BaWang International (Group) Holding Limited reported an operating loss of approximately RMB2.3 million for the six months ended 30 June 2025, compared to an operating profit of about RMB1.7 million in the same period last year. The decline in operating results was mainly attributed to notable increases in the cost of sales and distribution expenses, which rose due to higher promotional and logistics costs. Administrative expenses increased by 12.6% year-on-year to RMB14.7 million, primarily due to higher salaries, bonuses, and vehicle costs, partially offset by reduced directors' remuneration. During the review period, the Group recognized impairment losses of around RMB1.6 million on trade receivables in accordance with IFRS 9's expected credit loss model. BaWang's sales and distribution expenses as a percentage of turnover increased slightly to 34.3% from 34.0% in the previous corresponding period. The company continued to implement a value-chain-oriented business model to manage costs and promoted its Bawang-branded products with a focus on reinforcing its market position among Chinese consumers. Looking ahead, the Group stated it will continue with its corporate theme of "Dashing All the Way for Win-Win Cooperation" and intends to pursue strategies aimed at further promoting its branded products and enhancing revenue. The management remains cautious in forming ongoing business strategies in light of domestic economic challenges, including weak demand, slow income growth, and high local government debt, despite government policies targeting a 5% GDP growth.