[Condensed Consolidated Financial Statements](index=1&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the group's financial performance and position for the period, highlighting key changes in income, expenses, assets, and liabilities [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, Shun Long Holdings Limited experienced a significant revenue decline and a shift from profit to loss, with a notable increase in loss per share, reflecting a deteriorating operating environment Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Summary (HK$ thousand) | Indicator | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Revenue | 88,956 | 129,126 | | Cost of sales | (67,395) | (99,876) | | Gross profit | 21,561 | 29,250 | | Other operating income | 1,340 | 2,970 | | Selling and distribution expenses | (26) | (95) | | Administrative expenses | (31,825) | (27,857) | | Finance costs | (5,116) | (3,847) | | (Loss) Profit before tax | (14,066) | 421 | | Income tax expense | (544) | (1,180) | | Loss for the period | (14,610) | (759) | | Loss per share (HK cents) | (0.28) | (0.01) | - Revenue for the period decreased by **31.1%** year-on-year, from HK$129,126 thousand to **HK$88,956 thousand**[3](index=3&type=chunk) - The company shifted from a profit before tax of HK$421 thousand in the prior year to a **loss before tax of HK$14,066 thousand** in the current period[3](index=3&type=chunk) - Loss for the period attributable to owners of the Company significantly increased from HK$759 thousand to **HK$14,610 thousand**, with basic and diluted loss per share rising from HK$0.01 cents to **HK$0.28 cents**[4](index=4&type=chunk) [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets and net assets decreased, with a reduction in net current assets and cash balances, while liquidity ratios remained reasonable Condensed Consolidated Statement of Financial Position Summary (HK$ thousand) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Non-current assets | 223,300 | 228,647 | | Current assets | 156,162 | 171,325 | | Current liabilities | 99,955 | 108,501 | | Net current assets | 56,207 | 62,824 | | Total assets less current liabilities | 279,507 | 291,471 | | Non-current liabilities | 66,505 | 63,859 | | Net assets | 213,002 | 227,612 | | Bank balances and cash | 109,525 | 116,008 | | Trade and other payables | 70,622 | 50,984 | - Total assets decreased from **HK$399,972 thousand** as of December 31, 2024, to **HK$379,462 thousand** as of June 30, 2025[12](index=12&type=chunk) - Net assets decreased from HK$227,612 thousand to **HK$213,002 thousand**[6](index=6&type=chunk) - Net current assets decreased from HK$62,824 thousand to **HK$56,207 thousand**, and bank balances and cash decreased from HK$116,008 thousand to **HK$109,525 thousand**[5](index=5&type=chunk) [Notes to the Financial Statements](index=5&type=section&id=Notes%20to%20the%20Financial%20Statements) This section details the accounting policies and specific financial information supporting the condensed consolidated financial statements [Basis of Preparation](index=5&type=section&id=Basis%20of%20Preparation) The condensed consolidated financial information is prepared in accordance with Appendix 16 of the HKEX Listing Rules and HKAS 34 "Interim Financial Reporting" - The financial information complies with the requirements of Appendix 16 of the Hong Kong Listing Rules and HKAS 34 "Interim Financial Reporting"[7](index=7&type=chunk) [Principal Accounting Policies](index=5&type=section&id=Principal%20Accounting%20Policies) The condensed consolidated financial information is primarily prepared on a historical cost basis, with new HKFRS amendments applied, though without significant impact on current financial performance - Financial information is prepared on a historical cost basis, except for leasehold land and buildings which are measured at revalued amounts[8](index=8&type=chunk) - The first-time application of HKAS 21 (Amendment) "Lack of Exchangeability" had no significant impact on the financial performance and position for the current period[8](index=8&type=chunk) [Revenue](index=6&type=section&id=Revenue) The Group's revenue primarily represents income generated from the sale of goods during the period - Revenue is defined as income generated from the sale of goods[9](index=9&type=chunk) [Segment Information](index=6&type=section&id=Segment%20Information) The Group operates three reportable segments: golf equipment, golf bags, and hotel, with golf equipment revenue significantly declining and the hotel business still generating no revenue - The Group has three reportable operating segments: golf equipment, golf bags, and hotel[10](index=10&type=chunk) [Segment Revenue and Results](index=6&type=section&id=Segment%20Revenue%20and%20Results) Both golf equipment segment revenue and results significantly decreased, golf bag segment revenue slightly increased but recorded a loss, and the hotel segment generated no revenue Segment Revenue and Results Summary (HK$ thousand) | Segment | 2025 Revenue | 2024 Revenue | 2025 Results | 2024 Results | | :--- | :--- | :--- | :--- | :--- | | Golf equipment | 79,318 | 119,673 | 763 | 11,536 | | Golf bags | 9,638 | 9,453 | (1,000) | (631) | | Hotel | – | – | (2,833) | (2,863) | | Consolidated Revenue | 88,956 | 129,126 | | | | (Loss) Profit before tax | | | (14,066) | 421 | - Golf equipment segment revenue decreased by **33.7%** year-on-year to **HK$79,318 thousand**, and segment profit significantly dropped from HK$11,536 thousand to **HK$763 thousand**[11](index=11&type=chunk) - Golf bag segment revenue slightly increased by **2.0%** to **HK$9,638 thousand**, but segment loss expanded from HK$631 thousand to **HK$1,000 thousand**[11](index=11&type=chunk) - The hotel segment generated no revenue in both reporting periods and continued to record losses[11](index=11&type=chunk) [Segment Assets and Liabilities](index=7&type=section&id=Segment%20Assets%20and%20Liabilities) Segment assets and liabilities varied, with golf equipment segment assets and liabilities decreasing, and a new amount payable to former directors added to unallocated corporate liabilities Segment Assets and Liabilities Summary (HK$ thousand) | Segment | June 30, 2025 Assets | December 31, 2024 Assets | June 30, 2025 Liabilities | December 31, 2024 Liabilities | | :--- | :--- | :--- | :--- | :--- | | Golf equipment | 111,105 | 120,789 | 30,731 | 40,068 | | Golf bags | 2,114 | 3,155 | 1,032 | 1,161 | | Hotel | 152,631 | 155,417 | 7,515 | 7,515 | | Total Consolidated Assets | 379,462 | 399,972 | | | | Total Consolidated Liabilities | | | 166,460 | 172,360 | - Golf equipment segment assets decreased from HK$120,789 thousand to **HK$111,105 thousand**, and liabilities decreased from HK$40,068 thousand to **HK$30,731 thousand**[12](index=12&type=chunk) - A new amount of **HK$30,580 thousand** payable to former directors was added to unallocated corporate liabilities[12](index=12&type=chunk) [Other Operating Income](index=8&type=section&id=Other%20Operating%20Income) Other operating income for the period significantly decreased year-on-year, primarily due to the absence of net exchange gains and a decline in interest income Other Operating Income Summary (HK$ thousand) | Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Interest income | 851 | 1,175 | | Net exchange gain | – | 1,139 | | Total | 1,340 | 2,970 | - Other operating income decreased from HK$2,970 thousand to **HK$1,340 thousand**, mainly due to the absence of a net exchange gain of HK$1,139 thousand recorded in the prior year period[13](index=13&type=chunk) [Finance Costs](index=8&type=section&id=Finance%20Costs) Finance costs for the period increased year-on-year, mainly driven by a significant rise in interest expenses on amounts payable to former directors Finance Costs Summary (HK$ thousand) | Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Interest on amounts payable to former directors | 1,448 | 255 | | Interest on convertible bonds | 2,706 | 2,494 | | Interest on bank borrowings | 950 | 1,083 | | Total | 5,116 | 3,847 | - Finance costs increased by **33%** from HK$3,847 thousand to **HK$5,116 thousand**[14](index=14&type=chunk) - Interest expense on amounts payable to former directors significantly increased from HK$255 thousand to **HK$1,448 thousand**[14](index=14&type=chunk) [Income Tax Expense](index=9&type=section&id=Income%20Tax%20Expense) Income tax expense for the period primarily arose from PRC corporate income tax, with no provision for Hong Kong profits tax due to no assessable profits, and no tax provision for the Commonwealth of Northern Mariana Islands Income Tax Expense Summary (HK$ thousand) | Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Hong Kong profits tax | – | 150 | | PRC corporate income tax | 544 | 1,017 | | Total | 544 | 1,180 | - No provision for Hong Kong profits tax was made for the current period due to no assessable profits or offset by tax losses[17](index=17&type=chunk) - The corporate income tax rate for PRC subsidiaries is **25%**[17](index=17&type=chunk) - No corporate income tax provision was made for the Commonwealth of Northern Mariana Islands due to no income[17](index=17&type=chunk) [Loss Before Tax](index=9&type=section&id=Loss%20Before%20Tax) The loss before tax for the period was primarily influenced by inventory recognized as expenses, depreciation charges, and net exchange losses Loss Before Tax Adjustment Items Summary (HK$ thousand) | Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Amount of inventories recognized as expense | 67,395 | 99,876 | | Depreciation of property, plant and equipment | 2,627 | 1,737 | | Depreciation of right-of-use assets | 2,966 | 3,031 | | Net exchange loss (gain) | 490 | (1,139) | - A net exchange loss of **HK$490 thousand** was recorded in the current period, compared to a net exchange gain of HK$1,139 thousand in the prior year period[16](index=16&type=chunk) [Dividends](index=10&type=section&id=Dividends) The Board of Directors decided not to declare any dividends for the current period - No dividends were paid, declared, or proposed during the period[18](index=18&type=chunk) [Loss Per Share](index=10&type=section&id=Loss%20Per%20Share) Basic and diluted loss per share for the period was HK$0.28 cents, a significant increase from HK$0.01 cents in the prior year, reflecting an expanded loss Loss Per Share Calculation Summary | Indicator | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Loss for the period attributable to owners of the Company (HK$ thousand) | (14,610) | (759) | | Number of ordinary shares (thousand shares) | 5,201,250 | 5,201,250 | | Basic and diluted loss per share (HK cents) | (0.28) | (0.01) | - Unexercised convertible bonds were not assumed to be converted when calculating diluted loss per share, as they would reduce the loss per share[21](index=21&type=chunk) [Trade and Other Receivables](index=11&type=section&id=Trade%20and%20Other%20Receivables) The Group's total trade and other receivables decreased, with credit terms typically 30 to 60 days and overdue balances regularly reviewed Trade and Other Receivables Summary (HK$ thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade receivables | 29,182 | 30,731 | | Deposits and other receivables | 2,714 | 2,971 | | Prepayments | 2,427 | 2,768 | | Prepayments to suppliers | 76 | 111 | | Total | 34,399 | 36,581 | Ageing Analysis of Trade Receivables (HK$ thousand) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | 0 to 30 days | 20,662 | 24,876 | | 31 to 90 days | 8,520 | 5,586 | | 91 to 180 days | – | 269 | | Total | 29,182 | 30,731 | - Total trade receivables decreased from HK$30,731 thousand to **HK$29,182 thousand**[22](index=22&type=chunk) [Trade and Other Payables](index=11&type=section&id=Trade%20and%20Other%20Payables) The Group's total trade and other payables significantly increased, mainly due to the addition of amounts payable to former directors, with credit terms generally ranging from 30 to 90 days Trade and Other Payables Summary (HK$ thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade payables | 16,223 | 23,991 | | Contract liabilities | 597 | 553 | | Accruals and other payables | 23,222 | 26,440 | | Amounts payable to former directors | 30,580 | – | | Total | 70,622 | 50,984 | Ageing Analysis of Trade Payables (HK$ thousand) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | 0 to 90 days | 13,681 | 20,453 | | 91 to 180 days | 651 | 1,723 | | 181 to 365 days | 144 | 103 | | Over 365 days | 1,747 | 1,712 | | Total | 16,223 | 23,991 | - Total trade and other payables increased from HK$50,984 thousand to **HK$70,622 thousand**, primarily due to the addition of **HK$30,580 thousand** in amounts payable to former directors[22](index=22&type=chunk) [Share Capital](index=12&type=section&id=Share%20Capital) The company's authorized and issued share capital remained unchanged during the reporting period Share Capital Summary | Item | Number of Shares (thousand shares) | Share Capital (HK$ thousand) | | :--- | :--- | :--- | | Authorized share capital (par value HK$0.01 per share) | 10,000,000 | | | Issued and fully paid share capital (par value HK$0.01 per share) | 5,201,250 | 52,013 | - Authorized and issued share capital remained unchanged during the reporting period[24](index=24&type=chunk) [Events After the Reporting Period](index=12&type=section&id=Events%20After%20the%20Reporting%20Period) As of the date of the interim results announcement, the Group had no significant events after the reporting period - No significant events occurred from June 30, 2025, up to the date of the interim results announcement[25](index=25&type=chunk) [Management Discussion and Analysis](index=13&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the Group's financial performance, business operations, and future outlook, including strategies to address market challenges [Financial Results and Business Review](index=13&type=section&id=Financial%20Results%20and%20Business%20Review) Affected by high US tariffs, the Group's sales significantly declined in the first half of 2025, leading to substantial losses, with measures taken to streamline operations and optimize costs - High US tariffs on Chinese export products (initially **145%**, later temporarily reduced to **30%**) adversely impacted the Group's business[26](index=26&type=chunk) - Major customers shifted orders or suspended shipments, leading to a significant decline in sales and a substantial loss for the period[26](index=26&type=chunk) - The Group's revenue was approximately **HK$88,956 thousand** (a **31.1%** year-on-year decrease), and loss for the period attributable to owners of the Company increased to approximately **HK$14,610 thousand**[27](index=27&type=chunk) [Golf Equipment Business](index=13&type=section&id=Golf%20Equipment%20Business) As the primary revenue source, the golf equipment business experienced significant declines in both revenue and segment profit due to high US tariffs, with the Group implementing cost optimization and supply chain expansion, maintaining a cautious outlook for the second half - Golf equipment business revenue plummeted by approximately **33.7%** to **HK$79,318 thousand**, accounting for approximately **89.2%** of the Group's revenue[28](index=28&type=chunk) - Sales to the largest segment customer fell by approximately **26.9%**, and revenue from the top five segment customers decreased by approximately **33.9%**[29](index=29&type=chunk) - Segment profit significantly dropped to approximately **HK$763 thousand** (from HK$11,536 thousand in the prior year period)[30](index=30&type=chunk) - The Group is implementing rationalization measures at its Shandong production facility to enhance production efficiency, reduce manufacturing costs, and expand its supply chain[30](index=30&type=chunk) [Golf Bag Business](index=14&type=section&id=Golf%20Bag%20Business) The golf bag segment transitioned to a trading business model, showing slight revenue growth but still incurring losses, facing intense competition and market pressure, with a cautious outlook for the second half - The golf bag segment has transitioned to a trading business model, with production outsourced to external factories[31](index=31&type=chunk) - Segment revenue slightly increased by approximately **2.0%** to **HK$9,638 thousand**, accounting for approximately **10.8%** of the Group's revenue[31](index=31&type=chunk) - Sales to the largest segment customer surged by approximately **81.9%**, but some customers shifted to non-Chinese suppliers[32](index=32&type=chunk) - The segment recorded a loss of approximately **HK$1,000 thousand** (compared to HK$631 thousand in the prior year period)[33](index=33&type=chunk) [Hotel Business](index=15&type=section&id=Hotel%20Business) The hotel development plan in the Commonwealth of Northern Mariana Islands was delayed due to local construction worker shortages and uncertain visa quotas, generating no revenue in the current period - The hotel development plan was delayed due to a shortage of local construction workers and uncertainty regarding overseas work visa quotas[34](index=34&type=chunk) - The hotel business generated no revenue during the current period[35](index=35&type=chunk) [Outlook](index=16&type=section&id=Outlook) Facing high US tariff challenges, the Group is actively seeking to establish manufacturing bases outside China to retain customer business, continuing to streamline operations and optimize costs, while maintaining a cautious outlook for golf businesses and monitoring hotel development - High US tariff policies adversely impact business, requiring the Group to promptly establish or acquire manufacturing bases outside China[36](index=36&type=chunk) - The Group is actively seeking opportunities to acquire golf equipment factories outside China[36](index=36&type=chunk) - The Group has implemented stringent measures to rationalize operations and optimize costs, and is committed to strengthening diversified marketing initiatives through value-added services[36](index=36&type=chunk) - Management maintains a cautious outlook for the golf business in the foreseeable future, and while the hotel development plan is currently delayed, it will continue to be monitored[36](index=36&type=chunk) [Dividends](index=16&type=section&id=Dividends) The Board of Directors does not recommend the payment of any dividends for the current period - The Board of Directors does not recommend the payment of any dividends for the six months ended June 30, 2025[38](index=38&type=chunk) [Financial Resources, Liquidity and Gearing Ratio](index=17&type=section&id=Financial%20Resources%2C%20Liquidity%20and%20Gearing%20Ratio) The Group's cash and bank balances decreased, interest-bearing borrowings declined, but amounts payable to former directors increased, leading to a higher gearing ratio, while liquidity ratios remained reasonable and robust Financial Resources and Liquidity Indicators Summary (HK$ thousand) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Bank balances and cash | 109,525 | 116,008 | | Bank borrowings | 28,723 | 56,383 | | Amounts payable to former directors | 30,580 | – | | Gearing ratio | 7.4% | 1.6% | | Current ratio | 1.56 | 1.58 | | Quick ratio | 1.44 | 1.41 | - Bank balances and cash decreased from HK$116,008 thousand to **HK$109,525 thousand**[39](index=39&type=chunk) - Bank borrowings decreased from HK$56,383 thousand to **HK$28,723 thousand**, but new amounts payable to former directors of **HK$30,580 thousand** were added[39](index=39&type=chunk) - The gearing ratio increased from **1.6%** to **7.4%**[40](index=40&type=chunk) [Significant Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=17&type=section&id=Significant%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20Associates%20and%20Joint%20Ventures) During the period, the Group did not undertake any significant acquisitions or disposals of subsidiaries, associates, or joint ventures - For the six months ended June 30, 2025, the Group had no significant acquisitions or disposals of subsidiaries, associates, or joint ventures[41](index=41&type=chunk) [Pledge of Assets](index=17&type=section&id=Pledge%20of%20Assets) The Group's bank borrowings are secured by property, plant and equipment, and right-of-use assets - Bank borrowings of approximately **HK$28,723 thousand** are secured by property, plant and equipment and right-of-use assets with a carrying value of approximately **HK$62,250 thousand**[42](index=42&type=chunk) [Foreign Exchange Risk](index=18&type=section&id=Foreign%20Exchange%20Risk) The Group primarily faces exchange rate fluctuation risks between RMB, HKD, and USD, but did not enter into any derivative contracts for hedging during the period - The Group primarily faces exchange rate fluctuation risks between Renminbi, Hong Kong Dollars, and US Dollars[43](index=43&type=chunk) - No derivative contracts were entered into during the period to hedge foreign exchange risk[43](index=43&type=chunk) [Contingent Liabilities](index=18&type=section&id=Contingent%20Liabilities) As of the end of the reporting period, the Group had no significant contingent liabilities - The Group had no significant contingent liabilities as of June 30, 2025[44](index=44&type=chunk) [Events After the Reporting Period](index=18&type=section&id=Events%20After%20the%20Reporting%20Period) As of the date of the interim results announcement, the Group had no significant events after the reporting period - No significant events occurred from June 30, 2025, up to the date of the interim results announcement[45](index=45&type=chunk) [Capital Commitments](index=18&type=section&id=Capital%20Commitments) As of the end of the reporting period, the Group had contracted but unprovided capital commitments for plant and equipment - As of June 30, 2025, the Group had contracted but unprovided capital commitments for plant and equipment of approximately **HK$72 thousand**[46](index=46&type=chunk) [Employees and Remuneration Policy](index=18&type=section&id=Employees%20and%20Remuneration%20Policy) The Group's employee count decreased, and it maintains a competitive remuneration package and performance-based incentive policy - As of June 30, 2025, the Group employed approximately **530 employees** (compared to 680 employees in the prior year period)[47](index=47&type=chunk) - Remuneration is determined based on duties, experience, performance, and market practices, with discretionary bonuses distributed[47](index=47&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=18&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) During the period, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[48](index=48&type=chunk) [Corporate Governance](index=19&type=section&id=Corporate%20Governance) This section outlines the Company's adherence to corporate governance principles and practices, including board structure and oversight [Corporate Governance Code](index=19&type=section&id=Corporate%20Governance%20Code) The Company complies with the Corporate Governance Code, though the roles of Chairman and Chief Executive are combined, which the Board believes provides strong leadership - The Company complies with all applicable code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules[49](index=49&type=chunk) - The roles of Chairman and Chief Executive are combined and held by Mr. Wong Hin Shing, deviating from code provision C.2.1[49](index=49&type=chunk) - The Board believes this arrangement provides strong and consistent leadership for the Company, enabling effective and efficient planning and implementation[49](index=49&type=chunk) [Standard Code for Securities Transactions by Directors](index=19&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) All directors confirmed compliance with the Standard Code for Securities Transactions by Directors of Listed Issuers throughout the period - The Company has adopted the Standard Code set out in Appendix C3 of the Listing Rules[50](index=50&type=chunk) - All directors confirmed compliance with the Standard Code for the six months ended June 30, 2025[50](index=50&type=chunk) [Audit Committee](index=19&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors, reviewed the Group's accounting policies, internal controls, and interim financial information - The Audit Committee comprises three independent non-executive directors[51](index=51&type=chunk) - The Audit Committee has reviewed the accounting policies and practices adopted by the Group and discussed auditing, internal controls, and financial reporting matters, including the condensed consolidated financial information for the period[51](index=51&type=chunk) [Other Information](index=19&type=section&id=Other%20Information) This section includes details on the publication of interim results, acknowledgements, and the current composition of the Board of Directors [Publication of Interim Results Announcement and Interim Report](index=19&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) This results announcement has been published on the HKEX and the Company's website, with the interim report to be provided to shareholders in due course - This results announcement is published on the website of The Stock Exchange of Hong Kong Limited and the Company's website[52](index=52&type=chunk) - The interim report will be made available to shareholders and dispatched to shareholders in due course, and will also be published on the HKEX website and the Company's website[52](index=52&type=chunk) [Acknowledgement](index=20&type=section&id=Acknowledgement) The Chairman of the Board extends gratitude to all employees, shareholders, customers, suppliers, and business partners on behalf of the Board - Mr. Wong Hin Shing, the Chairman of the Board, on behalf of the Board, extends gratitude to all employees, shareholders, customers, suppliers, and business partners of the Group[53](index=53&type=chunk) [Board Composition](index=20&type=section&id=Board%20Composition) As of the announcement date, the Board of Directors comprises one executive director, one non-executive director, and three independent non-executive directors - As of the date of this announcement, the Board comprises Mr. Wong Hin Shing (Executive Director), Mr. Choi Sum Shing (Non-executive Director), and Mr. Sheng Baojun, Mr. Ho Kwong Yu, and Ms. Lin Lin (Independent Non-executive Directors)[53](index=53&type=chunk)

Group 1 - The company, Shunlong Holdings (00361.HK), has scheduled a board meeting on August 27, 2025, to consider and approve the publication of its interim results for the six months ending June 30, 2025, and to discuss the potential declaration of an interim dividend, if any [1] - Shunlong Holdings has issued a profit warning, expecting an interim loss of HKD 14.6 million [2]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示概不就因本公佈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。 主席 SINO GOLF HOLDINGS LIMITED 順龍控股有限公司* （於百慕達註冊成立之有限公司） （股份代號：00361） 香港，二零二五年八月十二日 董事會會議通知 於本公佈日期，董事會由(i)執行董事王顯碩先生；(ii)非執行董事蔡琛誠先生；及(iii)獨立 非執行董事盛寶軍先生、何光宇先生及林琳女士組成。 順龍控股有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此宣佈，本公司謹訂於二零 二五年八月二十七日（星期三）舉行董事會會議，其中包括考慮及批准刊發本公司及其附 屬公司截至二零二五年六月三十日止六個月之中期業績及考慮派付中期股息（如有）。 * 僅供識別 承董事會命 順龍控股有限公司 王顯碩 ...

Core Viewpoint - Shunlong Holdings (00361) anticipates a loss of approximately HKD 14.6 million for the six months ending June 30, 2025, representing an increase in loss of about 1825% compared to the loss for the six months ending June 30, 2024 [1] Group 1: Financial Performance - The company is facing a significant increase in losses due to adverse market conditions in the golf ball sector [1] - The anticipated loss of HKD 14.6 million marks a substantial deterioration in financial performance compared to the previous year [1] Group 2: Impact of Tariffs - The U.S. significantly raised tariffs on imported goods at the beginning of 2025, creating a more turbulent market environment for the company [1] - High tariffs imposed by the U.S. on exports from China have negatively impacted the company's business, particularly as it primarily trades with U.S. clients [1] - Major clients have begun to shift orders or suspend shipments to avoid immediate payment of substantial tariffs [1] Group 3: Temporary Relief Measures - In April 2025, the U.S. temporarily reduced the tariff rate on Chinese goods from as high as 145% to 30%, providing a 90-day period for trade negotiations [1] - This reduction allowed the company to resume deliveries of previously suspended shipments based on client instructions, although sales still experienced a significant decline due to the tariffs [1]

Core Viewpoint - Shunlong Holdings (00361) anticipates a loss of approximately HKD 14.6 million for the six months ending June 30, 2025, representing an increase in loss of about 1825% compared to the loss for the same period ending June 30, 2024 [1] Group 1: Financial Performance - The company is facing a significant increase in losses due to adverse market conditions in the golf ball sector [1] - The anticipated loss of HKD 14.6 million marks a substantial deterioration in financial performance compared to the previous year [1] Group 2: Impact of Tariffs - The U.S. has significantly raised tariffs on imported goods at the beginning of 2025, adversely affecting the company's operations [1] - The high tariffs imposed on exports from China have led to major clients shifting orders or pausing shipments to avoid immediate payment of substantial tariffs [1] - In April 2025, the U.S. temporarily reduced the tariff rate on Chinese goods from as high as 145% to 30%, providing a 90-day period for trade negotiations, which slightly alleviated the situation [1] Group 3: Sales Impact - Despite the temporary tariff reduction, the company's sales have still experienced a significant decline due to the ongoing tariff impacts [1] - The company was able to resume some previously suspended shipments based on client instructions, but the overall sales performance remains severely affected [1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示概不就因本公佈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。 （於百慕達註冊成立之有限公司） （股份代號：00361） 盈利警告 SINO GOLF HOLDINGS LIMITED 順龍控股有限公司* 由於本公司仍在編製及落實本期間之未經審核綜合業績，本公佈所載資料僅為董事會經 參考目前所得的資料所作出的初步評估，而該等資料未經本公司獨立核數師審閱或審 計。本集團於本期間之實際業績或會有別於本公佈載列的資料。有關本集團於本期間之 財務資料的進一步詳情將根據上市規則的規定刊發，預期將於二零二五年八月底前發 佈。 本公佈載列的盈利警告（「盈利警告」）構成收購守則規則10項下的盈利預測，故應由本公 司的財務顧問及核數師或會計師根據收購守則規則10.4作出報告。鑒於根據上市規則第 13.09(2)(a)條及證券及期貨條例第XIVA部項下有關及時披露內幕消息的規定，本公司須 於切實可行的情況下盡快刊發本公佈，而由於時間有限，本公司於遵守收購守則規則10.4 所載的呈報規定時 ...

SINO GOLF HOLDINGS LIMITED 順龍控股有限公司* 香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示概不就因本公佈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。 茲提述本公司日期為二零二四年一月二十二日、二零二四年二月二日、二零二四年三月 一日、二零二四年三月二十八日、二零二四年四月二十六日、二零二四年五月二十四 日、二零二四年六月二十五日、二零二四年七月二十五日、二零二四年八月二十七日、 二零二四年九月三十日、二零二四年十月三十日、二零二四年十二月二日、二零二五年 一月二日、二零二五年二月三日、二零二五年三月三日、二零二五年四月三日、二零二 五年五月六日、二零二五年六月六日及二零二五年七月七日之公佈，內容有關（其中包 括）委任接管人及可能交易（「該等公佈」）。除文義另有所指外，本公佈所用詞彙與該等公 佈所界定者具相同涵義。 本公司謹此向其股東及潛在投資者提供最新消息，經查詢後，接管人知會本公司，自二 零二五年四月起，接管人一直與選定的潛在買家就確實交易文件的條款進行持續討論。 儘管現時尚未 ...

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: 順龍控股有限公司 呈交日期: 2025年8月4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) | 00361 | 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 | | 0.01 | HKD | | 100,000,000 | | 增加 / 減少 (-) | | | 0 | | | HKD | | | | 本月底結存 | | 10,000,000,000 | HKD | | 0.01 | HKD | | 100,000,000 | ...

Financial Performance - The company's revenue for the year ended December 31, 2024, was approximately HKD 262,770,000, an increase from HKD 216,555,000 in 2023, representing a growth of about 21.4%[16] - The loss attributable to shareholders significantly decreased to approximately HKD 2,364,000 in 2024, compared to HKD 18,537,000 in 2023[19] - Basic and diluted loss per share for the year was approximately HKD 0.05, down from HKD 0.36 in the previous year[19] - The golf equipment revenue showed a notable increase due to the recovery of the golf industry after inventory adjustments by major brands[16] - The hotel segment did not generate revenue due to external restrictions in the Northern Mariana Islands, impacting overall business performance[19] - The company aims to enhance its financial performance in the golf business and identify additional development opportunities[16] - The golf equipment business accounted for approximately 91.6% of the group's revenue for the year ending December 31, 2024, up from 89.8% in 2023[20] - Golf equipment sales increased by approximately 23.8% to about HKD 240,569,000 in 2024, compared to HKD 194,369,000 in 2023[20] - Sales to the largest segment customer grew over 133.7% to approximately HKD 203,610,000, representing about 84.6% of segment revenue[20] - The golf bag segment's revenue slightly increased to approximately HKD 22,201,000, accounting for about 8.4% of the group's total revenue[24] - The golf bag segment recorded a profit increase of approximately 13.1% to about HKD 1,206,000 for the year ending December 31, 2024[26] Operational Strategies - The company has implemented diversified marketing strategies to strengthen customer relationships and explore new business opportunities[19] - The company is focused on rationalizing operations and optimizing costs to adapt to the ongoing economic uncertainties[19] - The group is considering investments in other countries to establish production facilities to mitigate the impact of customers shifting orders away from China[29] - The group has implemented strict measures to rationalize operations and optimize costs amid ongoing economic uncertainty[29] Financial Position - As of December 31, 2024, the bank balance and cash amounted to approximately HKD 116,008,000, an increase from HKD 111,965,000 in 2023[32] - The debt ratio decreased to approximately 1.6% as of December 31, 2024, down from 2.0% in 2023[33] - Total assets and net asset value as of December 31, 2024, were approximately HKD 399,972,000 and HKD 227,612,000, respectively, compared to HKD 388,333,000 and HKD 230,272,000 in 2023[33] - The current and quick ratios improved to approximately 1.58 and 1.41, respectively, as of December 31, 2024, compared to 1.51 and 1.33 in 2023[33] Corporate Governance - The company has complied with all applicable corporate governance code provisions, except for a deviation from C.2.1[100] - The board of directors consisted of five members during the year, including one executive director and three independent non-executive directors[101] - The board is responsible for leading and monitoring the group's business operations to maximize shareholder value[113] - The company has established a board independence assessment mechanism to enhance decision-making effectiveness[109] - The company has adopted a board diversity policy to improve governance and efficiency[116] Environmental, Social, and Governance (ESG) Initiatives - The environmental, social, and governance (ESG) report outlines the company's commitment and strategies towards corporate social responsibility and sustainable development for the year ending December 31, 2024[161] - The ESG report focuses on sustainable measures and performance in the golf equipment and bags business, which is the only revenue-generating segment of the group[162] - The company aims to continuously reduce air and water pollutant emissions, with a target for chemical oxygen demand (COD) emissions at 56 mg/L in 2024, down from 70 mg/L in 2023, against a standard of 500 mg/L[178] - The company has established internal management mechanisms for wastewater and air emissions to ensure compliance with applicable laws and standards[182] - The company has invested in electric vehicles to reduce fuel consumption and associated emissions, contributing to lower environmental impact[181] Risk Management - The company aims to manage risks rather than eliminate them, using risk management as a tool for daily operations[138] - The company has established policies and procedures to enhance the efficiency of risk management and internal control systems, ensuring compliance with relevant codes[141] - An independent annual review of the risk management and internal control systems will be conducted by a professional firm until December 31, 2024, to ensure proper identification and management of significant risks[141] Employee and Stakeholder Engagement - The company has a strong focus on maintaining a healthy and safe work environment for employees, along with competitive compensation and training opportunities[59] - The company emphasizes effective communication with stakeholders, including shareholders, government departments, suppliers, customers, and employees[60] - The company is committed to improving gender diversity at all levels, including the board and senior management[117] Audit and Compliance - The audit committee, composed of three independent non-executive directors, has reviewed the consolidated financial statements for the year ending December 31, 2024[127] - The audit committee has confirmed that the audited consolidated financial statements are prepared in accordance with applicable accounting standards and fairly present the financial position and performance of the group[127] - The total remuneration paid to auditors for the year ending December 31, 2024, amounted to HKD 1,370,000, with HKD 1,300,000 for audit services and HKD 70,000 for non-audit services[158]

Revenue and Profitability - Revenue for the year ended December 31, 2024, increased to HKD 262,770,000, up 21.4% from HKD 216,555,000 in 2023[4] - Gross profit rose to HKD 68,594,000, representing a 42.3% increase compared to HKD 48,180,000 in the previous year[4] - The company reported a net loss of HKD 2,364,000 for 2024, significantly improved from a loss of HKD 18,537,000 in 2023[4] - Basic and diluted loss per share improved to HKD 0.05 from HKD 0.36 in the previous year[5] - Revenue from golf equipment and related components increased to HKD 240,569,000 in 2024 from HKD 194,369,000 in 2023, representing a growth of 23.8%[25] - The golf equipment division's profit increased over 100% to approximately HKD 25,363,000 in 2024, compared to HKD 11,288,000 in 2023[39] - Major customer A contributed HKD 216,714,000 in revenue from golf equipment and bags in 2024, significantly up from HKD 95,983,000 in 2023[24] Assets and Liabilities - Total assets decreased slightly to HKD 291,471,000 from HKD 289,135,000 year-over-year[6] - Current assets increased to HKD 171,325,000, up from HKD 149,678,000 in 2023, indicating improved liquidity[6] - The company’s total liabilities increased to HKD 108,501,000 from HKD 99,198,000, reflecting higher trade payables[6] - The total assets of the group increased to HKD 399,972,000 in 2024 from HKD 388,333,000 in 2023, reflecting a growth of 3.9%[19] - The group reported a total liability of HKD 172,360,000 in 2024, up from HKD 158,061,000 in 2023, representing an increase of 9.0%[19] - Trade receivables as of December 31, 2024, amounted to approximately HKD 30,731,000, up from HKD 13,502,000 in 2023, reflecting a growth of about 127.7%[10] - Trade payables increased to HKD 23,991,000 in 2024 from HKD 21,660,000 in 2023, representing an increase of about 10.8%[32] Financial Performance and Expenses - Total financial expenses decreased to HKD 8,451,000 in 2024 from HKD 10,508,000 in 2023, a reduction of 19.6%[26] - Employee costs rose to HKD 73,362,000 in 2024 from HKD 68,324,000 in 2023, an increase of 7.5%[27] - Depreciation of property, plant, and equipment was HKD 5,471,000 in 2024, slightly down from HKD 5,531,000 in 2023[27] - The group recognized inventory write-downs of HKD 1,579,000 in 2024, compared to no such provisions in 2023[27] - Interest income increased to HKD 2,300,000 in 2024 from HKD 1,524,000 in 2023, a growth of 50.8%[25] Market and Strategic Outlook - Revenue from the North American market surged to HKD 88,388,000 in 2024, a substantial increase of 62% from HKD 54,608,000 in 2023[21] - The company plans to enhance its product offerings and expand its market presence, particularly in the North American and European regions[20] - The group remains cautious about the future outlook for the golf equipment business due to ongoing market uncertainties and challenges[39] Corporate Governance and Compliance - The company has adopted new and revised Hong Kong Financial Reporting Standards, which did not have a significant impact on the financial results[9] - The group has implemented strict cost control measures at its Shandong production facility to enhance production efficiency and reduce manufacturing costs[38] - The company complied with all applicable provisions of the Corporate Governance Code during the year ending December 31, 2024, with certain deviations noted[60] - The company adopted the standard code of conduct for directors' securities transactions and confirmed compliance by all directors for the year ending December 31, 2024[61] - The auditor, Deloitte (Hong Kong) Limited, confirmed that the financial figures disclosed in the performance announcement align with the group's consolidated financial statements for the year ending December 31, 2024[62] Employment and Workforce - The group employed approximately 680 employees as of December 31, 2024, compared to 550 employees in 2023, reflecting a growth of 23.6%[57] Dividends and Shareholder Information - No dividends were declared or proposed for the year ending December 31, 2024, consistent with 2023[30] - The company's annual report for 2024 will be made available to shareholders and published on the Hong Kong Stock Exchange website and the company's website[63]