[Interim Condensed Consolidated Financial Statements](index=1&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Statements) [Interim Condensed Consolidated Income Statement](index=1&type=section&id=Interim%20Condensed%20Consolidated%20Income%20Statement) The Group's loss before tax and loss for the period for the six months ended June 30, 2025, narrowed due to significantly reduced finance costs, despite a decrease in total revenue Interim Condensed Consolidated Income Statement Key Data | Metric | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Total Revenue | 10,726 | 12,249 | | Cost of Inventories Sold | (3,403) | (4,342) | | Other Income | 2,107 | 3,108 | | Other Gains | – | 82 | | Employee Benefit Expenses | (6,038) | (5,383) | | Other Operating Expenses | (6,826) | (8,761) | | Finance Costs | (7,791) | (13,075) | | Share of Loss of Joint Ventures | (1,171) | (1,946) | | Loss Before Tax | (12,396) | (18,068) | | Income Tax Expense | (2) | (99) | | Loss for the Period | (12,398) | (18,167) | | Attributable to Owners of the Parent | (9,505) | (14,398) | | Basic and Diluted Loss Per Share Attributable to Ordinary Equity Holders of the Parent (RMB cents) | (0.95) | (1.44) | [Interim Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) Total comprehensive loss for the period decreased, primarily due to a narrower loss for the period, partially offset by negative foreign exchange differences from overseas operations Interim Condensed Consolidated Statement of Comprehensive Income Key Data | Metric | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Loss for the Period | (12,398) | (18,167) | | Exchange Differences on Translation of Overseas Operations | (2,902) | 473 | | Total Comprehensive Loss for the Period | (15,300) | (17,694) | | Attributable to Owners of the Company | (12,407) | (13,925) | [Interim Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) Total assets and net assets decreased as of June 30, 2025, compared to December 31, 2024, with a significant reduction in current assets, particularly trade receivables and cash equivalents Interim Condensed Consolidated Statement of Financial Position Key Data | Metric | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Total Non-current Assets | 496,645 | 500,636 | | Total Current Assets | 195,473 | 226,267 | | Total Current Liabilities | 362,412 | 380,603 | | Net Current Liabilities | (166,939) | (154,336) | | Total Assets Less Current Liabilities | 329,706 | 346,300 | | Total Non-current Liabilities | 5,884 | 7,178 | | Net Assets | 323,822 | 339,122 | | Equity Attributable to Owners of the Parent | 271,132 | 283,539 | | Total Equity | 323,822 | 339,122 | [Notes to the Interim Condensed Consolidated Financial Information](index=6&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information) [1. Basis of Preparation](index=6&type=section&id=1.%20Basis%20of%20Preparation) The unaudited condensed interim financial statements are prepared in accordance with Appendix D2 of the Listing Rules and HKAS 34, and should be read with the annual financial statements for the year ended December 31, 2024 - The financial statements are prepared in accordance with Appendix D2 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Hong Kong Accounting Standard 34 "Interim Financial Reporting"[10](index=10&type=chunk) - They should be read in conjunction with the company's annual financial statements for the year ended December 31, 2024[10](index=10&type=chunk) [2. Summary of Significant Accounting Policies](index=6&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies) The company adopted all new and revised HKFRSs effective January 1, 2025, which did not result in significant changes to accounting policies, financial statement presentation, or reported amounts, except as disclosed - The company has adopted all new and revised Hong Kong Financial Reporting Standards (HKFRSs) effective from January 1, 2025[11](index=11&type=chunk) - The adoption of new standards has not resulted in significant changes to accounting policies, financial statement presentation, or reported amounts[11](index=11&type=chunk) [3. Segment Information](index=7&type=section&id=3.%20Segment%20Information) The Group primarily operates property leasing, production and sale of education equipment, consulting services, and loan financing, with property leasing and education equipment sales being main revenue sources, both declining and resulting in segment losses in H1 2025 Segment Revenue and Results (RMB thousands) | Segment | Six Months Ended June 30, 2025 Revenue | Six Months Ended June 30, 2025 Results | Six Months Ended June 30, 2024 Revenue | Six Months Ended June 30, 2024 Results | | :--- | :--- | :--- | :--- | :--- | | Property Leasing | 5,506 | (1,146) | 5,717 | 723 | | Production and Sale of Education Equipment | 5,220 | (2,330) | 6,532 | (4,966) | | Consultancy Services | – | (1,069) | – | – | | Loan Financing | – | – | – | – | | Total Segments | 10,726 | (4,545) | 12,249 | (4,243) | | Loss Before Tax | | (12,396) | | (18,068) | Geographical Revenue (RMB thousands) | Region | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Mainland China | 9,555 | 10,882 | | Hong Kong | 1,171 | 1,367 | | Total | 10,726 | 12,249 | Geographical Non-current Assets (RMB thousands) | Region | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Mainland China | 352,790 | 354,082 | | Hong Kong | 132,401 | 135,088 | | Total | 485,191 | 489,170 | [4. Revenue, Other Income and Other Gains](index=9&type=section&id=4.%20Revenue%2C%20Other%20Income%20and%20Other%20Gains) Total revenue decreased due to reduced education equipment sales and a slight decline in property rental income, while other income also fell due to lower bank interest and investment income, and other gains were negligible Revenue Analysis (RMB thousands) | Revenue Source | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Sale of Education Equipment | 5,220 | 6,532 | | Fixed Payment Rental Income from Investment Properties Operating Leases | 5,506 | 5,717 | | Total | 10,726 | 12,249 | Other Income Analysis (RMB thousands) | Income Source | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Bank Interest Income | 1,878 | 2,365 | | Investment Income from Financial Assets at Fair Value Through Profit or Loss | 24 | 743 | | Others | 205 | – | | Total | 2,107 | 3,108 | Other Gains Analysis (RMB thousands) | Gain Source | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net Exchange Gain | – | 82 | [5. Finance Costs](index=11&type=section&id=5.%20Finance%20Costs) Finance costs significantly decreased by 40.4% due to loan repayments, primarily reflected in lower interest expenses for loans from the ultimate holding company and bank loans Finance Costs Analysis (RMB thousands) | Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Interest Expense on Loans from Ultimate Holding Company | 7,688 | 11,598 | | Interest Expense on Bank Loans | 103 | 1,477 | | Total | 7,791 | 13,075 | - Finance costs decreased by approximately **40.4%** year-on-year, primarily due to loan repayments[49](index=49&type=chunk) [6. Loss Before Tax](index=12&type=section&id=6.%20Loss%20Before%20Tax) The Group's loss before tax decreased, resulting from the combined effect of various expense and income items, including reduced depreciation, amortization, and cost of inventories sold Components of Loss Before Tax (RMB thousands) | Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Depreciation of Property, Plant and Equipment | 1,058 | 1,051 | | Depreciation of Right-of-Use Assets | 567 | 567 | | Amortization of Intangible Assets | 495 | 494 | | Investment Income from Financial Assets at Fair Value Through Profit or Loss | (24) | (743) | | Net Exchange Gain | – | 82 | | Cost of Inventories Sold | 3,403 | 4,342 | [7. Income Tax Expense](index=12&type=section&id=7.%20Income%20Tax%20Expense) Income tax expense for the period was minimal, primarily from current tax in mainland China, with Hong Kong profits tax at 16.5% and mainland China corporate income tax rates at 15% or 25% - The Hong Kong profits tax rate is **16.5%**[23](index=23&type=chunk) - The corporate income tax rate for high-tech enterprises in mainland China is **15%**, while other subsidiaries are subject to a **25%** rate[24](index=24&type=chunk) Income Tax Expense Analysis (RMB thousands) | Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Current Tax - Current Period Expense | 2 | – | | Current Tax - Underprovision in Prior Years | – | 34 | | Deferred Tax | – | 65 | | Total Tax Expense for the Period | 2 | 99 | [8. Dividends](index=13&type=section&id=8.%20Dividends) No dividends were paid or proposed for ordinary shareholders for the six months ended June 30, 2025 - No dividends were paid or proposed during the current or prior periods[26](index=26&type=chunk) [9. Loss Per Share](index=13&type=section&id=9.%20Loss%20Per%20Share) Basic and diluted loss per share decreased to RMB 0.95 cents due to a reduction in loss attributable to ordinary equity holders of the parent Loss Per Share Calculation Data | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Loss Attributable to Ordinary Equity Holders of the Parent (RMB thousands) | (9,505) | (14,398) | | Weighted Average Number of Ordinary Shares in Issue for the Period | 998,553,360 | 998,553,360 | | Basic and Diluted Loss Per Share (RMB cents) | (0.95) | (1.44) | - The company had no potential dilutive ordinary shares in issue during either period[28](index=28&type=chunk) [10. Investment Properties](index=13&type=section&id=10.%20Investment%20Properties) The Group's investment properties in Hong Kong and mainland China are fair valued by independent professional valuers, with no unrealized losses from revaluation recognized in the income statement for the period, differences mainly from exchange adjustments - Investment properties are located in Hong Kong and mainland China, with fair values estimated by independent professional valuers[29](index=29&type=chunk) - No unrealized losses from revaluation of investment properties were recognized in the income statement for the period, with differences primarily due to exchange adjustments[29](index=29&type=chunk) [11. Inventories](index=14&type=section&id=11.%20Inventories) Total inventories increased, primarily due to an increase in finished goods, partially offset by impairment losses on inventories recognized during the period Inventories Analysis (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Raw Materials | 7,158 | 7,344 | | Finished Goods | 5,276 | 2,940 | | Impairment Loss on Inventories | (1,243) | – | | Total | 11,191 | 10,284 | [12. Trade and Other Receivables](index=14&type=section&id=12.%20Trade%20and%20Other%20Receivables) Trade and other receivables significantly decreased, mainly due to a substantial decline in deposits, prepayments, and other receivables, with a slight reduction in trade receivables Trade and Other Receivables Analysis (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade Receivables (Net of Provision for Credit Losses) | 7,750 | 8,457 | | Deposits, Prepayments and Other Receivables (Net of Provision for Credit Losses) | 2,042 | 23,050 | | Recoverable Value Added Tax | 352 | 293 | | Total | 10,144 | 31,800 | Ageing Analysis of Trade Receivables (RMB thousands) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 1 Month | 313 | 4,153 | | 1 to 2 Months | 416 | 444 | | 2 to 3 Months | – | – | | Over 3 Months | 7,021 | 3,860 | | Total | 7,750 | 8,457 | [13. Cash and Cash Equivalents](index=15&type=section&id=13.%20Cash%20and%20Cash%20Equivalents) Total cash and cash equivalents decreased, with both bank balances and time deposits showing a decline Cash and Cash Equivalents Analysis (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and Bank Balances | 113,322 | 113,457 | | Time Deposits | 54,780 | 64,940 | | Total | 168,102 | 178,397 | [14. Trade and Other Payables](index=15&type=section&id=14.%20Trade%20and%20Other%20Payables) Total trade and other payables increased, primarily due to higher accrued expenses and other payables, despite a reduction in trade payables and other taxes payable Trade and Other Payables Analysis (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade Payables | 1,061 | 2,811 | | Accrued Expenses and Other Payables | 16,116 | 9,805 | | Other Taxes Payable | 412 | 1,568 | | Total | 17,589 | 14,184 | Ageing Analysis of Trade Payables (RMB thousands) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 1 Month | 277 | 371 | | 1 to 2 Months | 227 | 252 | | 2 to 3 Months | 40 | 332 | | Over 3 Months | 517 | 1,856 | | Total | 1,061 | 2,811 | [15. Share Capital](index=15&type=section&id=15.%20Share%20Capital) The company's share capital remained unchanged, with a stable number of issued ordinary shares - The authorized share capital consists of **20,000,000,000** shares with a par value of **HKD 0.10** each[32](index=32&type=chunk) Share Capital Analysis (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Issued and Fully Paid 998,553,360 Ordinary Shares | 81,257 | 81,257 | Summary of Share Capital Movements | Date | Number of Shares Issued | Share Capital (RMB thousands) | | :--- | :--- | :--- | | As at January 1, 2024, December 31, 2024, January 1, 2025 and June 30, 2025 | 998,553,360 | 81,257 | [16. Pledged Assets](index=16&type=section&id=16.%20Pledged%20Assets) As of June 30, 2025, the Group had no pledged assets, unlike December 31, 2024, when investment properties and property, plant and equipment were pledged for mortgage facilities - As of June 30, 2025, the Group had no pledged assets[37](index=37&type=chunk) - As of December 31, 2024, the Group had pledged investment properties with a market value of approximately **RMB 120 million** and property, plant and equipment with a net book value of approximately **RMB 25.03 million**[37](index=37&type=chunk) [17. Related Party Transactions](index=16&type=section&id=17.%20Related%20Party%20Transactions) The Group engaged in various related party transactions, including loan interest income from a joint venture, significant loan interest expenses paid to the ultimate holding company, and rental income from an intermediate holding company, with related party balances including amounts due from a joint venture and a large amount due to the ultimate holding company Related Party Transactions (RMB thousands) | Transacting Party | Transaction Type | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | | A Joint Venture | Loan Interest Income | 236 | 342 | | Ultimate Holding Company | Loan Interest Expense | 7,688 | 11,598 | | An Intermediate Holding Company | Rental Income | 127 | 117 | Related Party Balances (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Amounts Due from a Joint Venture | 6,036 | 5,786 | | Amounts Due to a Joint Venture | – | 20,000 | | Amounts Due to Ultimate Holding Company | 342,000 | 344,000 | | Amounts Due to an Intermediate Holding Company | 21 | 21 | - The RMB-denominated loan from the ultimate holding company is unsecured, bears a fixed weighted average annual interest rate of **4.52%**, and is due on December 31, 2026, but is classified as a current liability due to the absence of a right to extend the repayment period[41](index=41&type=chunk) [18. Approval of Interim Financial Information](index=17&type=section&id=18.%20Approval%20of%20Interim%20Financial%20Information) The interim financial information was approved and authorized for issue by the Board of Directors on August 27, 2025 - The interim financial information was approved and authorized for issue by the Board of Directors on **August 27, 2025**[40](index=40&type=chunk) [Management Discussion and Analysis](index=18&type=section&id=Management%20Discussion%20and%20Analysis) [Interim Dividend](index=18&type=section&id=Interim%20Dividend) The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2025 - The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2025[42](index=42&type=chunk) [Business Review](index=18&type=section&id=Business%20Review) The Group's core businesses include investment property leasing, production and sale of digital Chinese calligraphy education equipment, consulting services, and loan financing, with both property leasing and education equipment sales revenue declining, and consulting and loan financing businesses generating no revenue, the latter to be terminated - The Group is primarily engaged in investment property leasing, production and sale of digital Chinese calligraphy education equipment and related learning and teaching systems, provision of consulting services, and loan financing[43](index=43&type=chunk) [Property Leasing](index=18&type=section&id=Property%20Leasing) Property Leasing Revenue | Year | Rental Income (RMB thousands) | | :--- | :--- | | Six Months Ended June 30, 2025 | 5,510 | | Six Months Ended June 30, 2024 | 5,720 | - Rental income accounted for **51.3%** of the Group's total revenue[44](index=44&type=chunk) - Due to unfavorable market conditions for commercial properties in Hong Kong, one investment property remains vacant, and the company is actively seeking suitable tenants[44](index=44&type=chunk) [Production and Sale of Digital Chinese Calligraphy Education Equipment](index=18&type=section&id=Production%20and%20Sale%20of%20Digital%20Chinese%20Calligraphy%20Education%20Equipment) Education Equipment Sales Revenue | Year | Revenue (RMB thousands) | | :--- | :--- | | Six Months Ended June 30, 2025 | 5,220 | | Six Months Ended June 30, 2024 | 6,530 | - This business segment's revenue accounted for **48.7%** of the Group's total revenue[45](index=45&type=chunk) - The decrease in revenue was due to global economic instability, leading customers to be more cautious in entering sales contracts, resulting in widespread delays in classroom installation projects[45](index=45&type=chunk) [Consultancy Services](index=18&type=section&id=Consultancy%20Services) - The consultancy services business did not generate any revenue during the period[46](index=46&type=chunk) - Consultancy services are primarily provided to property developers engaged in new district construction projects in China[46](index=46&type=chunk) [Loan Financing](index=18&type=section&id=Loan%20Financing) - The loan financing business did not generate any revenue or grant any new loans during the period[47](index=47&type=chunk) - After careful consideration, the Group decided to terminate this business in 2025[47](index=47&type=chunk) [Financial Review](index=19&type=section&id=Financial%20Review) The Group's financial performance showed a narrowed net loss, primarily due to a significant decrease in finance costs; however, total revenue, other income, and other operating expenses all decreased, while employee benefit expenses increased, and liquidity ratios slightly declined, though management believes cash resources are sufficient [Revenue and Results](index=19&type=section&id=Revenue%20and%20Results) Revenue and Results Overview (RMB thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Revenue | 10,730 | 12,250 | | Loss Attributable to Equity Holders of the Parent | 9,510 | 14,400 | | Loss Per Share (RMB cents) | 0.95 | 1.44 | | Cost of Inventories Sold | 3,400 | 4,340 | | Other Income | 2,110 | 3,110 | | Employee Benefit Expenses | 6,040 | 5,380 | | Other Operating Expenses | 6,830 | 8,760 | | Finance Costs | 7,790 | 13,080 | - The reduction in loss was primarily due to a decrease in finance costs resulting from loan repayments[48](index=48&type=chunk) - Other income decreased by approximately **32.2%**, mainly attributable to lower bank interest income and investment income[48](index=48&type=chunk) - Employee benefit expenses increased by approximately **12.3%**, primarily due to higher employee salaries[48](index=48&type=chunk) - Other operating expenses decreased by approximately **22.0%**, mainly due to reduced professional fees and labor costs[48](index=48&type=chunk) [Financial Resources and Liquidity](index=19&type=section&id=Financial%20Resources%20and%20Liquidity) Liquidity Ratios | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Current Assets (RMB millions) | 195 | 226 | | Current Ratio | 0.54 | 0.59 | | Outstanding Bank and Other Borrowings (RMB thousands) | 5,970 | 7,640 | | Gearing Ratio | 38% | 35% | - The Directors believe the Group has sufficient cash resources to meet its commitments and current working capital requirements[50](index=50&type=chunk) [Capital Structure](index=20&type=section&id=Capital%20Structure) - As of June 30, 2025, the number of issued ordinary shares of the company was **998,553,360**, which was the same as at December 31, 2024[51](index=51&type=chunk) - The Group's capital structure comprises debt (including bank borrowings) and equity attributable to owners of the parent (including share capital and reserves)[51](index=51&type=chunk) [Pledged Assets](index=20&type=section&id=Pledged%20Assets) - As of June 30, 2025, the Group had no pledged assets[52](index=52&type=chunk) - As of December 31, 2024, the Group had pledged investment properties with a market value of approximately **RMB 120 million** and property, plant and equipment with a net book value of approximately **RMB 25.03 million**[52](index=52&type=chunk) - As of June 30, 2025, and December 31, 2024, the Group had no unutilized bank credit facilities[53](index=53&type=chunk) [Foreign Exchange Risk](index=20&type=section&id=Foreign%20Exchange%20Risk) - The Group's financial statements are presented in RMB, and its business transactions are primarily conducted in HKD, RMB, and USD[54](index=54&type=chunk) - The Group has not entered into any hedging arrangements for foreign exchange, but will continue to closely monitor its foreign exchange exposure[54](index=54&type=chunk) [Capital Commitments](index=20&type=section&id=Capital%20Commitments) Capital Commitments (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Capital Contribution Payable to Joint Venture | 22,000 | 24,000 | [Contingent Liabilities](index=20&type=section&id=Contingent%20Liabilities) - As of June 30, 2025, and December 31, 2024, the Group had no significant contingent liabilities[56](index=56&type=chunk) [Employees and Remuneration Policy](index=20&type=section&id=Employees%20and%20Remuneration%20Policy) Number of Employees | Date | Number of Employees | | :--- | :--- | | June 30, 2025 | 109 | | December 31, 2024 | 110 | - Employee remuneration is determined based on individual performance and experience, prevailing industry practices, current market conditions, and applicable labor laws[57](index=57&type=chunk) - In addition to basic salaries, employees receive performance-linked bonuses and other staff benefits[57](index=57&type=chunk) [Outlook](index=21&type=section&id=Outlook) Facing complex global economic conditions and intense market competition, the Group will continue to focus on existing core businesses, plan to develop trading business to optimize revenue structure, strengthen cost control and risk management, and with financial support from the controlling shareholder, accelerate asset acquisitions to improve core businesses and create greater shareholder value - The global economic situation remains complex and volatile, with increasingly fierce market competition[58](index=58&type=chunk) - The Group will continue to focus on investment property leasing, production and sale of digital Chinese calligraphy education equipment and related learning and teaching systems, and provision of consulting services[58](index=58&type=chunk) - The Group also plans to develop a trading business at an appropriate time to expand its business scope and optimize its revenue structure[58](index=58&type=chunk) - The Group will further strengthen cost control and risk management to improve operational efficiency and profitability[58](index=58&type=chunk) - Qingdao City Construction Investment (Group) Co, Ltd, the controlling shareholder, has issued a letter of financial support to the Group to support operations and accelerate potential acquisitions of quality assets[58](index=58&type=chunk) [Change in Use of Proceeds from Rights Issue](index=21&type=section&id=Change%20in%20Use%20of%20Proceeds%20from%20Rights%20Issue) The Group changed the use of unutilized net proceeds from the rights issue, allocating RMB 36.4 million to repay bank loans to improve the gearing ratio and reduce finance costs, rather than leaving funds idle for investment opportunities, with remaining funds for investment expected to be fully utilized by December 31, 2025, as no suitable opportunities were identified by June 30, 2025 - The net proceeds from the rights issue amounted to approximately **RMB 159.9 million**[59](index=59&type=chunk) - The Board decided to utilize approximately **RMB 36.4 million** of the **RMB 105.75 million** allocated for investment opportunities to repay bank loans due in August 2024, instead of allowing the entire allocated amount to remain idle[60](index=60&type=chunk) - The change in use aims to improve the Group's gearing ratio and reduce finance costs[60](index=60&type=chunk) - As of June 30, 2025, **RMB 74.56 million** had been used to settle bank loans, and **RMB 15.99 million** had been used for general working capital[61](index=61&type=chunk) - The expected timeline for the utilization of unutilized net proceeds has been changed from June 30, 2025, to **December 31, 2025**[63](index=63&type=chunk) [Corporate Governance Code](index=22&type=section&id=Corporate%20Governance%20Code) The company complied with the code provisions of the Corporate Governance Code as set out in Appendix C1 of the Listing Rules during the period - The company has complied with the code provisions of the Corporate Governance Code as set out in Appendix C1 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited during the period[65](index=65&type=chunk) [Standard Code for Securities Transactions by Directors](index=22&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The company adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules and confirmed all directors complied with it during the period - The company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules[66](index=66&type=chunk) - The company has made specific and reasonable inquiries to all Directors and is satisfied that they have complied with the Standard Code throughout the period[66](index=66&type=chunk) [Purchase, Sale or Redemption of the Company’s Listed Securities](index=23&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%E2%80%99s%20Listed%20Securities) During the period, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed shares on the Stock Exchange, and held no treasury shares as of June 30, 2025 - During the period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities on the Stock Exchange[67](index=67&type=chunk) - As of June 30, 2025, the company held no treasury shares[67](index=67&type=chunk) [Events After the Reporting Period](index=23&type=section&id=Events%20After%20the%20Reporting%20Period) Except as disclosed, no events after the reporting period had a significant impact on the company's financial position - Save as disclosed above, no events after the reporting period had a significant impact on the company's financial position[68](index=68&type=chunk) [Auditor, Audit Committee and Review of Interim Results](index=23&type=section&id=Auditor%2C%20Audit%20Committee%20and%20Review%20of%20Interim%20Results) The company's Audit Committee, comprising four independent non-executive directors, reviews accounting principles, oversees audit and financial reporting processes, and risk management and internal control systems, and has reviewed the financial information in this announcement - The Audit Committee comprises four independent non-executive Directors and reports to the Board[69](index=69&type=chunk) - The primary duties of the Audit Committee are to review the accounting principles and practices adopted by the Group, oversee the audit and financial reporting processes, and risk management and internal control systems[69](index=69&type=chunk) - The financial information contained in this announcement is unaudited and has been reviewed by the Audit Committee[69](index=69&type=chunk) [Board of Directors](index=23&type=section&id=Board%20of%20Directors) This announcement lists the names and positions of executive and independent non-executive directors as of the announcement date - The executive directors are Mr Cui Mingshou (Chairman), Mr Wang Yimei (Vice Chairman), and Mr Hu Liang[71](index=71&type=chunk) - The independent non-executive directors are Mr Yin Desheng, Mr Li Xue, Mr Wang Yaping, and Ms Qi Yan[71](index=71&type=chunk)

Core Viewpoint - Qingdao Holdings (00499.HK) has announced a board meeting scheduled for August 27, 2025, to approve the unaudited interim results for the six months ending June 30, 2025, and to consider the payment of an interim dividend, if any [1] Summary by Relevant Categories - **Company Announcement** - The company will hold a board meeting on August 27, 2025, to discuss its interim performance and potential dividend [1] - **Financial Reporting** - The meeting will include the approval of the unaudited interim results for the six months ending June 30, 2025 [1] - **Dividend Consideration** - The board will consider the payment of an interim dividend during the meeting [1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不負責，對 其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公佈全部或任何部分 內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 青島控股國際有限公司（「本公司」）董事會（「董事會」）謹此公佈，本公司訂於 二零二五年八月二十七日（星期三）舉行董事會會議，藉以（其中包括）批准本 公司及其附屬公司截至二零二五年六月三十日止六個月之未經審核中期業績公 佈及考慮派付中期股息（如有）。 承董事會命 青島控股國際有限公司 主席兼執行董事 崔明壽 香港，二零二五年八月十五日 於本公佈日期，執行董事為崔明壽先生（主席）、王宜美先生（副主席）及胡亮 先生；以及獨立非執行董事為尹德勝先生、李雪先生、王亞平先生及祁艷女士。 * 僅供識別 QINGDAO HOLDINGS INTERNATIONAL LIMITED 青島控股國際有限公司* （於百慕達註冊成立之有限公司） （股份代號：00499） 董事會會議召開日期 ...

Core Viewpoint - Standard Chartered Bank has established a joint venture named Anchorpoint Financial Limited, focusing on issuing compliant stablecoins in Hong Kong, with the aim to enhance digital asset applications and support Hong Kong's status as an international financial center [1][3]. Company Summary - Anchorpoint Financial Limited was formed by Standard Chartered Bank (Hong Kong), Animoca Brands, and HKT, with the announcement of the joint venture made in February 2023 and the official registration completed by August 8, 2023 [1][2]. - The company has undergone three name changes during its formation, with the final name "Anchorpoint" symbolizing the anchoring of stablecoins to fiat currencies [2]. - The registered address of Anchorpoint is located at Standard Chartered Bank's headquarters in Central Hong Kong, indicating a strong institutional backing [2]. Industry Summary - Standard Chartered Bank is recognized as one of the three major note-issuing banks in Hong Kong and is considered a competitive applicant for stablecoin licenses [3]. - Anchorpoint expressed its intention to apply for a stablecoin issuance license to the Hong Kong Monetary Authority (HKMA) on August 1, 2023, coinciding with the enactment of the Stablecoin Regulation [3]. - The HKMA has received interest from numerous institutions since launching the stablecoin issuer sandbox in July 2022, but it plans to issue only a limited number of licenses initially, indicating a cautious regulatory approach [3]. - The establishment of stablecoins is viewed as crucial for reinforcing Hong Kong's position as a leading international financial center, especially as assets become increasingly digitized [4].

截至月份: 2025年7月31日 狀態: 新提交 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 致：香港交易及結算所有限公司 公司名稱: 青島控股國際有限公司* (*僅供識別) 呈交日期: 2025年8月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 00499 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 20,000,000,000 | HKD | | 0.1 HKD | | 2,000,000,000 | | 增加 / 減少 (-) | | | 0 | | | HKD | | 0 | | 本月底結存 | | | 20,000,000,000 | HKD | | 0.1 HKD | | 2,000,000,000 | 本月底法定/註冊股 ...

Group 1 - The Hang Seng Index closed at 24,498.95 points, down 0.08% on July 17 [1] - Qingdao Holdings (00499.HK) closed at HKD 0.128 per share, up 14.29%, with a trading volume of 20,700 shares and a turnover of HKD 26,300 [1] - Over the past month, Qingdao Holdings has seen a cumulative increase of 8.74%, but a year-to-date decline of 15.79%, underperforming the Hang Seng Index by 22.22% [1] Group 2 - For the fiscal year ending December 31, 2024, Qingdao Holdings reported total revenue of HKD 44.334 million, a year-on-year increase of 4.8%, and a net loss attributable to shareholders of HKD 15.312 million, a year-on-year increase of 67.64% [1] - The gross profit margin stands at 57.61%, with a debt-to-asset ratio of 53.35% [1] - Currently, there are no institutional investment ratings for Qingdao Holdings [2] Group 3 - The average price-to-earnings (P/E) ratio for the support services industry is 3.73 times, with a median of 3.77 times; Qingdao Holdings has a P/E ratio of -6.76 times, ranking 75th in the industry [2] - Other companies in the Chinese education sector have P/E ratios ranging from 1.47 times to 2.8 times [2] - Qingdao Holdings primarily engages in investment property leasing, production and sales of digital Chinese calligraphy education equipment, and provides loan financing [2]

Financial Performance - The total revenue for the year ended December 31, 2024, was RMB 44.3 million, an increase from RMB 42.3 million in 2023, reflecting a recovery in market demand [12]. - Rental income for the year was RMB 11.3 million, up 27.9% from RMB 8.8 million in 2023 [12]. - Revenue from the production and sales of educational equipment was RMB 33 million, stable compared to RMB 33.5 million in 2023 [13]. - The company recorded revenue of approximately RMB 44,334,000 for the current year, an increase from RMB 42,305,000 in the previous year, representing a growth of 4.8% [33]. - The loss attributable to equity holders of the parent company was approximately RMB 15,312,000, a significant improvement from a loss of RMB 47,324,000 in the previous year, reflecting a reduction of 67.6% [33]. - The company reported a basic loss per share of RMB 1.53, compared to a loss of RMB 4.74 per share in the previous year, indicating a 67.7% improvement [33]. - Other income for the current year was approximately RMB 5,298,000, an increase of RMB 652,000 compared to RMB 4,646,000 in the previous year, primarily due to increased bank interest income [34]. Asset and Liability Management - The total assets of the company as of December 31, 2023, were RMB 1,246,998,000, an increase from RMB 1,100,442,000 in the previous year [20]. - The total liabilities increased to RMB 893,688,000 from RMB 702,047,000 in the previous year, reflecting a rise of 27.3% [20]. - As of December 31, 2024, the total assets of the group were approximately RMB 726,903,000, a decrease from RMB 1,246,998,000 as of December 31, 2023 [39]. - The total liabilities of the group as of December 31, 2024, were approximately RMB 387,781,000, down from RMB 893,688,000 as of December 31, 2023 [39]. - The net asset value of the group as of December 31, 2024, was RMB 339,122,000, compared to RMB 353,310,000 as of December 31, 2023 [39]. - The group had outstanding bank and other borrowings of approximately RMB 7,637,000 as of December 31, 2024, significantly reduced from RMB 45,117,000 as of December 31, 2023 [39]. - The debt-to-asset ratio as of December 31, 2024, was 35%, a notable improvement from 67% as of December 31, 2023 [39]. Business Strategy and Future Plans - The company plans to enhance cooperation with technology firms to develop more intelligent calligraphy education products in 2025 [15]. - The real estate rental market is expected to see more development opportunities in 2025, supported by government policies and a gradual market recovery [15]. - The company intends to expand into trade business to diversify its revenue structure and enhance market competitiveness [16]. - The company will continue to pursue acquisitions of high-tech and innovative business models to drive business and revenue diversification [16]. - The group plans to focus on the rental of investment properties and the production and sales of digital Chinese calligraphy education equipment and related systems in 2025 [49]. - The group aims to enhance cost control and risk management to improve operational efficiency and profitability in the upcoming year [49]. Corporate Governance and Management - The board expressed gratitude to the management team and employees for their contributions to the group's development over the past year [16]. - The company has a strong governance structure with independent non-executive directors serving on various committees, enhancing oversight and decision-making [68]. - The company’s independent non-executive directors bring diverse expertise, including legal, economic, and management experience, contributing to effective governance [69]. - The board consists of seven members, including three executive directors and four independent non-executive directors, ensuring a balanced composition with relevant knowledge and experience [133]. - The board has adopted a diversity policy that considers various factors such as gender, age, and professional experience when reviewing board composition [161]. - The board aims to maintain the current level of female representation and actively seeks opportunities to increase the proportion of female members [161]. Risk Management and Internal Control - The company has established a robust risk management and internal control system to ensure compliance with regulations and safeguard assets [172]. - The audit committee has reviewed the risk management and internal control systems, covering financial, operational, and compliance controls, and has deemed the review sufficient and effective [173]. - The audit procedures for investment property valuation included assessing the competence and objectivity of the appointed valuers and evaluating the reasonableness of significant assumptions used in the valuation [194]. - The company has appointed external professional consultants to review the risk management and internal control systems for the year [173]. Shareholder Communication and Dividends - The company did not recommend any final dividend for the current year, consistent with the previous year [37]. - The company has adopted a shareholder communication policy to ensure timely, transparent, and accurate communication with shareholders [182]. - The board does not recommend any final dividend for the year, consistent with the previous year where no dividend was declared [75]. Employee Management and Satisfaction - The company has a strong focus on employee retention and satisfaction, offering competitive compensation and benefits [104]. - The number of employees decreased to 110 as of December 31, 2024, from 121 as of December 31, 2023 [52]. - As of December 31, 2024, over 38% of the group's employees are female, indicating gender diversity within the workforce [162]. Audit and Financial Reporting - The independent auditor's report confirms that the consolidated financial statements reflect the company's financial position as of December 31, 2024, in accordance with Hong Kong Financial Reporting Standards [188]. - The company aims to ensure that its financial statements accurately reflect the group's financial position, operating performance, and cash flows [142]. - The audit committee held three meetings during the year and reviewed the financial statements for the year ending December 31, 2023, and the interim financial statements for the six months ending June 30, 2024 [150][152].

Financial Performance - Total revenue for the year ended December 31, 2024, was RMB 44,334,000, an increase of 4.8% from RMB 42,305,000 in 2023[3] - Rental income increased to RMB 11,305,000, up 27.9% from RMB 8,839,000 in the previous year[3] - The company reported a loss from continuing operations of RMB 37,165,000, an improvement of 22% compared to a loss of RMB 47,648,000 in 2023[4] - The total comprehensive loss for the year was RMB 14,188,000, significantly reduced from RMB 45,085,000 in 2023[6] - The group reported a loss of RMB 17,616,000 for the year ending December 31, 2024[12] - The company reported an adjusted pre-tax loss of RMB 33,289,000 for the year, compared to a loss of RMB 60,411,000 in the previous year, indicating an improvement[27] - The company reported a pre-tax loss of RMB 15,312,000 for 2024, compared to a loss of RMB 47,324,000 in 2023, indicating an improvement[47] - The loss attributable to equity holders of the parent company was approximately RMB 15,312,000, a significant improvement from a loss of RMB 47,324,000 in the previous year, indicating a reduction in loss by approximately 67.6%[66] Assets and Liabilities - Cash and cash equivalents increased to RMB 178,397,000 from RMB 156,267,000, reflecting a growth of 14.1%[7] - Non-current assets decreased to RMB 500,636,000 from RMB 514,784,000, a decline of 2.7%[7] - The company's net asset value was RMB 339,122,000, down from RMB 353,310,000, a decrease of 4%[8] - The net current liabilities as of December 31, 2024, were approximately RMB 154,336,000[12] - Total assets as of December 31, 2024, were approximately RMB 726,903,000, down from RMB 1,246,998,000 in the previous year, indicating a decrease of about 41.7%[71] - The net asset value of the group as of December 31, 2024, was approximately RMB 339,122,000, a slight decrease from RMB 353,310,000 in the previous year[71] Revenue Segments - For the year ending December 31, 2024, the total revenue from continuing operations was RMB 44,334,000, with a segment loss of RMB 2,321,000[27] - The property leasing segment generated revenue of RMB 11,305,000 and a profit of RMB 2,603,000, while the education equipment segment reported revenue of RMB 33,029,000 but incurred a loss of RMB 928,000[27] - Revenue from educational equipment sales was RMB 33,029,000, slightly down from RMB 33,466,000 in the previous year[34] - The consulting services segment recorded a loss of RMB 3,921,000, while the loan financing segment had a loss of RMB 75,000 for the year ending December 31, 2024[27] Cost and Expenses - The cost of goods sold decreased to RMB 18,791,000 from RMB 23,431,000, a reduction of 19.5%[3] - Financing costs decreased to RMB 22,354,000 from RMB 27,885,000, a reduction of 19.7%[3] - The total capital expenditure for the education equipment segment was RMB 1,140,000 for the year, with RMB 1,126,000 allocated to property leasing[29] - The total capital expenditure for the year was RMB 2,372,000, which includes the acquisition of properties, machinery, and equipment[30] Corporate Strategy and Operations - The company has terminated its real estate development segment, focusing on property leasing and educational equipment sales[11] - The company plans to terminate its loan financing business by the end of 2025, as no new loans were issued during the year[62] - The group plans to focus on property leasing, digital Chinese calligraphy education equipment production, and consulting services, aiming to enhance market presence and brand influence[78] - The group anticipates significant growth in engineering development and consulting revenue as joint ventures begin operations[78] Governance and Compliance - The company has complied with corporate governance codes, although there were deviations regarding meetings between the chairman and independent non-executive directors[92] - The board of directors held three regular meetings this year, which is less than the minimum requirement of four meetings as per corporate governance code C.5.1[93] - The audit committee consists of four independent non-executive directors and is responsible for reviewing the group's accounting principles and financial reporting procedures[97] Financial Reporting and Standards - The group has applied new accounting standards that did not have a significant impact on the financial statements for the current year[15] - The group has not applied new accounting standards that have been issued but are not yet effective, which are expected to have no significant impact in the foreseeable future[19] - The group’s financial statements are prepared in accordance with Hong Kong Financial Reporting Standards[12] - The group’s accounting policies have been updated to reflect the latest revisions in financial reporting standards[15] - The company is currently assessing the detailed impact of the new Hong Kong Financial Reporting Standards on its consolidated financial statements, which are expected to affect the presentation of the income statement and future disclosures[23] Cash Flow and Financing - The board anticipates generating positive cash flow from operations in the future[14] - The group has received a financial support letter from its controlling shareholder, which will facilitate the acquisition of quality assets and reduce operational risks[78] - Qingdao Urban Investment provided an unsecured loan of RMB 182,000,000 to Qifeng at an interest rate of 3.85%[82] - The company has 110 employees as of December 31, 2024, down from 121 employees the previous year[91] Other Financial Information - The company did not declare any dividends for the year ended December 31, 2024, consistent with the previous year[46] - A major customer contributed RMB 8,570,000 in revenue, accounting for over 10% of total revenue for the year, a significant increase from 2023 when no single customer exceeded this threshold[32] - The company incurred a net impairment loss of RMB 1,000,000 on financial assets, down from RMB 1,150,000 in the previous year[40] - The provision for credit losses on accounts receivable rose to RMB 3,612,000 in 2024 from RMB 2,612,000 in 2023, an increase of 38%[53] - Total accounts payable decreased significantly to RMB 2,811,000 in 2024 from RMB 339,364,000 in 2023, a reduction of approximately 99%[54] - The expected loss rate for the credit loss as of December 31, 2024, is estimated at 22%[82] - The company has signed a share transfer agreement to sell 95% of its stake in a subsidiary, marking a strategic exit from property development activities[65] - The sale of 95% equity in Bengbu Huaiying Investment Management for RMB 43,654,590 was agreed upon on November 29, 2024, resulting in the company no longer holding this subsidiary[85] - The net proceeds from the rights issue amounted to approximately RMB 159,900,000, with 90% (approximately RMB 143,910,000) intended for other investment opportunities[86] - As of December 31, 2024, RMB 74.56 million was used to repay bank loans, and RMB 15.99 million was allocated for general operating funds[88] - The company maintained a strict credit control policy, with 31% of accounts receivable concentrated among its largest customer in the education equipment segment[50] - Other income increased to approximately RMB 5,298,000 from RMB 4,646,000, marking an increase of about 14% primarily due to higher bank interest income[68]

Financial Performance - Total revenue for the six months ended June 30, 2024, was RMB 12,249,000 (approximately $1.54 million), an increase of 16.9% compared to RMB 10,475,000 for the same period in 2023[2] - The company reported a loss before tax of RMB 18,068,000 for the first half of 2024, significantly improved from a loss of RMB 49,163,000 in the same period last year, representing a reduction of 63.3%[2] - The net loss for the period was RMB 18,167,000, compared to a net loss of RMB 43,309,000 in the previous year, indicating a 58.1% improvement[2] - The basic and diluted loss per share for the period was RMB 1.44, an improvement from RMB 3.78 in the same period last year[2] - The group reported a loss attributable to equity holders of the parent of RMB 14,398,000 for the six months ended June 30, 2024, compared to a loss of RMB 37,775,000 for the same period in 2023[47] - The loss attributable to equity holders of the parent company for the six months ended June 30, 2024, was approximately RMB 14,400,000, a significant reduction from a loss of RMB 37,780,000 in the prior year[88] Cash Flow and Liquidity - The company's cash and cash equivalents increased to RMB 350,684,000 as of June 30, 2024, up from RMB 156,267,000 at the end of 2023, reflecting a growth of 124.4%[6] - The net cash flow from operating activities for the six months ended June 30, 2024, was RMB 200,452 thousand, a significant improvement from a net outflow of RMB (13,760) thousand in the same period of 2023[21] - The net cash flow from investing activities was RMB 144 thousand, compared to RMB 470 thousand in the same period of 2023, showing a decrease in investment income[21] - The net cash flow used in financing activities was RMB (1,698) thousand, an improvement from RMB (8,298) thousand in the same period of 2023, reflecting better management of financing costs[21] - Cash and cash equivalents, including short-term bank deposits, increased to RMB 350,684,000 as of June 30, 2024, from RMB 156,267,000 as of December 31, 2023[54] Assets and Liabilities - The total assets as of June 30, 2024, were RMB 1,531,638,000, compared to RMB 1,247,098,000 at the end of 2023, representing a growth of 22.8%[6] - The total liabilities increased to RMB 1,189,149,000 as of June 30, 2024, compared to RMB 885,298,000 at the end of 2023, reflecting a rise of 34.4%[6] - The company's equity attributable to shareholders decreased to RMB 335,616,000 from RMB 353,310,000 at the end of 2023, a decline of 5.0%[7] - The company's net debt to equity ratio as of June 30, 2024, was 71%, up from 67% as of December 31, 2023[91] Inventory and Receivables - Inventory levels rose to RMB 426,969,000, compared to RMB 386,798,000 at the end of 2023, marking an increase of 10.4%[6] - The construction-related costs for the Yongkang Garden South District project were confirmed as inventory at RMB 413,300,000 as of June 30, 2024, compared to RMB 373,500,000 as of December 31, 2023[87] - The company reported a total of RMB 198,606,000 in receivables from a joint venture, unchanged from the previous reporting period[66] Revenue Segments - The segment revenue from the sale of educational equipment was RMB 6,532 thousand, up from RMB 5,440 thousand in the previous year, indicating a growth of 20.1%[35] - Revenue from external customers in mainland China was RMB 10,882 thousand, up from RMB 9,112 thousand in the same period of 2023, reflecting a growth of 19.4%[30] - Rental income from investment properties in Hong Kong and China for the six months ended June 30, 2024, was approximately RMB 5,700,000, representing a 14% increase from RMB 5,000,000 in the same period of 2023, accounting for 47% of total revenue[82] - Revenue from the production and sale of digital Chinese calligraphy education equipment for the six months ended June 30, 2024, was RMB 6,500,000, up from RMB 5,400,000 in 2023, which is a 20% increase and accounts for 53% of total revenue[83] Corporate Governance and Compliance - The company has adopted the Corporate Governance Code and has complied with the relevant provisions during the reporting period[111] - The Audit Committee consists of three independent non-executive directors and is responsible for reviewing the accounting principles and practices adopted by the group[119] - The company has maintained a high level of corporate governance in line with shareholder interests[111] Future Outlook and Strategy - The company anticipates a positive operating environment in 2024, driven by China's macroeconomic recovery and expected interest rate cuts by the Federal Reserve in the second half of 2024[99] - The company expects significant growth in property development, construction, and consulting revenue in the foreseeable future as joint ventures begin operations[99] - The company is actively identifying potential quality assets for acquisition to improve its core business[99] - The company has shifted its strategy to utilize part of the rights issue proceeds for loan repayment to improve its capital structure and reduce financing costs[105] Shareholder Information - As of June 30, 2024, major shareholders include Qingdao Urban Construction Investment Group Co., Ltd. and Huqing Development (Holdings) Group Limited, each holding 689,243,266 shares, representing approximately 69.02% of the total issued shares[109] - The company has not been notified of any other individuals holding 5% or more of the total issued shares as of June 30, 2024[110] Employee Information - As of June 30, 2024, the company employed a total of 103 full-time employees, down from 121 on December 31, 2023[98] - Employee benefit expenses for the six months ended June 30, 2024, were approximately RMB 5,400,000, a decrease from RMB 7,000,000 in the previous year[90]

Financial Performance - Total revenue for the six months ended June 30, 2024, was RMB 12,249,000, an increase of 17% compared to RMB 10,475,000 for the same period in 2023[1] - The company reported a loss before tax of RMB 18,068,000, significantly improved from a loss of RMB 49,163,000 in the same period last year, reflecting a reduction of approximately 63%[2] - The net loss for the period was RMB 18,167,000, compared to a net loss of RMB 43,309,000 in the prior year, showing a 58% improvement[2] - The loss attributable to equity holders of the parent company per share was RMB 1.44, an improvement from RMB 3.78 in the previous year[2] - The group reported a net loss from the revaluation of investment properties of zero for the six months ended June 30, 2024, compared to a loss of RMB 24,271,000 for the same period in 2023[28] - The group reported a pre-tax loss of RMB 1,051,000 for the six months ended June 30, 2024, compared to a loss of RMB 1,091,000 for the same period in 2023[21] Revenue Breakdown - The property leasing segment generated revenue of RMB 5,717,000 in 2024, up from RMB 5,035,000 in 2023, an increase of 13.5%[12] - The sales of educational equipment segment reported revenue of RMB 6,532,000 for the first half of 2024, compared to RMB 5,440,000 in 2023, reflecting a growth of 20.1%[14] - Rental income from investment properties in Hong Kong and China for the six months ended June 30, 2024, was approximately RMB 5,700,000, representing 47% of total revenue, an increase from RMB 5,000,000 in the same period last year[48] - Revenue from the production and sale of digital Chinese calligraphy education equipment for the six months ended June 30, 2024, was RMB 6,500,000, accounting for 53% of total revenue, up from RMB 5,400,000 year-on-year[49] Other Income and Expenses - Other income increased to RMB 3,108,000 from RMB 1,293,000, representing a growth of 140% year-over-year[1] - The company recorded other income of RMB 2,365,000 from bank interest for the first half of 2024, significantly up from RMB 660,000 in 2023[18] - Interest expenses for the six months ended June 30, 2024, totaled RMB 13,075,000, slightly down from RMB 13,297,000 in 2023[20] - The group’s financing costs for the six months ended June 30, 2024, were approximately RMB 13,100,000, a decrease of approximately RMB 200,000 from RMB 13,300,000 in the same period of 2023[55] Assets and Liabilities - Cash and cash equivalents rose to RMB 350,684,000, up from RMB 156,267,000, indicating a significant increase in liquidity[4] - Total current assets reached RMB 1,015,820,000, compared to RMB 732,214,000 in the previous year, marking an increase of 38.9%[4] - The company's total liabilities increased to RMB 1,189,149,000 from RMB 885,298,000, reflecting a rise of 34.4%[4] - The total assets as of June 30, 2024, amounted to RMB 1,531,638,000, an increase from RMB 1,246,998,000 as of December 31, 2023[11] - The total liabilities as of June 30, 2024, were RMB 1,175,661,000, compared to RMB 1,075,165,000 as of December 31, 2023, indicating a rise of 9.3%[11] - The group’s asset-liability ratio as of June 30, 2024, was 71%, an increase from 67% as of December 31, 2023[56] Cash Flow and Financing - Cash and cash equivalents increased significantly to RMB 249,343,000 as of June 30, 2024, up from RMB 57,599,000 as of December 31, 2023[33] - The group has secured mortgage financing from a Hong Kong bank amounting to RMB 36.5 million as of June 30, 2024, down from RMB 41.5 million as of December 31, 2023[38] - The company plans to allocate approximately RMB 105.75 million for investment opportunities, but has not yet made final decisions due to the current economic downturn in the property market[69] - The company expects to utilize all net proceeds from the rights issue by June 30, 2025[70] Operational Outlook - The group anticipates a positive operating environment in 2024, supported by China's proactive fiscal policies and stable monetary policies, which are expected to boost the overall economy and real estate market[63] - The group expects a significant reduction in operational risks due to the completion of default loan disposal, with anticipated sales expected to lower operational risks significantly[63] - The group plans to establish a joint venture focused on reconstruction and development in China, which will engage in municipal facility construction and management[64] Corporate Governance - The company has adhered to the corporate governance code as per the Hong Kong Stock Exchange listing rules during the reporting period[71] - The audit committee, composed of three independent non-executive directors, has reviewed the financial information presented in the interim results announcement[75] - No significant matters affecting the company's financial position have been disclosed post-reporting period[74]