[Condensed Consolidated Statement of Profit or Loss](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) This section presents the company's financial performance, highlighting revenue, gross profit, and various expenses leading to the loss for the period [Revenue](index=1&type=section&id=Revenue) Revenue for the six months ended June 30, 2025, decreased by approximately 2% to HKD 98,234 thousand compared to the prior year | Metric | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 98,234 | 100,511 | -2.27% | [Gross Profit](index=1&type=section&id=Gross%20Profit) Gross profit declined by approximately 11% to HKD 14,972 thousand for the six months ended June 30, 2025 | Metric | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Gross Profit | 14,972 | 16,811 | -10.94% | [Other Income and Net Other Losses](index=1&type=section&id=Other%20Income%20and%20Net%20Other%20Losses) Other income decreased, while net other losses significantly reduced by 91%, primarily due to the absence of property, plant, and equipment disposal losses from the prior year | Metric | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Other Income | 68 | 118 | -42.37% | | Net Other Losses | (839) | (9,263) | -90.94% | - The significant reduction in net other losses was primarily due to a loss of approximately **HKD 8,583 thousand** from the disposal of property, plant, and equipment in the 2024 financial period, which was related to the relocation of production facilities due to environmental requirements[32](index=32&type=chunk) [Selling and Distribution Expenses](index=1&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and distribution expenses decreased by 16% to HKD 17,654 thousand, mainly attributable to lower transportation costs | Metric | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Selling and Distribution Expenses | (17,654) | (20,927) | -15.64% | - The decrease in selling and distribution expenses was primarily due to reduced transportation costs[33](index=33&type=chunk) [Administrative Expenses](index=1&type=section&id=Administrative%20Expenses) Administrative expenses slightly increased by 1% to HKD 10,000 thousand, mainly driven by higher legal and professional fees | Metric | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Administrative Expenses | (10,000) | (9,861) | 1.41% | - The increase in administrative expenses was mainly due to higher legal and professional expenses[34](index=34&type=chunk) [Finance Costs](index=1&type=section&id=Finance%20Costs) Finance costs significantly increased by 113% to HKD 1,261 thousand, primarily due to higher interest on interest-bearing borrowings and lease liabilities | Metric | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Finance Costs | (1,261) | (592) | 113.01% | - The increase in finance costs was primarily due to higher interest on interest-bearing borrowings (excluding unsecured bonds) and lease liabilities[35](index=35&type=chunk) [Loss Before Tax](index=2&type=section&id=Loss%20Before%20Tax) Loss before tax narrowed to HKD 15,122 thousand, a 38% reduction from the prior year, mainly benefiting from a significant decrease in net other losses | Metric | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Loss Before Tax | (15,122) | (24,459) | -38.18% | - The reduction in loss before tax was primarily due to a decrease in net other losses compared to the prior year[36](index=36&type=chunk) [Loss for the Period](index=2&type=section&id=Loss%20for%20the%20Period) Loss for the period narrowed to HKD 15,122 thousand, a 20.8% decrease from the prior year, with loss attributable to owners of the Company at HKD 11,043 thousand | Metric | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Loss for the Period | (15,122) | (19,099) | -20.82% | | Loss for the Period Attributable to Owners of the Company | (11,043) | (13,926) | -20.70% | [Loss Per Share](index=2&type=section&id=Loss%20Per%20Share) Basic and diluted loss per share improved to HKD 5.12 cents, compared to HKD 7.75 cents in the prior year | Metric | June 30, 2025 (HKD cents) | June 30, 2024 (HKD cents) | Change (%) | | :--- | :--- | :--- | :--- | | Basic and Diluted Loss Per Share | (5.12) | (7.75) | -33.94% | [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This section details the total comprehensive loss for the period, including other comprehensive income items [Total Comprehensive Loss for the Period](index=3&type=section&id=Total%20Comprehensive%20Loss%20for%20the%20Period) Total comprehensive loss for the period decreased by 34.86% to HKD 13,913 thousand, mainly due to a favorable change in exchange differences on translation of overseas operations from loss to gain | Metric | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total Comprehensive Loss for the Period | (13,913) | (21,359) | -34.86% | | Exchange Differences on Translation of Overseas Operations | 1,209 | (2,260) | N/A (from loss to gain) | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This section provides a snapshot of the company's assets, liabilities, and equity at the end of the reporting period [Non-current Assets](index=4&type=section&id=Non-current%20Assets) Total non-current assets decreased by 4% to HKD 118,419 thousand compared to December 31, 2024 | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Property, Plant and Equipment | 77,174 | 79,991 | -3.52% | | Right-of-use Assets | 41,193 | 43,347 | -4.97% | | Total Non-current Assets | 118,419 | 123,389 | -4.03% | [Current Assets](index=4&type=section&id=Current%20Assets) Total current assets decreased by 21.68% to HKD 123,535 thousand, primarily due to reductions in trade receivables and prepayments | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Inventories | 11,292 | 11,823 | -4.49% | | Trade and Bills Receivables | 96,090 | 114,453 | -16.04% | | Prepayments, Deposits and Other Receivables | 4,158 | 17,350 | -76.00% | | Cash and Cash Equivalents | 8,384 | 10,593 | -20.95% | | Total Current Assets | 123,535 | 157,728 | -21.68% | [Current Liabilities](index=4&type=section&id=Current%20Liabilities) Total current liabilities decreased by 11% to HKD 170,608 thousand, mainly driven by reductions in trade payables and interest-bearing borrowings | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Trade Payables | 67,625 | 91,836 | -26.47% | | Accruals and Other Payables | 85,107 | 76,514 | 11.23% | | Interest-bearing Borrowings | 8,294 | 11,465 | -27.66% | | Total Current Liabilities | 170,608 | 191,591 | -10.95% | [Net Current Liabilities](index=5&type=section&id=Net%20Current%20Liabilities) Net current liabilities expanded by 39% to HKD 47,073 thousand, indicating increased liquidity pressure | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Net Current Liabilities | (47,073) | (33,863) | 38.99% | - Current liabilities exceeded current assets by approximately **HKD 47,073 thousand**, indicating a material uncertainty that may cast significant doubt on the Group's ability to continue as a going concern[10](index=10&type=chunk) [Non-current Liabilities](index=5&type=section&id=Non-current%20Liabilities) Total non-current liabilities decreased by 39.56% to HKD 6,517 thousand, primarily due to reductions in lease liabilities and interest-bearing borrowings | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Lease Liabilities | 2,709 | 4,912 | -44.85% | | Interest-bearing Borrowings | 3,808 | 5,872 | -35.29% | | Total Non-current Liabilities | 6,517 | 10,784 | -39.56% | [Net Assets and Total Equity](index=5&type=section&id=Net%20Assets%20and%20Total%20Equity) Net assets and total equity decreased by 17.67% to HKD 64,829 thousand, with equity attributable to owners of the Company decreasing by approximately 16% | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Net Assets | 64,829 | 78,742 | -17.67% | | Equity Attributable to Owners of the Company | 52,033 | 62,007 | -16.10% | | Total Equity | 64,829 | 78,742 | -17.67% | - Equity attributable to owners of the Company decreased by approximately **16%** compared to December 31, 2024[38](index=38&type=chunk) [Notes](index=6&type=section&id=Notes) This section provides detailed explanations and disclosures regarding the financial statements [Company Information](index=6&type=section&id=Company%20Information) Sunway International Holdings Limited is incorporated in Bermuda, listed on the Hong Kong Stock Exchange, with its principal place of business in Hong Kong, and its controlling shareholder is Full Harvest Group Limited, ultimately controlled by Mr. Chim Pui Chung - The Company is a limited company incorporated in Bermuda, with its shares listed on The Stock Exchange of Hong Kong Limited[7](index=7&type=chunk) - The controlling shareholder is Full Harvest Group Limited, which is ultimately controlled by Mr. Chim Pui Chung[7](index=7&type=chunk) [Basis of Preparation](index=6&type=section&id=Basis%20of%20Preparation) The interim financial information is prepared in accordance with HKAS 34 and the Listing Rules, presented on a historical cost basis, with management assessing going concern and implementing measures to mitigate liquidity pressure - The interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 and the Listing Rules, adopting the same accounting policies as the 2024 annual financial statements, except for specific amendments[8](index=8&type=chunk) - The Group is principally engaged in the manufacture and trading of pre-stressed high-strength concrete piles, ready-mixed commercial concrete, autoclaved aerated concrete products, and ecological concrete products, along with related processing income[9](index=9&type=chunk) - For the six months ended June 30, 2025, the Group incurred a net loss of approximately **HKD 15,122 thousand**, with current liabilities exceeding current assets by approximately **HKD 47,073 thousand**, indicating a material uncertainty regarding its ability to continue as a going concern[10](index=10&type=chunk) - The Board has reviewed cash flow forecasts and implemented measures to mitigate liquidity pressure, including actively recovering receivables, strictly monitoring customer credit, implementing cost controls, and considering other financing arrangements[10](index=10&type=chunk)[12](index=12&type=chunk) [Application of Revised Hong Kong Financial Reporting Standards](index=8&type=section&id=Application%20of%20Revised%20Hong%20Kong%20Financial%20Reporting%20Standards) The application of revised HKFRS accounting standards in this interim period had no significant impact on the Group's financial position or performance - The application of revised Hong Kong Financial Reporting Standards had no significant impact on the Group's financial position and performance[13](index=13&type=chunk) [Segment Information](index=8&type=section&id=Segment%20Information) The Group operates in a single reportable segment: the sale and manufacture of pre-stressed high-strength concrete piles and other building materials, with all revenue and non-current assets derived from China - The Group has a single reportable and operating segment: the sale and manufacture of pre-stressed high-strength concrete piles and other building materials[15](index=15&type=chunk) - All of the Group's revenue and non-current assets are generated from the People's Republic of China[15](index=15&type=chunk) Revenue from Major Customers (HKD thousands) | Customer | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | Customer A | 22,029 | — | | Customer B | 10,455 | N/A | | Customer C | — | 11,951 | | Customer D | — | 11,421 | [Revenue (Notes)](index=9&type=section&id=Revenue_%28Notes%29) Revenue primarily consists of contract revenue recognized at a point in time from the sale of pre-stressed high-strength concrete piles and other products Revenue by Source (HKD thousands) | Revenue Source | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | Sale of Pre-stressed High-strength Concrete Piles and Others | 98,234 | 100,511 | [Net Other Losses (Notes)](index=9&type=section&id=Net%20Other%20Losses_%28Notes%29) Net other losses primarily include provisions for compensation and legal fees for legal cases, with the prior year also including losses from the disposal of property, plant, and equipment Components of Net Other Losses (HKD thousands) | Item | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | Compensation and Provision for Legal Cases | (839) | (821) | | Loss on Disposal of Property, Plant and Equipment | — | (8,583) | [Finance Costs (Notes)](index=10&type=section&id=Finance%20Costs_%28Notes%29) Finance costs, totaling HKD 1,261 thousand in 2025, increased from HKD 592 thousand in 2024, mainly comprising interest on interest-bearing borrowings, unsecured bonds, and lease liabilities Components of Finance Costs (HKD thousands) | Item | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | Interest on Interest-bearing Borrowings (excluding unsecured bonds) | 720 | 406 | | Interest on Unsecured Bonds | 112 | 112 | | Interest on Lease Liabilities | 429 | 74 | | **Total** | **1,261** | **592** | [Loss Before Tax (Notes)](index=10&type=section&id=Loss%20Before%20Tax_%28Notes%29) Loss before tax is calculated after deducting items such as depreciation of property, plant and equipment, cost of inventories sold, and staff costs Items Deducted in Loss Before Tax Calculation (HKD thousands) | Item | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | Depreciation of Property, Plant and Equipment | 3,849 | 5,197 | | Depreciation of Right-of-use Assets | 3,406 | 836 | | Cost of Inventories Sold | 55,070 | 54,011 | | Staff Costs (including directors' emoluments) | 13,061 | 12,466 | [Income Tax Credit](index=11&type=section&id=Income%20Tax%20Credit) There was no income tax credit for the 2025 period, while 2024 included an over-provision for prior years, and no income tax provision was made due to the absence of assessable profits in Hong Kong and China Income Tax Credit (HKD thousands) | Item | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | Current Tax — China Corporate Income Tax — Over-provision in Prior Years | — | (5,360) | - No provision for Hong Kong profits tax and China corporate income tax was made as the Group had no assessable profits in Hong Kong and China[21](index=21&type=chunk) [Loss Per Share (Notes)](index=11&type=section&id=Loss%20Per%20Share_%28Notes%29) Basic and diluted loss per share are calculated based on the loss attributable to owners of the Company and the weighted average number of ordinary shares, with convertible bonds not included due to their anti-dilutive effect Loss Per Share Calculation Inputs (HKD thousands) | Metric | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | Loss for the Period Attributable to Owners of the Company | (11,043) | (13,926) | | Weighted Average Number of Ordinary Shares (thousands) | 215,520 | 179,600 | - Outstanding convertible bonds had an anti-dilutive effect on basic loss per share and were therefore not assumed to be converted for diluted loss per share calculation[24](index=24&type=chunk) [Dividends](index=12&type=section&id=Dividends) The Board of Directors did not declare or propose any interim dividend for the six months ended June 30, 2025 - No interim dividend was declared or proposed for the six months ended June 30, 2025[25](index=25&type=chunk) [Trade and Bills Receivables](index=12&type=section&id=Trade%20and%20Bills%20Receivables) Trade and bills receivables, net of allowance for credit losses, totaled HKD 96,090 thousand, a 16% decrease from December 31, 2024, with credit terms generally ranging from one to three months, extendable to six months for certain customers Trade and Bills Receivables (HKD thousands) | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Trade Receivables (net of allowance for credit losses) | 96,090 | 112,373 | -14.49% | | Bills Receivables (net of allowance for credit losses) | 0 | 2,080 | -100% | | **Total** | **96,090** | **114,453** | **-16.04%** | - The credit period for trade and bills receivables generally ranges from one to three months from the invoice date, extendable to six months for customers with good relationships[26](index=26&type=chunk) Ageing Analysis of Trade and Bills Receivables (HKD thousands) | Ageing | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Within 3 months | 29,257 | 57,028 | | 4 to 6 months | 18,689 | 32,259 | | 7 to 12 months | 34,861 | 25,166 | | Over 12 months | 13,283 | — | [Trade Payables](index=13&type=section&id=Trade%20Payables) Total trade payables decreased by 26.47% to HKD 67,625 thousand, with an average credit period of one month Trade Payables (HKD thousands) | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Trade Payables | 67,625 | 91,836 | - The average credit period granted by suppliers is one month[28](index=28&type=chunk) Ageing Analysis of Trade Payables (HKD thousands) | Ageing | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Within 3 months | 19,060 | 56,256 | | 4 to 6 months | 14,292 | 25,449 | | 7 to 12 months | 29,345 | 7,565 | | Over 12 months | 4,928 | 2,566 | [Pledged Assets](index=13&type=section&id=Pledged%20Assets) The Group pledged buildings, plant and machinery, and right-of-use assets with a carrying value of HKD 67,783 thousand to secure interest-bearing borrowings, with additional guarantees from a related company and non-controlling interests Pledged Assets (HKD thousands) | Pledged Assets | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Buildings | 38,799 | 42,115 | | Plant and Machinery | 7,979 | 8,691 | | Right-of-use Assets | 21,005 | 21,157 | | **Total** | **67,783** | **71,963** | - Interest-bearing borrowings (excluding unsecured bonds) are secured by land and buildings held by a related company of one of the Group's subsidiaries, personal guarantees provided by subsidiary directors, and guarantees provided by the Group's non-controlling interests[29](index=29&type=chunk) [Management Discussion and Analysis](index=14&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the Group's performance, financial position, and future outlook [Results and Operations Review](index=14&type=section&id=Results%20and%20Operations%20Review) The Group's building materials business revenue slightly decreased due to a weak market, but net other losses significantly reduced, while selling and distribution expenses decreased, administrative expenses slightly increased, and finance costs rose sharply, leading to a narrowed loss before tax despite a lower gross profit margin [Building Materials Business](index=14&type=section&id=Building%20Materials%20Business) The building materials business, primarily operated by Guangdong Hengjia, saw a 2% revenue decrease in the 2025 financial period due to a weak real estate and construction market - The building materials business is operated by Guangdong Hengjia, with production facilities located in Yangjiang City, Guangdong Province, China[31](index=31&type=chunk) - Revenue from pre-stressed high-strength concrete piles and other businesses primarily comprises pre-stressed high-strength concrete piles (**26%**), ready-mixed commercial concrete (**70%**), and bricks (**4%**)[31](index=31&type=chunk) - Revenue from external customers for the 2025 financial period was **HKD 98,234 thousand**, a decrease of approximately **2%** compared to the 2024 financial period, attributed to the weak real estate and construction market[31](index=31&type=chunk) [Net Other Losses (MD&A)](index=14&type=section&id=Net%20Other%20Losses_%28MD%26A%29) Net other losses significantly decreased by 91% to HKD 839 thousand, mainly due to the absence of a substantial loss from the disposal of property, plant, and equipment in the prior year | Metric | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Net Other Losses | (839) | (9,263) | -90.94% | - The reduction in loss was primarily due to a loss of approximately **HKD 8,583 thousand** from the disposal of property, plant, and equipment in the 2024 financial period, which was related to the relocation of production facilities due to environmental requirements[32](index=32&type=chunk) [Selling and Distribution Expenses (MD&A)](index=15&type=section&id=Selling%20and%20Distribution%20Expenses_%28MD%26A%29) Selling and distribution expenses decreased by 16% to HKD 17,654 thousand, primarily due to reduced transportation costs | Metric | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Selling and Distribution Expenses | 17,654 | 20,927 | -15.64% | - The decrease in selling and distribution expenses was primarily due to reduced transportation costs[33](index=33&type=chunk) [Administrative Expenses (MD&A)](index=15&type=section&id=Administrative%20Expenses_%28MD%26A%29) Administrative expenses slightly increased by 1% to HKD 10,000 thousand, mainly due to higher legal and professional expenses | Metric | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Administrative Expenses | 10,000 | 9,861 | 1.41% | - The increase in administrative expenses was mainly due to higher legal and professional expenses[34](index=34&type=chunk) [Finance Costs (MD&A)](index=15&type=section&id=Finance%20Costs_%28MD%26A%29) Finance costs significantly increased by 113% to HKD 1,261 thousand, primarily due to higher interest on interest-bearing borrowings and lease liabilities | Metric | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Finance Costs | 1,261 | 592 | 113.01% | - The increase in finance costs was due to higher interest on interest-bearing borrowings (excluding unsecured bonds) and lease liabilities[35](index=35&type=chunk) [Loss Before Tax (MD&A)](index=15&type=section&id=Loss%20Before%20Tax_%28MD%26A%29) Loss before tax narrowed to HKD 15,122 thousand, a 38% reduction from the prior year, primarily due to a significant decrease in net other losses, despite a decline in overall gross profit margin | Metric | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Loss Before Tax | (15,122) | (24,459) | -38.18% | | Gross Profit Margin | 15.2% | 16.7% | -1.5 percentage points | - The reduction in loss before tax was primarily due to a decrease in net other losses compared to the prior year[36](index=36&type=chunk) - The overall gross profit margin decreased due to lower profitability of bricks[36](index=36&type=chunk) [Interim Dividends](index=15&type=section&id=Interim%20Dividends) The Board of Directors resolved not to declare any interim dividend - The Board of Directors resolved not to declare any interim dividend for the six months ended June 30, 2025[37](index=37&type=chunk) [Liquidity and Financial Resources](index=16&type=section&id=Liquidity%20and%20Financial%20Resources) The Group's operations are financed through equity fundraising, internal cash flow, bank financing, and convertible bonds, with equity attributable to owners decreasing by 16%, cash and cash equivalents at HKD 8,384 thousand, total interest-bearing borrowings at HKD 12,102 thousand, and a gearing ratio of approximately 273% - The Group finances its operations through equity fundraising activities, internally generated cash flows, bank financing from its principal bankers in China, and issued convertible bonds[38](index=38&type=chunk) | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Equity Attributable to Owners of the Company | 52,033 | 62,007 | -16.10% | | Cash and Cash Equivalents | 8,384 | 10,593 | -20.95% | | Total Interest-bearing Borrowings | 12,102 | 17,337 | -30.20% | - The gearing ratio as at June 30, 2025, calculated as total current and non-current liabilities divided by total equity, was approximately **273%**[38](index=38&type=chunk) [Material Investments, Acquisitions and Disposals](index=16&type=section&id=Material%20Investments%2C%20Acquisitions%20and%20Disposals) The Group did not engage in any material investment, acquisition, or disposal activities during the 2025 financial period - The Group had no material investments, acquisitions, or disposals during the 2025 financial period[39](index=39&type=chunk) [Capital Structure](index=16&type=section&id=Capital%20Structure) The Group holds outstanding 2014 and 2024 convertible bonds, with net proceeds of approximately HKD 10,300 thousand from a September 2024 share subscription and convertible bond issuance used for general working capital, including directors' emoluments, staff costs, audit fees, and legal and professional expenses [Convertible Bonds](index=16&type=section&id=Convertible%20Bonds) As of June 30, 2025, the Company had outstanding 2014 and 2024 convertible bonds with principal amounts of HKD 15,000 thousand and HKD 30,000 thousand, respectively, with the Company considering all remaining 2014 convertible bonds invalid and non-convertible Outstanding Convertible Bonds (HKD thousands) | Convertible Bonds | Principal Amount (HKD thousands) | | :--- | :--- | | 2014 Convertible Bonds | 15,000 | | 2024 Convertible Bonds | 30,000 | - The Company considers all remaining 2014 convertible bonds to be invalid and non-convertible into shares of the Company[40](index=40&type=chunk) [Share Subscription and Issue of Convertible Bonds](index=16&type=section&id=Share%20Subscription%20and%20Issue%20of%20Convertible%20Bonds) In September 2024, the Company entered into a share subscription agreement and a 2024 convertible bond subscription agreement with its controlling shareholder, Full Harvest Group Limited, with the transactions completed in November 2024, yielding net proceeds of approximately HKD 10,300 thousand for general working capital - On September 6, 2024, the Company entered into a share subscription agreement and a 2024 convertible bond subscription agreement with its controlling shareholder, Full Harvest Group Limited[41](index=41&type=chunk)[42](index=42&type=chunk) - The share subscription and the issue of the 2024 convertible bonds were completed on November 29, 2024, with net proceeds of approximately **HKD 10,300 thousand** to be used for general working capital purposes[42](index=42&type=chunk) Actual Use of Net Proceeds (HKD millions) | Intended Use of Net Proceeds | Estimated Amount (HKD millions) | Actual Use for the Period Ended June 30, 2025 (HKD millions) | | :--- | :--- | :--- | | Directors' Emoluments and Staff Costs | 3.90 | 1.03 | | Audit Fees and Other Legal and Professional Expenses | 4.40 | 1.23 | | Rent and Others | 2.00 | 0.34 | | **Total** | **10.30** | **2.60** | [Share Options](index=17&type=section&id=Share%20Options) No share options were granted, exercised, cancelled, or lapsed during the 2025 and 2024 financial periods - No share options were granted, exercised, cancelled, or lapsed during the 2025 and 2024 financial periods[43](index=43&type=chunk) [Pledged Assets (MD&A)](index=18&type=section&id=Pledged%20Assets_%28MD%26A%29) Details of the Group's pledged assets, primarily buildings, plant and machinery, and right-of-use assets, are disclosed in Note 14 - Details of the Group's pledged assets are set out in Note 14[44](index=44&type=chunk) [Employees and Remuneration Policy](index=18&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group employed approximately 263 staff in Hong Kong and China, with remuneration policies based on duties, performance, experience, and industry practices, including participation in a Mandatory Provident Fund Scheme - As at June 30, 2025, the Group employed approximately **263** full-time management, administrative, technical, and production staff in Hong Kong and China[45](index=45&type=chunk) - Remuneration, promotion, and salaries are reviewed based on employees' duties, performance, professional experience, and current industry practices[45](index=45&type=chunk) [Foreign Exchange and Currency Risk](index=18&type=section&id=Foreign%20Exchange%20and%20Currency%20Risk) The Group's monetary assets, liabilities, and transactions are primarily denominated in RMB and HKD, exposing it to foreign currency risk between HKD and RMB, which is actively managed and monitored - The Group's monetary assets, liabilities, and transactions are primarily denominated in Renminbi and Hong Kong Dollars[46](index=46&type=chunk) - The Group is exposed to foreign currency risk arising from the Hong Kong Dollar against the Renminbi as its presentation currency, and it manages and monitors foreign exchange risk[46](index=46&type=chunk) [Commitments](index=18&type=section&id=Commitments) As of June 30, 2025, the Group had no significant capital commitments - As at June 30, 2025, the Group had no significant capital commitments[47](index=47&type=chunk) [Significant Events After the End of the Reporting Period](index=18&type=section&id=Significant%20Events%20After%20the%20End%20of%20the%20Reporting%20Period) No significant events affecting the Group have occurred since the end of the reporting period - No significant events affecting the Group have occurred since the end of the reporting period[48](index=48&type=chunk) [Contingent Liabilities](index=19&type=section&id=Contingent%20Liabilities) Counterclaims totaling HKD 262,000 thousand may be time-barred or an abuse of process and could be withdrawn due to the defendant's default and misrepresentations - The defendant delayed submitting counterclaims totaling **HKD 262,000 thousand** to the plaintiff[49](index=49&type=chunk) - Based on legal advice, the counterclaims may be time-barred and/or an abuse of court process, and may be withdrawn due to the defendant's default and false representations[50](index=50&type=chunk)[51](index=51&type=chunk) [Outlook](index=19&type=section&id=Outlook) The Board believes that positive policies and economic development in Guangdong Province will positively impact the building materials industry, benefiting the Group, which is committed to exploring new businesses to expand its scale - The Deputy Director of the Yangjiang City Development and Reform Bureau stated that Yangjiang City will strive to achieve a GDP growth target of approximately **5%**, push fixed asset investment beyond **RMB 70 billion**, and focus on developing green energy, commercial aerospace, low-altitude economy, and marine ranches[50](index=50&type=chunk)[51](index=51&type=chunk) - The Directors believe that Guangdong Province's policies and track record will have a positive impact on the building materials industry, from which the Group will benefit[50](index=50&type=chunk) - The Group is committed to expanding its business scale by exploring new ventures to bring new growth and momentum to the Group[50](index=50&type=chunk) [Other Information](index=20&type=section&id=Other%20Information) This section covers additional disclosures including director information, legal proceedings, securities transactions, and corporate governance [Update on Directors' Information](index=20&type=section&id=Update%20on%20Directors%27%20Information) No changes in directors' information requiring disclosure under Listing Rule 13.51B(1) occurred during the six months ended June 30, 2025, and up to the date of this announcement - No changes in directors' information requiring disclosure occurred during the six months ended June 30, 2025, and up to the date of this announcement[52](index=52&type=chunk) [Legal Proceedings](index=20&type=section&id=Legal%20Proceedings) The Group is involved in multiple legal proceedings, including claims as plaintiff against a vendor for breach of agreement and as defendant in equity freezing and statutory demands, with some progress made in certain cases while others remain ongoing [The Company/Its Subsidiaries as Plaintiff](index=20&type=section&id=The%20Company%2FIts%20Subsidiaries%20as%20Plaintiff) The Company and its subsidiaries, as plaintiffs, allege breach of a sale and purchase agreement by vendor Xiao Guang and guarantor Wang Zhining, seeking rescission and disputing HKD 15,000 thousand in outstanding convertible bonds, while claims against Ms. Liu Qian have been dismissed - The plaintiffs allege that defendants Xiao Guang and Wang Zhining breached the sale and purchase agreement, seeking rescission of the agreement and disputing outstanding convertible bonds with a principal amount of **HKD 15,000 thousand**[53](index=53&type=chunk) - The claim against Ms. Liu Qian was dismissed pursuant to a consent order dated June 21, 2023[55](index=55&type=chunk) [The Company's Subsidiaries as Defendant](index=21&type=section&id=The%20Company%27s%20Subsidiaries%20as%20Defendant) 70% (later reduced to 50%) equity interest in Zhuhai Hesheng was frozen due to legal proceedings involving Kou Jinshui and Zhuhai Hechuan Commercial Trading Co., Ltd., concerning total outstanding amounts of approximately RMB 7,200 thousand, and Sunway Financial Management received two statutory demands for legal service fees of approximately HKD 754 thousand, for which legal advice is being sought - **70%** (later reduced to **50%**) equity interest in Zhuhai Hesheng was frozen due to legal proceedings involving Kou Jinshui and Zhuhai Hechuan Commercial Trading Co., Ltd[56](index=56&type=chunk) - Zhuhai Hesheng owes Kou Jinshui and Zhuhai Hechuan total outstanding amounts (including interest) of approximately **RMB 2,300 thousand** and **RMB 4,900 thousand**, respectively[56](index=56&type=chunk) - Sunway Financial Management received two statutory demands for legal service fees of approximately **HKD 754 thousand**, and legal advice is currently being sought[56](index=56&type=chunk)[57](index=57&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=22&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the six months ended June 30, 2025 - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the six months ended June 30, 2025[58](index=58&type=chunk) [Corporate Governance](index=22&type=section&id=Corporate%20Governance) The Company complies with the Corporate Governance Code in Appendix C1 of the Listing Rules, with a deviation regarding the non-segregation of Chairman and Chief Executive Officer roles, while the Audit Committee has been established and reviewed the interim financial statements, and the Board confirms compliance with the Standard Code for Securities Transactions [Identity of Chairman and Chief Executive Officer and Segregation of Their Roles](index=22&type=section&id=Identity%20of%20Chairman%20and%20Chief%20Executive%20Officer%20and%20Segregation%20of%20Their%20Roles) The Company does not comply with Code Provision C.2.1 of the Corporate Governance Code, as no director has been appointed as Chairman or Chief Executive Officer, with responsibilities undertaken by the Board, and the Company is actively seeking a suitable candidate - The Company failed to comply with Code Provision C.2.1 of the Corporate Governance Code set out in Appendix C1 of the Listing Rules, as no director has been appointed as Chairman or Chief Executive Officer[59](index=59&type=chunk) - The responsibilities of the Chairman or Chief Executive Officer are undertaken by the Company's Board of Directors, and the Company will continue to strive for compliance with the Code as soon as practicable[59](index=59&type=chunk) [Audit Committee](index=23&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors, is responsible for reviewing and overseeing the Group's financial reporting, risk management, and internal controls, and has reviewed the interim financial statements - The Audit Committee has been established, comprising three independent non-executive directors, responsible for reviewing and overseeing the Group's financial reporting, risk management, and internal controls[60](index=60&type=chunk) - The Audit Committee has reviewed the Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025[60](index=60&type=chunk) [Standard Code for Securities Transactions](index=23&type=section&id=Standard%20Code%20for%20Securities%20Transactions) The Company has adopted the Standard Code for Securities Transactions as its code of conduct for directors' securities dealings, and all directors confirm compliance for the period ended June 30, 2025 - The Company has adopted the Standard Code for Securities Transactions set out in Appendix C3 of the Listing Rules, and all Directors confirm compliance with the Code for the six months ended June 30, 2025[61](index=61&type=chunk) [Publication of Unaudited Interim Report](index=23&type=section&id=Publication%20of%20Unaudited%20Interim%20Report) The Company's 2025 unaudited interim report, containing all information required by the Listing Rules, will be published on the Company's website and the Stock Exchange's website in due course - The Company's 2025 unaudited interim report, containing all information required by the Listing Rules, will be published on the Company's website and the Stock Exchange's website in due course[62](index=62&type=chunk)

Group 1 - The board meeting of Neway International (00058.HK) is scheduled for August 29, 2025, to approve and publish the unaudited interim results for the six months ending June 30, 2025, and to consider the distribution of an interim dividend if applicable [1]

（股份代號 ：58） 董事會會議召開日期 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， 對其準確性及完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任 何部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 SUNWAY INTERNATIONAL HOLDINGS LIMITED 新威國際控股 有限公司 （於百慕達註冊成立之有限公司） 新威國際控股有限公司（「本公司」）董事會（「董事會」）宣佈，董事會會議將於 二零二五年八月二十九日星期五舉行，藉以（其中包括）批准及刊發本公司及其附屬 公司截至二零二五年六月三十日止六個月之未經審核中期業績，及考慮派發中期股息 （如適用）。 承董事會命 新威國際控股有限公司 羅進財 執行董事兼公司秘書 香港，二零二五年八月十八日 於本公告日期，董事會包括一名執行董事（即 羅進財先生）、一名非執行董事（即余瑞 生先生）以及三名獨立非執行董事（即蔡本立先生、王裕鈞先生及曾傲嫣女士）。 網址： http://www.hk0058.com * 僅供識別 * ...

FF301 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 新威國際控股有限公司（於百慕達註冊成立之有限公司） 呈交日期: 2025年8月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 00058 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 10,000,000,000 | HKD | | 0.1 HKD | | 1,000,000,000 | | 增加 / 減少 (-) | | | | | | HKD | | | | 本月底結存 | | | 10,000,000,000 | HKD | | 0.1 HKD | | 1,000,000,000 | 本 ...

Core Viewpoint - The company *ST Gongzhi is facing delisting due to consecutive years of financial reports receiving "unable to express an opinion" audit opinions, leading to significant operational and financial risks [5][8]. Financial Performance - The company reported a net profit of -588 million, -784 million, -402 million, and -215 million from 2021 to 2024, indicating continuous losses [18]. - As of the end of 2024, the company's current liabilities exceeded current assets by 339 million, with cash reserves of 93.71 million, of which 52.1 million were restricted funds, highlighting weak solvency [7]. Audit Issues - The 2023 financial report was flagged for two main issues: questionable disposal of equity investments totaling 650 million and improper revenue recognition of 2.153 billion using the "period method" instead of the "point method" [7][8]. - The 2024 audit further deteriorated, with ongoing concerns about the use of idle funds and uncollected performance compensation from equity investments [7]. Delisting Process - The company’s stock will enter a delisting preparation period starting June 20, with the last trading day expected on July 10, during which the stock will trade without price limits on the first day and a 10% limit thereafter [4][15]. Corporate Governance - The actual controller of the company, identified as Eddie, has faced legal issues, including being listed as a dishonest executor due to failure to fulfill a 150 million payment obligation [16][20]. - The company has been under regulatory scrutiny for failing to complete share buyback commitments and for overdue use of raised funds [16]. Historical Context - Established in 1991 and listed in 1995, *ST Gongzhi has undergone multiple name changes and strategic shifts, ultimately leading to its current financial distress and impending delisting [9][10].

Core Viewpoint - *ST Gongzhi has received a notice of termination of listing due to consecutive years of financial reports being issued with "unable to express an opinion" audit results, triggering mandatory delisting rules from the Shenzhen Stock Exchange [2][3][7]. Group 1: Termination of Listing - The company received the termination notice on April 30, 2025, from the Shenzhen Stock Exchange [5]. - The termination is based on the 2024 financial report being issued with an "unable to express an opinion" audit report, along with a negative opinion on internal control [7]. - The company has the right to request a hearing or submit written statements within specified timeframes after receiving the notice [8]. Group 2: Audit Issues - The audit firm, Unitaizhen Qing Accounting Firm, stated it could not obtain sufficient and appropriate audit evidence to form an opinion on the financial statements [10]. - Key issues leading to the audit's inability to express an opinion include incomplete disposal of equity investment platforms and confusion over revenue recognition methods [10]. Group 3: Independent Directors' Concerns - All independent directors voted to abstain from approving the 2024 annual report due to numerous uncertainties and incomplete rectification of issues [11]. - Concerns included frequent personnel changes, incomplete audit materials, and unverified financial data [12]. Group 4: Financial Performance - In Q1 2024, the company reported a 75.21% year-on-year decline in revenue, with net losses expanding to 28.4953 million yuan [14]. - The asset-liability ratio rose to 91%, raising doubts about the company's ability to continue operations [14]. - The company's stock price decline has resulted in a reduction in the number of shareholders, with an average holding value of 47,100 yuan per shareholder [16].

重要新闻 今日两只新股申购。 6部门发布关于进一步优化离境退税政策扩大入境消费的通知。 国新办今日上午10时将举行新闻发布会，介绍稳就业稳经济推动高质量发展政策措施有关情况。 *ST工智（000584）：公司股票可能被终止上市，28日起停牌。 3.国务院新闻办公室将于4月28日(星期一)上午10时举行新闻发布会，请国家发展改革委副主任赵辰昕、人力资源社会保障部副部长俞家栋、商务部副部长 盛秋平、中国人民银行副行长邹澜介绍稳就业稳经济推动高质量发展政策措施有关情况，并答记者问。 4.日前，国家税务总局12366纳税服务平台以热点问题答复形式回应称，"二套转首套"满足相关条件可以享受住房贷款利息个税专项附加扣除，每年可享 受1.2万元税前扣除额。 5.商务部副部长盛秋平表示，商务部将继续深化国际消费中心城市建设，支持推动扩大入境消费。商务部将打造国际化消费环境，指导各地优化涉外支付 服务，提升离境退税政策效能，打造一批国际消费集聚区和入境消费友好商圈，打通外国人在华消费堵点、痛点。近期财政部门正积极研究对有关方面给 予专项资金支持。 6.国务院发布关于同意在海南全岛和秦皇岛等15个城市(地区)设立跨境电子商务综合 ...

Financial Performance - The consolidated loss for the year increased by approximately 25% compared to the same period in 2023, primarily due to the downturn in the property market in China [6]. - The company reported a loss from continuing operations of HKD 80,095,000 for the year ended December 31, 2024, compared to a loss of HKD 64,262,000 in 2023, representing a 24.5% increase in losses year-over-year [57]. - The company reported a significant focus on investment holding, with subsidiaries engaged in manufacturing and trading of prestressed high-strength concrete piles, ready-mixed concrete, autoclaved aerated concrete products, and ecological permeable concrete products [38]. - The company reported a total comprehensive loss of HKD 63,698,000 for the year ended December 31, 2024, compared to a loss of HKD 47,824,000 in the previous year, reflecting an increase in losses of approximately 33% [158]. - The company reported a net loss of HKD 80,095,000 for 2024, compared to a net loss of HKD 64,262,000 in 2023, indicating a deterioration in financial performance [152]. Revenue and Growth - Revenue from external customers in the construction materials business was HKD 256,385,000, representing a growth of about 4% from HKD 246,531,000 in the previous year [10]. - Revenue for the year ended December 31, 2024, was HKD 256,385,000, an increase of 3.4% from HKD 246,531,000 in 2023 [152]. - Gross profit for 2024 was HKD 43,832,000, up from HKD 37,556,000 in 2023, reflecting a gross margin improvement [152]. Assets and Liabilities - Total assets decreased to HKD 281,117,000 in 2024 from HKD 330,938,000 in 2023, reflecting a decline of approximately 15% [58]. - The company's total liabilities increased to HKD 202,375,000 in 2024, up from HKD 195,264,000 in 2023, indicating a rise of about 5.7% [58]. - The net asset value dropped to HKD 78,742,000 in 2024, down from HKD 135,674,000 in 2023, a decrease of approximately 42% [58]. - Current liabilities exceeded current assets by approximately HKD 33,863,000 as of December 31, 2024 [167]. Cash Flow and Financing - The group reported a net cash outflow from operating activities of about HKD 13,062,000 for the year ending December 31, 2024 [165]. - Cash and cash equivalents decreased by HKD 16,687,000 in 2024, compared to an increase of HKD 21,704,000 in 2023, indicating a shift in liquidity position [160]. - The company issued new shares raising HKD 3,592,000 and convertible notes raising HKD 30,000,000 during the year, enhancing its capital structure [160]. - The group plans to implement rigorous cost control measures to enhance operational efficiency and improve future cash flow [169]. Shareholder and Equity Information - As of December 31, 2024, the equity attributable to owners of the company was HKD 62,007,000, a decrease of approximately 33% compared to the previous year [13]. - The company’s total equity attributable to owners decreased to HKD 62,007,000 as of December 31, 2024, down from HKD 91,961,000 at the beginning of the year, indicating a decline in shareholder value [158]. - The board does not recommend a final dividend for the fiscal year [44]. Risk Management and Compliance - The company is exposed to foreign exchange risks due to its assets and liabilities being primarily denominated in Renminbi and Hong Kong dollars, with management actively monitoring these risks [23]. - The company has complied with relevant laws and regulations in its operations in China and Hong Kong, with no significant violations reported [61]. - The company has adopted a zero-tolerance policy towards bribery and corruption, ensuring all business dealings are conducted with integrity and professionalism [112]. Corporate Governance - The board consists of one executive director, one non-executive director, and three independent non-executive directors as of December 31, 2024 [92]. - The audit committee has reviewed the financial statements for the year ending December 31, 2024, confirming compliance with applicable accounting standards and regulations [80]. - All independent non-executive directors have confirmed their independence according to the listing rules, possessing appropriate professional qualifications or financial management expertise [94]. Internal Controls and Audit - The internal control and risk management systems are designed to manage risks rather than eliminate them, ensuring the reliability of financial reporting and compliance with laws [105]. - The audit committee has reviewed the effectiveness of the risk management and internal control systems, concluding they are sufficient and effective [109]. - The company plans to enhance its internal controls and audit procedures to address risks of material misstatement in financial reporting [149]. Future Outlook - The company anticipates that infrastructure investment will continue to be a pillar for economic recovery in China, benefiting its business operations [6]. - The company anticipates positive impacts on the construction materials industry in Guangdong Province, benefiting from local GDP growth and trade volume increases [27]. - The company aims for local GDP growth of around 5% and plans to focus on green energy, commercial aerospace, and other strategic areas [28].

Financial Performance - For the year ended December 31, 2024, the revenue was HKD 256,385,000, an increase of HKD 9,854,000 compared to HKD 246,531,000 in the previous year, representing a growth of approximately 4%[2] - The gross profit for the same period was HKD 43,832,000, up by HKD 6,276,000 from HKD 37,556,000 year-on-year, indicating a growth of about 16.7%[2] - The loss attributable to the owners of the company was HKD 56,122,000, which is an increase of HKD 10,976,000 from HKD 45,146,000 in the previous year, reflecting a rise of approximately 24.3%[2] - The basic and diluted loss per share was HKD 30.71, an increase of HKD 5.57 from HKD 25.14 in the previous year, representing a rise of about 22.1%[2] - The total comprehensive loss for the year was HKD 91,070,000, compared to HKD 67,761,000 in the previous year, indicating an increase of approximately 34.4%[4] - The annual loss for the company in 2024 was HKD 56,122,000, compared to a loss of HKD 45,146,000 in 2023, indicating an increase in losses of approximately 24.4%[32] - Other income and loss for the fiscal year 2024 resulted in a loss of HKD 7,037,000, a decrease of HKD 7,638,000 compared to a profit of HKD 601,000 in the previous year[40] Assets and Liabilities - Non-current assets decreased to HKD 123,389,000 from HKD 134,710,000, a decline of about 8.5%[5] - Current liabilities slightly increased to HKD 191,591,000 from HKD 190,637,000, showing a marginal rise of approximately 0.5%[5] - The company's net assets decreased to HKD 78,742,000 from HKD 135,674,000, a significant drop of about 42%[6] - The company reported a cash and cash equivalents balance of HKD 10,593,000, down from HKD 27,749,000, representing a decrease of approximately 61.8%[5] - The total value of mortgaged assets to secure bank borrowings decreased to HKD 71,963,000 in 2024 from HKD 85,245,000 in 2023, a decline of approximately 15.5%[37] - The group's current liabilities exceeded its current assets by approximately HKD 33,863,000, raising significant doubts about the group's ability to continue as a going concern[65] Revenue Streams - Revenue from ready-mixed concrete increased to HKD 191,135 thousand in 2024 from HKD 145,885 thousand in 2023, reflecting a growth of approximately 31%[24] - The group reported revenue from pre-stressed high-strength concrete piles of HKD 49,028 thousand in 2024, down from HKD 70,147 thousand in 2023, representing a decrease of approximately 30%[24] - Major customers contributing over 10% of revenue include Customer A with HKD 29,178 thousand and Customer B with HKD 26,781 thousand in 2024[22] Cash Flow and Financing - The group has implemented several plans to alleviate cash flow pressure and improve financial conditions, including active measures to recover trade receivables and strict selection of reputable customers to minimize bad debts[14] - The group is closely monitoring its customer base and will consider alternative financing arrangements to support daily operations[14] - The net proceeds from the share subscription and issuance of convertible bonds amounted to approximately HKD 10,300,000, with actual usage of HKD 1,910,000[45] Expenses - Administrative expenses for the fiscal year 2024 were HKD 22,105,000, representing an 8% decrease from HKD 23,977,000 in the previous year[41] - The cost of materials used decreased to HKD 139,144,000 in 2024 from HKD 147,149,000 in 2023, showing a reduction of approximately 5.4%[27] Governance and Compliance - The company is actively seeking suitable candidates for the positions of chairman and chief executive officer to comply with corporate governance codes[60] - The company has adopted the standard code of conduct for securities trading by directors and confirmed compliance throughout the year[66] - The company will publish its annual report containing all required information on its website and the stock exchange's website in due course[67] Legal and Regulatory Matters - The group's subsidiary, Zhuhai Hesheng, had 70% of its equity in Guangdong Hengjia frozen by the Xiangzhou District Court from August 23, 2022, to August 22, 2025, as part of a legal dispute[54] Future Outlook - The board believes the group will have sufficient working capital to meet its financial obligations for the next 12 months, supporting the appropriateness of preparing financial statements on a going concern basis[12] - The company aims to expand its business scale through exploring new business opportunities, which is expected to bring new growth and momentum[56] - The group anticipates that the application of new accounting standards will not have a significant impact on future financial statements[19] Employment and Workforce - As of December 31, 2024, the group employed approximately 258 full-time staff across management, administration, technical, and production departments[48] Risk Factors - The group is exposed to foreign exchange risks primarily due to its assets and liabilities denominated in Renminbi and Hong Kong dollars[49] Dividends - The company does not recommend the distribution of a final dividend for the year ended December 31, 2024, consistent with the previous year[2] - The company did not declare or recommend any final dividends for the year ending December 31, 2024, consistent with 2023[30]

Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 100,511,000, a decrease of 13.1% compared to HKD 115,611,000 for the same period in 2023[1] - Gross profit for the same period was HKD 16,811,000, down from HKD 17,436,000, reflecting a gross margin of 16.7%[1] - The company reported a loss before tax of HKD 24,459,000, compared to a loss of HKD 19,982,000 in the previous year, indicating a worsening financial performance[2] - The total comprehensive loss for the period was HKD 21,359,000, compared to HKD 26,646,000 in the same period last year, showing an improvement in overall losses[3] - The company reported a basic and diluted loss per share of HKD 7.75, compared to HKD 7.56 in the previous year, indicating a slight increase in loss per share[2] - The company experienced a significant increase in other net losses, reporting a loss of HKD 9,263,000 for the six months ended June 30, 2024, compared to HKD 1,365,000 in the same period of 2023, marking an increase of approximately 579%[26] Assets and Liabilities - Non-current assets decreased to HKD 118,233,000 from HKD 134,710,000, indicating a reduction in long-term asset value[4] - Current assets increased to HKD 202,398,000 from HKD 196,228,000, primarily driven by an increase in trade receivables[4] - The company's net asset value decreased to HKD 114,315,000 from HKD 135,674,000, reflecting a decline in equity[5] - Total liabilities as of June 30, 2024, included interest-bearing borrowings of HKD 39,194,000, with an interest rate ranging from 3.45% to 7.50%[32] - The company's cash and cash equivalents significantly decreased to HKD 7,344,000 from HKD 27,749,000, highlighting liquidity challenges[4] Revenue Sources - The group reported a revenue of HKD 100,511 thousand for the sale of prestressed high-strength concrete piles and other products for the six months ended June 30, 2024, a decrease of 13.1% compared to HKD 115,611 thousand in the same period of 2023[11] - Major customers contributing over 10% of total revenue included Customer A with HKD 11,951 thousand and Customer B with HKD 11,421 thousand for the six months ended June 30, 2024[11] - Revenue from external customers for the six months ended June 30, 2024, was HKD 100,511,000, a decrease of approximately 13% compared to HKD 115,611,000 for the same period in 2023[25] Expenses - Selling and distribution expenses decreased by 10% to HKD 20,927,000 for the six months ended June 30, 2024, primarily due to reduced transportation costs[27] - Administrative expenses decreased by 17% to HKD 9,861,000 for the six months ended June 30, 2024, mainly due to lower employee costs[28] Legal and Regulatory Matters - There are ongoing legal proceedings involving claims totaling HKD 262,000,000 against the company[39] - The company’s indirect wholly-owned subsidiary, New Way Financial Management, received a statutory demand for repayment amounting to approximately HKD 958,000 for overdue legal service fees[45] - A second statutory demand was issued to New Way Financial Management for an adjusted amount of approximately HKD 754,000, requiring payment within three weeks[45] - The court has frozen 70% of the equity in Guangdong Hengjia, which was reduced to 50% following a ruling on April 10, 2023[44] - New Way Financial Management has initiated legal proceedings against several borrowers who have failed to repay loans, including Hua Li Capital and Tailor Wealth[46] - The court has issued a winding-up order against Tailor Wealth, with joint liquidators appointed to investigate its assets and liabilities[47] - A winding-up order has also been issued against Mei Rui Group, with joint liquidators appointed[48] - New Way Financial Management has withdrawn claims against Shenzhen Sipin Investment due to insufficient evidence[49] - Fuzhou Xufai Trading has expressed willingness to negotiate repayment terms, offering a sincerity deposit of HKD 1,000,000[50] - Legal actions have been initiated against Mr. Chen for the recovery of unpaid loans, with the court ruling confirming his responsibility to repay the principal, accrued interest, and related legal fees[51] - Mr. Chen's bank accounts and assets have been frozen for one to three years to enforce the court's ruling[52] - Fuzhou Dongye Trading Co., Ltd. has been deregistered as of January 2024, impacting the recovery of loans transferred to Tianlang Group[53] Corporate Governance - The company has established an audit committee to oversee financial reporting, risk management, and internal controls[57] - All directors confirmed compliance with the standard code of conduct for securities trading during the six months ending June 30, 2024[58] - The company is in the process of identifying suitable candidates for the roles of chairman and CEO to comply with governance codes[56] Future Outlook - The anticipated GDP growth rate for China in the second half of 2024 is approximately 5%[41] - The company expects to benefit from supportive policies in the construction materials industry due to government measures aimed at stabilizing the property market[41] Miscellaneous - The company did not declare or recommend any interim dividend for the six months ended June 30, 2024, nor for the same period in 2023[19] - The company did not adopt any new or revised Hong Kong Financial Reporting Standards that have been issued but are not yet effective during the accounting period[9] - The company has no significant capital commitments as of June 30, 2024[38] - The company has not granted, exercised, canceled, or expired any share options during the fiscal years 2023 and 2024[34] - The company has no significant employee stock options or changes in director information to report as of June 30, 2024[42] - The company has not engaged in any significant litigation or arbitration as of the announcement date[53] - No purchases, sales, or redemptions of the company's listed securities occurred in the six months ending June 30, 2024[54] - The unaudited interim report for 2024 will be published on the company's website and the stock exchange's website at an appropriate time[59]