CWT INTERNATIONAL LIMITED (Incorporated in Hong Kong with limited liability) （於香港註冊成立之有限公司） (Stock Code 股份代號: 521) Dear Shareholder of Ordinary Shares of the Company, CWT International Limited (the "Company") – Notice of Publication of Interim Report 2025 We hereby notify you that the English and Chinese versions of the Interim Report 2025 are now available on the Company's website at www.cwtinternational.com and Hong Kong Exchanges and Clearing Limited's website at www.hkexnews.hk (the "HKEX website"). You ...

[Definitions](index=3&type=section&id=Definitions) [Content of Definitions](index=3&type=section&id=Definitions_Content) This section defines key terms and abbreviations, including corporate entities, regulatory bodies, financial instruments, and currencies, to ensure clarity and consistency in the interim report - The report defines key terms such as "Audit Committee", "Board", "Corporate Governance Code", "Companies Ordinance", "the Company", "the Group", "HNA Group", "Hong Kong HNA", "Independent Investigation Committee", "Listing Rules", "Model Code", "Nomination Committee", "PRC", "Acceptance Bills", "Remuneration Committee", "the Restructuring Plan", "SFO", "HNA Trust Management", "Shares", "Shareholders", "Stock Exchange", "Subsidiaries", "the Trust", and various currencies (Euro, HKD, SGD, RMB, USD), ensuring clarity and accuracy of the report content[4](index=4&type=chunk)[5](index=5&type=chunk)[6](index=6&type=chunk)[7](index=7&type=chunk)[8](index=8&type=chunk) [Corporate Information](index=6&type=section&id=Corporate%20Information) [Board of Directors](index=6&type=section&id=Board%20of%20Directors) This section lists the company's executive and independent non-executive directors, including the Chairman and Chief Executive Officer - Executive Directors include **Wang Kan** (Chairman), **Zhao Quan**, **Wang Qi**, and **Shang Duoxu** (Chief Executive Officer)[11](index=11&type=chunk)[12](index=12&type=chunk) - Independent Non-executive Directors include **Lam Kin Fung**, **Liu Yi Fei**, and **Lo Wing Yan**[11](index=11&type=chunk)[12](index=12&type=chunk) [Committees](index=6&type=section&id=Committees) The company maintains Audit, Executive, Independent Investigation, Nomination, and Remuneration Committees, with listed chairmen and members, to ensure robust corporate governance - The Audit Committee Chairman is **Lo Wing Yan**, with members **Lam Kin Fung** and **Liu Yi Fei**[11](index=11&type=chunk)[12](index=12&type=chunk) - The Executive Committee Chairman is **Wang Kan**, with members **Wang Qi** and **Shang Duoxu**[11](index=11&type=chunk)[12](index=12&type=chunk) - The Independent Investigation Committee Chairman is **Lo Wing Yan**, with members **Lam Kin Fung** and **Liu Yi Fei**[11](index=11&type=chunk)[12](index=12&type=chunk) - The Nomination Committee Chairman is **Wang Kan**, with members **Lam Kin Fung** and **Lo Wing Yan**[11](index=11&type=chunk)[12](index=12&type=chunk) - The Remuneration Committee Chairman is **Lo Wing Yan**, with members **Wang Kan** and **Lam Kin Fung**[11](index=11&type=chunk)[12](index=12&type=chunk) [Other Key Personnel and Information](index=7&type=section&id=Other%20Key%20Personnel%20and%20Information) This section provides key company information including the Chief Financial Officer, Company Secretary, Auditor, Legal Advisor, Share Registrar, Stock Code, and official website - The Chief Financial Officer is **Yan Shen**, and the Company Secretary is **Liu Li Yi**[13](index=13&type=chunk)[14](index=14&type=chunk) - The Auditor is **Tienche Hong Kong Certified Public Accountants Limited**, and the Legal Advisor is **Baker McKenzie**[13](index=13&type=chunk)[14](index=14&type=chunk) - The Company's stock code is **521**, and its official website is **www.cwtinternational.com**[13](index=13&type=chunk)[14](index=14&type=chunk) [Report on Review of Interim Financial Report](index=8&type=section&id=Report%20on%20Review%20of%20Interim%20Financial%20Report) [Auditor's Conclusion](index=8&type=section&id=Auditor's%20Conclusion) The auditor reviewed the interim financial report for the six months ended June 30, 2025, finding no material non-compliance with Hong Kong Accounting Standard 34 - The auditor has reviewed the interim financial report in accordance with Hong Kong Standard on Review Engagements 2410[17](index=17&type=chunk)[19](index=19&type=chunk) - The auditor found no matters that cause them to believe the interim financial report for the six months ended June 30, 2025, is not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34[20](index=20&type=chunk)[21](index=21&type=chunk) [Interim Results](index=10&type=section&id=Interim%20Results) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=10&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, Group revenue increased to **HK$21,764,921 thousand**, with net profit significantly growing to **HK$300,380 thousand**, driven by commodity trading and logistics tax credits Key Data from Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | June 30, 2025 (HK$ thousand) | June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Revenue | 21,764,921 | 20,275,771 | | Cost of sales | (20,767,006) | (19,415,626) | | Gross profit | 997,915 | 860,145 | | Other income | 270,495 | 351,720 | | Other net gains/(losses) | 18,115 | (52,690) | | Selling and distribution expenses | (269,206) | (242,359) | | Administrative expenses | (415,172) | (418,570) | | Finance costs | (296,942) | (306,603) | | Share of profits less losses of associates (after tax) | 30,841 | 22,473 | | Share of profits less losses of joint ventures (after tax) | (8,809) | (12,128) | | Profit before taxation | 327,237 | 201,988 | | Income tax expense | (26,857) | (65,541) | | Profit for the period | 300,380 | 136,447 | | Total comprehensive income for the period | 558,835 | 50,475 | | Profit for the period attributable to owners of the Company | 282,344 | 120,860 | | Profit for the period attributable to non-controlling interests | 18,036 | 15,587 | | Basic and diluted earnings per share (HK cents) | 2.48 | 1.06 | - The increase in net profit is primarily attributable to favorable premium differentials and improved profit margins in the commodity marketing segment, as well as tax credits recognized in the logistics services segment in H1 2025[180](index=180&type=chunk) [Condensed Consolidated Statement of Financial Position](index=13&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets less current liabilities increased to **HK$8,544,243 thousand**, and net assets rose to **HK$5,446,079 thousand**, driven by increases in non-current assets like property, plant and equipment and right-of-use assets, and significant growth in current assets such as inventories and prepayments Key Data from Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | **Non-current assets** | | | | Property, plant and equipment | 3,346,179 | 3,125,976 | | Right-of-use assets | 2,002,392 | 1,895,195 | | Intangible assets | 94,160 | 104,966 | | Interests in associates | 344,127 | 340,664 | | Interests in joint ventures | 89,401 | 93,843 | | Other financial assets | 28,129 | 29,465 | | Prepayments, deposits and other receivables | 89,947 | 108,421 | | Other non-current assets | 18,630 | 18,396 | | Derivative financial instruments | 2,346 | 3,686 | | Deferred tax assets | 58,042 | 41,004 | | **Current assets** | | | | Other financial assets | 1,348,886 | 1,332,188 | | Inventories | 4,021,555 | 3,214,026 | | Trade receivables | 3,188,469 | 3,363,238 | | Prepayments, deposits and other receivables | 12,101,148 | 10,499,844 | | Contract assets | 152,005 | 120,768 | | Derivative financial instruments | 268,628 | 858,558 | | Tax recoverable | 23,697 | 16,974 | | Pledged bank deposits | 215,579 | 193,291 | | Cash and cash equivalents | 2,343,387 | 2,271,537 | | **Current liabilities** | | | | Contract liabilities | 98,814 | 99,773 | | Trade and other payables | 14,203,479 | 13,820,292 | | Loans and borrowings | 5,928,246 | 5,136,740 | | Lease liabilities | 265,612 | 256,305 | | Derivative financial instruments | 623,008 | 393,522 | | Current tax payable | 73,305 | 76,715 | | **Non-current liabilities** | | | | Trade and other payables | 73,086 | 68,265 | | Loans and borrowings | 798,728 | 787,821 | | Lease liabilities | 1,955,825 | 1,834,045 | | Defined benefit obligations | 42,574 | 36,815 | | Deferred tax liabilities | 227,951 | 216,299 | | **Net assets** | 5,446,079 | 4,905,448 | | **Total equity** | 5,446,079 | 4,905,448 | [Condensed Consolidated Statement of Changes in Equity](index=15&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, equity attributable to owners increased from **HK$4,671,281 thousand** on January 1, 2024, to **HK$5,315,534 thousand** on June 30, 2025, primarily due to period profit and positive exchange differences Changes in Equity Attributable to Owners of the Company | Indicator | June 30, 2025 (HK$ thousand) | June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Balance at beginning of period (January 1, 2025/January 1, 2024) | 4,780,950 | 4,671,281 | | Profit for the period | 282,344 | 120,860 | | Total other comprehensive income/(expense) | 252,265 | (81,178) | | Capital contribution from non-controlling interests | - | - | | Dividends paid to non-controlling interests | - | (14,134) | | Changes in non-controlling interests | (25) | (29,689) | | Transfer to statutory reserve | - | - | | Balance at end of period | 5,315,534 | 4,681,274 | - In H1 2025, exchange differences arising from the translation of financial statements of overseas subsidiaries had a positive impact on equity, amounting to **HK$278,479 thousand**, compared to a negative impact of **HK$(88,099) thousand** in the corresponding period of 2024[37](index=37&type=chunk)[40](index=40&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=17&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash from operating activities was a negative **HK$677,339 thousand**, while investing and financing activities generated positive cash flows, resulting in a net decrease of **HK$3,577 thousand** in cash and cash equivalents Key Data from Condensed Consolidated Statement of Cash Flows | Indicator | June 30, 2025 (HK$ thousand) | June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Net cash (used in)/generated from operating activities | (677,339) | 399,933 | | Net cash generated from investing activities | 225,095 | 167,019 | | Net cash generated from/(used in) financing activities | 448,667 | (408,398) | | Net (decrease)/increase in cash and cash equivalents | (3,577) | 158,554 | | Cash and cash equivalents at beginning of period | 2,264,074 | 1,994,619 | | Effect of foreign exchange rate changes | 78,069 | (29,600) | | Cash and cash equivalents at end of period | 2,338,566 | 2,123,573 | - In H1 2025, cash flow from operating activities turned from **HK$656,486 thousand** generated in the corresponding period of 2024 to **HK$415,707 thousand** used[42](index=42&type=chunk) - Net cash from financing activities turned from **HK$408,398 thousand** used in the corresponding period of 2024 to **HK$448,667 thousand** generated, primarily due to increased proceeds from loans and borrowings[42](index=42&type=chunk) [Notes to the Unaudited Interim Financial Report](index=19&type=section&id=Notes%20to%20the%20Unaudited%20Interim%20Financial%20Report) [1. General](index=19&type=section&id=1.%20General) The Company is a public limited company incorporated in Hong Kong, listed on the HKEX Main Board, with Hong Kong HNA Industrial Group Co., Limited as its direct parent - The Company is a public limited company incorporated in Hong Kong, with its shares listed on the Main Board of The Stock Exchange of Hong Kong Limited[47](index=47&type=chunk)[51](index=51&type=chunk) - Hong Kong HNA Industrial Group Co., Limited is the direct parent company of the Company, and Hainan HNA No. 2 Trust Management Services Co., Limited is the intermediate parent company[47](index=47&type=chunk)[51](index=51&type=chunk) [2. Basis of Preparation](index=19&type=section&id=2.%20Basis%20of%20Preparation) The interim financial report adheres to Listing Rules and HKAS 34, applying consistent accounting policies with the 2024 audited annual consolidated financial statements, which received an unqualified auditor's opinion - The interim financial report has been prepared in accordance with the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Hong Kong Accounting Standard 34 "Interim Financial Reporting"[48](index=48&type=chunk)[52](index=52&type=chunk) - Except for changes in accounting policies expected to be reflected in the 2025 annual consolidated financial statements, the interim financial report has been prepared in accordance with the same accounting policies adopted in the 2024 annual consolidated financial statements[49](index=49&type=chunk)[52](index=52&type=chunk) - The comparative financial information for the financial year ended December 31, 2024, is derived from the consolidated financial statements filed with the Registrar of Companies, and the auditor's report was unqualified[54](index=54&type=chunk)[55](index=55&type=chunk)[56](index=56&type=chunk) [3. Changes in Accounting Policies](index=21&type=section&id=3.%20Changes%20in%20Accounting%20Policies) The Group applied HKAS 21 amendments regarding exchange rate changes, which had no material impact due to a lack of relevant foreign currency transactions, and no other new standards were adopted - The Group has applied the amendments to Hong Kong Accounting Standard 21 "The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability"[57](index=57&type=chunk)[59](index=59&type=chunk) - As the Group did not enter into any foreign currency transactions where a foreign currency is not exchangeable into another currency, these amendments had no material impact on this interim report[57](index=57&type=chunk)[59](index=59&type=chunk) - The Group has not applied any new standards or interpretations that are not yet effective for the current accounting period[58](index=58&type=chunk)[60](index=60&type=chunk) [4. Revenue and Segment Reporting](index=22&type=section&id=4.%20Revenue%20and%20Segment%20Reporting) The Group's revenue primarily derives from commodity trading and related services, with total revenue of **HK$21,764,921 thousand** in H1 2025, where China is the largest customer source, and commodity trading profit before tax significantly increased while logistics services slightly declined - For the six months ended June 30, 2025, the Group's total revenue was **HK$21,764,921 thousand**, an increase from **HK$20,275,771 thousand** in the corresponding period of 2024[64](index=64&type=chunk) - Commodity trading and related services were the primary source of revenue, contributing **HK$18,484,406 thousand** in H1 2025, accounting for **84.9%** of total revenue[64](index=64&type=chunk) - By customer location, China contributed **HK$15,264,222 thousand** in revenue, making it the largest market[66](index=66&type=chunk) [4. (a) Disaggregation of Revenue](index=22&type=section&id=4.%20(a)%20Disaggregation%20of%20revenue) The Group's revenue primarily comes from commodity trading and related services, contributing **HK$18,484,406 thousand** in H1 2025, with China being the largest revenue source by customer location, followed by Europe and Singapore Revenue by Major Product and Service Line | Product and Service Line | June 30, 2025 (HK$ thousand) | June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Shipping services | 1,737,043 | 1,748,962 | | Logistics services | 739,489 | 761,617 | | Commodity marketing and related services | 18,484,406 | 17,000,820 | | Equipment and facility maintenance services | 359,701 | 320,239 | | Design and construction | – | 735 | | Brokerage services | 354,171 | 317,825 | | Others | 54,978 | 78,200 | | **Total revenue from contracts with customers** | **21,729,788** | **20,228,398** | | Lease income | 35,133 | 47,373 | | **Total revenue** | **21,764,921** | **20,275,771** | Revenue by Customer Location | Region | June 30, 2025 (HK$ thousand) | June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | China | 15,264,222 | 13,897,982 | | Singapore | 1,175,007 | 1,477,156 | | Korea | 576,631 | 577,026 | | Hong Kong SAR, China | 50,395 | 44,322 | | Other Asia Pacific jurisdictions | 1,471,823 | 1,637,331 | | Europe | 2,605,813 | 2,442,830 | | North America | 129,748 | 100,891 | | Africa | 268,467 | 86,972 | | South America | 222,815 | 11,261 | | **Total revenue** | **21,764,921** | **20,275,771** | [4. (b) Segment Revenue and Results](index=24&type=section&id=4.%20(b)%20Segment%20revenue%20and%20results) The Group operates four reportable segments: Logistics Services, Commodity Marketing, Engineering Services, and Financial Services, with commodity marketing showing significant growth in revenue and profit before tax in H1 2025, while logistics services experienced a slight decline - The Group's reportable segments include Logistics Services for warehousing, shipping, freight forwarding and consolidation, and supply chain management services; Commodity Marketing for physical trading and supply chain management of base metal non-ferrous concentrates, primarily copper, lead, zinc, and other minor metals; Engineering Services for management and maintenance of facilities, vehicles, and equipment, supply and installation of engineering products, property management, and design and construction of logistics properties; and Financial Services for providing financial brokerage and asset management services[69](index=69&type=chunk)[70](index=70&type=chunk)[71](index=71&type=chunk)[72](index=72&type=chunk)[74](index=74&type=chunk)[75](index=75&type=chunk)[76](index=76&type=chunk)[77](index=77&type=chunk) Reportable Segment Revenue and Profit Before Taxation | Segment | 2025 Revenue (HK$ thousand) | 2024 Revenue (HK$ thousand) | 2025 Profit Before Tax (HK$ thousand) | 2024 Profit Before Tax (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | | Logistics Services | 2,565,348 | 2,634,843 | 103,031 | 107,329 | | Commodity Marketing | 18,484,406 | 17,000,820 | 108,031 | 19,312 | | Engineering Services | 360,996 | 322,283 | 17,522 | 15,025 | | Financial Services | 354,171 | 317,825 | 115,378 | 121,399 | | Eliminations | – | – | (2,903) | (636) | | **Total** | **21,764,921** | **20,275,771** | **341,059** | **262,429** | Reportable Segment Assets and Liabilities | Segment | 2025 Assets (HK$ thousand) | 2024 Assets (HK$ thousand) | 2025 Liabilities (HK$ thousand) | 2024 Liabilities (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | | Logistics Services | 7,273,868 | 6,845,436 | 3,997,907 | 3,847,464 | | Commodity Marketing | 8,399,614 | 7,811,639 | 7,038,117 | 6,566,517 | | Engineering Services | 515,268 | 467,414 | 272,498 | 256,309 | | Financial Services | 13,154,428 | 12,123,138 | 11,873,091 | 11,000,706 | | Eliminations | (308,158) | (263,789) | (306,350) | (264,847) | | **Total** | **29,035,020** | **26,983,838** | **22,875,263** | **21,406,149** | [4. (c) Reconciliation of Reportable Segment Profit Before Taxation](index=27&type=section&id=4.%20(c)%20Reconciliation%20of%20reportable%20segment%20profit%20before%20taxation) This section reconciles reportable segment profit before taxation to the Group's total profit before taxation, indicating that net exchange gains positively impacted H1 2025 profit, while finance costs and unallocated expenses had a negative effect Reconciliation of Reportable Segment Profit Before Taxation | Item | June 30, 2025 (HK$ thousand) | June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Reportable segment profit before taxation | 341,059 | 262,429 | | Unallocated amounts: | | | | Net exchange gains/(losses) | 41,660 | (17,984) | | Net gains on financial instruments at fair value through profit or loss | – | 351 | | Finance costs | (18,510) | (17,966) | | Depreciation of right-of-use assets | (1,809) | (1,408) | | Unallocated income and gains | 4,881 | 13,359 | | Unallocated expenses | (40,044) | (36,793) | | **Profit before taxation** | **327,237** | **201,988** | [4. (d) Information about Major Customers](index=27&type=section&id=4.%20(d)%20Information%20about%20major%20customers) For the six months ended June 30, 2025 and 2024, no single customer contributed 10% or more to the Group's consolidated revenue - For the six months ended June 30, 2025 and 2024, no single customer contributed 10% or more to the Group's consolidated revenue[83](index=83&type=chunk)[84](index=84&type=chunk) [5. Other Net Gains/(Losses)](index=28&type=section&id=5.%20Other%20Net%20Gains/(Losses)) For the six months ended June 30, 2025, the Group recorded other net gains of **HK$18,115 thousand**, a significant improvement from a **HK$52,690 thousand** loss in the prior year, primarily driven by increased net exchange gains Other Net Gains/(Losses) | Item | June 30, 2025 (HK$ thousand) | June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Net (losses)/gains on disposal of property, plant and equipment | (266) | 1,974 | | Net gains on disposal of subsidiaries, associates and joint ventures | 1,823 | 12 | | Net exchange gains/(losses) | 18,976 | (13,316) | | Reversal/(recognition) of impairment losses on trade and other receivables | 1,064 | (724) | | Net (losses)/gains on financial instruments at fair value through profit or loss | (171) | 368 | | Others | (3,311) | (41,004) | | **Total** | **18,115** | **(52,690)** | - Net exchange gains turned from a loss of **HK$13,316 thousand** in the corresponding period of 2024 to a gain of **HK$18,976 thousand** in the corresponding period of 2025, which is the main factor for the improvement[87](index=87&type=chunk) [6. Finance Costs](index=28&type=section&id=6.%20Finance%20Costs) For the six months ended June 30, 2025, the Group's finance costs slightly decreased to **HK$296,942 thousand** from **HK$306,603 thousand** in the prior year, primarily due to reduced interest expenses on bank borrowings and other financing Details of Finance Costs | Item | June 30, 2025 (HK$ thousand) | June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Interest expense on bank borrowings and other financing | 160,133 | 166,830 | | Interest expense on lease liabilities | 45,274 | 47,769 | | Other interest expenses | 35,925 | 42,302 | | Other finance costs | 25,457 | 21,875 | | Bank charges | 30,153 | 27,827 | | **Total** | **296,942** | **306,603** | - Interest expense on bank borrowings and other financing decreased from **HK$166,830 thousand** in the corresponding period of 2024 to **HK$160,133 thousand** in the corresponding period of 2025[89](index=89&type=chunk) [7. Profit Before Taxation](index=29&type=section&id=7.%20Profit%20Before%20Taxation) For the six months ended June 30, 2025, the Group's profit before taxation significantly increased to **HK$327,237 thousand** from **HK$201,988 thousand** in the prior year, influenced by higher staff costs, depreciation, amortization, and lower interest income Components of Profit Before Taxation | Item | June 30, 2025 (HK$ thousand) | June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Staff costs (including directors' emoluments) | 769,372 | 726,374 | | Depreciation of property, plant and equipment | 111,064 | 107,027 | | Depreciation of right-of-use assets | 149,013 | 154,329 | | Amortisation of intangible assets | 14,907 | 14,804 | | Cost of inventories sold | 16,998,247 | 15,910,719 | | Interest income | (238,635) | (275,810) | - Staff costs (including directors' emoluments) increased from **HK$726,374 thousand** in the corresponding period of 2024 to **HK$769,372 thousand** in the corresponding period of 2025[90](index=90&type=chunk) - Interest income decreased from **HK$275,810 thousand** in the corresponding period of 2024 to **HK$238,635 thousand** in the corresponding period of 2025[90](index=90&type=chunk) [8. Income Tax Expense](index=30&type=section&id=8.%20Income%20Tax%20Expense) For the six months ended June 30, 2025, the Group's total income tax expense significantly decreased to **HK$26,857 thousand** from **HK$65,541 thousand** in the prior year, primarily due to adjustments for prior year over-provision and deferred tax recognition Details of Income Tax Expense | Item | June 30, 2025 (HK$ thousand) | June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Current tax – Provision for the period – Overseas income tax | 64,148 | 59,134 | | Current tax – (Over-provision)/under-provision in prior years | (15,068) | 10,654 | | Deferred tax credited for the period | (22,785) | (5,075) | | Withholding tax | 562 | 828 | | **Total income tax expense** | **26,857** | **65,541** | - In H1 2025, the tax adjustment for prior years was an over-provision of **HK$15,068 thousand**, compared to an under-provision of **HK$10,654 thousand** in the corresponding period of 2024[92](index=92&type=chunk) - Deferred tax credited for the period increased from **HK$5,075 thousand** in the corresponding period of 2024 to **HK$22,785 thousand** in the corresponding period of 2025[92](index=92&type=chunk) - No provision for Hong Kong Profits Tax was made as the Group did not generate any assessable profits in Hong Kong for both periods[92](index=92&type=chunk)[94](index=94&type=chunk) [9. Dividend](index=31&type=section&id=9.%20Dividend) For the six months ended June 30, 2025 and 2024, the Company neither paid nor proposed any dividends to ordinary shareholders, with no dividends proposed after the reporting period - The Company did not pay or propose any dividends to ordinary shareholders for the six months ended June 30, 2025 and 2024[95](index=95&type=chunk)[97](index=97&type=chunk) - No dividends were proposed after the end of the reporting period[95](index=95&type=chunk)[97](index=97&type=chunk) [10. Earnings Per Share](index=31&type=section&id=10.%20Earnings%20Per%20Share) For the six months ended June 30, 2025, the Company's basic and diluted earnings per share significantly increased to **2.48 HK cents** from **1.06 HK cents** in the prior year, with diluted earnings per share being identical to basic earnings due to no potentially dilutive ordinary shares Earnings Per Share Calculation | Item | June 30, 2025 (HK$ thousand) | June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Profit attributable to owners of the Company | 282,344 | 120,860 | | Weighted average number of ordinary shares in issue | 11,399,996,101 | 11,399,996,101 | | **Basic and diluted earnings per share (HK cents)** | **2.48** | **1.06** | - The calculation of basic earnings per share is based on the profit attributable to owners of the Company and the weighted average number of ordinary shares in issue during the period[96](index=96&type=chunk)[104](index=104&type=chunk) - No adjustment has been made to the basic earnings per share amount for dilution as the Company had no potentially dilutive ordinary shares[101](index=101&type=chunk)[103](index=103&type=chunk) [11. Property, Plant and Equipment and Right-of-Use Assets](index=32&type=section&id=11.%20Property,%20Plant%20and%20Equipment%20and%20Right-of-Use%20Assets) For the six months ended June 30, 2025, the Group acquired **HK$52,782 thousand** in property, plant and equipment, including **HK$31,087 thousand** in construction in progress, and recognized **HK$70,013 thousand** in right-of-use assets through new and renewed lease agreements - For the six months ended June 30, 2025, the Group acquired property, plant and equipment at a cost of **HK$52,782 thousand**, an increase from **HK$30,430 thousand** in the corresponding period of 2024[105](index=105&type=chunk)[108](index=108&type=chunk) - This amount includes construction in progress of **HK$31,087 thousand**, a significant increase from **HK$5,784 thousand** in the corresponding period of 2024[105](index=105&type=chunk)[108](index=108&type=chunk) - The Group renewed several lease agreements and entered into new lease agreements, recognizing right-of-use assets of **HK$70,013 thousand**, an increase from **HK$36,286 thousand** in the corresponding period of 2024[106](index=106&type=chunk)[108](index=108&type=chunk) [12. Trade Receivables](index=32&type=section&id=12.%20Trade%20Receivables) As of June 30, 2025, the Group's total trade receivables slightly decreased to **HK$3,188,469 thousand** from **HK$3,363,238 thousand** at December 31, 2024, with trade receivables containing provisional pricing features being the largest component, and all expected to be recovered within one year Details of Trade Receivables | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade debtors and bills receivable measured at amortised cost | 863,941 | 877,989 | | Less: Loss allowance | (25,623) | (26,820) | | Trade receivables containing provisional pricing features (measured at fair value through profit or loss) | 2,350,151 | 2,512,069 | | **Total** | **3,188,469** | **3,363,238** | Ageing Analysis of Trade Receivables | Ageing | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | 0–90 days | 3,081,049 | 3,233,932 | | 91–180 days | 72,327 | 114,232 | | 181–365 days | 33,352 | 13,806 | | Over 1 year | 1,741 | 1,268 | | **Total** | **3,188,469** | **3,363,238** | - All trade receivables are expected to be recovered within one year[113](index=113&type=chunk) - As of June 30, 2025, trade receivables from associates, joint ventures, and other related parties were **HK$15,778 thousand**, **HK$2,722 thousand**, and **HK$4,994 thousand** respectively, all showing an increase compared to December 31, 2024[114](index=114&type=chunk) [13. Cash and Cash Equivalents](index=34&type=section&id=13.%20Cash%20and%20Cash%20Equivalents) As of June 30, 2025, the Group's cash and bank balances increased to **HK$2,343,387 thousand** from **HK$2,271,537 thousand** at December 31, 2024, with cash and cash equivalents in the condensed consolidated statement of cash flows totaling **HK$2,338,566 thousand** after deducting bank overdrafts Details of Cash and Cash Equivalents | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Cash and bank balances | 2,343,387 | 2,271,537 | | Less: Bank overdrafts | (4,821) | (7,463) | | **Cash and cash equivalents in condensed consolidated statement of cash flows** | **2,338,566** | **2,264,074** | - Cash and bank balances increased, while bank overdrafts decreased[117](index=117&type=chunk) [14. Trade and Other Payables](index=35&type=section&id=14.%20Trade%20and%20Other%20Payables) As of June 30, 2025, the Group's total trade and other payables slightly increased to **HK$14,203,479 thousand** from **HK$13,820,292 thousand** at December 31, 2024, with a significant increase in amounts allocated to customers and most payables aged within 90 days Details of Trade and Other Payables | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade payables and bills payable (measured at amortised cost) | 400,556 | 398,857 | | Trade payables and bills payable (containing provisional pricing features and measured at fair value through profit or loss) | 1,045,847 | 1,487,503 | | Other payables, deposits received and accrued expenses | 12,830,162 | 12,002,197 | | Less: Non-current portion | (73,086) | (68,265) | | **Total** | **14,203,479** | **13,820,292** | Ageing Analysis of Trade Payables and Bills Payable | Ageing | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | 0–90 days | 1,340,917 | 1,746,286 | | 91–180 days | 44,289 | 61,434 | | 181–365 days | 40,999 | 62,588 | | 1–2 years | 14,821 | 10,688 | | Over 2 years | 5,377 | 5,364 | | **Total** | **1,446,403** | **1,886,360** | - As of June 30, 2025, the balance included amounts allocated to customers of **HK$11,312,680 thousand**, an increase from **HK$10,325,252 thousand** at December 31, 2024[122](index=122&type=chunk) [15. Loans and Borrowings](index=37&type=section&id=15.%20Loans%20and%20Borrowings) As of June 30, 2025, the Group's total loans and borrowings amounted to **HK$6,726,974 thousand**, with **HK$5,928,246 thousand** classified as current liabilities, primarily revolving short-term trade financing, and most loans are secured by property, plant and equipment, bank balances, trade receivables, and inventories Details of Loans and Borrowings | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | **Non-current** | | | | Acceptance bills | 666,000 | 666,000 | | Secured bank loans | 132,728 | 121,821 | | **Current** | | | | Perpetual notes | 361,072 | 357,351 | | Secured bank loans | 566,256 | 576,896 | | Revolving short-term trade financing | 4,728,389 | 3,894,216 | | E-bonds | 267,708 | 300,814 | | Secured bank overdrafts | 4,821 | 7,463 | | **Total** | **6,726,974** | **5,924,561** | - The principal amount of acceptance bills is **HK$666,000 thousand**, bearing interest at an annual rate of **5.5%**, and is fully payable on July 18, 2028[126](index=126&type=chunk) - The perpetual notes, with a total principal amount of **US$46,000 thousand**, are unsecured, interest-free, guaranteed by an affiliate of HNA Trust Management, and classified as "current liabilities" under current accounting standards[129](index=129&type=chunk) Details of Pledged Assets | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Property, plant and equipment | 1,708,952 | 1,613,452 | | Pledged bank balances and time deposits | 215,579 | 193,291 | | Trade and other receivables | 897,124 | 1,072,512 | | Inventories | 3,996,561 | 3,183,315 | | **Total** | **6,818,216** | **6,062,570** | [16. Share Capital](index=39&type=section&id=16.%20Share%20Capital) As of June 30, 2025, the Company had **11,399,996,101** issued and fully paid ordinary shares, with share capital amounting to **HK$4,731,480 thousand**; ordinary shares have no par value under the Hong Kong Companies Ordinance and rank equally for dividends and residual assets Details of Share Capital | Item | Number of Shares | Amount (HK$ thousand) | | :--- | :--- | :--- | | Issued and fully paid ordinary shares (as of June 30, 2025) | 11,399,996,101 | 4,731,480 | - In accordance with Section 135 of the Hong Kong Companies Ordinance, the Company's ordinary shares have no par value[134](index=134&type=chunk)[135](index=135&type=chunk) - Holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at general meetings of the Company; all ordinary shares rank equally with regard to the Company's residual assets[135](index=135&type=chunk)[136](index=136&type=chunk) [17. Capital Commitment](index=40&type=section&id=17.%20Capital%20Commitment) As of June 30, 2025, the Group's contracted but unprovided capital expenditure for property, plant and equipment acquisition decreased to **HK$16,494 thousand** from **HK$21,507 thousand** at December 31, 2024 Details of Capital Commitment | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Contracted but unprovided capital expenditure for the acquisition of property, plant and equipment | 16,494 | 21,507 | - The amount of capital commitment has decreased, indicating a reduction in future capital expenditure pressure[138](index=138&type=chunk) [18. Contingent Liabilities](index=40&type=section&id=18.%20Contingent%20Liabilities) The Group faces various litigation, regulatory, and arbitration matters in its ordinary course of business, which management believes will not materially impact the Group's financial position upon resolution - The Group is subject to various litigation, regulatory, and arbitration matters in the ordinary course of its business[139](index=139&type=chunk)[140](index=140&type=chunk) - Management believes that the resolution of these matters will not have a material adverse effect on the Group's financial position[139](index=139&type=chunk)[140](index=140&type=chunk) [19. Fair Value Measurements of Financial Instruments](index=41&type=section&id=19.%20Fair%20Value%20Measurements%20of%20Financial%20Instruments) The Group employs a three-level hierarchy for fair value measurements of financial instruments, with most derivative financial assets and liabilities, and trade receivables and payables with provisional pricing features, classified as Level 2, while unlisted equity securities use Level 3 valuation influenced by revenue growth rates and discount rates - Fair value measurements are categorized into three levels: Level 1 (quoted prices in active markets), Level 2 (observable inputs other than Level 1), and Level 3 (significant unobservable inputs)[144](index=144&type=chunk)[145](index=145&type=chunk) - As of June 30, 2025, total derivative financial assets amounted to **HK$270,974 thousand**, with most being commodity futures and forward contracts, primarily classified as Level 1 and Level 2[147](index=147&type=chunk) - Trade receivables and payables containing provisional pricing features are primarily classified as Level 2, with their fair values based on month-end spot and forward prices[147](index=147&type=chunk)[154](index=154&type=chunk) - Unlisted equity securities within other financial assets are classified as Level 3, with their fair values based on discounted cash flow models, influenced by revenue growth rates and discount rates[147](index=147&type=chunk)[158](index=158&type=chunk) [19. (a) Financial Assets and Liabilities Measured at Fair Value](index=41&type=section&id=19.%20(a)%20Financial%20assets%20and%20liabilities%20measured%20at%20fair%20value) The Group's financial assets and liabilities are measured at fair value, primarily including derivative financial instruments, trade receivables and payables with provisional pricing features, and other financial assets, categorized into Level 1, Level 2, and Level 3 based on the observability of their input data Financial Assets and Liabilities Measured at Fair Value (June 30, 2025) | Item | Level 1 (HK$ thousand) | Level 2 (HK$ thousand) | Level 3 (HK$ thousand) | Total (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | | **Financial Assets** | | | | | | Interest rate swaps | – | 2,346 | – | 2,346 | | Commodity futures | 157,147 | 90,203 | – | 247,350 | | Commodity forward contracts | 9,839 | 8,191 | – | 18,030 | | Currency forward contracts | – | 1,401 | – | 1,401 | | Currency options | – | 1,847 | – | 1,847 | | Total derivative financial assets | 166,986 | 103,988 | – | 270,974 | | Trade receivables containing provisional pricing features | – | 2,350,151 | – | 2,350,151 | | Other financial assets | 599 | 253 | 27,877 | 28,729 | | **Financial Liabilities** | | | | | | Commodity futures | (252,035) | (365,387) | – | (617,422) | | Commodity forward contracts | (25) | (444) | – | (469) | | Commodity options | – | (599) | – | (599) | | Currency forward contracts | – | (2,654) | – | (2,654) | | Currency options | – | (1,864) | – | (1,864) | | Total derivative financial liabilities | (252,060) | (370,948) | – | (623,008) | | Trade payables containing provisional pricing features | – | (1,045,847) | – | (1,045,847) | - There were no transfers between Level 1, Level 2, or Level 3 for the six months ended June 30, 2025 and 2024[158](index=158&type=chunk)[161](index=161&type=chunk) [19. (b) Financial Assets and Liabilities Measured at Cost or Amortised Cost](index=46&type=section&id=19.%20(b)%20Financial%20assets%20and%20liabilities%20measured%20at%20cost%20or%20amortised%20cost) As of June 30, 2025, and December 31, 2024, there were no material differences between the carrying amounts and fair values of the Group's financial assets and liabilities measured at cost or amortized cost - As of June 30, 2025, and December 31, 2024, there were no material differences between the carrying amounts and fair values of the Group's financial assets and liabilities measured at cost or amortised cost[159](index=159&type=chunk)[160](index=160&type=chunk) [20. Material Related Party Transactions](index=47&type=section&id=20.%20Material%20Related%20Party%20Transactions) The Group engaged in significant related party transactions, including sales and purchases of goods and/or services with entities in which directors have interests, associates, and joint ventures, as well as interest expenses paid to related parties and key management personnel compensation - Related parties refer to affiliates of HNA Trust Management[169](index=169&type=chunk)[170](index=170&type=chunk) [20. (a) Income](index=47&type=section&id=20.%20(a)%20Income) For the six months ended June 30, 2025, the Group's total income from sales of goods and/or services to entities in which directors have interests, associates, and joint ventures decreased to **HK$67,558 thousand** from **HK$83,631 thousand** in the prior year Details of Related Party Transaction Income | Item | June 30, 2025 (HK$ thousand) | June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Sales of goods and/or services to entities in which directors have interests | 20,490 | 22,506 | | Sales of goods and/or services to associates | 34,582 | 38,359 | | Sales of goods and/or services to joint ventures | 12,436 | 22,766 | | **Total** | **67,508** | **83,631** | [20. (b) Expense](index=48&type=section&id=20.%20(b)%20Expense) For the six months ended June 30, 2025, the Group's total expenses for goods and/or services purchased from entities in which directors have interests, associates, and joint ventures decreased to **HK$26,433 thousand** from **HK$38,706 thousand** in the prior year, with interest expenses paid to related parties totaling **HK$18,315 thousand** Details of Related Party Transaction Expenses | Item | June 30, 2025 (HK$ thousand) | June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Purchases of goods and/or services from entities in which directors have interests | 6,132 | 11,725 | | Purchases of goods and/or services from associates | 8,793 | 8,013 | | Purchases of goods and/or services from joint ventures | 11,508 | 18,968 | | Interest expense to related parties | 18,315 | 17,900 | | **Total** | **44,748** | **56,606** | [20. (c) Compensation of Key Management Personnel](index=49&type=section&id=20.%20(c)%20Compensation%20of%20key%20management%20personnel) For the six months ended June 30, 2025, short-term benefits for key management personnel (Group directors) increased to **HK$2,489 thousand** from **HK$1,872 thousand** in the prior year, with executive directors' remuneration determined by the Remuneration Committee based on performance and market trends Details of Key Management Personnel Compensation | Item | June 30, 2025 (HK$ thousand) | June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Short-term benefits | 2,489 | 1,872 | - Executive directors' remuneration is determined by the Remuneration Committee based on individual performance and market trends[173](index=173&type=chunk) [21. Events After the Reporting Period](index=49&type=section&id=21.%20Events%20After%20the%20Reporting%20Period) On July 17, 2025, MRI Trading AG, an indirect wholly-owned subsidiary, entered into a sales contract with GTS Shipping Management Co. Limited for the purchase of electrolytic copper, with a consideration not exceeding **US$5,000,000**, constituting a one-off connected transaction under Listing Rule 14A - On July 17, 2025, MRI Trading AG, an indirect wholly-owned subsidiary of the Company, entered into a sales contract with GTS Shipping Management Co. Limited, where GTS Shipping agreed to purchase electrolytic copper from MRI Trading[174](index=174&type=chunk)[176](index=176&type=chunk) - The contract consideration does not exceed **US$5,000,000** (approximately **HK$39,000,000**)[174](index=174&type=chunk)[176](index=176&type=chunk) - GTS Shipping is an indirect subsidiary of HNA Trust Management, the controlling shareholder of the Company, thus this transaction constitutes a one-off connected transaction under Chapter 14A of the Listing Rules[175](index=175&type=chunk)[176](index=176&type=chunk) [Management Discussion and Analysis](index=50&type=section&id=Management%20Discussion%20and%20Analysis) [Overview](index=50&type=section&id=Overview) Despite a challenging global economic outlook in H1 2025, marked by trade barriers, financial tightening, and geopolitical tensions, the Group's revenue grew to **HK$21,764,921 thousand** and net profit increased to **HK$300,380 thousand**, primarily driven by strong commodity trading performance and logistics services tax credits - The global outlook for 2025 is increasingly challenging, with trade barriers, tighter financial conditions, weakening business and consumer confidence, and rising policy uncertainty posing significant risks to economic growth[178](index=178&type=chunk) - For the six months ended June 30, 2025, the Group's revenue was **HK$21,764,921 thousand**, and net profit was **HK$300,380 thousand**, representing significant growth compared to the same period last year[180](index=180&type=chunk) - The increase in net profit is primarily attributable to the strong performance of concentrate products (commodity marketing segment) and tax credits recognized in the logistics services segment[180](index=180&type=chunk) [Logistics Services](index=50&type=section&id=Logistics%20Services) The Logistics Services segment experienced a **2%** revenue decrease to **HK$2,530,215 thousand** and a **4%** decline in profit before tax to **HK$103,031 thousand**, primarily due to returned leased warehouses, reduced warehousing and integrated logistics business, and freight market challenges from tariffs and geopolitical conflicts - Logistics services revenue decreased by **2%** from **HK$2,587,470 thousand** to **HK$2,530,215 thousand**[196](index=196&type=chunk) - Profit before tax decreased by **4%** from **HK$107,329 thousand** to **HK$103,031 thousand**[196](index=196&type=chunk) - The decline in revenue was primarily due to the return of certain expired leased warehouses, reduced warehousing and integrated logistics business, and a deteriorating freight market caused by US tariffs and the Israel-Iran conflict[196](index=196&type=chunk) [Warehousing and Integrated Logistics](index=50&type=section&id=Warehousing%20and%20Integrated%20Logistics) Facing challenges in the Singapore logistics market, the Group focused on cost control and asset optimization, strategically investing in digital and green logistics, while a petrochemical downturn impacted ISO tank container volumes, yet cold chain logistics maintained its leading position with near **100%** warehouse utilization - The Singapore logistics market faced ongoing challenges and an uncertain outlook in 2025, with the Group focusing on cost control, asset optimization, and flexible operations[181](index=181&type=chunk)[183](index=183&type=chunk) - The downturn in the petrochemical and chemical industries led to a sharp decline in ISO tank container volumes, resulting in reduced throughput and sustained pricing pressure[181](index=181&type=chunk)[183](index=183&type=chunk) - Cold chain logistics advanced its strategic objectives by consolidating its leading position in premium, high-security warehousing and focusing on converting pipeline opportunities and expanding IoT applications[184](index=184&type=chunk)[189](index=189&type=chunk) - Despite market uncertainties, the Group's warehouses currently operate at nearly **100%** utilization, with occupancy rates expected to remain stable over the next 12 months[185](index=185&type=chunk)[189](index=189&type=chunk) [Freight Logistics](index=51&type=section&id=Freight%20Logistics) The H1 2025 freight market was volatile due to Middle East conflicts and Red Sea attacks, leading to significant declines in sea freight rates and impacts from US-China tariffs and a weaker USD, prompting the Group to expand into new regions and integrate Greater Bay Area offices while maintaining stable performance - The freight market remained volatile in H1 2025 due to ongoing Middle East conflicts and increased Red Sea attacks, disrupting carrier freight rates and capacity[186](index=186&type=chunk)[190](index=190&type=chunk) - Sea freight rates significantly decreased compared to 2024, coupled with widespread US tariffs against China, Europe, and Southeast Asia, harming global supply chains and freight volumes[186](index=186&type=chunk)[190](index=190&type=chunk) - The Group is expanding its business into several new regions and integrating its Shenzhen, Hong Kong, and Guangzhou offices into the Greater Bay Area to better integrate into the Pearl River Delta economic landscape[187](index=187&type=chunk)[190](index=190&type=chunk) - Despite ongoing challenges, the Group's performance remained stable compared to the same period last year, and it maintains cautious optimism for H2 2025 results[188](index=188&type=chunk)[191](index=191&type=chunk) [Commodity Logistics](index=52&type=section&id=Commodity%20Logistics) Commodity logistics delivered strong performance in H1 2025, exceeding revenue targets despite West African cocoa supply disruptions and record prices, leveraging core strengths in warehousing, freight, and inventory management, alongside market expansion in Turkey and Malaysia, with future growth planned through operational excellence and targeted expansion - In H1 2025, commodity logistics demonstrated strong performance and resilience in a challenging market[193](index=193&type=chunk)[199](index=199&type=chunk) - The Group's core strengths in warehousing, freight, and inventory management for metals, minerals, and soft commodities, combined with strategic international expansion, led by Turkey's performance and growth in the Malaysian market, helped the Group exceed revenue targets amidst market volatility[193](index=193&type=chunk)[199](index=199&type=chunk) - Severe supply disruptions in the West African cocoa market led to record-high prices and underutilization of warehousing capacity, squeezing industry-wide profits[194](index=194&type=chunk)[199](index=199&type=chunk) - Looking ahead, the Group is well-prepared to sustain continuous growth through operational excellence, cost control, and targeted expansion[195](index=195&type=chunk)[199](index=199&type=chunk) [Commodity Marketing](index=52&type=section&id=Commodity%20Marketing) In H1 2025, Commodity Marketing achieved outstanding performance, with profit before tax surging **459%** to **HK$108,031 thousand** and revenue growing **9%** to **HK$18,484,406 thousand**, driven by a tight copper concentrate market, rigorous execution, operational efficiency, and strategic expansion, including enhanced blending capabilities and expanded customer base - Commodity marketing delivered outstanding performance in H1 2025, with profit before tax increasing by **459%** to **HK$108,031 thousand** and revenue growing by **9%** to **HK$18,484,406 thousand**[197](index=197&type=chunk)[201](index=201&type=chunk) - These exceptional results reflect the Group's ability to fully capitalize on the extremely tight copper concentrate market through rigorous execution, operational efficiency, and continuous strategic expansion[197](index=197&type=chunk)[201](index=201&type=chunk) - The Group strengthened its blending capabilities to meet smelter demand, expanded its customer base, developed new regions and commodities, and improved logistics delivery reliability and cost control in Africa[198](index=198&type=chunk)[201](index=201&type=chunk) - Looking ahead, commodity marketing will continue to focus on scaling operations in key growth areas, deepening energy trading businesses, and exploring new mineral sectors[202](index=202&type=chunk)[207](index=207&type=chunk) [Financial Services](index=53&type=section&id=Financial%20Services) Financial Services revenue grew **11%** to **HK$354,171 thousand** due to increased trading volume from market volatility, but profit before tax decreased **5%** to **HK$115,378 thousand** due to lower interest income from declining rates; the Group expanded its client base and secured a Major Payment Institution license in Singapore, driving Southeast Asian retail market expansion and digital transformation - Financial services revenue increased by **11%** to **HK$354,171 thousand**, primarily due to increased trading volume driven by significant market volatility[203](index=203&type=chunk)[208](index=208&type=chunk) - Profit before tax decreased by **5%** to **HK$115,378 thousand**, attributed to lower interest income resulting from declining interest rates[203](index=203&type=chunk)[208](index=208&type=chunk) - The total client equity fund in the core futures and options business increased by **8%** in H1 2025, and the Group was awarded the "Most Active Commodity Futures Broker (No. 1)" for 2024 by the Singapore Exchange Commodities Division[204](index=204&type=chunk)[208](index=208&type=chunk) - The Group has received in-principle approval for a Major Payment Institution license from the Monetary Authority of Singapore under the Payment Services Act 2019, allowing it to enter Singapore's regulated digital payment token market[205](index=205&type=chunk)[208](index=208&type=chunk) - The Group is actively expanding into the Southeast Asian retail market and prioritizing digital transformation across the Group, focusing on automation, operational efficiency, and digital customer touchpoints[206](index=206&type=chunk)[209](index=209&type=chunk) [Engineering Services](index=54&type=section&id=Engineering%20Services) In H1 2025, Engineering Services revenue grew **12%** to **HK$360,996 thousand** and profit before tax increased **17%** to **HK$17,522 thousand**, driven by improved profit margins; the Group secured two significant contracts with the Civil Aviation Authority of Singapore totaling **S$56.5 million**, with stable performance expected in the second half - In H1 2025, engineering services revenue increased by **12%** to **HK$360,996 thousand**, and profit before tax increased by **17%** to **HK$17,522 thousand**, a significant rise from the same period last year, primarily due to improved profit margins[211](index=211&type=chunk)[216](index=216&type=chunk) - The Group successfully secured two significant contracts with the Civil Aviation Authority of Singapore, totaling **S$56.5 million** (approximately **HK$348,800 thousand**), for a 20-month contract for the replacement of mechanical and electrical systems and facilities, and a 5-year contract for the maintenance of mechanical and electrical systems, respectively[212](index=212&type=chunk)[216](index=216&type=chunk) - The business demonstrated strong operational performance in H1 2025, with performance expected to remain stable in the second half of the year[213](index=213&type=chunk)[217](index=217&type=chunk) [Liquidity, Financial Resources and Financing Activities](index=54&type=section&id=Liquidity,%20Financial%20Resources%20and%20Financing%20Activities) As of June 30, 2025, the Group held **HK$2,343,387 thousand** in cash and cash equivalents, with total loans and borrowings of **HK$6,726,974 thousand**, largely current liabilities, and managed foreign exchange risk through natural hedging, maintaining approximately **100%** commodity inventory hedging, resulting in a **17.4%** gearing ratio - As of June 30, 2025, the Group had cash and cash equivalents of **HK$2,343,387 thousand**, an increase from **HK$2,271,537 thousand** at December 31, 2024[214](index=214&type=chunk)[218](index=218&type=chunk) - Total loans and borrowings amounted to **HK$6,726,974 thousand**, of which **HK$5,928,246 thousand** are repayable within one year, including revolving short-term trade financing of **HK$4,728,389 thousand**[214](index=214&type=chunk)[218](index=218&type=chunk) - The Group's loans and borrowings of **HK$5,432,194 thousand** are secured by property, plant and equipment, bank balances and time deposits, trade and other receivables, and inventories, with pledged assets totaling **HK$6,818,216 thousand**[214](index=214&type=chunk)[218](index=218&type=chunk) - As of June 30, 2025, the Group's total debt was **HK$4,220,022 thousand**, consolidated net debt was **HK$1,661,056 thousand**, and the gearing ratio was **17.4%** (December 31, 2024: **18.6%**)[221](index=221&type=chunk)[226](index=226&type=chunk) - The Group maintains an appropriate level of foreign currency borrowings for natural hedging to minimize foreign exchange risk, with a hedging level of approximately **100%** of total commodity inventories[222](index=222&type=chunk)[223](index=223&type=chunk)[226](index=226&type=chunk)[227](index=227&type=chunk) [Material Acquisitions and Disposals of Subsidiaries, Associated Companies and Joint Ventures](index=55&type=section&id=Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries,%20Associated%20Companies%20and%20Joint%20Ventures) For the six months ended June 30, 2025, the Company did not undertake any material acquisitions or disposals of subsidiaries, associated companies, or joint ventures - For the six months ended June 30, 2025, the Company did not have any material acquisitions or disposals of subsidiaries, associated companies, or joint ventures[224](index=224&type=chunk)[228](index=228&type=chunk) [Contingent Liabilities](index=56&type=section&id=Contingent%20Liabilities) The Group faces various litigation, regulatory, and arbitration matters in its ordinary course of business, which management believes will not materially impact the Group's financial position upon resolution - The Group is subject to various litigation, regulatory, and arbitration matters in the ordinary course of its business[229](index=229&type=chunk)[233](index=233&type=chunk) - Management believes that the resolution of these matters will not have a material adverse effect on the Group's financial position[229](index=229&type=chunk)[233](index=233&type=chunk) [Employees and Remuneration Policies](index=56&type=section&id=Employees%20and%20Remuneration%20Policies) As of June 30, 2025, the Group, including its associates and joint ventures, had **6,011** employees with total staff costs of **HK$769,372 thousand**; the remuneration policy aims to ensure a fair and competitive compensation package to motivate, retain, and attract talent - As of June 30, 2025, the total number of employees of the Group, together with its associates and joint ventures, was **6,011**, an increase from **5,936** at December 31, 2024[230](index=230&type=chunk)[234](index=234&type=chunk) - Total staff costs (including directors' emoluments) amounted to **HK$769,372 thousand**, an increase from **HK$726,374 thousand** in the corresponding period of 2024[230](index=230&type=chunk)[234](index=234&type=chunk) - The Group's remuneration policy aims to ensure that the overall compensation package is fair and competitive to motivate and retain existing employees and attract potential talent[230](index=230&type=chunk)[234](index=234&type=chunk) [Subsequent Events](index=56&type=section&id=Subsequent%20Events) On July 17, 2025, MRI Trading AG, an indirect wholly-owned subsidiary, entered into a sales contract with GTS Shipping Management Co. Limited for the purchase of electrolytic copper, with a consideration not exceeding **US$5,000,000**, constituting a one-off connected transaction under Listing Rule 14A - On July 17, 2025, MRI Trading AG, an indirect wholly-owned subsidiary of the Company, entered into a sales contract with GTS Shipping Management Co. Limited, where GTS Shipping agreed to purchase electrolytic copper from MRI Trading[231](index=231&type=chunk)[235](index=235&type=chunk) - The contract consideration shall not exceed **US$5,000,000** (equivalent to approximately **HK$39,000,000**)[231](index=231&type=chunk)[235](index=235&type=chunk) - GTS Shipping is an indirect subsidiary of HNA Trust Management, the controlling shareholder of the Company, thus this transaction constitutes a one-off connected transaction under Chapter 14A of the Listing Rules[232](index=232&type=chunk)[235](index=235&type=chunk) [Looking Forward and Our Strategies](index=57&type=section&id=Looking%20Forward%20and%20Our%20Strategies) Amid global economic challenges and opportunities, the Group will focus on core industries, enhance capabilities, foster business synergies, and seek opportunities in China and other developing countries to diversify risk, while also exploring growth in Southeast Asia, Europe, and the Americas to maximize shareholder value - The global economic outlook strengthened in H1 2025, but downside risks from potential tariff increases, heightened uncertainty, and geopolitical tensions persist[236](index=236&type=chunk)[239](index=239&type=chunk) - The Group will continue to focus on core industries, enhance core capabilities, promote further synergy and cooperation among business segments, and seek business opportunities in China and other developing countries to diversify risks[237](index=237&type=chunk)[239](index=239&type=chunk) - The Group has established subsidiaries in the Hainan Free Trade Port and will continue to monitor growth opportunities in global regions such as Southeast Asia, Europe, and the Americas[237](index=237&type=chunk)[239](index=239&type=chunk) - In H2 2025, the Group will further promote internal synergies, continue to expand its global business network, and strive to capture further growth opportunities in Greater China and other global regions to maximize shareholder value[238](index=238&type=chunk)[239](index=239&type=chunk) [Interim Dividend](index=58&type=section&id=Interim%20Dividend) [Interim Dividend](index=58&type=section&id=Interim%20Dividend_Content) The Board of Directors did not declare an interim dividend for the six months ended June 30, 2025, consistent with the same period in 2024 - The Board of Directors did not declare an interim dividend for the six months ended June 30, 2025 (six months ended June 30, 2024: nil)[240](index=240&type=chunk)[244](index=244&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=58&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) [Purchase, Sale or Redemption of the Company's Listed Securities](index=58&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities_Content) During the review period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities on the Stock Exchange or any other securities exchange - During the review period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities on the Stock Exchange or any other securities exchange[241](index=241&type=chunk)[245](index=245&type=chunk) [Directors' and Chief Executives' Interests and Short Positions in Shares, Underlying Shares and Debentures](index=58&type=section&id=Directors'%20and%20Chief%20Executives'%20Interests%20and%20Short%20Positions%20in%20Shares,%20Underlying%20Shares%20and%20Debentures) [Directors' and Chief Executives' Interests and Short Positions in Shares, Underlying Shares and Debentures](index=58&type=section&id=Directors'%20and%20Chief%20Executives'%20Interests%20and%20Short%20Positions%20in%20Shares,%20Underlying%20Shares%20and%20Debentures_Content) As of June 30, 2025, no directors or chief executives held disclosable interests or short positions in the Company's or its associated corporations' shares, underlying shares, or debentures, nor were any rights to subscribe for equity or debt securities granted or exercised - As of June 30, 2025, no directors or chief executives had any interests or short positions in the shares, underlying shares, or debentures of the Company or any of its associated corporations that were required to be recorded in the register kept under Section 352 of the SFO or notified to the Company and the Stock Exchange under the Model Code[242](index=242&type=chunk)[246](index=246&type=chunk) - For the six months ended June 30, 2025, the Company did not grant any rights to subscribe for equity or debt securities of the Company to any directors or chief executives (including their spouses or children under 18), nor did any such persons exercise any such rights[243](index=243&type=chunk)[246](index=246&type=chunk) [Shareholder Interests and Short Positions Discloseable under the SFO](index=59&type=section&id=Interests%20and%20Short%20

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 | 截至月份: | 2025年8月31日 | 狀態: | 新提交 | | --- | --- | --- | --- | | 致：香港交易及結算所有限公司 | | | | | 公司名稱: | CWT International Limited | | | | 呈交日期: | 2025年9月1日 | | | | I. 法定/註冊股本變動 不適用 | | | | FF301 第 1 頁 共 10 頁 v 1.1.1 | 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) | 00521 | 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 | | | | 11,399,996,101 | | 0 | | 11,399,996,101 | | ...

Core Viewpoint - CWT International's subsidiary, Straits Millennium Pte Ltd, has obtained a Major Payment Institution (MPI) license from the Monetary Authority of Singapore, effective from September 1, 2025, allowing it to provide cross-border remittance and digital payment token services [1] Group 1: Company Developments - Straits Millennium Pte Ltd has received principal approval under the Payment Services Act 2019, enabling it to operate as a licensed payment service provider [1] - The MPI license will facilitate the exchange of digital payment tokens with fiat currencies in the financial market [1] Group 2: Strategic Implications - The board believes that the licensed services will enhance connectivity between traditional financial markets and emerging digital asset classes, leveraging the group's expertise in derivatives and commodities [1] - Operating within a compliant and secure ecosystem, Straits Millennium aims to position itself as a trusted financial service provider, addressing the growing demand for specialized access to digital assets [1]

Group 1 - CWT INT'L's subsidiary Straits Millennium Pte Ltd has obtained a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS), effective from September 1, 2025 [1] - The MPI license allows Straits Millennium to provide cross-border remittance services and digital payment token services, facilitating the exchange of digital payment tokens with fiat currencies in the financial market [1] - The board believes that Straits Millennium's licensed services will enhance the connectivity between traditional financial markets and emerging digital asset classes, leveraging the group's expertise in derivatives and commodities [1] Group 2 - The operation of a regulated and efficient platform within a compliant ecosystem positions Straits Millennium as a trusted and mature financial service provider [1] - The company aims to meet the growing demand for specialized digital asset access among clients, complementing its existing trading and investment objectives [1]

Core Viewpoint - CWT INT'L's subsidiary, Straits Millennium Pte Ltd, has obtained a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS), effective from September 1, 2025, allowing it to provide cross-border remittance and digital payment token services [1] Group 1: Company Developments - Straits Millennium Pte Ltd received principle approval under the Payment Services Act 2019 earlier this year [1] - The MPI license enables Straits Millennium to facilitate the exchange of digital payment tokens with fiat currencies in the financial market [1] Group 2: Strategic Implications - The board believes that the licensed services will enhance the connectivity between traditional financial markets and emerging digital asset classes, leveraging the group's expertise in derivatives and commodities [1] - Operating within a regulated and secure ecosystem, Straits Millennium aims to position itself as a trusted provider of mature financial services, addressing the growing demand for specialized access to digital assets [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告之內容概不 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 告全部或任何部份內容而產生或因倚賴該等內容而引致之任何損失承擔任何 責任。 CWT INTERNATIONAL LIMITED （於香港註冊成立之有限公司） （股份代號：521） 內幕消息公告 獲得主要支付機構牌照 王侃 本公告乃由 CWT International Limited（「本公司」，連同其附屬公司統稱 「本集團」）根據香港聯合交易所有限公司證券上市規則（「上市規則」） 第 13.09(2)(a)條和《證券及期貨條例》（香港法例第 571 章）第 XIVA 部下的 內幕消息條文（定義見上市規則）發佈。 本公司董事（「董事」）會（「董事會」）欣然宣佈，本公司非全資附屬公 司兼時瑞金融集團（本集團金融服務業務主體）成員 Straits Millennium Pte Ltd（「時瑞千禧」）已根據《二零一九年支付服務法案》，於今年稍早獲得 新加坡金融管理局（MAS）原則性批准後，正式取得主要支付機構 （「MPI」）牌照，自二零二五年九月一日生效。該主要支付機構牌照能使 時 ...

Core Insights - CWT International (00521) reported a mid-year performance for 2025, with revenue of HKD 21.765 billion, representing a year-on-year increase of 7.34% [1] - Shareholders' profit attributable to the company reached HKD 282 million, marking a significant year-on-year increase of 133.61% [1] - Basic earnings per share were reported at HKD 0.0248 [1] Revenue Performance - The increase in revenue is attributed to the strong performance of mineral products, driven by favorable premium differentials and improved profit margins in the commodity trading segment [1] - The logistics services segment benefited from tax credits recognized in the first half of 2025 [1]

Core Insights - CWT INT'L reported a mid-year performance for 2025 with revenue of HKD 21.765 billion, reflecting a year-on-year increase of 7.34% [1] - The company's net profit attributable to shareholders reached HKD 282 million, marking a significant year-on-year increase of 133.61% [1] - Basic earnings per share were reported at HKD 0.0248 [1] Revenue Performance - The revenue growth was primarily driven by the strong performance of mineral products, attributed to favorable premium differentials and improved profit margins in the commodity trading segment [1] - The logistics services segment benefited from tax credits recognized in the first half of 2025 [1]

[Company Information and Report Overview](index=1&type=section&id=I.%20Company%20Information%20and%20Report%20Overview) CWT International Limited (Stock Code: 521) announced its unaudited interim results for the six months ended June 30, 2025, prepared under HKAS 34 and reviewed by the audit committee [Company Basic Information](index=1&type=section&id=1.1%20Company%20Basic%20Information) CWT International Limited (Stock Code: 521), a Hong Kong-listed company, released its unaudited interim results for the six months ended June 30, 2025, with Hong Kong HNA Industrial Group Co. Limited as its direct parent company - CWT International Limited (Stock Code: **521**) announced its unaudited consolidated interim results for the six months ended June 30, 2025[2](index=2&type=chunk) - The company is a listed company incorporated in Hong Kong, with Hong Kong HNA Industrial Group Co. Limited as its direct parent company[10](index=10&type=chunk) [Basis of Preparation and Accounting Policies](index=7&type=section&id=1.2%20Basis%20of%20Preparation%20and%20Accounting%20Policies) This interim financial report, prepared in accordance with HKAS 34 and Listing Rules, has been reviewed by the Board's audit committee and the company's auditor, with no significant impact from HKAS 21 amendments - This interim financial report is prepared in accordance with the applicable disclosure provisions of the Listing Rules of the Stock Exchange, including compliance with Hong Kong Accounting Standard 34, Interim Financial Reporting, issued by the HKICPA[11](index=11&type=chunk) - This interim financial report has been reviewed by the Board's audit committee and the company's auditor[2](index=2&type=chunk) - The Group has applied the amendments to Hong Kong Accounting Standard 21 issued by the HKICPA in this accounting period for this interim financial report, but these amendments have no significant impact on this interim financial report as the Group has not engaged in any foreign currency transactions where one currency is not exchangeable into another[13](index=13&type=chunk) [Condensed Consolidated Financial Statements](index=1&type=section&id=II.%20Condensed%20Consolidated%20Financial%20Statements) The condensed consolidated financial statements provide a snapshot of the company's financial performance and position, including income, financial position, and cash flows [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=2.1%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, revenue increased by **7.34%** to **HKD 21.765 billion**, and profit for the period surged by **120.15%** to **HKD 300 million**, driven by commodity trading and tax credits Key Data from Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | 2025 June 30 (HKD Thousands) | 2024 June 30 (HKD Thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 21,764,921 | 20,275,771 | 7.34% | | Gross Profit | 997,915 | 860,145 | 16.02% | | Profit Before Tax | 327,237 | 201,988 | 62.99% | | Profit for the Period | 300,380 | 136,447 | 120.15% | | Total Comprehensive Income for the Period | 558,835 | 50,475 | 1007.05% | | Profit for the Period Attributable to Owners of the Company | 282,344 | 120,860 | 133.61% | | Basic Earnings Per Share (HK Cents) | 2.48 | 1.06 | 133.96% | - The increase in net profit was primarily attributable to the excellent performance of concentrate products (favorable premium differences and improved profit margins in the commodity trading segment) and tax credits recognized in the logistics services segment in the first half of 2025[42](index=42&type=chunk) [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=2.2%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets increased to **HKD 29.737 billion**, with net current assets rising to **HKD 2.471 billion**, and net assets growing by **11.02%** to **HKD 5.446 billion**, indicating improved financial structure Key Data from Condensed Consolidated Statement of Financial Position | Indicator | 2025 June 30 (HKD Thousands) | 2024 December 31 (HKD Thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current Assets | 6,073,353 | 5,761,616 | 5.41% | | Current Assets | 23,663,354 | 21,870,424 | 8.20% | | **Total Assets** | **29,736,707** | **27,632,040** | **7.62%** | | Current Liabilities | 21,192,464 | 19,783,347 | 7.12% | | Net Current Assets | 2,470,890 | 2,087,077 | 18.37% | | Non-current Liabilities | 3,098,164 | 2,943,245 | 5.26% | | **Net Assets** | **5,446,079** | **4,905,448** | **11.02%** | | Equity Attributable to Owners of the Company | 5,315,534 | 4,780,950 | 11.18% | | Reserves | 584,054 | 49,470 | 1080.60% | - As of June 30, 2025, the Group's gearing ratio (net debt to total capital) was **17.4%** (December 31, 2024: 18.6%), indicating a decrease in financial leverage[57](index=57&type=chunk) [Notes to the Financial Statements](index=8&type=section&id=III.%20Notes%20to%20the%20Financial%20Statements) Detailed notes provide further insights into the company's financial performance, including revenue breakdown, segment information, and specific financial items [Revenue Analysis](index=8&type=section&id=3.1%20Revenue%20Analysis) The Group's revenue is primarily from commodity trading and related services, accounting for **84.9%** of total revenue, with China being the largest customer source contributing approximately **70%** Revenue by Major Product and Service Line | Product and Service Line | 2025 (HKD Thousands) | 2024 (HKD Thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Transportation Services | 1,737,043 | 1,748,962 | -0.68% | | Logistics Services | 739,489 | 761,617 | -2.89% | | Commodity Trading and Related Services | 18,484,406 | 17,000,820 | 8.72% | | Equipment and Facility Maintenance Services | 359,701 | 320,239 | 12.32% | | Brokerage Services | 354,171 | 317,825 | 11.43% | | Others | 54,978 | 78,200 | -29.69% | | Rental Income | 35,133 | 47,373 | -25.85% | | **Total Revenue** | **21,764,921** | **20,275,771** | **7.34%** | Revenue by Customer Location | Region | 2025 (HKD Thousands) | 2024 (HKD Thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | China | 15,264,222 | 13,897,982 | 9.83% | | Singapore | 1,175,007 | 1,477,156 | -20.46% | | South Korea | 576,631 | 577,026 | -0.07% | | Hong Kong SAR, China | 50,395 | 44,322 | 13.70% | | Other Asia Pacific Jurisdictions | 1,471,823 | 1,637,331 | -10.11% | | Europe | 2,605,813 | 2,442,830 | 6.67% | | North America | 129,748 | 100,891 | 28.60% | | African Continent | 268,467 | 86,972 | 208.68% | | South America | 222,815 | 11,261 | 1878.60% | | **Total Revenue** | **21,764,921** | **20,275,771** | **7.34%** | [Segment Information](index=9&type=section&id=3.2%20Segment%20Information) The Group's operating segments include logistics services, commodity trading, engineering services, and financial services, with commodity trading showing significant profit growth - The Group has reported the following reportable segments: logistics services, commodity trading, engineering services, and financial services[19](index=19&type=chunk)[20](index=20&type=chunk)[21](index=21&type=chunk)[22](index=22&type=chunk)[23](index=23&type=chunk) [Logistics Services](index=9&type=section&id=3.2.1%20Logistics%20Services) This segment encompasses warehousing, transportation, freight forwarding, cargo consolidation, and supply chain management services - The logistics services segment includes warehousing, transportation, freight forwarding and cargo consolidation, and supply chain management services[20](index=20&type=chunk) [Commodity Trading](index=9&type=section&id=3.2.2%20Commodity%20Trading) This segment involves physical trading and supply chain management of base metal non-ferrous concentrates, primarily copper, lead, zinc, and other minor metals - The commodity trading segment includes physical trading and supply chain management of base metal non-ferrous concentrates, primarily copper, lead, zinc, and other minor metals[21](index=21&type=chunk) [Engineering Services](index=9&type=section&id=3.2.3%20Engineering%20Services) This segment covers management and maintenance of facilities, vehicles, and equipment, supply and installation of engineering products, property management, and design and construction of logistics properties - The engineering services segment includes management and maintenance of facilities, vehicles and equipment, supply and installation of engineering products, property management, and design and construction of logistics properties[22](index=22&type=chunk) [Financial Services](index=10&type=section&id=3.2.4%20Financial%20Services) This segment focuses on providing financial brokerage and asset management services - The financial services segment includes providing financial brokerage services and asset management services[23](index=23&type=chunk) [Segment Revenue and Results](index=11&type=section&id=3.2.5%20Segment%20Revenue%20and%20Results) Commodity trading segment saw significant growth in both revenue and profit before tax, while logistics services experienced declines, and financial services revenue grew but profit decreased Reportable Segment Revenue and Profit Before Tax | Segment | 2025 Revenue (HKD Thousands) | 2024 Revenue (HKD Thousands) | Revenue YoY Change (%) | 2025 Profit Before Tax (HKD Thousands) | 2024 Profit Before Tax (HKD Thousands) | Profit YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Logistics Services | 2,565,348 | 2,634,843 | -2.64% | 103,031 | 107,329 | -4.00% | | Commodity Trading | 18,484,406 | 17,000,820 | 8.73% | 108,031 | 19,312 | 459.39% | | Engineering Services | 360,996 | 322,283 | 12.01% | 17,522 | 15,025 | 16.62% | | Financial Services | 354,171 | 317,825 | 11.43% | 115,378 | 121,399 | -4.96% | | **Total** | **21,764,921** | **20,275,771** | **7.34%** | **341,059** | **262,429** | **29.96%** | [Other Gains/(Losses) – Net](index=12&type=section&id=3.3%20Other%20Gains%2F(Losses)%20%E2%80%93%20Net) Net other gains for the period were **HKD 18.115 million**, a significant improvement from a loss of **HKD 52.690 million** in the prior year, primarily due to a positive shift in net exchange gains Other Gains/(Losses) – Net Breakdown | Item | 2025 (HKD Thousands) | 2024 (HKD Thousands) | | :--- | :--- | :--- | | Net (Loss)/Gain on Disposal of Property, Plant and Equipment | (266) | 1,974 | | Net Gain on Disposal of Subsidiaries, Associates and Joint Ventures | 1,823 | 12 | | Net Exchange Gains/(Losses) | 18,976 | (13,316) | | Reversal/(Recognition) of Impairment Loss on Trade and Other Receivables | 1,064 | (724) | | Net (Loss)/Gain on Financial Instruments at Fair Value Through Profit or Loss | (171) | 368 | | Others | (3,311) | (41,004) | | **Total** | **18,115** | **(52,690)** | [Finance Costs](index=13&type=section&id=3.4%20Finance%20Costs) Finance costs for the period were **HKD 296.942 million**, a slight decrease from the prior year, mainly due to reduced interest expenses on bank borrowings and other financing Finance Costs Composition | Item | 2025 (HKD Thousands) | 2024 (HKD Thousands) | | :--- | :--- | :--- | | Interest Expense on Bank Borrowings and Other Financing | 160,133 | 166,830 | | Interest Expense on Lease Liabilities | 45,274 | 47,769 | | Other Interest Expenses | 35,925 | 42,302 | | Other Finance Costs | 25,457 | 21,875 | | Bank Charges | 30,153 | 27,827 | | **Total Finance Costs** | **296,942** | **306,603** | [Composition of Profit Before Tax](index=13&type=section&id=3.5%20Composition%20of%20Profit%20Before%20Tax) Profit before tax is presented after deducting expenses such as staff costs, depreciation, and amortization, with staff costs and cost of inventories sold increasing Items Deducted From/(Credited To) Profit Before Tax | Item | 2025 (HKD Thousands) | 2024 (HKD Thousands) | | :--- | :--- | :--- | | Staff Costs | 769,372 | 726,374 | | Depreciation of Property, Plant and Equipment | 111,064 | 107,027 | | Depreciation of Right-of-Use Assets | 149,013 | 154,329 | | Amortization of Intangible Assets | 14,907 | 14,804 | | Cost of Inventories Sold | 16,998,247 | 15,910,719 | | Interest Income | (238,635) | (275,810) | [Income Tax Expense](index=14&type=section&id=3.6%20Income%20Tax%20Expense) Income tax expense for the period was **HKD 26.857 million**, a significant **59.02%** decrease from the prior year, primarily due to over-provision in prior years and deferred tax recognition Income Tax Expense Composition | Item | 2025 (HKD Thousands) | 2024 (HKD Thousands) | | :--- | :--- | :--- | | Current Tax – Overseas Income Tax | 64,148 | 59,134 | | (Over-provision)/Under-provision in Prior Years | (15,068) | 10,654 | | Deferred Tax Credited to the Period | (22,785) | (5,075) | | Withholding Tax | 562 | 828 | | **Total Income Tax Expense** | **26,857** | **65,541** | - The Group had no assessable profits generated in Hong Kong during both periods, thus no provision for Hong Kong profits tax was made[31](index=31&type=chunk) [Earnings Per Share](index=14&type=section&id=3.7%20Earnings%20Per%20Share) Basic earnings per share for the six months ended June 30, 2025, significantly increased to **2.48 HK cents** from 1.06 HK cents, with diluted EPS being identical due to no dilutive potential ordinary shares Earnings Per Share Data | Indicator | 2025 (HK Cents) | 2024 (HK Cents) | | :--- | :--- | :--- | | Basic Earnings Per Share | 2.48 | 1.06 | | Diluted Earnings Per Share | 2.48 | 1.06 | - Profit for the period attributable to owners of the Company was **HKD 282,344 thousand** (2024: HKD 120,860 thousand)[34](index=34&type=chunk) [Trade Receivables](index=15&type=section&id=3.8%20Trade%20Receivables) As of June 30, 2025, total trade receivables were **HKD 3.188 billion**, slightly down from year-end 2024, with the majority aged 0-90 days and all expected to be recovered within one year Ageing Analysis of Trade Receivables | Ageing | 2025 June 30 (HKD Thousands) | 2024 December 31 (HKD Thousands) | | :--- | :--- | :--- | | 0–90 Days | 3,081,049 | 3,233,932 | | 91–180 Days | 72,327 | 114,232 | | 181–365 Days | 33,352 | 13,806 | | Over 1 Year | 1,741 | 1,268 | | **Total** | **3,188,469** | **3,363,238** | - All trade receivables are expected to be recovered within one year[36](index=36&type=chunk) [Trade and Other Payables](index=16&type=section&id=3.9%20Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables increased to **HKD 14.203 billion**, driven by a rise in other payables, deposits received, and accrued items, despite a decrease in trade payables with provisional pricing features Composition of Trade and Other Payables | Item | 2025 June 30 (HKD Thousands) | 2024 December 31 (HKD Thousands) | | :--- | :--- | :--- | | Trade Payables and Bills Payable – Measured at Amortized Cost | 400,556 | 398,857 | | Trade Payables and Bills Payable – With Provisional Pricing Features and Measured at Fair Value Through Profit or Loss | 1,045,847 | 1,487,503 | | Other Payables, Deposits Received and Accrued Items | 12,830,162 | 12,002,197 | | Less: Non-current Portion | (73,086) | (68,265) | | **Total** | **14,203,479** | **13,820,292** | Ageing Analysis of Trade Payables and Bills Payable | Ageing | 2025 June 30 (HKD Thousands) | 2024 December 31 (HKD Thousands) | | :--- | :--- | :--- | | 0–90 Days | 1,340,917 | 1,746,286 | | 91–180 Days | 44,289 | 61,434 | | 181–365 Days | 40,999 | 62,588 | | 1–2 Years | 14,821 | 10,688 | | Over 2 Years | 5,377 | 5,364 | | **Total** | **1,446,403** | **1,886,360** | [Management Discussion and Analysis](index=17&type=section&id=IV.%20Management%20Discussion%20and%20Analysis) This section provides an overview of the Group's performance, liquidity, and outlook within the context of the global macroeconomic environment and specific business segment developments [Overview and Macroeconomic Environment](index=17&type=section&id=4.1%20Overview%20and%20Macroeconomic%20Environment) The first half of 2025 saw a challenging global economic outlook with increased trade barriers, tighter financial conditions, and geopolitical conflicts, yet the Group's diverse services are prepared to adapt and capitalize on opportunities - The global outlook for 2025 is increasingly challenging, with significant risks to economic growth posed by substantially increased trade barriers, tighter financial conditions, weakening business and consumer confidence, and rising policy uncertainty[41](index=41&type=chunk) - The Israel-Iran war, which erupted in June 2025, led to significant market volatility, particularly driving increased trading volumes in the energy sector[41](index=41&type=chunk) - The Group's logistics services, commodity trading, financial services, and engineering services are well-prepared to adapt to the challenging environment and optimize opportunities arising from global changes[41](index=41&type=chunk) [Business Segment Performance](index=17&type=section&id=4.2%20Business%20Segment%20Performance) Business segments showed varied performance in a complex market: strong commodity trading, financial services revenue growth with profit decline, logistics services revenue and profit decrease, and engineering services growth from new contracts [Logistics Services](index=17&type=section&id=4.2.1%20Logistics%20Services) Logistics services revenue decreased by **2%** to **HKD 2.53 billion**, and profit before tax fell by **4%** to **HKD 103 million**, impacted by Singapore market challenges, industry downturns, trade tensions, and Red Sea attacks, though cold chain logistics remained robust - Logistics services revenue decreased by **2%** from **HKD 2,587,470 thousand** to **HKD 2,530,215 thousand**, and profit before tax decreased by **4%** from **HKD 107,329 thousand** to **HKD 103,031 thousand**[49](index=49&type=chunk) - The decrease in revenue was mainly due to the return of certain expired leased warehouses, a reduction in warehousing and integrated logistics businesses, and a corresponding decline in freight logistics revenue, affected by US tariffs and the Israel-Iran conflict[49](index=49&type=chunk) - Cold chain logistics maintained strong performance by consolidating its leading position in premium, high-security warehousing, with high capacity utilization at flagship facilities benefiting from stable demand from commercial partners and private collectors[44](index=44&type=chunk) [Commodity Trading](index=19&type=section&id=4.2.2%20Commodity%20Trading) Commodity trading profit before tax surged by **459%** to **HKD 108 million**, with revenue up **9%** to **HKD 18.484 billion**, driven by a tight copper concentrate market, rigorous execution, operational efficiency, and strategic expansion in non-ferrous concentrates and energy products - Commodity trading profit before tax increased by **459%** to **HKD 108,031 thousand**, with revenue growing by **9%** to **HKD 18,484,406 thousand**[50](index=50&type=chunk) - The exceptional performance reflects the company's full utilization of the extremely tight copper concentrate market, achieved through rigorous execution, operational efficiency, and continuous strategic expansion[50](index=50&type=chunk) - The company strengthened its blended capabilities to meet the growing demands of smelters and provided customized solutions, fully capitalizing on favorable market conditions[50](index=50&type=chunk) [Financial Services](index=20&type=section&id=4.2.3%20Financial%20Services) Financial services revenue increased by **11%** to **HKD 354 million**, but profit before tax decreased by **5%** to **HKD 115 million** due to lower interest income from declining rates. The company received "Most Active Commodity Futures Broker" award and in-principle approval for a Major Payment Institution license in Singapore - Financial services revenue increased by **11%** to **HKD 354,171 thousand**, while profit before tax decreased by **5%** to **HKD 115,378 thousand**[52](index=52&type=chunk) - The company was awarded 'Most Active Commodity Futures Broker (No. 1)' by Singapore Exchange Commodities Division for 2024[52](index=52&type=chunk) - In-principle approval was received for a Major Payment Institution license from the Monetary Authority of Singapore under the Payment Services Act 2019, allowing entry into Singapore's regulated digital payment token market[53](index=53&type=chunk) [Engineering Services](index=20&type=section&id=4.2.4%20Engineering%20Services) Engineering services revenue increased by **12%** to **HKD 361 million**, and profit before tax rose by **17%** to **HKD 17.522 million**, securing two significant contracts totaling approximately **HKD 349 million** from the Civil Aviation Authority of Singapore for M&E system replacement and maintenance - Engineering services revenue increased by **12%** to **HKD 360,996 thousand**, and profit before tax increased by **17%** to **HKD 17,522 thousand**[54](index=54&type=chunk) - Successfully secured two significant contracts from the Civil Aviation Authority of Singapore, totaling **SGD 56.5 million** (approximately **HKD 348.8 million**), for the replacement and maintenance of M&E systems and facilities[54](index=54&type=chunk) [Liquidity, Financial Resources and Funding Activities](index=21&type=section&id=4.3%20Liquidity%2C%20Financial%20Resources%20and%20Funding%20Activities) As of June 30, 2025, the Group held **HKD 2.343 billion** in cash and cash equivalents, with total loans and borrowings at **HKD 6.727 billion**, mostly due within one year, resulting in a net debt of **HKD 1.661 billion** and a reduced gearing ratio of **17.4%** Liquidity and Debt Situation | Indicator | 2025 June 30 (HKD Thousands) | 2024 December 31 (HKD Thousands) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 2,343,387 | 2,271,537 | | Total Loans and Borrowings | 6,726,974 | 5,924,561 | | Loans and Borrowings Repayable Within One Year | 5,928,246 | 5,136,740 | | Revolving Short-term Trade Financing | 4,728,389 | 3,894,216 | | Total Debt (Excluding Revolving Short-term Trade Financing) | 4,220,022 | 4,120,695 | | Consolidated Net Debt | 1,661,056 | 1,655,867 | | Gearing Ratio (Net Debt to Total Capital) | 17.4% | 18.6% | - The Group's loans and borrowings amounting to **HKD 5,432,194 thousand** are secured by properties, plant and equipment, bank balances and time deposits, trade and other receivables, and inventories[55](index=55&type=chunk) - The Group maintains an appropriate level of foreign currency borrowings, as determined by management, for natural hedging to minimize foreign exchange risk[58](index=58&type=chunk) [Significant Acquisitions and Disposals and Contingent Liabilities](index=22&type=section&id=4.4%20Significant%20Acquisitions%20and%20Disposals%20and%20Contingent%20Liabilities) For the six months ended June 30, 2025, there were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures, and management believes the resolution of ongoing litigation and regulatory matters will not materially impact the Group's financial position - For the six months ended June 30, 2025, the Company had no significant acquisitions or disposals of subsidiaries, associates, or joint ventures[59](index=59&type=chunk) - The Group actively defends against litigation, regulatory, and arbitration matters in the ordinary course of business, and management believes their resolution will not materially impact the Group's financial position[60](index=60&type=chunk) [Employees and Remuneration Policy](index=22&type=section&id=4.5%20Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group employed **6,011** staff with total staff costs of **HKD 769 million**, and its remuneration policy aims to ensure fair and competitive compensation to attract and retain talent, considering business characteristics across jurisdictions - As of June 30, 2025, the total number of employees of the Group, together with its associates and joint ventures, was **6,011** (December 31, 2024: 5,936)[61](index=61&type=chunk) - Total staff costs (including directors' emoluments) amounted to **HKD 769,372 thousand** (for the six months ended June 30, 2024: HKD 726,374 thousand)[61](index=61&type=chunk) - The Group's remuneration policy aims to ensure that the overall compensation package is fair and competitive, thereby encouraging and retaining existing employees and attracting prospective talent[61](index=61&type=chunk) [Events After the Reporting Period](index=22&type=section&id=4.6%20Events%20After%20the%20Reporting%20Period) On July 17, 2025, MRI Trading AG, an indirect wholly-owned subsidiary, entered into a sales contract with GTS Shipping Management Co. Limited (a related party) to purchase electrolytic copper for a consideration not exceeding **USD 5 million** (approximately **HKD 39 million**) - On July 17, 2025, MRI Trading AG, an indirect wholly-owned subsidiary of the Company, entered into a sales contract with GTS Shipping Management Co. Limited (a related party), whereby GTS Shipping agreed to purchase electrolytic copper from MRI Trading[62](index=62&type=chunk) - The contract consideration shall not exceed **USD 5,000,000** (equivalent to approximately **HKD 39,000,000**)[62](index=62&type=chunk) [Future Outlook and Company Strategy](index=23&type=section&id=V.%20Future%20Outlook%20and%20Company%20Strategy) Despite global uncertainties, the Group anticipates stronger global economic growth and declining inflation, focusing on enhancing core capabilities, fostering industrial synergy, and expanding its global business network, particularly in China and emerging markets, to maximize shareholder value - The International Monetary Fund forecasts global economic growth to be revised upwards to **3.0%** in 2025 and **3.1%** in 2026[63](index=63&type=chunk) - The Group will continue to enhance its core capabilities, promote further synergy and cooperation among industrial segments, and seek business opportunities in China and other developing countries[64](index=64&type=chunk) - Hainan Free Trade Port will officially commence independent customs operations across the entire island in December 2025, where the Group's freight logistics business has already established a subsidiary[64](index=64&type=chunk) [Other Information](index=23&type=section&id=VI.%20Other%20Information) This section covers the company's dividend policy, share transactions, review of interim results, corporate governance, and the composition of its Board of Directors [Dividend Policy](index=23&type=section&id=6.1%20Dividend%20Policy) The Board of Directors did not declare an interim dividend for the six months ended June 30, 2025, consistent with the prior corresponding period - The Board of Directors did not declare an interim dividend for the six months ended June 30, 2025 (for the six months ended June 30, 2024: nil)[65](index=65&type=chunk) [Dealings in Listed Securities](index=23&type=section&id=6.2%20Dealings%20in%20Listed%20Securities) During the review period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities on the Stock Exchange or any other securities exchange - During the review period, neither the Company nor its any subsidiaries purchased, sold, or redeemed any of the Company's listed securities on the Stock Exchange or any other securities exchange[66](index=66&type=chunk) [Review of Interim Results and Corporate Governance](index=24&type=section&id=6.3%20Review%20of%20Interim%20Results%20and%20Corporate%20Governance) The Board's audit committee reviewed the interim financial report and discussed risk management, internal controls, and financial reporting with management, while the company's auditor reviewed the report, and the company complied with the Corporate Governance Code - The Board's audit committee has reviewed the accounting principles and practices adopted by the Group and discussed risk management, internal controls, and financial reporting matters with the Company's management[67](index=67&type=chunk) - The Company's auditor has also reviewed the Group's unaudited interim financial report for the six months ended June 30, 2025, in accordance with Hong Kong Standard on Review Engagements 2410 issued by the HKICPA[67](index=67&type=chunk) - The Company has complied with the code provisions of the Corporate Governance Code set out in Appendix C1 Part 2 of the Listing Rules during the period from January 1, 2025, to June 30, 2025[68](index=68&type=chunk) [Acknowledgements and Board Composition](index=24&type=section&id=6.4%20Acknowledgements%20and%20Board%20Composition) The Board extends gratitude to all stakeholders for their support and acknowledges the dedication of management and staff, noting that as of the announcement date, the Board comprises four executive directors and three independent non-executive directors - The Board extends its sincere gratitude to all shareholders, investors, customers, suppliers, and business partners for their continuous valuable support and trust in the Group; concurrently, the Board also expresses its deep appreciation and commendation for the tireless efforts, diligence, and dedication of all management and staff during the period[69](index=69&type=chunk) - As of the date of this announcement, the Board comprises Mr. Wang Kan (Executive Director and Chairman), Mr. Zhao Quan (Executive Director), Mr. Wang Qi (Executive Director), Mr. Shang Duoxu (Executive Director and Chief Executive Officer), Mr. Lam Kin Fung, Jeffrey (Independent Non-executive Director), Ms. Liu Yifei (Independent Non-executive Director), and Dr. Lo Wing Yan, Raymond (Independent Non-executive Director)[71](index=71&type=chunk)