fuxing_ex991.htm

EX-99.1 2 fuxing_ex991.htm INTERIM REPORT OF THE COMPANY fuxing_ex991.htm

EXHIBIT 99.1

FUXING CHINA GROUP LIMITED

(Incorporated in the Bermuda with limited liability)

(Company Registration Number: 38973)

Condensed Interim Financial Statements

For the half year ended 30 June 2025

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TABLE OF CONTENTS		Page

A.	Condensed Interim Consolidated Statement of profit or loss and other comprehensive income	3

B.	Condensed Interim Statement of Financial Position	4

C.	Condensed Interim Consolidated Statement of Changes in Equity	5

D.	Condensed Interim Consolidated Statement of Cash Flows	6

E.	Notes to the Condensed Interim Consolidated Financial Statements	8

F.	Other information required by Listing Rule Appendix 7.2	21

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A.	CONDENSED INTERIM CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

		The Group
		6 months ended 30 June 2025			6 months ended 30 June 2024
		(Unaudited)			(Unaudited)
	*Note*	RMB’000			RMB’000

Revenue	4		335,088			339,017

Cost of sales			(310,614	)		(319,299	)

Gross profit			24,474			19,718

Other items of income
Other income	5		5,274			13,822
Interest income	6		404			265

Other items of expenses
Marketing and distribution costs			(6,225	)		(6,311	)
Administrative expenses			(26,084	)		(10,834	)
Other expenses	7		(2,492	)		(262	)
Finance costs	6		(3,437	)		(4,746	)

(Loss)/Profit before tax	8		(8,086	)		11,652

Income tax expenses	10		(1,433	)		(1,312	)

(Loss) / Profit for the period			(9,519	)		10,340

Other comprehensive income/(loss):
Item that may be reclassified subsequently to profit or loss
Exchange differences on translating foreign operations			1,958			(934	)

Total comprehensive (loss)/income for the period			(7,561	)		9,406

(Loss)/Profit attributable to:
Owners of the Company			(9,580	)		10,266
Non-controlling interests			61			74

			(9,519	)		10,340

Total comprehensive (loss)/income attributable to:
Owners of the Company			(7,622	)		9,332
Non-controlling interests			61			74

			(7,561	)		9,406

		RMB			RMB
(Loss)/Earnings per share attributable to owners of the Company
Basic and diluted	11		(0.56	)		0.60

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B.	CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

		The Group						The Company
		30 June 2025			31 December 2024			30 June 2025			31 December 2024
		(Unaudited)			(Audited)			(Unaudited)			(Audited)
	*Note*	RMB’000			RMB’000			RMB’000			RMB’000
Non-current assets
Property, plant and equipment	14		260,341			269,998			-			-
Investment properties			42,060			42,060			-			-
Land use right			21,954			22,406			-			-
Intangible assets			2,203			2,504			-			-
Investment in subsidiaries			-			-			344,853			344,853
			326,558			336,968			344,853			344,853

Current assets
Inventories	15		74,089			66,437			-			-
Trade and other receivables	16		228,230			265,511			240,286			244,345
Prepayments	17		57,090			57,430			-			-
Cash and short-term deposits			138,646			169,634			352			115
			498,055			559,012			240,638			244,460
Total assets			824,613			895,980			585,491			589,313

Equity and liabilities
Equity attributable to owners of the Company
Share capital	18		1,874			1,874			1,874			1,874
Treasury shares	18		(6,408	)		(6,408	)		(6,408	)		(6,408	)
Reserve fund			67,552			67,552			-			-
Capital reserve			39,573			39,573			39,573			39,573
Contributed surplus			598,946			598,946			598,946			598,946
Restructuring reserve			(117,878	)		(117,878	)		-			-
Foreign currency translation reserve			(10,797	)		(12,755	)		-			-
(Accumulated losses)/Retained earnings			(9,304	)		276			(59,351	)		(52,553	)

Total equity attributable to owners of the Company			563,558			571,180			574,634			581,432
Non-controlling interests			561			509			-			-
Total equity			564,119			571,689			574,634			581,432

Current liabilities
Trade and other payables	19		41,380			24,286			1,633			6,493
Other liabilities	20		70,857			71,727			9,224			1,388
Loans and borrowings	21		124,505			204,575			-			-
Income tax payable			3,375			3,833			-			-
			240,117			304,421			10,857			7,881

Non-current liabilities
Deferred tax liabilities			20,377			19,870			-			-

Total liabilities			260,494			324,291			10,857			7,881

Total equity and liabilities			824,613			895,980			585,491			589,313

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C.	CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

			<—————----Attributable to owners of the Company——————>
	Share capital		Treasury shares			Reserve fund		Contributed surplus		Capital reserve		Restructuring reserve¹			Translation reserve			Accumulated losses			Non- controlling interests			Total equity
Group	RMB'000		RMB'000			RMB'000		RMB'000		RMB'000		RMB'000			RMB'000			RMB'000			RMB'000			RMB'000
At 1 January 2024		772,574		(6,408	)		67,130		-		39,573		(117,878	)		(9,959	)		(171,754	)		444			573,722
Total comprehensive income for the period		-		-			-		-		-		-			(934	)		10,266			74			9,406
Dividend paid to non-controlling interests		-		-			-		-		-		-									(114	)		(114	)
At 30 June 2024		772,574		(6,408	)		67,130		-		39,573		(117,878	)		(10,893	)		(161,488	)		404			583,014

At 1 January 2025		1,874		(6,408	)		67,552		598,946		39,573		(117,878	)		(12,755	)		276			509			571,689
Total comprehensive loss for the period		-		-			-		-		-		-			1,958			(9,580	)		61			(7,561	)
Dividend paid to non-controlling interests		-		-			-		-		-		-									(9	)		(9	)
At 30 June 2025		1,874		(6,408	)		67,552		598,946		39,573		(117,878	)		(10,797	)		(9,304	)		561			564,119

Company	Share capital		Treasury shares			Capital reserve		Contributed surplus		Accumulated losses			Total equity
	RMB'000		RMB'000			RMB'000		RMB'000		RMB'000			RMB'000

At 1 January 2024		772,574		(6,408	)		39,573		-		(218,337	)		587,402
Total comprehensive loss for the period		-		-			-		-		(6,527	)		(6,527	)
At 30 June 2024		772,574		(6,408	)		39,573		-		(224,864	)		580,875

At 1 January 2025		1,874		(6,408	)		39,573		598,946		(52,553	)		581,432
Total comprehensive loss for the period		-		-			-		-		(6,798	)		(6,798	)
At 30 June 2025		1,874		(6,408	)		39,573		598,946		(59,351	)		574,634

Note:

¹	Restructuring reserve:
	This represents the difference between the nominal value of shares issued by the Company in exchange for the nominal value of shares and capital reserve of subsidiaries acquired which is accounted for under “merger accounting”.

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D.	CONDENSED INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS

	6 months ended 30 June 2025 (Unaudited)			6 months ended 30 June 2024 (Unaudited)
	RMB’000			RMB’000
OPERATING ACTIVITIES
(Loss)/Profit before taxation		(8,086	)		11,652
Adjustments for:
Depreciation of property, plant and equipment		20,052			20,035
Written off of property, plant and equipment		-			207
Loss/(Gain) on disposal of property, plant and equipment		330			(7,330	)
Amortisation of land use rights		453			453
Amortisation of intangible assets		300			200
Net provision for / (reversal of) allowance for trade receivables		996			(8,677	)
Net reversal of allowance for advances to suppliers		(477	)		(2,761	)
Net reversal of provision for social security contribution		(249	)		(2,883	)
Interest expense		3,437			4,746
Interest income		(404	)		(265	)
Foreign currency differences		1,959			(931	)
Total adjustments		26,397			2,794
Operating cash flows before changes in working capital		18,311			14,446
(Increase)/ Decrease in:
Inventories		(7,651	)		24,903
Trade and other receivables		36,285			24,145
Prepayments		1,770			(13,428	)
Increase/ (Decrease) in:
Trade payables		(10,344	)		7,023
Other payables & accruals		(622	)		(8,191	)
Due to directors		-			8,466
Total changes in working capital		19,438			42,918
Cash flows generated from operations		37,749			57,364
Income tax paid		(1,384	)		(551	)
Net cash generated from operating activities		36,365			56,813
INVESTING ACTIVITIES
Purchase of property, plant and equipment		(11,860	)		(7,961	)
Purchase of intangible assets		-			(3,004	)
Proceeds from disposal of property, plant and equipment		181			10,265
Interest income received		404			265
Net cash used in investing activities		(11,275	)		(435	)
FINANCING ACTIVITIES
Dividend paid to non-controlling interest		(9	)		(115	)
Advances from directors		1,368
Proceeds from short-term borrowings		16,500			54,500
Repayments for short-term borrowings		(73,937	)		(34,846	)
Decrease in fixed deposits pledged to banks		18,000			2,500
Net cash (used in) / generated from financing activities		(38,078	)		22,039

NET (DECREASE) / INCREASE IN CASH & CASH EQUIVALENTS		(12,988	)		78,417
CASH & CASH EQUIVALENTS AT BEGINNING OF PERIOD		132,948			80,283
CASH & CASH EQUIVALENTS AT END OF PERIOD (Note A)		119,960			158,700

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D.	CONDENSED INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS

Note A:

Cash and cash equivalents included in the consolidated statement of cash flows comprise the following:

	6 months ended 30 June 2025 Unaudited			6 months ended 30 June 2024 Unaudited
	RMB’000			RMB’000

Fixed deposits		18,686			31,000
Cash and bank balances		119,960			158,700
		138,646			189,700
Less: Fixed deposits (pledged)		(18,686	)		(31,000	)
Cash and cash equivalents		119,960			158,700

Fixed deposits for the six months ended 30 June 2025 amounting to RMB18,686,000 (30 June 2024: RMB31,000,000) were pledged to banks for the Group’s bills payable to banks, short-term bank loans and bank overdrafts.

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E.	NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANICAL STATEMENTS

1.	GENERAL INFORMATION

1.1

General information

Fuxing China Group Limited (the “Company”) was incorporated and domiciled as an exempt company with limited liability in Bermuda and is listed on the mainboard in Singapore Exchange Securities Trading Limited (“SGX-ST”).

The principal activity of the Company is that of investment holding.

The principal activities of the subsidiaries are disclosed in Note 1.2 to the financial statements.

The registered office of the Company is at Clarendon House, 2 Church Street, Hamilton HM11, Bermuda and the principal place of business of the Group is located at Hangbian Industry Area, Longhu Town, Jinjiang City, Fujian Province, People’s Republic of China (the “PRC”).

1.2

Group structure

Details of the subsidiaries of the Company at the end of the reporting period are set out below:

Name

Country of incorporation

Principal activities

Effective equity held by the Company

30 June 2025

31 December 2024

Held by the Company

Jade Star Group Holdings Limited (“Jade Star”)

British Virgin Islands

Investment holding

100

Fuxing China Group Limited (HK) ("FCG")

Hong Kong

Investment holding, to facilitate the application of the State-owned Land Use Right Certificate in respect of the Land Parcel

100

Held through Jade Star

Jinjiang Fookhing Zipper Co., Ltd ("Fookhing Zipper")

People's Republic of China

Production and sale of finished zippers and zipper chains

100

Jinjiang Fuxing Dress Co., Ltd ("Fuxing Dress")

People's Republic of China

Production and sale of zipper sliders

100

Fookhing Group Trading Co., Ltd (“Fuxing HK”)

Hong Kong

Trading of raw materials for textile sector

100

Fulong Zipper and Weaving Co., Ltd ("Fulong")

People's Republic of China

Colour dyeing of fabric tapes for zippers

100

Jinjiang Jianxin Weaving Co., Ltd ("Jianxin")

People's Republic of China

Manufacturing and sales of dyed yarn

100

Jinjiang Fuxin Electroplating Co., Ltd ("Fuxin")

People's Republic of China

Provision of electroplating services for zipper sliders

100

Held through FCG

Xiamen Fuxing Industrial Co., Ltd. (“Xiamen Fuxing")

People's Republic of China

Real estate development

100

Held through Xiamen Fuxing

Xiamen Xinfuxing Property Management Co., Ltd (“Xiamen Property")

People's Republic of China

To handle property management and realtor services for the Group’s Xiamen headquarters

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E.	NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANICAL STATEMENTS

2.	SUMMARY OF MATERIAL ACCOUNTING POLICIES

2.1

BASIS OF PREPARATION

The condensed interim financial statements for the six months ended 30 June 2025 have been prepared in accordance with Singapore Financial Reporting Standards (International) (“SFRS(I)”) 1-34 Interim Financial Reporting issued by the Accounting Standards Council Singapore. The condensed interim financial statements do not include all the information required for a complete set of financial statements. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group’s financial position and the Group’s performance since the last audited annual financial statements for the year ended 31 December 2024.

The condensed interim financial statements are presented in Renminbi (“RMB”) and all amounts have been rounded to the nearest thousand (“RMB’000”), unless otherwise stated.

The accounting policies and method of computations used in the condensed interim financial statements are consistent with those of the previous financial year which were prepared in accordance with SFRS(I)s, except for the adoption of new and amended standards as set out in note 2.2.

2.2

New and amended Standards adopted by the Group

A number of amendments to Standards have become applicable for the current reporting period. The Group did not have to change its accounting policies or make retrospective adjustments as a result of adopting those standards.

2.3

Use of judgment and estimates

In preparing the condensed interim financial statements, management has made judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

The significant judgements made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the year ended 31 December 2024.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.

Management is of the opinion that there are no critical judgements that have a significant effect on the amounts recognised in the financial statements.

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E.	NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANICAL STATEMENTS

SEASONAL OPERATIONS

The Group’s businesses are not affected significantly by seasonal or cyclical factors during the financial period.

SEGMENT INFORMATION AND REVENUE

For management purposes, the Group is organised into business units based on their products and services, and has four reportable operating segments as follows:

	(i)	Zippers
		The zippers segment represents manufactures and sells zipper sliders, zipper chain and finished zippers

	(ii)	Processing
		The processing segment represents colour dyeing of fabric tapes for zippers, electroplating services for zipper sliders and manufacturing and sales of dyed yarn.

	(iii)	Trading
		The trading segment represents trading of raw materials, including rubber thread, nylon fabric and nylon yarn.

	(iv)	Corporate
		The corporate segment is involved in Group-level corporate services and treasury functions.

	Except as indicated above, no operating segments has been aggregated to form the above reportable operating segments.

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E.	NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANICAL STATEMENTS

SEGMENT INFORMATION AND REVENUE (CONTINUED)

Management monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on operating profit or loss which in certain respects, as explained in the table below, is measured differently from operating profit or loss in the consolidated financial statements.

Segment assets and liabilities are not disclosed as such separate financial information is not available but is evaluated regularly by the chief operating decision-maker in deciding how to allocate resources to the operating segments.

Transfer prices between operating segments are on an arm’s length basis in a manner similar to transactions with third parties.

Geographical information

Revenue and non-current assets information based on geographical location of customers and assets respectively are as follows:

Revenue

Non-current assets

30 June 2025

30 June 2024

30 June 2025

31 December 2024

RMB'000

RMB'000

RMB'000

RMB'000

People’s Republic of China

227,620

228,779

326,553

336,961

Hong Kong

107,468

110,238

Total

335,088

339,017

326,558

336,968

Non-current assets information presented above comprised of property, plant and equipment, investment property, land use rights, intangible assets and prepayments as presented in the statement of financial position.

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E.	NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANICAL STATEMENTS

SEGMENT INFORMATION AND REVENUE (CONTINUED)

Business segments

The following table presents revenue, results and other information regarding the Group's business segments for the half year ended 30 June 2025 and 30 June 2024.

Group	Zipper			Trading			Processing			Corporate			Elimination			Total
30 June 2025	RMB’000			RMB’000			RMB’000			RMB’000			RMB’000			RMB’000
Revenue:
Sales to external customers		199,516			107,468			28,104			-			-			335,088
Inter-segment sales		8,277			-			25,329			-			(33,606	)		-
Total revenue		207,793			107,468			53,433			-			(33,606	)		335,088

Results:
Segment gross profit		19,772			2,735			1,967			-			-			24,474

Segment results		860			2,460			(3,991	)		(4,382	)		-			(5,053	)

Interest income		366			1			1			36			-			404
Financial costs		(2,298	)		(1,125	)		(14	)		-			-			(3,437	)

Loss before income tax																	(8,086	)
Income tax expenses																	(1,433	)

Loss attributable to shareholders																	(9,519	)

Other segment information
Depreciation and amortisation		14,251			2			6,364			188			-			20,805
Net provision for/(reversal of) allowance for trade and other receivables		1,856			-			(860	)		-			-			996
Net provision for/(reversal of) allowance for advances to suppliers		(597	)		-			120			-			-			(477	)

Total assets		576,250			65,594			124,909			57,860			-			824,613
Total assets include:
Capital expenditure for property, plant and equipment		5,163			-			6,697			-			-			11,860

Total liabilities		(178,891	)		(39,755	)		(27,012	)		(14,836	)		-			(260,494	)

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E.	NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANICAL STATEMENTS

SEGMENT INFORMATION AND REVENUE (CONTINUED)

Business segments (Continued)

Group	Zipper			Trading			Processing			Corporate			Elimination			Total
30 June 2024	RMB’000			RMB’000			RMB’000			RMB’000			RMB’000			RMB’000
Revenue:
Sales to external customers		201,671			110,238			27,108			-			-			339,017
Inter-segment sales		12,861			-			13,316			-			(26,177	)		-
Total revenue		214,532			110,238			40,424			-			(26,177	)		339,017

Results:
Segment gross profit		13,522			3,219			2,977			-			-			19,718

Segment results		6,597			2,430			10,642			(3,536	)		-			16,133

Interest income		260			1			3			1			-			265
Financial costs		(3,053	)		(1,693	)		-			-			-			(4,746	)

Profit before income tax																	11,652
Income tax expenses																	(1,312	)

Profit attributable to shareholders																	10,340

Other segment information
Depreciation and amortisation		14,060			2			6,438			188			-			20,688
Reversal of allowance for trade and other receivables		(5,267	)		-			(3,410	)		-			-			(8,677	)
Reversal of allowance for advances to suppliers		(64	)		-			(2,697	)		-			-			(2,761	)

Total assets		652,412			75,595			146,356			56,313			-			930,676
Total assets include:
Capital expenditure for property, plant and equipment		4,623			-			3,338			-			-			7,961

Total liabilities		(245,485	)		(49,777	)		(44,052	)		(8,348	)		-			(347,662	)

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E.	NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANICAL STATEMENTS

5.	OTHER INCOME

	6 months ended 30 June 2025		6 months ended 30 June 2024
	RMB’000		RMB’000

Government grants		313		210
Foreign exchange gain, net		-		1,031
Rental and management income		4,954		4,762
Gain on disposal of property, plant and equipment		-		7,330
Others		7		489

		5,274		13,822

6.	INTEREST INCOME AND FINANCIAL COSTS

	6 months ended 30 June 2025		6 months ended 30 June 2024
	RMB’000		RMB’000
Interest income from:
- Bank deposits		404		265

Interest expense on:
- Bank loans		3,437		4,746

7.	OTHER EXPENSES

	6 months ended 30 June 2025		6 months ended 30 June 2024
	RMB’000		RMB’000

Written off of property, plant and equipment		-		207
Loss on disposal of property, plant and equipment		330		-
Foreign exchange loss, net		2,162		-
Others		-		55

		2,492		262

PROFIT/(LOSS) BEFORE INCOME TAX

The following charges/(credits) were included in determination of profit/(loss) before income tax:

	6 months ended 30 June 2025			6 months ended 30 June 2024
	RMB’000			RMB’000

Personnel expenses		46,236			37,174
Loss/(Gain) on disposal of property, plant and equipment		330			(7,330	)
Written off of property, plant and equipment		-			207
Net provision for/(reversal of) allowance for trade receivables		996			(8,677	)
Net reversal of allowance for advances to suppliers		(477	)		(2,761	)

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E.	NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANICAL STATEMENTS

RELATED PARTY TRANSACTIONS

There are no material related party transactions apart from those disclosed elsewhere in the financial statements.

10.

TAXATION

	6 months ended 30 June 2025		6 months ended 30 June 2024
	RMB’000		RMB’000

Current income tax expenses		927		1,312
Deferred tax		506		-

Income tax expenses for the period		1,433		1,312

Note:

On 22 February 2008, the State Administration of Taxation of China issued a circular Caishui 2008 No.001, which stated that distribution of dividends from profits accumulated from 1 January 2008, shall be subject to a withholding tax on distribution to foreign investors. Accordingly, the Group had provided for deferred tax liabilities on the Group’s profit-making PRC subsidiaries’ net profit attained from 1 January 2008 onwards. As Jade Star (the PRC’s subsidiaries’ immediate holding company) is incorporated in the British Virgin Islands, the applicable withholding tax rate is 10%.

11.

EARNINGS / (LOSS) PER SHARE

Basic earnings / (loss) per share is calculated by dividing the earnings / loss for the period attributable to owners of the Company by the weighted average number of ordinary shares outstanding during the financial period amounting to 17,205,438 ordinary shares (2024: 17,205,438).

The following tables reflect the earnings / (loss) and share data used in the computation of basic and diluted earnings / (loss) per share for the periods ended:

	Group
	30 June 2025			30 June 2024
	RMB'000			RMB'000

(Loss)/Profit for the period attributable to owners of the Company		(9,580	)		10,266

No. of shares

’000

No. of shares

’000

Weighted average number of ordinary shares for basic and diluted earnings/ (loss) per share computation

17,205

17,205

Note: Basic earnings / (loss) per share is computed based on weighted average number of shares in issue in 17,205,438 ordinary shares (2024: 17,205,438).

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E.	NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANICAL STATEMENTS

11.

EARNINGS / (LOSS) PER SHARE (CONTINUED)

	Group
	30 June 2025			30 June 2024

Basic and diluted (loss)/earnings per share (RMB per share)		(0.56	)		0.60

12.

NET ASSET VALUE PER SHARE

Group

Company

30 June 2025

31 December 2024

30 June 2025

31 December 2024

Net asset value per share based on issued share capital at the end of the period (in RMB)

32.8

33.2

33.4

Net asset value per share for both periods was computed based on the number of shares in issue of 17,205,438.

13.

DIVDENDS

No interim dividend for the half year ended 30 June 2025 (30 June 2024: Nil) was recommended as the Group was in loss position and intends to conserve cash for its operational needs.

14.

PROPERTY, PLANT AND EQUIPMENT

During the six months ended 30 June 2025, the Group acquired assets amounting to RMB11.9 million (30 June 2024: RMB 8.0 million).

15.

INVENTORIES

	Group
	30 June 2025		31 December 2024
	RMB'000		RMB'000

Raw materials		29,336		33,579
Work-in-progress		13,311		11,025
Finished goods		31,442		21,833

		74,089		66,437

- 16 -

E.	NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANICAL STATEMENTS

16.

TRADE AND OTHER RECEIVABLES

	Group						Company
	30 June 2024			31 December 2024			30 June 2025		31 December 2024
	RMB'000			RMB'000			RMB'000		RMB'000

Trade receivables		251,828			286,997			-		-
Less: loss allowance		(42,666	)		(41,670	)		-		-

		209,162			245,327			-		-

Bills receivables		218			536			-		-
Other receivables		18,849			19,648			2		2
Amount due from subsidiaries (non-trade)		-			-			240,284		244,343

Total trade and other receivables		228,230			265,511			240,286		244,345

Loss allowance

	30 June 2025		31 December 2024
	RMB’000		RMB’000

At 1 January		41,670		52,303
Net (Reversal)/Charge for the financial period/year		996		(10,633	)

		42,666		41,670

17.

PREPAYMENTS

	30 June 2025		31 December 2024
	RMB’000		RMB’000

Advances to suppliers		42,603		47,676
Prepayment for property, plant and equipment		5,821		5,857
Prepaid operating expenses		8,666		3,897

		57,090		57,430

18.

SHARE CAPITAL AND TREASURY SHARES

(a)

Share capital

Group and Company

2025

2024

No. of shares

Value

No. of shares

Value

‘000

RMB’000

‘000

RMB’000

At 30 June/31 December

17,205

1,874

17,205

1,874

The holders of ordinary shares (except treasury shares) are entitled to receive dividends as and when declared by the Company. All ordinary shares carry one vote per share without restrictions. On 24 December 2024, the Company announced that the Capital Reorganisation were effected to reduce the par value of each ordinary shares from SGD 5.00 each to SGD 0.02 each.

- 17 -

E.	NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANICAL STATEMENTS

18.

SHARE CAPITAL AND TREASURY SHARES (CONTINUED)

(b)

Treasury shares

Group and Company

2025

2024

No. of shares

Value

No. of shares

Value

‘000

RMB’000

‘000

RMB’000

At 30 June/31 December

277

6,408

277

6,408

Treasury shares relate to ordinary shares of the Company that are held by the Company.

19.

TRADE AND OTHER PAYABLES

Group

Company

30 June 2025

31 December 2024

30 June 2025

31 December 2024

RMB'000

RMB'000

RMB'000

RMB'000

Trade payables

31,232

15,506

Amounts due to directors (non-trade)

10,148

8,780

9,225

6,493

Total trade and other payables

41,380

24,286

9,225

6,493

20.

OTHER LIABILITIES

Group

Company

30 June 2025

31 December 2024

30 June 2025

31 December 2024

RMB'000

RMB'000

RMB'000

RMB'000

Contract liabilities – advances from customers

35,025

32,484

Accrued salary and bonuses

18,185

19,619

389

Other accruals

17,647

19,624

1,274

1,336

Total other liabilities

70,857

71,727

1,633

1,388

- 18 -

E.	NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANICAL STATEMENTS

21.

LOANS AND BORROWINGS

	Group
	30 June 2025		31 December 2024
	RMB'000		RMB'000
Bills payables to banks
Bill 1		42,180		40,180
Bill 3		-		20,000
Bill 4		36,821		44,891

		79,001		105,071
Short-term bank loans:
Loan 1		35,504		89,504
Loan 2		10,000		10,000

		45,504		99,504

Total loans and borrowings		124,505		204,575

	1	These bill payable to bank (Bill 1) and short-term bank loan (Loan 1) are secured by bank deposits of Jinjiang Fookhing Zipper Co., Ltd, and certain land use rights and buildings owned by Jinjiang Jianxin Weaving Co., Ltd, located at Donghaian Development Zone, Shenhu Town, Jinjiang City, Fujian Province, the PRC and personal guarantee from related party – Mr. Hong Qing Liang (Executive Chairman), and Ms. Shi MeiMei (spouse of Executive Chairman), and corporate guarantee from related party Jinjiang Fuxing Dress Co., Ltd and independent third party – Jinjiang Yuanda Garment Weaving Co., Ltd.

	2	This short-term bank loan (Loan 2) is secured by certain land use rights and buildings owned by Jinjiang Fookhing Zipper Co., Ltd, located at Hangbian Industrial Area, Longhu Town, Jinjiang City, Fujian Province, the PRC and personal guarantee from related party – Mr. Hong Qing Liang (Executive Chairman) and Ms. Shi MeiMei (spouse of Executive Chairman), and corporate guarantee from a related party – Jinjiang Fuxing Dress Co., Ltd.

	3	These bill payable to bank (Bill 3) is secured by bank deposits of Jinjiang Fuxing Dress Co., Ltd, and certain land use rights and buildings owned by Fulong Zipper and Weaving Co., Ltd, located at Donghaian Comprehensive Development Zone, Shenhu Town, Jinjiang City, Fujian Province, the PRC. and personal guarantee from related parties – Mr. Hong Qing Liang (Executive Chairman) and Ms. Shi MeiMei (spouse of Executive Chairman).

	4	Bill payable to bank (Bill 4) is secured by a charge over a property (Unit 13 on 5th Floor) located at Seapower Tower Concordia Plaza, No.1 Science Museum Road, Kowloon owned by Goldplan Corporation Limited, corporate guarantee from the Company, and personal guarantee from a related party – Mr. Hong Qing Liang (Executive Chairman).
		Goldplan Corporation Limited is wholly owned by Mr. Hong Qing Liang (Executive Chairman).

	All loans and borrowings are denominated in the functional currencies of the respective entities as at 30 June 2025 and 31 December 2024. The short-term loans bear interest ranging from 4.35% to 6.09% (31 December 2024: 4.35% to 6.09%) and are repayable within 12 months.

- 19 -

E.	NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANICAL STATEMENTS

21.

CAPITAL COMMITMENTS

The Group had no material capital commitments for the half year ended 30 June 2025.

22.

SUBSEQUENT EVENTS

	(a)	Proposed Disposal of Jinjiang Jianxin Weaving Co., Ltd.
		As announced on 31 July 2025, the Group has obtained approval from shareholders in the Special General Meeting (“SGM”) held on 31 July 2025 to dispose of its indirect wholly owned subsidiary, Jinjiang Jianxin Weaving Co., Ltd., which operates in the processing segment. The proposed disposal was completed on 6 August 2025. The disposal proceeds received will help to strengthen the Group’s working capital and further improve its financial position.

	(b)	Proposed Listing in the United States of America
		The Company has proposed a listing on National Association of Security Dealers Automated Quotations (“NASDAQ”) as part of its strategic expansion plans. As announced on 14 July 2025 per the update on the proposed NASDAQ listing, the Company intends to continue undertaking the proposed NASDAQ listing as well as the American Depositary Share Offering. The Company will make further updates upon material developments.

- 20 -

F.	OTHER INFORMATION REQUIRED BY LISTING RULE APPENDIX 7.2

1.	Review
	The consolidated statement of the financial position of Fuxing China Group Limited and its subsidiaries as at 30 June 2025 and the related consolidated profit or loss and other comprehensive income consolidated statement of changes in equity and consolidated statement of cash flows for the six-month period then ended and certain explanatory notes have not been audited or reviewed.

2.	Where the latest financial statements are subject to an adverse opinion, qualified opinion or disclaimer of opinion:-

	(a)	Updates on the efforts taken to resolve each outstanding audit issue.
	(b)	Confirmation from the Board that the impact of all outstanding audit issues on the financial statements have been adequately disclosed.
	This is not required for any audit issue that is a material uncertainty relating to going concern.
	Not applicable. The latest audited financial statements of the Group for the financial year ended 31 December 2024 was not subject to any adverse opinion, qualified opinion, or disclaimer of opinion.

3.	Review of performance of the Group

	Group
	6 months Ended 30/6/2025 Unaudited			6 months Ended 30/6/2024 Unaudited			Increase/ (Decrease)
REVENUE	RMB'000			RMB'000			%
Zipper		199,516			201,671			(1	)
Trading		107,468			110,238			(3	)
Processing		53,433			40,424			32
Inter-segment sales		(25,329	)		(13,316	)		90
Total Group Revenue		335,088			339,017			(1	)

COST OF SALES
Zipper		179,743			188,149			(4	)
Trading		104,734			107,018			(2	)
Processing		51,466			37,448			37
Inter-segment sales		(25,329	)		(13,316	)		90
Total Group Cost of Sales		310,614			319,299			(3	)

GROSS PROFIT
Zipper		19,773			13,522			46
Trading		2,734			3,220			(15	)
Processing		1,967			2,976			(34	)
Total Gross Profit		24,474			19,718			24

GROSS PROFIT MARGIN
	%			%			% pts
Zipper		9.9			6.7			3.2
Trading		2.5			2.9			(0.4	)
Processing		3.7			7.4			(3.7	)
Average Gross Profit Margin		7.3			5.8			1.5

- 21 -

F.	OTHER INFORMATION REQUIRED BY LISTING RULE APPENDIX 7.2

Revenue

The Group’s revenue decreased by RMB3.9 million (or 1%) to RMB335.1 million. This was mainly due to the decrease in the sales of the Trading segment (RMB2.8 million) and the Zipper segment (RMB2.1 million). The decrease was partially offset by the increase in the sales of the Processing segment (RMB1.0 million).

The inter-segment sales elimination represented the dyeing and electroplating services provided by the Processing segment to the Zipper segment.

The slightly decrease in revenue from Zipper segment for 1H2025 was mainly due to the decrease in sales orders for finished zippers from customers.

The Group’s Trading segment relates to the sourcing and buying of certain raw materials (such as rubber thread, nylon fabric and nylon yard) in accordance with customers’ requirements. The profit margin and all purchases were based on confirmed sales. As such, the sales volume, profit margin are dependent on customers’ demand. The decrease in revenue from the Trading segment was mainly due to the decrease in sales volume during 1H2025 as a result of decreased demand.

Gross Profit and Gross Profit Margin

The Group’s gross profit increased by RMB4.8 million (or 24%) to RMB24.5 million, mainly due to the increase in gross profit from the Zipper segment.

Average gross profit margin increased by 1.5 percentage points to 7.3% mainly due to the increase in gross profit margin from the Zipper segment as a result of the decrease in the cost of productions.

Other income and expenses

Other income comprised government grants, rental and management fee income. Other expenses comprised loss on disposal of property, plant and equipment, and net foreign exchange loss.

The loss on disposal of plant and machinery of RMB0.3 million arose from the sale proceeds received from the disposal of old motor vehicles.

The foreign exchange loss arose from the appreciation of RMB against USD and SGD in the Group’s foreign currencies denominated bank balances and from the translation of HK dollar denominated balances owing from subsidiaries in the Company's book due to appreciation of RMB against HK dollar.

Selling and distribution expenses

Selling and distribution expenses decreased by RMB0.1 million (or 1%) to RMB6.2 million mainly due to decrease in business trips and entertainment as a result of decrease in promotional activities, eg. roadshows, exhibitions, etc.

General and administrative expenses

General and administrative expenses increased by RMB15.3 million (or 141%) to RMB26.1 million mainly due to net provision for allowance for trade receivables of RMB 1.0 million as compared to net reversal of allowance for trade receivables of RMB8.7 million in 1H2024. In addition, net reversal of allowance for advances to suppliers amounted to RMB0.5 million in 1H2025 as compared to RMB2.8 million in 1H2024.

- 22 -

F.	OTHER INFORMATION REQUIRED BY LISTING RULE APPENDIX 7.2

Finance income and expenses

Finance expenses decreased by RMB1.3 million to RMB3.4 million. This was mainly due to the decrease in the short-term bank loans in 1H2025 compared to 1H2024.

Finance income increased by RMB0.1 million (or 52%) to RMB0.4 million was mainly due to the increase in cash at bank during the year.

FINANCIAL POSITIION

Non-current assets

As at 30 June 2025, non-current assets amounted to RMB326.6 million comprising of property, plant and equipment, investment properties, intangible assets and land use rights.

The Group’s property, plant and equipment amounted to RMB260.3 million, an decrease of 4% (or RMB9.7 million) compared to RMB270.0 million as at 31 December 2024. The decrease was mainly due to the depreciation expenses.

Intangible assets represented the acquisition of new operation system for factory ussge.

Current assets

As at 30 June 2025, current assets amounted to RMB498.1 million, decreased by 11% (or RMB61.0 million) compared to RMB559.0 million as at 31 December 2024. This was largely due to the decrease in cash and bank balance for settlement of short-term bank loans in 1H2025 and also decrease in trade receivables as a result of improvement of cash collection from customers.

Inventories increased by RMB7.7 million (or 12%) to RMB74.1 million due to a built-up of inventories as the Group held a 3-months raw materials production requirement for the purpose of productions compared to a 2-months raw materials production requirement as at 31 December 2023.

For advances to suppliers, the Group will secure supply agreements with its various suppliers. The prepayments to suppliers were to secure the supply of raw materials at competitive prices for the year, at about 2% to 3% discount of the total contracted value. The Group will make the advance payment upon the signing of the purchase agreements. After the receipt of the advance payments, the suppliers will take approximately 1 to 2 months to make full delivery of the raw materials to the Group’s warehouse.

Cash and bank balances decreased by RMB31.0 million to RMB138.6 million mainly due to the settlement of short-term bank loans in 1H2025.

Current liabilities

As at 30 June 2025, total current liabilities were RMB240.1 million, decreased by 21% (or RMB64.3 million) compared to RMB304.4 million as at 31 December 2024. This was mainly attributable to the decrease in short-term bank loans and bills payable.

The loans and borrowings decreased by RMB80.0 million (or 39%) to RMB124.5 million as at 30 June 2025 compared to RMB204.6 million as at 31 December 2024. This was mainly due to the repayment of short-term bank loans and bills payable during 1H2025.

The amount due to a director was funds remitted from Mr Hong Qing Liang for the payment of the legal and professional fees and expenses incurred by the Company. There is no fixed payment schedule for the advances from Mr. Hong Qing Liang who had also agreed that all the advances granted shall be interest free.

- 23 -

F.	OTHER INFORMATION REQUIRED BY LISTING RULE APPENDIX 7.2

	Non-current liabilities Non-current liabilities comprised of deferred tax liabilities. The increase in deferred tax liabilities was due to the deferred tax charge of RMB0.5 million in 1H2025 as explained under note 10 of the taxation charge. CASH FLOW Operating activities Net cash flows generated from operating activities in 1H2025 amounted to RMB36.4 million compared to RMB56.8 million in 1H2024. This was mainly due to the increase in inventories in 1H2025 as compared to the decrease in inventories in 1H2024. Investing activities Net cash flows used in investing activities in 1H2025 amounted to RMB11.3 million compared to RMB0.4 million in 1H2024. This was mainly due to the acquisition of plant and equipment during 1H2025. Financing activities Net cash flows used in financing activities in 1H2025 amounted to RMB38.1 million while net cash flows generated from financing activities in 1H2024 amounted to RMB22.0 million. This was mainly due to the higher repayment of bank loans and lower proceeds from new bank loans in 1H2025 as compared to 1H2024.

4.	Where a forecast, or prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results

	No forecast or prospect statement has been previously disclosed to shareholders.

A commentary at the date of the announcement of the significant trends and competitive conditions of the industry in which the Group operates and any known factors or events that may affect the Group in the next operating period and the next 12 months

For the next 12 months, the Group expects its operating results will continue to be impacted by high production costs, razor thin gross margin and its business outlook to be affected by uncertain customers’ demand amidst challenging China’s economic growth outlook. In addition, the recent tariffs announced by the United States of America (“USA”) on foreign imports from China and various countries could result in a more uncertain and volatile global trade environment.

On the potential impact of tariffs imposed by the USA on the Group’s sales and profitability, the Group currently does not directly engage in export activities. Instead, it sells primarily to domestic customers which subsequently handle exports. As such, the immediate impact of tariffs has not been directly reflected in the Group’s pricing or order volumes. While some downstream customers may eventually face increased export-related costs, there has been no indication thus far that these customers intend to pass on the tariff burden to the Group by requesting price reductions. The Group’s pricing is already highly competitive, leaving minimal room for further price concessions and margin compression. At present, while Management does not foresee a significant adverse impact on gross profit margin arising from the higher tariff developments, there may have some dampening effect on the customers’ demand for the Group’s zippers arising from a more muted business outlook.

In order to navigate through the challenging business environment, the Group will continue to expend marketing efforts in its sales outreach to expand its customer base to improve its sales. In addition, the Group will be vigilant in managing its expenses and monitor its receivables and collections closely to minimize bad debts and ensure the Group’s working capital is sufficient and healthy to support its business operations. As announced on 14 August 2025, the Group has completed the disposal of its indirect wholly owned subsidiary in the processing segment. The disposal proceeds received will bolster the Group’s working capital and further improve its financial position.

- 24 -

F.	OTHER INFORMATION REQUIRED BY LISTING RULE APPENDIX 7.2

6.	Dividend information

(a)

Current Financial Period Reported On

Any dividend recommended for the current financial period reported on?

(b)

Corresponding Period of the Immediately Preceding Financial Year

Any dividend declared for the corresponding period of the immediately preceding financial year?

(c)

Date payable

Not Applicable

(d)

Books closure date

Not Applicable

Interested person transactions

The Group has not obtained a general mandate from shareholders of the Company for Interested Person Transactions.

Confirmation that the issuer has procured undertaking from all its directors and executive officers (in the format set out in Appendix 7.7) under Rule 720(1)

The Company has received undertaking from all its directors and executive officers in the format as set in Appendix 7.7 under Rule 720(1) of the Listing Manual of the SGX-ST.

- 25 -

FUXING CHINA GROUP LIMITED

(Incorporated in Bermuda)

Confirmation By Board

On behalf of the Board of Directors of the Company, we, the undersigned, hereby confirm to the best of our knowledge that nothing has come to the attention of the Board of Directors of the Company which may render the financial statements for the half year ended 30 June 2025 to be false or misleading in any material aspect.

On behalf of the

Board of Directors of

Fuxing China Group Limited

..........................................

Hong Qing Liang

Director

..........................................

Hong Peng You

Director

Date: 14 August 2025

- 26 -