[Corporate Information](index=2&type=section&id=Corporate%20Information) [Company Overview](index=3&type=section&id=Company%20Overview) This section outlines the company's basic information, including board members, committee structures, registered office, listing venue, and production base - Executive Directors include Mr. Poon Siu Lung (Chairman and Chief Executive Officer) and Mr. Ho Pak Yiu[4](index=4&type=chunk) - The company's shares have been listed on The Stock Exchange of Hong Kong Limited since February 5, 2013, with stock code **2078**[5](index=5&type=chunk)[7](index=7&type=chunk)[29](index=29&type=chunk) - The principal place of business in Hong Kong is in Kwun Tong, Kowloon, with the production base in Nanyang City, Henan Province, China[7](index=7&type=chunk) [Financial Highlights and Key Financial Ratios](index=4&type=section&id=Financial%20Highlights%20and%20Key%20Financial%20Ratios) [Key Financial Performance](index=5&type=section&id=Key%20Financial%20Performance) For the six months ended June 30, 2025, the company's financial performance significantly declined, shifting from a profit to a loss Key Financial Data for the Six Months Ended June 30, 2025 | Metric | Six Months Ended June 30, 2025 (Unaudited) | Six Months Ended June 30, 2024 (Unaudited) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue (HK$ million) | 242.8 | 433.9 | -44.0% | | Gross Profit (HK$ million) | 28.7 | 74.6 | -61.5% | | Gross Profit Margin | 11.8% | 17.2% | -31.3% | | (Loss)/Profit for the Period (HK$ million) | (26.4) | 5.9 | -547.5% | | EBITDA (HK$ million) | 5.2 | 35.3 | -85.4% | | (Loss)/Earnings Per Share (HK cents) | (2.20) | 0.49 | | [Key Financial Ratios](index=5&type=section&id=Key%20Financial%20Ratios) The company's return on equity and interest coverage ratio turned negative, indicating a significant deterioration in profitability and solvency Key Financial Ratios for the Six Months Ended June 30, 2025 | Metric | Six Months Ended June 30, 2025 (Unaudited) | Six Months Ended June 30, 2024 (Unaudited) | | :--- | :--- | :--- | | Return on Equity | -3.58% | 0.82% | | Interest Coverage Ratio | (7.69) | 2.03 | - The Board did not declare an interim dividend for the six months ended June 30, 2025 (2024: nil)[15](index=15&type=chunk) [Condensed Consolidated Interim Financial Information](index=6&type=section&id=Condensed%20Consolidated%20Interim%20Financial%20Information) [Condensed Consolidated Interim Statement of Financial Position](index=7&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets and liabilities decreased, with significant reductions in current assets and liabilities, and a slight decrease in equity attributable to owners of the company Condensed Consolidated Interim Statement of Financial Position (HK$ thousand) | Metric | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | **Assets** | | | | Non-current assets | 557,881 | 606,621 | | Current assets | 588,670 | 807,408 | | **Total Assets** | **1,146,551** | **1,414,029** | | **Equity** | | | | Total equity attributable to owners of the company | 708,917 | 731,900 | | **Liabilities** | | | | Non-current liabilities | 34,340 | 14,771 | | Current liabilities | 403,294 | 667,358 | | **Total Liabilities** | **437,634** | **682,129** | | **Total Equity and Liabilities** | **1,146,551** | **1,414,029** | [Condensed Consolidated Interim Statement of Comprehensive Income](index=9&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group shifted from a profit to a loss, primarily due to a significant decline in revenue and gross profit, despite increases in other income and net other gains Condensed Consolidated Interim Statement of Comprehensive Income (HK$ thousand) | Metric | Six Months Ended June 30, 2025 (Unaudited) | Six Months Ended June 30, 2024 (Unaudited) | | :--- | :--- | :--- | | Revenue | 242,783 | 433,942 | | Cost of sales | (214,093) | (359,320) | | Gross profit | 28,690 | 74,622 | | Distribution and selling expenses | (8,377) | (12,359) | | Administrative expenses | (57,441) | (69,704) | | Other income | 4,977 | 4,268 | | Other gains – net | 4,881 | 4,461 | | Finance income – net | 1,881 | 4,608 | | (Loss)/Profit before income tax | (25,389) | 5,896 | | Income tax | (1,005) | – | | **(Loss)/Profit for the period** | **(26,394)** | **5,896** | | Exchange differences | 2,326 | (5,695) | | Exchange differences reclassified to profit or loss | 1,085 | – | | **Total comprehensive (loss)/income for the period** | **(22,983)** | **201** | [Condensed Consolidated Interim Statement of Changes in Equity](index=10&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, the company's total equity decreased due to the loss for the period, partially offset by other comprehensive income from exchange differences Condensed Consolidated Interim Statement of Changes in Equity (HK$ thousand) | Metric | January 1, 2025 (Audited) | Loss for the period | Other comprehensive income | Transfer upon lapse of share options | June 30, 2025 (Unaudited) | | :--- | :--- | :--- | :--- | :--- | :--- | | Share capital | 120,000 | – | – | – | 120,000 | | Share premium | 1,001,287 | – | – | – | 1,001,287 | | Shares held for share award scheme | (774) | – | – | – | (774) | | Share option reserve | 3,124 | – | – | (38) | 3,086 | | Other reserves | (87,519) | – | 3,411 | – | (84,108) | | Accumulated losses | (304,218) | (26,394) | – | 38 | (330,574) | | **Total Equity** | **731,900** | **(26,394)** | **3,411** | **–** | **708,917** | [Condensed Consolidated Interim Statement of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, the Group experienced net cash outflows from both operating and financing activities, leading to a significant reduction in cash and cash equivalents Condensed Consolidated Interim Statement of Cash Flows (HK$ thousand) | Metric | Six Months Ended June 30, 2025 (Unaudited) | Six Months Ended June 30, 2024 (Unaudited) | | :--- | :--- | :--- | | Net cash (used in)/generated from operating activities | (114,157) | 109,742 | | Cash generated from investing activities | 28,256 | 31,153 | | Net cash (used in)/generated from financing activities | (40,572) | 56,514 | | **Net (decrease)/increase in cash and cash equivalents** | **(126,473)** | **197,409** | | Cash and cash equivalents at beginning of period | 290,996 | 226,239 | | Cash and cash equivalents at end of period | 169,162 | 420,812 | [Notes to the Condensed Consolidated Interim Financial Statements](index=11&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) [1 GENERAL INFORMATION](index=12&type=section&id=1%20GENERAL%20INFORMATION) The Group primarily manufactures and trades aluminum products, was incorporated in 2005, and listed on the HKEX in 2013, with this interim report reviewed by the Audit Committee - The Group is principally engaged in the manufacturing and trading of aluminum products[28](index=28&type=chunk) - The company's shares have been listed on The Stock Exchange of Hong Kong Limited since February 5, 2013[29](index=29&type=chunk) [2 BASIS OF PREPARATION](index=12&type=section&id=2%20BASIS%20OF%20PREPARATION) These interim financial statements are prepared in accordance with HKAS 34 and the Listing Rules, applying consistent accounting policies with the 2024 annual financial statements, except for expected changes in 2025 - The unaudited condensed consolidated interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the HKICPA and comply with the applicable disclosure requirements of the Listing Rules[30](index=30&type=chunk)[34](index=34&type=chunk) [3 ACCOUNTING POLICIES](index=13&type=section&id=3%20ACCOUNTING%20POLICIES) Accounting policies for this period are consistent with the 2024 annual consolidated financial statements, except for HKAS 21 amendments on lack of exchangeability, which had no significant impact - The adoption of amendments to HKAS 21 "Lack of Exchangeability" had no significant financial impact on the Group's condensed consolidated interim financial statements[36](index=36&type=chunk) [4 FINANCIAL RISK MANAGEMENT](index=14&type=section&id=4%20FINANCIAL%20RISK%20MANAGEMENT) The Group faces market, credit, and liquidity risks with unchanged policies since year-end, using futures contracts to hedge aluminum price volatility, though fair value gains on derivatives significantly decreased this period - The Group's operations involve various financial risks: market risk, credit risk, and liquidity risk, with no changes in risk management policies since the last reporting date[40](index=40&type=chunk) - The Group has entered into futures contracts traded on the Shanghai Futures Exchange to mitigate risks arising from aluminum price fluctuations[43](index=43&type=chunk) Fair Value Gains on Derivative Financial Instruments (HK$ thousand) | Metric | Period Ended June 30, 2025 | Period Ended June 30, 2024 | | :--- | :--- | :--- | | Fair value gains on derivative financial instruments | 131 | 2,924 | [5 CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS](index=15&type=section&id=5%20CRITICAL%20ACCOUNTING%20ESTIMATES%20AND%20JUDGMENTS) The significant judgments and key sources of estimation uncertainty applied by management in preparing the interim financial information are consistent with those used for the consolidated financial information for the year ended December 31, 2024 - The significant judgments and key sources of estimation uncertainty applied by management in the Group's accounting policies are consistent with those used for the consolidated financial information for the year ended December 31, 2024[50](index=50&type=chunk) [6 REVENUE AND SEGMENT INFORMATION](index=16&type=section&id=6%20REVENUE%20AND%20SEGMENT%20INFORMATION) The Group operates in one segment: manufacturing and trading aluminum products, with current period revenue primarily from Vietnam and China, but total revenue significantly decreased year-on-year - The Group has identified one operating segment: the manufacturing and trading of aluminum products[52](index=52&type=chunk) Revenue by Geographical Region (HK$ thousand) | Region | Six Months Ended June 30, 2025 (Unaudited) | Six Months Ended June 30, 2024 (Unaudited) | | :--- | :--- | :--- | | Vietnam | 158,543 | 287,550 | | China | 68,569 | 92,509 | | Australia | 6,924 | 16,488 | | Other regions | 8,747 | 37,395 | | **Total** | **242,783** | **433,942** | [7 PROPERTY, PLANT AND EQUIPMENT](index=17&type=section&id=7%20PROPERTY%2C%20PLANT%20AND%20EQUIPMENT) As of June 30, 2025, the Group's net book value of property, plant, and equipment decreased, primarily due to depreciation, despite new additions Changes in Property, Plant and Equipment (HK$ thousand) | Metric | Six Months Ended June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Net book value at beginning of period | 362,934 | 425,345 | | Additions | 3,655 | 2,440 | | Disposals | (2,848) | (1,283) | | Depreciation | (27,820) | (58,401) | | **Net book value at end of period** | **337,743** | **362,934** | [8 TRADE RECEIVABLES](index=17&type=section&id=8%20TRADE%20RECEIVABLES) As of June 30, 2025, net trade receivables significantly decreased, with most receivables neither past due nor impaired, and a credit period of 30 to 90 days Trade Receivables (HK$ thousand) | Metric | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Trade receivables | 292,848 | 356,220 | | Less: Impairment losses recognized | (132,910) | (129,770) | | **Trade receivables – net** | **159,938** | **226,450** | - As of June 30, 2025, trade receivables of approximately **HK$159.9 million** were neither past due nor impaired[62](index=62&type=chunk) [9 SHARE CAPITAL](index=18&type=section&id=9%20SHARE%20CAPITAL) As of June 30, 2025, the company's issued share capital remained unchanged at HK$120 million, comprising 1.2 billion ordinary shares of HK$0.10 each Share Capital Information (HK$ thousand) | Metric | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Number of issued and fully paid shares (thousands) | 1,200,000 | 1,200,000 | | Issued and fully paid share capital (HK$ thousand) | 120,000 | 120,000 | [10 SHARE OPTION SCHEME](index=19&type=section&id=10%20SHARE%20OPTION%20SCHEME) The company's share option scheme expired on January 18, 2023, with no new options granted this period, and 280,000 employee options lapsed, reducing the total outstanding options - The company's share option scheme expired on January 18, 2023, and there are currently no other effective share option schemes[67](index=67&type=chunk) Share Option Movement Details | Grantee Category | Balance at January 1, 2025 | Lapsed during the period | Balance at June 30, 2025 | | :--- | :--- | :--- | :--- | | Directors | 2,400,000 | – | 2,400,000 | | Employees | 8,032,000 | (280,000) | 7,752,000 | | Service providers | 10,800,000 | – | 10,800,000 | | **Total** | **21,232,000** | **(280,000)** | **20,952,000** | [11 Borrowings](index=21&type=section&id=11%20Borrowings) As of June 30, 2025, the Group's total borrowings decreased, with an increase in non-current borrowings, a lower effective annual interest rate, and all borrowings secured by company and director guarantees, and certain assets and bank deposits Borrowings (HK$ thousand) | Category | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Current bank loans | 182,601 | 251,633 | | Non-current bank loans | 34,340 | – | | **Total** | **216,941** | **251,633** | - As of June 30, 2025, the effective annual interest rate for interest-bearing borrowings was **3.23%** (December 31, 2024: 4.03%)[72](index=72&type=chunk) - The Group's non-current bank loans of approximately **HK$34.34 million** include covenants requiring one subsidiary to maintain a debt-to-asset ratio above 70%[73](index=73&type=chunk) [12 TRADE AND BILLS PAYABLES](index=22&type=section&id=12%20TRADE%20AND%20BILLS%20PAYABLES) As of June 30, 2025, the Group's total trade and bills payables decreased, with the majority due within 30 days Aging Analysis of Trade and Bills Payables (HK$ thousand) | Aging | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | 0-30 days | 6,917 | 7,241 | | 31-60 days | 847 | 2,363 | | 61-90 days | 277 | 439 | | Over 90 days | 2,604 | 2,270 | | **Total** | **10,645** | **12,313** | [13 (LOSS)/PROFIT BEFORE INCOME TAX](index=23&type=section&id=13%20%28LOSS%29%2FPROFIT%20BEFORE%20INCOME%20TAX) For the six months ended June 30, 2025, the Group recorded a loss before income tax, primarily influenced by inventory costs, employee benefits, and depreciation, contrasting with a reversal of trade receivables impairment in the prior period Components of (Loss)/Profit Before Income Tax (HK$ thousand) | Metric | Six Months Ended June 30, 2025 (Unaudited) | Six Months Ended June 30, 2024 (Unaudited) | | :--- | :--- | :--- | | Cost of inventories recognized | 214,093 | 359,320 | | Employee benefits expense | 32,920 | 34,138 | | Depreciation of property, plant and equipment | 27,820 | 29,695 | | Impairment loss allowance for trade receivables (reversal) | 3,120 | (7,282) | [14 OTHER GAINS – NET](index=24&type=section&id=14%20OTHER%20GAINS%20%E2%80%93%20NET) For the six months ended June 30, 2025, the Group's net other gains increased, driven by higher net exchange gains, but fair value gains on derivative financial instruments significantly decreased Other Gains – Net (HK$ thousand) | Metric | Six Months Ended June 30, 2025 (Unaudited) | Six Months Ended June 30, 2024 (Unaudited) | | :--- | :--- | :--- | | Net exchange gains | 4,079 | 1,537 | | Fair value gains on derivative financial instruments | 131 | 2,924 | | Gain on derecognition of a subsidiary | 1,087 | – | | **Total** | **4,881** | **4,461** | [15 FINANCE INCOME – NET](index=24&type=section&id=15%20FINANCE%20INCOME%20%E2%80%93%20NET) For the six months ended June 30, 2025, the Group's net finance income decreased, primarily due to lower interest income from bank deposits, alongside reduced finance costs Finance Income – Net (HK$ thousand) | Metric | Six Months Ended June 30, 2025 (Unaudited) | Six Months Ended June 30, 2024 (Unaudited) | | :--- | :--- | :--- | | Interest income from bank deposits | 4,802 | 10,343 | | Interest expense on borrowings | (2,706) | (5,659) | | **Finance income – net** | **1,881** | **4,608** | [16 INCOME TAX](index=25&type=section&id=16%20INCOME%20TAX) For the six months ended June 30, 2025, no Hong Kong profits tax was provided due to sufficient tax losses, with income tax expense mainly from under-provision for prior year Australian and Chinese enterprise income tax, where one Chinese subsidiary enjoys a 15% preferential tax rate - No provision for Hong Kong profits tax was made for the six months ended June 30, 2025, due to sufficient tax losses to offset assessable profits[84](index=84&type=chunk) - One of the company's Chinese subsidiaries qualified as a high-tech enterprise in December 2022, enjoying a **15%** preferential income tax rate for three years[85](index=85&type=chunk) Income Tax (HK$ thousand) | Metric | Six Months Ended June 30, 2025 (Unaudited) | Six Months Ended June 30, 2024 (Unaudited) | | :--- | :--- | :--- | | China enterprise income tax – over-provision in prior years | 47 | – | | Overseas tax – over-provision in prior years | 958 | – | | **Income tax** | **1,005** | **–** | [17 DIVIDENDS](index=25&type=section&id=17%20DIVIDENDS) The company did not declare any dividends for the six months ended June 30, 2025, or 2024 - The company did not declare any dividends for the six months ended June 30, 2025, or 2024[88](index=88&type=chunk) [18 (LOSS)/EARNINGS PER SHARE ATTRIBUTABLE TO OWNERS OF THE COMPANY](index=26&type=section&id=18%20%28LOSS%29%2FEARNINGS%20PER%20SHARE%20ATTRIBUTABLE%20TO%20OWNERS%20OF%20THE%20COMPANY) For the six months ended June 30, 2025, the company reported a basic loss per share of **2.20 HK cents**, compared to earnings per share of **0.49 HK cents** in the prior period, with diluted loss per share not assuming exercise of share options due to their higher exercise price (Loss)/Earnings Per Share (HK cents) | Metric | Six Months Ended June 30, 2025 (Unaudited) | Six Months Ended June 30, 2024 (Unaudited) | | :--- | :--- | :--- | | (Loss)/Profit attributable to owners of the company (HK$ thousand) | (26,394) | 5,896 | | Basic (loss)/earnings per share (HK cents) | (2.20) | 0.49 | - The calculation of diluted (loss)/earnings per share for the six months ended June 30, 2025, and 2024, did not assume the exercise of the company's outstanding share options, as their exercise price exceeded the average market price during the period[94](index=94&type=chunk) [19 CAPITAL COMMITMENTS](index=27&type=section&id=19%20CAPITAL%20COMMITMENTS) As of June 30, 2025, the Group's contracted but unprovided capital commitments increased, primarily related to machinery purchases Capital Commitments (HK$ thousand) | Metric | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Contracted but not provided for – property, plant and equipment | 20,244 | 16,171 | [20 RELATED PARTY TRANSACTIONS](index=27&type=section&id=20%20RELATED%20PARTY%20TRANSACTIONS) For the six months ended June 30, 2025, key management personnel compensation, including salaries, bonuses, allowances, and defined contribution plan contributions, increased Key Management Personnel Compensation (HK$ thousand) | Metric | Six Months Ended June 30, 2025 (Unaudited) | Six Months Ended June 30, 2024 (Unaudited) | | :--- | :--- | :--- | | Salaries, bonuses and allowances | 3,315 | 2,668 | | Defined contribution plan contributions | 208 | 87 | | **Total** | **3,523** | **2,755** | [Management Discussion and Analysis](index=27&type=section&id=Management%20Discussion%20and%20Analysis) [PERFORMANCE OVERVIEW](index=28&type=section&id=PERFORMANCE%20OVERVIEW) In the first half of 2025, the Group's performance was significantly impacted by geopolitical tensions, changing trade policies, slow economic recovery, and industry oversupply, leading to substantial declines in sales volume, revenue, and gross profit, resulting in a loss - In the first half of 2025, the Group's performance was primarily affected by ongoing geopolitical tensions, evolving trade policies, and a slower-than-expected economic recovery in several key markets[103](index=103&type=chunk) H1 2025 Performance Overview | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Sales Volume (tonnes) | 7,351 | (Not provided) | -46.1% | | Revenue (HK$ million) | 242.8 | 433.9 | -44.0% | | Gross Profit Margin | 11.8% | 17.2% | | | Loss Attributable to Owners of the Company (HK$ million) | 26.4 | 5.9 (Profit) | -547.5% | [Revenue Analysis](index=28&type=section&id=Revenue) The Group's revenue significantly decreased across all product categories (solar frames, consumer electronics, electric vehicles, industrial products) and geographical regions (Vietnam, China, Australia, other regions), primarily due to weak market sentiment and reduced order volumes Revenue by Product Category (HK$ million) | Product Category | Six Months Ended June 30, 2025 | Share (%) | Six Months Ended June 30, 2024 | Share (%) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Solar Frames | 158.1 | 65.1% | 296.1 | 68.2% | -46.6% | | Consumer Electronics | 17.7 | 7.3% | 35.2 | 8.1% | -49.7% | | Electric Vehicles | 40.3 | 16.6% | 44.3 | 10.2% | -9.0% | | Industrial Products | 26.7 | 11.0% | 58.3 | 13.5% | -54.2% | Revenue by Geographical Location (HK$ million) | Region | Six Months Ended June 30, 2025 | Share (%) | Six Months Ended June 30, 2024 | Share (%) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Vietnam | 158.5 | 65.3% | 287.5 | 66.3% | -44.9% | | China | 68.6 | 28.3% | 92.5 | 21.3% | -25.8% | | Australia | 6.9 | 2.8% | 16.5 | 3.8% | -58.2% | | Other Regions | 8.8 | 3.6% | 37.4 | 8.6% | -76.5% | [Cost of Sales, Gross Profit and Gross Profit Margin](index=29&type=section&id=Cost%20of%20sales%2C%20Gross%20profit%20and%20gross%20profit%20margin) Cost of sales contracted with declining sales, but gross profit and gross profit margin both significantly decreased due to reduced order volumes limiting cost absorption and changes in product mix Cost of Sales, Gross Profit and Gross Profit Margin (HK$ million) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Cost of Sales | 214.1 | 359.3 | -40.4% | | Gross Profit | 28.7 | 74.6 | | | Gross Profit Margin | 11.8% | 17.2% | | [Operating Expenses and Other Income](index=30&type=section&id=Operating%20Expenses%20and%20Other%20Income) Distribution and selling expenses decreased with lower sales, while administrative expenses fell mainly due to reduced R&D costs; other income increased from subcontractor claims, and net other gains rose from exchange gains, but fair value gains on derivative financial instruments significantly declined, with both finance income and costs decreasing Operating Expenses and Other Income (HK$ million) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Distribution and selling expenses | 8.4 | 12.4 | | Administrative expenses | 57.4 | 69.7 | | Other income | 5.0 | 4.3 | | Other gains – net | 4.9 | 4.5 | | Finance income | 4.8 | 10.3 | | Finance costs | 2.9 | 5.7 | - Administrative expenses decreased primarily due to a reduction of approximately **HK$11.6 million** in research and development costs compared to the prior period in 2024[121](index=121&type=chunk) - Fair value gains on derivative financial instruments (aluminum futures contracts) decreased from approximately **HK$2.9 million** in the prior period of 2024 to approximately **HK$0.1 million** in the current period[124](index=124&type=chunk) [Income tax](index=31&type=section&id=Income%20tax) Income tax expense for the period was approximately **HK$1.0 million**, mainly due to under-provision for prior year Australian and Chinese enterprise income tax, with no Hong Kong profits tax provided due to sufficient tax losses - Income tax expense for the period was approximately **HK$1.0 million**, primarily due to under-provision for Australian profits tax and Chinese enterprise income tax in prior years[135](index=135&type=chunk) [PROSPECT](index=31&type=section&id=PROSPECT) The Group anticipates ongoing market challenges but plans to strengthen its market position and achieve sustainable growth by enhancing technology, improving efficiency, strictly controlling costs, optimizing product mix, expanding high-value offerings, and prudently managing credit risk - The current market environment, including weak demand in certain areas, changes in product mix, and macroeconomic uncertainties, is expected to persist[136](index=136&type=chunk) - The Group has strengthened its technological and engineering capabilities, implemented internal efficiency improvements, reinforced cost control measures, and explored diversified growth avenues[137](index=137&type=chunk) - Future focus will be on optimizing the product portfolio, expanding high-value product offerings, and exploring untapped market segments where technological expertise can provide a competitive advantage[138](index=138&type=chunk) [Other Information](index=32&type=section&id=Other%20Information) [LIQUIDITY AND FINANCIAL RESOURCES](index=32&type=section&id=LIQUIDITY%20AND%20FINANCIAL%20RESOURCES) As of June 30, 2025, the Group's cash and cash equivalents, pledged bank deposits, and interest-bearing borrowings all decreased compared to year-end 2024, with operations primarily funded by internal cash flow and borrowings Liquidity and Financial Resources (HK$ million) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | 169.2 | 291.0 | | Pledged bank deposits | 7.8 | 34.8 | | Interest-bearing borrowings | 216.9 | 251.6 | [CHARGES ON ASSET](index=32&type=section&id=CHARGES%20ON%20ASSET) As of June 30, 2025, approximately **HK$360.0 million** of the Group's assets, including property, plant and equipment, right-of-use assets, and bank deposits, were pledged as collateral for the Group's borrowings, an increase from year-end 2024 - As of June 30, 2025, assets with a total carrying value of approximately **HK$360.0 million** (December 31, 2024: approximately **HK$305.9 million**), including property, plant and equipment, right-of-use assets, and bank deposits, were pledged as collateral for the Group's borrowings[150](index=150&type=chunk) [CAPITAL STRUCTURE](index=32&type=section&id=CAPITAL%20STRUCTURE) As of June 30, 2025, and December 31, 2024, the company's issued share capital remained stable at **HK$120 million**, divided into 1.2 billion shares of **HK$0.1** each - As of June 30, 2025, and December 31, 2024, the company's issued share capital was **HK$120 million**, divided into **1.2 billion** shares of **HK$0.1** each[145](index=145&type=chunk) [FOREIGN EXCHANGE AND OTHER RISK](index=32&type=section&id=FOREIGN%20EXCHANGE%20AND%20OTHER%20RISK) The Group faces foreign exchange risk from USD to RMB fluctuations, as sales are settled in USD and RMB while raw material purchases are primarily in RMB, with no hedging measures currently in place - Fluctuations in the exchange rate between the US dollar and Renminbi, an inconvertible currency, may impact the Group's results, and currently, the Group has not entered into any agreements or purchased any instruments to hedge its exchange rate risk[146](index=146&type=chunk) [CAPITAL COMMITMENTS](index=32&type=section&id=CAPITAL%20COMMITMENTS) As of June 30, 2025, the Group's contracted but unprovided capital commitments in the consolidated financial statements amounted to approximately **HK$20.2 million**, primarily for machinery purchases, an increase from year-end 2024 - As of June 30, 2025, the Group's contracted but unprovided capital commitments in the consolidated financial statements were approximately **HK$20.2 million** (December 31, 2024: approximately **HK$16.2 million**), primarily involving the purchase of machinery[147](index=147&type=chunk) [CONTINGENT LIABILITIES](index=32&type=section&id=CONTINGENT%20LIABILITIES) As of June 30, 2025, the Group had no contingent liabilities - As of June 30, 2025, the Group had no contingent liabilities (December 31, 2024: nil)[148](index=148&type=chunk) [SIGNIFICANT INVESTMENT, MATERIAL ACQUISITION AND DISPOSAL](index=33&type=section&id=SIGNIFICANT%20INVESTMENT%2C%20MATERIAL%20ACQUISITION%20AND%20DISPOSAL) During the period, the Group did not undertake any significant investments, material acquisitions, or disposals of subsidiaries, associates, or joint ventures - During the period, the Group had no significant investments, material acquisitions, or disposals of subsidiaries, associates, or joint ventures[155](index=155&type=chunk) [FUTURE PLANS FOR MATERIAL INVESTMENTS OR CAPITAL ASSETS](index=33&type=section&id=FUTURE%20PLANS%20FOR%20MATERIAL%20INVESTMENTS%20OR%20CAPITAL%20ASSETS) As of June 30, 2025, the Group had no future plans for material investments or capital asset purchases beyond those disclosed in the "Prospect" section - As of June 30, 2025, the Group had no future plans for material investments or capital asset purchases other than those disclosed in the "Prospect" section[156](index=156&type=chunk) [EMPLOYEE INFORMATION AND REMUNERATION POLICIES](index=33&type=section&id=EMPLOYEE%20INFORMATION%20AND%20REMUNERATION%20POLICIES) As of June 30, 2025, the Group's total full-time employees decreased to **615**, with competitive remuneration policies, various benefits, and training opportunities, and a slight decrease in staff costs for the period Number of Full-time Employees | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of full-time employees | 615 | 720 | - During the period, the Group incurred staff costs (including directors' emoluments) of approximately **HK$32.9 million** (2024: approximately **HK$34.1 million**)[157](index=157&type=chunk) [EVENT AFTER REPORTING PERIOD](index=33&type=section&id=EVENT%20AFTER%20REPORTING%20PERIOD) The Directors are unaware of any significant events after June 30, 2025, up to the date of this report that require disclosure - The Directors are unaware of any significant events that have occurred after June 30, 2025, up to the date of this report that require disclosure[158](index=158&type=chunk) [INTERIM DIVIDEND](index=34&type=section&id=INTERIM%20DIVIDEND) At the Board meeting held on August 25, 2025, the Board did not declare an interim dividend for the period - At the Board meeting held on August 25, 2025, the Board did not declare an interim dividend for the period[164](index=164&type=chunk) [SHARE OPTION SCHEME](index=34&type=section&id=SHARE%20OPTION%20SCHEME) The company's share option scheme expired on January 18, 2023, with no new options granted this period, and 280,000 employee options lapsed, reducing the total outstanding options - The company's share option scheme expired on January 18, 2023, and there are currently no other effective share option schemes[167](index=167&type=chunk) Share Option Movement Details | Grantee Category | Balance at January 1, 2025 | Lapsed during the period | Balance at June 30, 2025 | | :--- | :--- | :--- | :--- | | Directors | 2,400,000 | – | 2,400,000 | | Employees | 8,032,000 | (280,000) | 7,752,000 | | Service providers | 10,800,000 | – | 10,800,000 | | **Total** | **21,232,000** | **(280,000)** | **20,952,000** | [SHARE AWARD SCHEME](index=36&type=section&id=SHARE%20AWARD%20SCHEME) The company revised its share award scheme on March 1, 2024, to recognize and retain selected employees, with no award shares granted, vested, cancelled, or lapsed during the period - The company adopted a share award scheme on March 3, 2014, and revised it on March 1, 2024, to recognize and encourage selected employees' contributions and retain them for the Group's continued operations and development[172](index=172&type=chunk)[174](index=174&type=chunk) - No award shares were granted, vested, cancelled, or lapsed under the share award scheme during the period[178](index=178&type=chunk) [INTERESTS AND SHORT POSITIONS OF THE DIRECTORS AND CHIEF EXECUTIVES OF THE COMPANY IN THE SHARES, UNDERLYING SHARES AND DEBENTURES](index=37&type=section&id=INTERESTS%20AND%20SHORT%20POSITIONS%20OF%20THE%20DIRECTORS%20AND%20CHIEF%20EXECUTIVES%20OF%20THE%20COMPANY%20IN%20THE%20SHARES%2C%20UNDERLYING%20SHARES%20AND%20DEBENTURES) As of June 30, 2025, Mr. Poon Siu Lung held **75%** of the company's shares through a family trust, while Dr. Cheung Wah Keung and Mr. Chan Kai Ning held **0.10%** each through share options, with no short positions disclosed Directors' Long Positions in Shares | Director Name | Nature of Interest | Number of Ordinary Shares | Number of Underlying Shares Held via Share Options | Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | :--- | | Mr. Poon Siu Lung | Other (through trust) | 900,000,000 | – | 75% | | Dr. Cheung Wah Keung | Beneficial owner | – | 1,200,000 | 0.10% | | Mr. Chan Kai Ning | Beneficial owner | – | 1,200,000 | 0.10% | [SUBSTANTIAL SHAREHOLDERS' INTERESTS AND SHORT POSITIONS](index=38&type=section&id=SUBSTANTIAL%20SHAREHOLDERS%27%20INTERESTS%20AND%20SHORT%20POSITIONS) As of June 30, 2025, substantial shareholders included Easy Star Holdings Limited, Marina Star Limited, and Genesis Trust & Corporate Services Ltd., each holding **75%** of the company's shares and linked to Mr. Poon Siu Lung's family trust, with no other substantial shareholders or short positions disclosed Substantial Shareholders' Long Positions in Shares | Name/Company Name | Capacity | Number of Shares | Approximate Percentage of Equity Interest | | :--- | :--- | :--- | :--- | | Easy Star Holdings Limited | Beneficial owner | 900,000,000 | 75% | | Marina Star Limited | Interest in controlled corporation | 900,000,000 | 75% | | Genesis Trust & Corporate Services Ltd. | Trustee | 900,000,000 | 75% | [CORPORATE GOVERNANCE PRACTICES](index=39&type=section&id=CORPORATE%20GOVERNANCE%20PRACTICES) The Group generally complies with the Corporate Governance Code, but the roles of Chairman and Chief Executive Officer are combined in Mr. Poon Siu Lung, deviating from Code Provision C.2.1, which the Board believes facilitates efficient decision-making and will be regularly reviewed - The Group has generally applied the principles and complied with the code provisions of the Corporate Governance Code set out in Appendix C1 to the Listing Rules, except for Code Provision C.2.1, where the roles of Chairman and Chief Executive Officer are combined in Mr. Poon Siu Lung[201](index=201&type=chunk)[202](index=202&type=chunk)[203](index=203&type=chunk) [MODEL CODE FOR SECURITIES TRANSACTIONS BY DIRECTORS](index=39&type=section&id=MODEL%20CODE%20FOR%20SECURITIES%20TRANSACTIONS%20BY%20DIRECTORS) All Directors have confirmed their compliance with the Model Code for Securities Transactions by Directors of Listed Issuers throughout the period - Following specific inquiries, all Directors have confirmed their compliance with the provisions of the Model Code throughout the period[204](index=204&type=chunk) [CHANGES OF DIRECTORS' INFORMATION](index=40&type=section&id=CHANGES%20OF%20DIRECTORS%27%20INFORMATION) Effective July 1, 2025, Executive Director Mr. Ho Pak Yiu resigned, and Non-executive Director Ms. Lam Yuen Man was appointed as a member of the Nomination Committee - Effective July 1, 2025, Executive Director Mr. Ho Pak Yiu resigned, and Non-executive Director Ms. Lam Yuen Man was appointed as a member of the company's Nomination Committee[209](index=209&type=chunk) [PURCHASE, SALE OR REDEMPTION OF THE COMPANY'S SHARES](index=40&type=section&id=PURCHASE%2C%20SALE%20OR%20REDEMPTION%20OF%20THE%20COMPANY%27S%20SHARES) During the period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any listed securities - During the period, neither the company nor any of its subsidiaries redeemed any of its listed securities, nor did the company or any of its subsidiaries purchase or sell any of the company's listed securities[211](index=211&type=chunk) [SUFFICIENCY OF PUBLIC FLOAT](index=40&type=section&id=SUFFICIENCY%20OF%20PUBLIC%20FLOAT) As of the date of this report, the company maintained a sufficient public float as required by the Listing Rules - Based on information available to the company and to the best of the Directors' knowledge, as of the date of this report, the company maintained a sufficient public float as required by the Listing Rules[212](index=212&type=chunk) [AUDIT COMMITTEE](index=40&type=section&id=AUDIT%20COMMITTEE) The Audit Committee, comprising three independent non-executive directors, reviews and oversees the Group's financial reporting and internal controls, and has reviewed and recommended the adoption of the unaudited consolidated interim financial statements for the period - The Audit Committee, comprising three independent non-executive directors including Dr. Cheung Wah Keung, Mr. Chan Kai Ning, and Mr. Man Yiu Kwong, reviews and oversees the Group's financial reporting process and internal control system[213](index=213&type=chunk) - The company's Audit Committee and management have reviewed the accounting principles and practices adopted by the Group, as well as the unaudited consolidated interim financial statements for the period, and recommended their adoption by the Board[214](index=214&type=chunk)[220](index=220&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 對 因 本 公 告 全部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責 任。 PanAsialum Holdings Company Limited 榮陽實業集團有限公司 （於開曼群島註冊成立的有限公司） （股份代號：2078） 內幕消息 有關客戶訂單的更新 本 公 告 乃 榮 陽 實 業 集 團 有 限 公 司（「本公司」，連 同 其 附 屬 公 司，統 稱 為「本集團」） 根 據 香 港 聯 合 交 易 所 有 限 公 司 證 券 上 市 規 則（「上市規則」）第13.09條以及香港 法例第571章 證 券 及 期 貨 條 例（「證券及期貨條例」）第XIVA部項下內幕消息條文 （定 義 見 上 市 規 則）而 作 出。 本 公 司 董 事 會（「董事會」）謹 此 通 知 本 公 司 股 東（「股 東」）及 潛 在 投 資 者，於 二 零 二 五 年 七 月 中 本 集 團 向 客 戶 提 供 報 價 後，直 至 本 公 ...

Summary of Key Points Core Viewpoint - As of September 4, 60 stocks reached their 52-week highs, indicating a positive market trend with notable performances from specific companies such as Gaoshan Enterprises, Milan Station, and Yongyi International [1]. Group 1: 52-Week Highs - Gaoshan Enterprises (00616) achieved a closing price of 0.350 with a peak of 0.370, marking a high rate of 60.87% [1]. - Milan Station (01150) closed at 0.340, reaching a high of 0.360, with a high rate of 44.00% [1]. - Yongyi International (01218) had a closing price of 3.830 and a peak of 4.100, resulting in a high rate of 17.14% [1]. - Other notable stocks include: - Cheng Tian Jia He (01132) with a high rate of 16.49% [1]. - San Ye Cao Biotechnology - B (02197) with a high rate of 16.46% [1]. - Capital Financial Holdings (08239) with a high rate of 16.28% [1]. Group 2: 52-Week Lows - Wanma Holdings (02935) reached a low of 0.034, reflecting a decline of 25.00% [2]. - Rongyang Industrial (02078) had a closing price of 0.160, with a low of 0.069, indicating a drop of 15.85% [2]. - Energy International Investment (00353) closed at 0.295, reaching a low of 0.275, down by 12.70% [2]. - Other significant declines include: - Qianli Holdings (08367) with a drop of 12.00% [2]. - Yunkang Group (02325) with a decline of 10.71% [2]. - Wanwei International (00167) down by 7.41% [2].

FF301 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8月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 榮陽實業集團有限公司（於開曼群島註冊成立的有限公司） 呈交日期: 2025年9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) | 02078 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 2,400,000,000 | HKD | | 0.1 HKD | | 240,000,000 | | 增加 / 減少 (-) | | | | | | HKD | | | | 本月底結存 | | | 2,400,000,000 | HKD | | 0.1 HKD | | 240,000,000 | 本月底法定/ ...

Group 1 - The company Rongyang Industrial (02078.HK) reported a revenue of HKD 243 million for the six months ending June 30, 2025, representing a year-on-year decline of 44.1% [1] - The company incurred a net loss of HKD 26.394 million, compared to a profit of HKD 5.896 million in the same period last year [1] - The basic loss per share was HKD 0.022 [1]

Core Viewpoint - Rongyang Industrial (02078) reported a significant decline in revenue and a net loss for the six months ending June 30, 2025, primarily due to weak market sentiment and reduced order volumes across key segments [1] Financial Performance - Revenue for the period was HKD 243 million, representing a year-on-year decrease of 44.1% [1] - The company recorded a net loss of HKD 26.39 million, compared to a profit of HKD 5.896 million in the same period last year [1] - Basic loss per share was HKD 0.022 [1] Segment Performance - Solar frame revenue decreased by approximately 46.6% [1] - Consumer electronics revenue fell by about 49.7% [1] - Electric vehicle segment saw a decline of around 9.0% [1] - Industrial products revenue dropped by approximately 54.2% [1] Market Conditions - Overall revenue decline attributed to weak market sentiment and a reduction in order volumes, particularly in the solar frame segment and other major areas experiencing a slowdown [1]

Core Viewpoint - Rongyang Industrial (02078) reported a significant decline in revenue and a net loss for the six months ending June 30, 2025, primarily due to weak market sentiment and reduced order volumes across key segments [1] Financial Performance - Revenue for the period was HKD 243 million, representing a year-on-year decrease of 44.1% [1] - The company recorded a net loss of HKD 26.39 million, compared to a profit of HKD 5.896 million in the same period last year [1] - Basic loss per share was HKD 0.022 [1] Segment Performance - Solar frame revenue decreased by approximately 46.6% [1] - Electronic consumer products revenue fell by about 49.7% [1] - Electric vehicle segment revenue declined by 9.0% [1] - Industrial products revenue saw a significant drop of 54.2% [1]

Core Viewpoint - Rongyang Industrial (02078.HK) reported a significant decline in revenue and an increase in losses for the six months ending June 30, 2025, indicating potential challenges in its operational performance [1] Financial Performance - The company's revenue for the period was approximately HKD 242.8 million, representing a year-on-year decrease of 44.0% [1] - The gross profit margin was about 11.8%, down 5.4% from approximately 17.2% in the same period of 2024 [1] - The loss attributable to the company's owners was approximately HKD 26.4 million, compared to a loss of about HKD 5.9 million in the same period of 2024 [1]

Financial Performance - Revenue for the six months ended June 30, 2025, was approximately HKD 242.8 million, a decrease of 44.0% compared to approximately HKD 433.9 million for the same period in 2024[2]. - Gross profit for the same period was approximately HKD 28.7 million, down 61.5% from approximately HKD 74.6 million in 2024[2]. - Gross margin decreased to approximately 11.8%, down 5.4% from approximately 17.2% in the previous year[2]. - Loss attributable to owners of the company was approximately HKD 26.4 million, compared to a loss of approximately HKD 5.9 million in the same period of 2024[2]. - Basic loss per share was HKD 2.20, compared to earnings of HKD 0.49 per share for the six months ended June 30, 2024[2]. - The company reported a net loss of HKD 26,394,000 for the six months ended June 30, 2025, compared to a profit of HKD 5,896,000 in the previous year[6]. - Basic and diluted loss per share for the period was HKD 0.49, compared to a profit of HKD 0.18 per share in 2024[6]. - The attributable profit for the period was approximately HKD 26.4 million, a significant decrease of about 547.5% compared to HKD 5.9 million for the same period last year[43]. Assets and Liabilities - Total assets as of June 30, 2025, were HKD 1,146.6 million, down from HKD 1,414.0 million as of December 31, 2024[4]. - Total liabilities were HKD 437.6 million as of June 30, 2025, compared to HKD 682.1 million as of December 31, 2024[5]. - Equity attributable to owners of the company was HKD 708.9 million as of June 30, 2025, down from HKD 731.9 million at the end of 2024[4]. - Cash and cash equivalents were HKD 169.2 million, down from HKD 291.0 million as of December 31, 2024[4]. - The total borrowings as of June 30, 2025, were HKD 216,941,000, with a weighted average interest rate of 3.23%, down from 4.03% as of December 31, 2024[28]. - Trade payables as of June 30, 2025, totaled HKD 10,645,000, a decrease from HKD 12,313,000 as of December 31, 2024[32]. Revenue Breakdown - Revenue from Vietnam was HKD 158,543,000, while revenue from China was HKD 68,569,000 for the six months ended June 30, 2025[21]. - Revenue from solar frames was HKD 158.1 million, accounting for 65.1% of total revenue, a decrease of approximately 46.6% year-on-year[45]. - Revenue from electronic consumer products was HKD 17.7 million, accounting for 7.3% of total revenue, a decrease of approximately 49.7% year-on-year[45]. - Revenue from electric vehicles was HKD 40.3 million, accounting for 16.6% of total revenue, a decrease of approximately 9.0% year-on-year[45]. - Revenue from industrial products was HKD 26.7 million, accounting for 11.0% of total revenue, a decrease of approximately 54.2% year-on-year[45]. Expenses - Administrative expenses increased to HKD 69,704,000 from HKD 57,441,000, reflecting a rise of approximately 21%[6]. - Distribution and selling expenses rose to HKD 12,359,000 from HKD 8,377,000, marking an increase of about 47%[6]. - Selling expenses decreased to approximately 8.4 million HKD from 12.4 million HKD in the same period of 2024, primarily due to reduced transportation costs and sales commissions[49]. - Administrative expenses decreased to approximately 57.4 million HKD from 69.7 million HKD in the same period of 2024, mainly due to a reduction in prepaid expenses[50]. Risk Management - The group faces commodity price risk primarily due to fluctuations in aluminum prices, which could impact financial performance[15]. - The group has established risk management policies to mitigate market, credit, and liquidity risks, which have not changed since the last fiscal year-end[13]. - The company has implemented stricter credit controls in the domestic market as part of its risk management strategy[42]. - The geopolitical tensions and changing trade policies have negatively impacted customer confidence and order volumes[42]. Corporate Governance - The financial statements were approved for publication by the board on August 25, 2025, ensuring compliance with relevant regulations[9]. - The audit committee reviewed the accounting principles and practices adopted by the group for the period[74]. - The interim financial results have been reviewed by the audit committee but are unaudited[75]. - The company announced the appointment of new executive directors, including Mr. Pan Zhaolong and Mr. He Baiyao[78]. - The board includes independent non-executive directors, such as Dr. Zhang Huaqiang, Mr. Chen Qinen, and Mr. Wen Yaoguang[78]. Employee and Operational Metrics - Employee costs for the period amounted to approximately HKD 32.9 million, down from HKD 34.1 million in the same period last year[66]. - The group employed approximately 615 employees as of June 30, 2025, a decrease from 720 employees as of December 31, 2024[66]. Future Outlook - The company anticipates continued challenges in the market due to weak demand in several sectors and macroeconomic uncertainties, but is focused on maintaining long-term profitability and creating shareholder value[56].

Core Viewpoint - Rongyang Industrial (02078.HK) will hold a board meeting on August 25, 2025, to consider and approve its unaudited interim results for the six months ending June 30, 2025, and to discuss the proposal for an interim dividend, if any [1] Summary by Category - Company Announcement - The board meeting is scheduled for August 25, 2025 [1] - The meeting will focus on the unaudited interim results for the period ending June 30, 2025 [1] - The board will also consider the proposal for an interim dividend [1]