologies like FLASH technology and arch adaptive system technology to enhance product performance[105](index=105&type=chunk) - Channel image continues to upgrade, with fourth-generation and fifth-generation concept stores collectively accounting for **90.9%**[107](index=107&type=chunk) [361º International Business](index=34&type=section&id=361%C2%BA%20International%20Business) During the review period, the Group's international business achieved steady growth, with revenue of RMB 87.6 million, a 19.7% year-on-year increase, accounting for 1.5% of total revenue, supported by 1,357 overseas sales outlets and the opening of its first direct-operated store in Malaysia 361º International Business Performance | Indicator | Amount/Quantity | Year-on-Year Growth | | :--- | :--- | :--- | | Revenue | RMB 87.6 million | +19.7% | | % of Group's Total Revenue | 1.5% | - | | Number of Overseas Sales Outlets | 1,357 | - | - In January 2025, the first overseas direct-operated store was opened in Kuala Lumpur, Malaysia, with good operational performance[118](index=118&type=chunk) [E-commerce Business](index=34&type=section&id=E-commerce%20Business) The Group's e-commerce business demonstrated strong growth momentum, with revenue reaching RMB 1.817 billion, a significant 45.0% year-on-year increase, and its contribution to total revenue rising from 24.4% to 31.8% E-commerce Business Performance | Indicator | Amount | Year-on-Year Growth | | :--- | :--- | :--- | | Revenue | RMB 1,816.9 million | +45.0% | | % of Group's Total Revenue | 31.8% | - | - E-commerce business has become one of the key drivers of the Group's business growth, primarily selling through platforms such as Tmall, Taobao, JD.com, and Vipshop[119](index=119&type=chunk)[122](index=122&type=chunk) - In Q1 and Q2 2025, e-commerce omnichannel GMV achieved year-on-year growth of **35%-40%** and **20%**, respectively[122](index=122&type=chunk) [Production and Research & Development](index=35&type=section&id=Production%20and%20Research%20%26%20Development) The Group employs a flexible production model combining in-house manufacturing and OEM outsourcing, with R&D expenses accounting for 2.8% of total revenue in H1, continuously launching professional products with new technologies and holding 870 patents - Adopts a production model combining in-house manufacturing and OEM outsourcing, with approximately **33.0%** of footwear products and **19.0%** of apparel being self-produced[124](index=124&type=chunk)[126](index=126&type=chunk) - R&D expenses accounted for **2.8%** of total revenue in the first half, with an estimated full-year range of **3% to 4%**[127](index=127&type=chunk)[6](index=6&type=chunk) - Continuously launches new technology products, such as "Feibiao FUTURE2" and "Qianhang 1.0" running shoes, "DVD3" and "JOKER1 GT" basketball shoes, and expands into categories like badminton, cycling, and women's training[132](index=132&type=chunk)[134](index=134&type=chunk)[135](index=135&type=chunk) - As of June 30, 2025, the Group had obtained **870 patents** and had **832 technical personnel** involved in product R&D[140](index=140&type=chunk) [Awards and Sustainable Development](index=40&type=section&id=Awards%20and%20Sustainable%20Development) During the review period, the Group received multiple accolades, including "Best IR Hong Kong Stock Company," while actively integrating ESG principles into its operations through eco-friendly materials, green procurement, social responsibility, and enhanced corporate governance - Awarded "8th New Fortune Best IR Hong Kong Stock Company (H-share)" and "16th Tianma Award for Investor Relations Management of Hong Kong Listed Companies," among other capital market awards[142](index=142&type=chunk) - Widely applies environmentally friendly materials in products, such as the "Feibiao FUTURE2" running shoes, which use **30%** eco-friendly yarn[145](index=145&type=chunk) - Actively fulfills social responsibility, for example, by promptly donating **RMB 8 million** worth of winter supplies to the disaster area after the Tibet earthquake in January 2025[146](index=146&type=chunk) [Financial Review](index=42&type=section&id=Financial%20Review) In the first half, the Group's financial performance was robust, with revenue increasing by 11.0% to RMB 5.705 billion, driven by strong growth in adult and children's footwear, while gross profit margin slightly rose to 41.5% and operating cash inflow remained strong [Revenue Analysis](index=42&type=section&id=Revenue%20Analysis) During the review period, the Group's revenue increased by 11.0% to RMB 5.705 billion, primarily driven by strong growth in adult and children's footwear, while apparel categories adjusted average selling prices to boost sales Revenue Breakdown by Product Category (RMB thousands) | Product Category | H1 2025 | % of Total | H1 2024 | % of Total | Change | | :--- | :--- | :--- | :--- | :--- | :--- | | **Adult Footwear** | 2,574,949 | 45.1% | 2,283,242 | 44.4% | +12.8% | | **Adult Apparel** | 1,601,482 | 28.1% | 1,575,714 | 30.7% | +1.6% | | **Children's Footwear** | 711,620 | 12.5% | 556,627 | 10.8% | +27.8% | | **Children's Apparel** | 521,850 | 9.1% | 564,668 | 11.0% | -7.6% | | **Others** | 294,929 | 5.2% | 161,033 | 3.1% | +83.2% | | **Total** | **5,704,830** | **100.0%** | **5,141,284** | **100.0%** | **+11.0%** | - The average wholesale selling prices for adult and children's apparel were reduced by **4.5%** and **6.3%** respectively, to enhance value-for-money and boost sales volume[152](index=152&type=chunk)[155](index=155&type=chunk) [Cost, Gross Profit and Expense Analysis](index=45&type=section&id=Cost%2C%20Gross%20Profit%20and%20Expense%20Analysis) In the first half, cost of sales increased by 10.7% to RMB 3.338 billion, in line with revenue growth, leading to an 11.4% increase in gross profit to RMB 2.366 billion and a slight rise in gross profit margin to 41.5%, while selling and distribution expenses increased due to higher advertising and e-commerce platform fees - The Group's overall gross profit margin slightly increased from **41.3%** to **41.5%**, with adult footwear and apparel gross profit margins improving by **0.5** and **1.1 percentage points** respectively[161](index=161&type=chunk)[162](index=162&type=chunk) - Selling and distribution expenses increased by **13.2%** year-on-year to **RMB 1.037 billion**, with advertising and promotion expenses at **RMB 577 million**, accounting for **10.1%** of revenue[168](index=168&type=chunk) - R&D expenses within administrative expenses increased by **12.1%** year-on-year to **RMB 160 million**, accounting for **2.8%** of total revenue[171](index=171&type=chunk)[172](index=172&type=chunk) [Liquidity, Capital Structure and Working Capital](index=49&type=section&id=Liquidity%2C%20Capital%20Structure%20and%20Working%20Capital) As of the period end, the Group maintained a healthy cash position with RMB 4.612 billion in cash and cash equivalents and a low debt-to-asset ratio of 2.2%, while working capital turnover days increased to 184 days primarily due to a significant reduction in trade payables turnover days - Net cash inflow from operating activities was **RMB 524 million**, primarily contributed by profit before tax[178](index=178&type=chunk) - The debt-to-asset ratio (total bank borrowings/total assets) was **2.2%**, indicating a very healthy financial position[184](index=184&type=chunk) Working Capital Turnover Days | Indicator | As of June 30, 2025 | As of December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Inventory Turnover Days | 109 | 107 | +2 | | Trade Receivables and Bills Receivable Turnover Days | 146 | 149 | -3 | | Trade Payables and Bills Payable Turnover Days | 71 | 88 | -17 | | **Working Capital Turnover Days** | **184** | **168** | **+16** | [Dividends](index=53&type=section&id=Dividends) The Board resolved to declare an interim dividend of 20.4 HK cents per share, an increase from the previous year, with the payout ratio rising to 45.0% and return on equity improving to 8.8%, reflecting enhanced profitability and commitment to shareholder returns - Declared an interim dividend of **20.4 HK cents** per share, higher than **16.5 HK cents** in the same period last year[194](index=194&type=chunk) - The payout ratio reached **45.0%**, a steady increase from **40.3%** in the first half of 2024[194](index=194&type=chunk) - Return on equity (ROE) rose to **8.8%**, showing continuous improvement for three consecutive reporting periods[194](index=194&type=chunk) [Outlook](index=54&type=section&id=Outlook) Looking ahead to H2 2025, the Group will continue to prioritize consumer-centricity, strengthen its "professional, youthful, and international" brand positioning, and expand its global market reach through omnichannel development and cross-border e-commerce - Will continue to solidify the "professional, youthful, and international" brand positioning, focusing on technological innovation and brand building[201](index=201&type=chunk) - The children's brand will extend its product matrix around structural changes in demand, strengthening its positioning as a "Youth Sports Expert"[201](index=201&type=chunk) - Channel development will fully promote online-offline integration, expanding global market coverage through dual empowerment of cross-border e-commerce and overseas offline outlets[201](index=201&type=chunk) [Condensed Consolidated Financial Statements](index=55&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss](index=55&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) This statement presents the income, costs, expenses, and profit for the six months ended June 30, 2025, showing revenue of RMB 5.705 billion, operating profit of RMB 1.137 billion, and profit attributable to equity holders of RMB 858 million Condensed Consolidated Statement of Profit or Loss (For the six months ended June 30) | Item (RMB thousands) | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | **Revenue** | **5,704,830** | **5,141,284** | | Cost of sales | (3,338,380) | (3,016,287) | | **Gross Profit** | **2,366,450** | **2,124,997** | | Operating profit | 1,137,251 | 1,060,445 | | Profit before income tax | 1,131,854 | 1,052,282 | | **Profit for the period** | **872,396** | **821,709** | | **Profit attributable to equity holders of the Company** | **857,690** | **789,703** | | **Basic and diluted earnings per share (RMB cents)** | **41.48** | **38.19** | [Condensed Consolidated Statement of Financial Position](index=57&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This statement reflects the assets, liabilities, and equity as of June 30, 2025, with total assets of RMB 14.129 billion, total liabilities of RMB 3.612 billion, and net assets of RMB 10.517 billion, indicating a strong short-term solvency position Condensed Consolidated Statement of Financial Position Summary (As of reporting period end) | Item (RMB thousands) | As of June 30, 2025 (Unaudited) | As of December 31, 2024 (Audited) | | :--- | :--- | :--- | | **Non-current assets** | 1,335,978 | 1,355,479 | | **Current assets** | 12,793,009 | 12,058,073 | | **Total assets** | **14,128,987** | **13,413,552** | | **Current liabilities** | 3,396,808 | 3,362,734 | | **Non-current liabilities** | 214,826 | 221,690 | | **Total liabilities** | **3,611,634** | **3,584,424** | | **Net assets** | **10,517,353** | **9,829,128** | | **Total equity attributable to equity holders of the Company** | 10,048,761 | 9,375,242 | [Condensed Consolidated Statement of Cash Flows](index=60&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This statement details cash inflows and outflows for the period, with net cash generated from operating activities of RMB 524 million, net cash used in investing activities of RMB 36 million, and net cash used in financing activities of RMB 149 million, resulting in a net increase of RMB 348 million in cash and cash equivalents to RMB 4.603 billion Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Item (RMB thousands) | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | **Net cash generated from operating activities** | **523,764** | **160,093** | | **Net cash used in investing activities** | **(35,918)** | **(104,181)** | | **Net cash used in financing activities** | **(149,174)** | **(241,440)** | | Net increase/(decrease) in cash and cash equivalents | 338,672 | (185,528) | | Cash and cash equivalents at January 1 | 4,254,236 | 3,596,489 | | **Cash and cash equivalents at June 30** | **4,602,802** | **3,410,468** | [Notes to the Condensed Consolidated Interim Financial Statements](index=61&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) These notes provide detailed explanations and supplementary information for the financial statements, covering key aspects such as basis of preparation, accounting policy changes, revenue and segment reporting, expense breakdowns, taxation, earnings per share calculation, balance sheet item details, dividend policy, related party transactions, and fair value of financial instruments - Revenue is divided into two reportable segments: adult and children's apparel, with the adult segment contributing **RMB 4.445 billion** and the children's segment contributing **RMB 1.260 billion**[225](index=225&type=chunk)[226](index=226&type=chunk) - As of the end of the reporting period, total trade receivables and bills receivable amounted to **RMB 4.744 billion**, with **92.7%** aged within **180 days**, indicating an improved aging structure[190](index=190&type=chunk)[242](index=242&type=chunk) - The Board declared an interim dividend of **20.4 HK cents** per ordinary share, totaling approximately **RMB 386 million**; the final dividend for the year ended December 31, 2024 (10.0 HK cents per share, totaling approximately RMB 191 million) was paid during the period[254](index=254&type=chunk)[255](index=255&type=chunk) [Corporate Governance and Other Information](index=77&type=section&id=Corporate%20Governance%20and%20Other%20Information) [Corporate Governance and Shareholder Interests](index=77&type=section&id=Corporate%20Governance%20and%20Shareholder%20Interests) During this reporting period, the company complied with the Corporate Governance Code, disclosing detailed shareholdings of directors and major shareholders, with the Audit Committee reviewing the interim financial statements - The company has complied with the code provisions of the Corporate Governance Code as set out in the Listing Rules for the six months ended June 30, 2025[269](index=269&type=chunk) - Major shareholders and executive directors Ding Wuhou, Ding Huihuang, Ding Huirong, and others collectively hold over **60%** of the company's shares through discretionary trusts[270](index=270&type=chunk)[282](index=282&type=chunk) - The company adopted a new share option scheme in April 2023, but no share options have been granted, exercised, cancelled, or lapsed since its adoption[275](index=275&type=chunk)[280](index=280&type=chunk) - The Audit Committee has reviewed the Group's unaudited interim financial statements for the six months ended June 30, 2025[288](index=288&type=chunk) [Shareholder Information](index=82&type=section&id=Shareholder%20Information) [Dividend and Registration Information](index=82&type=section&id=Dividend%20and%20Registration%20Information) This section provides key dates and shareholder registration information for the interim dividend payment, which is 20.4 HK cents per share, with an ex-dividend date of September 10, 2025, and payment around September 25 Interim Dividend Timetable | Event | Date | | :--- | :--- | | Interim Results Announcement | August 12, 2025 | | Ex-dividend Date for Interim Dividend | September 10, 2025 | | Book Closure Period | September 12 to September 16, 2025 | | Record Date | September 16, 2025 | | Interim Dividend Payment Date | On or about September 25, 2025 | - The Board resolved to declare an interim dividend of **20.4 HK cents** per share[290](index=290&type=chunk) [Company Information](index=83&type=section&id=Company%20Information) [Basic Company Information](index=83&type=section&id=Basic%20Company%20Information) This section lists the company's core information, including board members, committee compositions, company secretary, registered office, principal place of business, auditors, legal advisors, and principal bankers, with the company's stock code being 01361 - Executive Directors include Ding Wuhou, Ding Huihuang (Chairman), Ding Huirong, and Wang Jiabi[296](index=296&type=chunk) - The company's auditors are UHY CPA Limited[295](index=295&type=chunk) - The company's stock code is **01361**, and its website is www.361sport.com[295](index=295&type=chunk)[296](index=296&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（「聯交所」）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。 天津濱海泰達物流集團股份有限公司 Tianjin Binhai Teda Logistics (Group) Corporation Limited* （於中華人民共和國註冊成立之股份有限公司） （股份代號：8348） 截至二零二五年六月三十日止六個月的 中期業績公告 天津濱海泰達物流集團股份有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然宣佈本公司 及其附屬公司截至二零二五年六月三十日止六個月的未經審核簡明合併財務業績。本公告載列 本公司二零二五年中期報告（「中期報告」）全文，並遵守聯交所GEM（「GEM」）證券上市規則 （「GEM上市規則」）中有關中期業績初步公告隨附資料的相關規定。中期報告的印刷版本將適 時寄發予本公司股東，並可於聯交所網站www.hkexnews.hk及本公司網站www.tbtl.cn閱覽。 承董事會命 天津濱海泰達物流集團股份有限公司 主席 楊衛紅 中國， ...

[Financial Summary](index=1&type=section&id=Financial%20Summary) The group reported a 12.4% increase in revenue to $1,229 million and a 16.7% rise in net profit to $98 million for the first half of 2025 2025 H1 Financial Summary | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Revenue (Million USD) | 1,229 | 1,094 | | Net Profit (Million USD) | 98 | 84 | | Interim Dividend (HK Cents per Share) | 16.3 | 13.8 | [Condensed Consolidated Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the group's financial performance and position, including detailed statements of profit or loss and financial position [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, group revenue increased by 12.4% to $1.229 billion, with net profit rising 16.8% to $98.32 million Key Profit or Loss Data | Metric (Thousand USD) | 2025 H1 (Unaudited) | 2024 H1 (Unaudited) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 1,229,475 | 1,093,672 | +12.4% | | Gross Profit | 242,602 | 213,452 | +13.7% | | Profit Before Tax | 119,707 | 102,912 | +16.3% | | Profit for the Period | 98,323 | 84,214 | +16.8% | | Profit Attributable to Owners of the Company | 98,265 | 84,012 | +16.9% | | Basic Earnings Per Share (US Cents) | 3.44 | 2.94 | +17.0% | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets grew to $2.338 billion, driven by increases in inventory and cash, maintaining a robust capital structure Key Balance Sheet Data | Metric (Thousand USD) | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | **Assets** | | | | Non-current Assets | 906,731 | 894,116 | | Current Assets | 1,430,841 | 1,360,337 | | **Total Assets** | **2,337,572** | **2,254,453** | | **Equity and Liabilities** | | | | Total Equity | 1,540,295 | 1,535,446 | | Non-current Liabilities | 52,834 | 54,075 | | Current Liabilities | 744,443 | 664,932 | | **Total Equity and Liabilities** | **2,337,572** | **2,254,453** | [Notes to the Condensed Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed disclosures on revenue, segment information, dividends, and earnings per share, supporting the condensed financial statements [3. Revenue and Segment Information](index=7&type=section&id=3.%20Revenue%20and%20Segment%20Information) Group revenue increased across all five product categories and major geographical markets, with leisurewear and sportswear being the largest segments Revenue by Product Segment (Thousand USD) | Product Segment | 2025 H1 | 2024 H1 | YoY Change | | :--- | :--- | :--- | :--- | | Leisurewear | 339,672 | 304,981 | +11.4% | | Sportswear and Outdoorwear | 312,906 | 278,285 | +12.4% | | Denim | 262,202 | 237,697 | +10.3% | | Intimate Wear | 209,784 | 191,517 | +9.5% | | Sweaters | 104,911 | 81,192 | +29.2% | | **Total** | **1,229,475** | **1,093,672** | **+12.4%** | Revenue by Geographical Location (Thousand USD) | Region | 2025 H1 | 2024 H1 | YoY Change | | :--- | :--- | :--- | :--- | | Asia Pacific | 478,286 | 417,729 | +14.5% | | North America | 462,934 | 414,566 | +11.7% | | Europe | 252,705 | 230,447 | +9.7% | | Other Countries/Regions | 35,550 | 30,930 | +15.0% | | **Total** | **1,229,475** | **1,093,672** | **+12.4%** | [6. Dividends](index=12&type=section&id=6.%20Dividends) The Board declared an interim dividend of 16.3 HK cents per ordinary share for the six months ended June 30, 2025, an increase from the prior year - The Board declared an interim dividend of **16.3 HK cents per ordinary share**, totaling approximately **$59.24 million**, an increase from **13.8 HK cents per share** (totaling approximately **$50.43 million**) in the prior year[31](index=31&type=chunk) [7. Earnings Per Share](index=12&type=section&id=7.%20Earnings%20Per%20Share) Basic earnings per share attributable to owners of the company increased to 3.44 US cents for the six months ended June 30, 2025 Basic Earnings Per Share Calculation | Metric | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Profit for the Period Attributable to Owners of the Company (Thousand USD) | 98,265 | 84,012 | | Weighted Average Number of Ordinary Shares (Thousand Shares) | 2,852,822 | 2,852,822 | | **Basic Earnings Per Share (US Cents)** | **3.44** | **2.94** | [Management Discussion and Analysis](index=16&type=section&id=Management%20Discussion%20and%20Analysis) This section reviews market conditions, business performance, financial results, sustainability efforts, and future outlook, highlighting strategic responses to challenges [Market Overview](index=16&type=section&id=Market%20Overview) The apparel industry showed strong momentum in H1 2025, particularly in Asia and Europe, despite new US tariffs posing challenges to key export countries - The US announced significant reciprocal tariffs on global trade partners on April 2, 2025, imposing high differential rates on major apparel exporting countries like China and Vietnam, creating headwinds for the group's business[43](index=43&type=chunk) - The group identifies three key factors to mitigate tariff impacts: its FOB revenue structure (tariffs borne by customers), strong pricing power of brand customers, and the core competitiveness of industry suppliers[44](index=44&type=chunk) [Business Review](index=17&type=section&id=Business%20Review) In H1 2025, the group achieved balanced growth across all segments, with revenue up 12.4% to $1.229 billion and net profit up 16.8% to $98 million 2025 H1 Performance Highlights | Metric | 2025 H1 | 2024 H1 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue (Million USD) | 1,229 | 1,094 | +12.4% | | Gross Profit (Million USD) | 243 | 213 | +13.7% | | Gross Margin | 19.7% | 19.5% | +0.2pp | | Net Profit (Million USD) | 98 | 84 | +16.8% | | Net Margin | 8.0% | 7.7% | +0.3pp | - The Board resolved to declare an interim dividend of **16.3 HK cents per share**, representing a payout ratio of **60%**[46](index=46&type=chunk) - Capital expenditure for the period was **$60 million**, an increase from **$52 million** in the prior year[46](index=46&type=chunk) [Financial Review](index=18&type=section&id=Financial%20Review) The group maintained a robust financial position with revenue growth across all categories and regions, improved margins, and a strong net cash position of $517 million [Revenue Analysis](index=18&type=section&id=Revenue%20Analysis) Total revenue increased by 12.4%, driven by deeper collaboration with key brand customers, with sweaters showing the fastest growth and Asia Pacific being the largest market Revenue and Proportion by Product Category | Product Category | 2025 H1 Revenue (Thousand USD) | Proportion | 2024 H1 Revenue (Thousand USD) | Proportion | | :--- | :--- | :--- | :--- | :--- | | Leisurewear | 339,672 | 27.6% | 304,981 | 27.9% | | Sportswear and Outdoorwear | 312,906 | 25.5% | 278,285 | 25.4% | | Denim | 262,202 | 21.3% | 237,697 | 21.7% | | Intimate Wear | 209,784 | 17.1% | 191,517 | 17.5% | | Sweaters | 104,911 | 8.5% | 81,192 | 7.5% | | **Total** | **1,229,475** | **100.0%** | **1,093,672** | **100.0%** | [Gross Profit Analysis](index=19&type=section&id=Gross%20Profit%20Analysis) Overall gross margin slightly increased to 19.7%, with leisurewear and intimate wear improving due to efficiency gains, while sweaters saw a decline Gross Profit and Gross Margin by Product Category | Product Category | 2025 H1 Gross Profit (Thousand USD) | Gross Margin | 2024 H1 Gross Profit (Thousand USD) | Gross Margin | | :--- | :--- | :--- | :--- | :--- | | Leisurewear | 69,801 | 20.5% | 60,344 | 19.8% | | Sportswear and Outdoorwear | 64,869 | 20.7% | 58,158 | 20.9% | | Denim | 42,892 | 16.4% | 39,322 | 16.5% | | Intimate Wear | 43,637 | 20.8% | 37,311 | 19.5% | | Sweaters | 21,403 | 20.4% | 18,317 | 22.6% | | **Total** | **242,602** | **19.7%** | **213,452** | **19.5%** | [Liquidity and Financial Resources](index=20&type=section&id=Liquidity%20and%20Financial%20Resources) The group maintained a strong financial position with $155 million in operating cash flow, a cash balance of $512 million, and zero gearing ratio Key Financial Position Metrics | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Operating Cash Flow (Six Months) | $155 million | $44 million (2024 H1) | | Cash Balance | $512 million | $427 million | | Bank Borrowings | $122 million | $147 million | | Net Cash Position | $517 million | Not Applicable | | Gearing Ratio | Zero | Zero | - Cash conversion cycle increased from **71 days** to **84 days**, with trade receivables turnover days rising from **52 days** to **62 days**, and inventory turnover days from **48 days** to **59 days**[56](index=56&type=chunk) [Sustainability](index=22&type=section&id=Sustainability) The group prioritizes sustainability with its "Crystal Sustainability Vision 2030" and a net-zero commitment by 2050, achieving CDP climate A-list status - The group established its "Crystal Sustainability Vision 2030 (CSV2030)" and committed to achieving net-zero emissions by **2050**, with an interim target of reducing total greenhouse gas emissions by **35%** by **2030**[65](index=65&type=chunk) - The group demonstrated excellent climate action, ranking on the CDP Climate A List (Leadership) for two consecutive years and making its debut on the CDP 2024 Supplier Engagement Rating A List[69](index=69&type=chunk) - The company actively empowers talent and gives back to the community, for example, providing empowerment programs for over **70,300 female employees** and planning to plant **2 million trees** globally by **2030**[70](index=70&type=chunk)[73](index=73&type=chunk) [Outlook and Prospects](index=24&type=section&id=Outlook%20and%20Prospects) The group plans to expand capacity and deepen vertical integration in Vietnam, prioritize European and Asian markets, and explore new production bases to mitigate tariff impacts - To counter the impact of US tariffs, the group will prioritize developing European and Asian markets and will establish a new partnership with a leading European brand customer in the second half of the year[75](index=75&type=chunk) - The group will continue to invest in its production network and vertical supply chain in Vietnam, while actively evaluating the feasibility of establishing new production bases in peripheral European regions to enhance responsiveness to the European market[74](index=74&type=chunk)[75](index=75&type=chunk) - Leveraging its robust operating cash flow, the group is committed to continuing to deliver substantial returns to shareholders through stable and attractive dividend distributions[75](index=75&type=chunk) [Corporate Governance and Other Information](index=25&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section details the interim dividend declaration and the company's adherence to high standards of corporate governance practices [Interim Dividend](index=25&type=section&id=Interim%20Dividend) The Board declared an interim dividend of 16.3 HK cents (approximately 2.1 US cents) per ordinary share, payable on September 18, 2025 - The Board resolved to declare an interim dividend of **16.3 HK cents per ordinary share**[76](index=76&type=chunk) - To determine dividend entitlements, the share transfer register will be suspended from **September 5 to September 9, 2025**. The record date is **September 9, 2025**, with an expected payment date of **September 18, 2025**[76](index=76&type=chunk)[77](index=77&type=chunk)[78](index=78&type=chunk) [Corporate Governance Practices](index=26&type=section&id=Corporate%20Governance%20Practices) The company maintained high corporate governance standards, complying with listing rules, and the Audit Committee reviewed financial statements and internal controls - The company consistently complied with all code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules for the six months ended June 30, 2025[81](index=81&type=chunk) - The Audit Committee reviewed the group's financial reporting, internal control systems, and risk management, recommending the Board adopt the unaudited condensed consolidated financial statements for the six months ended June 30, 2025[83](index=83&type=chunk)[84](index=84&type=chunk) - The Board is responsible for and satisfied with the effectiveness of the group's risk management and internal control systems[85](index=85&type=chunk)

CABBEEN IS ONE OF THE LEADING CHINESE DESIGNER BRANDS. The Group designs and sells apparels for men and women. Its main brands include Cabbeen and 2AM. Its retail network covers 29 provinces, autonomous regions, municipalities and special administrative regions and several online platforms in the People's Republic of China. 卡賓是中國領先的設計師品 牌之一。 2025 中期報告 2025 INTERIM REPORT CABBEEN FASHION LIMITED 卡賓服飾有限公司 (Incorporated in the Cayman Islands with limited liability) Stock code 股份代號:2030 （於開曼群島註冊成立的有限公司） ABOUT C ...

[Characteristics of GEM](index=2&type=section&id=Characteristics%20of%20GEM) The GEM market is positioned as a listing platform for small and medium-sized companies, entailing higher investment risks, potential for significant market volatility, and lower liquidity - The GEM market is positioned as a listing platform for small and medium-sized companies, carrying **higher investment risks**, potential for **significant market volatility**, and **lower liquidity**[2](index=2&type=chunk) - Hong Kong Exchanges and Clearing Limited and the Stock Exchange make no statement as to the accuracy or completeness of this interim report and accept no liability whatsoever[2](index=2&type=chunk) [Executive Summary](index=4&type=section&id=Executive%20Summary) This section provides a concise overview of the company's key financial performance for the six months ended June 30, 2025, highlighting revenue and profit trends Key Financial Summary for the Six Months Ended June 30, 2025 | Metric | 2025年6月30日 (HKD Thousands) | 2024年6月30日 (HKD Thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 26,148 | 34,574 | -24.49% | | Photography Services Revenue | 14,264 | 23,441 | -39.15% | | Medical Services Revenue | 11,884 | 11,133 | +6.75% | | Gross Profit | 8,218 | 10,839 | -24.18% | | Gross Margin | 31.43% | 31.35% | +0.08% | | Loss Attributable to Equity Holders of the Company | 1,138 | 199 | +471.86% (Loss widened) | - The decrease in photography services revenue was primarily due to a slowdown in demand for identity photos for updated travel documents, intensified price competition, and the increasing popularity of self-service kiosks for personal document applications[7](index=7&type=chunk) - The Directors do not recommend the declaration of any interim dividend for the six months ended June 30, 2025[8](index=8&type=chunk) [Company Information](index=5&type=section&id=Company%20Information) This section details the company's governance structure, including board members, key personnel, and fundamental corporate registration and listing details [Board of Directors and Key Personnel](index=5&type=section&id=Board%20of%20Directors%20and%20Key%20Personnel) This section lists the company's board members, committee compositions, authorized representatives, company secretary, compliance officer, and auditor - The Board of Directors includes executive directors such as Mr Chan Wing Chai (Chairman), Mr Chan Tin Kei (Chief Executive Officer), and Dr Chan Wing Lok, non-executive directors such as Mr Riccardo Costi and Ms Wong Sin Yee, and independent non-executive directors such as Mr Ngai Ah Kak, Mr Hui Che Chun, and Mr Kwok Chun Wah[9](index=9&type=chunk) - The Audit Committee, Remuneration Committee, and Nomination Committee have all been established, with their respective chairmen and members clearly defined[9](index=9&type=chunk) [Company Basic Information](index=6&type=section&id=Company%20Basic%20Information) The company is registered in the Cayman Islands, with its Hong Kong headquarters in Causeway Bay, stock code 8483, and listed on February 28, 2018 - The company's registered office is in the Cayman Islands, with its Hong Kong headquarters and principal place of business located at 14/F, McDonald's Building, 48 Yee Wo Street, Causeway Bay, Hong Kong[9](index=9&type=chunk)[10](index=10&type=chunk) - The company's stock code is **8483**, and its listing date was **February 28, 2018**[10](index=10&type=chunk) [Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This statement presents the company's financial performance, showing a shift from profit to loss for the six months ended June 30, 2025, primarily driven by decreased revenue Key Data from Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric (HKD Thousands) | 2025年6月30日 (6 months) | 2024年6月30日 (6 months) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 26,148 | 34,574 | -24.49% | | Cost of Services | (17,930) | (23,735) | -24.46% | | Gross Profit | 8,218 | 10,839 | -24.18% | | Operating (Loss)/Profit | (152) | 739 | Shifted from profit to loss | | (Loss)/Profit Before Tax | (698) | 392 | Shifted from profit to loss | | (Loss)/Profit for the Period | (751) | 252 | Shifted from profit to loss | | (Loss)/Profit Attributable to Equity Holders of the Company | (1,138) | (199) | Loss widened | | Loss Per Share (HK Cents) — Basic and Diluted | (0.14) | (0.02) | Loss widened | [Unaudited Condensed Consolidated Statement of Financial Position](index=9&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This statement provides a snapshot of the company's assets, liabilities, and equity as of June 30, 2025, indicating changes in liquidity and capital structure Key Data from Condensed Consolidated Statement of Financial Position | Metric (HKD Thousands) | 2025年6月30日 | 2024年12月31日 | Change | | :--- | :--- | :--- | :--- | | Total Non-Current Assets | 22,435 | 19,032 | +17.88% | | Total Current Assets | 21,203 | 26,778 | -20.82% | | Cash and Bank Balances | 15,246 | 21,320 | -28.49% | | Total Current Liabilities | 14,795 | 13,149 | +12.52% | | Net Assets | 18,467 | 24,163 | -23.58% | | Total Equity Attributable to Equity Holders of the Company | 17,952 | 24,035 | -25.31% | - Right-of-use assets increased from **HKD 13,928 thousand** as of December 31, 2024, to **HKD 17,733 thousand** as of June 30, 2025[13](index=13&type=chunk) [Unaudited Condensed Consolidated Statement of Changes in Equity](index=11&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This statement outlines the changes in the company's equity attributable to shareholders for the six months ended June 30, 2025, reflecting losses and dividend distributions Key Data from Condensed Consolidated Statement of Changes in Equity | Metric (HKD Thousands) | 2025年6月30日 (Unaudited) | 2024年1月1日 (Audited) | | :--- | :--- | :--- | | Total Equity Attributable to Equity Holders of the Company | 17,952 | 28,686 | | (Loss)/Profit for the Period | (1,138) | (199) | | Dividends | (4,800) | (4,500) | - As of June 30, 2025, the total equity attributable to equity holders of the Company was **HKD 17,952 thousand**, a significant decrease from **HKD 28,686 thousand** as of January 1, 2024[15](index=15&type=chunk) - Dividends of **HKD 4,800 thousand** were distributed in the first half of 2025, compared to **HKD 4,500 thousand** in the first half of 2024[15](index=15&type=chunk) [Unaudited Condensed Consolidated Statement of Cash Flows](index=12&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This statement details the cash inflows and outflows from operating, investing, and financing activities for the six months ended June 30, 2025, showing a net decrease in cash Key Data from Condensed Consolidated Statement of Cash Flows | Metric (HKD Thousands) | 2025年6月30日 (6 months) | 2024年6月30日 (6 months) | Change | | :--- | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 4,684 | 6,292 | -25.56% | | Net Cash Generated from Investing Activities | 62 | 3,833 | -98.38% | | Net Cash Used in Financing Activities | (10,675) | (6,064) | +76.04% (Outflow increased) | | Net (Decrease)/Increase in Cash and Cash Equivalents | (5,929) | 4,061 | Shifted from increase to decrease | | Cash and Cash Equivalents at End of Period | 15,246 | 24,919 | -38.70% | - Net cash generated from investing activities significantly decreased, primarily because **HKD 5,000 thousand** of restricted bank deposits were released in 2024, with no such item in 2025[16](index=16&type=chunk) - Net cash used in financing activities increased, mainly due to the payment of **HKD 4,800 thousand** in dividends in 2025[17](index=17&type=chunk) [Notes to the Unaudited Condensed Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanatory notes to the unaudited condensed consolidated financial statements, covering accounting policies, segment information, and other financial disclosures [1. General Information](index=14&type=section&id=1.%20General%20Information) Masterpiece Photo Group Holdings Limited is incorporated in the Cayman Islands, listed on GEM on February 28, 2018, and primarily provides photography and medical services in Hong Kong and mainland China - The Company was incorporated in the Cayman Islands, and its shares were listed on GEM of the Stock Exchange on **February 28, 2018**[18](index=18&type=chunk) - The Group is principally engaged in (i) providing photography services in Hong Kong and mainland China; and (ii) providing medical services in Hong Kong[18](index=18&type=chunk) [2. Basis of Preparation](index=14&type=section&id=2.%20Basis%20of%20Preparation) The unaudited condensed consolidated financial statements are prepared in accordance with HKAS 34 and GEM Listing Rules, applying consistent accounting policies with the 2024 annual financial statements - The financial statements are prepared in accordance with **HKAS 34** and the **GEM Listing Rules**[20](index=20&type=chunk) - The accounting policies used in preparation are consistent with those applied in the consolidated financial statements for the year ended December 31, 2024[20](index=20&type=chunk) [3. New and Revised Hong Kong Financial Reporting Standards](index=15&type=section&id=3.%20New%20and%20Revised%20Hong%20Kong%20Financial%20Reporting%20Standards) The Group first adopted HKAS 21 (Amendment) "Lack of Exchangeability" from January 1, 2025, without resulting in any changes to accounting policies or retrospective adjustments - The Group first adopted **HKAS 21 (Amendment) "Lack of Exchangeability"** from **January 1, 2025**[21](index=21&type=chunk) - The adoption of the new standard did not result in any changes to accounting policies or retrospective adjustments[21](index=21&type=chunk) [4. Revenue and Segment Information](index=15&type=section&id=4.%20Revenue%20and%20Segment%20Information) The Group's revenue primarily derives from photography and medical services, with photography services experiencing a significant decline while medical services show slight growth [(a) Revenue](index=15&type=section&id=4.(a)%20Revenue) This section details the Group's revenue breakdown by major service lines, showing a significant decrease in photography services revenue and a modest increase in medical services revenue Revenue from Contracts with Customers by Major Service Line | Service Line | 2025年6月30日 (HKD Thousands) | 2024年6月30日 (HKD Thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Photography Services Revenue | 14,264 | 23,441 | -39.15% | | Medical Services Revenue | 11,884 | 11,133 | +6.75% | | **Total Revenue** | **26,148** | **34,574** | **-24.49%** | [(b) Segment Reporting](index=16&type=section&id=4.(b)%20Segment%20Reporting) The Group operates three reportable segments: Hong Kong photography services, mainland China photography services, and Hong Kong medical services, with varying performance across each - The Group has three reportable segments: Hong Kong photography services, mainland China photography services, and Hong Kong medical services[25](index=25&type=chunk) Segment Revenue and Profit/(Loss) | Segment (HKD Thousands) | 2025年6月30日 (Revenue) | 2024年6月30日 (Revenue) | 2025年6月30日 (Profit/(Loss)) | 2024年6月30日 (Profit/(Loss)) | | :--- | :--- | :--- | :--- | :--- | | Hong Kong Photography Services | 14,255 | 22,887 | 3,964 | 6,908 | | Mainland China Photography Services | 9 | 554 | (151) | (2) | | Hong Kong Medical Services | 11,884 | 11,133 | 1,282 | 456 | | **Consolidated Total** | **26,148** | **34,574** | **5,095** | **7,362** | - For the six months ended June 30, 2025, revenue from external customers in Hong Kong was **HKD 26,139 thousand**, and in mainland China was **HKD 9 thousand**[29](index=29&type=chunk) [5. Finance Costs](index=18&type=section&id=5.%20Finance%20Costs) For the six months ended June 30, 2025, finance costs primarily consisted of interest on lease liabilities, which increased to HKD 546 thousand from HKD 347 thousand in the prior year Composition of Finance Costs | Cost Type (HKD Thousands) | 2025年6月30日 (6 months) | 2024年6月30日 (6 months) | | :--- | :--- | :--- | | Interest on Lease Liabilities | 546 | 345 | | Interest on Bank Loans | – | 2 | | **Total** | **546** | **347** | [6. (Loss)/Profit Before Tax](index=19&type=section&id=6.%20(Loss)%2FProfit%20Before%20Tax) For the six months ended June 30, 2025, the Group recorded a loss before tax of HKD 698 thousand, a shift from a profit of HKD 392 thousand in the prior period, influenced by depreciation and staff costs Composition of Loss/Profit Before Tax | Item (HKD Thousands) | 2025年6月30日 (6 months) | 2024年6月30日 (6 months) | | :--- | :--- | :--- | | Depreciation of Property, Plant and Equipment | 745 | 891 | | Depreciation of Right-of-Use Assets | 4,344 | 4,130 | | Total Staff Costs | 7,137 | 9,135 | | Variable Lease Payments Not Included in the Measurement of Lease Liabilities | 4,423 | 9,290 | [7. Income Tax](index=20&type=section&id=7.%20Income%20Tax) Income tax expense for the six months ended June 30, 2025, decreased to HKD 53 thousand, with no provision for mainland China income tax due to losses incurred by subsidiaries Income Tax Expense | Item (HKD Thousands) | 2025年6月30日 (6 months) | 2024年6月30日 (6 months) | | :--- | :--- | :--- | | Current tax Hong Kong Profits Tax | 176 | 157 | | Deferred tax | (123) | (17) | | **Total** | **53** | **140** | - No provision for mainland China income tax was made for mainland China subsidiaries due to losses incurred[32](index=32&type=chunk) [8. Dividends](index=21&type=section&id=8.%20Dividends) Directors approved a special dividend of HKD 4,800 thousand for the year ended December 31, 2024, but do not recommend any interim dividend for the six months ended June 30, 2025 - On **May 22, 2025**, the Directors approved the payment of a special dividend of **HKD 4,800 thousand** for the year ended December 31, 2024[34](index=34&type=chunk) - The Directors do not recommend the declaration of any interim dividend for the six months ended June 30, 2025[34](index=34&type=chunk) [9. Loss Per Share](index=21&type=section&id=9.%20Loss%20Per%20Share) For the six months ended June 30, 2025, basic and diluted loss per share widened to 0.14 HK cents, with no potential dilutive shares outstanding during the period Loss Per Share | Metric | 2025年6月30日 (6 months) | 2024年6月30日 (6 months) | | :--- | :--- | :--- | | Loss Attributable to Equity Holders of the Company (HKD Thousands) | 1,138 | 199 | | Weighted Average Number of Ordinary Shares in Issue (Shares) | 800,000,000 | 800,000,000 | | Basic and Diluted Loss Per Share (HK Cents) | (0.14) | (0.02) | [10. Property, Plant and Equipment](index=21&type=section&id=10.%20Property%2C%20Plant%20and%20Equipment) For the six months ended June 30, 2025, the Group made no additions to property, plant, and equipment and disposed of fully depreciated assets - For the six months ended June 30, 2025, the Group made no additions to property, plant and equipment[36](index=36&type=chunk) - The Group disposed of property, plant and equipment with a carrying amount of zero[36](index=36&type=chunk) [11. Right-of-Use Assets](index=22&type=section&id=11.%20Right-of-Use%20Assets) For the six months ended June 30, 2025, the Group recognized approximately HKD 8,062 thousand in right-of-use assets and lease liabilities, primarily for self-service identity photo booth locations - The Group recognized right-of-use assets and lease liabilities of approximately **HKD 8,062 thousand** for leasing premises for the installation of self-service identity photo booths[37](index=37&type=chunk) [12. Trade Receivables](index=22&type=section&id=12.%20Trade%20Receivables) As of June 30, 2025, total trade receivables decreased to HKD 1,933 thousand from HKD 2,630 thousand as of December 31, 2024, with most balances within 0-30 days Ageing Analysis of Trade Receivables | Ageing | 2025年6月30日 (HKD Thousands) | 2024年12月31日 (HKD Thousands) | | :--- | :--- | :--- | | 0 to 30 days | 848 | 1,829 | | 31 to 60 days | 454 | 510 | | Over 60 days | 631 | 291 | | **Total** | **1,933** | **2,630** | - Medical service payments are typically settled within **60 days**, and lessors of self-service photo booth locations are granted credit terms of **0 to 20 days**[38](index=38&type=chunk) [13. Other Receivables, Deposits and Prepayments](index=23&type=section&id=13.%20Other%20Receivables%2C%20Deposits%20and%20Prepayments) As of June 30, 2025, total other receivables, deposits, and prepayments increased to HKD 4,677 thousand, primarily driven by deposits for rent and utilities and prepayments Composition of Other Receivables, Deposits and Prepayments | Item (HKD Thousands) | 2025年6月30日 | 2024年12月31日 | | :--- | :--- | :--- | | Deposits for Rent and Utilities | 3,070 | 2,922 | | Prepayments | 1,266 | 428 | | Other Receivables | 341 | 116 | | **Total** | **4,677** | **3,466** | [14. Trade Payables](index=23&type=section&id=14.%20Trade%20Payables) As of June 30, 2025, total trade payables decreased to HKD 164 thousand from HKD 316 thousand as of December 31, 2024, with all balances within 0-30 days Ageing Analysis of Trade Payables | Ageing | 2025年6月30日 (HKD Thousands) | 2024年12月31日 (HKD Thousands) | | :--- | :--- | :--- | | 0 to 30 days | 164 | 316 | [15. Other Payables and Accruals](index=24&type=section&id=15.%20Other%20Payables%20and%20Accruals) As of June 30, 2025, total other payables and accruals increased to HKD 3,668 thousand, primarily due to accrued expenses, salaries, and bonus provisions Composition of Other Payables and Accruals | Item (HKD Thousands) | 2025年6月30日 | 2024年12月31日 | | :--- | :--- | :--- | | Accrued Expenses | 2,437 | 1,933 | | Provision for Salaries and Bonuses Payable | 576 | 635 | | Other Lease and License Fees Payable | 574 | 376 | | Other Payables | 81 | 19 | | **Total** | **3,668** | **2,963** | [16. Share Capital](index=24&type=section&id=16.%20Share%20Capital) As of June 30, 2025, the company's authorized share capital was HKD 50,000 thousand, with issued and fully paid share capital of HKD 8,000 thousand, unchanged since listing Share Capital Structure | Item | Number of Shares | HKD Thousands | | :--- | :--- | :--- | | Authorized Share Capital (Ordinary Shares of HKD 0.01 each) | 5,000,000,000 | 50,000 | | Issued and Fully Paid Ordinary Shares (of HKD 0.01 each) | 800,000,000 | 8,000 | - The Company's share capital has remained unchanged since its listing date (**February 28, 2018**)[42](index=42&type=chunk) [17. Capital Commitments](index=25&type=section&id=17.%20Capital%20Commitments) As of June 30, 2025, the Group's capital commitments primarily related to property, plant, and equipment, amounting to HKD 219 thousand, similar to the prior year-end Capital Commitments | Item (HKD Thousands) | 2025年6月30日 | 2024年12月31日 | | :--- | :--- | :--- | | Property, Plant and Equipment | 219 | 213 | [18. Related Party Transactions](index=25&type=section&id=18.%20Related%20Party%20Transactions) The Group engaged in various related party transactions during the period, including purchases from ME Group, lease payments to director-owned companies, and consulting fees to non-controlling shareholders Summary of Related Party Transactions | Transaction Type (HKD Thousands) | 2025年6月30日 (6 months) | 2024年6月30日 (6 months) | | :--- | :--- | :--- | | Purchase of Consumables (ME Group) | – | 3 | | Lease Payments (Director-owned Company) | 437 | 436 | | Salaries and Other Benefits (Ms. Au Yeung Ying Ho) | 76 | 88 | | Consulting Fees (Non-controlling Shareholder) | 1,885 | 1,699 | | Consulting Fees (Dr. Chan Wing Lok-owned Company) | 383 | 376 | Directors' and Key Management's Remuneration | Remuneration Type (HKD Thousands) | 2025年6月30日 (6 months) | 2024年6月30日 (6 months) | | :--- | :--- | :--- | | Short-term Benefits | 3,241 | 3,976 | | Post-employment Benefits | 54 | 61 | | **Total** | **3,295** | **4,037** | [19. Events After Reporting Period](index=26&type=section&id=19.%20Events%20After%20Reporting%20Period) The memorandum of understanding and its supplement between Causeway Treasure and the potential buyer regarding a possible disposal of the company's shares expired on July 4, 2025 - The memorandum of understanding between Causeway Treasure and the potential buyer regarding a possible disposal of the Company's shares expired on **July 4, 2025**[46](index=46&type=chunk) [Management Discussion and Analysis](index=27&type=section&id=Management%20Discussion%20and%20Analysis) This section provides management's perspective on the Group's operational and financial performance, strategic initiatives, and risk management for the reporting period [Business Review](index=27&type=section&id=Business%20Review) The Group's business review covers photography services facing competition and digital kiosk impact, and medical services expanding with strategic recruitment and facility upgrades [Photography Services Business](index=27&type=section&id=Photography%20Services%20Business) The photography services business faces intense price competition and increasing adoption of electronic identity document services, prompting the company to upgrade equipment and diversify its business model - The photography services business faces intensified price competition from traditional suppliers and the increasing popularity of electronic identity photo services provided by the HKSAR Government's self-service kiosks for personal document applications[48](index=48&type=chunk) - The Company is reallocating resources for upgrading and maintaining self-service identity photo booths, media advertising and promotion, and exploring upgrading its business model to diversify core operations by allocating more funds and resources to IT infrastructure[49](index=49&type=chunk) [Medical Services Business](index=28&type=section&id=Medical%20Services%20Business) The Group is actively expanding its medical services business by recruiting professionals, acquiring equipment, securing venues, and pursuing related opportunities, aligning with Hong Kong's primary healthcare blueprint - The Group is actively seeking to recruit and identify suitable medical practitioners, equipment, venues, and related business opportunities to further expand its medical services business[50](index=50&type=chunk) - With the Hong Kong Government's release of the Primary Healthcare Blueprint and increasing public health awareness, the Company believes that medical and related healthcare services have **enormous expansion potential** and are a core strategy for business diversification[50](index=50&type=chunk) - The Company will reallocate resources to develop its medical business, including purchasing equipment, upgrading computer equipment and software, and establishing or acquiring new clinics, medical, and related businesses[50](index=50&type=chunk) [Financial Review](index=29&type=section&id=Financial%20Review) This section reviews the Group's financial performance for the six months ended June 30, 2025, detailing changes in revenue, costs, gross profit, and net loss [Revenue](index=29&type=section&id=Revenue) Total revenue decreased by 24.49%, primarily due to a significant decline in photography services, partially offset by growth in medical services Revenue Changes | Business Type | 2025年6月30日 (HKD Thousands) | 2024年6月30日 (HKD Thousands) | Change | | :--- | :--- | :--- | :--- | | Total Revenue | 26,148 | 34,574 | -24.49% | | Photography Services | 14,264 | 23,441 | -39.15% | | Medical Services | 11,884 | 11,133 | +6.75% | - The decrease in photography services revenue was primarily due to a slowdown in demand for travel document photos, intensified price competition, and the increasing popularity of electronic document service kiosks[52](index=52&type=chunk) [Cost of Services](index=29&type=section&id=Cost%20of%20Services) Cost of services decreased by 24.46% for the six months ended June 30, 2025, aligning with the reduction in overall revenue Cost of Services Changes | Metric | 2025年6月30日 (HKD Thousands) | 2024年6月30日 (HKD Thousands) | Change | | :--- | :--- | :--- | :--- | | Cost of Services | 17,930 | 23,735 | -24.46% | [Gross Profit and Gross Margin](index=29&type=section&id=Gross%20Profit%20and%20Gross%20Margin) Gross profit decreased by 24.18%, while gross margin slightly increased by 0.08 percentage points, indicating cost efficiency despite lower revenue Gross Profit and Gross Margin Changes | Metric | 2025年6月30日 (HKD Thousands) | 2024年6月30日 (HKD Thousands) | Change | | :--- | :--- | :--- | :--- | | Gross Profit | 8,218 | 10,839 | -24.18% | | Gross Margin | 31.43% | 31.35% | +0.08% | [Other Income](index=29&type=section&id=Other%20Income) Other income significantly decreased by 85.23%, primarily due to a reduction in bank interest income Other Income Changes | Metric | 2025年6月30日 (HKD Thousands) | 2024年6月30日 (HKD Thousands) | Change | | :--- | :--- | :--- | :--- | | Other Income | 35 | 237 | -85.23% | - The decrease in other income was primarily due to a reduction in bank interest income[55](index=55&type=chunk) [Other Gains/(Losses) Net](index=30&type=section&id=Other%20Gains%2F(Losses)%20Net) Other gains/(losses) net shifted from a loss of HKD 149 thousand to a gain of HKD 348 thousand, driven by foreign exchange gains and gains from asset disposals Other Gains/(Losses) Net Changes | Metric | 2025年6月30日 (HKD Thousands) | 2024年6月30日 (HKD Thousands) | Change | | :--- | :--- | :--- | :--- | | Other Gains/(Losses) Net | 348 | (149) | Shifted from loss to gain | - Other net gains primarily included foreign exchange gains, gains on disposal of property, plant and equipment, and gains on early termination of leases[56](index=56&type=chunk) [Administrative Expenses](index=30&type=section&id=Administrative%20Expenses) Administrative expenses decreased by 14.09%, mainly attributable to reduced staff costs and directors' remuneration Administrative Expenses Changes | Metric | 2025年6月30日 (HKD Thousands) | 2024年6月30日 (HKD Thousands) | Change | | :--- | :--- | :--- | :--- | | Administrative Expenses | 8,753 | 10,188 | -14.09% | - The decrease in administrative expenses was primarily due to reduced staff costs and directors' remuneration[57](index=57&type=chunk) [Finance Costs](index=30&type=section&id=Finance%20Costs) Finance costs increased by 57.35%, primarily driven by higher interest on lease liabilities Finance Costs Changes | Metric | 2025年6月30日 (HKD Thousands) | 2024年6月30日 (HKD Thousands) | Change | | :--- | :--- | :--- | :--- | | Finance Costs | 546 | 347 | +57.35% | - Finance costs primarily refer to interest on lease liabilities[58](index=58&type=chunk) [Income Tax](index=30&type=section&id=Income%20Tax) Income tax expense decreased by 62.14% for the six months ended June 30, 2025, reflecting the overall financial performance Income Tax Expense Changes | Metric | 2025年6月30日 (HKD Thousands) | 2024年6月30日 (HKD Thousands) | Change | | :--- | :--- | :--- | :--- | | Income Tax Expense | 53 | 140 | -62.14% | [Loss Attributable to Equity Holders of the Company](index=30&type=section&id=Loss%20Attributable%20to%20Equity%20Holders%20of%20the%20Company) The loss attributable to equity holders of the company widened, primarily due to decreased photography services revenue impacted by reduced demand and increased competition Loss Attributable to Equity Holders of the Company Changes | Metric | 2025年6月30日 (HKD Thousands) | 2024年6月30日 (HKD Thousands) | Change | | :--- | :--- | :--- | :--- | | Loss Attributable to Equity Holders of the Company | 1,138 | 199 | Loss widened | - The widening loss was primarily due to decreased photography services revenue, affected by slowing demand, intensified price competition, and the increasing popularity of electronic document service kiosks[60](index=60&type=chunk) [Segment Reporting](index=30&type=section&id=Segment%20Reporting) A detailed analysis of the Group's segment performance is provided in Note 4 to the unaudited condensed consolidated financial statements - Analysis of the Group's segment performance is detailed in Note 4 to the unaudited condensed consolidated financial statements[61](index=61&type=chunk) [Share Capital](index=31&type=section&id=Share%20Capital) The company's share capital has remained unchanged since its listing on February 28, 2018, with an authorized capital of HKD 50,000 thousand and issued capital of HKD 8,000 thousand - The Company's share capital has remained unchanged since its listing date of **February 28, 2018**[62](index=62&type=chunk) - The authorized share capital is **HKD 50,000 thousand**, and the issued share capital is **HKD 8,000 thousand**[62](index=62&type=chunk) [Employees and Remuneration Policy](index=31&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had 61 employees, a decrease from the prior year, with the Remuneration Committee responsible for reviewing executive compensation policies Number of Employees | Date | Number of Employees | | :--- | :--- | | 2025年6月30日 | 61 | | 2024年6月30日 | 69 | - The Remuneration Committee is responsible for reviewing the remuneration policies and structure for directors and senior management[63](index=63&type=chunk) [Liquidity and Capital Resources](index=31&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the Group maintained a sound financial position, but experienced decreases in total cash and equity, alongside changes in liquidity and gearing ratios Key Liquidity and Capital Resources Metrics | Metric | 2025年6月30日 | 2024年6月30日 | Change | | :--- | :--- | :--- | :--- | | Total Equity (HKD Thousands) | 18,467 | 23,879 | -22.66% | | Total Cash and Cash Equivalents (HKD Thousands) | 15,246 | 24,919 | -38.70% | | Current Ratio | 1.43 | 1.75 | -0.32 | | Quick Ratio | 1.32 | 1.68 | -0.36 | | Gearing Ratio | 57.68% | 52.20% | +5.48% | - The Group primarily funds its operations through cash flows generated from operating activities and has established an appropriate liquidity risk management framework[65](index=65&type=chunk) [Foreign Exchange Risk Management](index=32&type=section&id=Foreign%20Exchange%20Risk%20Management) The Group's currency risk primarily stems from USD-denominated cash balances held by Hong Kong entities, which is minimal due to the HKD-USD peg, and is managed through close monitoring without a hedging policy - The Group faces currency risk primarily arising from USD-denominated cash and bank balances held by its Hong Kong entities[66](index=66&type=chunk) - As the Hong Kong Dollar is pegged to the US Dollar, foreign exchange risk in respect of the US Dollar is negligible[66](index=66&type=chunk) - The Group currently has no foreign exchange hedging policy and manages foreign exchange risk by closely monitoring exchange rate fluctuations[66](index=66&type=chunk) [Significant Investments Held and Future Plans for Significant Investments and Capital Assets](index=32&type=section&id=Significant%20Investments%20Held%20and%20Future%20Plans%20for%20Significant%20Investments%20and%20Capital%20Assets) As of June 30, 2025, and 2024, the Group held no significant investments and had no future plans for significant investments or capital assets - As of **June 30, 2025, and 2024**, the Group held no significant investments and had no future plans regarding significant investments or capital assets[67](index=67&type=chunk) [Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=32&type=section&id=Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20Associates%20and%20Joint%20Ventures) As of June 30, 2025, and 2024, the Group had not undertaken any material acquisitions or disposals of subsidiaries, associates, or joint ventures - As of **June 30, 2025, and 2024**, the Group had not undertaken any material acquisitions or disposals of subsidiaries, associates, or joint ventures[68](index=68&type=chunk) [Pledge of Assets](index=32&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, and 2024, no assets of the Group were pledged as security for bank facilities - As of **June 30, 2025, and 2024**, no assets of the Group were pledged as security for bank facilities[69](index=69&type=chunk) [Contingent Liabilities](index=32&type=section&id=Contingent%20Liabilities) As of June 30, 2025, and 2024, the Group had no significant contingent liabilities - As of **June 30, 2025, and 2024**, the Group had no significant contingent liabilities[70](index=70&type=chunk) [Events After Reporting Period](index=32&type=section&id=Events%20After%20Reporting%20Period) Events after the reporting period are detailed in Note 19 to the unaudited condensed consolidated financial statements - Events after the reporting period are detailed in Note 19 to the unaudited condensed consolidated financial statements[71](index=71&type=chunk) [Dividends](index=32&type=section&id=Dividends) Dividend information is provided in Note 8 to the unaudited condensed consolidated financial statements - Dividend information is detailed in Note 8 to the unaudited condensed consolidated financial statements[72](index=72&type=chunk) [Corporate Governance and Other Information](index=33&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section covers the company's adherence to corporate governance standards, directors' and major shareholders' interests, and the use of proceeds from the share offer [Corporate Governance](index=33&type=section&id=Corporate%20Governance) The company maintains high corporate governance standards, adhering to the GEM Listing Rules' Corporate Governance Code throughout the six months ended June 30, 2025 - The Company has adopted the Corporate Governance Code set out in Appendix C1 to the GEM Listing Rules and has complied with all applicable code provisions during the reporting period[73](index=73&type=chunk) [Compliance with Required Standard of Dealings by Directors in Securities Transactions](index=33&type=section&id=Compliance%20with%20Required%20Standard%20of%20Dealings%20by%20Directors%20in%20Securities%20Transactions) The company has adopted the required standard of dealings for directors' securities transactions as per GEM Listing Rules 5.48 to 5.67, with all directors confirming compliance during the reporting period - The Company has adopted the required standard of dealings set out in Rules **5.48 to 5.67** of the GEM Listing Rules, and all Directors have confirmed compliance with this standard during the reporting period[74](index=74&type=chunk) [Changes in Directors' Information](index=33&type=section&id=Changes%20in%20Directors'%20Information) The directors confirm that there have been no changes in their information requiring disclosure under GEM Listing Rule 17.50A(1) - The Directors confirm that there have been no changes in information requiring disclosure under **Rule 17.50A(1)** of the GEM Listing Rules[75](index=75&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=33&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) 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[76](index=76&type=chunk) [Interim Dividend](index=33&type=section&id=Interim%20Dividend) The directors do not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Directors do not recommend the declaration of an interim dividend for the six months ended **June 30, 2025**[77](index=77&type=chunk) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures](index=34&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures) As of June 30, 2025, executive directors Mr. Chan Wing Chai and Mr. Chan Tin Kei held a 53.45% long position in the company's shares through their controlled corporation, Causeway Treasure Directors' Interests in the Company's Shares | Name of Director | Capacity/Nature of Interest | Number of Shares | Long/Short Position | Approximate Percentage of Total Issued Shares | | :--- | :--- | :--- | :--- | :--- | | Mr. Chan Wing Chai | Interest in a controlled corporation | 427,600,560 | Long Position | 53.45% | | Mr. Chan Tin Kei | Interest in a controlled corporation | 427,600,560 | Long Position | 53.45% | - Mr. Chan Wing Chai and Mr. Chan Tin Kei each hold approximately **47.25%** interest in Causeway Treasure[79](index=79&type=chunk)[81](index=81&type=chunk) [Substantial Shareholders' Interests and Short Positions in Shares, Underlying Shares and Debentures](index=36&type=section&id=Substantial%20Shareholders'%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures) As of June 30, 2025, Causeway Treasure was the largest shareholder with 53.45% of the company's shares, alongside other substantial shareholders including Ms. Au Yeung Ying Ho, ME Group International Plc., and Mr. Cheung Kam Ting Substantial Shareholders' Interests in the Company's Shares | Name/Designation | Capacity/Nature of Interest | Number of Shares | Long/Short Position | Approximate Percentage of the Company's Shareholding | | :--- | :--- | :--- | :--- | :--- | | Causeway Treasure | Beneficial owner | 427,600,560 | Long Position | 53.45% | | Ms. Au Yeung Ying Ho | Interest in a controlled corporation | 427,600,560 | Long Position | 53.45% | | ME Group International Plc. | Beneficial owner | 109,972,500 | Long Position | 13.75% | | Mr. Cheung Kam Ting | Beneficial owner | 62,426,940 | Long Position | 7.80% | - Mr. Chan Wing Chai, Ms. Au Yeung Ying Ho, and Mr. Chan Tin Kei have entered into a confirmation deed, confirming their past acting in concert and their intention to continue consolidating control over the Group[82](index=82&type=chunk) [Share Option Scheme](index=37&type=section&id=Share%20Option%20Scheme) The company's share option scheme, adopted on February 8, 2018, allows for the grant of up to 10% of issued shares, with no options granted, lapsed, exercised, or cancelled during the six months ended June 30, 2025 - The share option scheme was adopted on **February 8, 2018**, with a maximum number of shares that may be granted not exceeding **80,000,000 shares** (**10%** of the issued shares)[84](index=84&type=chunk) - For the six months ended **June 30, 2025**, no share options were granted, lapsed, exercised, or cancelled under the share option scheme, and there were no outstanding share options[84](index=84&type=chunk) [Directors', Controlling Shareholders' and Substantial Shareholders' Interests in Competing Business](index=37&type=section&id=Directors'%2C%20Controlling%20Shareholders'%20and%20Substantial%20Shareholders'%20Interests%20in%20Competing%20Business) Non-executive director Mr. Riccardo Costi's associates hold interests in Dedem S.P.A., a European self-service photo booth operator, which may compete with the Group, though the Board ensures independent operation - Associates of non-executive director Mr. Riccardo Costi hold interests in Dedem S.P.A. and its subsidiaries, which operate self-service identity photo booths in Europe and may constitute a competing business with the Group[86](index=86&type=chunk) - The Board comprises eight directors, including three independent non-executive directors, to properly safeguard shareholders' interests and ensure the Company operates independently from competing businesses on an arm's length basis[86](index=86&type=chunk) [Audit Committee and Review of Accounts](index=38&type=section&id=Audit%20Committee%20and%20Review%20of%20Accounts) The Audit Committee, comprising three independent non-executive directors, has reviewed the Group's unaudited condensed consolidated results and interim report for the six months ended June 30, 2025, confirming compliance with applicable standards - The Audit Committee has been established in accordance with the GEM Listing Rules and comprises three independent non-executive directors (Mr. Ngai Ah Kak, Mr. Hui Che Chun, and Mr. Kwok Chun Wah)[88](index=88&type=chunk) - The Audit Committee has reviewed the Group's unaudited condensed consolidated results and interim report for the six months ended **June 30, 2025**, and is of the opinion that they comply with applicable accounting standards, the GEM Listing Rules, and legal requirements[88](index=88&type=chunk) [Use of Proceeds from the Company's Share Offer](index=38&type=section&id=Use%20of%20Proceeds%20from%20the%20Company's%20Share%20Offer) Of the net proceeds of approximately HKD 31,852 thousand from the share offer, HKD 20,868 thousand has been utilized as of June 30, 2025, with remaining funds reallocated due to mainland China market challenges Use of Proceeds from Share Offer | Purpose | Net Proceeds Actually Utilized as of 2025年6月30日 (HKD Thousands) | Net Unutilized Proceeds as of 2025年6月30日 (HKD Thousands) | Adjusted Use of Net Proceeds as Stated in Relevant Announcements (HKD Thousands) | Expected Timeframe for Full Utilization of Unutilized Net Proceeds | | :--- | :--- | :--- | :--- | :--- | | Expansion of Self-service Identity Photo Booth Network — Guangdong Province | 6,652 | – | 6,652 | – | | Expansion of Self-service Identity Photo Booth Network — Hong Kong | 282 | – | 282 | – | | Business Development of Hong Kong Self-service Identity Photo Booth Business | 904 | 5,196 | 6,100 | 2025年12月31日 | | Purchase of Equipment for Developing Medical and Related Services | 137 | 4,463 | 4,600 | 2025年12月31日 | | Establishment or Acquisition of New Clinics, Medical and Related Businesses | 987 | 1,013 | 2,000 | 2025年12月31日 | | Upgrading of Verification Centers and IT Infrastructure | 1,688 | 312 | 2,000 | 2025年12月31日 | | General Working Capital | 10,218 | – | 10,218 | – | | **Total** | **20,868** | **10,984** | **31,852** | | - Due to mainland China market challenges and the impact of the pandemic, the original plan to expand the self-service identity photo booth network in Guangdong Province has been delayed, and some proceeds have been reallocated[91](index=91&type=chunk)[92](index=92&type=chunk) - The unutilized net proceeds have been reallocated to the business development of Hong Kong self-service identity photo booth business, purchase of equipment for medical and related services, establishment or acquisition of new clinics, and general working capital[92](index=92&type=chunk) [Language](index=41&type=section&id=Language) In case of any discrepancy between the English and Chinese versions of this interim report, the English version shall prevail - In case of any discrepancy between the English version and the Chinese translation of this interim report, the English version shall prevail[95](index=95&type=chunk) [By Order of the Board](index=41&type=section&id=By%20Order%20of%20the%20Board) This interim report is presented by Mr. Chan Wing Chai, Chairman and Executive Director, on behalf of the Board of Directors on August 8, 2025 - This interim report is presented by Mr. Chan Wing Chai, Chairman and Executive Director, on behalf of the Board of Directors on **August 8, 2025**[96](index=96&type=chunk)

® (Incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立之有限公司) 2025 INTERIM REPORT 中期報告 (Stock Code 股份代號 : 8051) 香港聯合交易所有限公司 （「聯交所」）GEM之特色 GEM的定位，乃為中小型公司提供一 個上市的市場，此等公司相比起其他 在聯交所上市的公司帶有較高投資風 險。有意投資之人士應了解投資於該 等公司之潛在風險，並應經過審慎周 詳的考慮後方作出投資決定。 由於在GEM上市的公司普遍為中小 型公司，在GEM買賣的證券可能會較 於主板買賣之證券承受較大之市場波 動風險，同時無法保證在GEM買賣之 證券會有高流通量之市場。 香港交易及結算所有限公司及聯交所 對本報告之內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明 確表示概不對因本報告全部或任何部 分內容而產生或因倚賴該等內容而引 致之任何損失承擔任何責任。 本報告的資料乃遵照聯交所GEM證券 上市規則（「GEM上市規則」）而刊載， 旨在提供有關訊智海國際控股有限公 司（「本公司」）及其附屬公司（統稱「本 ...

[Company Information](index=4&type=section&id=Company%20Information) This section provides an overview of the company's board of directors, management, and essential corporate details [Board of Directors and Management](index=4&type=section&id=Board%20of%20Directors%20and%20Management) The company's board comprises executive, non-executive, and independent non-executive directors, supported by audit, remuneration, and nomination committees, ensuring a robust corporate governance structure - Executive Directors include Mr. Gui Sihai (Chairman) and Mr. Huang Xueliang[4](index=4&type=chunk) - Ms. Zhang Huifeng serves as a Non-Executive Director[4](index=4&type=chunk) - Independent Non-Executive Directors are Mr. Nie Rui, Mr. Zhang Shimin, and Mr. Zheng Yanbin[4](index=4&type=chunk) - Mr. Zhang Shimin chairs the Audit Committee, Mr. Nie Rui chairs the Remuneration Committee, and Mr. Zheng Yanbin chairs the Nomination Committee[4](index=4&type=chunk) [Company Basic Information](index=4&type=section&id=Company%20Basic%20Information) The company discloses key information including its auditor, principal bankers, share registrar, registered office, headquarters, and primary place of business in Hong Kong, along with its website and stock code - The auditor is BDO Limited, Hong Kong[4](index=4&type=chunk) - The Hong Kong share registrar is Tricor Investor Services Limited[5](index=5&type=chunk) - The company's headquarters and principal place of business in China are located at No. 8 Yanjiang Avenue, Chizhou Economic and Technological Development Zone, Chizhou City, Anhui Province, China[5](index=5&type=chunk) - The company website is www.oceanlineport.com, and the stock code is 8502[5](index=5&type=chunk) [Unaudited Condensed Consolidated Statement of Comprehensive Income](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) This section presents the unaudited condensed consolidated statement of comprehensive income, detailing the company's financial performance over the reporting period [Results for the Six Months Ended 30 June 2025](index=6&type=section&id=Results%20for%20the%20Six%20Months%20Ended%2030%20June%202025) For the six months ended 30 June 2025, the company experienced declines in both revenue and profit, with revenue decreasing by 8.2% year-on-year and profit for the period falling by 32.6%, leading to a corresponding reduction in basic earnings per share Key Financial Performance for the Six Months Ended 30 June | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 80,368 | 87,553 | -8.2% | | Cost of services provided | (31,699) | (35,443) | -10.5% | | Gross profit | 48,669 | 52,110 | -6.6% | | Other income and gains, net | 5,675 | 9,097 | -37.6% | | Selling and distribution expenses | (227) | (591) | -61.6% | | Administrative expenses | (14,044) | (9,441) | +48.8% | | Finance costs | (29) | (44) | -34.1% | | Profit before income tax | 40,044 | 51,131 | -21.7% | | Income tax expense | (11,474) | (8,756) | +31.0% | | Profit for the period | 28,570 | 42,375 | -32.6% | | Profit for the period attributable to owners of the Company | 20,490 | 31,336 | -34.6% | | Profit for the period attributable to non-controlling interests | 8,080 | 11,039 | -26.8% | | Basic and diluted earnings per share | RMB 2.56 cents | RMB 3.92 cents | -34.7% | [Unaudited Condensed Consolidated Statement of Financial Position](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This section presents the unaudited condensed consolidated statement of financial position, outlining the company's assets, liabilities, and equity at the reporting date [Assets and Liabilities Status](index=7&type=section&id=Assets%20and%20Liabilities%20Status) As of 30 June 2025, the company's total assets and net assets both increased, with a slight rise in non-current assets and a significant improvement in net current assets, indicating a stable financial position Key Assets and Liabilities Data as of 30 June 2025 | Indicator | 30 June 2025 (RMB thousands) | 31 December 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current assets | 516,486 | 502,972 | +2.7% | | Current assets | 410,222 | 405,662 | +1.1% | | Current liabilities | 132,210 | 143,679 | -8.0% | | Net current assets | 278,012 | 261,983 | +6.1% | | Total assets less current liabilities | 794,498 | 764,955 | +3.9% | | Non-current liabilities | 37,777 | 36,229 | +4.3% | | Net assets | 756,721 | 728,726 | +3.8% | | Total equity | 756,721 | 728,726 | +3.8% | - Fixed deposits increased by **55.3%** from RMB 153,960 thousands as of 31 December 2024 to **RMB 239,101 thousands** as of 30 June 2025[8](index=8&type=chunk) - Cash and cash equivalents decreased by **40.6%** from RMB 225,918 thousands as of 31 December 2024 to **RMB 134,161 thousands** as of 30 June 2025[8](index=8&type=chunk) [Unaudited Condensed Consolidated Statement of Cash Flows](index=9&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This section presents the unaudited condensed consolidated statement of cash flows, detailing the company's cash movements from operating, investing, and financing activities [Cash Flow Analysis](index=9&type=section&id=Cash%20Flow%20Analysis) For the six months ended 30 June 2025, net cash from operating activities significantly decreased, net cash used in investing activities narrowed, and net cash used in financing activities increased, resulting in a net decrease in cash and cash equivalents Cash Flows for the Six Months Ended 30 June | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Net cash from operating activities | 13,515 | 39,126 | -65.4% | | Net cash used in investing activities | (103,175) | (243,451) | -57.6% | | Net cash used in financing activities | (2,097) | (248) | +745.6% | | Net decrease in cash and cash equivalents | (91,757) | (204,573) | -55.1% | | Cash and cash equivalents at 1 January | 225,918 | 299,267 | -24.5% | | Cash and cash equivalents at 30 June | 134,161 | 94,694 | +41.7% | - Net cash used in financing activities significantly increased, primarily due to **dividends paid to non-controlling interests of RMB 1,831 thousands**[10](index=10&type=chunk) [Unaudited Condensed Consolidated Statement of Changes in Equity](index=10&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This section presents the unaudited condensed consolidated statement of changes in equity, detailing movements in equity attributable to owners and non-controlling interests [Overview of Changes in Equity](index=10&type=section&id=Overview%20of%20Changes%20in%20Equity) For the six months ended 30 June 2025, equity attributable to owners of the company and non-controlling interests both increased, mainly driven by profit for the period and transfers to statutory reserves, alongside an internal transfer involving the sale of land use rights to non-controlling interests Changes in Equity for the Six Months Ended 30 June | Indicator | 30 June 2025 (RMB thousands) | 1 January 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Equity attributable to owners of the Company | 569,145 | 552,078 | +3.1% | | Non-controlling interests | 187,576 | 176,648 | +6.2% | | Total equity | 756,721 | 728,726 | +3.8% | - Profit and total comprehensive income for the period amounted to **RMB 27,995 thousands**, of which **RMB 20,076 thousands** was attributable to owners of the Company[11](index=11&type=chunk) - An internal transfer involving the sale of land use rights to non-controlling interests, amounting to approximately **RMB 17,952,000**, resulted in a **decrease of RMB 3,009 thousands in retained earnings** and an **increase of RMB 3,009 thousands in non-controlling interests**[11](index=11&type=chunk) [Notes to the Unaudited Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to the unaudited condensed consolidated financial statements, offering further explanations on accounting policies, estimates, and specific financial items [1. General Information](index=11&type=section&id=1.%20General%20Information) The company was incorporated in the Cayman Islands in 2017, listed on GEM of the Hong Kong Stock Exchange in 2018, and primarily engages in investment holding, with its subsidiaries operating port services in Chizhou City, Anhui Province, China - The Company was incorporated in the Cayman Islands on **30 October 2017** and listed on GEM of The Stock Exchange of Hong Kong Limited on **10 July 2018**[12](index=12&type=chunk) - The Company's principal business is investment holding, with its subsidiaries primarily engaged in port operations in Chizhou City, Anhui Province, China[12](index=12&type=chunk) - The ultimate controlling parties of the Company are Mr. Gui Sihai and his spouse, Ms. Zhang Huifeng[12](index=12&type=chunk) [2. Basis of Preparation](index=12&type=section&id=2.%20Basis%20of%20Preparation) The unaudited condensed consolidated financial statements are prepared in accordance with HKAS 34 and the GEM Listing Rules, maintaining consistent accounting policies with the annual consolidated financial statements, while adopting new and revised HKFRSs effective from 1 January 2025 - The financial statements are prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure provisions of the GEM Listing Rules[14](index=14&type=chunk) - The accounting policies used are consistent with those applied in the annual consolidated financial statements for the year ended 31 December 2024, except for the adoption of new and revised standards, amendments, and interpretations effective from **1 January 2025**[14](index=14&type=chunk) [3. Critical Accounting Estimates and Judgements](index=13&type=section&id=3.%20Critical%20Accounting%20Estimates%20and%20Judgements) The significant judgments made by management and key sources of estimation uncertainty in preparing the financial statements are consistent with those applied in the annual consolidated financial statements for the year ended 31 December 2024 - The significant judgments made by management and key sources of estimation uncertainty in preparing the financial statements are the same as those applied in the annual consolidated financial statements for the year ended 31 December 2024[15](index=15&type=chunk) [4. Segment Information](index=13&type=section&id=4.%20Segment%20Information) The Group operates in a single operating segment, providing port services, with all revenue and primary non-current assets derived from and located in China - The Group has only one business component that is internally reported to the executive directors, which is the provision of port services, hence no operating segment analysis is presented[16](index=16&type=chunk) - All of the Group's revenue for the six months ended 30 June 2025 and 2024 was derived from China[17](index=17&type=chunk) - The Group's principal non-current assets are located in or based in China[17](index=17&type=chunk) [5. Revenue](index=14&type=section&id=5.%20Revenue) The Group's revenue primarily stems from port services, totaling RMB 80,368 thousands for the six months ended 30 June 2025, a decrease from the prior year, mainly due to reduced income from bulk and general cargo services - Revenue refers to income derived from providing port services (excluding value-added tax)[18](index=18&type=chunk) Port Services Revenue Breakdown | Service Type | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total port services revenue | 80,368 | 87,553 | -8.2% | | Provision of stevedoring services - bulk and general cargo | 73,368 | 78,100 | -6.1% | | Provision of stevedoring services - containers | 1,689 | 1,433 | +17.9% | | Provision of ancillary port services | 5,311 | 8,020 | -33.8% | [6. Profit Before Income Tax](index=15&type=section&id=6.%20Profit%20Before%20Income%20Tax) For the six months ended 30 June 2025, profit before income tax was RMB 40,044 thousands, a decrease from RMB 51,131 thousands in the prior year, primarily influenced by factors such as employee benefit expenses, depreciation, and subcontracting fees Components of Profit Before Income Tax | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Inventory costs recognized as expense | 1,067 | 1,926 | | Employee benefit expenses | 13,598 | 14,073 | | Direct operating expenses of investment properties | 631 | 373 | | Depreciation of property, plant and equipment | 12,751 | 12,359 | | Repair and maintenance expenses | 2,413 | 3,078 | | Subcontracting fees | 6,541 | 9,022 | | Amortisation of deferred government grants | (445) | (445) | | Gain on land resumption | – | (924) | - For the six months ended 30 June 2025, research and development expenses amounted to approximately **RMB 2,584,000**, including employee benefit expenses of approximately **RMB 1,736,000**[23](index=23&type=chunk) [7. Income Tax Expense](index=16&type=section&id=7.%20Income%20Tax%20Expense) For the six months ended 30 June 2025, income tax expense increased to RMB 11,474 thousands, primarily due to the expiration of certain tax incentives, leading to higher China enterprise income tax Income Tax Expense | Tax Type | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current tax - China enterprise income tax | 9,183 | 7,191 | | Deferred tax charged to profit or loss | 2,291 | 1,565 | | **Total income tax expense** | **11,474** | **8,756** | - Chizhou Port Holdings' eligible projects enjoyed a **50% tax reduction** for the six months ended 30 June 2024, but this preferential period ended on **31 December 2024**[24](index=24&type=chunk) - Chizhou Port Holdings and Chizhou Niutoushan, as high-tech enterprises, are subject to enterprise income tax at a **preferential rate of 15%** for specific fiscal years[24](index=24&type=chunk) [8. Earnings Per Share](index=18&type=section&id=8.%20Earnings%20Per%20Share) For the six months ended 30 June 2025, profit for the period attributable to owners of the company was RMB 20,490 thousands, with basic and diluted earnings per share of RMB 2.56 cents, a decrease from the prior year Earnings Per Share Calculation | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit for the period attributable to owners of the Company | 20,490 | 31,336 | | Weighted average number of ordinary shares in issue during the period | 800,000,000 | 800,000,000 | | Basic and diluted earnings per share | RMB 2.56 cents | RMB 3.92 cents | - Diluted earnings per share are the same as basic earnings per share as there were no potentially dilutive ordinary shares in issue during the relevant periods[25](index=25&type=chunk) [9. Dividends](index=19&type=section&id=9.%20Dividends) The Board does not recommend the payment of an interim dividend for the six months ended 30 June 2025 - The Directors do not recommend the payment of an interim dividend for the six months ended 30 June 2025 (2024: nil)[26](index=26&type=chunk) [10. Property, Plant and Equipment](index=19&type=section&id=10.%20Property%2C%20Plant%20and%20Equipment) For the six months ended 30 June 2025, the Group's additions to property, plant and equipment amounted to approximately RMB 3,709 thousands, a decrease from the prior year Additions to Property, Plant and Equipment | Period | Additions (RMB thousands) | | :--- | :--- | | For the six months ended 30 June 2025 | 3,709 | | For the six months ended 30 June 2024 | 8,415 | [11. Trade Receivables](index=19&type=section&id=11.%20Trade%20Receivables) As of 30 June 2025, net trade receivables amounted to RMB 7,118 thousands, a decrease from 31 December 2024, with most balances falling within 0 to 30 days Net Trade Receivables | Date | Amount (RMB thousands) | | :--- | :--- | | 30 June 2025 | 7,118 | | 31 December 2024 | 7,866 | - The credit period for trade receivables generally ranges from **10 to 55 days**[28](index=28&type=chunk) Ageing Analysis of Trade Receivables (Net of Impairment Allowance) | Ageing | 30 June 2025 (RMB thousands) | 31 December 2024 (RMB thousands) | | :--- | :--- | :--- | | 0 to 30 days | 7,118 | 6,117 | | 31 to 90 days | – | 1,082 | | 91 to 120 days | – | 667 | | 121 to 365 days | – | – | | Over one year | – | – | | **Total** | **7,118** | **7,866** | [12. Trade Payables](index=20&type=section&id=12.%20Trade%20Payables) As of 30 June 2025, total trade payables amounted to RMB 6,768 thousands, an increase from 31 December 2024, with a typical credit period of 30 days - The credit period is generally **30 days**[30](index=30&type=chunk) Ageing Analysis of Trade Payables | Ageing | 30 June 2025 (RMB thousands) | 31 December 2024 (RMB thousands) | | :--- | :--- | :--- | | 0 to 30 days | 2,932 | 2,833 | | 31 to 90 days | 1,783 | 428 | | 91 to 120 days | 106 | 39 | | 121 to 365 days | 282 | 122 | | Over one year | 1,665 | 1,990 | | **Total** | **6,768** | **5,412** | [13. Investment in an Associate](index=21&type=section&id=13.%20Investment%20in%20an%20Associate) The Group holds a 26% equity interest in Chizhou Huidaport Transportation Co., Ltd. ('Chizhou Huidaport') and has the right to appoint one director, with its share of the associate's net assets amounting to RMB 2,600 thousands as of 30 June 2025 Investment in an Associate | Item | 30 June 2025 (RMB thousands) | 31 December 2024 (RMB thousands) | | :--- | :--- | :--- | | Share of net assets of an associate | 2,600 | 2,600 | - The Group injected a total of **RMB 26,000,000** cash into Chizhou Huidaport in exchange for a **26% equity interest** and the right to appoint one of five directors[32](index=32&type=chunk) - As of 30 June 2025, the Group had not yet fully paid up its subscribed registered capital of **RMB 23,400,000** in Chizhou Huidaport[32](index=32&type=chunk) [14. Share Capital](index=21&type=section&id=14.%20Share%20Capital) As of 30 June 2025, the company's authorized share capital comprised 5,000,000,000 ordinary shares, with 800,000,000 ordinary shares issued and fully paid, remaining unchanged from the prior year Share Capital Structure | Item | Number of Ordinary Shares | RMB thousands | | :--- | :--- | :--- | | Authorized share capital | 5,000,000,000 | 40,929 | | Issued and fully paid share capital | 800,000,000 | 6,758 | - The share capital structure has remained unchanged since **1 January 2024**[33](index=33&type=chunk) [15. Capital Commitments](index=22&type=section&id=15.%20Capital%20Commitments) As of 30 June 2025, the Group's capital commitments significantly increased, primarily due to construction in progress and additional investment commitments in Chizhou Tiehang Capital Commitments | Item | 30 June 2025 (RMB thousands) | 31 December 2024 (RMB thousands) | | :--- | :--- | :--- | | Contracted but not provided for - construction in progress | 132,599 | 4,008 | | Contracted but not provided for - investment in equity investments at fair value through other comprehensive income | 59,400 | – | | Contracted but not provided for - investment in an associate | 23,400 | 23,400 | | **Total** | **215,399** | **27,408** | - Chizhou Port Holdings is required to make an additional capital contribution of approximately **RMB 66,765,000** to Chizhou Tiehang, with **RMB 17,365,000** already contributed as of 30 June 2025[34](index=34&type=chunk) [16. Related Party Transactions](index=23&type=section&id=16.%20Related%20Party%20Transactions) The Group engaged in lease payment transactions with related parties during the period and disclosed remuneration for directors and key management personnel, with all transactions conducted on normal commercial terms Significant Related Party Transactions | Transaction Type | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Lease payments to a related company | 295 | 292 | - The Company's controlling shareholder is the beneficial owner of Changhai, which leases certain properties to Yuanhang Hong Kong[35](index=35&type=chunk) Remuneration of Directors and Other Key Management Personnel | Remuneration Type | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Fees | 639 | 635 | | Salaries, allowances and benefits in kind | 180 | 160 | | Defined contribution plans | – | – | | **Total** | **819** | **795** | [17. Fair Value of Financial Instruments and Fair Value Hierarchy](index=25&type=section&id=17.%20Fair%20Value%20of%20Financial%20Instruments%20and%20Fair%20Value%20Hierarchy) The Group's financial instrument fair values primarily include equity investments and debt instruments at fair value through other comprehensive income, classified within Level 3 of the fair value hierarchy, with disclosed valuation techniques and unobservable inputs - Management believes that the carrying amounts of short-term financial instruments such as cash and cash equivalents, fixed deposits, and trade receivables reasonably approximate their fair values[38](index=38&type=chunk) Level 3 Fair Value Measurements | Item | 30 June 2025 (RMB thousands) | 31 December 2024 (RMB thousands) | | :--- | :--- | :--- | | Equity investments at fair value through other comprehensive income — unlisted equity investments | 33,883 | 27,093 | | Debt instruments at fair value through other comprehensive income — bills receivable | 12,721 | 13,151 | - Unlisted equity investments are valued using the **market approach and asset approach**, while bills receivable are valued using the **income approach (discounted cash flow method)**[41](index=41&type=chunk) - There were no transfers between Level 1, Level 2, and Level 3 of the fair value hierarchy during the six months ended 30 June 2025[42](index=42&type=chunk) [Management Discussion and Analysis](index=29&type=section&id=Management%20Discussion%20and%20Analysis) This section provides management's discussion and analysis of the Group's financial condition and results of operations, including business review, outlook, and financial performance [Business Review](index=29&type=section&id=Business%20Review) As an inland port operator in China, the Group experienced an 8.7% decline in total bulk and general cargo throughput and an 8.2% and 32.6% decrease in revenue and profit, respectively, for the first half of the year due to unfavorable economic conditions, though container throughput grew by 5.0% against the trend - The Group is an inland port operator in China, primarily providing port logistics services and operating the Jiangkou Port Area and Niutoushan Port Area[44](index=44&type=chunk) - For the six months ended 30 June 2025, total bulk and general cargo throughput was **12.7 million tonnes**, a year-on-year decrease of **8.7%**[45](index=45&type=chunk) - Total container throughput was **8,825 TEUs**, a year-on-year increase of **5.0%**[45](index=45&type=chunk) Key Operating Indicators for the First Half | Indicator | H1 2025 | H1 2024 | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | RMB 80.4 million | RMB 87.6 million | -8.2% | | Profit | RMB 28.6 million | RMB 42.4 million | -32.6% | [Outlook Analysis](index=30&type=section&id=Outlook%20Analysis) Despite an uncertain domestic and international economic outlook, management remains optimistic about the port market in the second half, expecting stable port cargo volumes and driving rapid group development through major project constructions, including the railway spur line and Jiangkou Terminal Phase IV - The Chinese economy is expected to remain relatively subdued but generally stable in the second half, with total port cargo volume maintaining a relatively stable and normal range[48](index=48&type=chunk) - The period from **2025 to 2026** is the construction phase for the Group's major projects (railway spur line and Jiangkou Terminal Phase IV), which are expected to usher in new rapid development after commencement of operations[48](index=48&type=chunk) [Financial Review](index=31&type=section&id=Financial%20Review) The Group's revenue and profit both declined in the first half, primarily due to reduced cargo throughput and a downturn in logistics agency business; while service costs decreased due to less cargo handling, administrative expenses significantly rose due to increased land use rights-related taxes and legal professional fees, and income tax expense increased due to the expiration of tax incentives, leading to a higher effective tax rate Revenue Breakdown and Changes | Service Type | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Provision of stevedoring services - bulk and general cargo | 73,368 | 78,100 | (4,732) | (6.1) | | Provision of stevedoring services - containers | 1,689 | 1,433 | 256 | 17.9 | | Subtotal | 75,057 | 79,533 | (4,476) | (5.6) | | Provision of ancillary port services | 5,311 | 8,020 | (2,709) | (33.8) | | **Total Revenue** | **80,368** | **87,553** | **(7,185)** | **(8.2)** | - The decrease in revenue was mainly due to reduced cargo handling revenue (a **1.2 million tonnes** decrease in cargo throughput) and a decline in logistics agency business[51](index=51&type=chunk) - Cost of services decreased by approximately **RMB 3.7 million (10.5%)**, primarily due to reduced staff costs, subcontracting fees, and repair and maintenance expenses[52](index=52&type=chunk) Gross Profit and Gross Profit Margin | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Gross profit | 48,669 | 52,110 | (3,441) | (6.6) | | Gross profit margin | 60.6% | 59.5% | 1.1% | Not applicable | - Administrative expenses increased by approximately **RMB 4.6 million (48.8%)**, mainly due to an increase of approximately **RMB 2.5 million** in land use rights-related taxes and approximately **RMB 1.7 million** in legal and professional fees[54](index=54&type=chunk) - Income tax expense increased by approximately **RMB 2.7 million (30.7%)**, primarily due to the expiration of certain tax incentives, leading to an increase in the effective tax rate from **17.1% to 28.7%** (adjusted to 22.9%)[55](index=55&type=chunk) Profit for the Period and Net Profit Margin | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Profit | 28.6 | 42.4 | -32.6% | | Net profit margin | 35.5% | 48.4% | -12.9% | [Capital Structure, Liquidity and Financial Resources](index=33&type=section&id=Capital%20Structure%2C%20Liquidity%20and%20Financial%20Resources) The Group maintains a stable capital structure, primarily funded by cash generated from operations and shareholders' equity; as of 30 June 2025, bank and cash balances were approximately RMB 373.3 million, the gearing ratio was not meaningful due to no outstanding debt, and there were no contingent liabilities - Since the Company's shares were listed on GEM of the Stock Exchange on **10 July 2018**, there has been no change in the capital structure, with share capital consisting solely of ordinary shares[57](index=57&type=chunk) - As of 30 June 2025, the Group's bank and cash balances were approximately **RMB 373.3 million** (31 December 2024: RMB 379.9 million)[58](index=58&type=chunk) - As of 30 June 2025, the Group had no outstanding debt, rendering the gearing ratio not meaningful[60](index=60&type=chunk) - The Group adopts a prudent financial approach to its treasury policy and has no contingent liabilities[62](index=62&type=chunk)[63](index=63&type=chunk) [Significant Investments and Acquisitions/Disposals](index=35&type=section&id=Significant%20Investments%20and%20Acquisitions%2FDisposals) The Group made a significant investment commitment to Chizhou Tiehang during the first half, but otherwise, there were no other major acquisitions or disposals - Chizhou Port Holdings agreed to inject a total of **RMB 10,000,000** cash into Chizhou Tiehang for a **5% equity interest**, with an additional capital commitment of approximately **RMB 66,765,000**[64](index=64&type=chunk) - As of 30 June 2025, Chizhou Port Holdings had already contributed **RMB 17,365,000** to Chizhou Tiehang[64](index=64&type=chunk) - Save as disclosed, there were no other significant acquisitions and disposals of subsidiaries, associates, and joint ventures by the Group during the six months ended 30 June 2025[65](index=65&type=chunk) [Employees and Remuneration Policy](index=35&type=section&id=Employees%20and%20Remuneration%20Policy) As of 30 June 2025, the Group had approximately 200 employees, with total staff costs of about RMB 13.6 million, and remuneration is determined based on individual responsibilities, capabilities, experience, and market levels Employees and Remuneration | Indicator | 30 June 2025 | 31 December 2024 | | :--- | :--- | :--- | | Number of employees | Approximately 200 | 205 | | Total staff costs (for the six months ended 30 June) | RMB 13.6 million | RMB 14.1 million | - Employee remuneration is determined based on individual responsibilities, capabilities and skills, experience and performance, and market salary levels[67](index=67&type=chunk) [Pledge of Assets and Post-Reporting Period Events](index=36&type=section&id=Pledge%20of%20Assets%20and%20Post-Reporting%20Period%20Events) As of 30 June 2025, the Group had pledged certain property, plant and equipment and investment properties; no significant events occurred after the reporting period, and the Board does not recommend an interim dividend Pledged Assets | Asset Type | 30 June 2025 (RMB millions) | 31 December 2024 (RMB millions) | | :--- | :--- | :--- | | Property, plant and equipment | 123.6 | 127.4 | | Investment properties | 14.5 | 14.1 | - No significant events affecting the Group have occurred since the end of the reporting period and up to the date of this report[70](index=70&type=chunk) - The Board does not recommend the payment of any interim dividend for the six months ended 30 June 2025[71](index=71&type=chunk) [Latest Business Developments](index=36&type=section&id=Latest%20Business%20Developments) The company disclosed recent business developments, including the construction contract for Jiangkou Terminal Phase IV, additional capital commitments for Chizhou Tiehang, and the transfer of land use rights from Chizhou Port Holdings to Chizhou Haishun - Chizhou Haishun entered into an agreement with an independent contractor to undertake the construction of Jiangkou Terminal Phase IV, with a consideration of **RMB 146,485,000**[72](index=72&type=chunk) - Chizhou Tiehang's shareholders' meeting approved an increase in additional capital commitments of approximately **RMB 1,335,303,000**, requiring Chizhou Port Holdings to contribute an additional approximately **RMB 66,765,000**[72](index=72&type=chunk) - Chizhou Port Holdings transferred land use rights for an area of approximately **74,798 square meters** to Chizhou Haishun, with a consideration of approximately **RMB 17,952,000**[74](index=74&type=chunk) [Other Information](index=38&type=section&id=Other%20Information) This section covers additional information including directors' and major shareholders' interests, transactions in listed securities, corporate governance, and compliance matters [Directors' and Major Shareholders' Interests](index=38&type=section&id=Directors'%20and%20Major%20Shareholders'%20Interests) The report discloses the interests of directors, chief executives, and major shareholders in the company's shares and associated corporations, with Mr. Gui Sihai and Ms. Zhang Huifeng holding 75% of the company's shares through their controlled corporation, Vital Force Directors' Long Positions in Shares | Director Name | Capacity/Nature of Interest | Number of Issued Shares Held | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Gui Sihai | Interest in controlled corporation | 600,000,000 | 75% | | Ms. Zhang Huifeng | Interest in controlled corporation | 600,000,000 | 75% | - Vital Force is legally and beneficially owned by Mr. Gui Sihai, Ms. Zhang Huifeng, and Hong Kong Shunyi Industrial Co., Limited, with **58.4%**, **38.9%**, and **2.7%** respectively[76](index=76&type=chunk) Major Shareholders' Long Positions in Shares | Shareholder Name | Capacity/Nature of Interest | Number of Shares Held | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Vital Force | Beneficial owner | 600,000,000 | 75% | [Dealings in Listed Securities and Competing Interests](index=40&type=section&id=Dealings%20in%20Listed%20Securities%20and%20Competing%20Interests) Neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities during the reporting period, and directors confirmed no competing interests - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the six months ended 30 June 2025[83](index=83&type=chunk) - For the six months ended 30 June 2025, the Directors confirmed that none of the Company's controlling shareholders or Directors and their respective close associates had any interests in any business that directly or indirectly competes with the Group's business[84](index=84&type=chunk) [Corporate Governance and Changes in Directors' Information](index=41&type=section&id=Corporate%20Governance%20and%20Changes%20in%20Directors'%20Information) The company consistently complied with the Corporate Governance Code and the Model Code for Securities Transactions by Directors during the reporting period, and Non-Executive Director Ms. Zhang Huifeng was appointed as a member of the Nomination Committee - Non-Executive Director Ms. Zhang Huifeng was appointed as a member of the Board's Nomination Committee, effective from **16 June 2025**[85](index=85&type=chunk) - During the reporting period, the Company consistently complied with the applicable code provisions of the Corporate Governance Code set out in Appendix C1 to the GEM Listing Rules[86](index=86&type=chunk) - All Directors confirmed their compliance with the required standards set out in the Model Code for Securities Transactions by Directors during the reporting period[87](index=87&type=chunk) [Non-Compliance with GEM Listing Rules and Remedial Actions](index=42&type=section&id=Non-Compliance%20with%20GEM%20Listing%20Rules%20and%20Remedial%20Actions) The company violated GEM Listing Rules by failing to timely announce a discloseable transaction related to the Chizhou Tiehang joint venture agreement and advances, and has implemented remedial measures including publishing announcements, issuing memoranda, conducting internal control reviews, and providing training - The Company violated the GEM Listing Rules by failing to timely announce the joint venture agreement and advances with Chizhou Tiehang, which collectively constituted a discloseable transaction[89](index=89&type=chunk)[90](index=90&type=chunk) - An announcement was published on **14 April 2025** to re-comply with the requirements of Rule 19.34 of the GEM Listing Rules[93](index=93&type=chunk) - A memorandum was issued to the Board and senior management, reiterating the importance of strict adherence to internal control measures[93](index=93&type=chunk) - An internal control review will be conducted, particularly concerning procedures for discloseable transactions, and relevant personnel have received training on Chapter 19 of the GEM Listing Rules[93](index=93&type=chunk) [Share Option Scheme and Audit Committee](index=44&type=section&id=Share%20Option%20Scheme%20and%20Audit%20Committee) The company has a share option scheme, but no options were granted or exercised during the reporting period; the Audit Committee reviewed the interim financial statements and confirmed their compliance with applicable accounting standards and listing rules - The Company adopted a share option scheme, effective for **ten years from 10 July 2018**[94](index=94&type=chunk) - No share options were outstanding, granted, exercised, cancelled, or lapsed during the six months ended 30 June 2025[94](index=94&type=chunk) - The Audit Committee, comprising three independent non-executive directors, has reviewed the Group's unaudited condensed consolidated financial statements for the six months ended 30 June 2025[95](index=95&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分內容而產生或因 倚賴該等內容而引致之任何損失承擔任何責任。 SAINT BELLA Inc. 聖貝拉有限公司 （ 於 開 曼 群 島 註 冊 成 立 的 有 限 公 司 ） （股份代號：2508） 截至二零二五年六月三十日止六個月 的中期業績公告 聖貝拉有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然公佈本公司及其 附屬公司（統稱「本集團」）截至二零二五年六月三十日止六個月（「報告期」）的 未經審核綜合業績。 本公告中，「我們」及「我們的」指本公司及在文義另有所指時指本集團。 重點摘要 | 截至六月三十日止六個月 | | --- | | | 二零二五年 | 二零二四年 | 變動 | | --- | --- | --- | --- | | | 人民幣千元 | 人民幣千元 | | | | （未經審核）（未經審核） | | | | 收入 | 449,506 | 357,780 | 25.6% | | 毛利 | 169,102 | 121,748 | 38.9% ...

Financial Statements [Consolidated Balance Sheet - Unaudited](index=2&type=section&id=Consolidated%20Balance%20Sheet) As of June 30, 2025, consolidated total assets increased by 3.85% to RMB 2.887 billion, with current assets at RMB 1.911 billion and shareholders' equity at RMB 2.682 billion Consolidated Balance Sheet Key Data (As of June 30, 2025) | Indicator | June 30, 2025 (RMB) | December 31, 2024 (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Total Current Assets | 1,911,483,527.73 | 1,812,939,537.79 | 5.44 | | Total Non-current Assets | 975,090,959.87 | 966,586,122.08 | 0.88 | | Total Assets | 2,886,574,487.60 | 2,779,525,659.87 | 3.85 | | **Liabilities and Shareholders' Equity** | | | | | Total Current Liabilities | 199,135,533.18 | 128,257,066.99 | 55.27 | | Total Non-current Liabilities | 5,521,567.07 | 5,503,050.57 | 0.34 | | Total Liabilities | 204,657,100.25 | 133,760,117.56 | 53.00 | | Total Shareholders' Equity Attributable to Parent Company | 2,681,917,387.35 | 2,645,765,542.31 | 1.37 | | Total Shareholders' Equity | 2,681,917,387.35 | 2,645,765,542.31 | 1.37 | | Total Liabilities and Shareholders' Equity | 2,886,574,487.60 | 2,779,525,659.87 | 3.85 | [Parent Company Balance Sheet - Unaudited](index=4&type=section&id=Parent%20Company%20Balance%20Sheet) As of June 30, 2025, the parent company's total assets were approximately RMB 2.28 billion, a 13.85% increase from year-end 2024, with total liabilities at RMB 1.13 billion and shareholders' equity at RMB 1.15 billion Parent Company Balance Sheet Key Data (As of June 30, 2025) | Indicator | June 30, 2025 (RMB) | December 31, 2024 (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Total Current Assets | 1,472,927,792.95 | 1,201,304,720.39 | 22.61 | | Total Non-current Assets | 807,026,049.11 | 801,232,668.15 | 0.72 | | Total Assets | 2,279,953,842.06 | 2,002,537,388.54 | 13.85 | | **Liabilities and Shareholders' Equity** | | | | | Total Current Liabilities | 1,126,911,892.31 | 722,373,532.58 | 55.99 | | Total Non-current Liabilities | 2,613,500.00 | 2,613,500.00 | 0.00 | | Total Liabilities | 1,129,525,392.31 | 724,987,032.58 | 55.80 | | Total Shareholders' Equity | 1,150,428,449.75 | 1,277,550,355.96 | -9.95 | | Total Liabilities and Shareholders' Equity | 2,279,953,842.06 | 2,002,537,388.54 | 13.85 | [Consolidated Income Statement - Unaudited](index=6&type=section&id=Consolidated%20Income%20Statement) In H1 2025, consolidated operating revenue increased by 49.97% to RMB 948 million, with net profit attributable to parent company shareholders rising 50.26% to RMB 201 million Consolidated Income Statement Key Data (January-June 2025) | Indicator | January-June 2025 (RMB) | January-June 2024 (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 948,076,076.72 | 632,178,357.43 | 49.97 | | Operating Cost | 721,171,549.75 | 458,145,479.15 | 57.41 | | Operating Profit | 201,212,584.68 | 134,024,729.67 | 50.13 | | Total Profit | 201,189,911.86 | 134,018,191.15 | 50.12 | | Net Profit | 201,101,023.04 | 133,833,355.58 | 50.26 | | Net Profit Attributable to Parent Company Owners | 201,101,023.04 | 133,833,355.58 | 50.26 | | Basic Earnings Per Share (RMB) | 0.58 | 0.38 | 52.63 | | Diluted Earnings Per Share (RMB) | 0.58 | 0.38 | 52.63 | - Operating revenue and net profit both achieved approximately **50% year-over-year growth**, primarily due to increased sales volume of concentrated fruit juice[8](index=8&type=chunk)[107](index=107&type=chunk)[108](index=108&type=chunk) [Parent Company Income Statement - Unaudited](index=7&type=section&id=Parent%20Company%20Income%20Statement) In H1 2025, parent company operating revenue increased by 25.24% to RMB 504 million, but net profit decreased by 69.74% to RMB 37.83 million due to a significant drop in investment income Parent Company Income Statement Key Data (January-June 2025) | Indicator | January-June 2025 (RMB) | January-June 2024 (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 503,791,051.75 | 402,240,722.17 | 25.24 | | Operating Cost | 462,602,392.06 | 381,170,651.79 | 21.36 | | Operating Profit | 37,827,271.79 | 125,079,346.32 | -69.76 | | Total Profit | 37,827,271.79 | 125,079,390.01 | -69.76 | | Net Profit | 37,827,271.79 | 124,989,662.78 | -69.74 | - Parent company investment income decreased from **RMB 123 million** in the prior period to **RMB 3.82 million** in the current period, significantly impacting net profit[9](index=9&type=chunk)[279](index=279&type=chunk) [Consolidated Cash Flow Statement - Unaudited](index=8&type=section&id=Consolidated%20Cash%20Flow%20Statement) In H1 2025, consolidated net cash flow from operating activities significantly increased by 147.46% to RMB 792 million, driven by higher concentrated fruit juice sales, with investment cash flow turning positive Consolidated Cash Flow Statement Key Data (January-June 2025) | Item | January-June 2025 (RMB) | January-June 2024 (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 791,629,894.52 | 319,905,896.89 | 147.46 | | Net Cash Flow from Investing Activities | 11,855,250.92 | -522,709,297.88 | 102.27 | | Net Cash Flow from Financing Activities | -79,649,178.00 | -103,953,361.84 | 23.38 | | Net Increase in Cash and Cash Equivalents | 722,656,256.28 | -302,946,744.85 | 338.99 | | Period-end Cash and Cash Equivalents Balance | 959,110,291.37 | 241,227,468.43 | 297.52 | - Net cash flow from operating activities significantly increased by **147.46%**, primarily due to increased sales volume of concentrated fruit juice[10](index=10&type=chunk)[108](index=108&type=chunk) - Net cash flow from investing activities turned positive, mainly due to the company's recovery of all wealth management products during the reporting period[10](index=10&type=chunk)[108](index=108&type=chunk) [Parent Company Cash Flow Statement - Unaudited](index=10&type=section&id=Parent%20Company%20Cash%20Flow%20Statement) In H1 2025, parent company net cash flow from operating activities turned positive to RMB 742 million, and net cash flow from investing activities also turned positive to RMB 35.3 million Parent Company Cash Flow Statement Key Data (January-June 2025) | Item | January-June 2025 (RMB) | January-June 2024 (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 742,023,044.16 | -86,861,923.90 | 954.16 | | Net Cash Flow from Investing Activities | 35,303,321.30 | -96,996,704.34 | 136.40 | | Net Cash Flow from Financing Activities | -79,649,178.00 | -103,953,361.84 | 23.38 | | Net Increase in Cash and Cash Equivalents | 696,700,133.72 | -285,092,811.48 | 344.04 | | Period-end Cash and Cash Equivalents Balance | 886,644,326.35 | 228,930,068.73 | 287.30 | - Parent company net cash flow from operating activities shifted from negative to positive year-over-year, indicating a significant improvement in operating cash flow[12](index=12&type=chunk) - Net cash flow from investing activities also turned positive, reflecting increased cash inflows from investing activities[12](index=12&type=chunk) [Consolidated Statement of Changes in Equity - Unaudited](index=12&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) As of June 30, 2025, consolidated shareholders' equity totaled RMB 2.682 billion, a 1.37% increase from the beginning of the year, with comprehensive income of RMB 201 million Consolidated Statement of Changes in Equity Key Data (January-June 2025) | Item | Share Capital (RMB) | Less: Treasury Shares (RMB) | Surplus Reserve (RMB) | Retained Earnings (RMB) | Total Shareholders' Equity (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | | Balance at Beginning of Year | 349,000,000.00 | 67,779,330.82 | 139,817,902.01 | 2,224,726,971.12 | 2,645,765,542.31 | | Changes for the Year | -7,800,000.00 | 11,869,847.18 | -59,979,330.82 | 115,801,023.04 | 36,151,845.04 | | Total Comprehensive Income | – | – | – | 201,101,023.04 | 201,101,023.04 | | Profit Distribution | – | – | – | -85,300,000.00 | -85,300,000.00 | | Other | -7,800,000.00 | 11,869,847.18 | -59,979,330.82 | – | -79,649,178.00 | | Balance at End of Year | 341,200,000.00 | 79,649,178.00 | 79,838,571.19 | 2,340,527,994.16 | 2,681,917,387.35 | - The company's share capital decreased by **RMB 7.8 million** due to H-share repurchase and cancellation, treasury shares increased by **RMB 11.87 million**, surplus reserve decreased by **RMB 59.98 million**, and retained earnings increased by **RMB 116 million**[14](index=14&type=chunk)[191](index=191&type=chunk)[192](index=192&type=chunk)[193](index=193&type=chunk) [Parent Company Statement of Changes in Equity - Unaudited](index=13&type=section&id=Parent%20Company%20Statement%20of%20Changes%20in%20Equity) As of June 30, 2025, parent company shareholders' equity decreased by 9.95% to RMB 1.15 billion, with comprehensive income of RMB 37.83 million, but net reduction due to profit distribution and share repurchase Parent Company Statement of Changes in Equity Key Data (January-June 2025) | Item | Share Capital (RMB) | Less: Treasury Shares (RMB) | Surplus Reserve (RMB) | Retained Earnings (RMB) | Total Shareholders' Equity (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | | Balance at Beginning of Year | 349,000,000.00 | 67,779,330.82 | 166,060,599.86 | 830,269,086.92 | 1,277,550,355.96 | | Changes for the Year | -7,800,000.00 | 11,869,847.18 | -59,979,330.82 | -47,472,728.21 | -127,121,906.21 | | Total Comprehensive Income | – | – | – | 37,827,271.79 | 37,827,271.79 | | Profit Distribution | – | – | – | -85,300,000.00 | -85,300,000.00 | | Other | -7,800,000.00 | 11,869,847.18 | -59,979,330.82 | – | -79,649,178.00 | | Balance at End of Year | 341,200,000.00 | 79,649,178.00 | 106,081,269.04 | 782,796,358.71 | 1,150,428,449.75 | - Parent company shareholders' equity decreased by **RMB 127 million**, primarily influenced by profit distribution and share repurchase and cancellation[15](index=15&type=chunk) Notes to Financial Statements [I. Company Profile](index=14&type=section&id=Company%20Profile) Yantai North Andre Juice Co., Ltd., established in 1996, is an A+H dual-listed company primarily engaged in fruit and vegetable juice manufacturing, with total share capital of 341.2 million shares as of June 30, 2025 - The company was listed on the Shanghai Stock Exchange on September 14, 2020, becoming an **A+H dual-listed enterprise**[16](index=16&type=chunk) - As of June 30, 2025, the company's total share capital was **341.2 million shares**, with a registered capital of **RMB 341.2 million**[17](index=17&type=chunk) - The company's main business activities include the production and sale of various fruit and vegetable juices, pulps, flavors, pomace, and related products[17](index=17&type=chunk) [II. Basis of Financial Statement Preparation](index=15&type=section&id=Basis%20of%20Financial%20Statement%20Preparation) These financial statements are prepared in accordance with Enterprise Accounting Standards and CSRC disclosure rules, based on a going concern, accrual basis, and historical cost measurement - Financial statements are prepared in accordance with Enterprise Accounting Standards and CSRC's 'No. 15 Rules for Information Disclosure by Companies Issuing Public Securities – General Provisions for Financial Reports (2023 Revision)'[19](index=19&type=chunk) - Financial statements are presented on a going concern basis, with accounting based on the accrual method and measured at historical cost, except for certain financial instruments[20](index=20&type=chunk) - The company assessed its ability to continue as a going concern for 12 months from the end of the reporting period and found no material uncertainties[21](index=21&type=chunk) [III. Significant Accounting Policies and Estimates](index=15&type=section&id=Significant%20Accounting%20Policies%20and%20Estimates) This section details the significant accounting policies and estimates used in preparing financial statements, covering business combinations, financial instruments, inventory, fixed assets, revenue recognition, and employee benefits - The company determines depreciation of fixed assets, amortization of intangible assets, capitalization conditions for R&D expenses, and revenue recognition policies based on its production and operation characteristics[22](index=22&type=chunk) - Financial assets are classified into three categories based on business model and contractual cash flow characteristics: measured at amortized cost, at fair value through other comprehensive income, and at fair value through profit or loss[43](index=43&type=chunk) - Revenue is recognized when customers obtain control of goods or services, distinguished by performance obligations fulfilled over time or at a point in time[110](index=110&type=chunk)[111](index=111&type=chunk)[112](index=112&type=chunk) [1. Statement of Compliance with Accounting Standards](index=15&type=section&id=Compliance%20with%20Accounting%20Standards) The financial statements comply with Enterprise Accounting Standards, accurately reflecting the company's financial position, operating results, and cash flows - These financial statements comply with Enterprise Accounting Standards, accurately and completely reflecting the company's consolidated and parent company financial position as of June 30, 2025, and operating results and cash flows for H1 2025[23](index=23&type=chunk) [2. Accounting Period](index=15&type=section&id=Accounting%20Period) The company's accounting period follows the calendar year, from January 1 to December 31 annually - The company's accounting period adopts the calendar year, from January 1 to December 31 each year[24](index=24&type=chunk) [3. Operating Cycle](index=15&type=section&id=Operating%20Cycle) The company's operating cycle is 12 months - The company's operating cycle is **12 months**[25](index=25&type=chunk) [4. Functional Currency](index=16&type=section&id=Functional%20Currency) The company and its domestic subsidiaries use RMB as their functional currency, while overseas subsidiaries use USD, with financial statements prepared in RMB - The company and its domestic subsidiaries use **RMB** as their functional currency, while overseas subsidiaries use **USD**, with financial statements prepared in **RMB**[26](index=26&type=chunk) [5. Materiality Criteria](index=16&type=section&id=Materiality%20Criteria) This section defines the materiality thresholds for specific financial items, such as significant individual accounts receivable for bad debt provisions and significant construction in progress Materiality Criteria | Item | Materiality Criteria | | :--- | :--- | | Significant individual accounts receivable for bad debt provision | Amount ≥ RMB 5 million | | Significant construction in progress | Amount ≥ RMB 5 million | [6. Accounting for Business Combinations](index=16&type=section&id=Accounting%20for%20Business%20Combinations) Business combinations under common control are measured at the book value of the merged entity in the ultimate controlling party's consolidated financial statements, while non-common control combinations are measured at fair value - Business combinations under common control are measured at the book value of the merged entity in the ultimate controlling party's consolidated financial statements for assets and liabilities[27](index=27&type=chunk) - For business combinations not under common control, the merger cost is the fair value of assets given, liabilities incurred or assumed, and equity securities issued to obtain control on the acquisition date[29](index=29&type=chunk) [7. Criteria for Control and Consolidation](index=17&type=section&id=Criteria%20for%20Control%20and%20Consolidation) Consolidation scope is determined by control, where the company has power over the investee, exposure to variable returns, and the ability to use power to affect returns, with intercompany transactions eliminated - The scope of consolidation is determined based on control, meaning the company has power over the investee, is exposed to variable returns from its involvement, and has the ability to use its power to affect the amount of those returns[31](index=31&type=chunk) - Consolidated financial statements are prepared based on the financial statements of the company and its subsidiaries, with significant intercompany transactions and balances eliminated[32](index=32&type=chunk) [8. Classification of Joint Arrangements and Accounting for Joint Operations](index=19&type=section&id=Classification%20of%20Joint%20Arrangements%20and%20Accounting%20for%20Joint%20Operations) Joint arrangements are classified as joint operations or joint ventures; joint operations recognize their share of assets and liabilities, while joint ventures are accounted for using the equity method - Joint arrangements are classified as joint operations and joint ventures; joint operations recognize their share of related assets and liabilities, while joint ventures are accounted for using the equity method[35](index=35&type=chunk)[36](index=36&type=chunk) [9. Definition of Cash and Cash Equivalents](index=20&type=section&id=Definition%20of%20Cash%20and%20Cash%20Equivalents) Cash includes cash on hand and deposits readily available for payment, while cash equivalents are short-term, highly liquid investments easily convertible to known amounts of cash with insignificant value change risk - Cash refers to cash on hand and deposits readily available for payment; cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and subject to an insignificant risk of changes in value[38](index=38&type=chunk) [10. Foreign Currency Transactions and Translation](index=20&type=section&id=Foreign%20Currency%20Transactions%20and%20Translation) Foreign currency transactions are translated at the spot exchange rate on the transaction date, with monetary items translated at the balance sheet date's spot rate, and foreign financial statements translated using specific rates for assets/liabilities and income statement items - Foreign currency transactions are translated at the spot exchange rate on the transaction date, and foreign currency monetary items are translated at the spot exchange rate on the balance sheet date[39](index=39&type=chunk) - When translating foreign currency financial statements of overseas subsidiaries, balance sheet items are translated at the spot exchange rate on the balance sheet date, while income statement items are translated at the spot exchange rate on the transaction date[39](index=39&type=chunk)[40](index=40&type=chunk) [11. Financial Instruments](index=21&type=section&id=Financial%20Instruments) Financial assets are categorized based on business model and contractual cash flow characteristics, and impairment accounting is applied to certain financial assets using expected credit losses - Financial assets are classified into three categories based on the business model for managing them and their contractual cash flow characteristics: measured at amortized cost, at fair value through other comprehensive income, and at fair value through profit or loss[43](index=43&type=chunk) - The company applies impairment accounting for financial assets measured at amortized cost, accounts receivable, and debt instrument investments measured at fair value through other comprehensive income, based on expected credit losses[54](index=54&type=chunk) - For notes receivable and accounts receivable, the company consistently measures loss provisions at an amount equal to the expected credit losses over the entire lifetime[58](index=58&type=chunk) [12. Fair Value Measurement](index=30&type=section&id=Fair%20Value%20Measurement) Fair value is the price received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, categorized into three levels based on input observability - Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date[71](index=71&type=chunk) - Fair value measurements are categorized into three levels: Level 1 for quoted prices in active markets, Level 2 for observable inputs, and Level 3 for unobservable inputs[72](index=72&type=chunk) [13. Inventories](index=31&type=section&id=Inventories) Inventories, including raw materials, work-in-progress, and finished goods, are initially measured at actual cost and subsequently valued at the lower of cost and net realizable value, with provisions for inventory write-downs when net realizable value is below cost - Inventories are classified as raw materials, work-in-progress, and finished goods, initially measured at actual cost, and valued using the weighted-average method upon issuance[73](index=73&type=chunk) - At the balance sheet date, inventories are measured at the lower of cost and net realizable value, with inventory write-down provisions recognized when net realizable value is below cost[73](index=73&type=chunk) [14. Long-term Equity Investments](index=32&type=section&id=Long-term%20Equity%20Investments) Long-term equity investments include those in subsidiaries, joint ventures, and associates, accounted for using the cost method for subsidiaries and the equity method for joint ventures and associates - Long-term equity investments include equity investments in subsidiaries, joint ventures, and associates[76](index=76&type=chunk) - Investments in subsidiaries are accounted for using the cost method, while investments in associates and joint ventures are accounted for using the equity method[76](index=76&type=chunk) - Joint control refers to shared control over an arrangement, and significant influence refers to the power to participate in financial and operating policy decisions of the investee[82](index=82&type=chunk)[83](index=83&type=chunk) [15. Fixed Assets](index=35&type=section&id=Fixed%20Assets) Fixed assets are tangible assets held for production, services, rental, or administration with a useful life exceeding one accounting year, initially measured at actual cost and depreciated using the straight-line method - Fixed assets are tangible assets held for the production of goods, provision of services, rental, or operational management, with a useful life exceeding one accounting year, initially measured at actual cost[84](index=84&type=chunk)[85](index=85&type=chunk) - The company uses the straight-line method for depreciation and annually reviews useful lives, estimated net residual values, and depreciation methods[85](index=85&type=chunk)[87](index=87&type=chunk) [16. Construction in Progress](index=36&type=section&id=Construction%20in%20Progress) Construction in progress costs are determined by actual expenditures, including necessary project expenses, capitalized borrowing costs, and other related fees, and are transferred to fixed assets upon reaching their intended usable state - Construction in progress costs are determined by actual project expenditures, including necessary engineering expenses, capitalized borrowing costs, and other related fees, and are transferred to fixed assets when they reach their intended usable state[88](index=88&type=chunk)[89](index=89&type=chunk) [17. Borrowing Costs](index=36&type=section&id=Borrowing%20Costs) Borrowing costs directly attributable to the acquisition, construction, or production of qualifying assets are capitalized as part of the asset's cost during the capitalization period - Borrowing costs directly attributable to the acquisition, construction, or production of qualifying assets are capitalized and included in the cost of the related assets[91](index=91&type=chunk) - The capitalization period begins when asset expenditures and borrowing costs have been incurred and construction or production activities have commenced, ceasing when the asset reaches its intended usable or marketable condition[91](index=91&type=chunk)[92](index=92&type=chunk) [18. Intangible Assets](index=37&type=section&id=Intangible%20Assets) Intangible assets, including land use rights, are initially measured at cost and amortized using the straight-line method over their estimated useful lives - Intangible assets, including land use rights, are initially measured at cost and amortized using the straight-line method over their estimated useful lives if they have a finite useful life[93](index=93&type=chunk)[94](index=94&type=chunk) [19. Research and Development Expenses](index=38&type=section&id=Research%20and%20Development%20Expenses) Research and development expenditures are categorized into research phase and development phase expenses, with research phase expenses recognized as current period expenses, and development phase expenses capitalized only when specific criteria are met - Research and development expenditures are distinguished between research phase and development phase expenditures, with research phase expenditures recognized as current period expenses[97](index=97&type=chunk)[98](index=98&type=chunk) - Development phase expenditures are capitalized only when specific conditions are met; otherwise, they are recognized as current period expenses[98](index=98&type=chunk) [20. Asset Impairment](index=38&type=section&id=Asset%20Impairment) At the balance sheet date, assets are assessed for impairment indicators, and if present, recoverable amounts are estimated for impairment testing, with goodwill and indefinite-lived intangible assets tested annually - At the balance sheet date, assets are assessed for impairment indicators, and if such indicators exist, impairment tests are conducted by estimating the recoverable amount[99](index=99&type=chunk) - Goodwill, intangible assets with indefinite useful lives, and intangible assets not yet ready for their intended use are tested for impairment annually[99](index=99&type=chunk) - Once an asset impairment loss is recognized, it is not reversed in subsequent accounting periods[101](index=101&type=chunk) [21. Long-term Deferred Expenses](index=39&type=section&id=Long-term%20Deferred%20Expenses) Long-term deferred expenses are measured at actual cost and amortized evenly over their estimated benefit period - Long-term deferred expenses are measured at actual cost and amortized evenly over their estimated benefit period[102](index=102&type=chunk) [22. Employee Benefits](index=39&type=section&id=Employee%20Benefits) Employee benefits include short-term compensation, post-employment benefits, termination benefits, and other long-term employee benefits, with short-term compensation recognized as a liability and expense when services are rendered - Employee benefits include short-term compensation, post-employment benefits, termination benefits, and other long-term employee benefits[103](index=103&type=chunk) - Short-term compensation is recognized as a liability and charged to current profit or loss or relevant asset costs in the accounting period when employees provide services[103](index=103&type=chunk) - Post-employment benefit plans include defined contribution plans and defined benefit plans, with defined contribution plans recognized as a liability based on the amount payable[104](index=104&type=chunk)[105](index=105&type=chunk) [23. Provisions](index=41&type=section&id=Provisions) Provisions are recognized when an obligation related to a contingent event is a present obligation, likely to result in an outflow of economic benefits, and its amount can be reliably measured - Provisions are recognized when an obligation related to a contingent event simultaneously meets the criteria of being a present obligation, likely to result in an outflow of economic benefits, and its amount can be reliably measured[109](index=109&type=chunk) [24. Revenue](index=41&type=section&id=Revenue) The company recognizes revenue when performance obligations in a contract are satisfied, meaning the customer obtains control of the related goods or services, with sales models including general sales and consignment sales - The company recognizes revenue when it satisfies a performance obligation in a contract, meaning when the customer obtains control of the related goods or services[110](index=110&type=chunk) - Sales models include general sales (domestic, export) and consignment sales, with revenue recognition timing based on product delivery terms or when the customer uses the product[113](index=113&type=chunk) [25. Contract Costs](index=43&type=section&id=Contract%20Costs) Contract costs include incremental costs of obtaining a contract and costs to fulfill a contract, which are recognized as assets and amortized if they meet specific capitalization criteria - Contract costs include incremental costs incurred to obtain a contract and costs to fulfill a contract, which are recognized as assets and amortized if they meet the capitalization conditions[114](index=114&type=chunk) [26. Government Grants](index=44&type=section&id=Government%20Grants) Government grants are recognized when conditions are met and receipt is probable, classified as asset-related or income-related, and accounted for by reducing asset book value or recognizing in profit or loss or deferred income - Government grants are recognized when the attached conditions are met and they are probable of being received, classified as asset-related or income-related government grants[115](index=115&type=chunk) - Asset-related government grants reduce the book value of related assets, while income-related grants are recognized in current profit or loss or deferred income[115](index=115&type=chunk) [27. Deferred Tax Assets and Liabilities](index=45&type=section&id=Deferred%20Tax%20Assets%20and%20Liabilities) The company recognizes deferred income tax using the balance sheet liability method based on temporary differences between the carrying amounts and tax bases of assets and liabilities, presented net when specific conditions are met - The company recognizes deferred income tax based on temporary differences between the carrying amounts and tax bases of assets and liabilities at the balance sheet date, using the balance sheet liability method[117](index=117&type=chunk) - Deferred tax assets and liabilities are presented as a net amount when specific conditions for offsetting are met[122](index=122&type=chunk) [28. Leases](index=46&type=section&id=Leases) As a lessee, the company recognizes right-of-use assets and lease liabilities for all leases, except for simplified short-term and low-value asset leases, and as a lessor, classifies leases as finance or operating based on risk and reward transfer - As a lessee, the company recognizes right-of-use assets and lease liabilities for all leases, except for short-term leases and leases of low-value assets that are simplified[120](index=120&type=chunk) - As a lessor, the company classifies leases as finance leases if they substantially transfer all the risks and rewards incidental to ownership of an asset, and as operating leases for all other leases[128](index=128&type=chunk) [29. Right-of-Use Assets](index=49&type=section&id=Right-of-Use%20Assets) Right-of-use assets represent the lessee's right to use a leased asset over the lease term, initially measured at cost and depreciated using the straight-line method - Right-of-use assets represent the lessee's right to use a leased asset over the lease term, initially measured at cost and depreciated using the straight-line method[132](index=132&type=chunk) [30. Repurchase of Shares](index=50&type=section&id=Repurchase%20of%20Shares) Shares repurchased by the company are managed as treasury shares until cancellation or transfer, with repurchase expenditures recorded as treasury share cost, and no gains or losses recognized - Shares repurchased by the company are managed as treasury shares until cancellation or transfer, with repurchase expenditures recorded as treasury share cost, and no gains or losses recognized[134](index=134&type=chunk) [31. Changes in Accounting Policies and Estimates](index=50&type=section&id=Changes%20in%20Accounting%20Policies%20and%20Estimates) There were no significant changes in accounting policies or estimates during the current period - There were no significant changes in accounting policies or accounting estimates in the current period[136](index=136&type=chunk) [IV. Taxation](index=50&type=section&id=Taxation) This section discloses the company's main tax types and rates, including VAT, urban maintenance and construction tax, education surcharges, and corporate income tax, along with tax incentives enjoyed by subsidiaries, such as reduced corporate income tax rates for Western Development enterprises and exemptions for primary agricultural product processing Main Tax Types and Rates | Tax Type | Statutory Tax Rate | | :--- | :--- | | Value-Added Tax | 5%, 6%, 9%, 13% | | Urban Maintenance and Construction Tax | 1%, 5%, 7% | | Education Surcharge | 3% | | Local Education Surcharge | 2% | | Corporate Income Tax | 15%, 25% | - Some subsidiaries enjoy the Western Development corporate income tax policy, paying corporate income tax at a reduced rate of **15%**, valid until 2030[138](index=138&type=chunk) - Several subsidiaries benefit from income tax exemptions for the production and sale of raw fruit juice and pomace[138](index=138&type=chunk) [V. Notes to Consolidated Financial Statement Items](index=52&type=section&id=Notes%20to%20Consolidated%20Financial%20Statement%20Items) This section provides detailed notes for major consolidated financial statement items, including period-end balances, changes, measurement methods, and related explanations, offering specific data to understand the company's financial position and operating results - Cash and cash equivalents balance at period-end was **RMB 959 million**, a significant **305.62% increase** from the prior year-end, primarily due to the seasonal off-production period and increased sales collections[139](index=139&type=chunk)[110](index=110&type=chunk) - Inventory balance at period-end was **RMB 545 million**, a **52.92% decrease** from the prior year-end, mainly because the company was in a seasonal off-production period, primarily selling rather than producing[162](index=162&type=chunk)[111](index=111&type=chunk) - Other payables balance at period-end was **RMB 86.67 million**, a significant **5514.85% increase** from the prior year-end, primarily due to the 2024 year-end dividend not yet being paid[185](index=185&type=chunk)[111](index=111&type=chunk) [1. Cash and Cash Equivalents](index=52&type=section&id=Cash%20and%20Cash%20Equivalents) This section details the composition and changes in cash and cash equivalents, including cash on hand and bank deposits, and explains the significant increase in the period-end balance Cash and Cash Equivalents Balance | Item | Period-end Balance (RMB) | Prior Year-end Balance (RMB) | | :--- | :--- | :--- | | Cash on Hand | 93.92 | 93.92 | | Bank Deposits | 959,110,197.45 | 236,453,941.17 | | Total | 959,110,291.37 | 236,454,035.09 | - Period-end cash and cash equivalents increased by **305.62%** compared to the prior year-end, primarily due to the seasonal off-production period and increased sales collections during the reporting period[110](index=110&type=chunk) [2. Financial Assets Held for Trading](index=52&type=section&id=Financial%20Assets%20Held%20for%20Trading) This section presents the balance of financial assets held for trading, which decreased to zero at period-end due to the redemption of various wealth management products Financial Assets Held for Trading Balance | Item | Period-end Balance (RMB) | Prior Year-end Balance (RMB) | | :--- | :--- | :--- | | Financial assets classified as at fair value through profit or loss | – | 41,034,077.78 | | Including: Open-ended net value products | – | 41,034,077.78 | | Total | – | 41,034,077.78 | - The period-end balance of financial assets held for trading was **zero**, a **100% decrease** from the prior year-end, primarily due to the redemption of various wealth management products during the reporting period[110](index=110&type=chunk) [3. Notes Receivable](index=53&type=section&id=Notes%20Receivable) This section details the balance of notes receivable, which significantly increased at period-end due to a rise in sales collected via bank acceptance bills Notes Receivable Balance | Type of Bill | Period-end Book Value (RMB) | Prior Year-end Book Value (RMB) | | :--- | :--- | :--- | | Bank Acceptance Bills | 1,589,390.00 | 738,100.00 | - The period-end balance of notes receivable increased by **115.34%** compared to the prior year-end, primarily due to an increase in sales collected via bank acceptance bills during the reporting period[111](index=111&type=chunk) [4. Accounts Receivable](index=53&type=section&id=Accounts%20Receivable) This section provides the aging distribution of accounts receivable, details the bad debt provision, and highlights the concentration of the top five debtors Accounts Receivable Aging Distribution | Aging | Period-end Balance (RMB) | Prior Year-end Balance (RMB) | | :--- | :--- | :--- | | Within 1 year | 392,402,715.39 | 331,235,032.83 | | 1 to 2 years | – | 34,776.22 | | Less: Bad Debt Provision | 30,896,171.95 | 29,383,419.66 | | Total | 361,506,543.44 | 301,886,389.39 | - The period-end bad debt provision for accounts receivable was **RMB 30.90 million**, with an expected credit loss rate of **7.87%**[146](index=146&type=chunk) - The top five accounts receivable by debtor at period-end collectively accounted for **46.30%** of the total accounts receivable balance[150](index=150&type=chunk) [5. Prepayments](index=56&type=section&id=Prepayments) This section presents the aging distribution of prepayments, which significantly increased at period-end due to higher advance payments for various materials Prepayments Aging Distribution | Aging | Period-end Balance (RMB) | Proportion (%) | Prior Year-end Balance (RMB) | Proportion (%) | | :--- | :--- | :--- | :--- | :--- | | Within 1 year | 5,188,657.25 | 98.95 | 2,138,627.55 | 100.00 | | 1 to 2 years | 55,099.09 | 1.05 | – | – | | Total | 5,243,756.34 | 100.00 | 2,138,627.55 | 100.00 | - The period-end balance of prepayments increased by **145.19%** compared to the prior year-end, primarily due to increased advance payments for various materials during the reporting period[111](index=111&type=chunk) [6. Other Receivables](index=57&type=section&id=Other%20Receivables) This section provides the aging distribution of other receivables and details the bad debt provision, indicating an expected credit loss rate for Stage 1 Other Receivables Aging Distribution | Aging | Period-end Balance (RMB) | Prior Year-end Balance (RMB) | | :--- | :--- | :--- | | Within 1 year | 1,105,850.01 | 992,180.65 | | Less: Bad Debt Provision | 95,092.50 | 83,009.03 | | Total | 1,234,057.51 | 1,131,471.62 | - The period-end bad debt provision for other receivables was **RMB 95,000**, with an expected credit loss rate of **7.15%** for Stage 1[156](index=156&type=chunk)[159](index=159&type=chunk) [7. Inventories](index=60&type=section&id=Inventories) This section categorizes inventories by type and explains the significant decrease in the period-end balance due to the seasonal off-production period Inventory Classification | Inventory Type | Period-end Book Value (RMB) | Prior Year-end Book Value (RMB) | | :--- | :--- | :--- | | Raw Materials | 45,182,054.51 | 38,444,916.60 | | Work-in-Progress | 42,674,397.93 | 152,184.00 | | Finished Goods | 457,603,353.35 | 1,119,986,801.03 | | Total | 545,459,805.79 | 1,158,583,901.63 | - The period-end inventory balance decreased by **52.92%** compared to the prior year-end, primarily due to the seasonal off-production period, with sales occurring but minimal production[111](index=111&type=chunk) - The period-end provision for inventory write-downs for finished goods was **RMB 1.46 million**, with **RMB 60,700** recognized in the current period and **RMB 380,400** reversed[162](index=162&type=chunk) [8. Other Current Assets](index=60&type=section&id=Other%20Current%20Assets) This section presents the balance of other current assets, which decreased at period-end primarily due to a reduction in un-deducted VAT credits Other Current Assets Balance | Item | Period-end Balance (RMB) | Prior Year-end Balance (RMB) | | :--- | :--- | :--- | | VAT Input Tax Credit | 37,339,683.28 | 70,972,934.73 | - The period-end balance of other current assets decreased by **47.39%** compared to the prior year-end, primarily due to a reduction in un-deducted VAT during the reporting period[111](index=111&type=chunk) [9. Other Non-current Financial Assets](index=60&type=section&id=Other%20Non-current%20Financial%20Assets) This section details the balance of other non-current financial assets, which remained unchanged at period-end, consisting solely of equity instrument investments Other Non-current Financial Assets Balance | Type | Period-end Balance (RMB) | Prior Year-end Balance (RMB) | | :--- | :--- | :--- | | Equity Instrument Investments | 461,281.69 | 461,281.69 | [10. Fixed Assets](index=61&type=section&id=Fixed%20Assets) This section presents the book value of fixed assets by category, including buildings, machinery, office equipment, and transportation equipment, and notes the increase in accumulated depreciation Fixed Assets Book Value | Item | Period-end Book Value (RMB) | Beginning of Period Book Value (RMB) | | :--- | :--- | :--- | | Buildings and Structures | 392,361,837.16 | 398,831,708.33 | | Machinery and Equipment | 422,188,491.53 | 432,367,277.41 | | Office and Other Equipment | 5,882,865.45 | 6,273,486.04 | | Transportation Equipment | 5,027,730.47 | 4,745,492.57 | | Total | 825,460,924.61 | 842,217,964.35 | - Accumulated depreciation for fixed assets increased by **RMB 20.08 million** in the current period[165](index=165&type=chunk) [11. Construction in Progress](index=62&type=section&id=Construction%20in%20Progress) This section details the net book value of construction in progress, which significantly increased at period-end due to higher advance payments for production line renovations at some subsidiaries Construction in Progress Balance | Item | Period-end Net Book Value (RMB) | Prior Year-end Net Book Value (RMB) | | :--- | :--- | :--- | | Equipment to be Installed | 6,344,375.99 | 1,678,500.00 | | Building Renovation | 2,356,283.63 | – | | Total | 8,700,659.62 | 1,678,500.00 | - The period-end balance of construction in progress increased by **418.36%** compared to the prior year-end, primarily due to increased advance payments for production line renovations at some subsidiaries during the reporting period[111](index=111&type=chunk) [12. Intangible Assets](index=63&type=section&id=Intangible%20Assets) This section presents the book value of intangible assets, primarily land use rights, and notes the increase in accumulated amortization for the period Intangible Assets Book Value | Item | Period-end Book Value (RMB) | Beginning of Period Book Value (RMB) | | :--- | :--- | :--- | | Land Use Rights | 99,723,352.76 | 101,289,252.84 | - Accumulated amortization for intangible assets increased by **RMB 1.566 million** in the current period[169](index=169&type=chunk) [13. Development Expenditures](index=64&type=section&id=Development%20Expenditures) This section details the development expenditures by project, noting an increase in the current period primarily for key technology research and application in deep processing of northern representative fruits Development Expenditures Projects | Item | Period-end Balance (RMB) | Beginning of Period Balance (RMB) | | :--- | :--- | :--- | | R&D and Application of Key Technologies for Deep Processing of Northern Representative Fruits | 4,876,376.26 | 4,347,684.08 | | 14th Five-Year National Project "Precise Storage, Transportation, and Processing of Post-Harvest Apples" | 232,963.10 | 176,788.29 | | Rural Revitalization - Integrated Innovation and Demonstration of Key Technologies for Quality and Efficiency Improvement of Yantai Apples | 169,170.13 | – | | Total | 5,278,509.49 | 4,524,472.37 | - Development expenditures increased by **RMB 754,000** in the current period, primarily for projects such as key technology research and application in deep processing of northern representative fruits[170](index=170&type=chunk) [14. Goodwill](index=64&type=section&id=Goodwill) This section presents the original book value of goodwill, which remained unchanged at period-end, with no changes in impairment provisions Goodwill Original Book Value | Name of Investee or Event Forming Goodwill | Period-end Balance (RMB) | Beginning of Period Balance (RMB) | | :--- | :--- | :--- | | Anyue Andre Lemon Industry Technology Co., Ltd. | 3,066,598.32 | 3,066,598.32 | | Yongji Andre Fruit and Vegetable Juice Co., Ltd. | 4,566,292.71 | 4,566,292.71 | | Yantai Longkou Andre Fruit Juice Beverage Co., Ltd. | 1,020,683.72 | 1,020,683.72 | | Total | 8,653,574.75 | 8,653,574.75 | - The period-end original book value of goodwill remained unchanged, and there was no change in impairment provisions[171](index=171&type=chunk)[172](index=172&type=chunk) [15. Deferred Tax Assets](index=65&type=section&id=Deferred%20Tax%20Assets) This section details unrecognized deferred tax assets related to deductible temporary differences and deductible losses, noting the expiration schedule for deductible losses Unrecognized Deferred Tax Assets for Deductible Temporary Differences and Deductible Losses | Item | Period-end Balance (RMB) | Prior Year-end Balance (RMB) | | :--- | :--- | :--- | | Deductible Temporary Differences | 32,451,679.40 | 31,246,523.77 | | Deductible Losses | 5,769,251.17 | 7,134,626.15 | | Total | 38,220,930.57 | 38,381,149.92 | - Deductible losses are primarily set to expire between **2026 and 2030**[174](index=174&type=chunk) [16. Other Non-current Assets](index=66&type=section&id=Other%20Non-current%20Assets) This section presents the balance of other non-current assets, which significantly increased at period-end due to higher advance payments for production line renovations at some subsidiaries Other Non-current Assets Balance | Item | Period-end Book Value (RMB) | Prior Year-end Book Value (RMB) | | :--- | :--- | :--- | | Advance Payments for Equipment and Engineering | 29,879,255.27 | 10,827,674.40 | - The period-end balance of other non-current assets increased by **175.95%** compared to the prior year-end, primarily due to increased advance payments for production line renovations at some subsidiaries during the reporting period[111](index=111&type=chunk) [17. Accounts Payable](index=66&type=section&id=Accounts%20Payable) This section categorizes accounts payable by nature of payment, noting a decrease in the period-end balance due to payments for various materials Accounts Payable by Nature of Payment | Item | Period-end Balance (RMB) | Prior Year-end Balance (RMB) | | :--- | :--- | :--- | | Payables for Materials and Others | 53,814,867.27 | 82,169,590.02 | | Payables for Engineering and Equipment | 10,457,108.43 | 14,806,085.58 | | Total | 64,271,975.70 | 96,975,675.60 | - The period-end balance of accounts payable decreased by **33.72%** compared to the prior year-end, primarily due to payments for various materials during the reporting period[111](index=111&type=chunk) [18. Contract Liabilities](index=66&type=section&id=Contract%20Liabilities) This section presents the balance of contract liabilities, which increased at period-end due to higher advance payments received from customers Contract Liabilities Balance | Item | Period-end Balance (RMB) | Prior Year-end Balance (RMB) | | :--- | :--- | :--- | | Advance Receipts from Customers | 5,523,877.53 | 2,748,130.25 | - The period-end balance of contract liabilities increased by **101.00%** compared to the prior year-end, primarily due to increased advance receipts from customers during the reporting period[111](index=111&type=chunk) [19. Employee Benefits Payable](index=67&type=section&id=Employee%20Benefits%20Payable) This section details the balance of employee benefits payable, which decreased at period-end due to the payment of year-end bonuses accrued in the prior year Employee Benefits Payable Balance | Item | Period-end Balance (RMB) | Beginning of Period Balance (RMB) | | :--- | :--- | :--- | | Short-term Compensation | 12,424,085.99 | 18,924,296.22 | | Post-employment Benefits - Defined Contribution Plans | – | – | | Total | 12,424,085.99 | 18,924,296.22 | - The period-end balance of employee benefits payable decreased by **34.35%** compared to the prior year-end, primarily due to the payment of year-end bonuses accrued at the prior year-end during the reporting period[111](index=111&type=chunk) [20. Taxes Payable](index=68&type=section&id=Taxes%20Payable) This section presents the balance of taxes payable, which significantly increased at period-end due to higher VAT and other taxes resulting from increased sales Taxes Payable Balance | Tax Item | Period-end Balance (RMB) | Prior Year-end Balance (RMB) | | :--- | :--- | :--- | | Value-Added Tax | 13,764,834.07 | 5,146,549.04 | | Customs Duties | 11,963,064.45 | – | | Urban Maintenance and Construction Tax and Education Surcharge | 2,058,535.41 | 591,597.03 | | Total | 29,526,444.82 | 7,712,930.78 | - The period-end balance of taxes payable increased by **282.82%** compared to the prior year-end, primarily due to increased VAT and other taxes resulting from sales growth during the reporting period[111](index=111&type=chunk) [21. Other Payables](index=69&type=section&id=Other%20Payables) This section details the balance of other payables, which significantly increased at period-end primarily due to the 2024 year-end dividend not yet being paid Other Payables Balance | Item | Period-end Balance (RMB) | Prior Year-end Balance (RMB) | | :--- | :--- | :--- | | Dividends Payable | 85,300,000.00 | – | | Other Payables | 1,374,825.16 | 1,543,670.21 | | Total | 86,674,825.16 | 1,543,670.21 | - The period-end balance of other payables significantly increased by **5514.85%** compared to the prior year-end, primarily due to the 2024 year-end dividend not yet being paid during the reporting period[111](index=111&type=chunk) [22. Other Current Liabilities](index=69&type=section&id=Other%20Current%20Liabilities) This section presents the balance of other current liabilities, which increased at period-end due to higher deferred output VAT resulting from increased contract liabilities Other Current Liabilities Balance | Item | Period-end Balance (RMB) | Prior Year-end Balance (RMB) | | :--- | :--- | :--- | | Deferred Output VAT | 714,323.98 | 352,363.93 | - The period-end balance of other current liabilities increased by **102.72%** compared to the prior year-end, primarily due to increased deferred output VAT resulting from increased contract liabilities during the reporting period[111](index=111&type=chunk) [23. Long-term Payables](index=70&type=section&id=Long-term%20Payables) This section details the balance of long-term payables, including amounts due for factory ownership and land use rights, and special funds for poverty alleviation Long-term Payables Balance | Item | Period-end Balance (RMB) | Prior Year-end Balance (RMB) | | :--- | :--- | :--- | | Payables for Factory Ownership and Land Use Rights | 1,118,332.50 | 1,099,816.00 | | Shaanxi-Jiangsu Poverty Alleviation Special Funds | 629,840.00 | 629,840.00 | | Total | 1,748,172.50 | 1,729,656.00 | [24. Deferred Income](index=70&type=section&id=Deferred%20Income) This section presents the balance of deferred income, which remained stable at period-end, primarily consisting of asset-related and income-related government grants Deferred Income Balance | Item | Period-end Balance (RMB) | Beginning of Period Balance (RMB) | | :--- | :--- | :--- | | Government Grants | 3,773,394.57 | 3,773,394.57 | - The period-end balance of deferred income remained consistent with the beginning of the period, primarily comprising asset-related and income-related government grants[188](index=188&type=chunk)[225](index=225&type=chunk) [25. Share Capital](index=70&type=section&id=Share%20Capital) This section details the changes in share capital, noting a decrease in total shares due to the cancellation of repurchased H-shares Share Capital Changes | Item | Beginning of Period Balance (RMB) | Current Period Increase/Decrease (+, -) (RMB) | Period-end Balance (RMB) | | :--- | :--- | :--- | :--- | | Total Shares | 349,000,000.00 | -7,800,000.00 | 341,200,000.00 | - The total number of shares decreased by **7.8 million** in the current period, primarily due to the cancellation of all H-shares repurchased in 2024 on February 13, 2025[189](index=189&type=chunk)[191](index=191&type=chunk) [26. Treasury Shares](index=71&type=section&id=Treasury%20Shares) This section details the changes in treasury shares, including the increase due to share repurchases for capital reduction Treasury Shares Changes | Item | Beginning of Period Balance (RMB) | Current Period Increase (RMB) | Current Period Decrease (RMB) | Period-end Balance (RMB) | | :--- | :--- | :--- | :--- | | Repurchase for Capital Reduction | 67,779,330.82 | 79,649,178.00 | 67,779,330.82 | 79,649,178.00 | - As of June 30, 2025, the company repurchased **5,012,000 H-shares** on the Hong Kong Stock Exchange, with a total repurchase cost of **RMB 79,649,178.00**[191](index=191&type=chunk) [27. Surplus Reserve](index=71&type=section&id=Surplus%20Reserve) This section details the changes in surplus reserve, noting a decrease primarily due to the cancellation of repurchased H-shares Surplus Reserve Changes | Item | Beginning of Period Balance (RMB) | Current Period Decrease (RMB) | Period-end Balance (RMB) | | :--- | :--- | :--- | | Statutory Surplus Reserve | 139,817,902.01 | 59,979,330.82 | 79,838,571.19 | - Surplus reserve decreased by **42.90%**, primarily due to the cancellation of **7,800,000 H-shares** repurchased in 2024 on February 13, 2025[111](index=111&type=chunk)[192](index=192&type=chunk) [28. Retained Earnings](index=71&type=section&id=Retained%20Earnings) This section details the changes in retained earnings, including net profit attributable to parent company shareholders and dividends paid Retained Earnings Changes | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Adjusted Retained Earnings at Beginning of Period | 2,224,726,971.12 | 2,070,671,322.38 | | Add: Net Profit Attributable to Parent Company Shareholders for the Period | 201,101,023.04 | 260,703,197.00 | | Less: Dividends Payable on Ordinary Shares | 85,300,000.00 | 76,780,000.00 | | Retained Earnings at End of Period | 2,340,527,994.16 | 2,224,726,971.12 | [29. Operating Revenue and Cost](index=72&type=section&id=Operating%20Revenue%20and%20Cost) This section presents the operating revenue and cost by business segment, noting significant year-over-year growth primarily driven by increased sales of concentrated fruit juice Operating Revenue and Cost | Item | Current Period Revenue (RMB) | Current Period Cost (RMB) | Prior Period Revenue (RMB) | Prior Period Cost (RMB) | | :--- | :--- | :--- | :--- | :--- | | Main Business | 945,656,545.30 | 720,397,516.93 | 629,609,727.60 | 456,946,460.90 | | Other Business | 2,419,531.42 | 774,032.82 | 2,568,629.83 | 1,199,018.25 | | Total | 948,076,076.72 | 721,171,549.75 | 632,178,357.43 | 458,145,479.15 | - Operating revenue increased by **49.97%** year-over-year, and operating cost increased by **57.41%** year-over-year, primarily due to increased sales volume of concentrated fruit juice[108](index=108&type=chunk) - By product type, fruit juice and flavors are the main sources of revenue, accounting for **96.69%** of operating revenue[195](index=195&type=chunk) [30. Taxes and Surcharges](index=73&type=section&id=Taxes%20and%20Surcharges) This section details the taxes and surcharges incurred, noting a year-over-year increase across various tax categories Taxes and Surcharges | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Urban Maintenance and Construction Tax | 2,234,179.21 | 1,439,218.03 | | Education Surcharge | 1,809,456.22 | 1,203,080.60 | | Property Tax | 1,850,018.65 | 1,501,819.04 | | Land Use Tax | 1,645,250.79 | 1,301,085.21 | | Other | 430,645.03 | 332,777.77 | | Total | 7,969,549.90 | 5,777,980.65 | - Taxes and surcharges increased by **37.93%** year-over-year, primarily due to increases across various tax categories during the reporting period[108](index=108&type=chunk) [31. Selling Expenses](index=73&type=section&id=Selling%20Expenses) This section details selling expenses, noting a significant year-over-year increase primarily due to higher customer commissions resulting from increased concentrated fruit juice sales Selling Expenses | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Employee Compensation | 1,173,560.40 | 1,111,112.18 | | Sales Commissions | 1,013,668.32 | 180,619.40 | | Other | 798,958.31 | 409,672.76 | | Total | 2,986,187.03 | 1,701,404.34 | - Selling expenses increased by **75.51%** year-over-year, primarily due to increased customer commissions resulting from higher concentrated fruit juice sales volume[108](index=108&type=chunk) [32. Administrative Expenses](index=73&type=section&id=Administrative%20Expenses) This section details administrative expenses, noting a year-over-year increase primarily due to the consolidation of operating costs from the newly established Yan'an subsidiary Administrative Expenses | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Employee Compensation | 12,431,680.49 | 8,851,039.42 | | Depreciation and Amortization | 3,781,602.89 | 3,557,684.68 | | Consulting and Service Fees | 1,224,500.63 | 721,105.10 | | Auditor Fees | 943,396.23 | 867,924.53 | | Office and Travel Expenses | 1,097,936.53 | 655,001.94 | | Other | 597,336.18 | 2,017,385.14 | | Total | 20,076,452.95 | 16,670,140.81 | - Administrative expenses increased by **20.43%** year-over-year, primarily due to the consolidation of operating costs from the newly established Yan'an subsidiary during the reporting period[108](index=108&type=chunk) [33. Research and Development Expenses](index=74&type=section&id=Research%20and%20Development%20Expenses) This section details research and development expenses, noting a year-over-year increase primarily due to the company's increased R&D investment Research and Development Expenses | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Employee Compensation | 2,393,901.18 | 2,028,495.12 | | Depreciation and Amortization | 253,303.60 | 291,372.95 | | Experimental Materials and Inspection Fees | 479,111.11 | 657,496.68 | | Other | 160,448.86 | 131,580.45 | | Total | 3,286,764.75 | 3,108,945.20 | - Research and development expenses increased by **5.72%** year-over-year, primarily due to the company's increased R&D investment during the reporting period[109](index=109&type=chunk) [34. Financial Expenses](index=74&type=section&id=Financial%20Expenses) This section details financial expenses, noting a year-over-year decrease in financial income (or increase in financial expense) primarily due to lower interest income and exchange gains Financial Expenses | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Interest Expense | 18,516.50 | 18,516.50 | | Less: Interest Income | 2,253,641.45 | 3,055,384.27 | | Exchange Gains/Losses | -4,066,869.76 | -5,557,314.76 | | Handling Fees and Other | 183,520.43 | 109,744.08 | | Total | -6,118,474.28 | -8,484,438.45 | - Financial expenses (income) decreased by **27.89%** year-over-year, primarily due to lower interest income and exchange gains compared to the prior period[108](index=108&type=chunk)[109](index=109&type=chunk) [35. Other Income](index=74&type=section&id=Other%20Income) This section details other income, noting a year-over-year decrease primarily due to reduced government subsidies received Other Income | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Handling Fee Refund for Withholding Individual Income Tax | 111,518.65 | 9,722.10 | | Fuxian Development and Reform Incentive Funds | 72,000.00 | – | | SME Development Special Funds | – | 351,000.00 | | Total | 190,168.65 | 588,722.10 | - Other income decreased by **67.70%** year-over-year, primarily due to a reduction in government subsidies received during the reporting period[108](index=108&type=chunk)[109](index=109&type=chunk) [36. Investment Income](index=75&type=section&id=Investment%20Income) This section details investment income, noting that the current period's income primarily stems from the disposal of financial assets held for trading, unlike the prior period which included income from holding such assets Investment Income | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Investment Income from Disposal of Financial Assets Held for Trading | 3,903,884.71 | -3,182,368.54 | | Investment Income from Holding Financial Assets Held for Trading | – | 6,218,425.49 | | Total | 3,903,884.71 | 3,036,056.95 | - Current period investment income primarily arose from gains on disposal of financial assets held for trading, whereas the prior period included investment income from holding financial assets held for trading[203](index=203&type=chunk) [37. Gains from Changes in Fair Value](index=75&type=section&id=Gains%20from%20Changes%20in%20Fair%20Value) This section notes that there were no gains from changes in fair value in the current period, unlike the prior period which had a negative value due to the sale of all stock investments Gains from Changes in Fair Value | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Financial Assets Held for Trading | – | -10,985,209.20 | - There were no gains from changes in fair value in the current period; the prior period had a negative value, primarily due to the sale of all stock investments in that period[109](index=109&type=chunk)[203](index=203&type=chunk) [38. Credit Impairment Losses (Losses presented with a "－" sign)](index=76&type=section&id=Credit%20Impairment%20Losses) This section details credit impairment losses, noting a significant year-over-year decrease due to timely collection of receivables and reduced impairment provisions Credit Impairment Losses | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Bad Debt Losses on Other Receivables | -12,083.47 | 109,627.47 | | Bad Debt Losses on Accounts Receivable | -1,512,752.29 | -13,436,961.49 | | Total | -1,524,835.76 | -13,327,334.02 | - Credit impairment losses decreased by **88.56%** year-over-year, primarily due to timely collection of receivables and reduced credit asset impairment provisions in accordance with Enterprise Accounting Standards[108](index=108&type=chunk)[109](index=109&type=chunk) [39. Asset Impairment Losses (Losses presented with a "－" sign)](index=76&type=section&id=Asset%20Impairment%20Losses) This section details asset impairment losses, noting a year-over-year decrease primarily due to the prior period's provision for inventory write-downs related to trial-produced products Asset Impairment Losses | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Inventory Write-down Losses | -60,679.54 | -192,524.53 | | Total | -60,679.54 | -192,524.53 | - Asset impairment losses decreased by **68.48%** year-over-year, primarily due to the prior period's provision for inventory write-downs related to trial-produced products by subsidiary Anyue Andre Lemon Industry Technology Co., Ltd[108](index=108&type=chunk)[109](index=109&type=chunk) [40. Gains from Disposal of Assets](index=76&type=section&id=Gains%20from%20Disposal%20of%20Assets) This section notes that there were no gains from disposal of assets in the current period, unlike the prior period which had a negative value due to land disposal losses by a subsidiary Gains from Disposal of Assets | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :---