Core Viewpoint - The company reported a decline in revenue and profit for the six months ending June 30, 2025, primarily due to increased indirect costs associated with expansion efforts in Vietnam and the United States [1] Financial Performance - The company achieved revenue of 1.892 billion HKD, a decrease of 5.5% year-on-year [1] - Profit attributable to equity holders was 26.911 million HKD, down 56.66% compared to the previous year [1] - Earnings per share were 1.54 HKD cents [1] Gross Profit Analysis - Gross profit decreased by approximately 64.9 million HKD or about 12.8% to around 444 million HKD compared to the same period last year [1] - The reduction in gross profit was mainly due to new leasing agreements for factory expansions in Vietnam and the United States, which increased indirect costs during the reporting period [1]

[Performance Summary](index=1&type=section&id=%E8%A1%A8%E7%8F%BE%E6%91%98%E8%A6%81) [Interim Results Overview](index=1&type=section&id=%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE) Sinomax Group Limited announced its unaudited interim results for the six months ended June 30, 2025, with revenue, gross profit, and profit for the period all significantly decreasing compared to the same period last year, reflecting a challenging operating environment | Indicator | Six months ended June 30, 2025 (Thousand HKD) | Six months ended June 30, 2024 (Thousand HKD) | Change (Thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 1,892,127 | 2,002,775 | (110,648) | -5.5% | | Gross Profit | 442,443 | 507,290 | (64,847) | -12.8% | | Profit for the period | 30,415 | 74,205 | (43,790) | -59.0% | [Condensed Consolidated Financial Statements](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) [Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the Group's revenue decreased by 5.5% to HKD 1,892.1 Million, and gross profit decreased by 12.8% to HKD 442.4 Million; operating profit significantly decreased by 54.0% to HKD 53.3 Million, with profit for the period sharply declining by 59.0% to HKD 30.4 Million, and basic earnings per share falling to 1.54 HK cents | Indicator | 2025 (Thousand HKD) | 2024 (Thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,892,127 | 2,002,775 | -5.5% | | Cost of sales | (1,449,684) | (1,495,485) | -3.1% | | Gross Profit | 442,443 | 507,290 | -12.8% | | Selling and distribution expenses | (235,071) | (252,982) | -7.1% | | Administrative expenses | (119,227) | (124,161) | -4.0% | | Research and development costs | (39,175) | (40,910) | -4.2% | | Operating profit | 53,287 | 115,842 | -54.0% | | Finance costs | (24,749) | (23,096) | +7.1% | | Profit before income tax | 35,829 | 92,746 | -61.4% | | Income tax expense | (5,414) | (18,541) | -70.8% | | Profit for the period | 30,415 | 74,205 | -59.0% | | Profit for the period attributable to owners of the Company | 26,911 | 62,096 | -56.7% | | Basic earnings per share (HK cents) | 1.54 | 3.55 | -56.6% | [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the Group's total comprehensive income for the period was HKD 44.7 Million, a 17.5% decrease from HKD 54.2 Million in the prior year, positively impacted by exchange differences from overseas operations turning from loss to gain, partially offsetting the decline in profit for the period | Indicator | 2025 (Thousand HKD) | 2024 (Thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Profit for the period | 30,415 | 74,205 | -59.0% | | Exchange differences arising on translation of overseas operations | 14,289 | (19,976) | N/A (from loss to gain) | | Total comprehensive income for the period | 44,704 | 54,229 | -17.5% | | Total comprehensive income for the period attributable to owners of the Company | 22,569 | 43,269 | -47.9% | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, the Group's total assets increased by 6.7% to HKD 2,727.5 Million compared to December 31, 2024, with significant increases in current assets, particularly inventories, trade and other receivables, and cash and cash equivalents; total liabilities also rose, mainly due to increased unsecured bank borrowings | Indicator | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | **ASSETS** | | | | | Total non-current assets | 880,717 | 891,892 | -1.3% | | Total current assets | 1,846,790 | 1,665,094 | +10.9% | | Inventories | 509,082 | 476,548 | +6.8% | | Trade and other receivables | 830,982 | 777,273 | +6.9% | | Cash and cash equivalents | 348,320 | 262,436 | +32.7% | | **TOTAL ASSETS** | **2,727,507** | **2,556,986** | **+6.7%** | | **EQUITY** | | | | | Equity attributable to owners of the Company | 973,524 | 973,705 | -0.02% | | Total equity | 1,004,483 | 999,756 | +0.47% | | **LIABILITIES** | | | | | Total non-current liabilities | 229,331 | 262,334 | -12.6% | | Total current liabilities | 1,493,693 | 1,294,896 | +15.4% | | Unsecured bank borrowings | 581,098 | 401,102 | +44.9% | | **TOTAL LIABILITIES** | **1,723,024** | **1,557,230** | **+10.6%** | | **TOTAL EQUITY AND LIABILITIES** | **2,727,507** | **2,556,986** | **+6.7%** | [Notes to the Condensed Consolidated Interim Financial Information](index=6&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E9%99%84%E8%A8%BB) [1. Basis of Preparation](index=6&type=section&id=1.%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) The Group's condensed consolidated interim financial information is prepared in accordance with HKAS 34 'Interim Financial Reporting' and should be read in conjunction with the annual consolidated financial statements for the year ended December 31, 2024 - Financial information prepared in accordance with **HKAS 34**, an interim report, should be read in conjunction with the annual financial statements[8](index=8&type=chunk) [2. Accounting Policies](index=6&type=section&id=2.%20%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) The Group's accounting policies are consistent with the previous financial year, with initial application of certain amendments to standards issued by the HKICPA, including HKAS 21 and HKFRS 1 (Revised) 'Lack of Exchangeability', which are not expected to have a significant impact on the financial statements; several unadopted new standards and amendments have also been disclosed, with HKFRS 18 'Presentation and Disclosure in Financial Statements' expected to be mandatorily effective from January 1, 2027, and will have a widespread impact on presentation and disclosure - The Group first applied **HKAS 21** and **HKFRS 1 (Revised) 'Lack of Exchangeability'** in this period, with no significant impact expected[11](index=11&type=chunk) - **HKFRS 18 'Presentation and Disclosure in Financial Statements'** will be mandatory effective from January 1, 2027, and is expected to have a widespread impact on presentation and disclosure, with management currently assessing the specific effects[12](index=12&type=chunk)[13](index=13&type=chunk) [3. Revenue and Segment Information](index=8&type=section&id=3.%20%E6%94%B6%E5%85%A5%E5%8F%8A%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group primarily derives revenue from sales of health and home products and polyurethane foam, with total revenue decreasing by 5.5% year-on-year to HKD 1,892.1 Million during the reporting period; sales of health and home products slightly decreased, while polyurethane foam sales significantly reduced, and by geographical market, sales in Mainland China and North America both declined, while Europe and other overseas markets achieved 25.2% growth Disaggregation of Revenue from Contracts with Customers (by Product Category) | Product Category | 2025 (Thousand HKD) | 2024 (Thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Sales of health and home products | 1,324,940 | 1,341,486 | -1.2% | | Sales of polyurethane foam | 567,187 | 661,289 | -14.2% | | **Total** | **1,892,127** | **2,002,775** | **-5.5%** | Disaggregation of Revenue from Contracts with Customers (by Geographical Market) | Geographical Market | 2025 (Thousand HKD) | 2024 (Thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Mainland China market | 792,541 | 863,566 | -8.2% | | North American market | 692,022 | 813,581 | -14.9% | | European and other overseas markets | 407,564 | 325,628 | +25.2% | | **Total** | **1,892,127** | **2,002,775** | **-5.5%** | [4. Other Income](index=10&type=section&id=4.%20%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) During the reporting period, the Group's total other income significantly decreased by 47.8% to HKD 16.8 Million from HKD 32.2 Million in the prior year, mainly due to a substantial decline in the 'Others' category | Item | 2025 (Thousand HKD) | 2024 (Thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Interest income | 2,240 | 3,388 | -33.9% | | Government grants | 690 | 911 | -24.3% | | Rental income | 5,257 | 5,635 | -6.7% | | Others | 8,655 | 22,305 | -61.2% | | **Total** | **16,842** | **32,239** | **-47.8%** | [5. Finance Costs](index=10&type=section&id=5.%20%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) For the six months ended June 30, 2025, the Group's total finance costs increased by 7.1% to HKD 24.7 Million compared to the prior year, primarily due to higher interest on bank borrowings and lease liabilities | Item | 2025 (Thousand HKD) | 2024 (Thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Interest on bank borrowings | 13,759 | 12,585 | +9.3% | | Interest on lease liabilities | 9,513 | 7,720 | +23.2% | | Interest and fees on factoring of trade receivables | 1,477 | 2,791 | -47.1% | | **Total** | **24,749** | **23,096** | **+7.1%** | [6. Income Tax Expense](index=11&type=section&id=6.%20%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Income tax expense for the reporting period significantly decreased by 70.8% to HKD 5.4 Million, mainly due to a reduction in the estimated average annual tax rate from 20% to 15%, attributed to the underperformance of certain subsidiaries in Mainland China subject to higher statutory tax rates | Item | 2025 (Thousand HKD) | 2024 (Thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Current tax | 10,450 | 19,822 | -47.3% | | Deferred tax | (5,036) | (1,281) | +293.1% | | **Total** | **5,414** | **18,541** | **-70.8%** | - The estimated average annual tax rate for 2025 is **15%**, a decrease from **20%** in 2024, primarily due to underperformance of certain subsidiaries in Mainland China[20](index=20&type=chunk) [7. Profit for the Period](index=11&type=section&id=7.%20%E6%9C%9F%E5%85%A7%E6%BA%A2%E5%88%A9) Profit for the period was HKD 30.4 Million, a significant decrease from the prior year, with key cost items showing reductions in cost of inventories recognized as an expense, marketing and promotion expenses, and transportation expenses, while total staff costs, depreciation of property, plant and equipment, and depreciation of right-of-use assets increased | Item | 2025 (Thousand HKD) | 2024 (Thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Cost of inventories recognised as an expense | 1,104,100 | 1,161,730 | -5.0% | | Total staff costs | 312,243 | 302,983 | +3.1% | | Depreciation of property, plant and equipment | 43,138 | 35,751 | +20.7% | | Depreciation of right-of-use assets | 45,571 | 39,261 | +16.1% | | Marketing and promotion expenses | 62,210 | 82,443 | -24.6% | | Transportation expenses | 52,162 | 55,328 | -5.7% | [8. Earnings Per Share](index=12&type=section&id=8.%20%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) For the six months ended June 30, 2025, both basic and diluted earnings per share attributable to owners of the Company were 1.54 HK cents, a significant decrease of 56.6% from 3.55 HK cents in the prior year; diluted earnings per share were equal to basic earnings per share because the exercise price of unexercised share options was higher than the average share price for the period | Indicator | 2025 (HK cents) | 2024 (HK cents) | Change (%) | | :--- | :--- | :--- | :--- | | Basic earnings per share | 1.54 | 3.55 | -56.6% | | Diluted earnings per share | 1.54 | 3.55 | -56.6% | - Diluted earnings per share are equal to basic earnings per share, as the exercise price of unexercised share options is higher than the average share price for the period, resulting in no dilutive effect[22](index=22&type=chunk) [9. Dividends](index=12&type=section&id=9.%20%E8%82%A1%E6%81%AF) The Board resolved to declare an interim dividend of 0.5 HK cents per share for the six months ended June 30, 2025, totaling approximately HKD 8.75 Million, a decrease from 1.0 HK cents per share in the prior year | Item | 2025 (HK cents/share) | 2024 (HK cents/share) | Change (%) | | :--- | :--- | :--- | :--- | | Interim dividend | 0.5 | 1.0 | -50.0% | | Total dividend amount (Thousand HKD) | 8,750 | N/A | N/A | [10. Trade Receivables, Deposits, Prepayments and Other Receivables](index=13&type=section&id=10.%20%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85%E3%80%81%E6%8C%89%E9%87%91%E3%80%81%E9%A0%90%E4%BB%98%E6%AC%BE%E9%A0%85%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of June 30, 2025, net trade receivables increased by 11.4% to HKD 697.3 Million compared to December 31, 2024, with an increase in provision for credit losses; the ageing analysis of trade receivables shows that within 30 days and 31 to 60 days categories account for the largest proportions, and receivables aged 91 to 180 days significantly increased | Item | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Trade receivables, net | 697,318 | 626,007 | +11.4% | | Provision for credit losses | (25,458) | (23,362) | +9.0% | | Current portion | 830,982 | 777,273 | +6.9% | Ageing Analysis of Trade Receivables (Net) | Ageing | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Within 30 days | 327,188 | 299,538 | +9.2% | | 31 to 60 days | 202,000 | 182,853 | +10.5% | | 61 to 90 days | 94,610 | 96,867 | -2.3% | | 91 to 180 days | 67,949 | 32,678 | +108.0% | | 181 to 365 days | 532 | 14,071 | -96.2% | | Over 365 days | 5,039 | - | N/A | | **Total** | **697,318** | **626,007** | **+11.4%** | [11. Bills Receivable](index=14&type=section&id=11.%20%E6%87%89%E6%94%B6%E7%A5%A8%E6%93%9A) As of June 30, 2025, total bills receivable were HKD 112.6 Million, largely consistent with December 31, 2024; bills receivable aged 91 to 180 days increased, while those aged 181 to 365 days significantly decreased, and approximately HKD 92.2 Million of bills receivable were endorsed to settle trade payables Ageing Analysis of Bills Receivable | Ageing | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Within 30 days | 27,643 | 23,374 | +18.3% | | 31 to 60 days | 18,369 | 18,956 | -3.1% | | 61 to 90 days | 16,188 | 23,810 | -32.0% | | 91 to 180 days | 50,267 | 43,704 | +15.0% | | 181 to 365 days | 92 | 2,521 | -96.3% | | **Total** | **112,559** | **112,365** | **+0.2%** | - Approximately **HKD 92.2 Million** (December 31, 2024: HKD 95.0 Million) of bills receivable were endorsed to settle trade payables[27](index=27&type=chunk) [12. Trade and Other Payables](index=15&type=section&id=12.%20%E8%B2%BF%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2025, total trade and other payables increased by 2.5% to HKD 762.2 Million compared to December 31, 2024; accrued operating expenses and dividends payable significantly increased, while trade payables and accrued salaries decreased, and the ageing analysis of trade payables shows that the within 30 days category, while still the largest, decreased | Item | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Trade payables | 470,404 | 487,035 | -3.4% | | Accrued operating expenses | 130,633 | 90,303 | +44.7% | | Accrued salaries | 65,002 | 89,572 | -27.4% | | Dividends payable | 26,733 | - | N/A | | **Total trade and other payables** | **762,196** | **743,860** | **+2.5%** | | Current portion | 761,881 | 743,366 | +2.5% | Ageing Analysis of Trade Payables | Ageing | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Within 30 days | 275,696 | 302,254 | -8.7% | | 31 to 60 days | 113,793 | 96,598 | +17.8% | | 61 to 90 days | 28,139 | 38,806 | -27.5% | | 91 to 180 days | 45,627 | 39,894 | +14.4% | | Over 180 days | 7,149 | 9,483 | -24.6% | | **Total** | **470,404** | **487,035** | **-3.4%** | [13. Bills Payable](index=16&type=section&id=13.%20%E6%87%89%E4%BB%98%E7%A5%A8%E6%93%9A) As of June 30, 2025, total bills payable increased by 35.0% to HKD 40.1 Million compared to December 31, 2024, with significant increases in bills payable aged within 30 days and 91 to 180 days Ageing Analysis of Bills Payable | Ageing | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Within 30 days | 13,161 | 3,305 | +298.3% | | 31 to 60 days | - | 2,151 | -100.0% | | 61 to 90 days | 2,615 | - | N/A | | 91 to 180 days | 24,307 | 24,234 | +0.3% | | **Total** | **40,083** | **29,690** | **+35.0%** | [14. Unsecured Bank Borrowings](index=17&type=section&id=14.%20%E7%84%A1%E6%8A%B5%E6%8A%BC%E9%8A%80%E8%A1%8C%E5%80%9F%E6%AC%BE) As of June 30, 2025, total unsecured bank borrowings significantly increased by 44.9% to HKD 581.1 Million compared to December 31, 2024; the effective interest rate range for borrowings narrowed to 1.90% to 6.20% per annum from 2.80% to 6.43% per annum as of December 31, 2024 | Item | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Trade finance | 396,645 | 278,182 | +42.6% | | Revolving loans | 169,900 | 117,200 | +44.9% | | Term loans | 14,553 | 5,720 | +154.4% | | **Total** | **581,098** | **401,102** | **+44.9%** | - The effective interest rate range for bank borrowings is **1.90% to 6.20%** per annum (December 31, 2024: 2.80% to 6.43%)[32](index=32&type=chunk) - All bank borrowings bear interest at floating rates and are repayable within one year or on demand[32](index=32&type=chunk)[33](index=33&type=chunk) [15. Capital Commitments](index=17&type=section&id=15.%20%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94) As of June 30, 2025, capital expenditure contracted but not provided for by the Group for the acquisition of property, plant and equipment was HKD 7.8 Million, a significant decrease of 60.3% from December 31, 2024 | Item | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Capital expenditure contracted but not provided for | 7,796 | 19,610 | -60.3% | [16. Events After the Reporting Period](index=17&type=section&id=16.%20%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) Subsequent to the reporting period, on August 4, 2025, the Group further subscribed for additional shares in associate MDK Holdings ApS for EUR 5 Million (approximately HKD 45.9 Million), increasing its equity interest to 55%, making it a subsidiary of the Group; this acquisition will be consolidated into the Group's accounts from August 4, 2025 - On **August 4, 2025**, the Group increased its stake in European entity MDK Holdings ApS to **55%** for **EUR 5 Million** (approximately **HKD 45.9 Million**), making it a subsidiary[35](index=35&type=chunk) - The operating results and assets and liabilities of the acquired company will be consolidated into the Group's accounts from **August 4, 2025**[35](index=35&type=chunk) [Business Review](index=18&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) [Revenue by Operating Segment](index=18&type=section&id=%E6%8C%89%E7%B6%93%E7%87%9F%E5%88%86%E9%83%A8%E5%8A%83%E5%88%86%E7%9A%84%E6%94%B6%E5%85%A5) During the reporting period, total revenue decreased by 5.5% to HKD 1,892.1 Million; sales in Mainland China and North America markets decreased by 8.2% and 14.9% respectively, mainly due to weak economy, low consumer sentiment, intense price competition, and US tariff policies, while Europe and other overseas markets achieved 25.2% growth, primarily benefiting from increased sales to European customers | Geographical Market | 2025 (Thousand HKD) | 2024 (Thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Mainland China market | 792,541 | 863,566 | -8.2% | | North American market | 692,022 | 813,581 | -14.9% | | European and other overseas markets | 407,564 | 325,628 | +25.2% | | **Total** | **1,892,127** | **2,002,775** | **-5.5%** | - The decrease in Mainland China market sales is primarily due to the weak Chinese economy, low consumer sentiment, and intense price competition[37](index=37&type=chunk) - The decrease in North American market sales is primarily due to global trade volatility under US tariff policies, leading to increased supply chain uncertainty[37](index=37&type=chunk) [Gross Profit](index=19&type=section&id=%E6%AF%9B%E5%88%A9) During the reporting period, gross profit decreased by 12.8% to HKD 442.4 Million, primarily due to increased indirect costs from the Group's expanded business operations in Vietnam and the US, including new factory lease agreements | Indicator | 2025 (Thousand HKD) | 2024 (Thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Gross Profit | 442,443 | 507,290 | -12.8% | - The decrease in gross profit is mainly due to increased indirect costs from expanding business operations in Vietnam and the US, including new factory lease agreements[38](index=38&type=chunk) [Costs and Expenses](index=19&type=section&id=%E6%88%90%E6%9C%AC%E5%8F%8A%E9%96%8B%E6%94%AF) During the reporting period, selling and distribution expenses decreased by 7.1% to HKD 235.1 Million, mainly due to reduced marketing and advertising expenses; administrative expenses decreased by 4.0% to HKD 119.2 Million, primarily due to reduced staff costs | Item | 2025 (Thousand HKD) | 2024 (Thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Selling and distribution expenses | 235,071 | 252,982 | -7.1% | | Administrative expenses | 119,227 | 124,161 | -4.0% | - Selling and distribution expenses decreased primarily due to a reduction of approximately **HKD 20.2 Million** in marketing and advertising expenses[39](index=39&type=chunk) - Administrative expenses decreased primarily due to a reduction of approximately **HKD 2.8 Million** in staff costs[39](index=39&type=chunk) [Profit for the Period](index=19&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%85%A7%E6%BA%A2%E5%88%A9) Cumulatively, profit for the period significantly decreased by 59.0% to HKD 30.4 Million | Indicator | 2025 (Thousand HKD) | 2024 (Thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Profit for the period | 30,415 | 74,205 | -59.0% | [Liquidity, Financial and Capital Resources](index=20&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E3%80%81%E8%B2%A1%E5%8B%99%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E6%BA%90) As of June 30, 2025, the Group's net current assets were HKD 353.1 Million, a slight decrease from December 31, 2024; bank balances and cash significantly increased by 32.7% to HKD 348.3 Million, but net cash generated from operating activities substantially decreased; the Group's total bank facilities and utilized amounts both increased, while current ratio, quick ratio, and debt-to-equity ratio all deteriorated, and the gearing ratio significantly increased | Indicator | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Net current assets | 353,100 | 370,200 | -4.6% | | Bank balances and cash | 348,300 | 262,400 | +32.7% | | Net cash generated from operating activities (for the period) | 33,800 | 136,900 | -75.3% | - As of June 30, 2025, total bank facilities amounted to approximately **HKD 1,299.8 Million**, with approximately **HKD 621.2 Million** utilized (December 31, 2024: total approximately HKD 1,251.9 Million, utilized approximately HKD 430.8 Million)[42](index=42&type=chunk) - Capital expenditure for the period was approximately **HKD 46.2 Million**, primarily for purchasing plant and machinery, a decrease from HKD 65.8 Million as of December 31, 2024[43](index=43&type=chunk) Financial Ratios | Financial Ratio | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Current Ratio | 123.6% | 128.6% | -5.0pp | | Quick Ratio | 89.6% | 91.8% | -2.2pp | | Gearing Ratio | 57.9% | 40.1% | +17.8pp | | Debt to Equity Ratio | 23.2% | 13.9% | +9.3pp | - The Group primarily operates in Hong Kong, Mainland China, the US, and Vietnam, facing Renminbi and Vietnamese Dong foreign exchange risks, but no significant impact on operating results is expected, and no hedging instruments are currently used[45](index=45&type=chunk) - The Group has treasury policies to effectively control treasury operations, reduce borrowing costs, and maintain sufficient cash and bank facilities for daily operations and short-term funding needs[46](index=46&type=chunk) [Outlook](index=22&type=section&id=%E5%89%8D%E6%99%AF) Despite an unstable and challenging global economic environment, the Group anticipates continued volatility in the coming year; the Group will continue to explore high-growth potential businesses and has strengthened business relationships, leveraged operational synergies, and expanded its customer base by increasing its equity stake in European entity MDK Holdings ApS to 55%; looking ahead, the Group will deepen its expansion into European and American markets, with Mattress-in-a-box product sales expected to continue growing, bringing more sales and profit to the Group - The global economic environment is expected to remain volatile and challenging in the coming year[48](index=48&type=chunk) - The Group has increased its equity stake in European entity **MDK Holdings ApS** to **55%**, expecting to strengthen business relationships, leverage operational synergies, consolidate strategic cooperation, and expand its customer base[48](index=48&type=chunk)[49](index=49&type=chunk) - The Group will deepen its expansion into European and American markets, with **Mattress-in-a-box** product sales expected to continue growing, bringing more sales and profit to the Group[49](index=49&type=chunk) [Other Information](index=23&type=section&id=%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) [Future Plans for Material Investments or Capital Assets](index=23&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E6%88%96%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2%E7%9A%84%E6%97%A5%E5%BE%8C%E8%A8%88%E5%8A%83) Except for the investment in MDK Holdings ApS disclosed in the 'Outlook' section, the Group currently has no other plans for material investments or capital assets - Aside from the disclosed investment in MDK Holdings ApS, the Group has no other plans for material investments or capital assets[50](index=50&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=23&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) During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[51](index=51&type=chunk) [Interim Dividends](index=23&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board has resolved to declare an interim dividend of 0.5 HK cents per share for the reporting period, totaling approximately HKD 8.75 Million, to be paid on October 8, 2025, to shareholders whose names appear on the register of members on September 19, 2025 - The Board declared an interim dividend of **0.5 HK cents** per share (2024: 1.0 HK cents), totaling approximately **HKD 8.75 Million**[52](index=52&type=chunk) - The dividend will be paid on **October 8, 2025**, to shareholders whose names appear on the register of members on **September 19, 2025**[52](index=52&type=chunk) [Closure of Register of Members](index=23&type=section&id=%E6%9A%AB%E5%81%9C%E8%BE%A6%E7%90%86%E8%82%A1%E4%BB%BD%E9%81%8E%E6%88%B6%E7%99%BB%E8%A8%98) To determine eligibility for the interim dividend, the Company will suspend the registration of share transfers from September 16, 2025, to September 19, 2025, with the record date being September 19, 2025 - The register of members will be closed from **September 16 to September 19, 2025**, with the record date being **September 19, 2025**, to determine eligibility for the interim dividend[53](index=53&type=chunk) [Employees and Remuneration Policies](index=23&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June 30, 2025, the Group's total number of employees was 3,742, an increase from the prior year; total staff costs for the reporting period also increased to approximately HKD 312.2 Million, mainly due to the increased headcount; the Group provides competitive remuneration packages, benefits, and continuous training | Indicator | June 30, 2025 | June 30, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Total number of employees | 3,742 people | 3,208 people | +16.6% | | Total staff costs (Thousand HKD) | 312,243 | 302,983 | +3.1% | - The increase in staff costs is primarily due to an increase in the number of employees[54](index=54&type=chunk) - The Group provides competitive remuneration packages, benefits (such as housing, travel allowances, medical insurance), and continuous training[55](index=55&type=chunk) [Corporate Governance Practices](index=24&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%B8%B8%E8%A6%8F) The Company is committed to maintaining high standards of corporate governance and has adopted the Corporate Governance Code 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 reporting period, the Company complied with all code provisions - The Company has adopted and complied with the Corporate Governance Code set out in **Appendix C1 Part 2** of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[56](index=56&type=chunk) [Standard Code for Securities Transactions](index=24&type=section&id=%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 a code of conduct for directors' securities transactions no less exacting than the standard set out in Appendix C3 of the Listing Rules, and all directors confirmed compliance with the code during the reporting period - The Company has adopted and complied with a code of conduct for directors' securities transactions no less exacting than the standard set out in **Appendix C3** of the Listing Rules[57](index=57&type=chunk) [Review of Interim Results](index=24&type=section&id=%E5%AF%A9%E9%96%B1%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE) The Board's Audit Committee has reviewed the Group's interim financial information and recommended its adoption by the Board; PricewaterhouseCoopers, the Group's auditor, has reviewed the unaudited condensed consolidated interim financial information in accordance with Hong Kong Standard on Review Engagements 2410 - The Board's Audit Committee has reviewed the interim financial information and recommended its adoption by the Board[58](index=58&type=chunk) - PricewaterhouseCoopers, the Group's auditor, has reviewed the interim financial information in accordance with **Hong Kong Standard on Review Engagements 2410**[59](index=59&type=chunk) [Publication of Interim Results and 2025 Interim Report on HKEX and Company Website](index=25&type=section&id=%E6%96%BC%E8%81%AF%E4%BA%A4%E6%89%80%E5%8F%8A%E6%9C%AC%E5%85%AC%E5%8F%B8%E7%B6%B2%E7%AB%99%E5%88%8A%E7%99%BB%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%8F%8A2025%E5%B9%B4%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) This interim results announcement will be published on the website of The Stock Exchange of Hong Kong Limited and the Company's website, and the interim report containing all information required by the Listing Rules will be published in due course - This interim results announcement will be published on the website of The Stock Exchange of Hong Kong Limited (www.hkexnews.hk) and the Company's website (www.sinomax.com/group)[60](index=60&type=chunk) - The interim report, containing all information required by the Listing Rules, will be published on the HKEX and Company websites in due course[60](index=60&type=chunk) [Board of Directors](index=25&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83) The Company's Board of Directors includes Mr. Lam Chi Fan (Chairman) as a non-executive director, Mr. Cheung Tung (President), Mr. Chan Fung, Mr. Lam Kam Cheung (Chief Financial Officer and Company Secretary), and Ms. Lam Fei Man as executive directors, and Mr. Wong Chi Keung, Mr. Cheung Kit, and Dr. Cheung Wah Keung as independent non-executive directors - The Board of Directors comprises non-executive directors, executive directors, and independent non-executive directors, with **Mr. Lam Chi Fan** as Chairman, **Mr. Cheung Tung** as President, and **Mr. Lam Kam Cheung** as Chief Financial Officer and Company Secretary[61](index=61&type=chunk)

Core Viewpoint - 盛诺集团 (01418) has issued a profit warning, expecting a significant decline in profits due to global trade fluctuations caused by U.S. tariff policies [1] Financial Performance - The company anticipates a profit of no less than 30 million HKD for the six months ending June 30, 2025, compared to approximately 74.2 million HKD for the six months ending June 30, 2024 [1] Market Impact - The U.S. tariff policies have severely disrupted Sino-U.S. trade and affected global supply chains, leading to increased uncertainty in production and logistics, as well as operational interruptions [1]

Core Viewpoint - Shengnuo Group (01418) has issued a profit warning, expecting a significant decline in profits due to global trade fluctuations caused by U.S. tariff policies [1] Financial Performance - The company anticipates a profit of no less than 30 million HKD for the six months ending June 30, 2025, compared to approximately 74.2 million HKD for the six months ending June 30, 2024 [1] Market Impact - The U.S. tariff policies have severely disrupted Sino-U.S. trade and affected global supply chains, leading to increased uncertainty in production and logistics, as well as operational interruptions [1]

Core Viewpoint - Shengnuo Group (01418) has issued a profit warning, expecting a profit of no less than 30 million HKD for the six months ending June 30, 2025, compared to approximately 74.2 million HKD for the six months ending June 30, 2024, primarily due to the impact of U.S. tariff policies on global trade [1] Group 1 - Shengnuo Group's stock has dropped over 14%, currently down 14.52% at 0.265 HKD, with a trading volume of 1.2788 million HKD [1] - The profit warning indicates a significant decrease in expected earnings, highlighting a reduction in revenue due to global trade fluctuations caused by U.S. tariffs [1] - The tariffs have severely disrupted Sino-U.S. trade and affected global supply chains, leading to increased uncertainty in production and logistics, as well as operational interruptions [1]

Group 1 - The company, Shengnuo Group, plans to further acquire shares in MDK Holdings ApS through its wholly-owned subsidiary, Treasure Range Holdings Limited, for €5 million (approximately HKD 45.9 million) [2] - Upon completion of the acquisition, Shengnuo Group will hold 55% of MDK Holdings ApS, while M Logistical will hold 45%, leading to the consolidation of the target group's financial performance [2] - MDK Holdings ApS is a private limited company registered in Denmark, primarily engaged in the research, design, procurement, trade, quality assurance, and control of sleep products, furniture, and home decor, with a focus on Denmark, the EU, and the US [2] Group 2 - The board believes that this increase in stake will strengthen established business relationships, leverage operational synergies, solidify long-term strategic cooperation, and expand the customer base [2]

Core Viewpoint - The announcement details a subscription agreement where Treasure Range Holdings Limited and M Logistical will acquire additional shares in M DK Holdings ApS for €5 million (approximately HKD 45.9 million), increasing their ownership stakes to 55% and 45% respectively, which will allow for the consolidation of financial performance into the group accounts [1][3]. Group 1: Subscription Agreement Details - The subscription price for the shares is approximately €247.5 per share (around HKD 2,272.05) [1]. - Following the completion of the agreement, M DK Holdings ApS will issue 20,200 shares to the subscribers, representing 18.18% of the enlarged issued share capital of the target company [1]. Group 2: Target Company Overview - M Logistical is a private limited company registered under Dutch law, primarily engaged in financial holding activities [2]. - M DK Holdings ApS, registered in Denmark, has four subsidiaries and focuses on the research, design, procurement, trade, quality assurance, and control of sleep products, furniture, and home decor, with key markets in Denmark, the EU, and the USA [2]. Group 3: Strategic Rationale - The board believes that increasing the stake in the target company from 45% to 55% will strengthen existing business relationships and enhance operational synergies, thereby consolidating long-term strategic cooperation and expanding the customer base [3]. - The acquisition is expected to streamline decision-making processes and improve tailored service offerings, allowing the group to benefit from new business opportunities from the target company [3]. - The target company plans to expand its business into the US market by the end of 2024, creating new growth opportunities beyond its previous focus on the European market [3].

Group 1 - The company, Shengnuo Group, has entered into a subscription agreement to acquire additional shares in M DK Holdings ApS, increasing its stake from 45% to 55% [1][3] - The total consideration for the acquisition is €5 million, equivalent to approximately HKD 45.9 million, with the subscription price set at about €247.5 per share [1] - The target group primarily engages in the research, design, procurement, trade, and quality assurance of sleep products, furniture, and home decor, focusing on markets in Denmark, the EU, and the US [2][3] Group 2 - The acquisition is expected to enhance the existing business relationship and create operational synergies, thereby consolidating long-term strategic cooperation and expanding the customer base [3] - By obtaining controlling interest, the company anticipates streamlining decision-making processes and improving tailored service offerings for the target group [3] - The target group plans to expand its business into the US market by the end of 2024, which represents a significant growth opportunity beyond its previous focus on the European market [3]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不負責， 對其準確或完整性亦不發表任何聲明，並明確表示，概不對因本公佈全部或任何部 份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 Sinomax Group Limited 盛諾集團有限公 司 （根據開曼群島法例註冊成立的有限公司） （股份代號：1418） 須予披露交易 進一步認購目標公司之股份 及 上市規則第14A.60條項下之 持續關連交易 茲提述本公司日期為2024年10月14日之公佈，內容有關先前認購事項。 認購事項 於2025年8月4日（交 易 時 段 後），認 購 方（本 公 司 的 一 間 全 資 附 屬 公 司）、M Logistical及目標公司訂立認購協議，據此，目標公司同意進一步發行及認購方同 意進一步認購認購股份，代價為5百萬歐元（相當於約45.9百萬港元）。認購股份的 認購價約為每股認購股份247.5歐元（相當於約2,272.05港元）。完成後，目標公司將 分別由M Logistical及認購方擁有55%及45%權益，因此目標集團的財務業績將綜 合併入本集團賬目。 1 上市規則之涵義 由於認購事項與先前認購 ...

Group 1 - The company expects to achieve a profit of no less than 30 million HKD for the six months ending June 30, 2025, compared to a profit of approximately 74.2 million HKD for the six months ending June 30, 2024 [1] - The decrease in revenue is primarily due to global trade fluctuations caused by US tariff policies, which have severely disrupted Sino-US trade and impacted global supply chains, leading to increased uncertainty in production and logistics [1] - The Chinese market is facing a downturn due to weak economic conditions and low consumer sentiment, exacerbated by intense price competition within the market [1] Group 2 - Despite the challenges, the company is leveraging its global presence in China, the US, and Vietnam to flexibly adjust production capacity according to market demands [1] - The company will continue to closely monitor the situation and allocate resources to explore high-growth potential businesses while reviewing costs and implementing cost-cutting measures in production and logistics [1]