Core Insights - Xin Feng Group (01223) reported a mid-year performance for 2025, with revenue approximately HKD 148 million, representing a year-on-year decrease of 1.39% [1] - The loss attributable to shareholders was HKD 13.322 million, which narrowed by 53% year-on-year [1] - The loss per share was HKD 0.45 [1] Financial Performance - Revenue decreased to about HKD 148 million, down 1.39% compared to the previous year [1] - The company reported a loss of HKD 13.322 million, which is a significant improvement, narrowing by 53% from the prior year [1] - Earnings per share reflected a loss of HKD 0.45 [1] Contributing Factors - The reduction in loss was primarily due to an increase in other income and gains [1] - A decrease in the Hong Kong Interbank Offered Rate (HIBOR) led to reduced financing costs [1]

[Announcement Information and Financial Summary](index=1&type=section&id=I.%20公告信息与财务摘要) [Company Information and Announcement Overview](index=1&type=section&id=1.1%20公司信息与公告概览) Symphony Holdings Limited (Stock Code: 01223) released its unaudited interim results for the six months ended June 30, 2025, which have been reviewed by the company's Audit Committee - Symphony Holdings Limited (Stock Code: 01223) announced its unaudited interim results for the six months ended June 30, 2025[2](index=2&type=chunk)[3](index=3&type=chunk) - The report has been reviewed by the company's Audit Committee[3](index=3&type=chunk) [Financial Summary](index=1&type=section&id=1.2%20财务摘要) During the period, the Group's EBITDA slightly increased, losses narrowed significantly, total comprehensive income attributable to owners turned profitable, and net assets also grew Key Financial Indicators Comparison (For the six months ended June 30) | Metric | 2025 (in thousands HKD) | 2024 (in thousands HKD) | Change | | :--- | :--- | :--- | :--- | | Net Assets | 2,345,200 | 2,319,000 | +1.1% | [Condensed Consolidated Financial Statements](index=2&type=section&id=II.%20简明综合财务报表) [Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=2.1%20简明综合损益表) For the six months ended June 30, 2025, the Group's revenue slightly decreased, but losses for the period narrowed significantly year-on-year due to controlled cost of sales and finance costs, leading to a reduction in basic and diluted loss per share Key Data from Condensed Consolidated Statement of Profit or Loss (For the six months ended June 30) | Metric | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Basic and Diluted Loss Per Share | (0.45) HK cents | (0.95) HK cents | -52.6% | [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=2.2%20简明综合全面收益表) During the period, the Group's total comprehensive income improved significantly, turning from a negative value in the prior-year period to a positive one, mainly due to the positive impact of exchange differences on translation of foreign operations Key Data from Condensed Consolidated Statement of Comprehensive Income (For the six months ended June 30) | Metric | 2025 (in thousands HKD) | 2024 (in thousands HKD) | Change | | :--- | :--- | :--- | :--- | | Total comprehensive income for the period attributable to owners of the Company | 45,405 | (83,537) | Turnaround | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=2.3%20简明综合财务状况表) As of June 30, 2025, the Group's net assets and net current assets both increased, and the current ratio improved, indicating enhanced financial stability Key Data from Condensed Consolidated Statement of Financial Position (As of period end) | Metric | June 30, 2025 (in thousands HKD) | Dec 31, 2024 (in thousands HKD) | Change | | :--- | :--- | :--- | :--- | | Total Equity | 2,345,243 | 2,318,961 | +1.1% | [Notes to the Condensed Consolidated Financial Statements](index=6&type=section&id=III.%20简明综合财务报表附注) [General Information](index=6&type=section&id=3.1%20一般资料) Symphony Holdings Limited was incorporated in Bermuda in 1993, listed on the Hong Kong Stock Exchange in 1995, and its principal businesses include brand promotion, retail, and financial services, with the ultimate controlling party being the company's Chairman, Mr Cheng Tun Nei - Symphony Holdings Limited was incorporated in Bermuda on November 24, 1993, and has been listed on the Main Board of The Stock Exchange of Hong Kong Limited since March 1, 1995[9](index=9&type=chunk) - The ultimate controlling party is Mr Cheng Tun Nei, the Chairman and a director of the Company[9](index=9&type=chunk) - The Group's principal businesses include brand promotion (SKINS trademark, healthcare products, Japanese sake distribution), retail (outlet management, property investment), and financial services (securities brokerage, margin financing, money lending, financial advisory)[10](index=10&type=chunk)[12](index=12&type=chunk) [Basis of Preparation and Accounting Policies](index=6&type=section&id=3.2%20编制基础与会计政策) The interim condensed consolidated financial statements are prepared in accordance with HKAS 34 and the Listing Rules, follow the accounting policies of the 2024 annual financial statements, and changes in accounting policies this period had no material impact on the financial position [Basis of Preparation](index=6&type=section&id=3.2.1%20编制基础) The interim condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 issued by the HKICPA and the applicable disclosure requirements of the Hong Kong Stock Exchange Listing Rules, and are presented in Hong Kong dollars - The interim condensed consolidated financial statements have been prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[10](index=10&type=chunk) - The interim condensed consolidated financial statements are presented in Hong Kong dollars[11](index=11&type=chunk) [Changes in Accounting Policies](index=7&type=section&id=3.2.2%20会计政策变动) The Group has adopted amendments to Hong Kong Financial Reporting Standards effective January 1, 2025, but these amendments did not have any material impact on the financial performance and position for the current and prior periods - The Group has adopted amendments to Hong Kong Financial Reporting Standards which are effective for the financial year beginning on January 1, 2025[13](index=13&type=chunk) - The application of the amendments to HKFRSs in the current period has had **no material impact** on the Group's financial performance and position for the current and prior periods and/or on the disclosures set out in these interim condensed consolidated financial statements[13](index=13&type=chunk) [Segment Information](index=8&type=section&id=3.3%20分部资料) The Group's business is divided into three reportable segments—Brand Promotion, Retail, and Financial Services—in accordance with HKFRS 8, with information on revenue, results, assets, and liabilities regularly provided to the chief operating decision-maker [Segment Revenue and Results](index=8&type=section&id=3.3.1%20分部收入及业绩) The Retail segment is the main contributor to the Group's revenue and profit, while both the Brand Promotion and Financial Services segments recorded losses during the period, with the loss from Financial Services widening Segment Revenue and Results (For the six months ended June 30, 2025) | Segment | Revenue (in thousands HKD) | Results (in thousands HKD) | | :--- | :--- | :--- | | Consolidated Total | 148,229 | 6,951 | Segment Revenue and Results (For the six months ended June 30, 2024) | Segment | Revenue (in thousands HKD) | Results (in thousands HKD) | | :--- | :--- | :--- | | Consolidated Total | 150,324 | 12,173 | - Revenue from the Retail segment was primarily generated from the China market (**HK$94,825 thousand**), with the main product and service being commission income from franchise sales (**HK$94,468 thousand**)[20](index=20&type=chunk) - Revenue from the Financial Services segment was primarily generated from Hong Kong (**HK$5,596 thousand**), with the main product and service being interest income (**HK$5,596 thousand**)[21](index=21&type=chunk) [Segment Assets](index=12&type=section&id=3.3.2%20分部资产) The Retail segment holds the largest asset base in the Group, with total assets approaching HK$3 billion as of June 30, 2025, reflecting its core position in the Group's business Segment Assets (As of period end) | Metric | June 30, 2025 (in thousands HKD) | Dec 31, 2024 (in thousands HKD) | | :--- | :--- | :--- | | Total Consolidated Assets | 4,440,464 | 4,415,961 | [Segment Liabilities](index=13&type=section&id=3.3.3%20分部负债) The Retail segment has the largest liabilities, which decreased during the period, while liabilities for the Financial Services segment increased Segment Liabilities (As of period end) | Metric | June 30, 2025 (in thousands HKD) | Dec 31, 2024 (in thousands HKD) | | :--- | :--- | :--- | | Total Consolidated Liabilities | 2,095,221 | 2,097,000 | [Other Income and Gains](index=13&type=section&id=3.4%20其他收入及收益) Other income and gains for the period increased significantly by 42.8%, mainly driven by the reversal of tax provisions and an increase in reimbursement income from outlet operations, which offset the decrease in government grants and interest income Other Income and Gains (For the six months ended June 30) | Metric | 2025 (in thousands HKD) | 2024 (in thousands HKD) | Change | | :--- | :--- | :--- | :--- | | Total | 35,724 | 25,009 | +42.8% | [Finance Costs](index=13&type=section&id=3.5%20融资成本) Finance costs for the period decreased significantly by 18.9% year-on-year, primarily due to a reduction in interest expenses on bank loans Finance Costs (For the six months ended June 30) | Metric | 2025 (in thousands HKD) | 2024 (in thousands HKD) | Change | | :--- | :--- | :--- | :--- | | Total | 39,687 | 48,945 | -18.9% | [Loss Before Income Tax Expense](index=14&type=section&id=3.6%20除所得税开支前亏损) The loss before income tax expense narrowed substantially during the period, mainly due to improvements in items such as depreciation, amortization, cost of inventories, and interest income, despite an increase in the fair value loss on financial assets Factors Affecting Loss Before Income Tax Expense (For the six months ended June 30) | Metric | 2025 (in thousands HKD) | 2024 (in thousands HKD) | Change | | :--- | :--- | :--- | :--- | | Fair value loss on financial assets at FVTPL | 2,518 | 571 | +341.0% | [Income Tax Expense](index=15&type=section&id=3.7%20所得税开支) Income tax expense for the period increased by 50.8% year-on-year, primarily due to an increase in provisions for China Enterprise Income Tax, with minor changes in Hong Kong Profits Tax and overseas taxes Income Tax Expense (For the six months ended June 30) | Metric | 2025 (in thousands HKD) | 2024 (in thousands HKD) | Change | | :--- | :--- | :--- | :--- | | Total | 5,387 | 3,572 | +50.8% | - Hong Kong Profits Tax is calculated using a two-tiered system, with a rate of 8.25% on the first HK$2 million and 16.5% on the remainder[30](index=30&type=chunk) - The statutory rate for China Enterprise Income Tax is 25%, but rental income from subsidiaries engaged in property investment is subject to a 10% withholding tax rate[31](index=31&type=chunk) [Dividends](index=16&type=section&id=3.8%20股息) The Board does not recommend an interim dividend for the period; the company approved a final dividend of HK$0.005 per share for FY2024 on June 20, 2025, totaling approximately HK$14.871 million - The Board of Directors does not recommend the payment of any interim dividend for the period[34](index=34&type=chunk) - The company approved the payment of a final dividend for the financial year ended December 31, 2024, of **HK$0.005 per ordinary share**, totaling approximately **HK$14,871,000**, on June 20, 2025[34](index=34&type=chunk) [Loss Per Share](index=17&type=section&id=3.9%20每股亏损) The basic and diluted loss per share for the period was 0.45 HK cents, a significant narrowing from 0.95 HK cents in the same period last year, reflecting the Group's improved loss position Loss Per Share (For the six months ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Basic and Diluted Loss Per Share (HK cents) | (0.45) | (0.95) | - For the six months ended June 30, 2025 and 2024, the Company had no potential dilutive ordinary shares, therefore, diluted loss per share is the same as basic loss per share[35](index=35&type=chunk) [Trade and Other Receivables](index=18&type=section&id=3.10%20贸易及其他应收账款) As of June 30, 2025, total trade and other receivables increased slightly, but net trade receivables decreased, with a significant portion of trade receivables still aged over 90 days Trade and Other Receivables (As of period end) | Metric | June 30, 2025 (in thousands HKD) | Dec 31, 2024 (in thousands HKD) | | :--- | :--- | :--- | | Total Trade and Other Receivables | 132,343 | 127,231 | Ageing Analysis of Trade Receivables (Net of loss allowance) | Ageing | June 30, 2025 (in thousands HKD) | Dec 31, 2024 (in thousands HKD) | | :--- | :--- | :--- | | Over 90 days | 8,181 | 8,919 | [Advances to Margin Clients](index=19&type=section&id=3.11%20提供予保证金融资客户之垫款) As of June 30, 2025, advances to margin clients decreased slightly, are primarily secured by listed equity securities, and no loss allowance was recognized during the period Advances to Margin Clients (As of period end) | Metric | June 30, 2025 (in thousands HKD) | Dec 31, 2024 (in thousands HKD) | | :--- | :--- | :--- | | Total | 123,657 | 126,610 | - The advances are secured by listed equity securities, bear interest at rates ranging from HKD Prime Rate to Prime Rate plus 3% per annum, and are repayable on demand[38](index=38&type=chunk) - **No loss allowance was recognized** for the current and prior periods as there were no significant default events and the fair value of the collateral was sufficient to cover the loan balance[39](index=39&type=chunk) [Loans Receivable](index=19&type=section&id=3.12%20应收贷款) As of June 30, 2025, total loans receivable increased, primarily secured by mortgages over borrowers' properties and listed equity securities in Hong Kong, with annual interest rates ranging from 5% to 18% Loans Receivable (As of period end) | Metric | June 30, 2025 (in thousands HKD) | Dec 31, 2024 (in thousands HKD) | | :--- | :--- | :--- | | Net Value | 50,360 | 45,734 | - Loans receivable are secured by mortgages over borrowers' properties and listed equity securities in Hong Kong, bear interest at 5% to 18% per annum, and are repayable within one year or on demand[40](index=40&type=chunk) [Trade and Other Payables](index=20&type=section&id=3.13%20贸易及其他应付账款) As of June 30, 2025, total trade and other payables remained stable compared to the end of last year, with a decrease in trade payables from segments other than financial services Trade and Other Payables (As of period end) | Metric | June 30, 2025 (in thousands HKD) | Dec 31, 2024 (in thousands HKD) | | :--- | :--- | :--- | | Total Trade and Other Payables | 349,199 | 349,459 | Ageing Analysis of Trade Payables (Excluding Financial Services Segment) | Ageing | June 30, 2025 (in thousands HKD) | Dec 31, 2024 (in thousands HKD) | | :--- | :--- | :--- | | Over 90 days | 463 | 717 | [Management Discussion and Analysis](index=21&type=section&id=IV.%20管理层讨论与分析) [Business Review](index=21&type=section&id=4.1%20业务回顾) Facing a complex global economic environment, Symphony Holdings achieved strong performance in its retail business through strategic business layout and digital transformation, realized cross-domain synergy in its brand business, and maintained prudent operations with stable returns in its financial business [Retail Business](index=21&type=section&id=4.1.1%20零售业务) The core retail brand "SIMPLY OUTLETS" performed strongly in the Xiamen and Shenyang markets, achieving new sales highs and business format optimization, while driving digital transformation through AI market analysis and WeChat Channel live streaming, earning multiple industry recognitions - Xiamen "SIMPLY OUTLETS" achieved the "over 100 million in the first month" milestone for the fourth consecutive year, with upgraded international sports brand flagships setting new regional performance records[43](index=43&type=chunk) - Shenyang "SIMPLY OUTLETS" optimized its brand mix by introducing top-tier international brands, achieving breakthrough sales performance during holidays[43](index=43&type=chunk) - Digital transformation proved effective, with an AI market analysis system improving operational decision-making precision and WeChat Channel live streaming boosting member interaction and sales conversion rates[43](index=43&type=chunk) [Brand Promotion Business](index=21&type=section&id=4.1.2%20品牌推广业务) The brand business achieved cross-domain synergy, with SKINS optimizing its global strategic layout and deepening partnerships, healthcare business SBT expanding cross-border e-commerce channels, and Japanese sake brand "Hakuryu" strengthening high-end catering channels and overseas market promotion - Sport compression wear brand **SKINS** optimized its global strategy, focusing resources on core markets, restructuring its supply chain, and deepening collaborations with international athletes and top-tier events[44](index=44&type=chunk) - Healthcare business **SBT** successfully expanded its cross-border e-commerce channels, accelerating its penetration into the Southeast Asian market[44](index=44&type=chunk) - Japanese sake brand **"Hakuryu"** focused on strengthening high-end catering channels and exposure at industry exhibitions to enhance brand awareness as production capacity increased[45](index=45&type=chunk) [Financial Services Business](index=22&type=section&id=4.1.3%20金融服务业务) The financial business adhered to prudent operating principles, improved its risk management system, expanded its high-quality client base, and benefited from the capital market recovery, delivering performance in line with expectations and providing stable income support for the Group - The financial business adhered to prudent operating principles, expanding its high-quality client base while improving its risk management system[45](index=45&type=chunk) - Benefiting from the capital market recovery in the first half of the year, business performance was in line with expectations, providing stable income support for the Group[45](index=45&type=chunk) [Financial Review](index=22&type=section&id=4.2%20财务回顾) During the period, the Group's overall revenue slightly decreased, but through cost control and the reversal of tax provisions, both EBITDA and total comprehensive income increased, losses narrowed significantly, and the financial position improved markedly [Interim Results Overview](index=22&type=section&id=4.2.1%20中期业绩概览) During the period, the Group's overall revenue slightly decreased by 1.4%, but EBITDA grew by 2.2%, loss for the period narrowed by 52.2%, total comprehensive income attributable to owners of the Company turned profitable, and net assets increased by 1.1% Interim Results Overview (For the six months ended June 30) | Metric | 2025 (in thousands HKD) | 2024 (in thousands HKD) | Change | | :--- | :--- | :--- | :--- | | Total comprehensive income attributable to owners of the Company | 45,400 | (83,500) | Turnaround | - Net assets increased from approximately HK$2,319.0 million as of December 31, 2024, to approximately **HK$2,345.2 million** as of June 30, 2025[46](index=46&type=chunk) [Segmental Performance Analysis](index=22&type=section&id=4.2.2%20分部业绩分析) The Brand Promotion segment's revenue decreased by 13.2% and its loss widened, the Retail segment's revenue grew by 1.4% but its profit slightly declined, and the Financial Services segment's revenue fell by 7.2% as its loss widened Segment Revenue and Results (For the six months ended June 30) | Segment | Revenue 2025 (in thousands HKD) | Revenue 2024 (in thousands HKD) | Revenue Change | Results 2025 (in thousands HKD) | Results 2024 (in thousands HKD) | Results Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Financial Services | 8,300 | 8,900 | -7.2% | (1,900) | (400) | Loss Widened | - The gross profit margin of the Brand Promotion segment increased from approximately 57.7% in the same period of 2024 to approximately **62.5%** in the current period[47](index=47&type=chunk) [Cost of Sales and Gross Profit](index=23&type=section&id=4.2.3%20销售成本及毛利) Cost of sales for the period decreased by 23.0% year-on-year, leading to a slight increase in gross profit by 0.1% to approximately HK$140.7 million Cost of Sales and Gross Profit (For the six months ended June 30) | Metric | 2025 (in thousands HKD) | 2024 (in thousands HKD) | Change | | :--- | :--- | :--- | :--- | | Gross Profit | 140,700 | 140,500 | +0.1% | [Other Income and Gains](index=23&type=section&id=4.2.4%20其他收入及收益) Other income and gains for the period increased significantly by 42.8%, primarily driven by an increase in reimbursement income from outlets and government grants Other Income and Gains (For the six months ended June 30) | Metric | 2025 (in thousands HKD) | 2024 (in thousands HKD) | Change | | :--- | :--- | :--- | :--- | | Other income and gains | 35,700 | 25,000 | +42.8% | [Distribution and Selling Expenses](index=24&type=section&id=4.2.5%20分销及销售开支) Distribution and selling expenses for the period increased by 11.0% year-on-year, mainly due to higher advertising and promotion expenses and employee costs Distribution and Selling Expenses (For the six months ended June 30) | Metric | 2025 (in thousands HKD) | 2024 (in thousands HKD) | Change | | :--- | :--- | :--- | :--- | | Distribution and selling expenses | 29,700 | 26,800 | +11.0% | [Administrative Expenses](index=24&type=section&id=4.2.6%20行政开支) Administrative expenses for the period increased by 7.2% year-on-year, mainly influenced by factors such as employee costs, PRC tax surcharges, and professional fees Administrative Expenses (For the six months ended June 30) | Metric | 2025 (in thousands HKD) | 2024 (in thousands HKD) | Change | | :--- | :--- | :--- | :--- | | Administrative expenses | 69,400 | 64,800 | +7.2% | [Finance Costs](index=24&type=section&id=4.2.7%20融资成本) Finance costs for the period decreased by 18.9% year-on-year, primarily due to a reduction in interest expenses on bank loans Finance Costs (For the six months ended June 30) | Metric | 2025 (in thousands HKD) | 2024 (in thousands HKD) | Change | | :--- | :--- | :--- | :--- | | Finance costs | 39,700 | 48,900 | -18.9% | [Fair Value Loss on Financial Assets at FVTPL](index=24&type=section&id=4.2.8%20按公平价值列入损益的金融资产公平价值亏损) The fair value loss on financial assets at fair value through profit or loss for the period increased by approximately HK$1.9 million year-on-year to approximately HK$2.5 million Fair Value Loss on Financial Assets (For the six months ended June 30) | Metric | 2025 (in thousands HKD) | 2024 (in thousands HKD) | Change | | :--- | :--- | :--- | :--- | | Fair value loss | 2,500 | 600 | +316.7% | [Income Tax Expense](index=24&type=section&id=4.2.9%20所得税开支) Income tax expense for the period increased by 50.8% year-on-year to approximately HK$5.4 million Income Tax Expense (For the six months ended June 30) | Metric | 2025 (in thousands HKD) | 2024 (in thousands HKD) | Change | | :--- | :--- | :--- | :--- | | Income tax expense | 5,400 | 3,600 | +50.8% | [Loss for the Period Attributable to Owners of the Company](index=24&type=section&id=4.2.10%20本公司拥有人应占期内亏损) The loss for the period attributable to owners of the Company decreased significantly to approximately HK$13.3 million, mainly due to the combined effect of increased other income and gains and reduced finance costs Loss for the Period Attributable to Owners of the Company (For the six months ended June 30) | Metric | 2025 (in thousands HKD) | 2024 (in thousands HKD) | Change | | :--- | :--- | :--- | :--- | | Loss for the period attributable to owners of the Company | (13,300) | (28,400) | -53.2% | - The reduction in loss was mainly due to the combined effect of an increase in other income and gains and a decrease in finance costs resulting from the fall in HIBOR[57](index=57&type=chunk) [Market Information](index=25&type=section&id=4.3%20市场信息) During the period, revenue from China, Hong Kong, and other Asian countries accounted for 95.2% of total revenue, indicating the Group's business is highly concentrated in the Asian market - Revenue from China, Hong Kong, and other Asian countries accounted for approximately **95.2%** of total revenue (prior-year period: approx 94.7%)[58](index=58&type=chunk) - The remaining 4.8% (prior-year period: approx 5.3%) of revenue was derived from the United States and other countries[58](index=58&type=chunk) [Liquidity and Financial Resources](index=25&type=section&id=4.4%20流动资金及财务资源) As of June 30, 2025, the Group's bank balances and cash decreased slightly, but the current ratio improved significantly to 1.26, indicating enhanced liquidity, while the gearing ratio rose modestly Liquidity and Financial Resources (As of period end) | Metric | June 30, 2025 | Dec 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Current Ratio | 1.26 | 1.10 | +14.5% | - The Group's floating-rate bank loans carried annual interest rates ranging from approximately 1.79% to 6.81%, lower than the 1.92% to 7.83% in the same period last year[60](index=60&type=chunk) [Pledge of Assets](index=25&type=section&id=4.5%20资产质押) As of June 30, 2025, the Group had pledged various assets, including land, buildings, investment properties, right-of-use assets, and assets held for sale, as well as shares of certain subsidiaries and corporate/personal guarantees, to secure banking facilities - The Group has pledged leasehold land and buildings, outlet buildings, investment properties, right-of-use assets, and assets classified as held for sale with a total carrying amount of approximately **HK$3,363.8 million**[62](index=62&type=chunk) - In addition, shares of certain subsidiaries, corporate guarantees, and a personal guarantee provided by a director were also pledged to secure banking facilities[62](index=62&type=chunk) [Capital Commitments](index=26&type=section&id=4.6%20资本承担) As of June 30, 2025, the Group's capital commitments related to the construction of the Shenyang outlet building were approximately HK$6.1 million, a decrease from the end of the previous year Capital Commitments (As of period end) | Item | June 30, 2025 (in thousands HKD) | Dec 31, 2024 (in thousands HKD) | | :--- | :--- | :--- | | Construction costs for Shenyang outlet building | 6,100 | 8,100 | [Capital Expenditure](index=26&type=section&id=4.7%20资本开支) Capital expenditure for the period increased significantly to approximately HK$3.1 million, primarily for the purchase of property, plant and equipment, and the construction of the Shenyang outlet building Capital Expenditure (For the six months ended June 30) | Metric | 2025 (in thousands HKD) | 2024 (in thousands HKD) | Change | | :--- | :--- | :--- | :--- | | Capital Expenditure | 3,100 | 600 | +416.7% | [Contingent Liabilities](index=26&type=section&id=4.8%20或然负债) The Group has potential tax penalties arising from the overdue submission of PRC Enterprise Income Tax returns to the PRC tax authorities, but management considers the amount not to be material, and the vendor has undertaken to indemnify the related tax liabilities - The Group has potential tax penalties arising from the overdue submission of PRC Enterprise Income Tax returns to the PRC tax authorities[66](index=66&type=chunk) - Management considers the potential penalty amount not to be material, and the vendor has undertaken to indemnify any tax liabilities arising from the late submission of tax returns prior to the completion date of the acquisition[32](index=32&type=chunk) [Employees and Remuneration Policies](index=26&type=section&id=4.9%20雇员及薪酬政策) As of June 30, 2025, the Group's total number of employees decreased to 249, and employee costs (excluding directors' remuneration) decreased by 7.3% year-on-year; the Group offers competitive salaries, discretionary bonuses, share options, and other benefits Employees and Remuneration (For the six months ended June 30) | Metric | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Employee Costs (excluding directors' remuneration) (in thousands HKD) | 27,100 | 29,300 | -7.3% | - The Group offers competitive remuneration packages, discretionary bonuses, employee share options, insurance, medical schemes, and pension plans to eligible employees[67](index=67&type=chunk) [Treasury Policies](index=26&type=section&id=4.10%20库务政策) The Group is mainly exposed to foreign currency risk arising from monetary assets and liabilities denominated in Renminbi and US dollars; management monitors foreign exchange risk from time to time but did not enter into any financial derivatives for hedging purposes during the period - The Group is primarily exposed to foreign currency risk from monetary assets and liabilities denominated in Renminbi and US dollars arising from its sales and purchase activities[68](index=68&type=chunk) - During the period, the Group did not enter into any financial derivatives for hedging purposes, but management monitors foreign exchange risk from time to time and will take appropriate measures when there are significant exchange rate fluctuations[68](index=68&type=chunk) [Interim Dividend](index=26&type=section&id=4.11%20中期股息) The Board of Directors has resolved not to declare any interim dividend for the period - The Board of Directors has resolved not to declare any interim dividend for the period[69](index=69&type=chunk) [Material Acquisitions, Disposals, Significant Investments, and Future Plans for Significant Investments](index=27&type=section&id=4.12%20重大收购、出售、重大投资以及重大投资之未来计划) During the period, the company acquired a 15% equity interest in Shin Ito Brand Distribution Limited for US$0.6 million, making it a wholly-owned subsidiary, to gain full control and grow the "SKINS" business, thereby enhancing operational efficiency and profitability - On February 25, 2025, the Company acquired 600,000 shares (representing 15% of its entire issued shares) of Shin Ito Brand Distribution Limited for **US$0.6 million** (approximately HK$4.7 million)[70](index=70&type=chunk) - Upon completion of the acquisition, the Company holds 100% of the equity interest in Shin Ito, making it a wholly-owned subsidiary of the Company[70](index=70&type=chunk) - The Board believes the acquisition will enhance flexibility in Shin Ito's strategic direction and daily management, improve the Group's operational efficiency, and plans to grow the "SKINS" business through brand repositioning, product development, and distribution network upgrades[72](index=72&type=chunk) [Future Prospects](index=28&type=section&id=4.13%20未来前景) Looking ahead to the second half of the year, the Group will capitalize on China's economic policy dividends, with the retail segment focusing on consumption upgrades and digital transformation, and the brand business implementing differentiated development paths to address market changes and optimize operational efficiency from a solid foundation - The Group will seize policy dividends from the Chinese government, such as expanding domestic demand and optimizing the consumption environment, to deepen its strategic layout and drive high-quality development[75](index=75&type=chunk) - The retail segment will strengthen its "youthful and diversified" brand layout by introducing international luxury brands and emerging local designer brands, while deepening its omni-channel digital transformation[75](index=75&type=chunk) - The brand business will implement differentiated development paths: **SKINS** will advance the development of mass-market product lines, **SBT** will explore the health management market in the Greater Bay Area and Southeast Asia, and **"Hakuryu"** sake will accelerate promotion in key and North American markets[76](index=76&type=chunk) [Other Information](index=29&type=section&id=V.%20其他信息) [Purchase, Sale or Redemption of the Company's Listed Securities](index=29&type=section&id=5.1%20购买、出售或赎回本公司的已上市证券) During the period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - During the period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[77](index=77&type=chunk) [Events After the Reporting Period](index=29&type=section&id=5.2%20报告期后事项) As of the date of this announcement, no significant events affecting the Group have occurred after the reporting period - No significant events affecting the Group have occurred after June 30, 2025, and up to the date of this announcement[78](index=78&type=chunk) [Corporate Governance Practices](index=29&type=section&id=5.3%20企业管治常规) The Company has complied with the Corporate Governance Code as set out in Appendix C1, Part 2 of the Listing Rules during the period, with a deviation where the roles of Chairman and Chief Executive Officer are held by the same individual, and a past issue of an independent non-executive director serving for an extended period, which has since been resolved by appointing a new independent non-executive director - The Company has complied with the Corporate Governance Code as set out in Appendix C1, Part 2 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited during the period[79](index=79&type=chunk) - **Deviation**: The roles of Chairman and Chief Executive Officer are both held by Mr Cheng Tun Nei; the Board believes this arrangement provides strong and consistent leadership[80](index=80&type=chunk) - The issue of an independent non-executive director serving for an extended period has been resolved: following the appointment of Ms Ma Yin Fan on June 20, 2025, the Company has re-complied with Code Provision B.2.4(b) of the Corporate Governance Code[80](index=80&type=chunk) [Review of Interim Results](index=30&type=section&id=5.4%20审阅中期业绩) The Company's Audit Committee has reviewed with management the accounting policies and practices adopted by the Group and discussed financial reporting matters, including the interim results announcement and interim report - The Company's Audit Committee, comprising three independent non-executive directors, has reviewed with management the accounting policies and practices adopted by the Group[81](index=81&type=chunk) - The Audit Committee has discussed audit, internal control, and financial reporting matters, including the review of the Group's interim results announcement and interim report for the period[81](index=81&type=chunk) [Publication of Interim Results and Interim Report](index=30&type=section&id=5.5%20刊发中期业绩及中期报告) This announcement is published on the websites of the Stock Exchange and the Company, and the unaudited interim report for the period containing all information required by the Listing Rules will be dispatched to shareholders and made available on or before September 30, 2025 - This announcement is published on the website of the Stock Exchange at www.hkexnews.hk and on the Company's website at www.symphonyholdings.com[82](index=82&type=chunk) - The unaudited interim report for the period containing all information required by the Listing Rules will be dispatched to the Company's shareholders and made available on the above websites on or before September 30, 2025[82](index=82&type=chunk) [Board of Directors](index=30&type=section&id=5.6%20董事会成员) As of the date of this announcement, the Board of Directors consists of four executive directors and three independent non-executive directors, with Mr Cheng Tun Nei serving as Chairman and Chief Executive Officer - The Board of Directors comprises executive directors Mr Cheng Tun Nei (Chairman and Chief Executive Officer), Mr Chan Kar Lee, Mr Li Chang Ming, and Ms Fung Kim Wan[83](index=83&type=chunk) - The independent non-executive directors are Mr Shum Pui Kay, Mr Wah Wang Kei, and Ms Ma Yin Fan[83](index=83&type=chunk)

Core Viewpoint - New Fortune Group (01223.HK) will hold a board meeting on August 29, 2025, to review and approve the interim results for the six months ending June 30, 2025, and to declare an interim dividend if applicable [1] Summary by Relevant Categories - **Company Announcement** - The board meeting is scheduled for August 29, 2025 [1] - The meeting will focus on the interim results for the six months ending June 30, 2025 [1] - The company may declare an interim dividend during this meeting [1]

（股份代號: 01223） 香港交易及結算所有限公司與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份 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。 新灃集團有限公司* ( 於百慕達註冊成立的有限公司 ) 鄭盾尼先生 （主席及首席執行官） 陳嘉利先生 李長銘先生 馮劍雲女士 獨立非執行董事： 董事會會議召開日期 沈培基先生 華宏驥先生 馬燕芬女士 新灃集團有限公司（「本公司」）董事會（「董事會」）謹此宣佈，本公司將於二零 二五年八月二十九日（星期五）舉行董事會會議，以（其中包括）批准刊發本公司及 其附屬公司截至二零二五年六月三十日止六個月之中期業績，並考慮派發中期股息 （如有）。 * 僅供識別 承董事會命 新灃集團有限公司* 主席 鄭盾尼 香港， 二零二五年八月十九日 於本公告日期，本公司董事為： 執行董事： ...

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 公司名稱: 新灃集團有限公司（於百慕達註冊成立的有限公司） 呈交日期: 2025年8月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01223 | 說明 | 新灃集團有限公司 | | | | | | | | | 法定/註冊股份數目 | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 20,000,000,000 HKD | | 0.1 | HKD | | 2,000,000,000 | | 增加 / 減少 (-) | | | | | | HKD | | | | 本月底結存 | | | 20,000,000,000 HKD | | 0.1 | HKD | | 2,000,000,000 | 本月底法定/註冊股本總額： HKD 2,000,000,000 截至月份: 20 ...

Summary of Key Points Core Viewpoint - The latest shareholder equity disclosures for several companies, including OKURA HOLDINGS, Sheng Tong Technology, Runmai De-B, Xin Feng Group, and China Merchants China Fund, were made on July 30, 2025, indicating significant changes in shareholding structures and ownership percentages. Group 1: OKURA HOLDINGS (01655) - Ichikura Limited increased its holdings from 72 million shares to 375 million shares, raising its ownership percentage from 12.00% to 62.50% [2][3] - Other entities such as Schädler Claude and Karmad AG also reported similar increases in their holdings, confirming a substantial consolidation of ownership [3] Group 2: Sheng Tong Technology (N23040) - Yang Xiaoyuan reduced his holdings from 138,000 shares to 127,500 shares, resulting in a decrease in ownership percentage from 0.48% to 0.44% [2] Group 3: Runmai De-B (02297) - Huang Li reduced his holdings from 111 million shares to 99.025 million shares, leading to a decrease in ownership percentage from 7.95% to 7.07% [2] - Multiple entities, including Shenzhen Futian Tongchuang Weiye and others, also reported reductions in their holdings, indicating a trend of divestment [2] Group 4: Xin Feng Group (01223) - Ke Qinghui and Huang Lining both reduced their holdings from 470 million shares to 424 million shares, with ownership percentages dropping from 15.80% to 14.26% [2] Group 5: China Merchants China Fund (00133) - Various entities under China Merchants China Fund reported complete divestment from their holdings, with previous ownership percentages ranging from 8.25% to 9.26% [2][3] - The fund's significant reduction in holdings indicates a strategic shift or reallocation of investment focus [3]

Company Overview - New Feng Group (01223.HK) reported a closing price of HKD 1.03 per share, with a significant increase of 9.57% and a trading volume of 51.54 million shares, resulting in a turnover of HKD 39.53 million and a price fluctuation of 15.96% [1] - The company has achieved a total revenue of HKD 285 million for the year ending December 31, 2024, reflecting a year-on-year growth of 0.93%. However, it reported a net loss attributable to shareholders of HKD 133 million, which is an improvement with a year-on-year increase of 30.5%. The gross profit margin stands at 91.44%, and the debt-to-asset ratio is 47.49% [2] Industry Analysis - The professional retail industry has an average price-to-earnings (P/E) ratio of -4.52 times, with a median of -0.19 times. New Feng Group's P/E ratio is -19.53 times, ranking it 49th in the industry. Comparatively, other companies in the sector have P/E ratios ranging from 5.88 times to 7.13 times [3] - New Feng Group operates as a comprehensive enterprise involved in branding, retail, and financial services, holding a quality property portfolio primarily consisting of shopping malls and office buildings. The shopping malls adopt an 'Outlet + Community' model, strategically located in areas with strong consumer spending power, while the office buildings are situated in prime commercial locations [3]

Brand Performance - The "尚柏奧萊" brand achieved significant growth, particularly in Shenyang and Xiamen, with a high double-digit increase in customer traffic year-on-year[6]. - The compression clothing brand "SKINS" is undergoing a strategic rebranding to enhance product innovation and strengthen partnerships in response to intense market competition[7]. - The health product business, SBT, is expanding its market presence in Southeast Asia and strengthening partnerships with leading e-commerce platforms in mainland China[7]. - The Japanese sake business is steadily developing, with production lines expected to be operational in the second half of 2023[7]. Financial Performance - The group's total revenue increased by approximately 0.9% to about HKD 307.6 million, compared to HKD 304.7 million in 2023[13]. - Gross profit for the year was approximately HKD 281.2 million, an increase of about HKD 5.6 million or approximately 2.0% from HKD 275.6 million in the comparable year, resulting in a gross margin of approximately 91.4%[13]. - The loss attributable to the company's owners for the year was approximately HKD 143.1 million, a decrease of about 30.5% or approximately HKD 62.8 million compared to a loss of HKD 205.9 million in the comparable year[13]. - The retail segment reported revenue of approximately HKD 236.6 million, an increase of about 5.7% from HKD 223.9 million in 2023, with a reported segment loss of approximately HKD 21.8 million, down from HKD 81.4 million[16]. - Other income and gains increased by approximately 42.6% to about HKD 37.9 million from HKD 26.6 million in the comparable year, primarily due to a one-time government subsidy related to the Japanese sake business[19]. Cost Management - Distribution and selling expenses decreased by approximately 22.1% to about HKD 61.1 million from HKD 78.4 million in the comparable year, due to strict control over advertising and promotional expenses[20]. - Administrative expenses decreased by approximately 9.6% to about HKD 133.8 million from HKD 148.1 million in the comparable year, attributed to cost control measures[21]. Market Outlook - The company plans to leverage the "提振消費專項行動方案" policy to activate market potential and enhance promotional activities throughout the year[10]. - The company is cautiously optimistic about future growth, focusing on enhancing product competitiveness and user experience across its brands[10]. - The overall economic environment remains uncertain, but the company is confident in the support from the mainland government's policies to drive long-term growth[9]. Corporate Governance - The company has a strong management team with extensive experience in finance and business operations[54][55][58][59]. - The board of directors includes independent non-executive members with significant industry experience[51][52][58]. - The company is committed to corporate governance and compliance, as evidenced by the qualifications of its company secretary[60]. - The company has adopted a board diversity policy to enhance efficiency and corporate governance, considering various factors such as age, culture, and professional experience[134]. - The board has delegated daily management and operational responsibilities to the Chief Operating Officer and senior management, with significant autonomy granted[135]. Shareholder Information - The proposed final dividend for the year is HKD 0.005 per share, totaling approximately HKD 14,871,000, consistent with the previous year[65]. - The company's distributable reserves as of December 31, 2024, amount to HKD 1,319,805,000, down from HKD 1,412,536,000 in 2023[77]. - The company has not purchased, sold, or redeemed any of its listed securities during the year[79]. - The proposed final dividend is subject to approval at the annual general meeting scheduled for June 20, 2025[65]. Risk Management - Financial risks such as foreign currency risk, interest rate risk, credit risk, liquidity risk, and equity price risk are discussed in detail[64]. - The company emphasizes transparency, accountability, and effective risk management as key components of good corporate governance[128]. - The company has measures in place to mitigate potential money laundering risks associated with borrowers[170]. Employee and Management Information - Total employee count as of December 31, 2024, was 217, up from 206 in 2023, with employee costs (excluding director remuneration) around HKD 53.9 million, down from HKD 64.4 million in 2023[37]. - The company encourages continuous professional development for directors to keep them updated on business, legal, and regulatory changes[137]. - The company has arranged appropriate directors' and officers' liability insurance for its directors and senior management[96]. Sustainability and ESG - The company promotes environmental sustainability through initiatives such as water conservation and energy-saving practices in the office[176]. - The scope of the ESG report has expanded to include the healthcare business of ZhanTu Biotechnology, reflecting significant economic, environmental, and social impacts during the reporting period[185]. - The company conducted a stakeholder importance assessment to identify key sustainability issues through an independent third-party consultant and online surveys[200]. Strategic Acquisitions - The acquisition of 15% equity in a non-wholly owned subsidiary was agreed for USD 0.6 million (approximately HKD 4.7 million), expected to be completed by February 28, 2025[40]. - The acquisition is anticipated to enhance operational management efficiency and broaden revenue sources for the group, with significant revenue growth expected for the acquired subsidiary in the coming years[43].

Financial Performance - The group's total revenue increased from approximately HKD 304.7 million in the comparable year to about HKD 307.6 million in the current year[4]. - EBITDA for the current year was approximately HKD 45.6 million, compared to a loss of about HKD 16.5 million in the comparable year, indicating a turnaround to profit[4]. - The annual loss attributable to the company's owners decreased by approximately 30.5% to about HKD 143.1 million, down from HKD 205.9 million in 2023[4]. - Gross profit for the current year was HKD 281.2 million, compared to HKD 275.6 million in the previous year, reflecting a slight increase[5]. - Total comprehensive loss for the year amounted to HKD 205.5 million, compared to HKD 257.6 million in the previous year[6]. - The company reported a basic loss per share of HKD 4.81, compared to HKD 6.92 in the previous year[5]. - The group recorded a loss attributable to shareholders of approximately HKD 143.1 million, a reduction of about 30.5% or HKD 62.8 million compared to a loss of HKD 205.9 million in the comparable year[70]. Dividends and Shareholder Returns - The board recommended a final dividend of HKD 0.005 per ordinary share, unchanged from 2023[4]. - The company declared a final dividend of HKD 0.005 per ordinary share for the fiscal year ending December 31, 2024, consistent with the previous year[56]. - The annual general meeting is scheduled for June 20, 2025, during which shareholders will vote on the proposed dividend[96]. Assets and Liabilities - Non-current assets totaled HKD 3.14 billion, down from HKD 3.33 billion in 2023[7]. - Current assets decreased from HKD 1.55 billion in 2023 to HKD 1.27 billion in the current year[7]. - Current liabilities decreased from HKD 1,259,086,000 in 2023 to HKD 1,162,630,000 in 2024, a reduction of approximately 7.7%[8]. - Total non-current liabilities decreased from HKD 1,083,056,000 in 2023 to HKD 934,370,000 in 2024, representing a decline of about 13.8%[8]. - Net assets decreased from HKD 2,539,298,000 in 2023 to HKD 2,318,961,000 in 2024, reflecting a decline of about 8.7%[8]. - The company's equity attributable to owners decreased from HKD 2,531,009,000 in 2023 to HKD 2,313,016,000 in 2024, a reduction of approximately 8.6%[8]. Revenue Segmentation - Total revenue from external customers reached HKD 307,561,000, with retail contributing HKD 242,076,000[32]. - The company reported a total segment loss of HKD 65,376,000, with the retail segment loss at HKD 21,770,000[32]. - Franchise sales generated total revenue of HKD 1,074,392,000, with commission income from franchise sales amounting to HKD 178,794,000[33]. - Segment income from brand promotion was HKD 53,089,000, while financial services contributed HKD 17,915,000[32]. - The company reported a total of HKD 68,803,000 in revenue from other sources outside HKFRS 15, primarily from rental income and interest income[36]. Operational Efficiency - The company's operating expenses decreased to HKD 1,101,000 in 2024 from HKD 3,469,000 in 2023[54]. - Distribution and selling expenses decreased from approximately HKD 78.4 million in the comparable year to about HKD 61.1 million, a reduction of approximately 22.1% due to strict control over advertising and promotional expenses[76]. - Administrative expenses decreased from approximately HKD 148.1 million in the comparable year to about HKD 133.8 million, a reduction of approximately 9.6% due to cost control measures implemented during the year[77]. Market and Economic Conditions - The macroeconomic environment faced challenges, including a restructuring of the real estate market and weak consumer demand, impacting economic growth[66]. - The company maintained a diversified business layout and actively sought changes to ensure stable business development despite external challenges[66]. Future Outlook and Strategic Initiatives - The company remains cautiously optimistic about future development, supported by proactive government policies aimed at enhancing domestic demand and market confidence[99]. - In retail, the company aims to leverage the government's consumption stimulus policies to activate market potential and enhance customer experience through data analytics and AI[100]. - The brand business will focus on optimizing resources in key markets and enhancing product competitiveness and customer experience[101]. Corporate Governance and Compliance - The audit committee, consisting of three independent non-executive directors, has reviewed the annual performance[103]. - The financial statements have been reviewed by the company's auditor, but no audit assurance has been provided[104]. - The company has adhered to the corporate governance code and has confirmed compliance with the standards for securities trading by directors[110]. Acquisitions and Investments - The company has agreed to acquire 15% of the shares of New Ito Group for a price of $600,000, equivalent to approximately HKD 4,680,000[106]. - Following the acquisition, the company will hold 100% ownership of New Ito, enhancing operational management efficiency[107]. - The acquisition is expected to provide more business opportunities and broaden revenue sources for the company in the long term[108].

Financial Performance - The overall revenue for the first half of 2024 decreased by approximately 1.9% to about HKD 150.3 million, compared to HKD 153.2 million in the corresponding period of 2023[11] - The company recorded an unaudited consolidated loss attributable to owners of approximately HKD 28.4 million, an improvement from a loss of HKD 87.6 million in the corresponding period[11] - The retail segment's revenue increased by approximately 1.7% to about HKD 118.2 million, compared to HKD 116.2 million in the previous period, with a reported segment profit of approximately HKD 13.4 million[13] - The brand promotion segment's revenue decreased by approximately 14.5% to about HKD 23.2 million, with a reported segment loss of approximately HKD 0.8 million[12] - The financial services segment's revenue decreased by approximately 9.4% to about HKD 8.9 million, with a reported segment loss of approximately HKD 0.4 million[14] - The group recorded a loss attributable to the company's owners of approximately HKD 28.4 million, down from a loss of approximately HKD 87.6 million, primarily due to increased other income and cost control measures[19] - Gross profit for the same period was HKD 140,502, down from HKD 143,072, reflecting a decline of 1.8%[47] - The company reported a loss before tax of HKD 23,109, a substantial improvement from a loss of HKD 93,259 in the previous year, representing a decrease in losses of 75.2%[47] - The net loss for the period was HKD 26,681, significantly reduced from HKD 91,066, indicating a 70.7% improvement[49] - Total comprehensive loss for the period amounted to HKD 82,275, compared to HKD 195,883 in the previous year, reflecting a decrease of 58.0%[49] Revenue Sources - Revenue from China, Hong Kong, and other Asian countries accounted for approximately 94.7% of total revenue, compared to 94.4% in the corresponding period[20] - Total revenue from external customers reached HKD 150,324,000, with retail contributing HKD 118,174,000, representing a significant portion of the total[73] - Revenue from the Greater China region amounted to HKD 91,176,000, while Hong Kong contributed HKD 13,995,000[79] - The company reported a total of HKD 34,257,000 in revenue from other sources, including rental income and interest income[82] - The financial services segment generated HKD 9,844,000 in revenue, with a loss of HKD 9,584,000 reported[75] Cost Management - Distribution and selling expenses decreased from approximately HKD 38.0 million to about HKD 26.8 million, a reduction of approximately 29.5%[16] - Administrative expenses decreased from approximately HKD 75.0 million to about HKD 64.8 million, a reduction of approximately 13.6%[17] - The company incurred central administrative expenses of HKD 41,974,000, impacting overall profitability[75] Cash Flow and Liquidity - As of June 30, 2024, the group's bank balance and cash were approximately HKD 55.8 million, down from HKD 132.6 million as of December 31, 2023[21] - The current ratio as of June 30, 2024, was approximately 1.01, down from 1.23 as of December 31, 2023[23] - The cash generated from operating activities was HKD 75,687 thousand for the six months ended June 30, 2024, up from HKD 46,618 thousand in the same period of 2023, reflecting improved operational efficiency[58] - The company’s cash flow before changes in working capital was HKD 72,014 thousand for the six months ended June 30, 2024, compared to HKD 43,209 thousand for the same period in 2023, reflecting improved cash flow management[58] - Cash and cash equivalents decreased by HKD 75,849 thousand for the six months ended June 30, 2024, compared to a decrease of HKD 32,310 thousand for the same period in 2023[20] Assets and Liabilities - Non-current assets decreased to HKD 3,182,602 from HKD 3,333,544, a decline of 4.5%[51] - Current liabilities increased to HKD 1,459,724 from HKD 1,259,086, representing an increase of 15.9%[52] - The company's total assets less current liabilities stood at HKD 3,199,151, down from HKD 3,622,354, a decrease of 11.7%[52] - The total reported segment assets decreased from HKD 3,828,308 to HKD 3,635,910, reflecting a decline of approximately 5.0%[89] - Total liabilities as of June 30, 2024, were HKD 2,216,723, down from HKD 2,342,142 as of December 31, 2023, indicating a reduction of about 5.4%[91] Shareholder Information - As of June 30, 2024, Mr. Zheng holds 167,040,000 shares, representing approximately 43.58% of the total issued share capital of 1,296,230,000 shares[33] - Goldsilk Capital Limited, wholly owned by Mr. Zheng, directly holds 1,129,190,000 shares, accounting for approximately 37.97% of the total[36] - Mr. Ko holds 350,000,000 shares directly and has joint ownership of 120,000,000 shares with Ms. Wong, totaling 470,000,000 shares, which is approximately 15.80%[37] - The company did not purchase, sell, or redeem any of its listed securities during the reporting period[37] - The issued and fully paid ordinary shares remained at 2,974,225,000 shares as of June 30, 2024, unchanged from December 31, 2023[130] Corporate Governance - The company has complied with the corporate governance code, except for the separation of the roles of Chairman and CEO, which are held by Mr. Zheng[42] - The company is in the process of appointing a new independent non-executive director to comply with corporate governance requirements[43] - The audit committee, consisting of three independent non-executive directors, reviewed the group's accounting policies and financial reporting matters[45] Future Outlook - The company is cautiously optimistic about future development, focusing on enhancing core competitiveness and capturing market opportunities[30] - The company is actively exploring market opportunities for its Japanese sake brand, leveraging exhibitions and social media promotions[8] - The company is focusing on expanding its market presence in the Greater China region, which is expected to drive future revenue growth[79] Investments and Acquisitions - The group has no significant acquisitions, disposals, or major investment plans during the period[30] - The company has established two special purpose acquisition companies (SPACs) to raise significant capital for potential business acquisitions, although the second SPAC has not yet been formed[148] Miscellaneous - The company did not recognize any impairment provisions for margin clients during the period, as there were no significant defaults reported[114] - The company has not adopted any new accounting standards that would have a significant impact on its financial performance or position during the reporting period[67]