Core Points - The chairman of the company, Li Wei, has been placed under detention by the Tianjin Binhai New Area Supervisory Committee, temporarily unable to fulfill his duties [1] - To ensure normal operations and decision-making, the board of directors appointed Zhang Min, the deputy general manager, to act as chairman and legal representative until Li Wei resumes his duties or a new appointment is made [1] - The company maintains a robust governance structure and internal control mechanisms, with daily operations managed by the executive team, and all other board members and senior management are performing their duties normally [1] Company Operations - The company held a board meeting on September 29, 2025, to address the situation and ensure continuity in leadership [1] - As of the announcement date, the company has not received further updates regarding the progress or conclusion of the detention matter [1] - The company will continue to monitor the situation and will fulfill its information disclosure obligations as required by relevant laws and regulations [1]

[Company Information](index=3&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) Sheng Yuan Holdings Limited's essential corporate details, including board, committees, key contacts, and financial service providers [Board of Directors](index=3&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83) Lists the executive, non-executive, and independent non-executive directors of Sheng Yuan Holdings Limited - Executive Directors include **Mr. Zhou Quan (Chairman)** and **Mr. Zhao Yun**[5](index=5&type=chunk) - Non-Executive Director is **Mr. Huang Shuanggang**[5](index=5&type=chunk) - Independent Non-Executive Directors are **Mr. Zhang Jinfan**, **Ms. Huang Qin**, and **Mr. Guo Yaoli**[5](index=5&type=chunk) [Audit Committee](index=3&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Audit Committee comprises Ms. Huang Qin (Chairperson), Mr. Zhang Jinfan, and Mr. Huang Shuanggang - The Audit Committee Chairperson is **Ms. Huang Qin**[5](index=5&type=chunk) [Remuneration Committee](index=3&type=section&id=%E8%96%AA%E9%85%AC%E5%A7%94%E5%93%A1%E6%9C%83) The Remuneration Committee consists of Mr. Zhang Jinfan (Chairman), Ms. Huang Qin, and Mr. Guo Yaoli - The Remuneration Committee Chairman is **Mr. Zhang Jinfan**[5](index=5&type=chunk) [Nomination Committee](index=3&type=section&id=%E6%8F%90%E5%90%8D%E5%A7%94%E5%93%A1%E6%9C%83) The Nomination Committee is composed of Mr. Guo Yaoli (Chairman), Mr. Zhang Jinfan, and Ms. Huang Qin - The Nomination Committee Chairman is **Mr. Guo Yaoli**[5](index=5&type=chunk) [Company Secretary](index=3&type=section&id=%E5%85%AC%E5%8F%B8%E7%A7%98%E6%9B%B8) The Company Secretary is Mr. Zhao Mingjing - The Company Secretary is **Mr. Zhao Mingjing (FCG HKFCG (PE))**[5](index=5&type=chunk) [Stock Code](index=3&type=section&id=%E8%82%A1%E4%BB%BD%E4%BB%A3%E8%99%9F) The company's stock code is 851 - Stock Code: **851**[5](index=5&type=chunk) [Website](index=3&type=section&id=%E7%B6%B2%E5%9D%80) The company's official website is www.shengyuanhk.com - Website: **www.shengyuanhk.com**[6](index=6&type=chunk) [Share Registrar](index=3&type=section&id=%E8%82%A1%E4%BB%BD%E9%81%8E%E6%88%B6%E7%99%BB%E8%A8%98%E8%99%95) The Share Registrar is Tricor Investor Services Limited - Share Registrar: **Tricor Investor Services Limited**[7](index=7&type=chunk) [Registered Office](index=3&type=section&id=%E8%A8%BB%E5%86%8A%E8%BE%A6%E4%BA%8B%E8%99%95) The company's registered office is located in Bermuda - Registered Office: **Clarendon House, 2 Church Street, Hamilton HM 11, Bermuda**[7](index=7&type=chunk) [Principal Hong Kong Office](index=3&type=section&id=%E9%A6%99%E6%B8%AF%E4%B8%BB%E8%A6%81%E8%BE%A6%E4%BA%8B%E8%99%95) The company's principal Hong Kong office is located on Queen's Road Central - Principal Hong Kong Office: **Rooms 3208–9, 32nd Floor, Cosco Tower, Grand Millennium Plaza, 183 Queen's Road Central, Hong Kong**[7](index=7&type=chunk) [Auditor](index=3&type=section&id=%E6%A0%B8%E6%95%B8%E5%B8%AB) The company's auditor is Beijing Xinghua Dingfeng Certified Public Accountants Co., Ltd - Auditor: **Beijing Xinghua Dingfeng Certified Public Accountants Co., Ltd**[7](index=7&type=chunk) [Principal Bankers](index=3&type=section&id=%E4%B8%BB%E8%A6%81%E5%BE%80%E4%BE%86%E9%8A%80%E8%A1%8C) The company's principal bankers are The Hongkong and Shanghai Banking Corporation Limited and Bank of China (Hong Kong) Limited - Principal Bankers: **The Hongkong and Shanghai Banking Corporation Limited, Bank of China (Hong Kong) Limited**[7](index=7&type=chunk) [Interim Condensed Consolidated Financial Information Review Report](index=4&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E5%AF%A9%E9%96%B1%E5%A0%B1%E5%91%8A) The auditor reviewed Sheng Yuan Holdings Limited's interim condensed consolidated financial information for the six months ended June 30, 2025, finding no material discrepancies under HKSRS 2410 [Introduction](index=4&type=section&id=%E7%B7%92%E8%A8%80) The auditor reviewed Sheng Yuan Holdings Limited's interim condensed consolidated financial information for the six months ended June 30, 2025, confirming directors' responsibility for its preparation - The auditor has reviewed the interim condensed consolidated financial information for the six months ended **June 30, 2025**[9](index=9&type=chunk) - The company's directors are responsible for preparing and presenting the interim condensed consolidated financial information in accordance with **HKAS 34 "Interim Financial Reporting"** issued by the HKICPA[9](index=9&type=chunk) [Scope of Review](index=5&type=section&id=%E5%AF%A9%E9%96%B1%E7%AF%84%E5%9C%8D) The review, conducted under HKSRS 2410, involved inquiries and analytical procedures, with a scope narrower than an audit, thus no audit opinion is expressed - The review was conducted in accordance with **Hong Kong Standard on Review Engagements 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity"** issued by the HKICPA[11](index=11&type=chunk) - The scope of the review is substantially less than an audit conducted in accordance with Hong Kong Standards on Auditing, and therefore no audit opinion is expressed[11](index=11&type=chunk) [Conclusion](index=5&type=section&id=%E7%B8%BD%E7%B5%90) The auditor found no matters suggesting the Group's interim condensed consolidated financial information was not prepared in all material respects according to HKAS 34 - The auditor found no matters that cause them to believe the Group's interim condensed consolidated financial information is not prepared, in all material respects, in accordance with **Hong Kong Accounting Standard 34 "Interim Financial Reporting"**[12](index=12&type=chunk) - The report was issued by **Beijing Xinghua Dingfeng Certified Public Accountants Co., Ltd** on **August 21, 2025**[13](index=13&type=chunk) [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=6&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) Sheng Yuan Holdings Limited's interim condensed consolidated statement of profit or loss and other comprehensive income for the six months ended June 30, 2025, shows significant year-on-year decreases in revenue, profit for the period, and earnings per share [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income for the Six Months Ended June 30, 2025](index=6&type=section&id=%E6%88%AA%E8%87%B32025%E5%B9%B46%E6%9C%8830%E6%97%A5%E6%AD%A2%E5%85%AD%E4%B8%AA%E6%9C%88%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) | Indicator | 2025 (HKD '000) | 2024 (HKD '000) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 12,098 | 14,410 | -16.04% | | Other gains and losses | 1,172 | 17,476 | -93.29% | | Other income | 1,569 | 1,660 | -5.54% | | Staff costs | (3,852) | (4,284) | 10.08% | | Depreciation | (792) | (843) | 6.05% | | Finance costs | (68) | (114) | 40.35% | | Net (provision for) / reversal of impairment losses on financial assets | (27) | 5,315 | -100.51% | | Other expenses | (3,116) | (3,236) | 3.71% | | Profit before income tax | 6,984 | 30,384 | -77.04% | | Income tax expense | (1,652) | (581) | -184.34% | | Profit for the period | 5,332 | 29,803 | -82.11% | | Total comprehensive income for the period | 5,333 | 29,806 | -82.11% | | Basic earnings per share (HK cents) | 0.60 | 3.38 | -82.25% | | Diluted earnings per share (HK cents) | 0.60 | 3.38 | -82.25% | [Interim Condensed Consolidated Statement of Financial Position](index=7&type=section&id=%E4%B8%AD%E6%9C%9F%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, 2025, Sheng Yuan Holdings Limited's net assets and total equity increased, while non-current assets and current liabilities decreased, and current assets slightly reduced [Interim Condensed Consolidated Statement of Financial Position as of June 30, 2025](index=7&type=section&id=%E6%88%AA%E8%87%B32025%E5%B9%B46%E6%9C%8830%E6%97%A5%E4%B8%AD%E6%9C%9F%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) | Indicator | 2025 June 30 (HKD '000) | 2024 Dec 31 (HKD '000) | Change (%) | | :--- | :--- | :--- | :--- | | **Non-current assets** | | | | | Property, plant and equipment | 177 | 228 | -22.4% | | Right-of-use assets | 1,730 | 2,471 | -30.0% | | Long-term deposits | 510 | 510 | 0.0% | | **Current assets** | | | | | Trade and other receivables, deposits and prepayments | 28,773 | 5,995 | 379.9% | | Investments held for trading | 15,155 | 14,000 | 8.25% | | Trust bank balances held on behalf of clients | 12,709 | 22,336 | -43.0% | | Cash and cash equivalents | 25,776 | 44,043 | -41.5% | | **Current liabilities** | | | | | Trade and other payables and accrued expenses | 13,793 | 24,827 | -44.4% | | Current tax liabilities | 3,904 | 2,252 | 73.3% | | Lease liabilities (current) | 1,682 | 1,633 | 3.0% | | **Non-current liabilities** | | | | | Lease liabilities (non-current) | 145 | 998 | -85.5% | | **Equity** | | | | | Share capital | 88,197 | 88,197 | 0.0% | | Reserves | 33,722 | 28,389 | 18.8% | | **Total** | | | | | Total assets less current liabilities | 122,064 | 117,584 | 3.8% | | Net assets | 121,919 | 116,586 | 4.6% | | Total equity | 121,919 | 116,586 | 4.6% | [Interim Condensed Consolidated Statement of Changes in Equity](index=9&type=section&id=%E4%B8%AD%E6%9C%9F%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, 2025, Sheng Yuan Holdings Limited's total equity increased from HKD 116,586 thousand on January 1, 2025, to HKD 121,919 thousand, primarily due to a profit of HKD 5,332 thousand for the period [Interim Condensed Consolidated Statement of Changes in Equity for the Six Months Ended June 30, 2025](index=9&type=section&id=%E6%88%AA%E8%87%B32025%E5%B9%B46%E6%9C%8830%E6%97%A5%E6%AD%A2%E5%85%AD%E4%B8%AA%E6%9C%88%E4%B8%AD%E6%9C%9F%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) | Indicator | 2025 June 30 (HKD '000) | 2025 Jan 1 (HKD '000) | Change (HKD '000) | | :--- | :--- | :--- | :--- | | Share capital | 88,197 | 88,197 | 0 | | Share premium | 434,797 | 434,797 | 0 | | Capital contribution by shareholders | 7,834 | 7,834 | 0 | | Redemption reserve | 477 | 477 | 0 | | Currency translation reserve | (1,353) | (1,354) | 1 | | Contributed surplus | 152,788 | 152,788 | 0 | | Accumulated losses | (560,821) | (566,153) | 5,332 | | **Total equity** | **121,919** | **116,586** | **5,333** | - **Profit for the period** of **HKD 5,332 thousand** was the primary reason for the increase in equity[19](index=19&type=chunk) [Interim Condensed Consolidated Statement of Cash Flows](index=10&type=section&id=%E4%B8%AD%E6%9C%9F%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, 2025, Sheng Yuan Holdings Limited's net cash outflow from operating activities was HKD 17,395 thousand, a significant decrease from the HKD 20,462 thousand inflow in the prior period, leading to a substantial reduction in cash and cash equivalents at period-end [Interim Condensed Consolidated Statement of Cash Flows for the Six Months Ended June 30, 2025](index=10&type=section&id=%E6%88%AA%E8%87%B32025%E5%B9%B46%E6%9C%8830%E6%97%A5%E6%AD%A2%E5%85%AD%E4%B8%AA%E6%9C%88%E4%B8%AD%E6%9C%9F%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) | Indicator | 2025 (HKD '000) | 2024 (HKD '000) | Change (HKD '000) | | :--- | :--- | :--- | :--- | | Net cash (used in) / generated from operating activities | (17,395) | 20,462 | -37,857 | | Net cash generated from investing activities | – | 21,825 | -21,825 | | Net cash used in financing activities | (873) | (873) | 0 | | Net (decrease) / increase in cash and cash equivalents | (18,268) | 41,414 | -59,682 | | Cash and cash equivalents at beginning of period | 44,043 | 47,166 | -3,123 | | Effect of exchange rate changes on cash held | 1 | 3 | -2 | | Cash and cash equivalents at end of period | 25,776 | 88,583 | -62,807 | - Net cash flow from operating activities shifted from a net inflow in the prior period to a **net outflow**, primarily due to changes in working capital, especially an increase in trade and other receivables[20](index=20&type=chunk) - Investing activities cash flow was **zero** in the first half of 2025, compared to a **net inflow of HKD 21,825 thousand** in the prior period, mainly due to proceeds received from debt instrument arrangements last year[22](index=22&type=chunk) [Notes to the Interim Condensed Consolidated Financial Information](index=12&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E9%99%84%E8%A8%BB) This section details the basis of preparation, accounting policies, segment information, revenue and expense components, balance sheet items, and fair value measurements for Sheng Yuan Holdings Limited's interim condensed consolidated financial information for the six months ended June 30, 2025 [1. General Information](index=12&type=section&id=1.%20%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) Sheng Yuan Holdings Limited is a Bermuda-registered investment holding company listed on the HKEX, primarily engaged in securities brokerage, financial services, asset management, proprietary trading, and trading businesses through its subsidiaries - The Company is an investment holding company, and its subsidiaries are principally engaged in **securities brokerage and financial services, asset management services, proprietary trading, and trading businesses**[23](index=23&type=chunk) - The interim condensed consolidated financial information was approved for publication by the Board of Directors on **August 21, 2025**[23](index=23&type=chunk) [2. Adoption of New or Revised Hong Kong Financial Reporting Standards](index=12&type=section&id=2.%20%E6%8E%A1%E7%B4%8D%E6%96%B0%E8%A8%82%E6%88%96%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%E6%9C%83%E8%A8%88%E6%BA%96%E5%89%87) The Group has applied new and revised HKFRS effective from January 1, 2025, with no significant impact on the interim condensed consolidated financial information - The Group has applied new and revised standards and interpretations effective for annual periods beginning on or after **January 1, 2025**[24](index=24&type=chunk) - The adoption of amendments to **HKAS 21** and **HKFRS 1** had no significant impact on the Group's interim condensed consolidated financial information[24](index=24&type=chunk) [3. Basis of Preparation](index=13&type=section&id=3.%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) The interim condensed consolidated financial information is prepared in accordance with HKAS 34 "Interim Financial Reporting" and HKEX Listing Rules Appendix D2, using consistent accounting policies with the 2024 annual financial statements - The financial information is prepared in accordance with **HKAS 34 "Interim Financial Reporting"** issued by the HKICPA and the applicable disclosure requirements of Appendix D2 to the Listing Rules of the Stock Exchange[25](index=25&type=chunk) - The accounting policies adopted in preparing these interim condensed financial information are consistent with those applied in the annual financial statements for the year ended **December 31, 2024**[25](index=25&type=chunk) [4. Segment Information](index=13&type=section&id=4.%20%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group's operating segments include securities brokerage and financial services, asset management, proprietary trading, and trading businesses, each managed independently with consistent measurement methods for segment results and assets/liabilities - The Group's operating segments include: (a) **securities brokerage and financial services**; (b) **asset management services**; (c) **proprietary trading**; and (d) **trading businesses**[26](index=26&type=chunk) - For the six months ended June 30, 2025, total segment revenue was **HKD 12,098 thousand**, with **securities brokerage and financial services** contributing **HKD 7,427 thousand** and **asset management services** contributing **HKD 4,671 thousand**[28](index=28&type=chunk) [Reportable Segment Revenue and Results (For the six months ended June 30)](index=13&type=section&id=%E5%8F%AF%E7%94%B3%E5%A0%B1%E5%88%86%E9%83%A8%E6%94%B6%E7%9B%8A%E5%8F%8A%E6%A5%AD%E7%B8%BE%20(%E6%88%AA%E8%87%B3%E5%85%AD%E6%9C%88%E4%B8%89%E5%8D%81%E6%97%A5%E6%AD%A2%E5%85%AD%E5%80%8B%E6%9C%88)) | Segment | 2025 Revenue (HKD '000) | 2024 Revenue (HKD '000) | 2025 Results (HKD '000) | 2024 Results (HKD '000) | | :--- | :--- | :--- | :--- | :--- | | Securities brokerage and financial services | 7,427 | 9,929 | 6,202 | 5,140 | | Asset management services | 4,671 | 4,309 | 4,098 | 10,522 | | Proprietary trading | – | – | 2,078 | 19,678 | | Trading business | – | 172 | (3) | 300 | | **Total** | **12,098** | **14,410** | **12,375** | **35,640** | [5. Revenue](index=16&type=section&id=5.%20%E6%94%B6%E7%9B%8A) For the six months ended June 30, 2025, the Group's total revenue was HKD 12,098 thousand, primarily from fees and commission income from customer contracts, with corporate finance services and fund/portfolio management being key contributors [Revenue Components (For the six months ended June 30)](index=16&type=section&id=%E6%94%B6%E7%9B%8A%E6%A7%8B%E6%88%90%20(%E6%88%AA%E8%87%B3%E5%85%AD%E6%9C%88%E4%B8%89%E5%8D%81%E6%97%A5%E6%AD%A2%E5%85%AD%E5%80%8B%E6%9C%88)) | Revenue Source | 2025 (HKD '000) | 2024 (HKD '000) | Change (%) | | :--- | :--- | :--- | :--- | | Securities and futures brokerage | 164 | 1,157 | -85.8% | | Corporate finance services income | 6,000 | 6,480 | -7.56% | | Advisory fee income | 83 | 127 | -34.6% | | Custodian fees | 1,180 | 2,165 | -45.5% | | Fund and portfolio management and investment advisory | 4,671 | 4,309 | 8.40% | | Financing services interest income | – | 172 | -100% | | **Total** | **12,098** | **14,410** | **-16.04%** | [6. Other Gains and Losses](index=17&type=section&id=6.%20%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E5%8F%8A%E8%99%A7%E6%90%8D) For the six months ended June 30, 2025, the Group's other gains and losses significantly decreased to HKD 1,172 thousand, primarily due to the absence of a non-recurring gain of HKD 17,326 thousand from the disposal of debt investments at fair value through profit or loss in the prior period [Other Gains and Losses (For the six months ended June 30)](index=17&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E5%8F%8A%E8%99%A7%E6%90%8D%20(%E6%88%AA%E8%87%B3%E5%85%AD%E6%9C%88%E4%B8%89%E5%8D%81%E6%97%A5%E6%AD%A2%E5%85%AD%E5%80%8B%E6%9C%88)) | Item | 2025 (HKD '000) | 2024 (HKD '000) | Change (%) | | :--- | :--- | :--- | :--- | | Net gain on disposal of debt investments at fair value through profit or loss | – | 17,326 | -100% | | Fair value changes of investments held for trading | 1,155 | 15 | 7600% | | Net foreign exchange gain | 17 | 135 | -87.4% | | **Total** | **1,172** | **17,476** | **-93.29%** | - A non-recurring gain of **HKD 17,326 thousand** from the disposal of Atta notes-related debt instruments was recognized in 2024, with no such gain in 2025[32](index=32&type=chunk)[35](index=35&type=chunk) [7. Other Income](index=19&type=section&id=7.%20%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) For the six months ended June 30, 2025, the Group's other income was HKD 1,569 thousand, slightly lower than HKD 1,660 thousand in the prior period, mainly comprising bank and other interest income and dividend income [Other Income Components (For the six months ended June 30)](index=19&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E6%A7%8B%E6%88%90%20(%E6%88%AA%E8%87%B3%E5%85%AD%E6%9C%88%E4%B8%89%E5%8D%81%E6%97%A5%E6%AD%A2%E5%85%AD%E5%80%8B%E6%9C%88)) | Item | 2025 (HKD '000) | 2024 (HKD '000) | Change (%) | | :--- | :--- | :--- | :--- | | Bank and other interest income | 1,087 | 1,048 | 3.72% | | Dividend income | 482 | 451 | 6.87% | | Miscellaneous income | – | 161 | -100% | | **Total** | **1,569** | **1,660** | **-5.48%** | [8. Profit Before Income Tax](index=19&type=section&id=8.%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, 2025, the Group's profit before income tax was HKD 6,984 thousand, a significant decrease from HKD 30,384 thousand in the prior period, mainly impacted by finance costs, auditor's remuneration, and staff costs [Profit Before Income Tax Deductions (For the six months ended June 30)](index=19&type=section&id=%E9%99%A4%E6%89%80%E5%BE%97%E7%A8%85%E5%89%8D%E6%BA%A2%E5%88%A9%E6%89%A3%E9%99%A4%E9%A0%85%20(%E6%88%AA%E8%87%B3%E5%85%AD%E6%9C%88%E4%B8%89%E5%8D%81%E6%97%A5%E6%AD%A2%E5%85%AD%E5%80%8B%E6%9C%88)) | Item | 2025 (HKD '000) | 2024 (HKD '000) | Change (%) | | :--- | :--- | :--- | :--- | | Finance costs | 68 | 114 | -40.35% | | Auditor's remuneration | 200 | 340 | -41.18% | | Staff costs (including directors' emoluments) | 3,852 | 4,284 | -10.08% | [9. Income Tax Expense](index=20&type=section&id=9.%20%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) For the six months ended June 30, 2025, the Group's income tax expense significantly increased to HKD 1,652 thousand from HKD 581 thousand in the prior period, primarily calculated under Hong Kong's two-tiered profits tax regime - Hong Kong profits tax is calculated under the **two-tiered profits tax regime**, with the first **HKD 2 million** of assessable profits taxed at **8.25%** and the remainder at **16.5%**[38](index=38&type=chunk) [Current Tax - Hong Kong Profits Tax (For the six months ended June 30)](index=20&type=section&id=%E5%8D%B3%E6%9C%9F%E7%A8%85%E9%A0%85%EF%BC%8D%E9%A6%99%E6%B8%AF%E5%88%A9%E5%BE%97%E7%A8%85%20(%E6%88%AA%E8%87%B3%E5%85%AD%E6%9C%88%E4%B8%89%E5%8D%81%E6%97%A5%E6%AD%A2%E5%85%AD%E5%80%8B%E6%9C%88)) | Item | 2025 (HKD '000) | 2024 (HKD '000) | Change (%) | | :--- | :--- | :--- | :--- | | Provision for the period | 1,652 | 581 | 184.34% | [10. Dividends](index=20&type=section&id=10.%20%E8%82%A1%E6%81%AF) No dividends were proposed or paid by the Company for the six months ended June 30, 2025, or 2024 - No dividends were proposed or paid for the six months ended **June 30, 2025**, or **2024**[40](index=40&type=chunk) [11. Earnings Per Share](index=20&type=section&id=11.%20%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) For the six months ended June 30, 2025, basic and diluted earnings per share were both 0.60 HK cents, a significant decrease from 3.38 HK cents in the prior period, mainly due to reduced profit for the period [Earnings Per Share (For the six months ended June 30)](index=20&type=section&id=%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9%20(%E6%88%AA%E8%87%B3%E5%85%AD%E6%9C%88%E4%B8%89%E5%8D%81%E6%97%A5%E6%AD%A2%E5%85%AD%E5%80%8B%E6%9C%88)) | Indicator | 2025 (HK cents) | 2024 (HK cents) | Change (%) | | :--- | :--- | :--- | :--- | | Basic earnings per share | 0.60 | 3.38 | -82.25% | | Diluted earnings per share | 0.60 | 3.38 | -82.25% | - Basic earnings per share are calculated based on profit attributable to owners of the Company of approximately **HKD 5,332,000** (2024: HKD 29,803,000) and the weighted average number of ordinary shares in issue of **881,970,541** shares during the period[41](index=41&type=chunk) [12. Property, Plant and Equipment](index=21&type=section&id=12.%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, 2025, and 2024, the Group neither purchased nor disposed of any property, plant, and equipment - For the six months ended **June 30, 2025**, and **2024**, the Group neither purchased nor disposed of any property, plant, and equipment[42](index=42&type=chunk) [13. Leases](index=21&type=section&id=13.%20%E7%A7%9F%E8%B3%83) As of June 30, 2025, the Group's right-of-use assets and lease liabilities both decreased, with no new lease agreements entered into or renewed during the period [Lease-Related Carrying Amounts (As of June 30)](index=21&type=section&id=%E7%A7%9F%E8%B3%83%E7%9B%B8%E9%97%9C%E8%B3%B4%E9%9D%A2%E5%80%BC%20(%E6%88%AA%E8%87%B3%E5%85%AD%E6%9C%88%E4%B8%89%E5%8D%81%E6%97%A5)) | Item | 2025 June 30 (HKD '000) | 2024 Dec 31 (HKD '000) | Change (%) | | :--- | :--- | :--- | :--- | | Carrying amount of right-of-use assets | 1,730 | 2,471 | -30.0% | | Carrying amount of lease liabilities | 1,827 | 2,631 | -30.6% | [Lease-Related Expenses Recognized in Profit or Loss (For the six months ended June 30)](index=21&type=section&id=%E6%90%8D%E7%9B%8A%E4%B8%AD%E7%A2%BA%E8%AA%8D%E7%9A%84%E7%A7%9F%E8%B3%83%E7%9B%B8%E9%97%9C%E9%96%8B%E6%94%AF%20(%E6%88%AA%E8%87%B3%E5%85%AD%E6%9C%88%E4%B8%89%E5%8D%81%E6%97%A5%E6%AD%A2%E5%85%AD%E5%80%8B%E6%9C%88)) | Item | 2025 (HKD '000) | 2024 (HKD '000) | Change (%) | | :--- | :--- | :--- | :--- | | Depreciation expense of right-of-use assets | 741 | 741 | 0.0% | | Interest on lease liabilities | 68 | 114 | -40.35% | | Expenses relating to short-term leases | 68 | 71 | -4.23% | [14. Trade and Other Receivables, Deposits and Prepayments](index=22&type=section&id=14.%20%E6%87%89%E6%94%B6%E8%B3%B4%E6%AC%BE%E5%8F%8A%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, 2025, the Group's total trade and other receivables, deposits, and prepayments significantly increased to HKD 29,283 thousand, mainly due to higher prepayments and corporate finance service receivables [Trade and Other Receivables, Deposits and Prepayments (As of June 30)](index=22&type=section&id=%E6%87%89%E6%94%B6%E8%B3%B4%E6%AC%BE%E5%8F%8A%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%20(%E6%88%AA%E8%87%B3%E5%85%AD%E6%9C%88%E4%B8%89%E5%8D%81%E6%97%A5)) | Item | 2025 June 30 (HKD '000) | 2024 Dec 31 (HKD '000) | Change (%) | | :--- | :--- | :--- | :--- | | Trade receivables (net of impairment allowance) | 7,738 | 4,669 | 65.7% | | Prepayments | 19,134 | 615 | 3011.2% | | Other receivables and deposits | 1,901 | 711 | 167.4% | | Lease deposits | 510 | 510 | 0.0% | | **Total** | **29,283** | **6,505** | **350.2%** | [Trade Receivables Analysis (As of June 30)](index=22&type=section&id=%E6%87%89%E6%94%B6%E8%B3%B4%E6%AC%BE%E5%88%86%E6%9E%90%20(%E6%88%AA%E8%87%B3%E5%85%AD%E6%9C%88%E4%B8%89%E5%8D%81%E6%97%A5)) | Source | 2025 June 30 (HKD '000) | 2024 Dec 31 (HKD '000) | Change (%) | | :--- | :--- | :--- | :--- | | Asset management services | 5,317 | 5,305 | 0.23% | | Underwriting and placement services | 8,000 | 8,000 | 0.0% | | Advisory services | 4,656 | 4,656 | 0.0% | | Corporate finance services | 3,283 | 200 | 1541.5% | | **Total** | **21,256** | **18,161** | **17.04%** | - Trade receivables overdue for more than **365 days** amounted to **HKD 13,480 thousand**, representing a significant portion of total trade receivables[49](index=49&type=chunk) [15. Investments Held for Trading](index=24&type=section&id=15.%20%E6%8C%81%E4%BD%9C%E8%B2%B7%E8%B3%A3%E7%94%A8%E9%80%94%E6%8A%95%E8%B3%87) As of June 30, 2025, the Group's investments in listed equity securities held for trading increased to HKD 15,155 thousand [Investments Held for Trading (As of June 30)](index=24&type=section&id=%E6%8C%81%E4%BD%9C%E8%B2%B7%E8%B3%A3%E7%94%A8%E9%80%94%E6%8A%95%E8%B3%87%20(%E6%88%AA%E8%87%B3%E5%85%AD%E6%9C%88%E4%B8%89%E5%8D%81%E6%97%A5)) | Item | 2025 June 30 (HKD '000) | 2024 Dec 31 (HKD '000) | Change (%) | | :--- | :--- | :--- | :--- | | Listed equity securities | 15,155 | 14,000 | 8.25% | [16. Trade and Other Payables and Accrued Expenses](index=25&type=section&id=16.%20%E6%87%89%E4%BB%98%E8%B3%B4%E6%AC%BE%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85%E4%BB%A5%E5%8F%8A%E6%87%89%E8%A8%88%E8%B2%BB%E7%94%A8) As of June 30, 2025, the Group's total trade and other payables and accrued expenses decreased to HKD 13,793 thousand, mainly due to a significant reduction in cash client payables from securities and futures trading businesses [Trade and Other Payables and Accrued Expenses (As of June 30)](index=25&type=section&id=%E6%87%89%E4%BB%98%E8%B3%B4%E6%AC%BE%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85%E4%BB%A5%E5%8F%8A%E6%87%89%E8%A8%88%E8%B2%BB%E7%94%A8%20(%E6%88%AA%E8%87%B3%E5%85%AD%E6%9C%88%E4%B8%89%E5%8D%81%E6%97%A5)) | Item | 2025 June 30 (HKD '000) | 2024 Dec 31 (HKD '000) | Change (%) | | :--- | :--- | :--- | :--- | | Trade payables from securities and futures trading business - cash clients | 10,400 | 20,029 | -48.08% | | Trade payables from securities and futures trading business - margin clients | 2,309 | 2,307 | 0.09% | | Other payables | 144 | 793 | -81.84% | | Accrued expenses | 940 | 1,698 | -44.64% | | **Total** | **13,793** | **24,827** | **-44.44%** | - The Directors believe that an aging analysis of trade payables would not provide additional usefulness given the nature of the business, and thus it is not disclosed[51](index=51&type=chunk) [17. Share Capital](index=26&type=section&id=17.%20%E8%82%A1%E6%9C%AC) As of June 30, 2025, the Company's authorized and issued and fully paid share capital remained unchanged, with all issued shares enjoying equal rights [Share Capital Structure (As of June 30)](index=26&type=section&id=%E8%82%A1%E6%9C%AC%E7%B5%90%E6%A7%8B%20(%E6%88%AA%E8%87%B3%E5%85%AD%E6%9C%88%E4%B8%89%E5%8D%81%E6%97%A5)) | Item | 2025 June 30 | 2024 Jan 1 | | :--- | :--- | :--- | | Number of authorized ordinary shares (par value HKD 0.1 per share) | 6,000,000,000 | 6,000,000,000 | | Authorized share capital par value (HKD '000) | 600,000 | 600,000 | | Number of issued and fully paid ordinary shares | 881,970,541 | 881,970,541 | | Issued and fully paid share capital par value (HKD '000) | 88,197 | 88,197 | - All issued shares carry equal rights in respect of **dividends, voting, and return of capital**[52](index=52&type=chunk) [18. Related Party Transactions](index=27&type=section&id=18.%20%E9%97%9C%E9%80%A3%E4%BA%BA%E5%A3%AB%E4%BA%A4%E6%98%93) During the reporting period, the Group engaged in custodian fee and corporate finance service fee transactions with related party Yuan Yin Financial Credit Limited and had amounts due from Yuan Yin Holdings Limited [Significant Related Party Transactions (For the six months ended June 30)](index=27&type=section&id=%E8%88%87%E9%97%9C%E9%80%A3%E4%BA%BA%E5%A3%AB%E7%9A%84%E9%87%8D%E5%A4%A7%E4%BA%A4%E6%98%93%20(%E6%88%AA%E8%87%B3%E5%85%AD%E6%9C%88%E4%B8%89%E5%8D%81%E6%97%A5%E6%AD%A2%E5%85%AD%E5%80%8B%E6%9C%88)) | Transacting Party | Transaction Type | 2025 (HKD '000) | 2024 (HKD '000) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Yuan Yin Financial Credit Limited | Custodian fee income | 900 | 900 | 0.0% | | Yuan Yin Financial Credit Limited | Corporate finance service fee income | 6,000 | 6,480 | -7.41% | [Amounts Due from Related Parties to the Group (As of June 30)](index=27&type=section&id=%E7%B5%90%E6%AC%A0%E6%9C%AC%E9%9B%86%E5%9C%98%E7%9A%84%E9%97%9C%E9%80%A3%E4%BA%BA%E5%A3%AB%E6%AC%BE%E9%A0%85%20(%E6%88%AA%E8%87%B3%E5%85%AD%E6%9C%88%E4%B8%89%E5%8D%81%E6%97%A5)) | Related Party | 2025 June 30 (HKD '000) | 2024 Dec 31 (HKD '000) | | :--- | :--- | :--- | | Yuan Yin Holdings Limited | 3,000 | – | - Amounts due from the Group (Yuan Yin Holdings Limited) are **unsecured, interest-free, and without a credit period**[54](index=54&type=chunk) [Key Management Personnel Remuneration (For the six months ended June 30)](index=27&type=section&id=%E4%B8%BB%E8%A6%81%E7%AE%A1%E7%90%86%E5%B1%A4%E4%BA%BA%E5%93%A1%E8%96%AA%E9%85%AC%20(%E6%88%AA%E8%87%B3%E5%85%AD%E6%9C%88%E4%B8%89%E5%8D%81%E6%97%A5%E6%AD%A2%E5%85%AD%E5%80%8B%E6%9C%88)) | Item | 2025 (HKD '000) | 2024 (HKD '000) | | :--- | :--- | :--- | | Salaries and allowances | 840 | 840 | | Contributions to retirement benefit schemes | 18 | 18 | | **Total** | **858** | **858** | [19. Fair Value Measurement](index=29&type=section&id=19.%20%E5%85%AC%E5%B9%B3%E5%80%BC%E8%A8%88%E9%87%8F) The Group's financial instruments are categorized into three levels based on fair value hierarchy; as of June 30, 2025, listed equity securities held for trading are all Level 1, with fair values based on market quotations [Financial Instruments Measured at Fair Value (As of June 30)](index=29&type=section&id=%E6%8C%89%E5%85%AC%E5%B9%B3%E5%80%BC%E8%A8%88%E9%87%8F%E7%9A%84%E9%87%91%E8%9E%8D%E5%B7%B7%E5%85%B7%20(%E6%88%AA%E8%87%B3%E5%85%AD%E6%9C%88%E4%B8%89%E5%8D%81%E6%97%A5)) | Item | Level 1 (HKD '000) | Level 2 (HKD '000) | Level 3 (HKD '000) | Total (HKD '000) | | :--- | :--- | :--- | :--- | :--- | | 2025 June 30 Listed equity securities | 15,155 | – | – | 15,155 | | 2024 Dec 31 Listed equity securities | 14,000 | – | – | 14,000 | - The fair value hierarchy categorizes financial instruments into **three levels**: Level 1 for active market quotes, Level 2 for observable inputs, and Level 3 for unobservable inputs[57](index=57&type=chunk) - The fair value of listed equity securities is based on **market quotations** at the reporting date, using current market bid prices[59](index=59&type=chunk) [20. Events After the Reporting Period](index=30&type=section&id=20.%20%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) No significant events occurred after June 30, 2025, up to the date of publication of the interim condensed consolidated financial information - No significant events related to the Group occurred after **June 30, 2025**, and up to the date of publication of the interim condensed consolidated financial information[61](index=61&type=chunk) [Management Discussion and Analysis](index=31&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 reviews the Group's financial performance and business operations for the reporting period, including reasons for decreased revenue and net profit, and outlines future development strategies emphasizing cross-border cooperation and diversified revenue streams [Interim Dividend](index=31&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Directors do not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Directors do not recommend the payment of an interim dividend for the six months ended **June 30, 2025** (2024 corresponding period: nil)[63](index=63&type=chunk) [Business and Financial Review](index=31&type=section&id=%E6%A5%AD%E5%8B%99%E5%8F%8A%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) The Group's fees and commission income decreased by 14.8% year-on-year, and net profit significantly dropped by 82.11%, mainly due to the absence of non-recurring gains from the prior period; operations of various business segments are also reviewed [Financial Summary](index=31&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) For the six months ended June 30, 2025, the Group's fees and commission income was approximately HKD 12.1 million, a 14.8% year-on-year decrease; profit for the period was approximately HKD 5.3 million, a significant 82.11% year-on-year decrease, mainly due to the non-recognition of non-recurring gains from the prior period - Fees and commission income was approximately **HKD 12.1 million**, a **14.8% decrease** compared to the prior period, mainly due to reduced financial advisory services and general custodian services[64](index=64&type=chunk) - Profit for the period was approximately **HKD 5.3 million**, compared to **HKD 29.8 million** in the prior period, with the net profit decrease primarily attributed to the non-recognition of non-recurring gains from the disposal of debt instruments at fair value through profit or loss in 2024[64](index=64&type=chunk) - Basic and diluted earnings per share for the first half of 2025 were both approximately **0.6 HK cents**, compared to **3.38 HK cents** in the prior period[64](index=64&type=chunk) [Operations of Business Segments - Securities Brokerage and Financial Services](index=31&type=section&id=%E6%A5%AD%E5%8B%99%E5%88%86%E9%83%A8%E4%B9%8B%E7%B6%93%E7%87%9F%EF%BC%8D%E8%AD%89%E5%88%B8%E7%B6%93%E7%B4%80%E5%8F%8A%E9%87%91%E8%9E%8D%E6%9C%8D%E5%8B%99) The Group provides securities brokerage and financial services through Sheng Yuan Securities and Sheng Yuan Capital, including securities and futures brokerage, underwriting and placement, margin financing, and corporate finance advisory; client trust bank balances decreased by 43.0% year-on-year - Sheng Yuan Securities is licensed for **Type 1 (dealing in securities), Type 2 (dealing in futures contracts), and Type 4 (advising on securities)** regulated activities[65](index=65&type=chunk) - Sheng Yuan Capital is licensed for **Type 6 (advising on corporate finance)** regulated activities, providing corporate advisory services[66](index=66&type=chunk) - Client trust bank accounts held approximately **HKD 12.7 million**, a **43.0% decrease** from **HKD 22.3 million** as of December 31, 2024, mainly due to client withdrawals[65](index=65&type=chunk) [Operations of Business Segments - Asset Management](index=32&type=section&id=%E6%A5%AD%E5%8B%99%E5%88%86%E9%83%A8%E4%B9%8B%E7%B6%93%E7%87%9F%EF%BC%8D%E8%B3%87%E7%94%A2%E7%AE%A1%E7%90%86) Sheng Yuan Asset Management provides fund management and investment advisory services; as of June 30, 2025, total assets under management were HKD 0.15 million, a significant decrease from the prior period, mainly due to the termination of an overseas fund in July 2024 - Sheng Yuan Asset Management is licensed for **Type 4 (advising on securities)** and **Type 9 (asset management)** regulated activities[67](index=67&type=chunk) - As of June 30, 2025, total assets under management were **HKD 0.15 million** (June 30, 2024: HKD 658.9 million), primarily due to the termination of an overseas fund in **July 2024**[68](index=68&type=chunk)[69](index=69&type=chunk) [Operations of Business Segments - Proprietary Trading](index=32&type=section&id=%E6%A5%AD%E5%8B%99%E5%88%86%E9%83%A8%E4%B9%8B%E7%B6%93%E7%87%9F%EF%BC%8D%E8%87%AA%E7%87%9F%E8%B2%B7%E8%B3%A3) Proprietary trading business primarily invests in listed shares, corporate bonds, and private equity funds in the Hong Kong market, recording a profit of approximately HKD 2.1 million for the six months ended June 30, 2025, a significant decrease from the prior period - Proprietary trading business primarily invests in **listed shares, corporate bonds, and private equity funds** in the Hong Kong market[70](index=70&type=chunk) - For the six months ended June 30, 2025, proprietary trading recorded a profit of approximately **HKD 2.1 million** (2024 corresponding period: HKD 19.7 million)[70](index=70&type=chunk) [Outlook and Future Plans](index=33&type=section&id=%E5%89%8D%E6%99%AF%E5%8F%8A%E6%9C%AA%E4%BE%86%E8%A6%8F%E5%8A%83) The Group remains cautiously optimistic for the second half of 2025 and beyond, planning to strengthen cross-border cooperation, expand securities brokerage, asset management, and corporate finance services, enhance its fund management platform, and develop innovative financial advisory and margin financing solutions to diversify revenue and achieve sustainable returns - The Hong Kong financial market showed a **moderate recovery** in the first half of 2025, with the Hang Seng Index rising approximately **21%** year-to-date and improved equity fundraising[72](index=72&type=chunk) - The Group will continue to pursue a **prudent strategy**, closely monitor macroeconomic developments, and leverage Hong Kong's position in the Greater Bay Area to strengthen cross-border cooperation and explore new partnerships[72](index=72&type=chunk) - The management team is committed to enhancing the **fund management platform**, expanding **discretionary account services**, and developing innovative **financial advisory and margin financing solutions** to diversify revenue, enhance resilience, and deliver sustainable returns to shareholders[72](index=72&type=chunk) [Acquisitions and Disposals](index=34&type=section&id=%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE) For the six months ended June 30, 2025, the Group did not undertake any significant acquisitions or disposals of subsidiaries, associates, and joint ventures - For the six months ended **June 30, 2025**, there were no significant acquisitions or disposals of subsidiaries, associates, and joint ventures[73](index=73&type=chunk) [Liquidity and Financial Resources](index=34&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) As of June 30, 2025, the Group's cash and bank balances decreased to HKD 25.8 million, but net assets increased, with no borrowings and a net current asset position of HKD 119.4 million - Cash and bank balances (general accounts) were approximately **HKD 25.8 million**, a decrease of approximately **HKD 18.2 million** from December 31, 2024[74](index=74&type=chunk) - Net current assets were **HKD 119.4 million** (December 31, 2024: HKD 114.2 million)[16](index=16&type=chunk)[74](index=74&type=chunk) - The Group has **no borrowings** or other debt, so the gearing ratio is not applicable[75](index=75&type=chunk) - Net assets were approximately **HKD 121.9 million** (December 31, 2024: HKD 116.6 million)[75](index=75&type=chunk) [Foreign Exchange Risk](index=34&type=section&id=%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA) The Group's transactions are primarily denominated in HKD, USD, and RMB; currently, no foreign currency hedging policy is in place, but management monitors exchange rate fluctuations to mitigate risks - The Group's transactions are primarily denominated in **HKD, USD, and RMB**[76](index=76&type=chunk) - The Group does not have any foreign currency hedging policy in place, but management will closely monitor exchange rate fluctuations and take appropriate actions to mitigate risks[76](index=76&type=chunk) [Capital Structure](index=34&type=section&id=%E8%B3%87%E6%9C%AC%E6%9E%B6%E6%A7%8B) The Group's capital structure comprises issued share capital and reserves attributable to shareholders; the Board monitors capital structure by reviewing cash flow needs and financial obligations, with no changes during the reporting period - The Group's capital structure comprises **issued share capital** and **reserves attributable to the Company's shareholders**[77](index=77&type=chunk) - There were no changes in the capital structure for the six months ended **June 30, 2025**[77](index=77&type=chunk) [Funding and Treasury Policy](index=35&type=section&id=%E8%B3%87%E9%87%91%E5%8F%8A%E5%BA%AB%E5%8B%99%E6%94%BF%E7%AD%96) The Group adopts a conservative cash management and investment strategy for unallocated funds, primarily holding cash and cash equivalents as short-term deposits with authorized institutions in Hong Kong - The Group adopts a **conservative cash management and investment strategy** for funds not designated for specific purposes[79](index=79&type=chunk) - Cash and cash equivalents are primarily held in **HKD, USD, and RMB** as short-term deposits with authorized institutions in Hong Kong[79](index=79&type=chunk) [Contingent Liabilities](index=35&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group had no significant contingent liabilities - As of **June 30, 2025**, the Group had no significant contingent liabilities[80](index=80&type=chunk) [Events After Reporting Period](index=35&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) No significant events concerning the Group occurred after the reporting period and up to the date of this report - No significant events concerning the Group occurred after the reporting period and up to the date of this report[81](index=81&type=chunk) [Pledged Assets](index=35&type=section&id=%E6%8A%B5%E6%8A%BC%E8%B3%87%E7%94%A2) As of June 30, 2025, the Group had no pledged assets - As of **June 30, 2025**, the Group had no pledged assets[82](index=82&type=chunk) [Human Resources](index=35&type=section&id=%E4%BA%BA%E5%8A%9B%E8%B3%87%E6%BA%90) As of June 30, 2025, the Group employed 19 staff, maintaining market-level remuneration policies and providing regular training to enhance employee capabilities - As of **June 30, 2025**, the Group employed **19 staff**[83](index=83&type=chunk) - Remuneration policies and benefits are maintained at market levels, with regular training and various development programs provided[83](index=83&type=chunk) [Corporate Governance and Other Information](index=35&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) This section discloses the company's corporate governance practices, including directors' and major shareholders' interests, share option schemes, listed securities transactions, interim report review, audit committee composition, and compliance with the Corporate Governance Code [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares, and Debentures of the Company](index=36&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E6%9C%80%E9%AB%98%E8%A1%8C%E6%94%BF%E4%BA%BA%E5%93%A1%E6%96%BC%E6%9C%AC%E5%85%AC%E5%8F%B8%E8%82%A1%E4%BB%BD%E3%80%81%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E5%8F%8A%E5%82%B5%E6%AC%8A%E8%AD%89%E4%B9%8B%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) As of June 30, 2025, no directors or chief executives held any disclosable interests or short positions in the Company's or its associated corporations' shares, underlying shares, or debentures - As of **June 30, 2025**, no directors or chief executives held any interests in the shares, underlying shares, or debentures of the Company or any of its associated corporations that are required to be recorded in the register or otherwise notified to the Company and the Stock Exchange[84](index=84&type=chunk) [Major Shareholders' Interests](index=36&type=section&id=%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1%E6%AC%8A%E7%9B%8A) As of June 30, 2025, Yuan Yin Holdings Limited is the Company's major shareholder, holding 68.15% of the issued share capital [Major Shareholders' Long Positions (As of June 30)](index=36&type=section&id=%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1%E5%A5%BD%E5%80%89%20(%E6%88%AA%E8%87%B3%E5%85%AD%E6%9C%88%E4%B8%89%E5%8D%81%E6%97%A5)) | Shareholder Name | Capacity | Number of Shares Held | Percentage of Company's Issued Share Capital | | :--- | :--- | :--- | :--- | | Yuan Yin Holdings Limited | Beneficial owner | 601,100,000 | 68.15% | | Yuan Yin Holdings Limited | Interest in controlled corporation | 1,917,000 | 0.22% | - Yuan Yin Holdings Limited is deemed to have an interest in **1,917,000 shares** of the Company beneficially owned by Yuan Yin International Limited, a wholly-owned subsidiary of Yuan Yin Holdings Limited[86](index=86&type=chunk) [Share Options](index=37&type=section&id=%E8%B3%BC%E8%82%A1%E6%AC%8A) The Company adopted the 2014 Share Option Scheme to incentivize or reward eligible participants, but no share options were granted under the scheme for the six months ended June 30, 2025 - The Company adopted a new share option scheme ("2014 Scheme") on **October 15, 2014**, to incentivize or reward eligible participants[88](index=88&type=chunk) - For the six months ended **June 30, 2025**, no share options were granted under the 2014 Scheme, and no shares remained unexercised[88](index=88&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=38&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities - For the six months ended **June 30, 2025**, neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities[89](index=89&type=chunk) - As of **June 30, 2025**, the Company held no treasury shares[89](index=89&type=chunk) [Review of Interim Report](index=38&type=section&id=%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A%E4%B9%8B%E5%AF%A9%E9%96%B1) The Group's interim report for the six months ended June 30, 2025, has been reviewed by Beijing Xinghua Dingfeng Certified Public Accountants Co., Ltd and complies with the disclosure requirements of the Listing Rules - The interim report has been reviewed by **Beijing Xinghua Dingfeng Certified Public Accountants Co., Ltd** in accordance with Hong Kong Standard on Review Engagements 2410[90](index=90&type=chunk) - The interim report contains all relevant information required by **Appendix D2** of the Listing Rules[90](index=90&type=chunk) [Audit Committee](index=38&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Audit Committee, comprising Ms. Huang Qin (Chairperson), Mr. Zhang Jinfan, and Mr. Huang Shuanggang, has reviewed the Group's accounting principles, internal controls, and interim results - The Audit Committee comprises **Ms. Huang Qin (Chairperson), Mr. Zhang Jinfan, and Mr. Huang Shuanggang**, all possessing appropriate professional qualifications and financial experience[91](index=91&type=chunk) - The Audit Committee has reviewed the interim results and unaudited financial statements for the six months ended **June 30, 2025**[91](index=91&type=chunk) [Corporate Governance](index=38&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) The Company is committed to maintaining high corporate governance standards and has complied with the Corporate Governance Code set out in Appendix C1 of the Listing Rules for the six months ended June 30, 2025 - The Company is committed to maintaining high standards of corporate governance and procedures to safeguard the interests of all shareholders[92](index=92&type=chunk) - The Company has complied with the Corporate Governance Code set out in **Appendix C1** of the Listing Rules for the six months ended **June 30, 2025**[92](index=92&type=chunk) [Standard Code for Securities Transactions by Directors](index=39&type=section&id=%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The Company has adopted the Standard Code as its code of conduct for directors' securities transactions and confirms that directors have complied with it during the reporting period - The Company has adopted the **Standard Code** as its own code of conduct for directors' securities transactions[93](index=93&type=chunk) - The directors have complied with the required standards set out in the Standard Code for the six months ended **June 30, 2025**[93](index=93&type=chunk) [Board of Directors](index=39&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83) As of the date of this report, the Board of Directors comprises two executive directors, one non-executive director, and three independent non-executive directors - The Board of Directors comprises Executive Directors **Mr. Zhou Quan** and **Mr. Zhao Yun**, Non-Executive Director **Mr. Huang Shuanggang**, and Independent Non-Executive Directors **Mr. Zhang Jinfan, Ms. Huang Qin, and Mr. Guo Yaoli**[94](index=94&type=chunk)

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 | | | 致：香港交易及結算所有限公司 公司名稱: 盛源控股有限公司 呈交日期: 2025年9月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 00851 | 說明 | 盛源控股有限公司 | | | | | | | | | 法定/註冊股份數目 | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 6,000,000,000 HKD | | | 0.1 HKD | | 600,000,000 | | 增加 / 減少 (-) | | | | | | HKD | | | | 本月底結存 | | | 6,000,000,000 HKD | | | 0.1 HKD | | 600,000,000 | 本月底法定/註冊股本總額： HKD 600,000,000 第 1 頁 共 10 ...

Group 1 - The company, Shengyuan Holdings (00851), reported interim results for the six months ending June 30, 2025, with revenue of HKD 12.098 million, a year-on-year decrease of 16.04% [1] - The net profit for the period was HKD 5.333 million, reflecting a significant year-on-year decline of 82.11% [1] - Basic earnings per share were reported at HKD 0.006 [1] Group 2 - The decrease in net profit is primarily attributed to the absence of non-recurring gains from the sale of debt instruments measured at fair value through profit or loss in 2024 [1]

Group 1 - The core viewpoint of the article is that Shengyuan Holdings (00851) reported a decline in both revenue and profit for the six months ending June 30, 2025, indicating financial challenges faced by the company [1] - The company achieved revenue of HKD 12.098 million, representing a year-on-year decrease of 16.04% [1] - The net profit for the period was HKD 5.333 million, which reflects a significant year-on-year decline of 82.11% [1] - Basic earnings per share were reported at HKD 0.006 [1] Group 2 - The decrease in net profit is primarily attributed to the absence of non-recurring gains from the sale of debt instruments measured at fair value through profit or loss in 2024 [1]

Summary of Key Points Core Viewpoint - 盛源控股 (00851.HK) reported a significant decline in revenue and profit for the first half of 2025, primarily due to reduced brokerage and custodial services [1]. Financial Performance - The company recorded commission and fee income of approximately HKD 12.1 million for the six months ending June 30, 2025, representing a year-on-year decrease of 14.8% [1]. - Net profit for the same period was approximately HKD 5.3 million, a substantial drop from HKD 29.8 million in the corresponding period of 2024 [1]. - Basic and diluted earnings per share for the first half of 2025 were approximately HKD 0.006, compared to a loss of HKD 0.0338 per share in 2024 [1]. Non-Recurring Income Impact - The decrease in net profit is mainly attributed to the absence of non-recurring income from the sale of debt instruments measured at fair value, which was recognized in 2024 [1].

[Company Information and Report Statement](index=1&type=section&id=%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF%E4%B8%8E%E6%8A%A5%E5%91%8A%E5%A3%B0%E6%98%8E) [Report Statement and Company Profile](index=1&type=section&id=%E5%A0%B1%E5%91%8A%E8%81%B2%E6%98%8E%E8%88%87%E5%85%AC%E5%8F%B8%E6%A6%82%E6%B3%81) This announcement presents the unaudited interim results of Shengyuan Holdings Limited, an investment holding company, for the six months ended June 30, 2025 - This interim results announcement covers the unaudited consolidated results for the six months ended June 30, 2025, and has been reviewed by the external auditor and the Audit Committee[3](index=3&type=chunk)[4](index=4&type=chunk) - Shengyuan Holdings Limited is an investment holding company whose subsidiaries are principally engaged in securities brokerage and financial services, asset management, proprietary trading, and trading business[8](index=8&type=chunk) [Condensed Interim Consolidated Financial Information](index=2&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99) [Condensed Interim Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, revenue decreased by 16% to HKD 12,098 thousand, and profit for the period fell sharply to HKD 5,332 thousand Key Data from the Condensed Interim Consolidated Statement of Profit or Loss and Other Comprehensive Income | Item | June 30, 2025 (HKD in thousands) | June 30, 2024 (HKD in thousands) | | :--- | :--- | :--- | | Revenue | 12,098 | 14,410 | | Other gains and losses | 1,172 | 17,476 | | Profit before income tax | 6,984 | 30,384 | | Profit for the period | 5,332 | 29,803 | | Basic earnings per share (HK cents) | 0.60 | 3.38 | | Diluted earnings per share (HK cents) | 0.60 | 3.38 | - **Profit for the period decreased significantly by 82.1% year-over-year**, primarily due to a reduction in other gains and losses from HKD 17,476 thousand to HKD 1,172 thousand[5](index=5&type=chunk) [Condensed Interim Consolidated Statement of Financial Position](index=3&type=section&id=%E4%B8%AD%E6%9C%9F%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, 2025, the company's total assets less current liabilities increased to HKD 122,064 thousand, driven by a rise in net current assets Key Data from the Condensed Interim Consolidated Statement of Financial Position | Item | June 30, 2025 (HKD in thousands) | December 31, 2024 (HKD in thousands) | | :--- | :--- | :--- | | Non-current assets | 2,622 | 3,414 | | Current assets | 139,371 | 143,332 | | Current liabilities | 19,929 | 29,162 | | Net current assets | 119,442 | 114,170 | | Total assets less current liabilities | 122,064 | 117,584 | | Net assets | 121,919 | 116,586 | | Total equity | 121,919 | 116,586 | - **Trade and other receivables, deposits and prepayments increased significantly** from HKD 5,995 thousand as of December 31, 2024, to HKD 28,773 thousand as of June 30, 2025[6](index=6&type=chunk) - **Trade and other payables and accrued expenses decreased** from HKD 24,827 thousand as of December 31, 2024, to HKD 13,793 thousand as of June 30, 2025[6](index=6&type=chunk) [Notes to the Condensed Interim Consolidated Financial Information](index=5&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E9%99%84%E8%A8%BB) The notes detail the Group's accounting policies, segment information, and breakdowns of financial statement items, providing deeper context for the financial data [Accounting Policies and Basis of Preparation](index=5&type=section&id=2.%20%E6%8E%A1%E7%B4%8D%E6%96%B0%E8%A8%82%E6%88%96%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%E6%9C%83%E8%A8%88%E6%BA%96%E5%89%87) The Group has applied new and revised HKFRSs effective from January 1, 2025, with no material impact on the interim condensed consolidated financial information - The Group has adopted new and revised Hong Kong Financial Reporting Standards effective from January 1, 2025, with **no material impact** on the interim financial information[9](index=9&type=chunk) - The interim condensed consolidated financial information is prepared in accordance with HKAS 34 issued by the HKICPA and is consistent with the accounting policies of the previous annual financial statements[10](index=10&type=chunk) [Segment Information](index=6&type=section&id=4.%20%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group's operating segments include securities brokerage, asset management, and proprietary trading, with all external revenue from the first two segments - The Group's operating segments include securities brokerage and financial services, asset management services, and proprietary trading and trading business, with each segment managed independently[11](index=11&type=chunk)[12](index=12&type=chunk) - For the first half of 2025, total reportable segment results were **HKD 12,375 thousand**, a significant decrease from HKD 35,640 thousand in the same period of 2024[16](index=16&type=chunk)[17](index=17&type=chunk) Reportable Segment Revenue (For the six months ended June 30, 2025) | Segment | Revenue (HKD in thousands) | | :--- | :--- | | Securities brokerage and financial services | 7,427 | | Asset management services | 4,671 | | Proprietary trading | – | | Trading business | – | | **Total** | **12,098** | Reportable Segment Results (For the six months ended June 30, 2025) | Segment | Results (HKD in thousands) | | :--- | :--- | | Securities brokerage and financial services | 6,202 | | Asset management services | 4,098 | | Proprietary trading | 2,078 | | Trading business | (3) | | **Total** | **12,375** | [Revenue](index=9&type=section&id=5.%20%E6%94%B6%E7%9B%8A) Revenue from contracts with customers totaled HKD 12,098 thousand, primarily from corporate finance and fund management, with a notable drop in brokerage income - **Securities and futures brokerage income decreased sharply** from HKD 1,157 thousand in the prior period to HKD 164 thousand in the first half of 2025[17](index=17&type=chunk) - **Custody fee income decreased** from HKD 2,165 thousand in the prior period to HKD 1,180 thousand in the first half of 2025[17](index=17&type=chunk) Breakdown of Revenue from Contracts with Customers | Revenue Source | June 30, 2025 (HKD in thousands) | June 30, 2024 (HKD in thousands) | | :--- | :--- | :--- | | Securities and futures brokerage | 164 | 1,157 | | Corporate finance services income | 6,000 | 6,480 | | Consultancy fee income | 83 | 127 | | Custody fee | 1,180 | 2,165 | | Fund and portfolio management | 4,671 | 4,309 | | **Total** | **12,098** | **14,238** | [Other Gains and Losses](index=10&type=section&id=6.%20%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E5%8F%8A%E8%99%A7%E6%90%8D) Other gains and losses were HKD 1,172 thousand, a steep decline from HKD 17,476 thousand in the prior year, which included a large one-off gain - The first half of 2024 included a **one-off gain of HKD 17,326 thousand** from the disposal of debt investments related to the Atta Note and Kin Wo Note, with no such gain in 2025[18](index=18&type=chunk)[19](index=19&type=chunk)[20](index=20&type=chunk) Breakdown of Other Gains and Losses | Item | June 30, 2025 (HKD in thousands) | June 30, 2024 (HKD in thousands) | | :--- | :--- | :--- | | Net gain on disposal of debt investments at FVTPL | – | 17,326 | | Fair value change of investments held for trading | 1,155 | 15 | | Net foreign exchange gain | 17 | 135 | | **Total** | **1,172** | **17,476** | [Other Income](index=11&type=section&id=7.%20%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) Other income for the period was HKD 1,569 thousand, mainly from interest and dividend income, remaining stable compared to the prior year Breakdown of Other Income | Revenue Source | June 30, 2025 (HKD in thousands) | June 30, 2024 (HKD in thousands) | | :--- | :--- | :--- | | Bank and other interest income | 1,087 | 1,048 | | Dividend income | 482 | 451 | | Sundry income | – | 161 | | **Total** | **1,569** | **1,660** | [Profit Before Income Tax and Income Tax Expense](index=12&type=section&id=8.%20%E9%99%A4%E6%89%80%E5%BE%97%E7%A8%85%E5%89%8D%E6%BA%A2%E5%88%A9) Profit before tax was HKD 6,984 thousand, with major expenses including staff costs and auditor's remuneration, and an income tax expense of HKD 1,652 thousand - Hong Kong Profits Tax is calculated under a two-tiered system, with a rate of **8.25% on the first HKD 2 million** of profits and **16.5% on the remainder**[24](index=24&type=chunk) Items Deducted from Profit Before Income Tax | Item | June 30, 2025 (HKD in thousands) | June 30, 2024 (HKD in thousands) | | :--- | :--- | :--- | | Finance costs | 68 | 114 | | Auditor's remuneration | 200 | 340 | | Staff costs | 3,852 | 4,284 | Income Tax Expense | Item | June 30, 2025 (HKD in thousands) | June 30, 2024 (HKD in thousands) | | :--- | :--- | :--- | | Current tax - Hong Kong Profits Tax | 1,652 | 581 | [Dividends and Earnings Per Share](index=12&type=section&id=10.%20%E8%82%A1%E6%81%AF) The company did not declare any dividends for the period, and basic earnings per share fell to 0.60 HK cents due to lower profit - The company **did not propose or declare any dividends** for the six months ended June 30, 2025, and June 30, 2024[26](index=26&type=chunk) - **Basic earnings per share was 0.60 HK cents** (H1 2024: 3.38 HK cents), calculated based on a profit of HKD 5,332 thousand and 881,970,541 weighted average ordinary shares[28](index=28&type=chunk) - There were **no dilutive potential ordinary shares** during the period, so diluted earnings per share was the same as basic earnings per share[28](index=28&type=chunk) [Property, Plant and Equipment and Leases](index=13&type=section&id=12.%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) The Group did not acquire or dispose of any property, plant and equipment, while the carrying values of right-of-use assets and lease liabilities decreased - The Group **did not purchase or dispose of any property, plant and equipment** during the six months ended June 30, 2025[29](index=29&type=chunk) Lease-Related Assets and Liabilities | Item | June 30, 2025 (HKD in thousands) | December 31, 2024 (HKD in thousands) | | :--- | :--- | :--- | | Carrying amount of right-of-use assets | 1,730 | 2,471 | | Carrying amount of lease liabilities | 1,827 | 2,631 | Lease-Related Expenses | Item | June 30, 2025 (HKD in thousands) | June 30, 2024 (HKD in thousands) | | :--- | :--- | :--- | | Depreciation expense of right-of-use assets | 741 | 741 | | Interest on lease liabilities | 68 | 114 | | Expense relating to short-term leases | 68 | 71 | [Trade and Other Receivables, Deposits and Prepayments](index=14&type=section&id=14.%20%E6%87%89%E6%94%B6%E8%B3%AC%E6%AC%BE%E5%8F%8A%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) Total trade and other receivables increased sharply to HKD 29,283 thousand, driven by a significant rise in prepayments and receivables from corporate finance services - **Prepayments increased substantially** from HKD 615 thousand as of December 31, 2024, to HKD 19,134 thousand as of June 30, 2025[33](index=33&type=chunk) - **Trade receivables from corporate finance services increased** from HKD 200 thousand as of December 31, 2024, to HKD 3,283 thousand as of June 30, 2025[34](index=34&type=chunk) Breakdown of Trade and Other Receivables | Item | June 30, 2025 (HKD in thousands) | December 31, 2024 (HKD in thousands) | | :--- | :--- | :--- | | Trade receivables | 21,256 | 18,161 | | Less: Allowance for impairment loss recognised | (13,518) | (13,492) | | Prepayments | 19,134 | 615 | | Other receivables and deposits | 1,901 | 711 | | **Total** | **29,283** | **6,505** | [Investments Held for Trading](index=16&type=section&id=15.%20%E6%8C%81%E4%BD%9C%E8%B2%B7%E8%B3%A3%E7%94%A8%E9%80%94%E6%8A%95%E8%B3%87) As of June 30, 2025, investments held for trading consisted of listed equity securities valued at HKD 15,155 thousand, a slight increase from year-end 2024 Investments Held for Trading | Item | June 30, 2025 (HKD in thousands) | December 31, 2024 (HKD in thousands) | | :--- | :--- | :--- | | Listed equity securities | 15,155 | 14,000 | [Trade and Other Payables and Accrued Expenses](index=17&type=section&id=16.%20%E6%87%89%E4%BB%98%E8%B3%AC%E6%AC%BE%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85%E4%BB%A5%E5%8F%8A%E6%87%89%E8%A8%88%E8%B2%BB%E7%94%A8) Total trade and other payables decreased significantly to HKD 13,793 thousand, primarily due to a reduction in payables from securities and futures trading - **Trade payables from securities and futures contract trading (cash clients) decreased** from HKD 20,029 thousand as of December 31, 2024, to HKD 10,400 thousand as of June 30, 2025[36](index=36&type=chunk) Breakdown of Trade and Other Payables | Item | June 30, 2025 (HKD in thousands) | December 31, 2024 (HKD in thousands) | | :--- | :--- | :--- | | Trade payables from securities and futures contract trading | 12,709 | 22,336 | | Other payables | 144 | 793 | | Accrued expenses | 940 | 1,698 | | **Total** | **13,793** | **24,827** | [Share Capital](index=18&type=section&id=17.%20%E8%82%A1%E6%9C%AC) The company's share capital structure remained unchanged, with an issued and fully paid capital of HKD 88,197 thousand as of June 30, 2025 - All issued shares rank pari passu in all respects, including rights to dividends, voting, and return of capital[37](index=37&type=chunk) Share Capital Structure | Item | Number of Ordinary Shares | Nominal Value (HKD in thousands) | | :--- | :--- | :--- | | Authorised share capital | 6,000,000,000 | 600,000 | | Issued and fully paid share capital | 881,970,541 | 88,197 | [Events After the Reporting Period](index=18&type=section&id=18.%20%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) The Group had no significant events after the reporting period up to the date of the interim financial information's publication - There were **no significant events** relating to the Group after June 30, 2025, and up to the date of publication of the interim condensed consolidated financial information[38](index=38&type=chunk) [Business and Financial Review](index=19&type=section&id=%E6%A5%AD%E5%8B%99%E5%8F%8A%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) [Financial Summary](index=19&type=section&id=%E8%B2%A1%E5%8B%99%E6%A6%82%E8%A6%81) The Group's fee and commission income was approximately HKD 12.1 million, a 14.8% decrease, while profit for the period fell sharply to HKD 5.3 million - **Fee and commission income was approximately HKD 12.1 million**, a decrease of 14.8% year-over-year, mainly due to reduced income from securities brokerage and general custody services[40](index=40&type=chunk) - **Profit for the period was approximately HKD 5.3 million**, compared to HKD 29.8 million in the prior period, with the decrease mainly due to the absence of a one-off gain from the disposal of debt instruments in 2024[40](index=40&type=chunk) - **Basic and diluted earnings per share were both approximately 0.6 HK cents**, compared to 3.38 HK cents in the prior period[40](index=40&type=chunk) [Business Segment Operations](index=19&type=section&id=%E6%A5%AD%E5%8B%99%E5%88%86%E9%83%A8%E4%B9%8B%E7%B6%93%E7%87%9F) The Group provides securities brokerage, financial services, and asset management through its subsidiaries, with varied performance across segments during the period [Securities Brokerage and Financial Services](index=19&type=section&id=%E6%A5%AD%E5%8B%99%E5%88%86%E9%83%A8%E4%B9%8B%E7%B6%93%E7%87%9F%EF%BC%8D%E8%AD%89%E5%88%B8%E7%B6%93%E7%B4%80%E5%8F%8A%E9%87%91%E8%9E%8D%E6%9C%8D%E5%8B%99) Shengyuan Securities provides brokerage and financing services, with its client trust bank balances decreasing by 43.0% to HKD 12.7 million due to client withdrawals - Shengyuan Securities is licensed for Type 1 (dealing in securities), Type 2 (dealing in futures contracts), and Type 4 (advising on securities) regulated activities[41](index=41&type=chunk) - Shengyuan Capital is licensed for Type 6 (advising on corporate finance) regulated activities, providing corporate advisory services[42](index=42&type=chunk) - **Client trust bank balances at Shengyuan Securities were approximately HKD 12.7 million**, a 43.0% decrease from HKD 22.3 million as of December 31, 2024, mainly due to client fund withdrawals[42](index=42&type=chunk) [Asset Management Services](index=20&type=section&id=%E6%A5%AD%E5%8B%99%E5%88%86%E9%83%A8%E4%B9%8B%E7%B6%93%E7%87%9F%EF%BC%8D%E8%B3%87%E7%94%A2%E7%AE%A1%E7%90%86) Shengyuan Asset Management's assets under management decreased sharply to HKD 0.15 million following the termination of an overseas fund in July 2024 - Shengyuan Asset Management is licensed for Type 4 (advising on securities) and Type 9 (asset management) regulated activities[43](index=43&type=chunk) - **Total assets under management decreased sharply** from HKD 658.9 million as of June 30, 2024, to HKD 0.15 million as of June 30, 2025[44](index=44&type=chunk) - The decrease in AUM was primarily due to the **termination of an overseas fund in July 2024**[45](index=45&type=chunk) [Proprietary Trading](index=21&type=section&id=%E6%A5%AD%E5%8B%99%E5%88%86%E9%83%A8%E4%B9%8B%E7%B6%93%E7%87%9F%EF%BC%8D%E8%87%AA%E7%87%9F%E8%B2%B7%E8%B3%A3) The proprietary trading business, focused on the Hong Kong market, recorded a significantly lower profit of approximately HKD 2.1 million compared to the prior year - The proprietary trading business primarily invests in listed shares, corporate bonds, and private funds in the Hong Kong market[46](index=46&type=chunk) - **Proprietary trading profit was approximately HKD 2.1 million**, a significant decrease from HKD 19.7 million in the same period last year[46](index=46&type=chunk) [Prospects and Future Plans](index=21&type=section&id=%E5%89%8D%E6%99%AF%E5%8F%8A%E6%9C%AA%E4%BE%86%E8%A6%8F%E5%8A%83) The Group maintains a cautiously optimistic outlook, focusing on enhancing its fund management platform, expanding services, and exploring fintech opportunities - The Group maintains a **cautiously optimistic outlook** for the second half of 2025 and beyond, continuing to follow a prudent strategy and monitor macroeconomic developments[47](index=47&type=chunk) - It will leverage Hong Kong's position as a financial hub in the Greater Bay Area to **strengthen cross-border cooperation** and expand its securities brokerage, asset management, and corporate finance services[47](index=47&type=chunk) - The management team is committed to enhancing the fund management platform, expanding discretionary account services, and actively researching fintech areas such as **Web 3.0, stablecoins, and virtual currencies**[48](index=48&type=chunk) [Liquidity and Financial Resources](index=22&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) The Group's cash and cash equivalents stood at approximately HKD 25.8 million, with no borrowing debt and operations funded by internal cash flow - **Cash and cash equivalents were approximately HKD 25.8 million**, a decrease of about HKD 18.2 million from December 31, 2024[50](index=50&type=chunk) - **Net current assets stood at HKD 119.4 million**, with current assets of approximately HKD 139.4 million and current liabilities of approximately HKD 19.9 million[51](index=51&type=chunk) - The Group has **no borrowings or other debt**, making the gearing ratio not applicable, and funds its operations through internally generated cash flow[51](index=51&type=chunk) [Other Financial and Operational Information](index=23&type=section&id=%E5%85%B6%E4%BB%96%E8%B2%A1%E5%8B%99%E5%8F%8A%E9%81%8B%E7%87%9F%E4%BF%A1%E6%81%AF) The Group's transactions are mainly in HKD, USD, and RMB, with 19 employees, and no significant contingent liabilities or pledged assets - The Group's transactions are mainly denominated in HKD, USD, and RMB, and it **does not have a foreign currency hedging policy**, but management monitors exchange rate fluctuations[52](index=52&type=chunk) - The Group's capital structure, comprising issued share capital and reserves, remained unchanged during the period[53](index=53&type=chunk)[54](index=54&type=chunk) - As of June 30, 2025, the Group had **no significant contingent liabilities or pledged assets**[55](index=55&type=chunk)[57](index=57&type=chunk) - The Group employed **19 employees**, maintained competitive remuneration policies, and provided regular training, but granted no share options during the period[58](index=58&type=chunk)[59](index=59&type=chunk)[60](index=60&type=chunk) - Neither the company nor any of its subsidiaries purchased, redeemed, or sold any of the company's listed securities during the six months ended June 30, 2025[61](index=61&type=chunk) [Corporate Governance and Other Information](index=24&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) [Review of Interim Report](index=24&type=section&id=%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A%E4%B9%8B%E5%AF%A9%E9%96%B1) The interim report for the period has been reviewed by Beijing Xinghua in accordance with Hong Kong Standard on Review Engagements 2410 - This interim report has been reviewed by **Beijing Xinghua** in accordance with Hong Kong Standard on Review Engagements 2410[62](index=62&type=chunk) - The interim report will be published on the websites of the company and the Stock Exchange and dispatched to shareholders in due course[62](index=62&type=chunk) [Audit Committee](index=25&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Audit Committee, comprising three non-executive directors with relevant financial expertise, has reviewed the Group's accounting principles and interim results - The Audit Committee is composed of Ms. Huang Qin (Chairlady), Mr. Zhang Jinfan, and Mr. Huang Shuanggang, all of whom are non-executive directors with appropriate professional qualifications and financial experience[63](index=63&type=chunk) - The Audit Committee has reviewed the Group's accounting principles and practices, discussed internal control and financial reporting matters, and reviewed the interim results and unaudited financial statements for the period[63](index=63&type=chunk) [Corporate Governance](index=25&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) The company has complied with the Corporate Governance Code as set out in Appendix C1 of the Listing Rules throughout the reporting period - The company is committed to maintaining high standards of corporate governance and has complied with the Corporate Governance Code in Appendix C1 of the Listing Rules during the reporting period[64](index=64&type=chunk) [Model Code for Securities Transactions by Directors](index=25&type=section&id=%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The company has adopted the Model Code for securities transactions by directors and confirmed all directors' compliance during the period - The company has adopted the Model Code set out in Appendix C3 of the Listing Rules as the code of conduct for securities transactions by directors[65](index=65&type=chunk) - Following specific enquiry, all directors have confirmed their compliance with the required standards set out in the Model Code during the reporting period[65](index=65&type=chunk) [Board of Directors](index=25&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83) As of the announcement date, the Board of Directors consists of two executive, one non-executive, and three independent non-executive directors - The Board of Directors comprises executive directors Mr. Zhou Quan and Mr. Zhao Yun, non-executive director Mr. Huang Shuanggang, and independent non-executive directors Mr. Zhang Jinfan, Ms. Huang Qin, and Mr. Kwok Yiu Lai[66](index=66&type=chunk)[68](index=68&type=chunk)

Core Viewpoint - Shengyuan Holdings (00851) anticipates a significant decrease in net profit attributable to shareholders for the six months ending June 30, 2025, projected at approximately HKD 5.3 million, compared to HKD 29.8 million for the same period in 2024 [1] Financial Performance - The expected net profit for the upcoming period is approximately HKD 5.3 million [1] - The net profit for the same period in 2024 was approximately HKD 29.8 million [1] - The decrease in net profit is primarily attributed to the absence of non-recurring gains from the sale of debt instruments measured at fair value through profit or loss in 2024 [1]

Group 1 - The company expects to achieve a net profit attributable to shareholders of approximately HKD 5.3 million for the six months ending June 30, 2025, compared to approximately HKD 29.8 million for the same period in 2024 [1] - The decrease in net profit is primarily due to the absence of non-recurring gains from the sale of debt instruments measured at fair value through profit or loss, which were recognized in 2024 [1]

Group 1 - The company anticipates a net profit attributable to shareholders of approximately HKD 5.3 million for the six months ending June 30, 2025, a significant decrease from approximately HKD 29.8 million in the same period of 2024 [1] - The decline in net profit is primarily due to the absence of non-recurring gains from the sale of debt instruments measured at fair value, which were recognized in 2024 [1]