Core Viewpoint - The company reported stable total revenue and gross profit for the six months ending June 30, 2025, with a slight increase in net profit attributed to improved performance from associated companies [1] Financial Performance - Total revenue for the period was HKD 1,332.9 million, with gross profit at HKD 129.0 million, both remaining relatively unchanged compared to the same period last year [1] - Product sales increased by 10.6% to HKD 675.9 million, while service revenue rose by 7.0% to HKD 657.0 million [1] - The profit attributable to equity holders of the company was HKD 41.5 million, up 9.0% from HKD 38.1 million in the previous year [1]

[Group Performance Overview](index=1&type=section&id=Group%20Performance%20Overview) [Key Financial Highlights](index=1&type=section&id=1.1%20Key%20Financial%20Highlights) The Group reported growth in revenue and profit for the period, with significant new order intake and stable adjusted EBITDA and profit | Metric | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | Y-o-Y Change (%) | | :--- | :-------------------- | :-------------------- | :----------- | | Revenue | 1,332,900 | 1,225,500 | 8.8% | | Profit for the period | 41,500 | 38,100 | 9.0% | | New Orders Signed | 1,519,300 | 1,295,000 | 17.3% | | Adjusted EBITDA | 59,600 | 58,200 | 2.2% | | Adjusted Profit | 45,700 | 46,000 | -0.7% | | Basic EPS (HK cents) | 4.98 | 4.57 | 9.0% | [Condensed Consolidated Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=2.1%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) The condensed consolidated statement of profit or loss shows growth in revenue and profit attributable to owners, driven by increased revenue and improved associate performance | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :-------------- | :-------------- | | Revenue | 1,332,883 | 1,225,462 | | Cost of sales | (583,487) | (522,218) | | Cost of services provided | (620,426) | (580,053) | | Other income | 11,561 | 13,332 | | Other net loss | (4,452) | (921) | | Selling expenses | (55,027) | (47,403) | | Administrative expenses | (33,444) | (31,895) | | Finance income | 530 | 85 | | Finance costs | (729) | (563) | | Share of results of associates | 3,324 | (7,867) | | Profit before income tax | 50,733 | 47,959 | | Income tax expense | (9,218) | (9,858) | | Profit for the period attributable to owners of the Company | 41,515 | 38,101 | | Basic EPS (HK cents) | 4.98 | 4.57 | [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=2.2%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) The condensed consolidated statement of comprehensive income shows a significant increase in total comprehensive income, primarily due to favorable exchange differences from foreign operations | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :-------------- | :-------------- | | Profit for the period | 41,515 | 38,101 | | Exchange differences on translation of foreign operations | 23,547 | (4,638) | | Share of other comprehensive income/(loss) of associates | 7,953 | (1,508) | | Total comprehensive income for the period attributable to owners of the Company | 73,015 | 31,955 | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=2.3%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group maintained a robust financial position with increased total assets, equity attributable to owners, and a healthy working capital ratio | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--------------------- | :--------------------- | | Total Assets | 3,347,740 | 3,276,421 | | Equity attributable to owners of the Company | 2,327,841 | 2,276,908 | | Total Liabilities | 1,019,899 | 999,513 | | Net Current Assets | 862,316 | 828,266 | - The working capital ratio was approximately **2.01:1**, indicating a sound financial position[54](index=54&type=chunk) [Notes to the Interim Financial Information](index=6&type=section&id=Notes%20to%20the%20Interim%20Financial%20Information) [Basis of Preparation and Accounting Policies](index=6&type=section&id=3.1%20Basis%20of%20Preparation%20and%20Accounting%20Policies) The interim financial information is prepared under HKAS 34 and Listing Rules, adopting revised HKAS 21 with no significant impact on performance or financial position - The interim financial information has been prepared in compliance 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'[11](index=11&type=chunk) - The adoption of the revised Hong Kong Accounting Standard 21 'Lack of Exchangeability' had no significant impact on the Group's results and financial position for the current and prior periods[12](index=12&type=chunk) [Revenue and Segment Information](index=7&type=section&id=3.2%20Revenue%20and%20Segment%20Information) The Group's revenue is primarily from IT products and services, with Hong Kong as the main source and non-current assets in overseas markets - The Group comprises two operating segments: IT products and IT services[13](index=13&type=chunk) [Revenue Composition](index=7&type=section&id=3.2.1%20Revenue%20Composition) This section details the composition of the Group's revenue, distinguishing between sales of goods and revenue from service contracts | Revenue Source | 2025 (HKD thousands) | 2024 (HKD thousands) | Y-o-Y Change (%) | | :------- | :-------------- | :-------------- | :----------- | | Sales of goods | 675,890 | 611,325 | 10.6% | | Revenue from service contracts | 656,993 | 614,137 | 7.0% | | **Total Revenue** | **1,332,883** | **1,225,462** | **8.8%** | [Operating Segment Performance](index=7&type=section&id=3.2.2%20Operating%20Segment%20Performance) This section details the financial performance of the Group's IT products and IT services segments, including external customer revenue and segment profit | Segment | 2025 External Customer Revenue (HKD thousands) | 2024 External Customer Revenue (HKD thousands) | 2025 Reportable Segment Profit (HKD thousands) | 2024 Reportable Segment Profit (HKD thousands) | | :--- | :-------------------------- | :-------------------------- | :---------------------------- | :---------------------------- | | IT Products | 675,890 | 611,325 | 68,815 | 67,276 | | IT Services | 656,993 | 614,137 | 1,866 | 8,087 | - Profit from the IT Services segment decreased by approximately **77%** year-on-year, while profit from the IT Products segment saw a slight increase[15](index=15&type=chunk)[16](index=16&type=chunk) [Segment Reconciliation](index=9&type=section&id=3.2.3%20Segment%20Reconciliation) This section reconciles reportable segment revenue and profit with the condensed consolidated statement of profit or loss, detailing adjustments and unallocated items - After reconciliation, reportable segment revenue for 2025 was **HKD 1,332,883 thousands**, excluding **HKD 19,289 thousands** of inter-segment revenue[20](index=20&type=chunk) - Reportable segment profit reconciled to profit before income tax for 2025 was **HKD 50,733 thousands**, with key adjustments including unallocated other income, other net loss, depreciation, share of results of associates, finance costs, and unallocated corporate expenses[22](index=22&type=chunk) - Unallocated assets included **HKD 1,241,212 thousands** in interests in associates and **HKD 649,377 thousands** in bank balances and cash[23](index=23&type=chunk) [Geographical Segment Information](index=11&type=section&id=3.2.4%20Geographical%20Segment%20Information) This section provides geographical breakdown of external customer revenue and non-current assets, highlighting key regions like Hong Kong, USA, and Thailand | Location | 2025 External Customer Revenue (HKD thousands) | 2024 External Customer Revenue (HKD thousands) | 2025 Non-current Assets (HKD thousands) | | :----- | :-------------------------- | :-------------------------- | :-------------------------- | | Hong Kong | 1,226,905 | 1,161,779 | 317,771 | | USA | – | – | 1,204,116 | | Thailand | 57,511 | 22,966 | 558 | - The USA region holds the largest proprietary non-current assets, primarily consisting of interests in associates[25](index=25&type=chunk) - External customer revenue in Thailand increased by over **150%** year-on-year[25](index=25&type=chunk) [Timing of Revenue Recognition](index=12&type=section&id=3.2.5%20Timing%20of%20Revenue%20Recognition) This section details the timing of revenue recognition, distinguishing between revenue recognized at a point in time and over time, and outlines unsatisfied performance obligations | Timing of Revenue Recognition | 2025 (HKD thousands) | 2024 (HKD thousands) | | :----------- | :-------------- | :-------------- | | At a point in time | 788,512 | 705,211 | | Over time | 544,371 | 520,251 | - As of June 30, 2025, revenue from unsatisfied performance obligations amounted to **HKD 1,849,013 thousands**, expected to be recognized within one to five years[26](index=26&type=chunk) [Other Income and Losses](index=12&type=section&id=3.3%20Other%20Income%20and%20Losses) Other income decreased while other net losses significantly increased, mainly due to net losses from deemed disposal of partial interests in associates | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :-------------- | :-------------- | | Interest on bank deposits | 10,438 | 11,237 | | Rental income from investment properties | 490 | 1,403 | | Total other income | 11,561 | 13,332 | | Net (loss)/gain on deemed disposal of partial interests in associates | (4,970) | 58 | | Net exchange gain/(loss) | 522 | (975) | | Total other net loss | (4,452) | (921) | [Finance Income and Profit Before Tax](index=13&type=section&id=3.4%20Finance%20Income%20and%20Profit%20Before%20Tax) Finance income increased due to discounting of finance lease receivables, leading to higher profit before tax, alongside increased employee benefit expenses - Finance income primarily refers to the increase in discounting recognized after initially recognizing finance lease receivables at their fair value[29](index=29&type=chunk) | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :-------------- | :-------------- | | Profit before income tax | 50,733 | 47,959 | | Employee benefit expenses (excluding directors' emoluments) | 380,672 | 340,358 | [Income Tax Expense](index=14&type=section&id=3.5%20Income%20Tax%20Expense) Income tax expense slightly decreased, with Hong Kong profits tax calculated under a two-tiered system and contributions from overseas taxation | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :-------------- | :-------------- | | Hong Kong profits tax | 8,037 | 7,663 | | Overseas taxation | 2,165 | 1,959 | | Over-provision in prior years: overseas taxation | (129) | – | | Deferred tax: current period | (855) | 236 | | **Income tax expense** | **9,218** | **9,858** | - Hong Kong profits tax is calculated under a two-tiered profits tax rate system, with the first **HKD 2 million** of assessable profits taxed at **8.25%** and the remainder at **16.5%**[31](index=31&type=chunk) [Dividends](index=14&type=section&id=3.6%20Dividends) The Board does not recommend an interim dividend for the six months ended June 30, 2025, consistent with the prior period - The Board does not propose to declare an interim dividend for the six months ended June 30, 2025[33](index=33&type=chunk)[52](index=52&type=chunk) - A final dividend of **3.0 HK cents** per share for the year ended December 31, 2024, amounting to **HKD 25,011 thousands**, was approved and paid during the period[33](index=33&type=chunk) [Earnings Per Share](index=15&type=section&id=3.7%20Earnings%20Per%20Share) Basic and diluted earnings per share attributable to owners increased, with diluted EPS for 2025 reflecting the share award scheme's impact | Metric | 2025 (HK cents) | 2024 (HK cents) | | :--- | :------------ | :------------ | | Basic earnings per share | 4.98 | 4.57 | | Diluted earnings per share | 4.91 | 4.57 | - The calculation of diluted earnings per share for 2025 has considered the Company's share awards issued under the 2024 Share Award Scheme[39](index=39&type=chunk) [Property, Plant and Equipment](index=16&type=section&id=3.8%20Property%2C%20Plant%20and%20Equipment) Property, plant and equipment additions included computer equipment and leasehold improvements, with some assets pledged for bank financing - For the six months ended June 30, 2025, additions to property, plant and equipment primarily comprised computer equipment (approximately **HKD 2,836 thousands**) and leasehold improvements (approximately **HKD 4,316 thousands**)[37](index=37&type=chunk) - The Group has pledged land and buildings with a carrying amount of approximately **HKD 179,225 thousands** to secure bank financing[38](index=38&type=chunk) [Investment Properties](index=17&type=section&id=3.9%20Investment%20Properties) An investment property was reclassified for office use, and some investment properties are pledged to secure bank financing - The Group reclassified an investment property with a fair value of **HKD 24,525 thousands** to property, plant and equipment, now used for office purposes[40](index=40&type=chunk) - As of June 30, 2025, the Group had pledged investment properties with a carrying amount of approximately **HKD 22,475 thousands** to secure bank financing[40](index=40&type=chunk) [Interests in Associates](index=17&type=section&id=3.10%20Interests%20in%20Associates) Total interests in associates increased, but a net loss resulted from the deemed disposal of partial interests due to GDH share dilution | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--------------------- | :--------------------- | | Interests in listed associates | 1,204,117 | 1,189,036 | | Interests in unlisted associates | 37,095 | 30,170 | | **Total interests in associates** | **1,241,212** | **1,219,206** | - The Group's interest in GDH was diluted due to the vesting of restricted share units and share options, resulting in a recognized net loss of **HKD 4,970 thousands** from the deemed disposal of partial interests[42](index=42&type=chunk) - GDH's fair value, based on Nasdaq quotations, was **USD 11.55** per share as of June 30, 2025, lower than **USD 22.24** per share as of December 31, 2024[41](index=41&type=chunk) [Trade and Other Receivables](index=19&type=section&id=3.11%20Trade%20and%20Other%20Receivables) Net trade receivables decreased, with significant overdue amounts, while other receivables and prepayments increased due to higher supplier prepayments | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--------------------- | :--------------------- | | Trade receivables – net | 162,305 | 192,410 | | Trade receivables – gross (over 90 days) | 38,506 | 45,013 | | Other receivables, deposits and prepayments – net | 92,871 | 85,144 | - Prepayments primarily consisted of amounts paid to suppliers, increasing from **HKD 43,104 thousands** to **HKD 56,596 thousands**[48](index=48&type=chunk) [Financial Assets](index=20&type=section&id=3.12%20Financial%20Assets) The Group committed to acquiring an equity interest in a limited partnership fund, designated as a financial asset at fair value through OCI for long-term capital growth - The Group has committed to acquiring an equity interest in a limited partnership fund amounting to **USD 3,000,000**[47](index=47&type=chunk) - As of June 30, 2025, **USD 660,000** (approximately **HKD 5,181 thousands**) has been contributed and designated as a financial asset at fair value through other comprehensive income, aiming for long-term capital growth[47](index=47&type=chunk) [Trade and Other Payables](index=21&type=section&id=3.13%20Trade%20and%20Other%20Payables) Trade payables slightly decreased, while contract liabilities significantly increased due to higher billings in advance and customer deposits | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--------------------- | :--------------------- | | Trade payables | 290,262 | 298,705 | | Other payables and accrued charges | 145,621 | 179,849 | | Contract liabilities | 399,541 | 344,568 | - The increase in contract liabilities was primarily due to higher billings in advance and customer deposits received from customers during the period[51](index=51&type=chunk) [Management Discussion and Analysis](index=22&type=section&id=Management%20Discussion%20and%20Analysis) [Financial Performance Review](index=22&type=section&id=4.1%20Financial%20Performance%20Review) The Group maintained robust financial performance amidst uncertainties, with growth in revenue and profit, significant new orders, a healthy working capital ratio, and no outstanding borrowings | Metric | H1 2025 (HKD millions) | H1 2024 (HKD millions) | Y-o-Y Change (%) | | :--- | :-------------------- | :-------------------- | :----------- | | Total Revenue | 1,332.9 | 1,225.5 | 8.8% | | Gross Profit | 129.0 | 129.0 | 0.0% | | Profit for the period attributable to owners of the Company | 41.5 | 38.1 | 9.0% | | New Orders Signed | 1,519.3 | 1,295.0 | 17.3% | | Adjusted EBITDA | 59.6 | 58.2 | 2.2% | | Adjusted Profit | 45.7 | 46.0 | -0.7% | - Product sales increased by **10.6%** to **HKD 675.9 million**, and service revenue rose by **7.0%** to **HKD 657.0 million**[53](index=53&type=chunk) - As of June 30, 2025, the Group's order backlog was approximately **HKD 1,849.0 million**, with a working capital ratio of **2.01:1** and no outstanding borrowings[54](index=54&type=chunk) [Business Segment Review](index=24&type=section&id=4.2%20Business%20Segment%20Review) The Group's three core businesses maintained robust growth, leveraging innovative technologies to expand into Xinchuang and Asia-Pacific/Oceania markets - The Group's new orders signed and revenue grew by **17.3%** and **8.8%** respectively, with adjusted EBITDA increasing by **2.2%**[57](index=57&type=chunk) - Total service revenue from the three core businesses (Innovative Industry Solutions, Intelligent Cybersecurity Services, IT Integrated Management Services) showed robust growth[57](index=57&type=chunk) - Actively leveraging innovative technologies such as **AI**, **blockchain**, and **cloud computing** to facilitate digital transformation across industries and build digital government[58](index=58&type=chunk) - Further expanding into the Xinchuang domain, strengthening the 'Chinese + Foreign' product benchmarking and testing platform, and expanding into the Asia-Pacific and Oceania markets[62](index=62&type=chunk)[63](index=63&type=chunk) [Innovative Industry Solutions (Dev)](index=24&type=section&id=4.2.1%20Innovative%20Industry%20Solutions%20(Dev)) This section highlights the growth in new service orders and revenue for Innovative Industry Solutions, driven by AI, blockchain, and cloud technologies for e-government and Xinchuang projects - New service orders signed for Innovative Industry Solutions increased year-on-year, with service revenue recorded at **HKD 296.4 million**[58](index=58&type=chunk) - Actively utilizing innovative technologies like **AI**, **blockchain**, and **cloud computing** to develop e-government platforms, Hong Kong-wide census data systems, and the 'eHealth+' system[58](index=58&type=chunk) - Continuously expanding business opportunities in China-originated IT Application Innovation (Xinchuang) projects, accumulating successful cases and implementation experience[58](index=58&type=chunk) [Intelligent Cybersecurity Services (Sec)](index=25&type=section&id=4.2.2%20Intelligent%20Cybersecurity%20Services%20(Sec)) This section details the performance of Intelligent Cybersecurity Services, noting a decrease in new service orders but significant contract wins and ISO certification for its Security Operations Center - New service orders for Intelligent Cybersecurity Services decreased, with service revenue recorded at **HKD 105.6 million**[59](index=59&type=chunk) - Secured two cybersecurity framework agreements with the Hong Kong International Airport Authority totaling nearly **HKD 125 million**, and provided 24/7 threat detection and on-site technical support for a government department[59](index=59&type=chunk) - Extended ISO certification to the Security Operations Center (SOC) in Guangzhou, standardizing service quality across regions[59](index=59&type=chunk) [IT Integrated Management Services (Ops)](index=25&type=section&id=4.2.3%20IT%20Integrated%20Management%20Services%20(Ops)) This section reviews the growth in new service orders and revenue for IT Integrated Management Services, highlighting major contract wins across diverse sectors and the adoption of AIOps technology - New service orders for IT Integrated Management Services increased, with service revenue recorded at **HKD 235.4 million**[60](index=60&type=chunk) - Signed multiple significant large-scale managed service contracts or renewals across sectors including finance and insurance, aviation, real estate, education, retail, and government[61](index=61&type=chunk) - Successfully secured a Virtual Desktop Infrastructure (VDI) technology diversification project and a five-year Hong Kong-wide IT endpoint facility support and maintenance contract from a government department[61](index=61&type=chunk) - Provided 24-hour automated services through AI-powered IT Operations (AIOps) platform services, demonstrating a transition from ITSM to leading AIOps technological advantages[61](index=61&type=chunk) [Strategic Focus and Market Expansion](index=26&type=section&id=4.2.4%20Strategic%20Focus%20and%20Market%20Expansion) This section outlines the Group's strategic focus on Xinchuang, strengthening product benchmarking, and expanding into Asia-Pacific and Oceania markets with increased AI technology adoption - The Group further expanded its presence in the Xinchuang domain, strengthening the 'Chinese + Foreign' product benchmarking and testing platform to enhance integrated technology capabilities[62](index=62&type=chunk) - Actively focusing on industries and expanding into the Asia-Pacific and Oceania markets, with offices established in Malaysia and Australia, and continuous expansion of Offshore Development Centers (ODC)[63](index=63&type=chunk) - Accelerating the utilization of **AI** technology to provide efficient solutions across various industries[63](index=63&type=chunk) [Associates' Business](index=26&type=section&id=4.3%20Associates%27%20Business) Associates GDH and i-Sprint showed strong performance with significant revenue and profit growth, demonstrating leadership in FinTech and AI applications - GDH's total revenue for the first half reached **USD 201.5 million** (approximately **HKD 1,581.9 million**), a **23.7%** increase, with non-GAAP EBITDA at **USD 27.4 million** (approximately **HKD 214.7 million**)[64](index=64&type=chunk) - GDH's revenue proportion from **AI** and data business continued to increase, growing almost three times faster than conventional business, reflecting its leadership in enterprise-grade **AI** solutions[64](index=64&type=chunk) - i-Sprint's revenue for the period was approximately **HKD 84.5 million**, a **15.6%** increase, with EBITDA at approximately **HKD 26.8 million**, a significant **59.3%** increase[65](index=65&type=chunk) - i-Sprint continued to deepen collaborations with Asia-Pacific technology partners and distributors, launching upgraded cybersecurity solutions integrated with **AI**[65](index=65&type=chunk) [Prospects and Outlook](index=27&type=section&id=4.4%20Prospects%20and%20Outlook) The Group will cautiously navigate global uncertainties, focusing on opportunities from China's economic recovery and Greater Bay Area integration, while investing in Xinchuang and AI for sustainable development - The Group will closely monitor emerging business opportunities driven by China's economic recovery and the deep integration of the Greater Bay Area[66](index=66&type=chunk) - Will remain highly vigilant to capture market gaps arising from the implementation of the Critical Infrastructure (Computer Systems) Protection Ordinance[66](index=66&type=chunk) - Continuously strengthening talent reserves and training, increasing investment in the Xinchuang domain, and establishing professional technical evaluation teams[66](index=66&type=chunk) - Combining **DevSecOps** capabilities with platform-based managed services to focus on the Xinchuang domain and explore **AI** application scenarios, seizing digital economy transformation opportunities[66](index=66&type=chunk) [Other Information](index=28&type=section&id=Other%20Information) [Financial Resources and Liquidity](index=28&type=section&id=5.1%20Financial%20Resources%20and%20Liquidity) The Group maintains robust financial resources and ample liquidity, with healthy total assets, working capital ratio, no outstanding borrowings, and stable bank facilities - As of June 30, 2025, the Group's total assets were **HKD 3,347.7 million**, with a working capital ratio of approximately **2.01:1**[67](index=67&type=chunk) - The Group's total consolidated bank facilities amounted to approximately **HKD 270.3 million**, with no outstanding borrowings[67](index=67&type=chunk) - The Group provided performance guarantees to customers as contract collateral totaling approximately **HKD 126.9 million**[67](index=67&type=chunk) [Material Acquisitions and Disposals](index=28&type=section&id=5.2%20Material%20Acquisitions%20and%20Disposals) Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities for the six months ended June 30, 2025 - For the six months ended June 30, 2025, there were no other material acquisitions or disposals by the Company or any of its subsidiaries[68](index=68&type=chunk) [Treasury Policy and Foreign Exchange Risk](index=28&type=section&id=5.3%20Treasury%20Policy%20and%20Foreign%20Exchange%20Risk) Operations are funded by internal resources and bank credit, primarily in HKD and USD, with minimal foreign exchange risk due to the HKD-USD peg, thus no hedging instruments are used - The Group's operating expenses are generally funded by internal resources and bank credit facilities, with bank deposits primarily denominated in **HKD** and **USD**, and bank borrowings in **HKD**[69](index=69&type=chunk) - Due to the **HKD-USD** peg policy, the Group's exposure to **USD** foreign exchange risk remains minimal, with no significant exchange rate fluctuation risk during the period, hence no hedging financial instruments were applied[70](index=70&type=chunk) [Contingent Liabilities and Capital Commitments](index=29&type=section&id=5.4%20Contingent%20Liabilities%20and%20Capital%20Commitments) The Group has contingent liabilities from bank-issued performance guarantees and contracted capital commitments for property, plant and equipment and a limited partnership fund - As of June 30, 2025, performance guarantees issued by banks on behalf of the Group to customers as contract collateral amounted to approximately **HKD 126.9 million**[71](index=71&type=chunk) | Capital Commitment Item | June 30, 2025 (HKD millions) | December 31, 2024 (HKD millions) | | :----------- | :----------------------- | :----------------------- | | Property, Plant and Equipment | 1.1 | 2.0 | | Capital contribution to limited partnership fund | 18.4 | – | [Employees and Remuneration Policy](index=29&type=section&id=5.5%20Employees%20and%20Remuneration%20Policy) The Group employs 1,647 staff globally, with remuneration based on performance, experience, and market conditions, offering comprehensive benefits and long-term incentives - As of June 30, 2025, the Group (excluding its associates) employed **1,647** permanent and contract staff across Hong Kong, Mainland China, Taiwan, Macau, Thailand, the UK, Australia, and Malaysia, an increase of **189** from the prior year[73](index=73&type=chunk) - Remuneration is determined based on employee performance, work experience, and prevailing market conditions, offering MPF, insurance, medical benefits, training, and discretionary bonuses[73](index=73&type=chunk) - The share option scheme and share award scheme aim to provide long-term incentives for key employees[73](index=73&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=29&type=section&id=5.6%20Purchase%2C%20Sale%20or%20Redemption%20of%20Listed%20Securities) Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities for the six months ended June 30, 2025 - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[74](index=74&type=chunk) [Audit Committee and Corporate Governance](index=29&type=section&id=5.7%20Audit%20Committee%20and%20Corporate%20Governance) The Audit Committee reviewed accounting principles, risk management, and financial statements, with the Company confirming full compliance with director securities transaction and corporate governance codes - The Audit Committee, together with management, reviewed the Group's adopted accounting principles and practices, and discussed matters concerning audit, risk management, internal control systems, and financial statements[75](index=75&type=chunk) - The Company made specific inquiries to all Directors regarding their compliance with the Model Code for Securities Transactions by Directors for the six months ended June 30, 2025, and all Directors confirmed full compliance with the standards prescribed therein[76](index=76&type=chunk) - The Company has complied with the Corporate Governance Code as set out in Appendix C1 to the Listing Rules throughout the six months ended June 30, 2025[77](index=77&type=chunk) [Board Information](index=30&type=section&id=5.8%20Board%20Information) This announcement, dated August 20, 2025, details the latest Board of Directors' composition, including Executive, Non-executive, and Independent Non-executive Directors - This announcement is dated **August 20, 2025**[79](index=79&type=chunk) - The Board members include Executive Directors Mr. WANG Wai Hang and Mr. WONG Yuet Au; Non-executive Director Ms. ZHANG Bingxia; and Independent Non-executive Directors Mr. POON Yan Wing, Mr. TANG Kin Sum, and Ms. OR Siu Ching[79](index=79&type=chunk)

致：香港交易及結算所有限公司 公司名稱: 自動系統集團有限公司 呈交日期: 2025年8月6日 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 00771 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 2,000,000,000 | HKD | | 0.1 | HKD | | 200,000,000 | | 增加 / 減少 (-) | | | 0 | | | | HKD | | | | 本月底結存 | | | 2,000,000,000 | HKD | | 0.1 | HKD | | 200,000,000 | 本月底法定/註冊 ...

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分內容而產生或因倚 賴該等內容而引致之任何損失承擔任何責任。 董事會召開日期 自動系統集團有限公司（「本公司」）之董事會（「董事會」）謹此宣佈，本公司將於二零二 五年八月二十日（星期三）舉行董事會會議，以（其中包括）批准本公司及其附屬公司截至 二零二五年六月三十日止六個月之未經審核中期業績及其發佈，以及考慮建議派發中期股息 （如有）。 自動系統集團有限公司* 於本公告日期，董事會成員包括執行董事王維航先生及王粵鷗先生；非執行董事張秉霞女士； 以及獨立非執行董事潘欣榮先生、鄧建新先生及柯小菁女士。 （於百慕達註冊成立之有限公司） （股份代號︰771） * 僅供識別 承董事會命 自動系統集團有限公司 聯席公司秘書 顏偉興 劉雅婷 香港，二零二五年八月六日 AUTOMATED SYSTEMS HOLDINGS LIMITED ...

Summary of Key Points Core Viewpoint - As of July 14, a total of 138 stocks reached their 52-week highs, indicating a strong performance in the market, with notable leaders including Green Heart Group Holdings, OK Blockchain, and Pearl River Steel Pipe [1]. Group 1: Top Performers - Green Heart Group Holdings (02999) achieved a closing price of 0.013 with a peak of 0.017, marking a 70.00% increase [1]. - OK Blockchain (01499) closed at 0.680, reaching a high of 0.690, reflecting a 48.39% rise [1]. - Pearl River Steel Pipe (01938) had a closing price of 0.335 and a peak of 0.340, resulting in a 33.33% increase [1]. Group 2: Other Notable Stocks - Weishi Jiajie (00856) saw a 32.01% increase, closing at 8.870 with a high of 11.300 [1]. - Cloud Intelligence (09678) reached a high of 520.000, closing at 510.000, which is a 20.99% increase [1]. - China Chengtong Development Group (00217) closed at 0.165 with a peak of 0.166, marking a 14.48% rise [1]. Group 3: Additional Stocks with Significant Increases - Sihuan Pharmaceutical (00460) closed at 1.380, reaching a high of 1.430, which is a 14.40% increase [1]. - Taited Pharmaceutical (03880) had a closing price of 36.950 and a peak of 37.400, reflecting a 13.85% rise [1]. - Beihai Kangcheng-B (01228) closed at 0.850 with a high of 0.960, resulting in a 12.94% increase [1].

Financial Performance - The Group's core business revenue reached HK$2,373.0 million, representing a growth of 0.5% compared to last year[16] - The Group's gross profit was HK$246.0 million, with an adjusted EBITDA of HK$110.6 million for the core business[16] - The profit for the year increased by 13.7% to HK$149.3 million, up from HK$131.3 million last year, primarily due to increased interest income and improved share of results from associates[16] - Adjusted net profit rose by 9.4% to HK$87.1 million, and adjusted operating cash flow surged by 105.7% to HK$124.8 million[19] - The Group's basic earnings per share increased to HK 17.91 cents, up from HK 15.75 cents in the previous year[18] - The final dividend remained stable at HK 3.0 cents per share[18] - The Group's total revenue for 2024 was HK$2,373.0 million, representing a growth compared to last year's HK$2,360.4 million[93] - Profit for the year attributable to the Company's equity holders was HK$149.3 million, an increase of 13.7% over last year's HK$131.3 million[98] - The Group's adjusted EBITDA for the year was HK$407.4 million, representing an 18.6% margin[39] - For the year ended December 31, 2024, total revenue was HK$2,373.0 million, with a gross profit of HK$246.0 million, showing a stable performance compared to the previous year[117] Business Growth and Expansion - Orders for Unified Technology Services grew by 6.0% to HK$1,319.0 million, while System Integration and Other Businesses saw a 2.5% increase to HK$1,221.3 million[19] - The Group established an Offshore Development Center in Zhuhai in the second half of 2024 to enhance service capabilities[24] - The Group plans to expand into Southeast Asia, establishing offices in Malaysia and Australia in February 2025[49] - The Group focused on expanding its business into the Greater Bay Area and the Asia-Pacific market[97] - The Group is focusing on expanding its business opportunities in the Asia Pacific region and enhancing its technical capabilities in response to the rise of artificial intelligence technologies[112] - The Group plans to monitor geopolitical tensions and trade conflicts that may impact the global business environment and adjust strategies accordingly[144] - The Group is enhancing its capabilities in banking, finance, and insurance sectors to meet market demands, focusing on pre-sales, development, and after-sales services[151] - The Group's performance bonds issued to customers as security for contracts were approximately HK$113.2 million as of December 31, 2024, down from HK$126.8 million in 2023[156] Strategic Initiatives - The Group's strategic focus includes enhancing customer experience through innovative applications and simplifying IT operations to increase efficiency[21][24] - The Group signed a memorandum of understanding with Tencent to collaborate on cybersecurity solutions[45] - The Group established its fourth Offshore Development Center in the Greater Bay Area to enhance software development capabilities for Hong Kong, Macau, and overseas projects[106] - The establishment of a "Joint Development Technology Testing Center" with Kylinsoft aims to enhance technological capabilities and explore business opportunities in AI[136] - The Group's SOC in Guangzhou received the third-level certification for information system security from the Ministry of Public Security of the People's Republic of China[133] Market and Sector Performance - Revenue growth was particularly strong in the retail sector, along with an increase in revenue from the financial sector compared to the previous year[44] - The Group secured numerous orders from the government and healthcare sectors, including a contract worth over HK$100 million for a large-scale human resources management system[25] - The Security Operation Center (SOC) business has grown significantly, benefiting from government legislation for the security of critical infrastructure, with the Guangzhou SOC obtaining Level 3 certification[25] - The Intelligent Cybersecurity Services business generated service revenue of HK$213.5 million, reflecting stable demand for threat detection and security services[130] - The Integrated Managed Services Business achieved service revenue of HK$477.2 million, supported by market demand for IT Service Management (ITSM) projects and managed services[134] Social Responsibility and Community Engagement - The group is committed to sustainability, focusing on creating long-term value for shareholders, customers, employees, and the wider community[75] - The expanding Graduate Trainee program provided mentorship, skills training, and educational opportunities to empower youth, demonstrating the company's commitment to social contribution[77] - The company sponsored the CoolThink@JC Competition for the fifth consecutive year, supporting educational programs to develop computational thinking skills among students[77] Financial Position and Assets - The Group's bank balances and cash and time deposits totaled approximately HK$714.4 million, indicating a healthy financial position[98] - Total assets as of December 31, 2024, were HK$3,276.4 million, up from HK$3,110.9 million in 2023[94] - Total liabilities increased to HK$999.5 million in 2024 from HK$933.6 million in 2023[94] - Equity attributable to equity holders of the Company rose to HK$2,276.9 million in 2024, compared to HK$2,177.3 million in 2023[94] - The Group's gearing ratio was 0.0% as of December 31, 2024, down from 0.5% in 2023, indicating no reliance on bank borrowings[156] Events and Recognition - In 2024, the company hosted a series of events focused on five key sectors: Government, Healthcare, BFSI, Education, and Aviation, showcasing the latest technological trends[195] - Highlights of the events included digital government solutions, advanced healthcare systems, innovative Fintech platforms, comprehensive e-learning tools, and aviation optimization technologies, aimed at helping clients succeed in the digital age[196] - The commitment to providing value and driving innovation has been recognized by stakeholders, reinforcing the company's position as a trusted partner in the tech sector in Mainland China and Southeast Asia[193]

Financial Performance - Revenue for the year ended December 31, 2024, was HK$2,373.0 million, a 0.5% increase from HK$2,360.4 million in 2023[3] - Net profit for the year was HK$149.3 million, representing a 13.7% increase from HK$131.3 million in 2023[3] - Adjusted EBITDA for the year was HK$110.6 million, a slight decrease of 1.2% from HK$111.9 million in 2023[3] - Adjusted profit for the year was HK$87.1 million, a 9.4% increase from HK$79.6 million in 2023[3] - Operating cash flow increased significantly by 105.7% to HK$124.8 million from HK$60.7 million in 2023[3] - Total comprehensive income attributable to equity holders was HK$124.4 million, down from HK$142.5 million in 2023[9] - The company declared a final dividend of 3.0 cents per share, unchanged from 2023[3] - Total revenue for the year ended December 31, 2024, was HKD 2,372,976,000, a slight increase from HKD 2,360,425,000 in 2023, representing a growth of approximately 0.5%[22] - The company reported a pre-tax profit of HKD 168,087,000 for the year ended December 31, 2024, an increase from HKD 148,914,000 in 2023, representing a growth of approximately 12.9%[32] - The basic earnings per share for the year ended December 31, 2024, increased to 17.91 HKD from 15.75 HKD in 2023, representing a growth of 13.7%[55] Revenue Breakdown - Revenue from product sales decreased to HKD 1,109,716,000 in 2024 from HKD 1,179,728,000 in 2023, a decline of about 5.9%[22] - Revenue from service contracts increased significantly to HKD 1,263,260,000 in 2024, up from HKD 1,180,697,000 in 2023, marking an increase of approximately 7.0%[22] - Product sales decreased by 5.9% to HKD 1,109.7 million, while service revenue increased by 7.0% to HKD 1,263.3 million, with respective contributions of 46.8% and 53.2% to total revenue[75] Assets and Liabilities - The total assets of the company as of December 31, 2024, were HK$3,276.4 million, an increase from HK$3,110.9 million in 2023[10] - Non-current liabilities decreased from HKD 176,198,000 in 2023 to HKD 165,430,000 in 2024, a reduction of approximately 6.5%[11] - Current liabilities increased from HKD 757,380,000 in 2023 to HKD 834,083,000 in 2024, an increase of about 10.1%[11] - Total liabilities rose from HKD 933,578,000 in 2023 to HKD 999,513,000 in 2024, reflecting an increase of approximately 7.1%[11] - Total equity and liabilities increased from HKD 3,110,894,000 in 2023 to HKD 3,276,421,000 in 2024, marking a growth of about 5.3%[11] - Net current assets improved from HKD 698,074,000 in 2023 to HKD 828,266,000 in 2024, representing an increase of approximately 18.7%[11] - Total assets less current liabilities increased from HKD 2,353,514,000 in 2023 to HKD 2,442,338,000 in 2024, reflecting a growth of about 3.8%[11] Operational Efficiency - The company reported a significant increase in adjusted operating cash flow, indicating improved operational efficiency[3] - The operating capital ratio was 1.99:1, compared to 1.92:1 in the previous year, indicating a stable financial position[76] - The company has no outstanding borrowings as of December 31, 2024, and all bank loans were fully repaid during the year[76] Future Outlook and Strategy - The company aims to continue expanding its market presence and investing in new technologies to drive future growth[3] - The company plans to enhance its financial reporting by adopting new accounting standards effective from January 1, 2027, which will impact the presentation of financial statements[20] - The company is currently assessing the impact of new accounting standards on its consolidated income statement and cash flow statement structures[20] - The company is set to invest heavily in establishing a leading excellence center in 2024 to promote the integration of domestic and foreign technologies[87] - The company is focusing on industry-specific solutions for public and commercial clients, leveraging big data and analytics tools to drive digital transformation[79] Dividends and Shareholder Information - The proposed final dividend for the year ended December 31, 2024, remains at HKD 3.0 per share, consistent with the previous year[50] - The record date for the proposed final dividend is June 3, 2025, with a suspension of shareholder registration from May 29 to June 3, 2025[100] Corporate Governance - The company has adopted the standard code for securities transactions by directors and confirmed full compliance by all directors for the year ending December 31, 2024[105] - The company has complied with the corporate governance code for the year ending December 31, 2024[106] Employee and Market Expansion - The group employed 1,596 long-term and contract employees as of December 31, 2024, an increase from 1,495 in 2023[98] - The group plans to expand its business in Southeast Asia and has established offices in Malaysia and Australia to enhance its DevSecOps management services[88]

[2024 Interim Performance Overview](index=1&type=section&id=%E4%BA%8C%E9%9B%B6%E4%BA%8C%E5%9B%9B%E5%B9%B4%E5%BA%A6%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E6%A6%82%E8%A6%BD) The Group's H1 2024 performance shows stable core business revenue and gross profit, but profit for the period significantly decreased due to reduced non-recurring gains, while maintaining a robust financial position [Group Performance Highlights](index=3&type=section&id=%E9%9B%86%E5%9C%98%E6%A5%AD%E7%B8%BE%E4%BA%AE%E9%BB%9E) The Group's core business revenue and gross profit remained comparable to the prior period, with a slight increase in adjusted core business profit, but profit for the period significantly declined due to non-recurring items | Indicator | H1 2024 (million HKD) | H1 2023 (million HKD) | Change | | :--- | :--- | :--- | :--- | | Core Business Revenue | 1,225.5 | 1,242.4 | Comparable | | Gross Profit | 123.2 | Comparable | Comparable | | Adjusted Profit | 46.0 | 45.1 | +2.2% | | Profit for the Period | 38.1 | 91.1 | -58.2% | - Profit for the period significantly decreased primarily due to a reduction in the net gain on deemed disposal of partial interests in an associate[2](index=2&type=chunk) [Core Business Performance](index=3&type=section&id=%E6%A0%B8%E5%BF%83%E6%A5%AD%E5%8B%99%E8%A1%A8%E7%8F%BE) The Group's core business saw slight revenue declines in system integration and other businesses, and converged technology services, yet demonstrated healthy operational efficiency and cash generation through strong adjusted EBITDA and adjusted operating cash flow | Business Type | H1 2024 (million HKD) | H1 2023 (million HKD) | Change Rate | | :--- | :--- | :--- | :--- | | System Integration and Other Businesses | 626.1 | 667.1 | -6.1% | | Converged Technology Services | 668.9 | 646.8 | +3.4% | | Total Revenue | 1,225.5 | 1,242.4 | -1.4% | | Indicator | H1 2024 (million HKD) | H1 2023 (million HKD) | Change Rate | | :--- | :--- | :--- | :--- | | Adjusted EBITDA | 58.2 | 65.2 | -10.7% | | Adjusted Profit | 46.0 | 45.1 | +2.2% | | Adjusted Operating Cash Flow | 223.5 | 174.9 | +27.8% | [Interests in Associates and Non-Operating Items](index=3&type=section&id=%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E6%AC%8A%E7%9B%8A%E5%8F%8A%E9%9D%9E%E7%B6%93%E7%87%9F%E9%A0%85%E7%9B%AE) The contribution from associates decreased, and the net gain on deemed disposal of partial interests in an associate, a non-operating item, significantly declined, negatively impacting the Group's overall profit | Indicator | H1 2024 (million HKD) | H1 2023 (million HKD) | | :--- | :--- | :--- | | Share of Results of Associates | (7.9) | (13.2) | | Net Gain on Deemed Disposal of Partial Interests in an Associate | 0.1 | 60.6 | [Key Group Financial Indicators](index=4&type=section&id=%E9%9B%86%E5%9C%98%E4%B8%BB%E8%A6%81%E8%B2%A1%E5%8B%99%E6%8C%87%E6%A8%99) The Group's new contracts awarded and revenue remained largely comparable to the prior period, but profit for the period and basic earnings per share significantly decreased due to non-recurring items | Indicator | H1 2024 | H1 2023 | Change Rate | | :--- | :--- | :--- | :--- | | New Contracts Awarded (million HKD) | 1,295.0 | 1,313.9 | -1.4% | | Revenue (million HKD) | 1,225.5 | 1,242.4 | -1.4% | | Profit for the Period (million HKD) | 38.1 | 91.1 | -58.2% | | Basic Earnings Per Share (HK cents) | 4.57 | 10.93 | -58.2% | [DevSecOps Core Business Highlights](index=4&type=section&id=2.%20DevSecOps%20%E6%A0%B8%E5%BF%83%E6%A5%AD%E5%8B%99%E4%BA%AE%E9%BB%9E) The Group made progress across its three core DevSecOps business areas—innovative industry solutions, intelligent cybersecurity, and IT integrated management—achieving growth in service orders and revenue, while actively incorporating AI and blockchain to enhance service capabilities and market competitiveness [Innovative Industry Solutions Business (Dev)](index=4&type=section&id=%E5%89%B5%E6%96%B0%E8%A1%8C%E6%A5%AD%E8%A7%A3%E6%B1%BA%E6%96%B9%E6%A1%88%E6%A5%AD%E5%8B%99%20%28Dev%29) The innovative industry solutions business saw increased service orders and recorded **249.8 million HKD** in revenue, primarily driven by application development and IT outsourcing services, while actively leveraging blockchain technology and overseas delivery centers to support cross-border payment services - Service orders for application development and IT outsourcing increased, with service revenue for the period reaching **249.8 million HKD**[4](index=4&type=chunk)[75](index=75&type=chunk) - The Group actively promotes Xinchuang brands and technology applications, participating in the "iAM Smart+" platform construction to assist the government in advancing smart cities[4](index=4&type=chunk)[75](index=75&type=chunk) - Innovative use of blockchain technology enhances technical support and applications for cross-institutional platforms and apps, also supporting electronic payment system enterprises in providing Greater Bay Area cross-border and Southeast Asia payment services[4](index=4&type=chunk)[75](index=75&type=chunk) [Intelligent Cybersecurity Services Business (Sec)](index=4&type=section&id=%E6%99%BA%E8%83%BD%E7%B6%B2%E7%B5%A1%E5%AE%89%E5%85%A8%E6%9C%8D%E5%8B%99%E6%A5%AD%E5%8B%99%20%28Sec%29) The intelligent cybersecurity services business experienced growth in new service orders, with revenue reaching **105.4 million HKD**, primarily driven by sustained demand for cybersecurity services, Security Operations Center (SOC), and security management services, while utilizing AI to enhance SOC platform efficiency - New service orders increased, with service revenue for the period reaching **105.4 million HKD**, primarily driven by sustained demand for cybersecurity services, Security Operations Center (SOC), and security management services[4](index=4&type=chunk)[76](index=76&type=chunk) - Large-scale network installation and data center upgrade projects were implemented in the aviation industry, while banking and retail clients adopted SOC and security management services[4](index=4&type=chunk)[76](index=76&type=chunk) - Artificial intelligence (AI) is being leveraged to enhance the SOC platform for faster response and resolution of evolving cyber threats and security incidents[4](index=4&type=chunk)[76](index=76&type=chunk) [IT Integrated Management Services Business (Ops)](index=4&type=section&id=%E8%B3%87%E8%A讯%E7%A7%91%E6%8A%80%E9%9B%86%E6%88%90%E7%AE%A1%E7%90%86%E6%9C%8D%E5%8B%99%E6%A5%AD%E5%8B%99%20%28Ops%29) The IT integrated management services business saw an increase in new service orders, with revenue reaching **244.6 million HKD**, driven by demand for ITSM, DevSecOps, and managed services, successfully providing large-scale critical system migration services for an entertainment organization and undertaking a private cloud expansion project - New service orders increased, with service revenue for the period reaching **244.6 million HKD**, driven by demand for ITSM, DevSecOps, and managed services[4](index=4&type=chunk)[77](index=77&type=chunk) - Successfully provided large-scale business-critical system migration services for an entertainment organization, demonstrating service integration capabilities[4](index=4&type=chunk)[77](index=77&type=chunk) - A private cloud expansion project is underway to provide Infrastructure-as-a-Service[4](index=4&type=chunk)[77](index=77&type=chunk) [Building a "Center of Excellence" to Promote Xinchuang Products](index=5&type=section&id=3.%20%E6%A7%8B%E5%BB%BA%E3%80%8C%E5%8D%93%E8%B6%8A%E4%B8%AD%E5%BF%83%E3%80%8D%E3%80%80%E6%8E%A8%E5%BB%A3%E4%BF%A1%E5%89%B5%E7%94%A2%E5%93%81) The Group established a "Center of Excellence" to foster the integration and innovative application of domestic and international IT products in solutions, serving clients in Hong Kong and the Greater Bay Area, supported by over **70 international and 30 Xinchuang IT vendors**, making it a leading industry player - The "Center of Excellence" aims to promote the integration and innovative application of domestic and international IT products in IT solutions to better serve clients in Hong Kong and the Greater Bay Area[5](index=5&type=chunk)[78](index=78&type=chunk) - The center is supported by over **70 international IT vendors** and over **30 Xinchuang IT vendors**, making its scale leading in the industry[5](index=5&type=chunk)[78](index=78&type=chunk) - It provides objective evaluation and comparative analysis reports, allowing clients to understand IT product integration and innovative applications at the Hong Kong exhibition center and conduct system testing[5](index=5&type=chunk) [Industry-Oriented, Greater Bay Area Layout](index=7&type=section&id=4.%20%E8%A1%8C%E6%A5%AD%E5%B0%8E%E5%90%91%E3%80%80%E4%BD%88%E5%B1%80%E7%81%A3%E5%8D%80) The Group actively participates in industry events to promote digital Greater Bay Area financial development opportunities and Chinese Xinchuang technology, enhancing brand awareness and introducing clients to the latest industry technology trends, including Large Language Models (LLM) - Actively participates in industry events to expand brand awareness and bring the latest industry technology trends to clients[6](index=6&type=chunk)[79](index=79&type=chunk) - Deepens engagement in digital Greater Bay Area financial development opportunities, promoting digital Greater Bay Area financial orientation to the financial industry[6](index=6&type=chunk)[79](index=79&type=chunk) - Actively promotes Chinese Xinchuang technology, introducing government departments to innovative applications and integrated practices of Chinese technology, including Large Language Models (LLM)[6](index=6&type=chunk)[79](index=79&type=chunk) [Performance of Associates](index=7&type=section&id=5.%20%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E6%A5%AD%E7%B8%BE%E8%A1%A8%E7%8F%BE) The Group's European and American associate GDH made significant strides in AI technology, offering customized solutions to Fortune 500 companies, while Asia Pacific associate i-Sprint achieved revenue and EBITDA growth through optimized management and technical certifications, strengthening its industry position [European and American Associate Grid Dynamics Holdings, Inc. (GDH)](index=7&type=section&id=%E6%AD%90%E7%BE%8E%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%20Grid%20Dynamics%20Holdings%2C%20Inc.%EF%BC%88%E3%80%8CGDH%E3%80%8D%EF%BC%89) GDH achieved significant advancements in artificial intelligence technology, providing customized solutions to Fortune 500 companies; its H1 total revenue reached **162.9 million USD**, non-GAAP EBITDA was **22.0 million USD**, with retail, technology, media, and telecom sectors accounting for nearly **60.6%** of revenue - Significantly enhanced artificial intelligence technology, currently providing approximately **30 tailored solutions and services** to Fortune 500 companies across various industries[7](index=7&type=chunk)[80](index=80&type=chunk) | Indicator | Amount (million USD) | HKD Equivalent (million HKD) | | :--- | :--- | :--- | | Total Revenue | 162.9 | 1,271.6 | | Non-GAAP EBITDA | 22.0 | 172.0 | - Revenue from the retail, technology, media, and telecom sectors accounted for **60.6%** of its total revenue[80](index=80&type=chunk) [Key Asia Pacific Associate i-Sprint Holdings Limited (i-Sprint)](index=8&type=section&id=%E4%B8%BB%E8%A6%81%E4%BA%9E%E5%A4%AA%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E4%B9%8B%E4%B8%80%20i-Sprint%20Holdings%20Limited%EF%BC%88%E3%80%8Ci-Sprint%E3%80%8D%EF%BC%89) i-Sprint achieved revenue and EBITDA growth through optimized management, deepening engagement with key clients, and replicating successful cases; its Universal Authentication System (UAS) received FIDO2 certification and multiple cybersecurity awards, further solidifying its industry position - Business growth was driven by various initiatives, including optimized management, deepening engagement with key clients, and replicating successful cases[7](index=7&type=chunk)[80](index=80&type=chunk) | Indicator | Amount (million HKD) | Growth Rate | | :--- | :--- | :--- | | Revenue | 68.7 | +14.8% | | EBITDA | 15.8 | +37.5% | - The Universal Authentication System (UAS) obtained FIDO2 certification and received multiple awards in cybersecurity and other fields, enhancing the company's industry position[7](index=7&type=chunk)[80](index=80&type=chunk) [Future Outlook](index=8&type=section&id=6.%20%E6%9C%AA%E4%BE%86%E5%B1%95%E6%9C%9B) Facing challenges like talent attrition, geopolitical risks, and market competition, the Group will accelerate the construction of a Chinese-funded brand ecosystem, establish an offshore development center, and leverage AI to enhance management services, aiming to enrich DevSecOps integration capabilities, focus on advantageous industries like government and banking, and become a leading converged technology service partner in the region - Accelerate the construction of a Chinese-funded brand ecosystem, forging partnerships with Chinese vendors to jointly open up markets[7](index=7&type=chunk)[81](index=81&type=chunk) - Prepare to establish an offshore development center on the west bank of the Pearl River Estuary and build a remote omnichannel 24/7 management service support system to provide more intelligent, round-the-clock, and cross-regional professional IT support services[7](index=7&type=chunk)[82](index=82&type=chunk) - Continue to enrich DevSecOps integration capabilities and expand the talent pool, including introducing professionals from mainland China[7](index=7&type=chunk)[82](index=82&type=chunk) - Persistently advance management services using the DevSecOps management service maturity model and focus on developing advantageous industries such as government and banking sectors[7](index=7&type=chunk)[82](index=82&type=chunk) - Committed to becoming a leading converged technology service partner in the region[8](index=8&type=chunk) [Condensed Interim Financial Information](index=11&type=section&id=%E7%B0%A1%E6%98%8E%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99) This section presents the unaudited condensed consolidated interim financial information for the six months ended June 30, 2024, including the statements of profit or loss, comprehensive income, financial position, changes in equity, and cash flows, along with detailed financial notes, all prepared in compliance with Listing Rules and HKAS 34 - The financial information is prepared in accordance with the Listing Rules of the Stock Exchange and Hong Kong Accounting Standard 34 "Interim Financial Reporting"[22](index=22&type=chunk) - Accounting policies are consistent with the annual consolidated financial statements for the year ended December 31, 2023, with new revised Hong Kong Financial Reporting Standards adopted but without significant impact[22](index=22&type=chunk)[23](index=23&type=chunk) - Detailed disclosures cover financial risk management, revenue and segment information, specific explanations for various profit or loss and asset and liability items[26](index=26&type=chunk)[30](index=30&type=chunk)[45](index=45&type=chunk)[56](index=56&type=chunk) [Independent Review Report on Condensed Interim Financial Information](index=13&type=section&id=%E7%B0%A1%E6%98%8E%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E7%8D%A8%E7%AB%8B%E5%AF%A9%E9%96%B1%E5%A0%B1%E5%91%8A) The independent auditor reviewed the Group's condensed consolidated interim financial information for the six months ended June 30, 2024, concluding that no material aspects were found to be non-compliant with Hong Kong Accounting Standard 34 "Interim Financial Reporting" - The scope of review covered the condensed consolidated statement of financial position, statement of profit or loss, statement of comprehensive income, statement of changes in equity, and statement of cash flows[10](index=10&type=chunk) - The review concluded that no matters were identified that would lead the auditor to believe the interim financial information was not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting"[12](index=12&type=chunk) - The scope of the review is substantially less than an audit conducted in accordance with Hong Kong Standards on Auditing, thus no audit opinion is expressed[11](index=11&type=chunk) [Condensed Consolidated Statement of Profit or Loss](index=14&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2024, the Group's revenue slightly decreased, while cost of sales and services also reduced; however, a significant decrease in other net gains (primarily from deemed disposal of partial interests in an associate) led to a substantial decline in profit before income tax and profit for the period | Indicator | H1 2024 (thousand HKD) | H1 2023 (thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Revenue | 1,225,462 | 1,242,379 | -1.4% | | Profit for the Period Attributable to Equity Holders of the Company | 38,101 | 91,091 | -58.2% | | Basic Earnings Per Share (HK cents) | 4.57 | 10.93 | -58.2% | - Other net (losses)/gains switched from a gain of **59,491 thousand HKD** in H1 2023 to a loss of **(921) thousand HKD** in H1 2024, which is the primary reason for the decrease in profit[13](index=13&type=chunk) [Condensed Consolidated Statement of Comprehensive Income](index=15&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2024, the Group's profit for the period significantly decreased, and total comprehensive income attributable to equity holders of the Company also substantially reduced due to exchange differences on translating overseas operations and a switch to losses in share of other comprehensive (losses)/income of associates | Indicator | H1 2024 (thousand HKD) | H1 2023 (thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Profit for the Period | 38,101 | 91,091 | -58.2% | | Exchange Differences on Translating Overseas Operations | (4,638) | 4,484 | Switched from gain to loss | | Share of Other Comprehensive (Losses)/Income of Associates | (1,508) | 3,994 | Switched from gain to loss | | Total Comprehensive Income for the Period Attributable to Equity Holders of the Company | 31,955 | 99,569 | -67.9% | [Condensed Consolidated Statement of Financial Position](index=16&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2024, the Group's total assets slightly increased, primarily driven by a rise in current assets, particularly inventories, time deposits, and bank balances and cash; non-current liabilities remained stable, while current liabilities significantly increased, mainly due to growth in contract liabilities and trade payables | Indicator | June 30, 2024 (thousand HKD) | December 31, 2023 (thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 3,227,365 | 3,110,894 | +3.7% | | Current Assets | 1,585,539 | 1,455,454 | +8.9% | | Current Liabilities | 867,638 | 757,380 | +14.6% | | Equity Attributable to Equity Holders of the Company | 2,184,260 | 2,177,316 | +0.3% | - Among current assets, inventories, time deposits, and bank balances and cash all showed significant growth, with bank balances and cash increasing by **51.5%**[15](index=15&type=chunk) - The increase in current liabilities was primarily driven by contract liabilities (**+45.7%**) and trade payables (**+12.6%**)[16](index=16&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=18&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) For the six months ended June 30, 2024, the Group's profit for the period and total comprehensive income both significantly decreased, while a final dividend was paid, resulting in a slight increase in total equity attributable to equity holders of the Company, primarily due to growth in retained earnings | Indicator | H1 2024 (thousand HKD) | H1 2023 (thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Profit for the Period | 38,101 | 91,091 | -58.2% | | Total Comprehensive Income for the Period | 31,955 | 99,569 | -67.9% | | Exchange Fluctuation Reserve | (6,146) | 8,478 | Switched from positive to negative | | Final Dividend Paid | (25,011) | (25,011) | Comparable | - As of June 30, 2024, retained earnings were **1,395,713 thousand HKD**, an increase from **1,382,584 thousand HKD** at the beginning of the year[18](index=18&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=20&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For the six months ended June 30, 2024, the Group's net cash from operating activities significantly increased, but net cash used in investing activities also substantially grew, primarily due to increased placements of time deposits; net cash used in financing activities decreased, ultimately leading to a higher net increase in cash and cash equivalents compared to the prior period | Indicator | H1 2024 (thousand HKD) | H1 2023 (thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Net Cash from Operating Activities | 223,527 | 172,184 | +29.8% | | Net Cash Used in Investing Activities | (51,953) | (5,719) | Significantly increased | | Net Cash Used in Financing Activities | (40,011) | (52,782) | -24.2% | | Net Increase in Cash and Cash Equivalents | 131,563 | 113,683 | +15.7% | - The significant increase in net cash used in investing activities was primarily due to an increase in time deposits from **6,403 thousand HKD** to **49,229 thousand HKD**[19](index=19&type=chunk) [Notes to the Interim Financial Information](index=21&type=section&id=%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E9%99%84%E8%A8%BB) This section provides detailed notes to the condensed consolidated interim financial information for the six months ended June 30, 2024, covering the basis of preparation, accounting policies, financial risk management, revenue and segment information, specific explanations for various profit or loss and asset and liability items, as well as related party transactions and events after the reporting period, offering essential supplementary information for understanding the financial statements [1 General Information](index=21&type=section&id=1%20%E4%B8%80%E8%88%AC%E4%BA%8B%E9%A0%85) Automated Systems Holdings Limited is an exempted company incorporated in Bermuda with its shares listed on the Hong Kong Stock Exchange, directly controlled by Teamsun Technology (Hong Kong) Limited, with Beijing Teamsun Technology Co., Ltd. as the ultimate controlling company; this interim financial information is presented in HKD and approved for publication by the Board - The Company is incorporated in Bermuda, with its shares listed on the Hong Kong Stock Exchange[21](index=21&type=chunk) - The direct controlling company is Teamsun Technology (Hong Kong) Limited, and the ultimate controlling company is Beijing Teamsun Technology Co., Ltd[21](index=21&type=chunk) - The interim financial information is presented in HKD (thousand HKD) and was approved for publication by the Board on August 21, 2024[21](index=21&type=chunk) [2 Basis of Preparation](index=21&type=section&id=2%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) The interim financial information for the six months ended June 30, 2024, is prepared in accordance with the Listing Rules of the Stock Exchange and Hong Kong Accounting Standard 34 "Interim Financial Reporting," and should be read in conjunction with the Group's annual consolidated financial statements for the year ended December 31, 2023 - The basis of preparation complies 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" issued by the Hong Kong Institute of Certified Public Accountants[22](index=22&type=chunk) - It should be read in conjunction with the Group's annual consolidated financial statements for the year ended December 31, 2023[22](index=22&type=chunk) [3 Adoption of Revised Hong Kong Financial Reporting Standards](index=21&type=section&id=3%20%E7%B6%93%E4%BF%AE%E8%A8%82%E9%A6%99%E6%B8%AF%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A%E6%BA%96%E5%89%87%E4%B9%8B%E6%8E%A1%E7%B4%8D) The Group adopted revised Hong Kong Financial Reporting Standards effective January 1, 2024, including amendments related to lease liabilities in sale and leaseback transactions, classification of liabilities as current or non-current, and supplier finance arrangements; these revisions had no material impact on the results and financial position for the current and prior periods - Revised Hong Kong Financial Reporting Standards effective January 1, 2024, have been adopted[23](index=23&type=chunk) - Key amendments include HKFRS 16 (Amendments) and HKAS 1 (Amendments)[23](index=23&type=chunk) - The adoption of these revised HKFRSs had no material impact on the Group's results and financial position prepared and presented for the current and prior periods[23](index=23&type=chunk) [4 Critical Accounting Estimates and Judgements](index=22&type=section&id=4%20%E9%87%8D%E5%A4%A7%E6%9C%83%E8%A8%88%E4%BC%B0%E8%A8%88%E5%8F%8A%E5%88%A4%E6%96%B7) The judgements, estimates, and assumptions made by management in preparing the interim financial information, including the primary sources of estimation uncertainty, are consistent with those applied in the Group's financial statements for the year ended December 31, 2023 - The judgements, estimates, and assumptions applied in this interim financial information are consistent with those in the Group's latest financial statements for the year ended December 31, 2023[25](index=25&type=chunk) [5 Financial Risk Management](index=22&type=section&id=5%20%E8%B2%A1%E5%8B%99%E9%A2%A8%E9%9A%AA%E7%AE%A1%E7%90%86) The Group's operations are exposed to various financial risks, including market risk (foreign exchange risk, interest rate risk), credit risk, and liquidity risk, with no changes in risk management functions or policies since the year ended December 31, 2023 - The Group's operations are exposed to various financial risks: market risk (including foreign exchange risk and interest rate risk), credit risk, and liquidity risk[26](index=26&type=chunk) - There have been no changes in risk management functions or policies since the year ended December 31, 2023[26](index=26&type=chunk) - There were no significant differences in the fair value of unlisted preference share investments, and no transfers between Level 1, Level 2, and Level 3[29](index=29&type=chunk) [6 Revenue and Segment Information](index=23&type=section&id=6%20%E6%94%B6%E5%85%A5%E5%8F%8A%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) For the six months ended June 30, 2024, the Group's revenue slightly decreased, with product sales declining while service revenue increased, leading to a more balanced proportion of product sales and service revenue in total revenue; the Group's main operating segments are IT products and IT services, with revenue and profit disclosed for each segment | Indicator | H1 2024 (thousand HKD) | H1 2023 (thousand HKD) | Change | Share (2024) | Share (2023) | | :--- | :--- | :--- | :--- | :--- | :--- | | Sales of Goods | 611,325 | 664,085 | -7.9% | 49.9% | 53.5% | | Revenue from Service Contracts | 614,137 | 578,294 | +6.2% | 50.1% | 46.5% | | Total Revenue | 1,225,462 | 1,242,379 | -1.4% | 100% | 100% | - The Group consists of two operating segments: IT products and IT services[31](index=31&type=chunk) | Segment | H1 2024 Reportable Segment Profit (thousand HKD) | H1 2023 Reportable Segment Profit (thousand HKD) | | :--- | :--- | :--- | | IT Products | 67,276 | 59,746 | | IT Services | 8,087 | 20,417 | - For the six months ended June 30, 2024, one customer's transactions exceeded **10%** of the Group's revenue, amounting to approximately **122,716 thousand HKD**[40](index=40&type=chunk) [7 Other Income](index=28&type=section&id=7%20%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) For the six months ended June 30, 2024, the Group's other income significantly increased, primarily driven by a substantial rise in bank interest income | Indicator | H1 2024 (thousand HKD) | H1 2023 (thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Other Income | 13,332 | 5,038 | +164.6% | | Bank Interest Income | 11,237 | 1,976 | +468.7% | [8 Other Net (Losses)/Gains](index=29&type=section&id=8%20%E5%85%B6%E4%BB%96%E6%B7%A8%EF%BC%88%E8%99%A7%E6%90%8D%EF%BC%89%EF%BC%8F%E6%94%B6%E7%9B%8A) For the six months ended June 30, 2024, the Group's other net (losses)/gains switched from a net gain in the prior period to a net loss, primarily due to a significant reduction in the net gain on deemed disposal of partial interests in an associate | Indicator | H1 2024 (thousand HKD) | H1 2023 (thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Other Net (Losses)/Gains | (921) | 59,491 | Switched from gain to loss | | Net Gain on Deemed Disposal of Partial Interests in an Associate | 58 | 60,553 | -99.9% | [9 Finance Income](index=29&type=section&id=9%20%E8%B2%A1%E5%8B%99%E6%94%B6%E5%85%A5) Finance income refers to the increase in discounting recognized after initially recognizing finance lease receivables at their fair value - Finance income refers to the increase in discounting recognized after initially recognizing finance lease receivables at their fair value[44](index=44&type=chunk) [10 Profit Before Income Tax](index=29&type=section&id=10%20%E9%99%A4%E6%89%80%E5%BE%97%E7%A8%85%E5%89%8D%E6%BA%A2%E5%88%A9) For the six months ended June 30, 2024, the Group's profit before income tax significantly decreased, primarily affected by changes in other net (losses)/gains; depreciation expenses and employee benefit expenses increased | Indicator | H1 2024 (thousand HKD) | H1 2023 (thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Profit Before Income Tax | 47,959 | 100,802 | -52.4% | | Depreciation of Property, Plant and Equipment | 9,879 | 8,725 | +13.2% | | Employee Benefit Expenses | 340,358 | 317,835 | +7.1% | [11 Income Tax Expense](index=30&type=section&id=11%20%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) For the six months ended June 30, 2024, the Group's income tax expense slightly increased, with Hong Kong profits tax decreasing but overseas tax significantly increasing | Indicator | H1 2024 (thousand HKD) | H1 2023 (thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Income Tax Expense | 9,858 | 9,711 | +1.5% | | Hong Kong Profits Tax | 7,663 | 8,624 | -11.2% | | Overseas Tax | 1,959 | 566 | +246.1% | - Hong Kong profits tax is calculated under the two-tiered profits tax rate regime[46](index=46&type=chunk) [12 Dividends](index=30&type=section&id=12%20%E8%82%A1%E6%81%AF) For the six months ended June 30, 2024, the Group paid a final dividend of **3.0 HK cents** per share for the year ended December 31, 2023, totaling **25,011 thousand HKD**; the Board does not recommend an interim dividend for the current period | Indicator | H1 2024 (thousand HKD) | H1 2023 (thousand HKD) | | :--- | :--- | :--- | | Dividends Paid (Final) | 25,011 | 25,011 | - The Board does not propose to declare an interim dividend for the six months ended June 30, 2024[47](index=47&type=chunk) [13 Earnings Per Share Attributable to Equity Holders of the Company](index=31&type=section&id=13%20%E6%9C%AC%E5%85%AC%E5%8F%B8%E8%82%A1%E6%9C%AC%E6%8C%81%E6%9C%89%E4%BA%BA%E6%87%89%E4%BD%94%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) For the six months ended June 30, 2024, basic and diluted earnings per share attributable to equity holders of the Company were **4.57 HK cents**, a significant decrease from **10.93 HK cents** in the prior period, primarily due to reduced profit for the period | Indicator | H1 2024 (HK cents) | H1 2023 (HK cents) | Change | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share | 4.57 | 10.93 | -58.2% | | Diluted Earnings Per Share | 4.57 | 10.93 | -58.2% | - The weighted average number of ordinary shares remained at **833,696,000** shares[48](index=48&type=chunk)[49](index=49&type=chunk) - Share options and dilutive instruments issued by associates were considered anti-dilutive and not included in diluted earnings per share[49](index=49&type=chunk) [14 Property, Plant and Equipment](index=32&type=section&id=14%20%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%A8%AD%E5%82%99) For the six months ended June 30, 2024, the Group's additions to property, plant and equipment significantly increased, primarily for computer equipment; right-of-use assets also increased, mainly related to office properties, and there was no material difference between the carrying amount and fair value of land and buildings | Indicator | H1 2024 (thousand HKD) | H1 2023 (thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Additions to Property, Plant and Equipment | 4,331 | 1,292 | +235.2% | - Right-of-use assets increased by approximately **714 thousand HKD**, with revaluation of leased right-of-use assets by approximately **2,630 thousand HKD**, primarily related to office properties[50](index=50&type=chunk) - There was no material difference between the carrying amount and fair value of land and buildings, with the last revaluation date being December 31, 2023[50](index=50&type=chunk) - As of December 31, 2023, land and buildings with a carrying amount of approximately **156,000 thousand HKD** were pledged to secure bank borrowings[50](index=50&type=chunk) [15 Investment Properties](index=32&type=section&id=15%20%E6%8A%95%E8%B3%87%E7%89%A9%E6%A5%AD) As of June 30, 2024, there was no material difference between the carrying amount and fair value of the Group's investment properties, with the last revaluation date being December 31, 2023; investment properties with a carrying amount of **50,800 thousand HKD** were pledged to secure bank borrowings - Investment properties were last revalued by independent professional valuers on a market value basis on December 31, 2023[51](index=51&type=chunk) - As of June 30, 2024, the directors believe there is no material difference between the carrying amount and fair value of investment properties[51](index=51&type=chunk) - As of December 31, 2023, investment properties with a carrying amount of **50,800 thousand HKD** were pledged to secure bank borrowings[51](index=51&type=chunk) [16 Interests in Associates](index=32&type=section&id=16%20%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E6%AC%8A%E7%9B%8A) As of June 30, 2024, the Group's interests in associates slightly decreased, primarily due to a decline in the fair value of listed associate GDH and the impact of share of results of associates and exchange adjustments; the Group's equity interest in GDH was diluted to **19.31%** | Indicator | June 30, 2024 (thousand HKD) | December 31, 2023 (thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Interests in Associates | 1,247,512 | 1,258,056 | -0.8% | - The fair value of listed associate GDH decreased from **1,541,401 thousand HKD** as of December 31, 2023, to **1,215,807 thousand HKD** as of June 30, 2024[53](index=53&type=chunk) - The Group's equity interest in GDH was diluted from **19.51%** as of December 31, 2023, to **19.31%** as of June 30, 2024, and a net gain of **58 thousand HKD** on deemed disposal of partial interests in an associate was recognized[54](index=54&type=chunk)[55](index=55&type=chunk) [17 Trade Receivables](index=33&type=section&id=17%20%E6%87%89%E6%94%B6%E8%B2%BF%E6%98%93%E6%AC%BE%E9%A0%85) As of June 30, 2024, the Group's net trade receivables decreased, primarily due to a reduction in amounts aged 0-30 days; the Group generally grants a **30-day credit period** to all customers and implements credit control measures | Indicator | June 30, 2024 (thousand HKD) | December 31, 2023 (thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Net Trade Receivables | 194,489 | 228,692 | -14.9% | | Ageing | June 30, 2024 (thousand HKD) | December 31, 2023 (thousand HKD) | | :--- | :--- | :--- | | 0 to 30 days | 92,430 | 131,852 | | 31 to 60 days | 28,875 | 55,324 | | 61 to 90 days | 34,150 | 19,190 | | Over 90 days | 48,410 | 31,838 | - All of the Group's customers are generally granted a **30-day credit period**, and a credit control system is in place[56](index=56&type=chunk) [18 Other Receivables, Deposits and Prepayments](index=34&type=section&id=18%20%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85%E3%80%81%E6%8C%89%E9%87%91%E5%8F%8A%E9%A0%90%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2024, the Group's net other receivables, deposits, and prepayments significantly increased, primarily due to growth in other receivables (especially interest receivable) and prepayments (particularly prepayments for purchases, prepaid insurance, and prepaid maintenance fees) | Indicator | June 30, 2024 (thousand HKD) | December 31, 2023 (thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Net Amount | 63,923 | 44,250 | +44.5% | - Other receivables primarily include interest receivable of **9,990 thousand HKD**, a significant increase from December 31, 2023, mainly due to increased time deposits during the period[58](index=58&type=chunk) - Prepayments primarily include prepayments for purchases of **19,686 thousand HKD**, prepaid insurance expenses of **4,600 thousand HKD**, and prepaid maintenance fees of **14,671 thousand HKD**[59](index=59&type=chunk) [19 Trade Payables](index=35&type=section&id=19%20%E6%87%89%E4%BB%98%E8%B2%BF%E6%98%93%E6%AC%BE%E9%A0%85) As of June 30, 2024, the Group's total trade payables increased, mainly reflected in the growth of current and within 30-day aged amounts | Indicator | June 30, 2024 (thousand HKD) | December 31, 2023 (thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Total Trade Payables | 341,067 | 302,821 | +12.6% | | Ageing | June 30, 2024 (thousand HKD) | December 31, 2023 (thousand HKD) | | :--- | :--- | :--- | | Current | 202,601 | 222,681 | | Within 30 days | 91,399 | 51,376 | | 31 to 60 days | 24,730 | 6,132 | [20 Other Payables and Accruals](index=35&type=section&id=20%20%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85%E5%8F%8A%E6%87%89%E8%A8%88%E8%B2%BB%E7%94%A8) As of June 30, 2024, the Group's total other payables and accruals decreased, primarily due to a reduction in accruals, particularly for employee benefit expenses | Indicator | June 30, 2024 (thousand HKD) | December 31, 2023 (thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Total Other Payables and Accruals | 140,298 | 179,245 | -21.7% | - Accruals primarily include accrued employee benefit expenses of approximately **94,250 thousand HKD**, a decrease from **140,223 thousand HKD** as of December 31, 2023[61](index=61&type=chunk) [21 Contract Liabilities](index=35&type=section&id=21%20%E9%A0%90%E6%94%B6%E6%94%B6%E7%9B%8A) As of June 30, 2024, the Group's contract liabilities significantly increased, primarily due to a rise in advance receipts for orders and deposits received from customers during the period | Indicator | June 30, 2024 (thousand HKD) | December 31, 2023 (thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Contract Liabilities | 369,534 | 253,535 | +45.7% | - The increase in contract liabilities is primarily due to an increase in advance receipts for orders and deposits received from customers during the period[16](index=16&type=chunk)[62](index=62&type=chunk) [22 Bank Borrowings](index=36&type=section&id=22%20%E9%8A%80%E8%A1%8C%E5%80%9F%E8%B2%B8) For the six months ended June 30, 2024, all of the Group's bank borrowings were fully repaid, resulting in no outstanding borrowings at period-end; previously, bank borrowings were secured by assets such as land and buildings and investment properties - All bank borrowings were fully repaid during the six months ended June 30, 2024[63](index=63&type=chunk) - As of December 31, 2023, bank borrowings were secured by land and buildings with a carrying amount of approximately **156,000 thousand HKD** and investment properties of **50,800 thousand HKD**[63](index=63&type=chunk) [23 Share Capital](index=36&type=section&id=23%20%E8%82%A1%E6%9C%AC) As of June 30, 2024, the Group's authorized and issued and fully paid share capital remained stable, with no change in the number of ordinary shares with a par value of **0.10 HKD** | Indicator | Number of Shares | Amount (thousand HKD) | | :--- | :--- | :--- | | Authorized Share Capital | 2,000,000,000 | 200,000 | | Issued and Fully Paid Share Capital | 833,696,492 | 83,370 | - All shares issued during the period or year rank pari passu in all respects with the existing shares of the Company at that time[65](index=65&type=chunk) [24 Contingent Liabilities](index=37&type=section&id=24%20%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2024, performance guarantees provided by banks on behalf of the Group to customers as contract collateral amounted to approximately **106,040 thousand HKD**, a decrease from December 31, 2023 | Indicator | June 30, 2024 (thousand HKD) | December 31, 2023 (thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Performance Guarantees | 106,040 | 126,819 | -16.4% | [25 Capital Commitments](index=37&type=section&id=25%20%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94) As of June 30, 2024, the Group's contracted but unprovided capital expenditure for property, plant and equipment was approximately **684 thousand HKD**, an increase from December 31, 2023 | Indicator | June 30, 2024 (thousand HKD) | December 31, 2023 (thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Capital Expenditure for Property, Plant and Equipment | 684 | 369 | +85.4% | [26 Seasonality](index=37&type=section&id=26%20%E5%AD%A3%E7%AF%80%E6%80%A7) The Group's business of selling products and providing related services is not significantly affected by seasonal factors - The business of selling products and providing related services is not significantly affected by seasonal factors[68](index=68&type=chunk) [27 Related Party Transactions](index=37&type=section&id=27%20%E9%97%9C%E9%80%A3%E4%BA%BA%E5%A3%AB%E4%BA%A4%E6%98%93) As of June 30, 2024, Teamsun Technology (Hong Kong) Limited held **67.66%** of the Company's issued shares, serving as the direct controlling company; the Group engaged in related party transactions with fellow subsidiaries and associates, including service fees, sales of goods, purchases of goods, and rental income, all conducted on normal commercial terms - Teamsun Technology (Hong Kong) Limited holds **67.66%** of the Company's issued shares, serving as the direct controlling company, with Teamsun Technology Co., Ltd. as the ultimate controlling company[69](index=69&type=chunk) - Transactions included service fees, sales of goods, purchases of goods, and rental income with fellow subsidiaries and associates[70](index=70&type=chunk) - Sales and purchases of goods and services were conducted on normal commercial terms applicable to all customers and suppliers, and rental income was determined by reference to current market rental rates[70](index=70&type=chunk) | Indicator | H1 2024 (thousand HKD) | H1 2023 (thousand HKD) | | :--- | :--- | :--- | | Key Management Personnel Remuneration | 4,098 | 3,564 | [28 Events After the Reporting Period](index=37&type=section&id=28%20%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) As of the date of this interim report, the directors have not noted any significant events after the reporting period concerning the Group's business or financial performance - As of the date of this interim report, the directors have not noted any significant events after the reporting period concerning the Group's business or financial performance[71](index=71&type=chunk) [Management Discussion and Analysis](index=28&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) This section provides a detailed discussion and analysis of the Group's H1 2024 financial performance, core business operations, strategic initiatives (such as the "Center of Excellence" and Greater Bay Area layout), associate business progress, and future outlook; it highlights that despite stable revenue and gross profit, profit for the period significantly decreased due to non-recurring items, and the Group is committed to addressing market challenges through technological innovation and market expansion [Financial Performance](index=28&type=section&id=%E8%B2%A1%E5%8B%99%E6%A5%AD%E7%B8%BE) For the six months ended June 30, 2024, the Group's total revenue and gross profit were comparable to the prior period, but profit for the period significantly decreased by **58.2%** due to reduced net gain on deemed disposal of partial interests in an associate; nevertheless, the Group maintained a robust financial position with a healthy working capital ratio | Indicator | H1 2024 (million HKD) | H1 2023 (million HKD) | Change | | :--- | :--- | :--- | :--- | | Total Revenue | 1,225.5 | 1,242.4 | Comparable | | Gross Profit | 123.2 | Comparable | Comparable | | Profit for the Period | 38.1 | 91.1 | -58.2% | | Adjusted EBITDA | 58.2 | 65.2 | -10.7% | - Product sales decreased by **7.9%** to **611.3 million HKD**, while service revenue increased by **6.2%** to **614.1 million HKD**, with product sales and service revenue accounting for **49.9%** and **50.1%** of total revenue, respectively[72](index=72&type=chunk) - New contracts awarded amounted to approximately **1,295.0 million HKD**, with an order backlog of approximately **1,569.3 million HKD**; bank balances and cash and time deposits totaled approximately **718.7 million HKD**, and the working capital ratio was **1.83:1**[72](index=72&type=chunk) [Review of Principal Businesses](index=40&type=section&id=%E4%B8%BB%E7%87%9F%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) The Group's principal businesses made progress across all three DevSecOps areas, with new contracts awarded and revenue comparable to the prior period, and adjusted profit achieving growth; each business segment enhanced its service capabilities and market competitiveness through technological innovation and market expansion - New contracts awarded and revenue were **1,295.0 million HKD** and **1,225.5 million HKD** respectively, comparable to the prior period[74](index=74&type=chunk) - Adjusted profit recorded **46.0 million HKD**, an increase of **2.2%**[74](index=74&type=chunk) [Innovative Industry Solutions Business (Dev)](index=40&type=section&id=%E5%89%B5%E6%96%B0%E8%A1%8C%E6%A5%AD%E8%A7%A3%E6%B1%BA%E6%96%B9%E6%A1%88%E6%A5%AD%E5%8B%99%20%28Dev%29) The innovative industry solutions business saw increased service orders and recorded **249.8 million HKD** in revenue, primarily driven by application development and IT outsourcing services, while actively leveraging blockchain technology and overseas delivery centers to support cross-border payment services - Service orders increased compared to the prior year, mainly due to an increase in application development and IT outsourcing service orders[75](index=75&type=chunk) - Service revenue for the period reached **249.8 million HKD**[75](index=75&type=chunk) - Actively promotes Xinchuang brands and technology applications, participates in the "iAM Smart+" platform construction, and innovatively uses blockchain technology to enhance technical support and applications for cross-institutional platforms and apps[75](index=75&type=chunk) [Intelligent Cybersecurity Services Business (Sec)](index=40&type=section&id=%E6%99%BA%E8%83%BD%E7%B6%B2%E7%B5%A1%E5%AE%89%E5%85%A8%E6%9C%8D%E5%8B%99%E6%A5%AD%E5%8B%99%20%28Sec%29) The intelligent cybersecurity services business experienced growth in new service orders, with revenue reaching **105.4 million HKD**, primarily driven by sustained demand for cybersecurity services, Security Operations Center (SOC), and security management services, while utilizing AI to enhance SOC platform efficiency - New service orders showed growth compared to the prior period, with service revenue for the period reaching **105.4 million HKD**[76](index=76&type=chunk) - The main business growth stemmed from sustained demand for cybersecurity services, Security Operations Center (SOC), and security management services[76](index=76&type=chunk) - Artificial intelligence (AI) is being leveraged to enhance the SOC platform for faster response and resolution of evolving cyber threats and security incidents[76](index=76&type=chunk) [IT Integrated Management Services Business (Ops)](index=41&type=section&id=%E8%B3%87%E8%A讯%E7%A7%91%E6%8A%80%E9%9B%86%E6%88%90%E7%AE%A1%E7%90%86%E6%9C%8D%E5%8B%99%E6%A5%AD%E5%8B%99%20%28Ops%29) The IT integrated management services business saw an increase in new service orders, with service revenue reaching **244.6 million HKD**, driven by demand for ITSM, DevSecOps, and managed services, successfully providing large-scale critical system migration services for an entertainment organization and undertaking a private cloud expansion project - New service orders increased compared to the prior period, with service revenue reaching **244.6 million HKD**, driven by demand for ITSM, DevSecOps, and managed services[77](index=77&type=chunk) - Successfully provided large-scale business-critical system migration services for an entertainment organization, demonstrating service integration capabilities[77](index=77&type=chunk) - A private cloud expansion project is underway to provide Infrastructure-as-a-Service[77](index=77&type=chunk) [Building a "Center of Excellence" to Promote Xinchuang Products](index=41&type=section&id=%E6%A7%8B%E5%BB%BA%E3%80%8C%E5%8D%93%E8%B6%8A%E4%B8%AD%E5%BF%83%E3%80%8D%E3%80%80%E6%8E%A8%E5%BB%A3%E4%BF%A1%E5%89%B5%E7%94%A2%E5%93%81) The Group established a "Center of Excellence" to foster the integration and innovative application of domestic and international IT products in solutions, serving clients in Hong Kong and the Greater Bay Area, supported by over **70 international and 30 Xinchuang IT vendors**, making it a leading industry player - The "Center of Excellence" aims to promote the integration and innovative application of domestic and international IT products in IT solutions to better serve clients in Hong Kong and the Greater Bay Area[78](index=78&type=chunk) - The center is supported by over **70 international IT vendors** and over **30 Xinchuang IT vendors**, making its scale leading in the industry[78](index=78&type=chunk) [Industry-Oriented, Greater Bay Area Layout](index=41&type=section&id=%E8%A1%8C%E6%A5%AD%E5%B0%8E%E5%90%91%E3%80%80%E4%BD%88%E5%B1%80%E7%81%A3%E5%8D%80) The Group actively participates in industry events to promote digital Greater Bay Area financial development opportunities and Chinese Xinchuang technology, enhancing brand awareness and introducing clients to the latest industry technology trends, including Large Language Models (LLM) - Actively participates in industry events to expand brand awareness and bring the latest industry technology trends to clients[79](index=79&type=chunk) - Promotes digital Greater Bay Area financial orientation to the financial industry and introduces government departments to innovative applications and integrated practices of Chinese technology, including Large Language Models (LLM)[79](index=79&type=chunk) [Associate Businesses](index=42&type=section&id=%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E6%A5%AD%E5%8B%99) The Group's European and American associate GDH made significant strides in AI technology, offering customized solutions to Fortune 500 companies, while Asia Pacific associate i-Sprint achieved revenue and EBITDA growth through optimized management and technical certifications, strengthening its industry position - European and American associate Grid Dynamics Holdings, Inc. (GDH) significantly enhanced its artificial intelligence technology, providing approximately **30 tailored solutions and services** to Fortune 500 companies across various industries[80](index=80&type=chunk) - Key Asia Pacific associate i-Sprint Holdings Limited drove business growth through optimized management, deepening engagement with key clients, and replicating successful cases, leading to revenue and EBITDA of **68.7 million HKD** and **15.8 million HKD**, respectively[80](index=80&type=chunk) - i-Sprint's Universal Authentication System (UAS) obtained FIDO2 certification and received multiple awards in cybersecurity and other fields[80](index=80&type=chunk) [Prospects and Outlook](index=42&type=section&id=%E5%89%8D%E6%99%AF%E8%88%87%E5%B1%95%E6%9C%9B) Facing current market challenges, the Group will accelerate the construction of a Chinese-funded brand ecosystem, establish an offshore development center on the west bank of the Pearl River Estuary, and leverage AI to enhance management services; it will continue to enrich DevSecOps integration capabilities, focus on advantageous industries like government and banking, and strive to become a leading converged technology service partner in the region - Accelerate the construction of a Chinese-funded brand ecosystem, forging partnerships with Chinese vendors to jointly open up markets and ensuring compatibility and performance of Xinchuang solutions through the "Center of Excellence"[81](index=81&type=chunk) - Prepare to establish an offshore development center on the west bank of the Pearl River Estuary to undertake software development tasks for Hong Kong, Macau, and overseas, and build a remote omnichannel 24/7 management service support system[82](index=82&type=chunk) - Continue to enrich DevSecOps integration capabilities and expand the talent pool, including introducing professionals from mainland China, while persistently advancing management services using the DevSecOps management service maturity model[82](index=82&type=chunk) - Focus on developing advantageous industries such as government and banking sectors, enhancing pre-sales and after-sales service capabilities for specific industries, and striving to become a leading converged technology service partner in the region[82](index=82&type=chunk) [Financial Resources and Liquidity](index=43&type=section&id=%E8%B2%A1%E6%94%BF%E8%B3%87%E6%BA%90%E5%8F%8A%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91) As of June 30, 2024, the Group's total assets were **3,227.4 million HKD**, with a working capital ratio of approximately **1.83:1**, indicating a robust financial position; all bank borrowings were fully repaid, resulting in a capital gearing ratio of **0.0%**, demonstrating good liquidity and low leverage - As of June 30, 2024, the Group's total assets were **3,227.4 million HKD**, with a working capital ratio of approximately **1.83:1**[82](index=82&type=chunk) - All bank borrowings were fully repaid during the six months ended June 30, 2024, resulting in a capital gearing ratio of **0.0%** (December 31, 2023: **0.5%**)[83](index=83&type=chunk) - The Group obtained total comprehensive bank facilities of approximately **215.3 million HKD**, with performance guarantees of approximately **106.0 million HKD**[83](index=83&type=chunk) [Material Acquisitions and Disposals](index=43&type=section&id=%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE) For the six months ended June 30, 2024, neither the Company nor any of its subsidiaries had any other material acquisitions or disposals - For the six months ended June 30, 2024, neither the Company nor any of its subsidiaries had any other material acquisitions or disposals[84](index=84&type=chunk) [Treasury Policy](index=44&type=section&id=%E5%BA%AB%E5%8B%99%E6%94%BF%E7%AD%96) The Group's operations are primarily funded by internal resources and bank credit facilities, including trust receipt loans, unsecured import loans, overdrafts, and term loans, with interest rates generally referenced to interbank offer rates; bank deposits are mainly denominated in HKD and USD - The Group's operations are generally funded by internal resources and bank credit facilities[85](index=85&type=chunk) - Bank facilities include trust receipt loans, unsecured import loans, overdrafts, and term loans, with interest rates mostly referenced to relevant country's interbank offer rates[85](index=85&type=chunk) - Bank deposits are primarily denominated in HKD and USD[85](index=85&type=chunk) [Foreign Exchange Risk](index=44&type=section&id=%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA) The Group's revenue and costs are primarily denominated in HKD and USD, and given the Hong Kong SAR Government's linked exchange rate policy, the Group's exposure to USD foreign exchange risk is minimal; for the six months ended June 30, 2024, there was no significant exchange rate fluctuation risk, thus no hedging financial instruments were employed - The Group's revenue earned and costs incurred are primarily denominated in HKD and USD[86](index=86&type=chunk) - If the Hong Kong Special Administrative Region Government maintains the linked exchange rate policy between HKD and USD, the Group's exposure to USD foreign exchange risk will remain minimal[86](index=86&type=chunk) - For the six months ended June 30, 2024, there was no significant risk of exchange rate fluctuations, thus no related hedging financial instruments were applied[86](index=86&type=chunk) [Contingent Liabilities](index=44&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2024, performance guarantees provided by banks on behalf of the Group to customers as contract collateral amounted to approximately **106.0 million HKD**, a decrease from December 31, 2023 | Indicator | June 30, 2024 (million HKD) | December 31, 2023 (million HKD) | Change | | :--- | :--- | :--- | :--- | | Performance Guarantees | 106.0 | 126.8 | -16.4% | [Capital Commitments](index=44&type=section&id=%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94) As of June 30, 2024, the Group's contracted capital commitments for property, plant and equipment amounted to approximately **0.7 million HKD**, an increase from December 31, 2023 | Indicator | June 30, 2024 (million HKD) | December 31, 2023 (million HKD) | Change | | :--- | :--- | :--- | :--- | | Contracted Capital Commitments | 0.7 | 0.4 | +75.0% | [Employees and Remuneration Policy](index=44&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June 30, 2024, the Group (excluding associates) employed **1,458 staff globally**, a slight decrease from the prior period; remuneration is determined based on employee performance, experience, and market conditions, with benefits including bonuses, Mandatory Provident Fund, insurance, medical insurance, and share option schemes | Indicator | June 30, 2024 | June 30, 2023 | Change | | :--- | :--- | :--- | :--- | | Number of Employees | 1,458 | 1,499 | -41 | - Employees are located in Hong Kong, mainland China, Taiwan, Macau, and Thailand[89](index=89&type=chunk) - Remuneration is determined based on employee performance, work experience, and prevailing market conditions, with benefits including Mandatory Provident Fund, insurance, medical insurance, and share option schemes[89](index=89&type=chunk) [Other Information](index=45&type=section&id=%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) This section provides other important information for the six months ended June 30, 2024, including dividend policy, disclosure of directors' and major shareholders' interests, share schemes, dealings in listed securities, Audit Committee review, updates on directors' information, and compliance with the Corporate Governance Code [Dividends](index=45&type=section&id=%E8%82%A1%E6%81%AF) The directors do not recommend the payment of an interim dividend for the six months ended June 30, 2024 - The directors do not recommend the payment of an interim dividend for the six months ended June 30, 2024[90](index=90&type=chunk) [Disclosure of Interests](index=45&type=section&id=%E6%AC%8A%E7%9B%8A%E6%8A%AB%E9%9C%B2) This section discloses the interests of directors and the Company's chief executive, as well as major shareholders, in the shares and underlying shares of the Company and its associated corporations as of June 30, 2024, including personal, family, and corporate interests - Discloses the interests or short positions of directors and the Company's chief executive in the shares, underlying shares, and debentures of the Company or any of its associated corporations[91](index=91&type=chunk) - Discloses the interests or short positions of major shareholders in the shares or underlying shares of the Company[94](index=94&type=chunk) - Disclosures are made in accordance with Part XV of the Securities and Futures Ordinance and Appendix C3 of the Listing Rules of the Stock Exchange[91](index=91&type=chunk)[94](index=94&type=chunk) [Directors' Interests in Shares and Underlying Shares](index=45&type=section&id=%E8%91%A3%E4%BA%8B%E4%B9%8B%E8%82%A1%E4%BB%BD%E5%8F%8A%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E4%B9%8B%E6%AC%8A%E7%9B%8A) As of June 30, 2024, Directors Wang Weihang and Zhang Bingxia held shares in Teamsun Technology, while Wang Weihang and Wang Yueou held shares in GDH; Wang Yueou also held share options in the Company and GDH | Company Name | Director | Personal Interests (shares) | Approximate Percentage of Equity | | :--- | :--- | :--- | :--- | | Teamsun Technology | Wang Weihang | 43,717,039 | 3.99% | | Teamsun Technology | Zhang Bingxia | 250,000 | 0.02% | | GDH | Wang Weihang | 30,954 | 0.04% | | GDH | Wang Yueou | 30,954 | 0.04% | | Company Name | Director | Personal Interests (shares) | Approximate Percentage of Equity | | :--- | :--- | :--- | :--- | | The Company | Wang Yueou | 4,620,000 | 0.55% | | GDH | Wang Yueou | 42,397 | 0.06% | - The Company's share options are from the 2017 Share Option Scheme, and GDH's share options are from GDH's Equity Incentive Plan effective March 4, 2020[92](index=92&type=chunk) [Major Shareholders' Interests in Shares and Underlying Shares](index=47&type=section&id=%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1%E4%B9%8B%E8%82%A1%E4%BB%BD%E5%8F%8A%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E4%B9%8B%E6%AC%8A%E7%9B%8A) As of June 30, 2024, Teamsun Technology (Hong Kong) Limited, as beneficial owner, held **67.66%** of the Company's shares, while its ultimate controlling company, Teamsun Technology, held the same number of shares through controlled corporate interests | Shareholder Name | Capacity | Nature | Number of Shares | Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | :--- | | Teamsun Technology (Hong Kong) Limited | Beneficial Owner | Long Position | 564,110,657 | 67.66% | | Teamsun Technology | Interests in Controlled Corporations | Long Position | 564,110,657 | 67.66% | - Teamsun Technology has an interest in the entire issued share capital of Teamsun Technology (Hong Kong) Limited, and is therefore deemed to have an interest in the Company's shares held by Teamsun Technology (Hong Kong) Limited[94](index=94&type=chunk) [Share Schemes](index=48&type=section&id=%E8%82%A1%E4%BB%BD%E8%A8%88%E5%8A%83) This section details the Company's Share Option Scheme adopted on March 13, 2017, designed to incentivize eligible participants; the scheme outlines the total number of shares that may be granted, individual limits, acceptance conditions, exercise price determination, and changes in share options during the period - The Company adopted a share option scheme on March 13, 2017, to grant share options to eligible participants as an incentive or reward[96](index=96&type=chunk) - The total number of shares that may be granted shall not exceed **10%** of the total issued shares as of March 13, 2017, and all outstanding share options shall not exceed **30%** of the Company's total issued shares from time to time[96](index=96&type=chunk) - The exercise price is determined by the Board, but shall not be less than the higher of the closing price on the offer date, the average closing price for the five business days immediately preceding the grant date, and the nominal value of one Company share[97](index=97&type=chunk) [A. 2017 Share Option Scheme](index=48&type=section&id=A.%20%E4%BA%8C%E9%9B%B6%E4%B8%80%E4%B8%83%E5%B9%B4%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%A8%88%E5%8A%83) The 2017 Share Option Scheme aims to incentivize employees, stipulating the total number of shares that may be granted, individual limits, exercise price determination, and vesting and exercise periods; as of June 30, 2024, a total of **22,437,125 share options** were granted but unexercised under the scheme, with some options lapsing during the period - The 2017 Share Option Scheme will expire on March 12, 2027, with a total of **52,618,335 Company shares** available for issuance, representing **6.31%** of the total issued shares as of the report date[96](index=96&type=chunk) | Indicator | January 1, 2024 (shares) | Granted During Period (shares) | Exercised During Period (shares) | Lapsed During Period (shares)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚賴 該等內容而引致的任何損失承擔任何責任。 AUTOMATED SYSTEMS HOLDINGS LIMITED 自動系統集團有限公司＊ （於百慕達註冊成立之有限公司） （股份代號：771） 截至二零二四年六月三十日止六個月 中期業績公告 集團業績概覽 （百萬港元） HK$ 1,295.0 (CY23 1H : HK$ 1, 313.9) HK$ 1,225.5 (CY23 1H : HK$ 1,242.4) 1.4% HK$ 38.1 (CY23 1H : HK$ 91.1) 58.2% 6.1% 3.4% 1.4% 10.7% 2.2% 27.8% 1.4% 集團綜合財務業績 核心業務 聯營公司權益 非經營項目 新簽訂單 訂單 系統集成及其他業務 收入 經調整溢利* 經調整經營 現金流量* 經調整EBITDA* 訂單 融合科技服務 應佔聯營公司 業績 經調整集團及其他項目 相關成本* 收入 期內溢利 HK$ 626.1 (CY23 1H : ...

Financial Performance - The Group's core business revenue reached HK$ 2,360.4 million, representing a 6.5% increase compared to last year (HK$ 2,215.5 million) [26] - The Group's gross profit was HK$ 246.0 million, with an adjusted EBITDA of HK$ 111.9 million for the core business [26] - The profit for the year was HK$ 131.3 million, an increase of 29.3% from HK$ 101.6 million last year, primarily due to gains from interest in an associate for non-recurring items [34] - Revenue increased by 6.5% to HK$2,360.4 million compared to HK$2,215.5 million in 2022 [35] - Adjusted EBITDA decreased by 12.6% to HK$111.9 million from HK$128.1 million in 2022 [35] - Adjusted Net Profit fell by 4.5% to HK$79.9 million compared to HK$83.7 million in 2022 [35] - Orders for Unified Technology Services rose by 7.6% to HK$1,244.4 million from HK$1,156.5 million in 2022 [35] - Non-GAAP Net Income increased by 31.5% to HK$195.9 million [52] - For the year ended December 31, 2023, total revenue was HK$2,360.4 million, a 6.5% increase from the previous year, with product sales up 8.2% to HK$1,179.7 million and service revenue up 5.0% to HK$1,180.7 million [117] - Gross profit for the year was HK$246.0 million, a decrease of HK$11.6 million or 4.5% compared to last year, primarily due to increased staff costs in project delivery [117] - New orders secured amounted to approximately HK$2,496.4 million, with an order book balance of approximately HK$1,508.6 million as of December 31, 2023 [117] - Adjusted EBITDA for the year was HK$111.9 million, a decrease of 12.6% compared to the previous year, reflecting the core business operational performance [129] - Commercial and public sector sales contributed 42.4% and 57.6% to total revenue respectively, compared to 37.8% and 62.2% last year [117] - The Group's bank balances and cash totaled approximately HK$539.6 million, with a working capital ratio of 1.92:1, indicating a healthy financial position [117] - The Group maintained outstanding borrowings of HK$11.3 million as of December 31, 2023, reflecting prudent financial management [117] Strategic Developments - The Group established its headquarters in the Greater Bay Area in August 2023 and expanded its technical team to enhance offshore delivery capabilities [3] - A new Managed Services Portal was launched to enhance customer experience by connecting with ASL services [5] - The Group's new brand identity and business strategy were announced, emphasizing a commitment to innovation and excellence [13] - The Group is focused on integrating resources across different regions to support clients' business strategies and development [20] - The introduction of a new CI system and business strategy aims to enhance the Group's service capabilities [9] - The Group's DevSecOps model is applied to deliver ongoing digital value and achieve unified goals across various industry sectors [19] - The Group aims to become a leading Unified Technology Services partner in the region, focusing on industry-driven, high-value professional IT services [63] - The Group successfully penetrated the Government sector market, participating in the implementation of the "iAM Smart" platform [42] - The Group opened a third Security Operation Center (SOC) in the Greater Bay Area, continuing to support the Hong Kong SAR government's "Digital Bay Area" initiative [88] - The Group's consulting and professional services for the Security Operation Center (SOC2) in Macau gained popularity among customers [100] - The Group's platform-driven services gained wider recognition, particularly with a significant increase in orders for the Unified Operation Center (UOC), a hybrid cloud platform [147] - The Group integrated delivery resources and technical capabilities to better serve clients in various sectors, aiming for strategic breakthroughs [144] Corporate Governance and Compliance - The Group emphasizes compliance with various laws and regulations, ensuring no breaches were reported during the year [84] - The Group's anti-corruption framework was strengthened through seminars and collaboration with the Hong Kong Independent Commission Against Corruption [90] - The Group's compliance measures include a Code of Conduct and various policies to prevent corruption and ensure ethical operations [110] - The Group has implemented an IT Security Policy to manage risks associated with information security in IT services [99] - The Group has developed and implemented various environmental, social, and governance (ESG) policies to optimize internal management systems and ensure stakeholder protection [101] - The Group is committed to continuous evaluation of its ESG performance and plans to set specific ESG goals in the near future [101] - The Group aims to strengthen stakeholder engagement and expand communication channels to better understand sustainability risks [106] Human Resources and Talent Development - The Group expanded its client base by 33 companies and broadened delivery locations in Poland, India, and Mexico [52] - The Group employed 1,495 permanent and contract staff as of December 31, 2023, compared to 1,474 in 2022 [179] - The Group celebrated its 50th anniversary with a series of internal and external events, marking significant development across various business areas [88] - The Group's subsidiaries, Automated Systems (H.K.) Limited and ELM Computer Technologies Limited, have received recognition for quality achievements in recent years [78] - The management team includes experienced professionals with backgrounds in finance, investment, and corporate governance, ensuring strategic decision-making [198] Future Outlook - The Group plans to focus on four areas for future development, including the application of innovative technologies and sector-focused IT services [156] - Future outlook includes a commitment to innovation and market expansion, aligning with industry trends [196] - The company is actively pursuing new strategies to enhance operational efficiency and financial performance [200] - The Group aims to create value across five capitals essential to its business, focusing on sustainability and stakeholder benefits [94]