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9月30日 | 狀態: 新提交 | | --- | --- | --- | | 致：香港交易及結算所有限公司 | | | | 公司名稱: | 福田實業（集團）有限公司 | | | 呈交日期: | 2025年10月2日 | | | I. 法定/註冊股本變動 | 不適用 | | | 備註： | | | | 本公司並無法定股本及其股本中並無股份面值。 | | | FF301 第 1 頁 共 10 頁 v 1.1.1 II. 已發行股份及/或庫存股份變動 | 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) | 00420 | 說明 | | | | | | | | | | 已發行股份（不包括庫存股份）數目 | | | 庫存股份數目 | | 已發行股份總數 | | | 上月底結存 | | | | 1,225,026, ...

对于此次权益变动目的，高梧卓越表示，基于对五洋自控内在价值的认可，希望通过获得公司控制权，利用自身优势为五洋自控业务发展赋能，提升公司 盈利能力与抗风险能力，为全体股东创造更好回报。截至公告签署日，高梧卓越暂无未来12个月内改变五洋自控主营业务、进行重大资产重组、调整员工 聘用计划及分红政策的明确计划。 侯友夫、蔡敏则称，本次减持主要出于自身资金需求及资本规划，未来12个月内不排除进一步增减五洋自控股份的可能，若发生相关权益变动，将按规定 履行信息披露义务。 （文章来源：证券时报网） 根据公告，侯友夫与蔡敏于9月10日与高梧卓越正式签署《关于江苏五洋自控技术股份有限公司之控制权转让协议》，拟转让的股份为二人持有的五洋自 控15%股权。其中，侯友夫转让占总股本8.44%，蔡敏转让占总股本6.56%。本次交易总价款为6.75亿元，每股转让价格约4.03元。 权益变动后，高梧卓越将持有15%股份。交易完成后，五洋自控控股股东将由侯友夫、蔡敏变更为高梧卓越，实际控制人将变更为高梧卓越执行事务合伙 人姚小春。 受让方高梧卓越成立于2024年8月9日，注册资本5.52亿元，注册地址位于深圳市南山区，经营范围涵盖智能机器人 ...

（於香港註冊成立的有限公司）（股份代號：420） (Incorporated in Hong Kong with limited liability) (Stock Code: 420) N O T I F I C AT I O N L E T T E R 通 知 信 函 如 閣下欲收取本次公司通訊文件(附 註 2)（包括本次公司通訊文件）之印刷本，請填妥在本函背面的申請表格，並使用隨附之郵寄標籤經本公司香港的股份 過戶登記處，即寶德隆證券登記有限公司（「香港股份登記處」）寄回本公司（如在香港投寄，毋須貼上郵票；否則，請貼上適當的郵票）。香港股份登記處 地址為香港北角電氣道 148 號 21 樓 2103B 室。申請表格亦可於本公司網站（http://www.fshl.com）或香港交易所網站（www.hkexnews.hk）內下載。 Dear Non-registered holder (Note 1) , Fountain Set (Holdings) Limited (the "Company") – Notice of publication of 2025 Interim Report ("Curr ...

（於香港註冊成立的有限公司）（股份代號：420） (Incorporated in Hong Kong with limited liability) (Stock Code: 420) N O T I F I C AT I O N L E T T E R 通 知 信 函 8 September 2025 Dear Registered Shareholder, Note 1: Corporate Communications refers to any document issued or to be issued by the Company for the information or action of holders of any of its securities as defined in Rule 1.01 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, including but not limited to (a) the annual report; ...

[GROUP PROFILE](index=2&type=section&id=GROUP%20PROFILE) The Group is one of the largest and longest-established knitwear manufacturers globally, offering vertically integrated services [About Fountain Set (Holdings) Limited](index=2&type=section&id=About%20Fountain%20Set%20%28Holdings%29%20Limited) Fountain Set Group is one of the world's largest and longest-established knitwear manufacturers, providing vertically integrated services from knitting to garment manufacturing - One of the largest and longest-established knitwear manufacturers globally, providing vertically integrated knitting, dyeing, printing, finishing, and garment manufacturing services[2](index=2&type=chunk)[5](index=5&type=chunk) - Headquartered in Hong Kong, with 8 production facilities in China, Sri Lanka, and Indonesia, and marketing/representative offices in 5 countries and regions[3](index=3&type=chunk)[5](index=5&type=chunk) - Total global workforce of approximately **5,600 employees**[3](index=3&type=chunk)[5](index=5&type=chunk) [REPORT ON REVIEW OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS](index=3&type=section&id=REPORT%20ON%20REVIEW%20OF%20INTERIM%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) This report details the independent auditor's review of the interim condensed consolidated financial statements for the six months ended June 30, 2025 [INTRODUCTION](index=3&type=section&id=INTRODUCTION) The independent auditor has reviewed the interim condensed consolidated financial statements for the six months ended June 30, 2025, prepared in accordance with HKAS 34 - The firm has reviewed the interim condensed consolidated financial statements for the six months ended June 30, 2025, prepared in compliance with Hong Kong Accounting Standard 34 "Interim Financial Reporting"[8](index=8&type=chunk)[10](index=10&type=chunk) - The scope of review is substantially less than an audit conducted in accordance with Hong Kong Standards on Auditing, thus no audit opinion is expressed[9](index=9&type=chunk)[11](index=11&type=chunk) [CONCLUSION](index=4&type=section&id=CONCLUSION) Based on the review, the independent auditor found no matters suggesting that the interim condensed consolidated financial statements were not prepared in all material respects in accordance with HKAS 34 - Based on the review, nothing has come to our attention that causes us to believe that the interim condensed consolidated financial statements are not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34[12](index=12&type=chunk)[13](index=13&type=chunk) - The review report was issued by Shinewing (HK) CPA Limited on August 21, 2025[14](index=14&type=chunk) [CONDENSED CONSOLIDATED FINANCIAL STATEMENTS](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) This section presents the Group's condensed consolidated financial statements, including statements of profit or loss, financial position, changes in equity, and cash flows [CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20PROFIT%20OR%20LOSS%20AND%20OTHER%20COMPREHENSIVE%20INCOME) For the six months ended June 30, 2025, Group revenue decreased by 12.7% to HK$1,937,026 thousand, while profit for the period significantly increased to HK$35,812 thousand from HK$4,243 thousand in the prior year Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Summary (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 1,937,026 | 2,219,366 | (282,340) | -12.7% | | Gross profit | 227,441 | 244,814 | (17,373) | -7.1% | | Profit before income tax expense | 51,421 | 25,833 | 25,588 | 99.1% | | Profit for the period | 35,812 | 4,243 | 31,569 | 744.0% | | Profit/(Loss) for the period attributable to owners of the Company | 30,670 | (9,906) | 40,576 | N/A | | Basic earnings/(loss) per share (HK cents) | 2.5 | (0.8) | 3.3 | N/A | | Total comprehensive income for the period | 46,663 | 1,006 | 45,657 | 4538.5% | | Total comprehensive income for the period attributable to owners of the Company | 38,632 | (12,498) | 51,130 | N/A | - Exchange differences turned from a loss of HK$(3,237) thousand in the same period of 2024 to a gain of **HK$10,851 thousand** in 2025, positively impacting comprehensive income[17](index=17&type=chunk) [CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20FINANCIAL%20POSITION) As of June 30, 2025, the Group's total assets were HK$4,585,521 thousand, slightly lower than HK$4,614,618 thousand at December 31, 2024, maintaining a healthy asset-liability structure Condensed Consolidated Statement of Financial Position Summary (As of June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Non-current assets | 1,495,112 | 1,518,322 | (23,210) | -1.5% | | Current assets | 3,090,409 | 3,096,296 | (5,887) | -0.2% | | Current liabilities | 960,344 | 972,989 | (12,645) | -1.3% | | Non-current liabilities | 190,117 | 185,856 | 4,261 | 2.3% | | Net assets | 3,435,060 | 3,455,773 | (20,713) | -0.6% | | Total equity | 3,435,060 | 3,455,773 | (20,713) | -0.6% | - Inventories increased to **HK$873,994 thousand** (December 31, 2024: HK$784,735 thousand), while prepayments, deposits, and other receivables decreased to **HK$155,781 thousand** (December 31, 2024: HK$210,366 thousand)[19](index=19&type=chunk) - Bank borrowings (due within one year) significantly decreased from HK$48,795 thousand to **HK$25,039 thousand**[19](index=19&type=chunk) [CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY](index=9&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20CHANGES%20IN%20EQUITY) For the six months ended June 30, 2025, the Group's total equity slightly decreased from HK$3,455,773 thousand at the beginning of the period to HK$3,435,060 thousand Condensed Consolidated Statement of Changes in Equity Summary (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Total equity at beginning of period | 3,455,773 | 3,468,666 | | Total comprehensive income for the period | 46,663 | 1,006 | | Dividends recognized as distribution | (67,376) | (36,751) | | Total equity at end of period | 3,435,060 | 3,432,921 | - Retained earnings attributable to owners of the Company decreased from HK$2,290,902 thousand as of January 1, 2025, to **HK$2,254,196 thousand**, primarily due to dividend distribution of HK$67,376 thousand[22](index=22&type=chunk) - Exchange reserve improved from HK$(65,369) thousand as of January 1, 2025, to **HK$(57,407) thousand**, an increase of HK$7,962 thousand[22](index=22&type=chunk) [CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS](index=10&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20CASH%20FLOWS) For the six months ended June 30, 2025, net cash used in operating activities significantly decreased to HK$731 thousand, while investing activities generated net cash inflow of HK$67,406 thousand Condensed Consolidated Statement of Cash Flows Summary (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | | :--- | :--- | :--- | :--- | | Net cash used in operating activities | (731) | (62,541) | 61,810 | | Net cash generated from/(used in) investing activities | 67,406 | (27,040) | 94,446 | | Net cash used in financing activities | (113,143) | (173,872) | 60,729 | | Net decrease in cash and cash equivalents | (46,468) | (263,453) | 216,985 | | Cash and cash equivalents at end of period | 1,251,535 | 1,114,470 | 137,065 | - Proceeds from land expropriation amounted to **HK$96,791 thousand**, a major contributor to net cash generated from investing activities[23](index=23&type=chunk) - Dividends paid amounted to **HK$67,376 thousand**, whereas no interim dividends were distributed in the prior year[23](index=23&type=chunk) [NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS](index=11&type=section&id=NOTES%20TO%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) This section provides detailed notes to the condensed consolidated financial statements, explaining the basis of preparation, accounting policies, and specific financial items [1. GENERAL INFORMATION](index=11&type=section&id=1.%20GENERAL%20INFORMATION) The Company is a public limited company incorporated in Hong Kong, with its shares listed on the Main Board of the Hong Kong Stock Exchange - The Company is a public limited company incorporated in Hong Kong, with its issued shares listed on the Main Board of The Stock Exchange of Hong Kong Limited[24](index=24&type=chunk)[28](index=28&type=chunk) - The 2024 annual consolidated financial statements were submitted to the Registrar of Companies, and the independent auditor's report was unqualified[25](index=25&type=chunk)[26](index=26&type=chunk)[28](index=28&type=chunk) [2. BASIS OF PREPARATION](index=11&type=section&id=2.%20BASIS%20OF%20PREPARATION) The interim condensed consolidated financial statements for the six months ended June 30, 2025, are prepared in accordance with HKAS 34 and Appendix D2 of the Listing Rules - The financial statements are prepared in accordance with the applicable disclosure requirements of Appendix D2 of the Listing Rules of the Stock Exchange and Hong Kong Accounting Standard 34 Interim Financial Reporting[27](index=27&type=chunk)[29](index=29&type=chunk) [3. ACCOUNTING POLICIES](index=12&type=section&id=3.%20ACCOUNTING%20POLICIES) The interim condensed consolidated financial statements are prepared on a historical cost basis, applying the same accounting policies as the 2024 annual consolidated financial statements, except for new HKFRS amendments with no significant impact - The interim condensed consolidated financial statements are prepared on a historical cost basis, using the same accounting policies as those adopted for the preparation of the 2024 annual consolidated financial statements for the year ended December 31, 2024[30](index=30&type=chunk)[33](index=33&type=chunk) - The amendments to Hong Kong Accounting Standard 21 "Lack of Exchangeability" were first applied but had no significant impact on the Group's financial performance and position in the current and prior periods[31](index=31&type=chunk)[32](index=32&type=chunk)[34](index=34&type=chunk) - New Hong Kong Financial Reporting Standards and amendments (e.g., HKFRS 18, HKFRS 19) issued but not yet effective are not expected to have a significant impact on the Group's financial performance and position[32](index=32&type=chunk)[36](index=36&type=chunk) [4. SEASONALITY OF OPERATIONS](index=13&type=section&id=4.%20SEASONALITY%20OF%20OPERATIONS) Due to the seasonal nature of manufacturing and selling dyed fabrics and yarns, revenue and operating profit in the first half of the year are typically lower than in the second half - Due to the seasonal nature of manufacturing and selling dyed fabrics and yarns, revenue and operating profit in the first half of the year are generally expected to be lower than in the second half[37](index=37&type=chunk)[38](index=38&type=chunk) - Sales are lower during January to February, primarily due to reduced supply of dyed fabrics and yarns during the peak holiday season in the People's Republic of China[37](index=37&type=chunk)[38](index=38&type=chunk) [5. SIGNIFICANT EVENTS AND TRANSACTIONS](index=14&type=section&id=5.%20SIGNIFICANT%20EVENTS%20AND%20TRANSACTIONS) For the six months ended June 30, 2024, the Group decided to cease fabric dyeing and finishing production at Jiangyin Fuhui Textile Co., Ltd., retaining only its weaving capacity - For the six months ended June 30, 2024, the Group decided to cease fabric dyeing and finishing production at Jiangyin Fuhui Textile Co., Ltd., retaining only the weaving capacity of its operating fabric factory[40](index=40&type=chunk)[44](index=44&type=chunk) [6. REVENUE AND SEGMENT INFORMATION](index=14&type=section&id=6.%20REVENUE%20AND%20SEGMENT%20INFORMATION) The Group's operating segments are geographically defined, with total revenue of HK$1,937,026 thousand for the six months ended June 30, 2025, primarily from manufacturing and sales of dyed fabrics and yarns - Operating segments are classified by customer location, including Hong Kong, China, Taiwan, Korea, Sri Lanka, Americas, Europe, and other regions[41](index=41&type=chunk)[45](index=45&type=chunk) External Sales by Geographical Region (For the six months ended June 30) | Region | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Hong Kong | 243,307 | 357,146 | (113,839) | -31.9% | | China | 700,113 | 729,890 | (29,777) | -4.1% | | Sri Lanka | 386,176 | 456,997 | (70,821) | -15.5% | | Americas | 16,481 | 103,163 | (86,682) | -84.0% | | Europe | 41,438 | 9,233 | 32,205 | 348.8% | | Other Regions | 384,666 | 363,710 | 20,956 | 5.8% | | **Total** | **1,937,026** | **2,219,366** | **(282,340)** | **-12.7%** | Revenue by Product (For the six months ended June 30) | Product | 2025 (HK$ thousand) | 2024 (HK$ thousand) | % of Total Revenue (2025) | | :--- | :--- | :--- | :--- | | Manufacturing and sales of dyed fabrics and yarns | 1,690,012 | 1,893,885 | 87.2% | | Manufacturing and sales of garments | 247,014 | 325,481 | 12.8% | | **Total** | **1,937,026** | **2,219,366** | **100.0%** | [7. FINANCE COSTS](index=16&type=section&id=7.%20FINANCE%20COSTS) For the six months ended June 30, 2025, the Group's finance costs decreased significantly by 34.7% to HK$5,235 thousand, primarily due to reduced bank borrowing costs Finance Costs Analysis (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Bank borrowings | 1,934 | 4,935 | (3,001) | -60.8% | | Lease liabilities | 3,301 | 3,079 | 222 | 7.2% | | **Total** | **5,235** | **8,014** | **(2,779)** | **-34.7%** | [8. INCOME TAX EXPENSE](index=17&type=section&id=8.%20INCOME%20TAX%20EXPENSE) For the six months ended June 30, 2025, the Group's income tax expense decreased by 27.7% to HK$15,609 thousand, with key tax rates including 8.25%/16.5% in Hong Kong, 25% in China, and 30% in Sri Lanka Income Tax Expense Analysis (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Current tax for the period | 15,494 | 22,255 | (6,761) | -30.4% | | (Over)/Under-provision in prior years | (54) | 645 | (699) | -108.4% | | Deferred tax | 169 | (1,310) | 1,479 | -112.9% | | **Total** | **15,609** | **21,590** | **(5,981)** | **-27.7%** | - Hong Kong profits tax rates are **8.25%** (for the first HK$2 million) and **16.5%**, China subsidiaries' tax rate is **25%**, and Sri Lanka subsidiaries' tax rate is **30%**[58](index=58&type=chunk)[59](index=59&type=chunk)[60](index=60&type=chunk) [9. OTHER REVENUE, OTHER GAINS AND LOSSES/PROFIT FOR THE PERIOD](index=18&type=section&id=9.%20OTHER%20REVENUE%2C%20OTHER%20GAINS%20AND%20LOSSES%2FPROFIT%20FOR%20THE%20PERIOD) For the six months ended June 30, 2025, other revenue increased to HK$40,621 thousand, and net other gains and losses were HK$9,288 thousand, driven by higher net exchange gains Other Revenue Analysis (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Amortisation of deferred income | 2,747 | 2,599 | 148 | 5.7% | | Compensation income | 4,141 | 5,600 | (1,459) | -26.1% | | Government grants | 877 | 538 | 339 | 63.0% | | Interest income | 13,763 | 14,843 | (1,080) | -7.3% | | Net rental income from investment properties | 4,206 | 3,826 | 380 | 9.9% | | Others | 14,887 | 8,662 | 6,253 | 72.2% | | **Total** | **40,621** | **36,068** | **4,581** | **12.7%** | Other Gains and Losses Analysis (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net exchange gains | 16,945 | 4,387 | 12,558 | 286.3% | | Gain on disposal/write-off of property, plant and equipment | 1,070 | 3,131 | (2,061) | -65.8% | | Net impairment loss allowance recognized on trade and bills receivables | (8,727) | (4,731) | (3,996) | 84.5% | | **Total** | **9,288** | **2,787** | **6,501** | **233.3%** | - Profit for the period is stated after deducting depreciation of property, plant and equipment of **HK$75,363 thousand** and employee costs of **HK$327,178 thousand**[68](index=68&type=chunk) [10. DIVIDENDS](index=20&type=section&id=10.%20DIVIDENDS) For the six months ended June 30, 2025, the Board decided not to declare an interim dividend, but approved final and special dividends for 2024 totaling HK$67,376 thousand - For the six months ended June 30, 2025, the Board did not propose to declare any interim dividend[71](index=71&type=chunk) Dividends Recognized as Distribution (For the six months ended June 30) | Dividend Type | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | 2024 Final and Special Dividends | 67,376 | 36,751 | 30,625 | 83.3% | - The 2024 final dividend of **1.16 HK cents per share** and special dividend of **4.34 HK cents per share** were approved at the Annual General Meeting held on June 6, 2025[72](index=72&type=chunk) [11. EARNINGS/(LOSS) PER SHARE](index=20&type=section&id=11.%20EARNINGS%2F%28LOSS%29%20PER%20SHARE) For the six months ended June 30, 2025, basic earnings per share significantly improved to 2.5 HK cents from a loss of 0.8 HK cents in the prior year Earnings/(Loss) Per Share Calculation Data (For the six months ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit/(Loss) for the period attributable to owners of the Company (HK$ thousand) | 30,670 | (9,906) | | Weighted average number of ordinary shares | 1,225,026,960 | 1,225,026,960 | | Basic earnings/(loss) per share (HK cents) | 2.5 | (0.8) | - Diluted earnings/(loss) per share is equal to basic earnings/(loss) per share, as there were no potentially dilutive ordinary shares outstanding during the periods ended June 30, 2025, and 2024[79](index=79&type=chunk)[83](index=83&type=chunk) [12. MOVEMENTS IN PROPERTY, PLANT AND EQUIPMENT](index=21&type=section&id=12.%20MOVEMENTS%20IN%20PROPERTY%2C%20PLANT%20AND%20EQUIPMENT) For the six months ended June 30, 2025, the Group incurred HK$60,720 thousand in capital expenditure for property, plant and equipment, with no impairment losses recognized - For the six months ended June 30, 2025, the Group incurred expenditure of **HK$60,720 thousand** on property, plant and equipment to expand and upgrade its production facilities[80](index=80&type=chunk)[84](index=84&type=chunk) - As of June 30, 2025, management reviewed the recoverable amounts of related property, plant and equipment and right-of-use assets under cash-generating units, and no impairment losses were identified[81](index=81&type=chunk)[85](index=85&type=chunk) - On June 30, 2024, an impairment loss of **HK$10,767 thousand** was recognized for idle equipment due to further reduction in fabric production capacity at Jiangyin Fuhui's operating fabric factory since February 2024[85](index=85&type=chunk) [13. MOVEMENTS IN RIGHT-OF-USE ASSETS AND LEASE LIABILITIES](index=22&type=section&id=13.%20MOVEMENTS%20IN%20RIGHT-OF-USE%20ASSETS%20AND%20LEASE%20LIABILITIES) As of June 30, 2025, the carrying value of right-of-use assets was HK$200,317 thousand and lease liabilities was HK$145,553 thousand, with new leases and lease modifications impacting these balances Carrying Value of Right-of-Use Assets (As of June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Leased land and buildings | 200,020 | 190,227 | | Equipment and machinery | 297 | 351 | | **Total** | **200,317** | **191,575** | Carrying Value of Lease Liabilities (As of June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Leased land and buildings | 145,247 | 133,512 | | Equipment | 306 | 360 | | **Total** | **145,553** | **133,872** | - For the six months ended June 30, 2025, the Group entered into new lease agreements for plant and office properties, recognizing an increase in right-of-use assets and lease liabilities of **HK$33,294 thousand** each[87](index=87&type=chunk)[89](index=89&type=chunk)[91](index=91&type=chunk) - For the six months ended June 30, 2025, lease liabilities decreased by **HK$6,333 thousand** due to modifications of lease terms, with a corresponding adjustment to right-of-use assets[92](index=92&type=chunk)[94](index=94&type=chunk) [14. INVENTORIES](index=23&type=section&id=14.%20INVENTORIES) As of June 30, 2025, the Group's total inventories increased to HK$873,994 thousand from HK$784,735 thousand at December 31, 2024, mainly due to increases in raw materials and finished goods Inventories Composition (As of June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Spare parts | 22,716 | 24,879 | (2,163) | -8.7% | | Raw materials | 292,910 | 217,545 | 75,365 | 34.6% | | Work-in-progress | 314,297 | 307,211 | 7,086 | 2.3% | | Finished goods | 244,071 | 235,100 | 8,971 | 3.8% | | **Total** | **873,994** | **784,735** | **89,259** | **11.4%** | [15. TRADE AND BILLS RECEIVABLES/PREPAYMENTS, DEPOSITS AND OTHER RECEIVABLES](index=24&type=section&id=15.%20TRADE%20AND%20BILLS%20RECEIVABLES%2FPREPAYMENTS%2C%20DEPOSITS%20AND%20OTHER%20RECEIVABLES) As of June 30, 2025, net trade and bills receivables slightly increased to HK$806,542 thousand, and other receivables totaled HK$155,781 thousand, with land expropriation compensation received Trade and Bills Receivables Ageing Analysis (As of June 30) | Ageing | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Within 1 month | 410,857 | 338,956 | 71,901 | 21.2% | | 1 to 2 months | 191,444 | 254,840 | (63,396) | -24.9% | | 2 to 3 months | 132,118 | 103,191 | 28,927 | 28.0% | | Over 3 months | 121,286 | 145,273 | (23,987) | -16.5% | | Total | 855,705 | 842,260 | 13,445 | 1.6% | | Less: Provision for expected credit losses | (49,163) | (40,191) | (8,972) | 22.3% | | **Net** | **806,542** | **802,069** | **4,473** | **0.6%** | - As of June 30, 2025, other receivables comprised recoverable value-added tax of **HK$9,653 thousand** and prepayments, deposits, and other receivables of **HK$146,128 thousand**[98](index=98&type=chunk) - Land expropriation compensation receivable of **HK$96,791 thousand** was received on January 2, 2025, with no significant increase in credit risk for these receivables[100](index=100&type=chunk)[101](index=101&type=chunk) [16. TRADE AND BILLS PAYABLES](index=25&type=section&id=16.%20TRADE%20AND%20BILLS%20PAYABLES) As of June 30, 2025, the Group's total trade and bills payables increased to HK$601,806 thousand from HK$562,544 thousand at December 31, 2024, driven by growth in both trade and bills payables Trade and Bills Payables Composition (As of June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Trade payables | 500,187 | 494,187 | 6,000 | 1.2% | | Bills payables | 101,619 | 68,357 | 33,262 | 48.7% | | **Total** | **601,806** | **562,544** | **39,262** | **7.0%** | Trade and Bills Payables Ageing Analysis (As of June 30) | Ageing | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Within 1 month | 399,385 | 346,916 | 52,469 | 15.1% | | 1 to 2 months | 101,675 | 122,921 | (21,246) | -17.3% | | 2 to 3 months | 43,619 | 40,917 | 2,702 | 6.6% | | Over 3 months | 57,127 | 51,790 | 5,337 | 10.3% | | **Total** | **601,806** | **562,544** | **39,262** | **7.0%** | [17. OTHER PAYABLES AND ACCRUALS](index=26&type=section&id=17.%20OTHER%20PAYABLES%20AND%20ACCRUALS) As of June 30, 2025, the Group's total other payables and accruals decreased to HK$240,899 thousand from HK$268,491 thousand at December 31, 2024, primarily due to a decrease in accrued expenses Other Payables and Accruals Composition (As of June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Other payables | 149,823 | 155,281 | (5,458) | -3.5% | | Accruals | 91,076 | 113,210 | (22,134) | -19.6% | | **Total** | **240,899** | **268,491** | **(27,592)** | **-10.3%** | [18. BANK BORROWINGS](index=26&type=section&id=18.%20BANK%20BORROWINGS) For the six months ended June 30, 2025, the Group's bank borrowings decreased to HK$25,039 thousand, with an average effective annual interest rate of 3.67%, and all covenants were complied with - For the six months ended June 30, 2025, the Group obtained new bank borrowings of **HK$76,672 thousand** and repaid **HK$100,433 thousand**[109](index=109&type=chunk) - Total bank borrowings decreased to **HK$25,039 thousand** (December 31, 2024: HK$48,795 thousand), primarily consisting of floating and fixed-rate borrowings[19](index=19&type=chunk)[110](index=110&type=chunk) - The average effective annual interest rate for bank borrowings was **3.67%** (December 31, 2024: 6.24%), and all bank borrowings are unsecured and repayable within one year[110](index=110&type=chunk) - The Group complied with all covenant ratios during the six months ended June 30, 2025, and the year ended December 31, 2024[111](index=111&type=chunk)[112](index=112&type=chunk)[114](index=114&type=chunk) [19. SHARE CAPITAL](index=27&type=section&id=19.%20SHARE%20CAPITAL) As of June 30, 2025, the Company's issued and fully paid ordinary shares remained unchanged at 1,225,026,960 shares, with share capital of HK$889,810 thousand Share Capital Information (As of June 30) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Number of issued and fully paid ordinary shares | 1,225,026,960 | 1,225,026,960 | | Share capital (HK$ thousand) | 889,810 | 889,810 | - In accordance with Section 135 of the Hong Kong Companies Ordinance (Chapter 622), the Company's ordinary shares have no par value[116](index=116&type=chunk) [20. CAPITAL COMMITMENTS](index=27&type=section&id=20.%20CAPITAL%20COMMITMENTS) As of June 30, 2025, the Group's contracted but unprovided capital expenditure for property, plant and equipment increased to HK$36,504 thousand Capital Commitments (As of June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Contracted but unprovided capital expenditure (purchase of property, plant and equipment) | 36,504 | 29,538 | 6,966 | 23.6% | [21. FINANCIAL INSTRUMENTS](index=28&type=section&id=21.%20FINANCIAL%20INSTRUMENTS) The Group's financial instruments, including cash, receivables, payables, and bank borrowings, have carrying values that do not materially differ from their fair values due to their short-term nature - Financial instruments not measured at fair value include cash and cash equivalents, restricted bank deposits, trade and bills receivables, deposits, other receivables, trade and bills payables, other payables and accruals, amounts due to non-controlling shareholders, amounts due to an associate, and bank borrowings[117](index=117&type=chunk)[120](index=120&type=chunk) - Due to their short-term nature, the carrying amounts of these financial instruments approximate their fair values, with no material differences[118](index=118&type=chunk)[119](index=119&type=chunk)[120](index=120&type=chunk) [22. RELATED PARTY DISCLOSURES](index=28&type=section&id=22.%20RELATED%20PARTY%20DISCLOSURES) The Group has various transactions and balances with related parties, including amounts due to non-controlling shareholders and an associate, and sales/purchases with associates and controlling shareholders Related Party Balances (As of June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Amounts due to non-controlling shareholders | 23,040 | 23,040 | | Amounts due to an associate | 7,334 | 6,397 | Related Party Transactions (For the six months ended June 30) | Related Party | Relationship | Nature of Transaction | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | | Dongguan Xinrun Water Co., Ltd. | Associate | Sewage treatment fees | 12,384 | 15,990 | | FM Group | Significant influence over non-wholly owned subsidiary | Sales of fabrics, grey yarns, fibers and garment accessories | 166,239 | 180,329 | | AH Group | Significant influence over non-wholly owned subsidiary | Sales of fabrics, grey yarns, fibers and garment accessories | 139,474 | 145,937 | | COFCO Group | Controlling shareholder | Purchase of grey yarns, cotton and other raw materials, garments, and food and oil products | 3,179 | 5,182 | - As of June 30, 2025, **HK$155,296 thousand** (December 31, 2024: HK$142,452 thousand) included in bank balances and cash was placed with COFCO Finance, a fellow subsidiary of the Group[134](index=134&type=chunk)[135](index=135&type=chunk) [BUSINESS REVIEW](index=32&type=section&id=BUSINESS%20REVIEW) This section provides an overview of the Group's business performance, strategies, and key developments during the reporting period [Overall Business Environment and Strategy](index=32&type=section&id=Overall%20Business%20Environment%20and%20Strategy) In 1H2025, the Group faced severe challenges from geopolitical tensions, global economic downturn, rising tariffs, and supply chain shifts, responding with strategies to enhance customer management, reduce costs, and promote intelligent automation - Faced challenges including geopolitical tensions, increased global economic downturn risks, generally rising tariff levels, increased uncertainty in the trade environment, and accelerated diversification and relocation of international textile and apparel supply chain procurement and production from China[137](index=137&type=chunk)[141](index=141&type=chunk) - Implemented a series of strategies and measures, including strengthening customer management, reducing procurement costs, deepening lean management and total quality management, accelerating intelligent and automated construction, and implementing strict cost control measures[138](index=138&type=chunk)[140](index=140&type=chunk)[141](index=141&type=chunk)[142](index=142&type=chunk) - Achieved operating profit before income tax expense in the first half of the year; despite external difficulties, the Group remains optimistic about the industry outlook and will actively respond[138](index=138&type=chunk)[141](index=141&type=chunk) [Financial Performance Highlights](index=32&type=section&id=Financial%20Performance%20Highlights) Despite a 12.7% decrease in total revenue to HK$1,937,026 thousand in 1H2025, profit attributable to owners of the Company significantly improved from a loss of HK$9,906 thousand to a profit of HK$30,670 thousand Financial Performance Highlights (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | 1,937,026 | 2,219,366 | (282,340) | -12.7% | | Profit/(Loss) attributable to owners of the Company | 30,670 | (9,906) | 40,576 | N/A | | Profit before income tax expense | 51,421 | 25,833 | 25,588 | 99.1% | | Basic earnings/(loss) per share (HK cents) | 2.5 | (0.8) | 3.3 | 412.5% | | Total comprehensive income (attributable to owners of the Company) | 38,632 | (12,498) | 51,130 | 409.1% | - Cost control was effective, with administrative expenses decreasing by **2.4%** to HK$192,268 thousand, finance costs significantly decreasing by **34.7%** to HK$5,235 thousand, and cost of sales decreasing by **13.4%** to HK$1,709,585 thousand[145](index=145&type=chunk)[149](index=149&type=chunk) - Gross profit margin increased from **11.0%** in the same period of 2024 to **11.7%** in 2025, with gross profit reaching HK$227,441 thousand[145](index=145&type=chunk)[149](index=149&type=chunk) [Production and Sales of Dyed Fabrics and Yarns](index=34&type=section&id=Production%20and%20Sales%20of%20Dyed%20Fabrics%20and%20Yarns) In 1H2025, manufacturing and sales of dyed fabrics and yarns remained the Group's core business, contributing approximately HK$1,690,012 thousand, or 87.2% of total revenue - Manufacturing and sales of dyed fabrics and yarns is the Group's core business, generating approximately **HK$1,690,012 thousand** in revenue[151](index=151&type=chunk)[154](index=154&type=chunk) - This business accounted for **87.2%** of the Group's total revenue[151](index=151&type=chunk)[154](index=154&type=chunk) [Production and Sales of Garments](index=34&type=section&id=Production%20and%20Sales%20of%20Garments) In 1H2025, the garment manufacturing and sales business generated approximately HK$247,014 thousand in revenue, accounting for 12.8% of the Group's total revenue - In 1H2025, revenue from garment manufacturing and sales was approximately **HK$247,014 thousand**[152](index=152&type=chunk)[155](index=155&type=chunk) - This business accounted for **12.8%** of the Group's total revenue[152](index=152&type=chunk)[155](index=155&type=chunk) [Dividend](index=34&type=section&id=Dividend) The Board decided not to declare an interim dividend for 1H2025, but anticipates declaring a final dividend for the full year 2025, maintaining the payout ratio given strong cash flow and expected profitability - The Board decided and announced not to declare any interim dividend for the six months ended June 30, 2025[153](index=153&type=chunk)[156](index=156&type=chunk) - A final dividend for the twelve months ended December 31, 2025, is expected to be declared, maintaining the payout ratio as much as possible, given the Group's strong cash flow and anticipated profitability in the second half[153](index=153&type=chunk)[156](index=156&type=chunk) - The Group has maintained final dividend payouts in recent years, except for 2022, with payout ratios ranging from approximately **71.4% to 100%**[153](index=153&type=chunk)[156](index=156&type=chunk) [Awards and Certifications](index=35&type=section&id=Awards%20and%20Certifications) In 1H2025, several Group subsidiaries received various industry certifications and awards, demonstrating commitment to sustainability, quality, and environmental protection - Fountain Set Limited obtained Global Recycled Standard (GRS 4.0), Organic Content Standard (OCS 3.0), Global Organic Textile Standard (GOTS 6.0), and the U.S. Cotton Trust Protocol membership certificate[158](index=158&type=chunk) - Ocean Lanka (Private) Limited received the Presidential Export Award – Merit Award in the Knitted Fabric category[158](index=158&type=chunk) - Dongguan Shatian Lihai Textile Printing and Dyeing Co., Ltd. obtained multiple certifications, including GOTS 7.0, OCS 3.0, GRS 4.0, Oeko-Tex Standard 100, Higg Index FEM, and awards such as "Zero-Waste Factory" and "Clean Production Enterprise"[160](index=160&type=chunk)[162](index=162&type=chunk) - Yancheng Fuhui Textile Co., Ltd. obtained certifications including GRS 4.0, GOTS 6.0, OCS 3.0, ISO14001 Environmental Management System, ISO50001 Energy Management System, and ISO90001 Quality Management System[162](index=162&type=chunk)[164](index=164&type=chunk) [OUTLOOK](index=39&type=section&id=OUTLOOK) This section outlines the Group's future prospects and strategic initiatives in response to the evolving economic and industry landscape [Future Outlook and Strategy](index=39&type=section&id=Future%20Outlook%20and%20Strategy) The macroeconomic and textile industry outlook remains challenging, with ongoing global economic uncertainty and supply chain restructuring, yet the Group maintains cautious optimism for the second half of the year - The macroeconomic and textile and apparel industry outlook remains severe, with continued global economic growth uncertainty, complex trade conditions due to high tariffs imposed by the US, and accelerated restructuring of the global textile and apparel supply chain[167](index=167&type=chunk)[170](index=170&type=chunk) - Despite significant operational challenges in the second half and beyond, the Group maintains a relatively cautious optimistic outlook for the second half, with steady improvements in operational management, optimized capacity layout, and continuous effectiveness of lean management and quality cost control[167](index=167&type=chunk)[170](index=170&type=chunk) - In the future, the Group will continue to drive enterprise development through technological innovation, expand markets, increase operating scale, systematically promote international operations, accelerate the transformation of information technology, automation, intelligence, and green production technologies, strengthen lean management, improve product quality, streamline organizational structure, and strictly control costs and expenses[167](index=167&type=chunk)[170](index=170&type=chunk) [OUR APPRECIATION](index=39&type=section&id=OUR%20APPRECIATION) This section expresses gratitude to all stakeholders for their continued support and contributions to the Group [Gratitude to Stakeholders](index=39&type=section&id=Gratitude%20to%20Stakeholders) The Group extends sincere thanks to all shareholders, customers, business partners, suppliers, and employees for their continuous support, dedication, commitment, and contributions during a period of increased economic uncertainty - Expresses gratitude to all shareholders, customers, business partners, and suppliers for their continued support amidst increasing economic uncertainty[169](index=169&type=chunk)[172](index=172&type=chunk) - Appreciates the dedication, commitment, and contributions of all employees to the Group's success[169](index=169&type=chunk)[172](index=172&type=chunk) [FINANCIAL REVIEW](index=40&type=section&id=FINANCIAL%20REVIEW) This section provides a detailed analysis of the Group's financial performance and position, including key operating and financial indicators [Key Operating and Financial Indicators](index=40&type=section&id=Key%20Operating%20and%20Financial%20Indicators) In 1H2025, key operating and financial indicators show improved profitability despite decreased revenue, with higher EBITDA and EBITDA margin, and stable liquidity, though inventory turnover worsened Key Operating and Financial Indicators (For the six months ended June 30) | Indicator | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue (HK$ thousand) | 1,937,026 | 2,219,366 | -12.7% | | Gross profit (HK$ thousand) | 227,441 | 244,814 | -7.1% | | EBITDA (HK$ thousand) | 148,556 | 125,557 | 18.3% | | Profit for the period (HK$ thousand) | 35,812 | 4,243 | 744.0% | | Profit/(Loss) attributable to owners of the Company (HK$ thousand) | 30,670 | (9,906) | N/A | | Basic earnings/(loss) per share (HK cents) | 2.5 | (0.8) | 412.5% | | Gross profit margin (%) | 11.7% | 11.0% | +0.7pp | | EBITDA margin (%) | 7.7% | 5.7% | +2.0pp | | Distribution and selling expenses as % of revenue | 1.5% | 2.4% | -0.9pp | | Administrative expenses as % of revenue | 9.9% | 8.9% | +1.0pp | | Finance costs as % of revenue | 0.3% | 0.4% | -0.1pp | | Inventory turnover (days) | 93 | 79 | +14 days | | Trade and bills receivables turnover (days) | 75 | 73 | +2 days | | Trade and bills payables turnover (days) | 64 | 62 | +2 days | | Current ratio | 3.2 | 3.2 | 0.0 | | Net debt/EBITDA ratio (annualized) | (8.3) | (4.6) | N/A | | Total liabilities/Equity attributable to owners of the Company | 0.4 | 0.4 | 0.0 | [Revenue](index=41&type=section&id=Revenue) In 1H2025, the Group's total revenue was HK$1,937,026 thousand, a 12.7% decrease from the prior year, with dyed fabrics and yarns contributing 87.2% and garments 12.8% - The Group's revenue for the six months ended June 30, 2025, was approximately **HK$1,937,026 thousand**, a **12.7% decrease** from the prior year[179](index=179&type=chunk)[181](index=181&type=chunk) Revenue by Business Segment (For the six months ended June 30) | Business Segment | 2025 (HK$ thousand) | 2024 (HK$ thousand) | 2025 % of Total | 2024 % of Total | | :--- | :--- | :--- | :--- | :--- | | Manufacturing and sales of dyed fabrics and yarns | 1,690,012 | 1,893,885 | 87.2% | 85.3% | | Manufacturing and sales of garments | 247,014 | 325,481 | 12.8% | 14.7% | | **Total** | **1,937,026** | **2,219,366** | **100.0%** | **100.0%** | [Cost of Sales and Gross Profit](index=41&type=section&id=Cost%20of%20Sales%20and%20Gross%20Profit) In 1H2025, the Group's cost of sales was approximately HK$1,709,585 thousand, with the overall gross profit margin improving to 11.7% due to a greater decrease in production costs than in revenue - The Group's overall cost of sales for the six months ended June 30, 2025, was approximately **HK$1,709,585 thousand**[185](index=185&type=chunk)[189](index=189&type=chunk) - The overall gross profit margin was **11.7%** (six months ended June 30, 2024: 11.0%)[185](index=185&type=chunk)[189](index=189&type=chunk) - The improvement in gross profit margin was primarily due to a greater decrease in production costs than in revenue, despite a **13.6% decrease** in fabric sales volume[186](index=186&type=chunk)[189](index=189&type=chunk) [Distribution and Selling Expenses](index=41&type=section&id=Distribution%20and%20Selling%20Expenses) In 1H2025, the Group's distribution and selling expenses significantly decreased to approximately HK$28,904 thousand, representing 1.5% of total revenue Distribution and Selling Expenses (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Distribution and selling expenses | 28,904 | 53,494 | (24,590) | -46.0% | | As % of total revenue | 1.5% | 2.4% | -0.9pp | N/A | [Administrative Expenses](index=42&type=section&id=Administrative%20Expenses) In 1H2025, the Group's administrative expenses slightly decreased to approximately HK$192,268 thousand, representing 9.9% of total revenue Administrative Expenses (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Administrative expenses | 192,268 | 197,065 | (4,797) | -2.4% | | As % of total revenue | 9.9% | 8.9% | +1.0pp | N/A | [Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA)](index=42&type=section&id=Earnings%20before%20Interest%2C%20Tax%2C%20Depreciation%20and%20Amortisation%20%28EBITDA%29) In 1H2025, the Group's EBITDA increased by 18.3% to approximately HK$148,556 thousand, with the EBITDA margin improving from 5.7% to 7.7% EBITDA (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | EBITDA | 148,556 | 125,557 | 22,999 | 18.3% | | EBITDA margin | 7.7% | 5.7% | +2.0pp | N/A | [Finance Costs](index=42&type=section&id=Finance%20Costs) In 1H2025, the Group's finance costs decreased by 34.7% to approximately HK$5,235 thousand, representing 0.3% of total revenue Finance Costs (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Finance costs | 5,235 | 8,014 | (2,779) | -34.7% | | As % of total revenue | 0.3% | 0.4% | -0.1pp | N/A | [Capital Expenditure](index=42&type=section&id=Capital%20Expenditure) In 1H2025, the Group's capital expenditure on property, plant and equipment slightly increased to approximately HK$60,720 thousand, with contracted capital commitments of HK$36,504 thousand Capital Expenditure and Commitments (As of June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Capital expenditure on property, plant and equipment | 60,720 | 59,342 | 1,378 | 2.3% | | Contracted capital commitments (as of period end) | 36,504 | 29,538 | 6,966 | 23.6% | [Income Tax Expense](index=42&type=section&id=Income%20Tax%20Expense) In 1H2025, the Group's income tax expense decreased by 27.7% to approximately HK$15,609 thousand Income Tax Expense (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Income tax expense | 15,609 | 21,590 | (5,981) | -27.7% | [Liquidity and Financial Resources](index=43&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group demonstrated strong liquidity and a healthy financial position with net assets of HK$3,435,060 thousand, reduced bank borrowings, and a current ratio of 3.2 Financial Position Summary (As of June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total assets | 4,585,521 | 4,614,618 | (29,097) | -0.6% | | Total liabilities | 1,150,461 | 1,158,845 | (8,384) | -0.7% | | Net assets | 3,435,060 | 3,455,773 | (20,713) | -0.6% | | Bank borrowings | 25,039 | 48,795 | (23,756) | -48.7% | | Bank balances and cash (including short-term bank deposits) | 1,251,535 | 1,295,475 | (43,940) | -3.4% | Key Financial Covenant Ratios (As of June 30) | Ratio | 2025 | 2024 | | :--- | :--- | :--- | | Consolidated net tangible assets (HK$ thousand) | 3,094,598 | 3,118,670 | | Consolidated total bank indebtedness to consolidated net tangible assets ratio | 0.0 | 0.0 | | Consolidated EBITDA to consolidated interest expense ratio | 28.4 | 20.9 | | Consolidated current assets to consolidated current liabilities ratio | 3.2 | 3.2 | - The Group complied with all covenant ratios and undertakings during the period ended June 30, 2025, and the year ended December 31, 2024[206](index=206&type=chunk)[210](index=210&type=chunk) [Risk Management](index=44&type=section&id=Risk%20Management) The Group employs strict and prudent risk management policies to address foreign exchange and interest rate risks, closely monitoring currency fluctuations and interest rate movements - The Group addresses foreign exchange and interest rate risks with strict and prudent risk management policies[207](index=207&type=chunk)[211](index=211&type=chunk) - The Group's sales and raw material purchases are primarily denominated in HKD, USD, and RMB, with close monitoring of USD and RMB exchange rate movements and cautious approaches to mitigate foreign exchange risk[208](index=208&type=chunk)[211](index=211&type=chunk) - The Group's bank borrowings are denominated in HKD and RMB, with interest primarily calculated at floating and fixed rates, averaging an effective annual interest rate of **3.67%** (December 31, 2024: 6.24%), and will continue to monitor market interest rate fluctuations and implement appropriate measures to mitigate interest rate risk[209](index=209&type=chunk)[211](index=211&type=chunk) [EMPLOYEES AND REMUNERATION POLICIES](index=45&type=section&id=EMPLOYEES%20AND%20REMUNERATION%20POLICIES) This section details the Group's employee information and remuneration policies, emphasizing performance-based compensation and continuous skill development [Employee Information and Policies](index=45&type=section&id=Employee%20Information%20and%20Policies) As of June 30, 2025, the Group had approximately 5,600 full-time employees, with remuneration policies based on individual performance and regional trends, supported by regular training and education subsidies - As of June 30, 2025, the number of full-time employees was approximately **5,600** (June 30, 2024: approximately 5,700)[212](index=212&type=chunk)[214](index=214&type=chunk) - The Group's remuneration policy is based on individual employee performance and regional salary trends, reviewed regularly, with discretionary bonuses awarded based on profitability[212](index=212&type=chunk)[214](index=214&type=chunk) - The Group provides regular training courses and subsidies for further education programs to enhance employees' production, sales, and management skills[213](index=213&type=chunk)[215](index=215&type=chunk) [UPDATE ON DIRECTORS' INFORMATION UNDER RULE 13.51B(1) OF THE LISTING RULES](index=45&type=section&id=UPDATE%20ON%20THE%20DIRECTORS%27%20INFORMATION%20UNDER%20RULE%2013.51B%281%29%20OF%20THE%20LISTING%20RULES) This section provides updates on changes to the Board of Directors' information as required by Listing Rule 13.51B(1) [Changes in Directors' Information](index=45&type=section&id=Changes%20in%20Directors%27%20Information) Since the date of the 2024 Annual Report, Mr. Lam Wai Shing resigned as an independent non-executive director, while Dr. Lam Lin, Dr. Yan Zhenming, and Dr. Li Gang were appointed to various board and committee roles - Mr. Lam Wai Shing resigned as an independent non-executive director, a member of the Audit Committee, and a member of the Remuneration Committee, effective June 7, 2025[216](index=216&type=chunk) - Dr. Lam Lin was appointed as an independent non-executive director, effective June 7, 2025[216](index=216&type=chunk) - Dr. Yan Zhenming was appointed as a member of the Audit Committee, and Dr. Li Gang was appointed as a member of the Remuneration Committee, both effective June 7, 2025[216](index=216&type=chunk) [DIRECTORS' INTERESTS IN SECURITIES](index=46&type=section&id=DIRECTORS%27%20INTERESTS%20IN%20SECURITIES) This section discloses the long positions in the Company's shares held by directors and chief executives as of June 30, 2025 [Directors' Long Positions in Shares](index=46&type=section&id=Directors%27%20Long%20Positions%20in%20Shares) As of June 30, 2025, Dr. Yan Zhenming held 8,380,000 shares, and Mr. Qiu Hengda and his spouse collectively held 2,888,000 shares, with no other directors holding disclosable interests Directors' Long Positions in Shares (As of June 30) | Director Name | Capacity | Nature of Interest | Number of Shares Held | Total | Approximate % of Issued Shares | | :--- | :--- | :--- | :--- | :--- | :--- | | Dr. Yan Zhenming | Beneficial owner | Personal interest | 8,380,000 | 8,380,000 | 0.68% | | Mr. Qiu Hengda | Beneficial owner | Personal interest | 2,508,000 | 2,888,000 | 0.24% | | Spouse of Mr. Qiu Hengda | Spouse's interest | Family interest | 380,000 | | | - Save as disclosed above, as of June 30, 2025, none of the Company's directors and chief executives had any disclosable interests or short positions in the shares, underlying shares, or debentures of the Company or any of its associated corporations[220](index=220&type=chunk)[221](index=221&type=chunk) [SUBSTANTIAL SHAREHOLDERS' AND OTHER PERSONS' INTERESTS](index=47&type=section&id=SUBSTANTIAL%20SHAREHOLDERS%27%20AND%20OTHER%20PERSONS%27%20INTERESTS) This section details the long positions in the Company's shares held by substantial shareholders and other persons as of June 30, 2025 [Substantial Shareholders' Long Positions in Shares](index=47&type=section&id=Substantial%20Shareholders%27%20Long%20Positions%20in%20Shares) As of June 30, 2025, substantial shareholders included COFCO Group (39.60%), China National Textiles Group (39.60%), COFCO Yingfeng Investment Management (33.39%), Huafu Holdings and its associates (17.30%), and Mr. Xia Songfang and his spouse (8.24%) Substantial Shareholders' Long Positions in Shares (As of June 30) | Substantial Shareholder Name/Entity | Capacity | Nature of Interest | Number of Shares Held | Total | Approximate % of Issued Shares | | :--- | :--- | :--- | :--- | :--- | :--- | | COFCO Corporation | Interest of controlled corporation | Corporate interest | 485,092,000 | 485,092,000 | 39.60% | | China National Textiles Group Co., Ltd. | Interest of controlled corporation | Corporate interest | 485,092,000 | 485,092,000 | 39.60% | | COFCO Yingfeng Investment Management Co., Ltd. | Beneficial owner | Personal interest | 409,036,000 | 409,036,000 | 33.39% | | Mr. Sun Weiting | Interest of controlled corporation | Corporate interest | 211,966,000 | 211,966,000 | 17.30% | | Ms. Chen Lingfen | Interest of controlled corporation | Corporate interest | 211,966,000 | 211,966,000 | 17.30% | | Huafu Holdings Co., Ltd. | Interest of controlled corporation | Corporate interest | 211,966,000 | 211,966,000 | 17.30% | | Huafu Fashion Co., Ltd. | Interest of controlled corporation | Corporate interest | 211,966,000 | 211,966,000 | 17.30% | | Mr. Xia Songfang | Beneficial owner | Personal interest | 100,996,948 | 100,996,948 | 8.24% | | Ms. Deng Juanmei | Spouse's interest | Family interest | 100,996,948 | 100,996,948 | 8.24% | - COFCO Corporation and China National Textiles Group Co., Ltd. are each deemed to be interested in the shares held by COFCO Yingfeng Investment Management Co., Ltd[229](index=229&type=chunk) - Huafu Holdings Co., Ltd., Huafu Fashion Co., Ltd., Mr. Sun Weiting, and Ms. Chen Lingfen are all deemed to be interested in the shares held by Hong Kong Tiancheng Trading Co., Ltd[229](index=229&type=chunk) [PURCHASE, SALE AND REDEMPTION OF THE COMPANY'S LISTED SECURITIES](index=48&type=section&id=PURCHASE%2C%20SALE%20AND%20REDEMPTION%20OF%20THE%20COMPANY%27S%20LISTED%20SECURITIES) This section confirms that there were no purchases, sales, or redemptions of the Company's listed securities during the reporting period [Securities Transactions](index=48&type=section&id=Securities%20Transactions) During 1H2025, neither the Company nor any of its subsidiaries repurchased, sold, or redeemed any listed securities - During 1H2025, the Company did not redeem its listed securities, nor did the Company or its subsidiaries purchase or sell such securities[226](index=226&type=chunk)[228](index=228&type=chunk) [CORPORATE GOVERNANCE CODE](index=49&type=section&id=CORPORATE%20GOVERNANCE%20CODE) This section outlines the Company's compliance with the Corporate Governance Code, noting an exception regarding the separation of Chairman and CEO roles [Compliance with Corporate Governance Code](index=49&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) In 1H2025, the Company complied with all mandatory disclosure requirements and code provisions of the Listing Rules' Corporate Governance Code, except for provision C.2.1 regarding the separation of Chairman and CEO roles - From January 1, 2025, to June 30, 2025, the Company applied and complied with the principles and all mandatory disclosure requirements and code provisions of the Corporate Governance Code set out in Appendix 14 of the Listing Rules, except for code provision C.2.1[230](index=230&type=chunk)[235](index=235&type=chunk) - Mr. Liu Xianfu, Chairman and Executive Director, also serves as the Company's Chief Executive Officer; the Board believes that having the same individual hold both positions allows the Group to more efficiently plan overall strategies and achieve budget targets[230](index=230&type=chunk)[235](index=235&type=chunk) - The Board, composed of experienced, professional, and high-quality individuals (including a sufficient number of independent non-executive directors), believes there is adequate capability to ensure a balance of functions and powers under this arrangement[231](index=231&type=chunk)[236](index=236&type=chunk) [MODEL CODE FOR SECURITIES TRANSACTIONS BY DIRECTORS](index=49&type=section&id=MODEL%20CODE%20FOR%20SECURITIES%20TRANSACTIONS%20BY%20DIRECTORS) This section confirms the Company's adoption and directors' compliance with the Model Code for Securities Transactions by Directors of Listed Issuers [Compliance with Model Code](index=49&type=section&id=Compliance%20with%20Model%20Code) The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers, and all directors confirmed compliance during the reporting period - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers, as set out in Appendix 10 of the Listing Rules, as its code of conduct for directors' securities transactions[233](index=233&type=chunk)[237](index=237&type=chunk) - Following specific inquiries by the Company to all directors, all directors confirmed that they had complied with the standards required by the Model Code during the period[233](index=233&type=chunk)[237](index=237&type=chunk) [AUDIT COMMITTEE'S REVIEW](index=49&type=section&id=AUDIT%20COMMITTEE%27S%20REVIEW) This section summarizes the Audit Committee's review of the Group's unaudited interim results and its role in financial reporting and risk management [Audit Committee Review Summary](index=49&type=section&id=Audit%20Committee%20Review%20Summary) The Audit Committee reviewed the Group's 1H2025 unaudited consolidated interim results and this interim report, overseeing financial reporting, risk management, and internal control systems - The Audit Committee has reviewed the Group's 1H2025 unaudited consolidated interim results and this 2025 interim report[234](index=234&type=chunk)[238](index=238&type=chunk) - The Audit Committee comprises one non-executive director and two independent non-executive directors[234](index=234&type=chunk)[238](index=238&type=chunk) - The Audit Committee is responsible for reviewing and monitoring the Company's financial reporting procedures, risk management, and internal control systems[234](index=234&type=chunk)[238](index=238&type=chunk) [CORPORATE INFORMATION](index=50&type=section&id=CORPORATE%20INFORMATION) This section provides essential corporate details, including the Board of Directors, registered office, principal bankers, legal advisors, and independent auditor [Company Details](index=50&type=section&id=Company%20Details) This section provides basic company information, including honorary chairman, board members (executive, non-executive, independent non-executive directors), company secretary, registered office, company website, principal bankers, solicitors, independent auditor, and share registrar - Board members include Executive Directors Liu Xianfu (Chairman and CEO), Li Gang, Qiu Hengda, Yin Jian, Zhang Zheng; Non-executive Directors Yan Zhenming (Non-executive Vice Chairman), Zhou Jing; Independent Non-executive Directors Wu Guodong, Ying Wei, Wang Ganzhi, Lam Lin[239](index=239&type=chunk)[241](index=241&type=chunk) - The Company's registered office and principal place of business are located at 6/F, Block A, Eastern Sea Industrial Building, 29-39 Kwai Cheong Road, Kwai Chung, New Territories, Hong Kong[240](index=240&type=chunk)[241](index=241&type=chunk) - Principal bankers include Bank of China (Hong Kong) Limited, The Hongkong and Shanghai Banking Corporation Limited, Hang Seng Bank Limited, etc. The independent auditor is Shinewing (HK) CPA Limited[240](index=240&type=chunk)[242](index=242&type=chunk) [SHAREHOLDER INFORMATION](index=51&type=section&id=SHAREHOLDER%20INFORMATION) This section provides information relevant to shareholders, including listing details, share trading units, and the financial calendar [Shareholder Details and Calendar](index=51&type=section&id=Shareholder%20Details%20and%20Calendar) This section provides shareholder-related information, including the Company's listing on the Main Board of the Hong Kong Stock Exchange (stock code 420), trading unit of 2,000 shares, and 1,225,026,960 issued shares as of June 30, 2025 - The Company has been listed on the Main Board of The Stock Exchange of Hong Kong Limited since April 20, 1988, with stock code **420**[243](index=243&type=chunk)[245](index=245&type=chunk) - As of June 30, 2025, the number of issued shares was **1,225,026,960**, with a trading unit of **2,000 shares**[243](index=243&type=chunk)[245](index=245&type=chunk) - The 2025 interim results were announced on August 21, 2025, and the 2025 annual results are expected to be announced in late March 2026[244](index=244&type=chunk)[246](index=246&type=chunk)

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8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: 福田實業（集團）有限公司 呈交日期: 2025年9月3日 I. 法定/註冊股本變動 不適用 備註： 本公司並無法定股本及其股本中並無股份面值。 FF301 第 1 頁 共 10 頁 v 1.1.1 FF301 II. 已發行股份及/或庫存股份變動 | 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) | 00420 | 說明 | | | | | | | | | | 已發行股份（不包括庫存股份）數目 | | | 庫存股份數目 | | 已發行股份總數 | | | 上月底結存 | | | | 1,225,026,960 | | 0 | | 1,225,026,960 | | 增加 / 減少 (-) | | | | | | | | | | 本月底結存 | ...

Core Viewpoint - Fook Tin Industrial (00420) reported a mid-year performance for 2025, showing a revenue of approximately HKD 1.937 billion, a year-on-year decrease of 12.7%, while the profit attributable to shareholders turned positive at HKD 30.67 million, compared to a loss previously, with earnings per share at HKD 0.025 [1] Group 1: Financial Performance - Revenue for the first half of 2025 was approximately HKD 1.937 billion, reflecting a year-on-year decline of 12.7% [1] - The profit attributable to shareholders was HKD 30.67 million, indicating a turnaround from a loss to profit [1] - Earnings per share were reported at HKD 0.025 [1] Group 2: Factors Contributing to Performance Improvement - The improvement in performance was primarily due to enhanced customer management, stabilizing existing customers, and acquiring new clients [1] - The company actively reduced procurement costs, which contributed to an increase in overall business gross margin and profit contribution [1] - Implementation of an information system aimed at improving product quality and continuously reducing factory production consumption helped lower production costs [1] - The group has been promoting lean management practices, resulting in further reductions in transportation and labor costs [1] - Active monitoring of inventory and accounts receivable has been undertaken, with efforts to utilize aged inventory and collect various receivables [1]

公告称，业绩改善主要归因于：加强客户管理，稳定老客户，开拓新客户，积极降低采购成本，提升总 体业务毛利和利润贡献;以信息化系统为管理工具，提升产品质量为目标，不断降低工厂生产消耗，压 降生产成本;及集团持续推动精益管理，降本增效，运输费用及人工费用等支出进一步下降;积极开展存 货及应收账款监控工作，积极化用长库龄存货，积极清收各类应收账款。 福田实业(00420)公布2025年中期业绩，营业额约19.37亿港元，同比减少12.7%;公司拥有人应占溢利 3067万港元，同比扭亏为盈;每股盈利2.5港仙。 ...

[CONDENSED CONSOLIDATED FINANCIAL STATEMENTS](index=1&type=section&id=CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) [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, revenue decreased by 12.7% to HK$1,937,026 thousand, but profit for the period significantly increased to HK$35,812 thousand due to cost control and efficiency, with profit attributable to owners turning from loss to HK$30,670 thousand, and basic earnings per share notably improved Key Data from Condensed Consolidated Statement of Profit or Loss | Metric | For the six months ended June 30, 2025 (HK$ thousand) | For the six months ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Revenue | 1,937,026 | 2,219,366 | | Cost of Sales | (1,709,585) | (1,974,552) | | Gross Profit | 227,441 | 244,814 | | Other Income | 40,621 | 36,068 | | Other Gains and Losses | 9,288 | 2,787 | | Distribution and Selling Expenses | (28,904) | (53,494) | | Administrative Expenses | (192,268) | (197,065) | | Finance Costs | (5,235) | (8,014) | | Share of Profit of an Associate | 478 | 737 | | Profit Before Income Tax Expense | 51,421 | 25,833 | | Income Tax Expense | (15,609) | (21,590) | | Profit for the Period | 35,812 | 4,243 | | Profit/(Loss) for the Period Attributable to Owners of the Company | 30,670 | (9,906) | | Profit for the Period Attributable to Non-controlling Interests | 5,142 | 14,149 | | Basic Earnings/(Loss) Per Share (HK cents) | 2.5 | (0.8) | Key Data from Condensed Consolidated Statement of Other Comprehensive Income | Metric | For the six months ended June 30, 2025 (HK$ thousand) | For the six months ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Exchange Differences Arising from Translation of Overseas Operations | 10,851 | (3,237) | | Other Comprehensive Income/(Expense) for the Period | 10,851 | (3,237) | | Total Comprehensive Income for the Period | 46,663 | 1,006 | | Total Comprehensive Income/(Expense) for the Period Attributable to Owners of the Company | 38,632 | (12,498) | | Total Comprehensive Income for the Period Attributable to Non-controlling Interests | 8,031 | 13,504 | [CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION](index=3&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20FINANCIAL%20POSITION) As of June 30, 2025, total assets slightly decreased, with minor reductions in both non-current and current assets; total current and non-current liabilities also slightly decreased, while net assets remained stable, with equity attributable to owners at HK$3,208,845 thousand Key Data from Condensed Consolidated Statement of Financial Position | Metric | As of June 30, 2025 (HK$ thousand) | As of December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Investment Properties | 54,413 | 56,692 | | Property, Plant and Equipment | 1,146,441 | 1,175,999 | | Right-of-use Assets | 200,317 | 191,575 | | Other Intangible Assets | 28,239 | 29,766 | | Interests in an Associate | 26,496 | 26,018 | | Deferred Tax Assets | 37,590 | 38,227 | | **Current Assets** | | | | Inventories | 873,994 | 784,735 | | Trade and Bills Receivables | 806,542 | 802,069 | | Prepayments, Deposits and Other Receivables | 155,781 | 210,366 | | Short-term Bank Deposits | 362,164 | 380,973 | | Bank Balances and Cash | 889,371 | 914,502 | | **Current Liabilities** | | | | Trade and Bills Payables | 601,806 | 562,544 | | Other Payables and Accruals | 240,899 | 268,491 | | Bank Borrowings - Due within One Year | 25,039 | 48,795 | | **Non-current Liabilities** | | | | Deferred Income - Non-current Portion | 65,035 | 67,556 | | Lease Liabilities - Non-current Portion | 118,736 | 111,522 | | Deferred Tax Liabilities | 6,346 | 6,778 | | **Equity** | | | | Share Capital | 889,810 | 889,810 | | Reserves | 2,319,035 | 2,347,779 | | Equity Attributable to Owners of the Company | 3,208,845 | 3,237,589 | | Non-controlling Interests | 226,215 | 218,184 | | Total Equity | 3,435,060 | 3,455,773 | [NOTES](index=5&type=section&id=NOTES) [1. GENERAL INFORMATION](index=5&type=section&id=1.%20GENERAL%20INFORMATION) The company is a Hong Kong-incorporated listed entity, whose 2024 annual consolidated financial statements were submitted under the Companies Ordinance with an unqualified auditor's report - The company has submitted its statutory annual consolidated financial statements for the year ended December 31, 2024, to the Registrar of Companies, with an unqualified independent auditor's report[9](index=9&type=chunk)[10](index=10&type=chunk)[13](index=13&type=chunk) [2. BASIS OF PREPARATION](index=5&type=section&id=2.%20BASIS%20OF%20PREPARATION) The interim condensed consolidated financial statements are prepared in accordance with Appendix D2 of the Listing Rules and HKAS 34 Interim Financial Reporting - The interim condensed consolidated financial statements are prepared in accordance with Appendix D2 of the Listing Rules and HKAS 34[11](index=11&type=chunk)[14](index=14&type=chunk) [3. ACCOUNTING POLICIES](index=5&type=section&id=3.%20ACCOUNTING%20POLICIES) The interim condensed consolidated financial statements are prepared on a historical cost basis, applying the same accounting policies as the 2024 annual consolidated financial statements, with new and unapplied HKFRS amendments not expected to have a significant impact on financial performance - The Group has first applied amendments to HKFRS accounting standards issued by the HKICPA and effective January 1, 2025, which have not had a significant impact on financial performance and position[16](index=16&type=chunk)[17](index=17&type=chunk)[20](index=20&type=chunk) - The Directors anticipate that the application of new and revised HKFRS accounting standards will not have a significant impact on the Group's financial performance and position[19](index=19&type=chunk)[22](index=22&type=chunk) [4. SEASONALITY OF OPERATIONS](index=7&type=section&id=4.%20SEASONALITY%20OF%20OPERATIONS) Due to the seasonal nature of dyed fabric and yarn production and sales, first-half revenue and operating profit are typically lower than the second half, mainly affected by reduced supply during peak Chinese holidays - First-half revenue and operating profit are typically lower than the second half, mainly due to reduced supply of dyed fabrics and yarns during peak Chinese holidays[24](index=24&type=chunk)[29](index=29&type=chunk) [5. SIGNIFICANT EVENTS AND TRANSACTIONS](index=7&type=section&id=5.%20SIGNIFICANT%20EVENTS%20AND%20TRANSACTIONS) For the six months ended June 30, 2024, the Group decided to cease fabric dyeing and finishing production at Jiangyin Fuhui Textile Co., Ltd., retaining only its weaving capacity - The Group decided to cease fabric dyeing and finishing production at Jiangyin Fuhui Textile Co., Ltd., retaining only its weaving capacity[25](index=25&type=chunk)[30](index=30&type=chunk) [6. REVENUE AND SEGMENT INFORMATION](index=7&type=section&id=6.%20REVENUE%20AND%20SEGMENT%20INFORMATION) The Group segments operations by customer location, including Hong Kong, China, Taiwan, Korea, Sri Lanka, Americas, Europe, and other regions; total external sales for H1 2025 were HK$1,937,026 thousand, with China and Sri Lanka as main revenue sources, and manufacturing and sales of dyed fabrics and yarns as the primary product revenue Revenue and Segment Profit by Geographical Region for the six months ended June 30, 2025 | Region | External Sales (HK$ thousand) | Segment Profit (HK$ thousand) | | :--- | :--- | :--- | | Hong Kong | 243,307 | 17,344 | | China | 700,113 | 67,634 | | Taiwan | 65,095 | 7,216 | | Korea | 99,750 | 10,962 | | Sri Lanka | 386,176 | 13,264 | | Americas | 16,481 | 1,813 | | Europe | 41,438 | 3,250 | | Other Regions | 384,666 | 37,836 | | **Total** | **1,937,026** | **159,319** | Revenue by Product for the six months ended June 30, 2025 | Product | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Manufacturing and Sales of Dyed Fabrics and Yarns | 1,690,012 | 1,893,885 | | Manufacturing and Sales of Garments | 247,014 | 325,481 | | **Total** | **1,937,026** | **2,219,366** | [7. FINANCE COSTS](index=9&type=section&id=7.%20FINANCE%20COSTS) For the six months ended June 30, 2025, total finance costs decreased to HK$5,235 thousand from HK$8,014 thousand in the prior period, primarily from bank borrowings and lease liabilities Breakdown of Finance Costs | Item | For the six months ended June 30, 2025 (HK$ thousand) | For the six months ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Bank Borrowings | 1,934 | 4,935 | | Lease Liabilities | 3,301 | 3,079 | | **Total** | **5,235** | **8,014** | [8. Income Tax Expense](index=10&type=section&id=8.%20Income%20Tax%20Expense) For the six months ended June 30, 2025, income tax expense was HK$15,609 thousand, a decrease from HK$21,590 thousand in the prior period, primarily from China, Hong Kong, and other jurisdictions, calculated based on local tax rates Breakdown of Income Tax Expense | Item | For the six months ended June 30, 2025 (HK$ thousand) | For the six months ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | **Current Tax** | | | | Hong Kong | 842 | 824 | | China | 8,283 | 12,246 | | Other Jurisdictions | 6,369 | 9,185 | | **(Over-provision)/Under-provision in Prior Years** | | | | China | 288 | (1,153) | | Other Jurisdictions | (342) | 1,798 | | **Deferred Tax** | | | | Hong Kong | 2,039 | (3,184) | | China | (226) | 1,298 | | Other Jurisdictions | (1,644) | 576 | | **Total** | **15,609** | **21,590** | - Under Hong Kong's two-tiered profits tax regime, eligible subsidiaries are taxed at **8.25%** for the first **HK$2,000,000** of assessable profits and **16.5%** thereafter; Chinese subsidiaries are taxed at **25%**, and Sri Lankan subsidiaries at **30%**[41](index=41&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk) [9. OTHER REVENUE, OTHER GAINS AND LOSSES/PROFIT FOR THE PERIOD](index=11&type=section&id=9.%20OTHER%20REVENUE%2C%20OTHER%20GAINS%20AND%20LOSSES%2FPROFIT%20FOR%20THE%20PERIOD) For the six months ended June 30, 2025, other revenue increased to HK$40,621 thousand, mainly from interest and miscellaneous income, while net other gains and losses were HK$9,288 thousand, primarily due to increased net exchange gains; profit for the period was net of various depreciation, amortization, and employee costs Analysis of Other Revenue | Item | For the six months ended June 30, 2025 (HK$ thousand) | For the six months ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Amortisation of Deferred Income | 2,747 | 2,599 | | Compensation Income | 4,141 | 5,600 | | Government Grants | 877 | 538 | | Interest Income | 13,763 | 14,843 | | Net Rental Income from Investment Properties | 4,206 | 3,826 | | Others | 14,887 | 8,662 | | **Total** | **40,621** | **36,068** | Analysis of Other Gains and Losses | Item | For the six months ended June 30, 2025 (HK$ thousand) | For the six months ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Net Exchange Gains | 16,945 | 4,387 | | Gain on Disposal/Write-off of Property, Plant and Equipment | 1,070 | 3,131 | | Net Reversal of Impairment Loss Provision for Trade and Bills Receivables | (8,727) | (4,731) | | **Total** | **9,288** | **2,787** | Deductions from Profit for the Period | Item | For the six months ended June 30, 2025 (HK$ thousand) | For the six months ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Amortisation of Other Intangible Assets | 1,526 | – | | Depreciation of Investment Properties | 2,494 | 2,549 | | Depreciation of Property, Plant and Equipment | 75,363 | 78,572 | | Impairment of Property, Plant and Equipment | – | 10,767 | | Depreciation of Right-of-use Assets | 17,657 | 13,971 | | Employee Costs (including Directors' Emoluments) | 327,178 | 342,171 | [10. DIVIDENDS](index=13&type=section&id=10.%20DIVIDENDS) For the six months ended June 30, 2025, the Board did not propose an interim dividend; the 2024 final and special dividends totaling HK$67,376 thousand were approved by shareholders Dividends Approved and Recognized as Distributions | Item | For the six months ended June 30, 2025 (HK$ thousand) | For the six months ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | 2024 Final and Special Dividends | 67,376 | 36,751 | - The Board of Directors did not propose an interim dividend for the six months ended June 30, 2025[51](index=51&type=chunk)[53](index=53&type=chunk) [11. EARNINGS/(LOSS) PER SHARE](index=14&type=section&id=11.%20EARNINGS%2F%28LOSS%29%20PER%20SHARE) For the six months ended June 30, 2025, basic earnings per share were 2.5 HK cents, a significant improvement from a loss of 0.8 HK cents per share in the prior period; diluted earnings per share were the same as basic earnings per share due to no potentially dilutive ordinary shares Earnings/(Loss) Per Share Calculation Data | Metric | For the six months ended June 30, 2025 (HK$ thousand) | For the six months ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Profit/(Loss) for the Period Attributable to Owners of the Company | 30,670 | (9,906) | | Weighted Average Number of Ordinary Shares | 1,225,026,960 | 1,225,026,960 | | Basic Earnings/(Loss) Per Share (HK cents) | 2.5 | (0.8) | - Diluted earnings/(loss) per share are equal to basic earnings/(loss) per share, as there were no potentially dilutive ordinary shares issued by the company for the periods ended June 30, 2025, and June 30, 2024[57](index=57&type=chunk)[59](index=59&type=chunk) [12. MOVEMENTS IN PROPERTY, PLANT AND EQUIPMENT](index=15&type=section&id=12.%20MOVEMENTS%20IN%20PROPERTY%2C%20PLANT%20AND%20EQUIPMENT) For the six months ended June 30, 2025, the Group invested HK$60,720 thousand in property, plant and equipment to expand and upgrade production facilities; management reviewed the recoverable amounts of related assets and found no impairment losses - For the six months ended June 30, 2025, the Group's expenditure on property, plant and equipment was **HK$60,720 thousand**, used for expanding and upgrading production facilities[60](index=60&type=chunk)[63](index=63&type=chunk) - Management reviewed the recoverable amounts of related property, plant and equipment and right-of-use assets under cash-generating units and found no impairment losses (impairment loss of HK$10,767 thousand was recognized on June 30, 2024)[61](index=61&type=chunk)[62](index=62&type=chunk)[64](index=64&type=chunk) [13. MOVEMENTS IN RIGHT-OF-USE ASSETS AND LEASE LIABILITIES](index=16&type=section&id=13.%20MOVEMENTS%20IN%20RIGHT-OF-USE%20ASSETS%20AND%20LEASE%20LIABILITIES) As of June 30, 2025, the carrying value of right-of-use assets was HK$200,317 thousand and lease liabilities was HK$145,553 thousand; during the period, right-of-use assets and lease liabilities increased by HK$33,294 thousand due to new lease agreements and decreased by HK$6,333 thousand due to lease term modifications - As of June 30, 2025, the carrying values of right-of-use assets for leased land and buildings, equipment, and machinery were **HK$200,020 thousand**, **HK$297 thousand**, and zero, respectively[65](index=65&type=chunk)[71](index=71&type=chunk) - For the six months ended June 30, 2025, the Group recognized an increase in right-of-use assets of **HK$33,294 thousand** due to new lease agreements[66](index=66&type=chunk)[71](index=71&type=chunk) - For the six months ended June 30, 2025, lease liabilities decreased by **HK$6,333 thousand** due to lease term modifications, with right-of-use assets adjusted by the same amount[69](index=69&type=chunk)[72](index=72&type=chunk) [14. INVENTORIES](index=16&type=section&id=14.%20INVENTORIES) As of June 30, 2025, total inventories amounted to HK$873,994 thousand, an increase from December 31, 2024, primarily comprising raw materials, work-in-progress, and finished goods Breakdown of Inventories | Item | As of June 30, 2025 (HK$ thousand) | As of December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Spare Parts | 22,716 | 24,879 | | Raw Materials | 292,910 | 217,545 | | Work-in-progress | 314,297 | 307,211 | | Finished Goods | 244,071 | 235,100 | | **Total** | **873,994** | **784,735** | [15. TRADE AND BILLS RECEIVABLES/PREPAYMENTS, DEPOSITS AND OTHER RECEIVABLES](index=17&type=section&id=15.%20TRADE%20AND%20BILLS%20RECEIVABLES%2FPREPAYMENTS%2C%20DEPOSITS%20AND%20OTHER%20RECEIVABLES) As of June 30, 2025, net trade and bills receivables were HK$806,542 thousand, with a primary credit period of 30 to 60 days; other receivables included recoverable VAT, prepayments, and deposits, with land expropriation compensation received on January 2, 2025 Aging Analysis of Trade and Bills Receivables | Aging | As of June 30, 2025 (HK$ thousand) | As of December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Within 1 month | 410,857 | 338,956 | | 1 to 2 months | 191,444 | 254,840 | | 2 to 3 months | 132,118 | 103,191 | | Over 3 months | 121,286 | 145,273 | | Less: Provision for Expected Credit Losses | (49,163) | (40,191) | | **Total** | **806,542** | **802,069** | - As of June 30, 2025, other receivables included recoverable VAT of **HK$9,653 thousand**, prepayments, deposits, and other receivables of **HK$146,128 thousand**; land expropriation compensation of **HK$96,791 thousand** was received on January 2, 2025[78](index=78&type=chunk)[79](index=79&type=chunk)[81](index=81&type=chunk) [16. TRADE AND BILLS PAYABLES](index=18&type=section&id=16.%20TRADE%20AND%20BILLS%20PAYABLES) As of June 30, 2025, total trade and bills payables amounted to HK$601,806 thousand, an increase from December 31, 2024, primarily comprising trade payables and bills payables Breakdown of Trade and Bills Payables | Item | As of June 30, 2025 (HK$ thousand) | As of December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade Payables | 500,187 | 494,187 | | Bills Payables | 101,619 | 68,357 | | **Total** | **601,806** | **562,544** | Aging Analysis of Trade and Bills Payables | Aging | As of June 30, 2025 (HK$ thousand) | As of December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Within 1 month | 399,385 | 346,916 | | 1 to 2 months | 101,675 | 122,921 | | 2 to 3 months | 43,619 | 40,917 | | Over 3 months | 57,127 | 51,790 | | **Total** | **601,806** | **562,544** | [17. OTHER PAYABLES AND ACCRUALS](index=19&type=section&id=17.%20OTHER%20PAYABLES%20AND%20ACCRUALS) As of June 30, 2025, total other payables and accruals amounted to HK$240,899 thousand, a decrease from December 31, 2024 Breakdown of Other Payables and Accruals | Item | As of June 30, 2025 (HK$ thousand) | As of December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Other Payables | 149,823 | 155,281 | | Accruals | 91,076 | 113,210 | | **Total** | **240,899** | **268,491** | [18. BANK BORROWINGS](index=20&type=section&id=18.%20BANK%20BORROWINGS) For the six months ended June 30, 2025, the Group obtained new bank borrowings of HK$76,672 thousand and repaid HK$100,433 thousand, primarily for working capital; bank borrowings were mainly floating and fixed-rate, with an average effective annual interest rate of 3.67%, all unsecured and compliant with covenants - For the six months ended June 30, 2025, the Group obtained new bank borrowings of **HK$76,672 thousand** and repaid **HK$100,433 thousand**, primarily for working capital[88](index=88&type=chunk)[93](index=93&type=chunk) - The Group's bank borrowings are mainly floating and fixed-rate, with an average effective annual interest rate of **3.67%** (December 31, 2024: 6.24%)[89](index=89&type=chunk)[93](index=93&type=chunk) - For the six months ended June 30, 2025, and the year ended December 31, 2024, the Group complied with all covenant ratios[90](index=90&type=chunk)[91](index=91&type=chunk)[94](index=94&type=chunk) [19. SHARE CAPITAL](index=20&type=section&id=19.%20SHARE%20CAPITAL) As of June 30, 2025, the company had 1,225,026,960 issued and fully paid ordinary shares, with share capital of HK$889,810 thousand, and ordinary shares have no par value Breakdown of Share Capital | Item | As of June 30, 2025 (Number of Shares) | As of June 30, 2025 (HK$ thousand) | As of December 31, 2024 (Number of Shares) | As of December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | | Ordinary Shares, Issued and Fully Paid | 1,225,026,960 | 889,810 | 1,225,026,960 | 889,810 | - In accordance with Section 135 of the Hong Kong Companies Ordinance (Cap. 622), the company's ordinary shares have no par value[96](index=96&type=chunk) [MANAGEMENT DISCUSSION AND ANALYSIS](index=21&type=section&id=MANAGEMENT%20DISCUSSION%20AND%20ANALYSIS) [BUSINESS REVIEW](index=21&type=section&id=BUSINESS%20REVIEW) In H1 2025, despite geopolitical tensions, global economic downturn, and trade uncertainties, the Group significantly improved operating efficiency through enhanced customer management, reduced procurement costs, strengthened cost control, and lean management; revenue decreased by 12.7%, but profit attributable to owners turned from loss to profit, and pre-tax profit grew by 99.1% - In H1 2025, geopolitical tensions, increased global economic downside risks, rising trade uncertainties, and accelerated relocation of the international textile and apparel supply chain from China intensified[97](index=97&type=chunk)[100](index=100&type=chunk) - The Group implemented a series of strategies and measures, including strengthening customer management, reducing procurement costs, enhancing cost control, promoting lean and total quality management, and deepening internal operational management reforms[101](index=101&type=chunk)[102](index=102&type=chunk)[103](index=103&type=chunk) Key Financial Performance Improvements in H1 2025 | Metric | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | Change | | :--- | :--- | :--- | :--- | | Total Revenue | 1,937,026 | 2,219,366 | -12.7% | | Profit/(Loss) Attributable to Owners of the Company | 30,670 | (9,906) | Turned from loss to profit | | Profit Before Tax | 51,421 | 25,833 | +99.1% | | Basic Earnings/(Loss) Per Share (HK cents) | 2.5 | (0.8) | +412.5% | | Gross Profit Margin | 11.7% | 11.0% | +0.7% | | Finance Costs | 5,235 | 8,014 | -34.7% | | Cost of Sales | 1,709,585 | 1,974,552 | -13.4% | [PRODUCTION AND SALES OF DYED FABRICS AND YARNS](index=23&type=section&id=Production%20and%20Sales%20of%20Dyed%20Fabrics%20and%20Yarns) Manufacturing and sales of dyed fabrics and yarns is the Group's core business, contributing approximately HK$1,690,012 thousand in revenue in H1 2025, accounting for 87.2% of total revenue - The Group's core business, manufacturing and sales of dyed fabrics and yarns, generated approximately **HK$1,690,012 thousand** in revenue, accounting for **87.2%** of the Group's total revenue[112](index=112&type=chunk)[116](index=116&type=chunk) [PRODUCTION AND SALES OF GARMENTS](index=23&type=section&id=Production%20and%20Sales%20of%20Garments) In H1 2025, revenue from manufacturing and sales of garments was approximately HK$247,014 thousand, accounting for 12.8% of the Group's total revenue - In H1 2025, revenue from manufacturing and sales of garments was approximately **HK$247,014 thousand**, accounting for **12.8%** of the Group's total revenue[113](index=113&type=chunk)[117](index=117&type=chunk) [DIVIDEND](index=23&type=section&id=Dividend) The Board decided not to declare an interim dividend for the six months ended June 30, 2025; given the Group's strong cash flow and expected H2 profit, a final dividend for the twelve months ended December 31, 2025, is anticipated, maintaining the payout ratio where possible - The Board of Directors decided and announced not to declare any interim dividend for the six months ended June 30, 2025[114](index=114&type=chunk)[118](index=118&type=chunk) - After reviewing the Group's strong cash flow as of June 30, 2025, and anticipating a high probability of profit in H2 2025, it is expected that a final dividend for the twelve months ended December 31, 2025, will be declared, maintaining the payout ratio as much as possible[114](index=114&type=chunk)[118](index=118&type=chunk) [AWARDS AND CERTIFICATIONS](index=24&type=section&id=Awards%20and%20Certifications) In H1 2025, the Group and its subsidiaries received multiple awards and certifications, including Global Recycled Standard, Organic Content Standard, Global Organic Textile Standard, US Cotton Trust Protocol membership, Oeko-Tex Standard 100, Higg Index FEM self-assessment, and ISO environmental and energy management certifications, demonstrating commitment to sustainability and quality - The Group and its subsidiaries obtained multiple international certifications in H1 2025, including Global Recycled Standard (GRS 4.0), Organic Content Standard (OCS 3.0), Global Organic Textile Standard (GOTS 6.0/7.0), and US Cotton Trust Protocol membership certificate[120](index=120&type=chunk)[121](index=121&type=chunk) - Awards and certifications also included Oeko-Tex Standard 100 certificate, Higg Facility Environmental Module self-assessment certificate, Dongguan City Clean Production Enterprise Award, Dongguan City "Zero-Waste Factory" plaque, and ISO14001 Environmental Management System certification, among others[120](index=120&type=chunk)[121](index=121&type=chunk)[122](index=122&type=chunk)[123](index=123&type=chunk) [OUTLOOK](index=28&type=section&id=OUTLOOK) [INDUSTRY OUTLOOK AND STRATEGIES](index=28&type=section&id=Industry%20Outlook%20and%20Strategies) Looking ahead, the macroeconomic and textile and apparel industry outlook remains challenging, with global supply chains rapidly restructuring; despite significant operational challenges, the Group is cautiously optimistic for H2, continuing to drive development through technological innovation, market expansion, internationalization, accelerated production technology upgrades, strengthened lean management, improved product quality, and strict cost control - The macroeconomic and textile and apparel industry outlook is not optimistic, with persistent global economic growth uncertainties and accelerating restructuring of the global textile and apparel supply chain[125](index=125&type=chunk)[128](index=128&type=chunk) - The Group maintains a relatively cautious optimistic outlook for H2 performance, continuing to drive enterprise development through technological innovation, market expansion, increased operating scale, systematic promotion of international operations, accelerated progress in informatization, automation, intelligentization, and green production technology upgrades, strengthened lean management, improved product quality, streamlined organizational structure, and strict control of costs and expenses[125](index=125&type=chunk)[128](index=128&type=chunk) [OUR APPRECIATION](index=28&type=section&id=OUR%20APPRECIATION) The Group extends sincere gratitude to all shareholders, customers, business partners, suppliers, and employees for their continued support and contributions amidst increasing economic uncertainty - The Group extends its gratitude to all shareholders, customers, business partners, and suppliers for their continued support amidst increasing economic uncertainty[127](index=127&type=chunk)[130](index=130&type=chunk) - The Group also appreciates the dedication, commitment, and contributions of all employees to its success[127](index=127&type=chunk)[130](index=130&type=chunk) [FINANCIAL REVIEW](index=29&type=section&id=FINANCIAL%20REVIEW) [KEY OPERATING AND FINANCIAL INDICATORS](index=29&type=section&id=Key%20Operating%20and%20Financial%20Indicators) The Group's key operating and financial indicators for H1 2025 show significant profitability improvement despite decreased revenue, with better gross profit and EBITDA margins; asset efficiency saw slight increases in inventory and receivables turnover days Income Statement Items (HK$ thousand) | Metric | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Revenue | 1,937,026 | 2,219,366 | | Gross Profit | 227,441 | 244,814 | | EBITDA | 148,556 | 125,557 | | Profit for the Period | 35,812 | 4,243 | | Profit/(Loss) Attributable to Owners of the Company | 30,670 | (9,906) | | Basic Earnings/(Loss) Per Share (HK cents) | 2.5 | (0.8) | Profitability Ratios (%) | Metric | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Gross Profit Margin | 11.7% | 11.0% | | EBITDA Margin | 7.7% | 5.7% | | Distribution and Selling Expenses to Revenue Ratio | 1.5% | 2.4% | | Administrative Expenses to Revenue Ratio | 9.9% | 8.9% | | Finance Costs to Revenue Ratio | 0.3% | 0.4% | Asset Efficiency and Ratios | Metric | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Inventory Turnover Days | 93 | 79 | | Trade and Bills Receivables Turnover Days | 75 | 73 | | Trade and Bills Payables Turnover Days | 64 | 62 | | Current Ratio | 3.2 | 3.2 | | Net Debt/EBITDA Ratio (Annualized) | (8.3) | (4.6) | | Total Liabilities/Equity Attributable to Owners of the Company | 0.4 | 0.4 | [REVENUE](index=30&type=section&id=Revenue) For the six months ended June 30, 2025, the Group's revenue was approximately HK$1,937,026 thousand, a 12.7% decrease from the prior period, with manufacturing and sales of dyed fabrics and yarns accounting for 87.2% and garments for 12.8% of total revenue - The Group's revenue for the six months ended June 30, 2025, was approximately **HK$1,937,026 thousand**, a **12.7% decrease** from the prior period[137](index=137&type=chunk)[139](index=139&type=chunk)[143](index=143&type=chunk) Revenue by Business Segment | Business Segment | H1 2025 Contribution | | :--- | :--- | | Manufacturing and Sales of Dyed Fabrics and Yarns | 87.2% | | Manufacturing and Sales of Garments | 12.8% | [COST OF SALES AND GROSS PROFIT](index=30&type=section&id=Cost%20of%20Sales%20and%20Gross%20Profit) For the six months ended June 30, 2025, the Group's cost of sales was approximately HK$1,709,585 thousand, with an overall gross profit margin of 11.7%, an improvement from 11.0% in the prior period, mainly due to a greater decrease in production costs than in revenue - The Group's overall cost of sales for the six months ended June 30, 2025, was approximately **HK$1,709,585 thousand**, with an overall gross profit margin of **11.7%** (H1 2024: 11.0%)[142](index=142&type=chunk)[146](index=146&type=chunk) - The improvement in gross profit margin was primarily due to a greater decrease in production costs than in revenue[143](index=143&type=chunk)[146](index=146&type=chunk) [DISTRIBUTION AND SELLING EXPENSES](index=30&type=section&id=Distribution%20and%20Selling%20Expenses) For the six months ended June 30, 2025, the Group's distribution and selling expenses were approximately HK$28,904 thousand, accounting for 1.5% of total revenue, a decrease from 2.4% in the prior period Distribution and Selling Expenses | Metric | For the six months ended June 30, 2025 (HK$ thousand) | For the six months ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Distribution and Selling Expenses | 28,904 | 53,494 | | Percentage of Revenue | 1.5% | 2.4% | [ADMINISTRATIVE EXPENSES](index=31&type=section&id=Administrative%20Expenses) For the six months ended June 30, 2025, the Group's administrative expenses were approximately HK$192,268 thousand, accounting for 9.9% of total revenue, a slight increase from 8.9% in the prior period Administrative Expenses | Metric | For the six months ended June 30, 2025 (HK$ thousand) | For the six months ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Administrative Expenses | 192,268 | 197,065 | | Percentage of Revenue | 9.9% | 8.9% | [EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (EBITDA)](index=31&type=section&id=Earnings%20before%20Interest%2C%20Tax%2C%20Depreciation%20and%20Amortisation%20%28EBITDA%29) For the six months ended June 30, 2025, the Group's EBITDA was approximately HK$148,556 thousand, with an EBITDA margin of 7.7%, an increase from 5.7% in the prior period EBITDA | Metric | For the six months ended June 30, 2025 (HK$ thousand) | For the six months ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | EBITDA | 148,556 | 125,557 | | EBITDA Margin | 7.7% | 5.7% | [FINANCE COSTS](index=31&type=section&id=Finance%20Costs) For the six months ended June 30, 2025, the Group's finance costs were approximately HK$5,235 thousand, accounting for 0.3% of total revenue, a decrease from 0.4% in the prior period Finance Costs | Metric | For the six months ended June 30, 2025 (HK$ thousand) | For the six months ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Finance Costs | 5,235 | 8,014 | | Percentage of Revenue | 0.3% | 0.4% | [CAPITAL EXPENDITURE](index=31&type=section&id=Capital%20Expenditure) In H1 2025, the Group invested approximately HK$60,720 thousand in property, plant and equipment; capital commitments primarily for purchasing property, plant and equipment amounted to approximately HK$36,504 thousand - During the review period, the Group invested approximately **HK$60,720 thousand** to increase property, plant and equipment[151](index=151&type=chunk)[156](index=156&type=chunk) - As of June 30, 2025, the Group's contracted capital commitments for the purchase of property, plant and equipment amounted to approximately **HK$36,504 thousand**[151](index=151&type=chunk)[156](index=156&type=chunk) [INCOME TAX EXPENSE](index=31&type=section&id=Income%20Tax%20Expense) For the six months ended June 30, 2025, the Group's income tax expense was approximately HK$15,609 thousand, a decrease from the prior period Income Tax Expense | Metric | For the six months ended June 30, 2025 (HK$ thousand) | For the six months ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Income Tax Expense | 15,609 | 21,590 | [LIQUIDITY AND FINANCIAL RESOURCES](index=32&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group's net assets were approximately HK$3,435,060 thousand; funding needs are met primarily through operating cash flow and bank borrowings; bank balances and cash totaled HK$1,251,535 thousand, mainly denominated in HKD, USD, and RMB; the Group complied with all major bank financial covenants Key Financial Position Data of the Group (HK$ thousand) | Metric | As of June 30, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | Non-current Assets | 1,495,112 | 1,518,322 | | Current Assets | 3,090,409 | 3,096,296 | | Total Assets | 4,585,521 | 4,614,618 | | Current Liabilities | 960,344 | 972,989 | | Non-current Liabilities | 190,117 | 185,856 | | Total Liabilities | 1,150,461 | 1,158,845 | | Net Assets | 3,435,060 | 3,455,773 | - As of June 30, 2025, the Group's bank balances and cash (including short-term bank deposits) totaled **HK$1,251,535 thousand**, primarily denominated in HKD, USD, and RMB[160](index=160&type=chunk)[161](index=161&type=chunk) Key Financial Covenant Ratios | Metric | As of June 30, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | Consolidated Net Tangible Assets | 3,094,598千港元 | 3,118,670千港元 | | Consolidated Total Bank Liabilities to Consolidated Net Tangible Assets Ratio | 0.0 | 0.0 | | Consolidated EBITDA to Consolidated Interest Expense Ratio | 28.4 | 20.9 | | Consolidated Current Assets to Consolidated Current Liabilities Ratio | 3.2 | 3.2 | | Consolidated Capital Expenditure | 60,720千港元 | 174,737千港元 | [RISK MANAGEMENT](index=33&type=section&id=Risk%20Management) The Group adheres to stringent and prudent risk management policies, closely monitoring foreign exchange (HKD, USD, RMB) and interest rate risks; bank borrowings are primarily floating and fixed-rate, with an average effective annual interest rate of 3.67%, and appropriate measures will continue to be taken to mitigate risks - The Group's sales and raw material purchases are primarily denominated in HKD, USD, and RMB, with main production bases in China, thus involving foreign exchange risk arising from RMB[164](index=164&type=chunk)[167](index=167&type=chunk) - The Group's bank borrowings are denominated in HKD and RMB, with interest primarily calculated at floating and fixed rates; during the review period, the average effective annual interest rate for the Group's bank borrowings was **3.67%** (December 31, 2024: 6.24% per annum)[165](index=165&type=chunk)[167](index=167&type=chunk) [OTHER CORPORATE INFORMATION](index=34&type=section&id=OTHER%20CORPORATE%20INFORMATION) [EMPLOYEES AND REMUNERATION POLICIES](index=34&type=section&id=EMPLOYEES%20AND%20REMUNERATION%20POLICIES) As of June 30, 2025, the Group had approximately 5,600 full-time employees; remuneration policies are based on employee performance and regional salary trends, with regular training and education subsidies provided - As of June 30, 2025, the Group had approximately **5,600** full-time employees (June 30, 2024: approximately 5,700 employees)[168](index=168&type=chunk)[174](index=174&type=chunk) - The Group's remuneration policy is formulated and regularly reviewed based on individual employee performance and regional salary trends, providing regular training courses and subsidies for further education programs to employees[168](index=168&type=chunk)[169](index=169&type=chunk)[174](index=174&type=chunk) [PURCHASE, SALE AND REDEMPTION OF THE COMPANY'S LISTED SECURITIES](index=34&type=section&id=PURCHASE%2C%20SALE%20AND%20REDEMPTION%20OF%20THE%20COMPANY%27S%20LISTED%20SECURITIES) In H1 2025, neither the company nor its subsidiaries engaged in any redemption, purchase, or sale activities of its listed securities - In H1 2025, the company did not redeem its listed securities, nor did the company or its subsidiaries purchase or sell such securities[170](index=170&type=chunk)[175](index=175&type=chunk) [CORPORATE GOVERNANCE CODE](index=34&type=section&id=CORPORATE%20GOVERNANCE%20CODE) The company has complied with the Corporate Governance Code in Appendix 14 of the Listing Rules, except for code provision C.2.1 where the Chairman and CEO roles are held by the same person; the Board believes this arrangement allows for more efficient overall strategy planning, with power balance ensured by experienced Board members - The company has applied and consistently complied with the principles, all mandatory disclosure requirements, and code provisions of the Corporate Governance Code set out in Appendix 14 of the Listing Rules, except for code provision C.2.1[171](index=171&type=chunk)[176](index=176&type=chunk) - Since April 1, 2023, Mr. Liu Xianfu, the Chairman and Executive Director, has also served as the company's Chief Executive Officer, which deviates from the requirements of code provision C.2.1[171](index=171&type=chunk)[176](index=176&type=chunk) - The Board believes that having the same individual serve as both Chairman and Chief Executive Officer allows the Group to plan overall strategies and achieve budget targets more efficiently, with the balance of power fully ensured by the Board[171](index=171&type=chunk)[172](index=172&type=chunk)[176](index=176&type=chunk) [MODEL CODE FOR SECURITIES TRANSACTIONS BY DIRECTORS](index=35&type=section&id=MODEL%20CODE%20FOR%20SECURITIES%20TRANSACTIONS%20BY%20DIRECTORS) The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers in Appendix 10 of the Listing Rules, and all directors confirmed compliance during the period - The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix 10 of the Listing Rules, and all directors have confirmed their compliance with the required standards of the Model Code during the period[178](index=178&type=chunk)[181](index=181&type=chunk) [AUDIT COMMITTEE'S REVIEW](index=35&type=section&id=AUDIT%20COMMITTEE%27S%20REVIEW) The company's Audit Committee has reviewed the Group's unaudited consolidated interim results for H1 2025 and this interim report, responsible for reviewing and monitoring financial reporting, risk management, and internal control systems - The Audit Committee, comprising one non-executive director and two independent non-executive directors, has reviewed the Group's unaudited consolidated interim results for H1 2025 and this 2025 Interim Report[179](index=179&type=chunk)[182](index=182&type=chunk) [PUBLICATION OF 2025 INTERIM RESULTS ANNOUNCEMENT AND INTERIM REPORT](index=35&type=section&id=PUBLICATION%20OF%202025%20INTERIM%20RESULTS%20ANNOUNCEMENT%20AND%20INTERIM%20REPORT) This results announcement has been published on the company's and HKEX websites; the 2025 Interim Report, containing all information required by the Listing Rules, will be dispatched to shareholders and published on relevant websites in due course - This results announcement has been published on the company's website (www.fshl.com) and the HKEX website (www.hkexnews.hk)[180](index=180&type=chunk)[183](index=183&type=chunk) - The company's 2025 Interim Report, containing all information required by the Listing Rules, will be dispatched to shareholders and published on the company's and HKEX websites in the format required by the Listing Rules in due course[180](index=180&type=chunk)[183](index=183&type=chunk)

Group 1: Company Earnings - PCCW (00008.HK) reported a revenue of HKD 18.922 billion for the first half, a year-on-year increase of 7%, with a net loss of HKD 0.445 billion, narrowing by 4% [1] - Xinyi Solar (00968.HK) recorded a revenue of HKD 10.932 billion, a decrease of 6.5% year-on-year, with a net profit of HKD 0.746 billion, down 58.8% [2] - Xinyi Glass (00868.HK) had a revenue of HKD 9.821 billion, a year-on-year decrease of 9.7%, with a net profit of HKD 1.013 billion, down 59.6% [3] - Xinyi Energy (03868.HK) reported a revenue of HKD 1.21 billion, an increase of 7.7% year-on-year, with a net profit of HKD 0.45 billion, up 23.4% [4] - DTXS Silk Road Investment (02510.HK) issued a profit warning, expecting a mid-term net profit of approximately USD 180-200 million, a year-on-year increase of about 220% to 255% [5] - Lianhua Supermarket (00980.HK) issued a profit warning, expecting a mid-term net profit of approximately HKD 25-55 million [6] - Tibet Water Resources (01115.HK) issued a profit warning, expecting a mid-term net profit of approximately HKD 36 million, a year-on-year increase of about 300% [7] - Foton Motor (00420.HK) issued a profit warning, expecting a mid-term net profit of HKD 30.7 million, turning from loss to profit [8] - Hong Kong Travel (00308.HK) issued a profit warning, expecting a mid-term net loss exceeding HKD 70 million, turning from profit to loss [9] - Poly Property Group (00119.HK) issued a profit warning, expecting a mid-term net profit to decline by 40%-50% year-on-year [10] - Kefu Shan Group Holdings (08512.HK) issued a profit warning, expecting a mid-term net profit to decrease to approximately HKD 43-47 million [11] - Mobi Development (00947.HK) issued a profit warning, expecting a mid-term net loss of approximately HKD 32 million [12] - Changmao Biochemical Engineering (00954.HK) issued a profit warning, expecting a mid-term net loss of approximately HKD 24-27 million [13] - Yunyou Holdings (00484.HK) issued a profit warning, expecting a mid-term net loss to increase to approximately HKD 21 million [14] - Weiya Li (00854.HK) issued a profit warning, expecting a mid-term net profit of approximately HKD 15-25 million, turning from loss to profit [15] Group 2: Automotive Sales - BYD Company (01211.HK) reported sales of approximately 2.4903 million new energy vehicles in the first seven months, a year-on-year increase of 27.35% [16] - Great Wall Motors (02333.HK) reported total vehicle sales of approximately 674,200 units in the first seven months, a year-on-year increase of 3.57% [17] - Li Auto (02015.HK) delivered 30,731 new vehicles in July [18] - Geely Automobile (00175.HK) reported total vehicle sales of 237,700 units in July, a year-on-year increase of approximately 58% [19] Group 3: Company News - Sinopec Engineering (02386.HK) signed a front-end engineering design (FEED) contract for a large green hydrogen project in Yanbu, Saudi Arabia, with a contract value expected to reach several billion USD [20] - InnoCare Pharma (02577.HK) partnered with NVIDIA to jointly promote the large-scale implementation of 800 VDC power architecture in AI data centers [21] - Zijin Mining (02899.HK) received parliamentary approval for the mining lease of the Akyem gold mine in Ghana, with a total transaction value of USD 1 billion [22] - Codex-B (02487.HK) received approval from the Hong Kong Department of Health for the listing of CU-40102 (topical finasteride spray) for the treatment of androgenetic alopecia [23] - Mixue Group (02097.HK) subscribed to a wealth management product from Pudong Development Bank, involving an investment of HKD 300 million [24] Group 4: Buyback Activities - Hang Seng Bank (00011.HK) repurchased 200,000 shares at a cost of approximately HKD 22.5922 million, with repurchase prices ranging from HKD 112.4 to 114.3 [25] - Vitasoy International (00345.HK) repurchased 1.844 million shares at a cost of approximately HKD 16.89 million, with repurchase prices ranging from HKD 9.14 to 9.17 [26]