Core Insights - As of October 6, a total of 133 stocks reached their 52-week highs, indicating a strong market performance [1] Summary by Category 52-Week Highs - The top three stocks with the highest increase rates are: - 北大青鸟环宇 (08095) with a high rate of 67.47%, closing at 1.390 and reaching a peak of 1.390 [1] - 中华燃气 (08246) with a high rate of 50.00%, closing at 0.158 and peaking at 0.300 [1] - 叮当健康 (09886) with a high rate of 33.01%, closing at 1.250 and peaking at 1.370 [1] - Other notable stocks include: - 中播数据 (00471) at 29.81% [1] - 天瑞汽车内饰 (06162) at 29.41% [1] - K2 F&B (02108) at 28.79% [1] 52-Week Lows - The stocks that reached their 52-week lows include: - 佳明集团控股 (01271) with a low rate of -13.98%, closing at 0.980 and hitting a low of 0.800 [4] - 中漆集团 (01932) at -13.19% [4] - ＦＩ二南方日经 (07515) at -11.01% [4] - Additional stocks with significant declines include: - 卓珈控股 (01827) at -10.20% [4] - 超人智能 (08176) at -8.43% [4]

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年9月30日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: CPM Group Limited 中漆集團有限公司 呈交日期: 2025年10月2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) | 01932 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 8,000,000,000 | HKD | | 0.1 HKD | | 800,000,000 | | 增加 / 減少 (-) | | | 0 | | | HKD | | 0 | | 本月底結存 | | | 8,000,000,000 | HKD | | 0.1 HKD | | 800,000,000 | 本月底法定/註 ...

(Incorporated in the Cayman Islands with limited liability) （於開曼群島註冊成立之有限公司） As a Non-registered Shareholder, if you wish to receive the Corporate Communications in electronic form, you should liaise with your bank(s), broker(s), custodian(s), nominee(s) or HKSCC Nominees Limited through which your shares in the Company are held (collectively, the "Intermediaries") and provide your email address to your Intermediaries. Please contact your intermediary/nominee for the detailed procedure. If the Company does ...

(Incorporated in the Cayman Islands with limited liability) （於開曼群島註冊成立之有限公司） (Stock Code 股份代號：1932) NOTIFICATION LETTER 通知信函 22 September 2025 Dear Registered Shareholders, Notice of Publication of Interim Report 2025 (the "Current Corporate Communication") If you for any reason have difficulty in receiving email notification or gaining access to the Website Version of the Corporate Communications and would like to receive printed copies of the Current Corporate Communication and all future Corporate Commun ...

[Company Information](index=3&type=section&id=Company%20Information) This section provides an overview of the company's governance structure, including its board of directors, committees, and key professional service providers [Board of Directors and Committees](index=3&type=section&id=2.1%20Board%20of%20Directors%20and%20Committees) The company's board comprises executive, non-executive, and independent non-executive directors, with audit, remuneration, and nomination committees, maintaining a stable governance structure despite some board member changes - The Board of Directors includes Honorary Chairman Lam Ting Po, Executive Director and Chairman Tsui Ho Chuen (Managing Director), Executive Director Li Kwong Chung (Sales Director), Non-Executive Director Mak Chi Wah, and Independent Non-Executive Directors Choi Yu Man, Ha Jun, and Meng Jin Xia[5](index=5&type=chunk) - The Audit Committee is chaired by Choi Yu Man, the Remuneration Committee by Ha Jun, and the Nomination Committee by Ha Jun[5](index=5&type=chunk) [Professional Services and Contact Information](index=3&type=section&id=2.2%20Professional%20Services%20and%20Contact%20Information) The company engages Ernst & Young as its auditor and Tricor Investor Services Limited as its Hong Kong share registrar, with key banking relationships including HSBC and DBS Bank (Hong Kong) - The auditor is Ernst & Young, and the share registrars are Tricor Investor Services Limited (Hong Kong) and Conyers Trust Company (Cayman) Limited (Cayman Islands)[5](index=5&type=chunk) - Key bankers include The Hongkong and Shanghai Banking Corporation Limited, DBS Bank (Hong Kong) Limited, Nanyang Commercial Bank, Limited (Hong Kong), and HSBC Bank (China) Company Limited, Agricultural Bank of China Limited, Bank of China Limited, Shenzhen Rural Commercial Bank Corporation Limited (China)[5](index=5&type=chunk) - The principal place of business in Hong Kong is located at 31/F, North Point Centre, 338 Hennessy Road, Wanchai, Hong Kong, with the company website at www.cpmgroup.com.hk[6](index=6&type=chunk) [Condensed Consolidated Statement of Profit or Loss](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) This section presents the group's financial performance, highlighting revenue, gross profit, and net loss for the six months ended June 30, 2025 [Financial Performance Overview](index=4&type=section&id=3.1%20Financial%20Performance%20Overview) For the six months ended June 30, 2025, the group's revenue decreased by 28.3% to HK$106,338 thousand, gross profit fell by 27.7% to HK$41,974 thousand, and loss for the period expanded to HK$29,188 thousand, with basic and diluted loss per share at 2.92 HK cents Condensed Consolidated Statement of Profit or Loss Key Data (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 106,338 | 148,322 | -28.3% | | Cost of sales | (64,364) | (90,188) | -28.6% | | Gross profit | 41,974 | 58,134 | -27.7% | | Other income and net gains | 2,599 | 6,596 | -60.6% | | Selling and distribution expenses | (20,151) | (28,990) | -30.5% | | Administrative expenses | (34,132) | (37,684) | -9.5% | | Loss before tax | (27,022) | (13,434) | +101.1% | | Income tax expense | (2,166) | (1,201) | +80.3% | | Loss for the period | (29,188) | (14,635) | +99.4% | | Loss attributable to owners of the parent | (29,151) | (14,972) | +94.7% | | Basic and diluted loss per share | (2.92) HK cents | (1.50) HK cents | +94.7% | - Loss before tax significantly increased from **HK$13,434 thousand** in the same period of 2024 to **HK$27,022 thousand** in 2025, primarily due to decreased revenue and changes in fair value of investment properties[8](index=8&type=chunk) [Condensed Consolidated Statement of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) This section details the group's total comprehensive loss, including the impact of foreign currency translation differences for overseas operations [Analysis of Total Comprehensive Loss](index=5&type=section&id=4.1%20Analysis%20of%20Total%20Comprehensive%20Loss) For the six months ended June 30, 2025, the group's total comprehensive loss narrowed to HK$14,218 thousand from HK$27,801 thousand in the prior year, primarily due to a favorable shift in exchange differences on translating overseas operations from loss to gain Condensed Consolidated Statement of Comprehensive Income Key Data (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Year-on-year Change (HK$ thousand) | | :--- | :--- | :--- | :--- | | Loss for the period | (29,188) | (14,635) | (14,553) | | Exchange differences on translating overseas operations | 14,970 | (13,166) | 28,136 | | Total comprehensive loss for the period | (14,218) | (27,801) | 13,583 | | Total comprehensive loss attributable to owners of the parent | (14,304) | (28,037) | 13,733 | - Exchange differences on translating overseas operations shifted from a **loss of HK$13,166 thousand** in the same period of 2024 to a **gain of HK$14,970 thousand** in 2025, positively impacting total comprehensive loss[9](index=9&type=chunk) [Condensed Consolidated Statement of Financial Position](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This section outlines the group's financial position, detailing assets, liabilities, and equity as of June 30, 2025 [Asset and Liability Structure](index=6&type=section&id=5.1%20Asset%20and%20Liability%20Structure) As of June 30, 2025, the group's total assets less current liabilities decreased to HK$493,176 thousand from HK$533,737 thousand, and net assets decreased to HK$366,866 thousand from HK$381,063 thousand at the beginning of the period Condensed Consolidated Statement of Financial Position Key Data (As of June 30) | Indicator | 2025 June 30 (HK$ thousand) | 2024 Dec 31 (HK$ thousand) | Change (HK$ thousand) | | :--- | :--- | :--- | :--- | | Total non-current assets | 433,806 | 438,683 | (4,877) | | Total current assets | 283,163 | 365,313 | (82,150) | | Total current liabilities | 223,793 | 270,259 | (46,466) | | Net current assets | 59,370 | 95,054 | (35,684) | | Total assets less current liabilities | 493,176 | 533,737 | (40,561) | | Total non-current liabilities | 126,310 | 152,674 | (26,364) | | Net assets | 366,866 | 381,063 | (14,197) | | Total equity | 366,866 | 381,063 | (14,197) | - Total current assets decreased by **HK$82,150 thousand**, primarily due to a **HK$27,576 thousand** reduction in trade and bills receivables and a **HK$53,899 thousand** decrease in cash and cash equivalents[11](index=11&type=chunk) - Total non-current liabilities decreased by **HK$26,364 thousand**, mainly due to a significant **HK$73,970 thousand** reduction in loans from the parent company group, partially offset by a **HK$48,471 thousand** increase in interest-bearing bank borrowings[12](index=12&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This section details the changes in the group's equity attributable to owners of the parent for the six months ended June 30, 2025 [Details of Equity Changes](index=8&type=section&id=6.1%20Details%20of%20Equity%20Changes) For the six months ended June 30, 2025, total equity attributable to owners of the parent decreased from HK$377,088 thousand to HK$362,805 thousand, primarily due to a loss of HK$29,151 thousand for the period, partially offset by an increase in the exchange fluctuation reserve Changes in Equity Attributable to Owners of the Parent (For the six months ended June 30) | Equity Item | 2025 Jan 1 (HK$ thousand) | Loss for the period (HK$ thousand) | Exchange differences (HK$ thousand) | Share option arrangements (HK$ thousand) | Share option transfer (HK$ thousand) | 2025 June 30 (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Issued share capital | 100,000 | – | – | – | – | 100,000 | | Share premium account | 94,614 | – | – | – | – | 94,614 | | Merger reserve | (15,017) | – | – | – | – | (15,017) | | Contributions | 2,630 | – | – | – | – | 2,630 | | Contributed surplus | (28,616) | – | – | – | – | (28,616) | | Fair value reserve | (500) | – | – | – | – | (500) | | Revaluation reserve for leasehold land and buildings | 179,200 | – | – | – | – | 179,200 | | General reserve | 10,485 | – | – | – | – | 10,485 | | Exchange fluctuation reserve | (59,316) | – | 14,847 | – | – | (44,469) | | Share option reserve | 6,982 | – | – | 21 | (842) | 6,161 | | Reserve fund | 29,819 | – | – | – | – | 29,819 | | Retained profits | 56,807 | (29,151) | – | – | 842 | 28,498 | | **Total** | **377,088** | **(29,151)** | **14,847** | **21** | **(842)** | **362,805** | - The **loss for the period of HK$29,151 thousand** was the primary factor contributing to the decrease in equity, though a **gain of HK$14,847 thousand** from exchange differences on translating overseas operations partially offset this loss[13](index=13&type=chunk) - Share option reserve increased by **HK$21 thousand** due to equity-settled share option arrangements and **HK$842 thousand** was transferred to retained profits due to lapsed share options[13](index=13&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This section presents the group's cash flows from operating, investing, and financing activities for the six months ended June 30, 2025 [Operating Activities Cash Flow](index=9&type=section&id=7.1%20Operating%20Activities%20Cash%20Flow) For the six months ended June 30, 2025, net cash used in operating activities improved to HK$22,523 thousand from HK$31,763 thousand in the prior year, primarily due to a decrease in trade and bills receivables Operating Activities Cash Flow (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | | :--- | :--- | :--- | :--- | | Operating loss before working capital changes | (8,675) | (872) | (7,803) | | Decrease in trade and bills receivables | 29,689 | 28,546 | 1,143 | | Decrease in trade and bills payables | (32,528) | (50,950) | 18,422 | | Net cash used in operating activities | (22,523) | (31,763) | 9,240 | - A **decrease of HK$29,689 thousand** in trade and bills receivables positively impacted operating cash flow[16](index=16&type=chunk) - Interest paid decreased from **HK$5,925 thousand** in the same period of 2024 to **HK$3,935 thousand** in 2025[16](index=16&type=chunk) [Investing Activities Cash Flow](index=9&type=section&id=7.2%20Investing%20Activities%20Cash%20Flow) For the six months ended June 30, 2025, net cash from investing activities significantly decreased to HK$5,863 thousand from HK$61,854 thousand in the prior year, primarily due to a substantial reduction in the decrease of pledged time deposits Investing Activities Cash Flow (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | | :--- | :--- | :--- | :--- | | Purchase of property, plant and equipment items | (284) | (42) | (242) | | Interest received | 721 | 1,228 | (507) | | Decrease in pledged time deposits | 5,393 | 59,482 | (54,089) | | Net cash from investing activities | 5,863 | 61,854 | (55,991) | - The decrease in pledged time deposits fell from **HK$59,482 thousand** in the same period of 2024 to **HK$5,393 thousand** in 2025, which is the main reason for the significant reduction in investing activities cash flow[16](index=16&type=chunk) [Financing Activities Cash Flow](index=9&type=section&id=7.3%20Financing%20Activities%20Cash%20Flow) For the six months ended June 30, 2025, net cash used in financing activities increased to HK$40,966 thousand from HK$24,230 thousand in the prior year, primarily due to increased repayment of loans from the parent company group Financing Activities Cash Flow (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | | :--- | :--- | :--- | :--- | | New bank loans | 69,047 | 53,315 | 15,732 | | Repayment of bank loans | (33,242) | (59,733) | 26,491 | | Repayment of loans from parent company group | (75,000) | (49,601) | (25,399) | | Loans received from parent company group | – | 33,461 | (33,461) | | Net cash used in financing activities | (40,966) | (24,230) | (16,736) | - Repayment of loans from the parent company group increased from **HK$49,601 thousand** in the same period of 2024 to **HK$75,000 thousand** in 2025, with no new loans received from the parent company group during the period[16](index=16&type=chunk) [Changes in Cash and Cash Equivalents](index=10&type=section&id=7.4%20Changes%20in%20Cash%20and%20Cash%20Equivalents) For the six months ended June 30, 2025, cash and cash equivalents decreased by HK$57,626 thousand, with the period-end balance at HK$115,353 thousand, a significant decline from HK$169,252 thousand at the beginning of the period Changes in Cash and Cash Equivalents (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | | :--- | :--- | :--- | :--- | | Net increase/(decrease) in cash and cash equivalents | (57,626) | 5,861 | (63,487) | | Cash and cash equivalents at beginning of period | 169,252 | 143,792 | 25,460 | | Net effect of exchange rate changes | 3,727 | (2,770) | 6,497 | | Cash and cash equivalents at end of period | 115,353 | 146,883 | (31,530) | - Cash and cash equivalents at the end of the period amounted to **HK$115,353 thousand**, a **decrease of HK$31,530 thousand** compared to HK$146,883 thousand in the same period of 2024[17](index=17&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes on the basis of preparation, accounting policies, and specific financial statement items [Basis of Preparation and Accounting Policies](index=11&type=section&id=8.1%20Basis%20of%20Preparation%20and%20Accounting%20Policies) These interim financial statements are prepared in accordance with HKAS 34 and the Listing Rules, to be read in conjunction with the annual consolidated financial statements, with no significant impact from newly adopted HKFRSs this period - The unaudited condensed consolidated interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 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[18](index=18&type=chunk) - The amendments to HKAS 21 (Lack of Exchangeability) had no impact on the condensed consolidated interim financial statements, as the transaction and functional currencies of the group entities are all exchangeable[20](index=20&type=chunk) [Operating Segment Information](index=11&type=section&id=8.2%20Operating%20Segment%20Information) The group operates in two segments: paint products and property investment, with paint products seeing reduced revenue and performance, and property investment shifting from profit to loss, while Mainland China remains the primary source of revenue and assets - The group has two reportable operating segments: (a) the paint products segment, engaged in the manufacture and sale of paint and coating products; and (b) the property investment segment, investing in commercial and industrial properties with rental income potential[25](index=25&type=chunk) Operating Segment Revenue and Results (For the six months ended June 30) | Segment | 2025 Revenue (HK$ thousand) | 2024 Revenue (HK$ thousand) | Revenue Change (%) | 2025 Results (HK$ thousand) | 2024 Results (HK$ thousand) | Results Change (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Paint products | 96,893 | 137,044 | -29.3% | (21,578) | (19,296) | (2,282) | | Property investment | 9,445 | 11,278 | -16.3% | (186) | 12,871 | (13,057) | | **Total** | **106,338** | **148,322** | **-28.3%** | **(21,764)** | **(6,425)** | **(15,339)** | Operating Segment Assets and Liabilities (As of June 30) | Segment | 2025 Assets (HK$ thousand) | 2024 Assets (HK$ thousand) | Assets Change (HK$ thousand) | 2025 Liabilities (HK$ thousand) | 2024 Liabilities (HK$ thousand) | Liabilities Change (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Paint products | 408,654 | 482,223 | (73,569) | 308,967 | 381,312 | (72,345) | | Property investment | 305,284 | 308,391 | (3,107) | 39,691 | 39,477 | 214 | | **Total** | **713,938** | **790,614** | **(76,676)** | **348,658** | **420,789** | **(72,131)** | - For the six months ended June 30, 2025, revenue from Mainland China accounted for **89.4%** of total revenue, and **99.7%** of non-current assets were located in Mainland China[29](index=29&type=chunk) [Revenue, Other Income and Net Gains](index=16&type=section&id=8.3%20Revenue%2C%20Other%20Income%20and%20Net%20Gains) Total revenue for the period was HK$106,338 thousand, with paint and coating product sales contributing HK$96,893 thousand and rental income HK$9,445 thousand, while other income and net gains significantly decreased by 60.6% year-on-year Revenue Composition (For the six months ended June 30) | Revenue Source | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Sales of paint products | 96,893 | 137,044 | -29.3% | | Gross rental income from investment properties | 9,445 | 11,278 | -16.3% | | **Total Revenue** | **106,338** | **148,322** | **-28.3%** | Other Income and Net Gains (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Bank interest income | 721 | 1,228 | -41.3% | | Net fair value gain on investment properties | – | 3,195 | -100.0% | | Government grants | 40 | 204 | -80.4% | | Government subsidies | 342 | 408 | -16.2% | | **Total** | **2,599** | **6,596** | **-60.6%** | [Finance Costs](index=17&type=section&id=8.4%20Finance%20Costs) For the six months ended June 30, 2025, total finance costs decreased by 32.2% to HK$3,992 thousand from HK$5,885 thousand in the prior year, primarily due to reduced interest on bank and other borrowings Finance Costs (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Interest on bank and other borrowings | 3,849 | 5,719 | -32.7% | | Interest expense on lease liabilities | 143 | 166 | -13.9% | | **Total** | **3,992** | **5,885** | **-32.2%** | [Components of Loss Before Tax](index=17&type=section&id=8.5%20Components%20of%20Loss%20Before%20Tax) Loss before tax was primarily impacted by cost of sales, depreciation, fair value loss on investment properties, and staff severance costs, with investment properties recording a fair value loss of HK$8,363 thousand this period, compared to a gain in the prior year Key Components of Loss Before Tax (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | | :--- | :--- | :--- | :--- | | Cost of inventories sold | 64,364 | 90,188 | (25,824) | | Depreciation of property, plant and equipment | 5,876 | 7,533 | (1,657) | | Net fair value loss/(gain) on investment properties | 8,363 | (3,195) | 11,558 | | Net impairment provision/(reversal of provision) for trade and bills receivables | (928) | 956 | (1,884) | | Staff severance costs | 1,128 | 600 | 528 | - Fair value of investment properties shifted from a **gain of HK$3,195 thousand** in the same period of 2024 to a **loss of HK$8,363 thousand** in 2025, significantly impacting loss before tax[38](index=38&type=chunk) - Impairment provision for trade and bills receivables changed from **HK$956 thousand** in the same period of 2024 to a **reversal of HK$928 thousand** in 2025, improving operating expenses[38](index=38&type=chunk) [Income Tax](index=17&type=section&id=8.6%20Income%20Tax) The group had no assessable profits in Hong Kong, while Mainland China subsidiaries are subject to a 25% corporate income tax rate, with high-tech enterprises enjoying a preferential 15% rate - The group did not generate any assessable profits in Hong Kong during the period, thus no provision for Hong Kong profits tax was made[40](index=40&type=chunk) - Mainland China subsidiaries are subject to a standard corporate income tax rate of **25%**, while those qualified as high-tech enterprises apply a lower rate of **15%**[40](index=40&type=chunk) [Loss Per Share and Dividends](index=18&type=section&id=8.7%20Loss%20Per%20Share%20and%20Dividends) For the six months ended June 30, 2025, basic and diluted loss per share was 2.92 HK cents, and the Board resolved not to declare an interim dividend - Loss for the period attributable to ordinary equity holders of the parent was **HK$29,151 thousand**, resulting in a basic and diluted loss per share of **2.92 HK cents**[41](index=41&type=chunk) - No adjustment for dilution was made to the basic loss per share amount as the outstanding share options had an anti-dilutive effect on the basic loss per share amount[41](index=41&type=chunk) - The directors resolved not to declare an interim dividend for the six months ended June 30, 2025[42](index=42&type=chunk) [Property, Plant and Equipment and Investment Properties](index=18&type=section&id=8.8%20Property%2C%20Plant%20and%20Equipment%20and%20Investment%20Properties) Property, plant and equipment acquisitions totaled HK$284 thousand this period; investment properties valuation slightly increased to HK$296,124 thousand but recorded a fair value loss of HK$8,363 thousand, primarily influenced by unobservable inputs like market rents and capitalization rates - For the six months ended June 30, 2025, the group acquired property, plant and equipment items at a cost of **HK$284 thousand**, a significant increase from HK$42 thousand in the same period of 2024[43](index=43&type=chunk) - Investment properties were revalued at **HK$296,124 thousand** as of June 30, 2025, a slight increase from HK$295,283 thousand as of December 31, 2024[44](index=44&type=chunk) - The fair value loss on investment properties was **HK$8,363 thousand**, primarily valued using the income capitalization approach, with key unobservable inputs including prevailing market rents (RMB7 to RMB52 per sq. meter/month) and capitalization rates (5.1% to 6.0%)[44](index=44&type=chunk)[47](index=47&type=chunk)[49](index=49&type=chunk) [Trade and Bills Receivables and Payables](index=20&type=section&id=8.9%20Trade%20and%20Bills%20Receivables%20and%20Payables) As of June 30, 2025, total trade and bills receivables were HK$76,052 thousand, with HK$30,552 thousand over six months, while total trade and bills payables were HK$96,124 thousand, with HK$41,037 thousand over six months Ageing Analysis of Trade and Bills Receivables (As of June 30) | Ageing | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | | :--- | :--- | :--- | :--- | | Within 3 months | 37,069 | 55,670 | (18,601) | | Over 3 months but within 6 months | 8,431 | 7,511 | 920 | | Over 6 months | 30,552 | 40,447 | (9,895) | | **Total** | **76,052** | **103,628** | **(27,576)** | Ageing Analysis of Trade and Bills Payables (As of June 30) | Ageing | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | | :--- | :--- | :--- | :--- | | Within 3 months | 34,946 | 49,975 | (15,029) | | Over 3 months but within 6 months | 20,141 | 34,389 | (14,248) | | Over 6 months | 41,037 | 41,073 | (36) | | **Total** | **96,124** | **125,437** | **(29,313)** | - Of the trade and bills payables, **HK$57,661 thousand** was secured by time deposits of **HK$17,509 thousand**[52](index=52&type=chunk) [Share Option Scheme](index=21&type=section&id=8.10%20Share%20Option%20Scheme) The company adopted a share option scheme in 2020 to incentivize employees; as of June 30, 2025, 60,000,000 share options remained unexercised, representing 6% of issued shares, with 10,000,000 options lapsing due to a director's resignation during the period - The share option scheme was adopted on June 4, 2020, aiming to attract and retain employees and other eligible participants of the group[53](index=53&type=chunk) - As of June 30, 2025, the company had **60,000,000** outstanding share options, a decrease from 70,000,000 as of December 31, 2024, primarily due to the lapse of **10,000,000** options upon a director's resignation[59](index=59&type=chunk)[60](index=60&type=chunk) - Net share option expense recognized during the period was approximately **HK$21 thousand**, a significant decrease from HK$209 thousand in the same period of 2024[59](index=59&type=chunk) [Capital Commitments and Related Party Transactions](index=23&type=section&id=8.11%20Capital%20Commitments%20and%20Related%20Party%20Transactions) As of June 30, 2025, the group's contracted but unprovided capital commitments amounted to HK$1,279 thousand, with related party transactions primarily involving lease payments, pledge fees, and interest expenses paid to the parent company group Capital Commitments (As of June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Contracted but not provided for: construction and purchase of property, plant and equipment items | 1,279 | 1,222 | Related Party Transactions (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Lease payments to parent company group | 1,016 | 1,077 | | Pledge fees paid to parent company group | 273 | 273 | | Interest expenses paid to parent company group | 2,026 | 3,135 | | **Total** | **3,315** | **4,485** | - Total remuneration for key management personnel was **HK$4,230 thousand**, a decrease from HK$4,619 thousand in the same period of 2024[63](index=63&type=chunk) [Fair Value and Fair Value Hierarchy of Financial Instruments](index=25&type=section&id=8.12%20Fair%20Value%20and%20Fair%20Value%20Hierarchy%20of%20Financial%20Instruments) Most of the group's financial instruments have fair values approximating their carrying amounts, while equity investments designated at fair value through other comprehensive income are measured at Level 2 fair value, amounting to HK$300 thousand - Management assesses that the fair values of financial instruments such as cash and cash equivalents, trade and bills receivables, and trade and bills payables approximate their respective carrying amounts, primarily due to their short-term maturities[65](index=65&type=chunk) Assets Measured at Fair Value (As of June 30) | Item | Fair Value Hierarchy | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | :--- | | Equity investments designated at fair value through other comprehensive income | Level 2 | 300 | 300 | [Management Discussion and Analysis](index=27&type=section&id=Management%20Discussion%20and%20Analysis) This section provides management's perspective on the group's financial performance, operational highlights, and future outlook [Business Review](index=27&type=section&id=9.1%20Business%20Review) The group recorded a loss attributable to shareholders of HK$29,150 thousand in the first half, a significant increase from HK$14,970 thousand in the prior year, primarily due to fair value adjustments of investment properties and a substantial decrease in paint and coating product sales, yet net cash outflow from operations decreased by 29.1% through cost control and loan restructuring - For the six months ended June 30, 2025, the group recorded a **loss attributable to shareholders of approximately HK$29,150 thousand**, an increase of HK$14,180 thousand from the HK$14,970 thousand loss in the same period of 2024[73](index=73&type=chunk) - The significant increase in loss was primarily due to a **fair value loss of HK$8,360 thousand** on investment properties (compared to a gain of HK$3,200 thousand in the same period of 2024) and a **29.3% decline** in paint and coating product sales[73](index=73&type=chunk) - Net cash outflow from operations significantly decreased by **29.1%** compared to the same period in 2024, with bank and other borrowings reducing from **HK$195,970 thousand** as of December 31, 2024, to **HK$160,250 thousand** as of June 30, 2025[74](index=74&type=chunk) - The persistent downturn in Mainland China's real estate market and significant slowdown in construction activities have intensified demand pressure and competition for paint and coating products[75](index=75&type=chunk) [Operations Review](index=29&type=section&id=9.2%20Operations%20Review) The group's total revenue significantly decreased by 28.3%, with paint and coating product sales falling by 29.3%, as all paint product categories were affected by market downturn and intensified competition; while cost of sales decreased due to lower raw material prices and improved operational efficiency, gross profit still declined by 30.6% - For the six months ended June 30, 2025, the group's total revenue was **HK$106,340 thousand**, a significant **28.3% decrease** from HK$148,320 thousand in the same period of 2024[77](index=77&type=chunk) Paint and Coating Product Revenue by Major Product Analysis (For the six months ended June 30) | Product Category | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Net Change (%) | | :--- | :--- | :--- | :--- | | Industrial paint and coating products | 56,485 | 64,904 | -13.0% | | Architectural paint and coating products | 17,190 | 35,217 | -51.2% | | General paint and coating and ancillary products | 23,218 | 36,923 | -37.1% | | **Total** | **96,893** | **137,044** | **-29.3%** | - Sales to Hong Kong wholesale and retail distributors significantly decreased by **67.7%**, primarily due to the negative impact of the construction and building industry on Hong Kong's GDP and contractors shifting to sourcing from Mainland China[81](index=81&type=chunk) - Raw material costs decreased due to a **19.2% drop in crude oil prices**, enabling the group to offer more competitive pricing, with raw material costs as a percentage of sales decreasing by **2.9 percentage points** compared to the prior year[86](index=86&type=chunk) - Direct and indirect labor costs significantly decreased by **15.7%** compared to the prior year, primarily benefiting from improved operational efficiency and cost-saving strategies, including production facility consolidation[87](index=87&type=chunk) - Gross profit decreased by **30.6%**, with gross profit margin only declining by **0.6 percentage points**, demonstrating the group's resilience amidst intense competition[89](index=89&type=chunk) - Selling and distribution expenses decreased by **30.5% to HK$20,150 thousand**, and administrative expenses decreased by **8.5% to HK$31,880 thousand**, mainly due to reduced legal and professional fees, lower staff costs, and other cost-saving measures[91](index=91&type=chunk) [Property Investment](index=33&type=section&id=9.3%20Property%20Investment) The group strategically reallocated investment properties to optimize asset allocation; despite a fair value loss of HK$8,360 thousand, a 3.1% appreciation of RMB positively impacted asset valuation, leading to a slight increase in investment property valuation, while rental income fell by 16.3% due to the sluggish Mainland China real estate market - The group strategically reallocated its investment properties, converting underutilized production plants and office premises into investment properties to optimize asset allocation and improve operating cash flow[93](index=93&type=chunk) - Investment property valuation increased from **HK$295,280 thousand** as of December 31, 2024, to **HK$296,120 thousand** as of June 30, 2025, primarily due to the positive impact of a **3.1% appreciation of RMB**, which offset the fair value loss[93](index=93&type=chunk) - Rental income from investment properties was **HK$9,450 thousand**, a **16.3% decrease** from HK$11,280 thousand in the same period of 2024, mainly due to the persistent downturn in Mainland China's real estate market and a fair value loss of HK$11,560 thousand[94](index=94&type=chunk) - The group's investment property portfolio comprises **6 industrial and commercial properties** located in Mainland China, with a total land area of **175,675.8 sq. meters**, aiming to generate stable recurring income and capital appreciation[95](index=95&type=chunk) [Financial Review](index=34&type=section&id=9.4%20Financial%20Review) The group's total cash and cash equivalents decreased to HK$115,350 thousand, mainly due to repayment of bank and other borrowings; both debt-to-capital and current ratios declined, while inventory and trade and bills receivables turnover days increased, reflecting challenges from decreased sales and collection efficiency - As of June 30, 2025, total cash and cash equivalents were approximately **HK$115,350 thousand**, a decrease from HK$169,250 thousand as of December 31, 2024, primarily due to net repayment of bank and other borrowings of **HK$39,200 thousand**[96](index=96&type=chunk) Liquidity and Debt Ratios (As of June 30) | Indicator | 2025 June 30 | 2024 Dec 31 | Change | | :--- | :--- | :--- | :--- | | Debt-to-capital ratio | 44.2% | 52.0% | -7.8 percentage points | | Current ratio | 1.27 times | 1.35 times | -0.08 times | | Inventory turnover days | 57 days | 36 days | +21 days | | Trade and bills receivables turnover days | 142 days | 127 days | +15 days | - Inventory turnover days increased by **58.3% to 57 days**, and trade and bills receivables turnover days increased by **11.8% to 142 days**, mainly due to a **29.3% decrease in sales** and the impact of some long-aged receivables involved in legal disputes[98](index=98&type=chunk) - As of June 30, 2025, the group employed a total of **426 staff**, a **11.1% decrease** from June 30, 2024, with staff costs decreasing by **12.8% to HK$34,960 thousand**[103](index=103&type=chunk) [Business Plan and Outlook](index=36&type=section&id=9.5%20Business%20Plan%20and%20Outlook) Looking ahead to the second half, the group will continue implementing business revitalization measures to address market volatility and insufficient domestic demand, focusing on enriching product portfolios, expanding distribution networks, enhancing operational efficiency, reducing costs, and prioritizing repayment of high-interest borrowings to lower finance costs - The group will actively respond to market volatility stemming from external environmental changes, insufficient domestic demand, and a challenging economic landscape, anticipating that synergistic effects of policy guidance and market dynamics will foster sustainable industry growth[104](index=104&type=chunk) - Key developments include strengthening the Anti-Unfair Competition Law to alleviate excessive market competition pressure and accelerating the supply chain and market clearing processes[104](index=104&type=chunk) - The group will continue to expand its reach and explore business opportunities, committed to providing high-quality products and excellent after-sales service to customers, while avoiding product homogenization and vicious competition[104](index=104&type=chunk) - Business revitalization measures and actions are targeted in three areas: (a) enriching the product portfolio and ensuring competitiveness; (b) expanding and strengthening distribution networks in Mainland China, Hong Kong, and other regions; and (c) enhancing operational efficiency and reducing costs[105](index=105&type=chunk) [Other Information](index=37&type=section&id=Other%20Information) This section covers additional disclosures, including interim dividend policy, share dealings, directors' and major shareholders' interests, and corporate governance updates [Interim Dividend and Share Dealings](index=37&type=section&id=10.1%20Interim%20Dividend%20and%20Share%20Dealings) The Board resolved not to declare an interim dividend for the six months ended June 30, 2025, and neither the company nor its subsidiaries bought back or redeemed any company shares during the review period - The directors resolved not to declare an interim dividend for the six months ended June 30, 2025[107](index=107&type=chunk) - During the review period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's shares[108](index=108&type=chunk) [Directors' and Major Shareholders' Interests](index=37&type=section&id=10.2%20Directors'%20and%20Major%20Shareholders'%20Interests) As of June 30, 2025, Executive Directors Tsui Ho Chuen and Li Kwong Chung each held 10,000,000 share options, representing 1.00% of issued shares, while major shareholder CNT Enterprises Limited and its parent Beihai Group Limited held 75.00% of the shares Directors' Interests in Shares and Underlying Shares (As of June 30) | Name | Capacity | Number of Underlying Shares (Share Options) | Total | Percentage of Total Issued Shares | | :--- | :--- | :--- | :--- | :--- | | Tsui Ho Chuen | Beneficial owner | 10,000,000 | 10,000,000 | 1.00% | | Li Kwong Chung | Beneficial owner | 10,000,000 | 10,000,000 | 1.00% | Major Shareholders' Interests (As of June 30) | Name | Capacity | Number of Shares | Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | CNT Enterprises Limited | Beneficial owner | 750,000,000 | 75.00% | | Beihai Group Limited | Interest of controlled corporation | 750,000,000 | 75.00% | - As of June 30, 2025, **60,000,000** share options remained unexercised under the share option scheme, with **10,000,000** options previously held by former Non-Executive Director Chuang Chih Kun having lapsed[111](index=111&type=chunk) [Corporate Governance and Changes in Directors' Information](index=40&type=section&id=10.3%20Corporate%20Governance%20and%20Changes%20in%20Directors'%20Information) The company complies with the Corporate Governance Code, except for the combined roles of Chairman and Chief Executive Officer held by Mr. Tsui Ho Chuen; during the period, board changes included Mr. Chuang Chih Kun's resignation as Non-Executive Director, and Ms. Meng Jin Xia and Mr. Mak Chi Wah's appointments to committees - The company applies the principles and complies with the provisions of the Corporate Governance Code, except for the combined roles of Chairman and Chief Executive Officer held by Mr. Tsui Ho Chuen, an arrangement the Board believes helps maintain policy continuity and business operational stability[116](index=116&type=chunk) - Mr. Chuang Chih Kun resigned as a Non-Executive Director and ceased to be a member of the Audit Committee and Remuneration Committee, effective June 6, 2025[118](index=118&type=chunk) - Ms. Meng Jin Xia was appointed as a member of the Audit Committee and Nomination Committee, and Mr. Mak Chi Wah was appointed as a member of the Remuneration Committee, re-designated as a Non-Executive Director, and appointed as a member of the Audit Committee[118](index=118&type=chunk) - All directors confirmed compliance with the standards of the Model Code and the company's own code throughout the six months ended June 30, 2025[119](index=119&type=chunk)

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 | 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) | 01932 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 8,000,000,000 | HKD | | 0.1 | HKD | | 800,000,000 | | 增加 / 減少 (-) | | | 0 | | | | HKD | | 0 | | 本月底結存 | | | 8,000,000,000 | HKD | | 0.1 | HKD | | 800,000,000 | 本月底法定/註冊股本總額： HKD 800,000,000 FF301 第 1 頁 共 10 頁 v 1.1.1 截至月份: 2025年8月31日 狀態: 新提交 致：香港交易及結算所 ...

Group 1 - The company reported a revenue of HKD 106 million for the six months ending June 30, 2025, representing a year-on-year decrease of 28.3% [1] - Gross profit was HKD 41.974 million, down 27.8% compared to the previous year [1] - The company recorded a loss attributable to shareholders of HKD 29.151 million, compared to a loss of HKD 14.972 million in the same period last year [1] - Basic loss per share was HKD 0.0292 [1]

[Financial Summary](index=1&type=section&id=%E8%B2%B4%E5%8B%99%E6%91%98%E8%A6%81) The Group's financial performance for the six months ended June 30, 2025, shows a significant increase in loss attributable to owners and a decrease in revenue, alongside a reduction in cash and borrowings. Financial Summary for the Six Months Ended June 30, 2025 | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 106,338 | 148,322 | -28.3 | | Gross Profit | 41,974 | 58,134 | -27.8 | | Gross Profit Margin | 39.5% | 39.2% | 0.8 | | Loss Attributable to Owners of the Company | (29,151) | (14,972) | 94.7 | | Loss Per Share (HK cents) Basic and Diluted | (2.92) | (1.50) | 94.7 | Financial Position Summary as of June 30, 2025 | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents and Pledged Deposits | 132,862 | 191,459 | -30.6 | | Bank and Other Borrowings | 160,250 | 195,972 | -18.2 | | Gearing Ratio | 44.2% | 52.0% | -15.0 | | Net Asset Value Per Share (HKD) | 0.37 | 0.38 | -2.6 | [Interim Results](index=2&type=section&id=%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE) This section provides an overview of the Group's performance during the interim period, highlighting key financial outcomes. [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) The condensed consolidated statement of profit or loss details the Group's financial performance, showing a significant increase in loss for the period. Condensed Consolidated Statement of Profit or Loss (For the Six Months Ended June 30) | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Revenue | 106,338 | 148,322 | | Cost of Sales | (64,364) | (90,188) | | Gross Profit | 41,974 | 58,134 | | Other Income and Gains, Net | 2,599 | 6,596 | | Selling and Distribution Expenses | (20,151) | (28,990) | | Administrative Expenses | (34,132) | (37,684) | | Net Reversal of Impairment Provisions for Trade and Bills Receivables / (Provisions) | 928 | (956) | | Other Expenses, Net | (14,248) | (4,649) | | Finance Costs | (3,992) | (5,885) | | Loss Before Tax | (27,022) | (13,434) | | Income Tax Expense | (2,166) | (1,201) | | Loss for the Period | (29,188) | (14,635) | | Loss Attributable to Owners of the Parent | (29,151) | (14,972) | | Loss / (Profit) Attributable to Non-controlling Interests | (37) | 337 | | Basic and Diluted Loss Per Share (HK cents) | (2.92) | (1.50) | [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) This statement presents the Group's total comprehensive loss for the period, including exchange differences on translation of foreign operations. Condensed Consolidated Statement of Comprehensive Income (For the Six Months Ended June 30) | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Loss for the Period | (29,188) | (14,635) | | Exchange Differences on Translation of Foreign Operations | 14,970 | (13,166) | | Other Comprehensive Income / (Loss) for the Period | 14,970 | (13,166) | | Total Comprehensive Loss for the Period | (14,218) | (27,801) | | Total Comprehensive Loss Attributable to Owners of the Parent | (14,304) | (28,037) | | Total Comprehensive Income / (Loss) Attributable to Non-controlling Interests | 86 | 236 | [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%B4%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) The condensed consolidated statement of financial position provides a snapshot of the Group's assets, liabilities, and equity as of June 30, 2025. Condensed Consolidated Statement of Financial Position (As at June 30, 2025) | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Property, Plant and Equipment | 87,905 | 90,786 | | Investment Properties | 296,124 | 295,283 | | Total Non-current Assets | 433,806 | 438,683 | | **Current Assets** | | | | Inventories | 20,342 | 18,664 | | Trade and Bills Receivables | 76,052 | 103,628 | | Cash and Cash Equivalents | 115,353 | 169,252 | | Total Current Assets | 283,163 | 365,313 | | **Current Liabilities** | | | | Trade and Bills Payables | 96,124 | 125,437 | | Interest-bearing Bank Borrowings | 77,852 | 88,075 | | Total Current Liabilities | 223,793 | 270,259 | | Net Current Assets | 59,370 | 95,054 | | **Non-current Liabilities** | | | | Loans from Parent Group | 33,927 | 107,897 | | Interest-bearing Bank Borrowings | 48,471 | – | | Total Non-current Liabilities | 126,310 | 152,674 | | Net Assets | 366,866 | 381,063 | | **Total Equity** | 366,866 | 381,063 | [Notes to the Condensed Consolidated Financial Statements](index=6&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%B4%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) This section provides detailed explanatory notes to the condensed consolidated financial statements, offering further insights into the Group's accounting policies and financial performance. [1.1 Basis of Preparation](index=6&type=section&id=1.1%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) These condensed consolidated interim financial statements are prepared in accordance with HKAS 34 and the Listing Rules, and should be read in conjunction with the annual consolidated financial statements for the year ended December 31, 2024. - These interim financial statements are prepared in accordance with HKAS 34 and the Listing Rules, supplementing the annual consolidated financial statements[10](index=10&type=chunk) [1.2 Changes in Accounting Policies and Disclosures](index=6&type=section&id=1.2%20%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96%E5%8F%8A%E6%8A%AB%E9%9C%B2%E8%AE%8A%E6%9B%B4) Accounting policies for the period are consistent with the prior year, except for the adoption of HKAS 21 amendments regarding lack of exchangeability, which had no material impact as the Group's transaction and functional currencies are convertible. - The Group adopted HKAS 21 amendments on lack of exchangeability, but it had no impact on the financial statements as all group currencies are convertible[11](index=11&type=chunk)[12](index=12&type=chunk) [2. Operating Segment Information](index=7&type=section&id=2.%20%E7%B6%93%E7%87%9F%E5%88%86%E9%A1%9E%E8%B3%87%E6%96%99) The Group operates in two segments: paint products and property investment, with paint products showing increased losses and property investment shifting from profit to loss, reflecting overall declines in revenue and assets due to market challenges. - The Group primarily operates in two segments: paint products and property investment, with management regularly reviewing their performance for resource allocation and evaluation[13](index=13&type=chunk)[17](index=17&type=chunk) Operating Segment Results (For the Six Months Ended June 30) | Segment | 2025 Segment Revenue (HKD thousands) | 2024 Segment Revenue (HKD thousands) | 2025 Segment Results (HKD thousands) | 2024 Segment Results (HKD thousands) | | :--- | :--- | :--- | :--- | :--- | | Paint Products | 98,741 | 139,217 | (21,578) | (19,296) | | Property Investment | 9,475 | 14,473 | (186) | 12,871 | | Total | 108,216 | 153,690 | (21,764) | (6,425) | Operating Segment Assets and Liabilities (As at June 30) | Segment | 2025 Segment Assets (HKD thousands) | 2024 Segment Assets (HKD thousands) | 2025 Segment Liabilities (HKD thousands) | 2024 Segment Liabilities (HKD thousands) | | :--- | :--- | :--- | :--- | :--- | | Paint Products | 408,654 | 482,223 | 308,967 | 381,312 | | Property Investment | 305,284 | 308,391 | 39,691 | 39,477 | | Total | 713,938 | 790,614 | 348,658 | 420,789 | [Geographical Information](index=11&type=section&id=%E5%9C%B0%E5%9F%9F%E8%B3%87%E6%96%99) The Group's revenue is primarily from Mainland China, accounting for 89.4% of total revenue, with Hong Kong contributing 10.6%, and non-current assets also predominantly located in Mainland China. Revenue from External Customers (For the Six Months Ended June 30) | Region | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Hong Kong | 10,314 | 27,727 | | Mainland China | 96,024 | 120,595 | | Total | 106,338 | 148,322 | Non-current Assets (As at June 30) | Region | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Hong Kong | 1,186 | 855 | | Mainland China | 416,783 | 419,537 | | Total | 417,969 | 420,392 | - For the six months ended June 30, 2025 and 2024, no single customer accounted for 10% or more of the Group's total revenue[23](index=23&type=chunk) [3. Revenue, Other Income and Gains, Net](index=12&type=section&id=3.%20%E6%94%B6%E5%85%A5%E3%80%81%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A%E6%B7%A8%E9%A1%8D) The Group's total revenue decreased by 28.3% year-on-year, primarily due to reduced paint product sales and investment property rental income, with other income and gains also declining from lower government grants and property disposal gains. Revenue Analysis (For the Six Months Ended June 30) | Revenue Source | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Sales of Paint Products | 96,893 | 137,044 | | Gross Rental Income from Investment Properties | 9,445 | 11,278 | | Total | 106,338 | 148,322 | Types of Paint and Coating Products Sold (For the Six Months Ended June 30) | Product Type | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Industrial Paint and Coating Products | 56,485 | 64,904 | | Architectural Paint and Coating Products | 17,190 | 35,217 | | General Paint and Coating and Ancillary Products | 23,218 | 36,923 | | Total | 96,893 | 137,044 | Other Income and Gains, Net Analysis (For the Six Months Ended June 30) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Bank Interest Income | 721 | 1,228 | | Net Fair Value Gain on Investment Properties | – | 3,195 | | Government Grants | 40 | 204 | | Government Subsidies | 342 | 408 | | Total | 2,599 | 6,596 | [4. Finance Costs](index=13&type=section&id=4.%20%E8%9E%8D%E8%B3%87%E8%B2%BB%E7%94%A8) Finance costs for the period decreased by 32.2% year-on-year, primarily due to lower interest expenses on bank and other borrowings and lease liabilities. Finance Costs Analysis (For the Six Months Ended June 30) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Interest on Bank and Other Borrowings | 3,849 | 5,719 | | Interest Expense on Lease Liabilities | 143 | 166 | | Total | 3,992 | 5,885 | [5. Loss Before Tax](index=14&type=section&id=5.%20%E9%99%A4%E7%A8%85%E5%89%8D%E虧%E6%90%8D) The Group's loss before tax significantly increased year-on-year, primarily due to a shift from fair value gain to loss on investment properties, exchange differences turning from gain to loss, and higher employee termination costs. Components of Loss Before Tax (For the Six Months Ended June 30) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Cost of Inventories Sold | 64,364 | 90,188 | | Depreciation of Property, Plant and Equipment | 5,876 | 7,533 | | Depreciation of Right-of-use Assets | 2,314 | 2,294 | | Net Exchange Differences | 1,213 | (68) | | Net Fair Value Loss / (Gain) on Investment Properties | 8,363 | (3,195) | | Net Impairment Provisions for Trade and Bills Receivables / (Reversal of Provisions) | (928) | 956 | | Net Provisions for Inventories / (Reversal) to Net Realizable Value | (269) | 291 | | Employee Termination Costs | 1,128 | 600 | [6. Income Tax](index=14&type=section&id=6.%20%E6%89%80%E5%BE%97%E7%A8%85) The Group has no Hong Kong profits tax provision due to no taxable profits, while Mainland China subsidiaries pay corporate income tax at a standard 25% rate, with high-tech qualified subsidiaries enjoying a preferential 15% rate. - No Hong Kong profits tax provision is made, while Mainland China subsidiaries are subject to a **25%** corporate income tax rate, with high-tech enterprises enjoying a preferential **15%** rate[29](index=29&type=chunk) [7. Loss Per Share Attributable to Owners of the Parent](index=15&type=section&id=7.%20%E6%AF%8D%E5%85%AC%E5%8F%B8%E6%99%AE%E9%80%9A%E8%82%A1%E6%AC%8A%E7%9B%8A%E6%8C%81%E6%9C%89%E4%BA%BA%E6%87%89%E4%BD%B5%E6%AF%8F%E8%82%A1%E虧%E6%90%8D) For the six months ended June 30, 2025, basic and diluted loss per share was 2.92 HK cents, a significant 94.7% increase from 1.50 HK cents in the prior year, with no dilution adjustment due to the anti-dilutive effect of share options. Loss Per Share (For the Six Months Ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Loss for the Period Attributable to Owners of the Parent (HKD) | 29,151,000 | 14,972,000 | | Weighted Average Number of Ordinary Shares in Issue (Shares) | 1,000,000,000 | 1,000,000,000 | | Basic and Diluted Loss Per Share (HK cents) | (2.92) | (1.50) | - No diluted loss per share adjustment was made as the outstanding share options had an anti-dilutive effect on basic loss per share[30](index=30&type=chunk) [8. Dividends](index=15&type=section&id=8.%20%E8%82%A1%E6%81%AF) The Board resolved not to declare an interim dividend for the six months ended June 30, 2025, consistent with the prior year. - The Board resolved not to declare an interim dividend for the six months ended June 30, 2025[31](index=31&type=chunk) [9. Property, Plant and Equipment](index=15&type=section&id=9.%20%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%A8%AD%E5%82%99) The cost of additions to property, plant and equipment significantly increased to HKD 284,000 for the period, while the net book value of disposals remained low. Changes in Property, Plant and Equipment (For the Six Months Ended June 30) | Item | 2025 (HKD) | 2024 (HKD) | | :--- | :--- | :--- | | Cost of Additions | 284,000 | 42,000 | | Net Book Value of Disposals | 1 | 2 | [10. Investment Properties](index=15&type=section&id=10.%20%E6%8A%95%E8%B3%87%E7%89%A9%E6%A5%AD) The Group's investment property carrying value slightly increased, primarily due to positive exchange adjustments offsetting fair value losses, following revaluation by independent valuers. Changes in Carrying Value of Investment Properties (As at June 30) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Carrying Value at Beginning of Period / Year | 295,283 | 309,087 | | Fair Value Loss | (8,363) | (7,978) | | Exchange Adjustment | 9,204 | (9,785) | | Carrying Value at End of Period / Year | 296,124 | 295,283 | - Independent professional valuers revalued investment properties to **HKD 296,124,000** as of June 30, 2025, with fair value generally derived using the income capitalization approach[33](index=33&type=chunk) [11. Trade and Bills Receivables](index=16&type=section&id=11.%20%E6%87%89%E6%94%B6%E8%B2%B7%E6%98%93%E8%B3%A6%E6%AC%BE%E5%8F%8A%E7%A5%A8%E6%93%9A) Total trade and bills receivables decreased by 26.6% year-on-year, with a notable reduction in receivables aged within three months, as the Group closely monitors credit risk and has no significant concentration of credit risk. - The Group's trade receivables primarily arise from leasing investment properties and selling paint products, with credit terms generally one month, extendable to three months for major customers[34](index=34&type=chunk) Ageing Analysis of Trade and Bills Receivables (As at June 30) | Ageing | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Within 3 months | 37,069 | 55,670 | | Over 3 months but within 6 months | 8,431 | 7,511 | | Over 6 months | 30,552 | 40,447 | | Total | 76,052 | 103,628 | [12. Trade and Bills Payables](index=17&type=section&id=12.%20%E6%87%89%E4%BB%98%E8%B2%B7%E6%98%93%E8%B3%A6%E6%AC%BE%E5%8F%8A%E7%A5%A8%E6%93%9A) Total trade and bills payables decreased by 23.3% year-on-year, primarily settled within three months, with some bills payable secured by pledged time deposits. Ageing Analysis of Trade and Bills Payables (As at June 30) | Ageing | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Within 3 months | 34,946 | 49,975 | | Over 3 months but within 6 months | 20,141 | 34,389 | | Over 6 months | 41,037 | 41,073 | | Total | 96,124 | 125,437 | - Trade and bills payables are unsecured, non-interest-bearing, and generally settled within two months, with bills payable of **HKD 57,661,000** secured by pledged time deposits of **HKD 17,509,000**[36](index=36&type=chunk) [13. Share Option Scheme](index=17&type=section&id=13.%20%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%A8%88%E5%8A%83) The Group granted 80,000,000 share options on June 15, 2022, with an exercise price of HKD 0.335 per share; as of June 30, 2025, 10,000,000 options lapsed due to director resignations, leaving 60,000,000 outstanding. - On June 15, 2022, **80,000,000** share options were granted with an exercise price of **HKD 0.335** per share, a four-year vesting period, and a five-year exercise period[37](index=37&type=chunk) Outstanding Share Options (As at June 30) | Item | Number of Share Options 2025 | Number of Share Options 2024 | | :--- | :--- | :--- | | At January 1 | 70,000,000 | 80,000,000 | | Lapsed during the period | (10,000,000) | (10,000,000) | | At June 30 | 60,000,000 | 70,000,000 | | Vested and exercisable at June 30 | 54,000,000 | 56,000,000 | - Net share option expense recognized for the six months ended June 30, 2025, was approximately **HKD 21,000**, a significant decrease from **HKD 209,000** in the prior year[39](index=39&type=chunk) [14. Comparative Figures](index=18&type=section&id=14.%20%E6%AF%94%E8%BC%83%E6%95%B8%E5%AD%97) Certain comparative figures have been reclassified to conform with the current period's presentation. - Certain comparative figures have been reclassified to conform with the current period's presentation[40](index=40&type=chunk) [Management Discussion and Analysis](index=19&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) This section provides a comprehensive review of the Group's operational and financial performance, market conditions, and future outlook. [Interim Dividend](index=19&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board resolved not to declare an interim dividend for the six months ended June 30, 2025. - The Board resolved not to declare an interim dividend for the six months ended June 30, 2025[41](index=41&type=chunk) [Business Review](index=19&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) The Group's loss attributable to shareholders for H1 2025 significantly increased by 94.7% to approximately HKD 29.15 million, primarily due to a shift from fair value gain to loss on investment properties and a 29.3% decline in paint and coating product sales, despite effective cash outflow control and loan portfolio restructuring through operational cost savings. - The Group recorded a loss attributable to owners of the Company of approximately **HKD 29.15 million** for H1 2025, a **94.7% increase** from the **HKD 14.97 million** loss in H1 2024[43](index=43&type=chunk) - The increased loss was primarily due to an **HKD 8.36 million fair value loss** on investment properties (compared to an **HKD 3.20 million gain** in H1 2024) and a **29.3% decrease** in paint and coating product sales[43](index=43&type=chunk) - Through strategic operational optimization, net operating cash outflow significantly decreased by **29.1%** compared to H1 2024, with bank and other borrowings reduced from **HKD 195.97 million** to **HKD 160.25 million**[44](index=44&type=chunk) [Paint and Coating Business](index=21&type=section&id=%E6%B2%B9%E6%BC%86%E5%8F%8A%E5%A1%97%E6%96%99%E6%A5%AD%E5%8B%99) The paint and coating business faced challenges from a sluggish Mainland China property market, slower construction, and increased competition, resulting in a 29.3% year-on-year sales revenue decrease, with architectural paint and coating products experiencing the largest decline; however, gross profit margin remained resilient due to lower raw material and labor costs. - The continuous downturn in Mainland China's property market and significant slowdown in construction activities pressured demand for paint and coating products, particularly architectural paint and coating products[45](index=45&type=chunk) - Weak demand in the Hong Kong market, coupled with oversupply from new competitors, led major contractors to directly source paint and coating products from Mainland China[45](index=45&type=chunk) - For the six months ended June 30, 2025, the Group's paint and coating product sales revenue decreased by **29.3%** compared to the prior year[45](index=45&type=chunk) [Operational Review](index=22&type=section&id=%E7%87%9F%E9%81%8B%E5%9B%9E%E9%A1%A7) The Group's total revenue was HKD 106.34 million, a significant 28.3% decrease from the prior year, primarily due to reduced sales revenue and investment property rental income. Total Revenue Composition (For the Six Months Ended June 30) | Revenue Source | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Sales Revenue | 96,890 | 137,040 | | Rental Income from Investment Properties | 9,450 | 11,280 | | Total Revenue | 106,340 | 148,320 | [Paint and Coating Products](index=22&type=section&id=%E6%B2%B9%E6%BC%86%E5%8F%8A%E5%A1%97%E6%96%99%E7%94%A2%E5%93%81) The paint and coating products segment experienced increased losses, with revenue significantly decreasing to HKD 96.89 million, and all product categories showing substantial sales declines, particularly architectural paint and coating products. - The paint and coating products segment recorded a loss of **HKD 21.58 million**, an increase from the **HKD 19.30 million** loss in H1 2024[48](index=48&type=chunk) Paint and Coating Products Revenue Analysis (For the Six Months Ended June 30) | Product Type | 2025 (HKD thousands) | 2025 (%) | 2024 (HKD thousands) | 2024 (%) | Net Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Industrial Paint and Coating Products | 56,485 | 58.3 | 64,904 | 47.4 | -13.0 | | Architectural Paint and Coating Products | 17,190 | 17.7 | 35,217 | 25.7 | -51.2 | | General Paint and Coating and Ancillary Products | 23,218 | 24.0 | 36,923 | 26.9 | -37.1 | | Total | 96,893 | 100.0 | 137,044 | 100.0 | -29.3 | [Significant Decrease in Sales to Hong Kong Wholesale and Retail Distributors](index=23&type=section&id=%E5%B0%8D%E9%A6%99%E6%B8%AF%E6%89%B9%E7%99%BC%E5%8F%8A%E9%9B%B6%E5%94%AE%E5%88%86%E9%8A%B7%E5%95%86%E4%B9%8B%E9%8A%B7%E5%94%AE%E9%A1%AF%E8%91%97%E6%B8%9B%E5%B0%91) Sales to Hong Kong wholesale and retail distributors significantly decreased by 67.7%, primarily due to the negative impact of the construction and building industry on Hong Kong's GDP and contractors shifting to direct procurement from Mainland China. - Sales to Hong Kong wholesale and retail distributors significantly decreased by **67.7%** compared to the prior year[49](index=49&type=chunk) - The sales decline is primarily attributed to the negative impact of Hong Kong's construction and building industry on local GDP, and major contractors shifting to direct procurement of paint and coating products from Mainland China[49](index=49&type=chunk) [Significant Decrease in Sales to Mainland China Wholesale and Retail Distributors](index=23&type=section&id=%E5%B0%8D%E4%B8%AD%E5%9C%8B%E5%85%A7%E5%9C%B0%E4%B9%8B%E6%89%B9%E7%99%BC%E5%8F%8A%E9%9B%B6%E5%94%AE%E5%88%86%E9%8A%B7%E5%95%86%E4%B9%8B%E9%8A%B7%E5%94%AE%E9%A1%AF%E8%91%97%E6%B8%9B%E5%B0%91) Sales to Mainland China wholesale and retail distributors decreased by 13.8%, primarily impacted by a sluggish property market, industry saturation, and price wars driven by intensified competition. - Sales to Mainland China wholesale and retail distributors significantly decreased by **13.8%** compared to the prior year[50](index=50&type=chunk) - The decline is mainly due to the sluggish Mainland China property market and saturation and competitive pressures within the paint and coating industry[50](index=50&type=chunk) [Significant Decrease in Sales to Mainland China Private Residential Property Project Developers and their Contractors](index=23&type=section&id=%E5%B0%8D%E4%B8%AD%E5%9C%8B%E5%85%A7%E5%9C%B0%E7%A7%81%E4%BA%BA%E4%BD%8F%E5%AE%85%E7%89%A9%E6%A5%AD%E9%A0%85%E7%9B%AE%E6%88%BF%E5%9C%B0%E7%94%A2%E9%96%8B%E7%99%BC%E5%95%86%E5%8F%8A%E7%82%BA%E5%85%B6%E5%B7%A5%E4%BD%9C%E4%B9%8B%E6%89%BF%E5%8C%85%E5%95%86%E4%B9%8B%E9%8A%B7%E5%94%AE%E9%A1%AF%E8%91%97%E6%B8%9B%E5%B0%91) Sales to Mainland China private residential property project developers and contractors significantly decreased by 97.5%, primarily due to the ongoing sluggish property market, stalled new projects, and pending tender results. - Sales to Mainland China private residential property project developers and their contractors significantly decreased by **97.5%** compared to the prior year[51](index=51&type=chunk) - The decline is attributed to the continuous downturn in Mainland China's property market, stalled progress on new real estate projects, and pending tender results[51](index=51&type=chunk) [Significant Decrease in Sales to Mainland China Industrial Manufacturers](index=23&type=section&id=%E5%B0%8D%E4%B8%AD%E5%9C%8B%E5%85%A7%E5%9C%B0%E5%B7%A5%E6%A5%AD%E8%A3%BD%E9%80%A0%E5%95%86%E4%B9%8B%E9%8A%B7%E5%94%AE%E9%A1%AF%E8%91%97%E6%B8%9B%E5%B0%91) Sales to Mainland China industrial manufacturers decreased by 13.0%, primarily due to intensified competition in the paint and coating industry and architectural paint manufacturers shifting to industrial paint production. - Sales to Mainland China industrial manufacturers significantly decreased by **13.0%** compared to the prior year[52](index=52&type=chunk) - The decrease is mainly due to intensified competition in the paint and coating industry and architectural paint manufacturers shifting to industrial paint production, exacerbating market competitive pressure[52](index=52&type=chunk) [Geographical Distribution of Revenue](index=24&type=section&id=%E6%94%B6%E5%85%A5%E4%B9%8B%E5%9C%B0%E5%9F%9F%E5%88%86%E4%BD%88) The Group's revenue primarily originated from Mainland China, increasing its share from 79.8% to 89.4%, while Hong Kong's share decreased from 20.2% to 10.6%, with South, Central, and East China remaining key revenue sources. - The Group's revenue from Mainland China and Hong Kong sales accounted for **89.4%** and **10.6%** respectively (compared to **79.8%** and **20.2%** in the prior year)[53](index=53&type=chunk) - Revenue generated from South, Central, and East China regions collectively accounted for **82.0%** of the Group's sales (compared to **74.0%** in the prior year)[53](index=53&type=chunk) [Cost of Sales](index=24&type=section&id=%E9%8A%B7%E5%94%AE%E6%88%90%E6%9C%AC) Cost of sales decreased due to lower raw material costs, direct and indirect labor costs, and depreciation and manufacturing overheads; falling crude oil prices positively impacted raw material costs, and the Group improved operational efficiency through cost-saving strategies. - A **19.2% decrease** in crude oil prices (USD 59-68 per barrel) positively impacted raw material costs, enabling the Group to offer more competitive pricing[54](index=54&type=chunk) - Direct and indirect labor costs significantly decreased by **15.7%** year-on-year, primarily due to lower sales and improved operational efficiency from production facility consolidation[55](index=55&type=chunk) - Depreciation and manufacturing overheads decreased by **18.7%** year-on-year, with depreciation down **26.5%** and manufacturing overheads down **8.2%**[56](index=56&type=chunk) [The Group's Gross Profit and Gross Profit Margin](index=25&type=section&id=%E6%9C%AC%E9%9B%86%E5%9C%98%E4%B9%8B%E6%AF%9B%E5%88%A9%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87) The Group's gross profit decreased by 30.6%, primarily due to lower sales; despite intense market competition and reduced demand, the gross profit margin remained resilient, declining by only 0.6 percentage points. - The Group's gross profit decreased by **30.6%**, primarily due to a **29.3% reduction** in sales compared to the prior year[57](index=57&type=chunk) - Despite challenges, the gross profit margin demonstrated resilience, decreasing by only **0.6 percentage points** compared to the prior year[57](index=57&type=chunk) [Other Income and Gains, Net](index=25&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A%E6%B7%A8%E9%A1%8D) Other income and gains, net, decreased by 14.7% year-on-year, primarily due to reduced government grants and gains from the disposal of property, plant and equipment. - Other income and gains, net, amounted to **HKD 1.85 million**, a **14.7% decrease** from **HKD 2.17 million** in the prior year[58](index=58&type=chunk) - The decrease was mainly due to a **HKD 160,000 reduction** in government grants and a **HKD 160,000 decrease** in gains from the disposal of property, plant and equipment[58](index=58&type=chunk) [Selling and Distribution Expenses and Administrative Expenses](index=25&type=section&id=%E9%8A%B7%E5%94%AE%E5%8F%8A%E5%88%86%E9%8A%B7%E9%96%8B%E6%94%AF%E4%BB%A5%E5%8F%8A%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) Selling and distribution expenses significantly decreased by 30.5%, primarily due to reduced legal and professional fees and cost savings, while administrative expenses also decreased by 8.5% from savings in staff costs and other operating expenses. - Selling and distribution expenses decreased by **30.5%** from **HKD 28.99 million** to **HKD 20.15 million**, mainly due to a **HKD 5.55 million reduction** in legal and professional fees and **HKD 3.29 million** in cost savings[59](index=59&type=chunk) - Administrative expenses decreased by **8.5%** to **HKD 31.88 million**, primarily due to a **HKD 1.86 million reduction** in staff costs and **HKD 1.09 million** in other operating expenses[59](index=59&type=chunk) [Other Operating Expenses](index=26&type=section&id=%E5%85%B6%E4%BB%96%E7%B6%93%E7%87%9F%E9%96%8B%E6%94%AF) Other operating expenses decreased by 13.0% year-on-year, primarily due to a net reversal of impairment provisions for trade and bills receivables, despite an increase in employee termination costs. - Other operating expenses decreased by **13.0%** compared to the prior year[60](index=60&type=chunk) - This was mainly due to a **HKD 930,000 reversal** of net impairment provisions for trade and bills receivables (compared to a **HKD 960,000 provision** in the prior year), resulting in a **HKD 1.89 million improvement** in impairment adjustments[60](index=60&type=chunk) - Employee termination costs increased by **HKD 530,000** compared to the prior year[60](index=60&type=chunk) [Property Investment](index=26&type=section&id=%E7%89%A9%E6%A5%AD%E6%8A%95%E8%B3%87) The Group strategically reallocated investment properties, converting underutilized plants, and despite declining rental income and fair value losses from a sluggish Mainland China property market, RMB appreciation positively impacted asset valuation, leading to a slight increase in total investment property valuation, with investment properties now comprising 41.3% of total assets. - The Group strategically reallocated investment properties, effectively converting underutilized production plants and office premises to optimize asset allocation[61](index=61&type=chunk) - A **3.1% appreciation** of the Renminbi positively impacted asset valuation, offsetting fair value losses and increasing investment property valuation from **HKD 295.28 million** to **HKD 296.12 million**[61](index=61&type=chunk) - Rental income from investment properties was **HKD 9.45 million**, a decrease from **HKD 11.28 million** in the prior year, resulting in a segment loss of **HKD 190,000** (compared to a profit of **HKD 12.87 million** in the prior year)[62](index=62&type=chunk) - Investment property fair value adjustments amounted to **HKD 11.56 million**, leading to a fair value loss of **HKD 8.36 million** (compared to a gain of **HKD 3.20 million** in the prior year)[62](index=62&type=chunk) [Financial Review](index=27&type=section&id=%E8%B2%B4%E5%8B%99%E5%9B%9E%E9%A1%A7) The Group's total cash and cash equivalents decreased due to bank loan repayments, but total bank and other borrowings also significantly declined, improving both the gearing ratio and current ratio; inventory and trade and bills receivables turnover days increased, reflecting lower sales and the impact of some receivable litigations, while RMB appreciation generated positive exchange gains on equity. - Total cash and cash equivalents were approximately **HKD 115.35 million**, a decrease from December 31, 2024, primarily due to net repayment of bank and other borrowings of **HKD 39.20 million**[65](index=65&type=chunk) - Bank and other borrowings were approximately **HKD 160.25 million**, an **18.2% decrease** from **HKD 195.97 million** as of December 31, 2024[65](index=65&type=chunk) Liquidity and Gearing Ratios (As at June 30) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Gearing Ratio | 44.2% | 52.0% | | Current Ratio | 1.27 times | 1.35 times | | Inventory Turnover Days | 57 days | 36 days | | Trade and Bills Receivables Turnover Days | 142 days | 127 days | - Due to RMB appreciation, exchange differences on translation of foreign operations recognized in other comprehensive income resulted in a **HKD 14.97 million gain** (compared to a **HKD 13.17 million loss** in the prior year)[68](index=68&type=chunk) [Liquidity and Gearing](index=27&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E5%82%B5%E5%8B%99) The Group's cash and cash equivalents decreased, but bank and other borrowings also significantly declined, improving both the gearing ratio and current ratio; inventory and trade receivables turnover days increased, reflecting lower sales and the impact of some receivable litigations. - The Group's cash and bank balances are primarily denominated in HKD and RMB, with all bank borrowings denominated in HKD and RMB[66](index=66&type=chunk) - Inventory turnover days increased by **58.3%** from **36 days** to **57 days**, and trade and bills receivables turnover days increased by **11.8%** from **127 days** to **142 days**[67](index=67&type=chunk) [Equity and Net Assets](index=28&type=section&id=%E6%AC%8A%E7%9B%8A%E5%8F%8A%E8%B3%87%E7%94%A2%E6%B7%A8%E5%80%BC) Shareholders' funds and net asset value per share slightly decreased, while RMB appreciation generated positive exchange gains on translation of foreign operations, positively impacting equity. Equity and Net Assets (As at June 30) | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Shareholders' Funds | 362,810 | 377,090 | | Net Asset Value Per Share (HKD) | 0.37 | 0.38 | [Contingent Liabilities](index=28&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) The utilized amount of bank financing guarantees provided by the Company for its subsidiaries significantly increased to HKD 58 million, while performance bonds, secured by pledged deposits, were zero for the period. - As of June 30, 2025, the utilized amount of bank financing guaranteed by the Company for its subsidiaries was **HKD 58 million** (compared to **HKD 21 million** as of December 31, 2024)[69](index=69&type=chunk) - Performance bonds, secured by pledged deposits, were **zero** as of June 30, 2025 (compared to **HKD 640,000** as of December 31, 2024)[69](index=69&type=chunk) [Pledge of Assets](index=29&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) Certain investment properties, property, plant and equipment, right-of-use assets, and cash deposits with a total net book value of HKD 306.24 million were pledged to financial institutions as collateral for bills payable, bank borrowings, performance bonds, and lease liabilities. - As of June 30, 2025, certain assets with a total net book value of **HKD 306.24 million** were pledged to financial institutions as collateral for bills payable, bank borrowings, performance bonds, and lease liabilities[71](index=71&type=chunk) - Changes in pledged assets were due to transitional performance from strategic financial restructuring and optimization, as well as the appreciation of the Renminbi[71](index=71&type=chunk) [Employees](index=29&type=section&id=%E5%83%B1%E5%93%A1) The Group's total headcount decreased by 11.1% to 426 employees, with staff costs decreasing by 12.8% year-on-year, reflecting the Group's cost control efforts. Employee Headcount and Costs (For the Six Months Ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Total Number of Employees (Persons) | 426 | 479 | | Staff Costs (HKD thousands) | 34,960 | 40,110 | - The Group provides comprehensive and competitive employee remuneration and benefits based on individual performance, along with training opportunities[72](index=72&type=chunk) [Business Plan and Outlook](index=29&type=section&id=%E6%A5%AD%E5%8B%99%E8%A8%88%E5%8A%83%E5%8F%8A%E5%B1%95%E6%9C%9B) For H2 2025, the Group will continue its "Business Revitalization Measures and Actions" to address market volatility and insufficient domestic demand, focusing on enriching product portfolios, expanding distribution networks, enhancing operational efficiency, reducing costs, and prioritizing high-interest loan repayment to lower financial costs. - The Group will implement "Business Revitalization Measures and Actions" to address market volatility, anticipating policy guidance to promote sustainable industry growth[73](index=73&type=chunk) - A core strategy is prioritizing repayment of high-interest borrowings to reduce financial costs and enhance liquidity, with bank and other borrowings already significantly reduced by **18.2%**[74](index=74&type=chunk) - The objectives are threefold: (a) enriching the product portfolio and ensuring competitiveness; (b) expanding and strengthening distribution networks in Mainland China, Hong Kong, and other regions; and (c) enhancing operational efficiency and reducing costs[75](index=75&type=chunk) [Significant Investments Held, Material Acquisitions and Disposals of Subsidiaries, and Future Plans for Material Investments or Capital Assets](index=30&type=section&id=%E6%8C%81%E6%9C%89%E4%B9%8B%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E3%80%81%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8%E3%80%81%E4%BB%A5%E5%8F%8A%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%E4%B9%8B%E6%9C%AA%E4%BE%86%E8%A8%88%E5%8A%83) During the review period, the Group made no significant investments, acquisitions, or disposals of subsidiaries, and the Board has not approved any other plans for material investments or additions to capital assets. - During the review period, there were no acquisitions of other significant investments, nor any other material acquisitions or disposals of subsidiaries[76](index=76&type=chunk) - The Board has not approved any other plans for material investments or additions to capital assets[76](index=76&type=chunk) [Purchase, Sale or Redemption of the Company's Shares](index=30&type=section&id=%E8%B2%B7%E8%B3%A3%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E8%82%A1%E4%BB%BD) During the review period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's shares. - During the review period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's shares[77](index=77&type=chunk) [Corporate Governance](index=31&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) This section outlines the Company's adherence to corporate governance principles and practices during the reporting period. [Corporate Governance](index=31&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) The Company applied and complied with the Corporate Governance Code in Appendix C1 of the Listing Rules during the period, except for the combined roles of Chairman and Chief Executive Officer, which the Board deems appropriate for policy continuity and business stability at this stage, subject to regular review. - The Company complied with the Corporate Governance Code during the period, except for Mr. Xu Haoquan holding both the Chairman and Chief Executive Officer positions[78](index=78&type=chunk) - The Board believes that Mr. Xu Haoquan holding both roles is appropriate at this stage to maintain policy continuity and business stability, and this arrangement will be regularly reviewed[78](index=78&type=chunk)[79](index=79&type=chunk) [Code for Securities Transactions by Directors](index=32&type=section&id=%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E4%B9%8B%E5%AE%88%E5%89%87) The Company adopted a code for directors' securities transactions no less exacting than the Listing Rules' Model Code, and all directors confirmed compliance throughout the period. - The Company adopted a code for directors' securities transactions no less exacting than the Model Code set out in Appendix C3 of the Listing Rules[80](index=80&type=chunk) - All directors confirmed compliance with the standards of the Model Code and the Company's own code for the six months ended June 30, 2025[80](index=80&type=chunk)

Group 1 - The company, Zhongqi Group (01932.HK), announced that it will hold a board meeting on August 28, 2025, to approve the publication of its interim results for the six months ending June 30, 2025 [1] - The board meeting will also consider the distribution of an interim dividend, if applicable [1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概 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。 於本公告日期，董事會成員 包 括 執行董事 徐浩銓先生 及 李廣中先生 ； 非執行董事麥志華先生；以及獨立非執行董事蔡裕民先生、夏軍先生及 孟金霞女士。 代表董事會 中漆集團有限公司 公司秘書 霍碧儀 香港，二零二五年八月十五日 董事會會議召開日期 中漆集團有限公司（「本公司」）董事會（「董事會」）宣佈，本公司將於 二零二五年八月二十八日（星期四）舉行董事會會議，藉以（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，以及考 慮派發中期股息 （如有）。 ...