Core Viewpoint - Foton Industrial (00420.HK) announced significant changes in its executive leadership, effective November 17, 2025, with Liu Xianfu resigning and new appointments for key positions [1] Group 1: Leadership Changes - Liu Xianfu will resign from his roles as Executive Director, Chairman of the Board, CEO, Chairman of the Nomination Committee, and authorized representative under the Hong Kong Stock Exchange Listing Rules due to personal and other business commitments, effective November 17, 2025 [1] - Qi Qiang has been appointed as the new Executive Director, Chairman of the Board, Chairman of the Nomination Committee, and authorized representative, effective November 17, 2025 [1] - Li Gang has been appointed as the new CEO, effective November 17, 2025 [1]

Core Viewpoint - Foton Industrial (00420) announced significant changes in its executive leadership, with Liu Xianfu resigning from multiple key positions effective November 17, 2025, and new appointments made for the roles of executive director, chairman, and CEO [1] Group 1 - Liu Xianfu has resigned as executive director, chairman of the board, CEO, and chairman of the nomination committee, effective November 17, 2025, to focus on personal and other business commitments [1] - Qi Qiang has been appointed as the new executive director, chairman of the board, chairman of the nomination committee, and authorized representative, effective November 17, 2025 [1] - Dr. Li Gang has been appointed as the new CEO, effective November 17, 2025 [1]

（於香港註冊成立的有限公司）（股份代號：420） 董事名單及其角色與職能 福田實業（集團）有限公司董事（「董事」）會（「董事會」）成員載列如下，自2025年 11月17日起生效。 董事會轄下設立 3 個委員會。下表提供董事會成員在該等委員會中所擔任的職位。自2025 年11月17日起生效。 | | 董事會委員會 | 審核委員會 | 薪酬委員會 | 提名委員會 | | --- | --- | --- | --- | --- | | 董事 | | | | | | 郗強先生 | | | | C | | 李剛博士 | | | M | | | 嚴震銘博士 | | M | | | | 伍國棟先生 | | C | M | | | 應偉先生 | | | C | M | | 王幹芝先生 | | M | | | | 林琳博士 | | | | M | 註: C： 有關委員會的主席 M： 有關委員會的成員 執行董事 郗強先生 （ 主席 ） 李剛博士 （ 行政總裁 ） 邱恒達先生 尹堅先生 張正先生 非執行董事 嚴震銘博士 （ 非執行副主席 ） 周靜女士 獨立非執行董事 伍國棟先生 應偉先生 王幹芝先生 林琳博士 香港，2025年11 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不發表任何 聲明，並明確表示，概不就因本公告全部或任何部分內容產生或因依賴該等內容而引致的任何損失承擔任何責任。 （於香港註冊成立的有限公司）（股份代號：420） (1) 執行董事、董事會主席、行政總裁、 提名委員會主席及授權代表辭任； (2) 委任執行董事、董事會主席、 福田實業（集團）有限公司（「本公司」，連同其附屬公司合稱「本集團」）董事（「董 事」）會（「董事會」）謹此宣佈： ____________________________________________________________________________________ ______________________________________________________________________________________________________ (1) 劉賢福先生（「劉先生」）因希望投入更多時間處理其個人及其他業務承擔而已辭 任本公司執行董事、董事會主席、行政總裁 (「行政總裁」)、提名委員會主席及香 港聯合交 ...

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10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11月4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 (A). 股份期權（根據發行人的股份期權計劃） 不適用 第 3 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, ...

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, ...

Core Viewpoint - The transfer of 15% equity in Jiangsu Wuyang Self-Control Technology Co., Ltd. from current controlling shareholders to Shenzhen Gao Wu Excellence marks a significant change in the company's ownership structure, with implications for its governance and future strategic direction [2][3]. Group 1: Transaction Details - The agreement involves the transfer of 15% equity, with Hou Youfu transferring 8.44% and Cai Min transferring 6.56% of the total share capital [2]. - The total transaction price is 675 million yuan, translating to an approximate share price of 4.03 yuan [2]. - Following the transaction, Gao Wu Excellence will hold 15% of the shares, becoming the new controlling shareholder, with Yao Xiaochun as the actual controller [2][3]. Group 2: Gao Wu Excellence Profile - Gao Wu Excellence was established on August 9, 2024, with a registered capital of 552 million yuan, located in Nanshan District, Shenzhen [2]. - The company operates in fields such as intelligent robotics research and development, automotive parts manufacturing, and industrial control systems [2]. Group 3: Funding and Financial Structure - Gao Wu Excellence has received an investment of 337.5 million yuan from Guangdong Zhongtai Industrial Technology Co., Ltd. and has obtained a bank project acquisition loan intention letter, with financing not exceeding 60% of the transaction price [2]. - The acquisition funds will come from self-owned or self-raised sources, ensuring compliance with regulations regarding the acquisition of listed companies [2]. Group 4: Governance Changes - Post-acquisition, Wuyang Self-Control will undergo a board restructuring, with a new board consisting of 9 directors, including at least 4 nominated by Gao Wu Excellence [4]. - Gao Wu Excellence will also nominate all independent directors and the chairman of the board, and it commits to not transferring its shares in Wuyang Self-Control within 18 months after the acquisition [4]. Group 5: Strategic Intent - Gao Wu Excellence aims to leverage its control over Wuyang Self-Control to enhance the company's business development, profitability, and risk resilience, ultimately benefiting all shareholders [4]. - As of the announcement date, Gao Wu Excellence has no immediate plans to change Wuyang Self-Control's main business, undergo significant asset restructuring, or alter employee hiring plans and dividend policies [4]. Group 6: Shareholder Intentions - Current shareholders Hou Youfu and Cai Min indicated that the share reduction is primarily due to personal financial needs and capital planning, with the possibility of further equity adjustments in the next 12 months [5].

（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)