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: 合豐集團控股有限公司 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) | 02320 | 說明 | 普通股 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 1,000,000,000 | HKD | | 0.1 HKD | | | 100,000,000 | | 增加 / 減少 (-) | | | 0 | | | HKD | | | 0 | | 本月底結存 | | | 1,000,000,000 | HKD | | 0.1 HKD | | | 100,000,0 ...

[CORPORATE INFORMATION](index=3&type=section&id=CORPORATE%20INFORMATION) [Board of Directors](index=3&type=section&id=Board%20of%20Directors) This section lists the Board of Directors of Hop Fung Group Holdings Limited, including executive and independent non-executive directors, and the composition of various committees - Executive Directors include Mr. Hui Sum Ping (Chairman), Mr. Hui Sum Tai (Chief Executive Officer), and Ms. Hui Yuk Ling[3](index=3&type=chunk) - Independent Non-Executive Directors are Mr. Cho Sze Wai, Mr. Wong Chu Leung, and Mr. Chow Suk Ming[3](index=3&type=chunk) - Mr. Cho Sze Wai chairs the Audit, Remuneration, and Nomination Committees[3](index=3&type=chunk) [Other Corporate Details](index=3&type=section&id=Other%20Corporate%20Details) This section provides essential company information, including authorized representatives, company secretary, auditor, and stock code - Authorized representatives are Mr. Hui Sum Tai and Mr. Chan Wai Man, with Mr. Chan also serving as Company Secretary[4](index=4&type=chunk) - The company's auditor is ZHONGHUI ANDA CPA Limited[4](index=4&type=chunk) - The company's stock code is **2320**, and its official website is www.hopfunggroup.com[7](index=7&type=chunk) [CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20PROFIT%20OR%20LOSS%20AND%20OTHER%20COMPREHENSIVE%20INCOME) [Financial Performance Overview](index=5&type=section&id=Financial%20Performance%20Overview) For the six months ended June 30, 2025, group revenue significantly decreased by 35.9% to HK$69,134 thousand, resulting in lower gross profit and a period loss of HK$38,406 thousand, narrower than the prior year Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Revenue | 69,134 | 107,821 | | Cost of sales | (64,094) | (98,586) | | Gross profit | 5,040 | 9,235 | | Other income | 1,079 | 1,120 | | Other gains and losses | 1,782 | 175 | | Selling and distribution costs | (4,449) | (5,867) | | Administrative expenses | (16,112) | (17,983) | | Other expenses | (27,489) | (29,546) | | Finance costs | (1,662) | (1,831) | | Loss before tax | (41,811) | (44,697) | | Income tax credit | 3,405 | 1,020 | | Loss for the period | (38,406) | (43,677) | | Exchange differences | 19,849 | (22,724) | | Total comprehensive expense for the period | (18,557) | (66,401) | | Basic loss per share (HK cents) | (4.70) | (5.34) | - Revenue decreased by **35.9%** year-on-year, primarily due to reduced customer orders and intense market competition[11](index=11&type=chunk)[133](index=133&type=chunk) - Gross profit margin declined from **8.6%** in H1 2024 to **7.3%** in H1 2025, as revenue decreased more than cost of sales[133](index=133&type=chunk) - Other gains and losses increased from a net gain of **HK$175 thousand** in H1 2024 to a net gain of **HK$1,782 thousand** in H1 2025, mainly due to write-off of accrued expenses and other payables[11](index=11&type=chunk)[134](index=134&type=chunk) - Administrative expenses decreased by **10.5%** to **HK$16,112 thousand**, reflecting the Group's proactive review and streamlining of its cost structure[11](index=11&type=chunk)[135](index=135&type=chunk) - Loss for the period narrowed to **HK$38,406 thousand** from HK$43,677 thousand in the prior year[11](index=11&type=chunk)[140](index=140&type=chunk) [CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20FINANCIAL%20POSITION) [Financial Position Overview](index=7&type=section&id=Financial%20Position%20Overview) As of June 30, 2025, total assets slightly decreased, non-current assets remained stable, while current assets significantly declined due to reduced inventories, trade and other receivables, and bank balances and cash, leading to a lower current ratio Condensed Consolidated Statement of Financial Position (As at June 30) | Indicator | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | **Non-current assets** | | | | Property, plant and equipment | 659,510 | 665,812 | | Right-of-use assets | 17,449 | 17,493 | | Deposits and prepayments | 125,252 | 131,821 | | **Current assets** | | | | Inventories | 12,058 | 13,098 | | Trade and other receivables | 30,787 | 39,549 | | Bank balances and cash | 20,125 | 33,558 | | **Current liabilities** | | | | Trade and other payables | 61,812 | 77,581 | | Bank borrowings (due within one year) | 4,317 | 4,239 | | **Non-current liabilities** | | | | Bank borrowings (due after one year) | 87,595 | 88,128 | | Deferred tax | 5,347 | 8,969 | | **Equity** | | | | Share capital | 81,764 | 81,764 | | Reserves | 627,642 | 646,199 | | **Total equity** | 709,406 | 727,963 | - Net current assets significantly decreased from **HK$9,934 thousand** as at December 31, 2024, to **HK$137 thousand** as at June 30, 2025[15](index=15&type=chunk)[141](index=141&type=chunk) - The current ratio decreased from **1.12** as at December 31, 2024, to **1.0** as at June 30, 2025[141](index=141&type=chunk) - Total bank balances and cash decreased from **HK$33,558 thousand** to **HK$20,125 thousand**, with the majority denominated in RMB[15](index=15&type=chunk)[141](index=141&type=chunk) [CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY](index=9&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20CHANGES%20IN%20EQUITY) [Equity Changes Overview](index=9&type=section&id=Equity%20Changes%20Overview) For the six months ended June 30, 2025, total equity decreased from HK$727,963 thousand to HK$709,406 thousand, primarily due to a period loss of HK$38,406 thousand, partially offset by an increase in exchange reserve Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30) | Indicator | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | **Total at January 1** | 727,963 | 842,892 | | Loss for the period | (38,406) | (43,677) | | Other comprehensive income/(expense) for the period | 19,849 | (22,724) | | **Total comprehensive income/(expense) for the period** | (18,557) | (66,401) | | **Total at June 30** | 709,406 | 776,491 | - Exchange reserve recorded a positive change of **HK$19,849 thousand** in H1 2025, compared to a negative HK$22,724 thousand in H1 2024[19](index=19&type=chunk)[21](index=21&type=chunk) - Retained profits decreased due to the loss for the period, from **HK$286,647 thousand** as at January 1, 2025, to **HK$248,241 thousand**[19](index=19&type=chunk) [CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS](index=11&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20CASH%20FLOWS) [Cash Flow Overview](index=11&type=section&id=Cash%20Flow%20Overview) For the six months ended June 30, 2025, the Group experienced net cash outflows from operating, investing, and financing activities, resulting in a net decrease of HK$13,838 thousand in cash and cash equivalents Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Indicator | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Net cash used in operating activities | (9,770) | (9,124) | | Net cash used in investing activities | (172) | (1,104) | | Net cash (used in)/generated from financing activities | (3,896) | 15,275 | | Net (decrease)/increase in cash and cash equivalents | (13,838) | 5,047 | | Cash and cash equivalents at January 1 | 33,558 | 47,272 | | Effect of foreign exchange rate changes | 405 | (1,425) | | Cash and cash equivalents at June 30 | 20,125 | 50,894 | - Net cash used in operating activities was slightly higher than the prior period, mainly impacted by changes in working capital[24](index=24&type=chunk) - Financing activities shifted from a net cash inflow in the prior period to a net cash outflow, primarily due to reduced new bank loans and bank loan repayments[26](index=26&type=chunk) - Total cash and cash equivalents as at June 30, 2025, amounted to **HK$20,125 thousand**, a significant decrease from HK$33,558 thousand as at January 1, 2024[26](index=26&type=chunk) [NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS](index=13&type=section&id=NOTES%20TO%20THE%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) [1. GENERAL](index=13&type=section&id=1.%20GENERAL) This note states that the company is an exempted limited company incorporated in the Cayman Islands, with its shares listed on The Stock Exchange of Hong Kong - The company is incorporated in the Cayman Islands, and its shares are listed on The Stock Exchange of Hong Kong[27](index=27&type=chunk)[30](index=30&type=chunk) [2. BASIS OF PREPARATION](index=13&type=section&id=2.%20BASIS%20OF%20PREPARATION) This note outlines the basis of financial statement preparation, discussing the going concern assumption and the Group's plans to mitigate liquidity pressure despite significant uncertainties - The financial statements are prepared in accordance with Hong Kong Accounting Standard 34 Interim Financial Reporting and Appendix D2 of the Listing Rules[28](index=28&type=chunk)[31](index=31&type=chunk) - The Group incurred losses in both H1 2025 and H1 2024 and faces significant contingent liabilities from the PRC tax authority, which may cast significant doubt on its ability to continue as a going concern[29](index=29&type=chunk)[32](index=32&type=chunk) - The Board has prepared cash flow forecasts and obtained a letter of intent for loan facilities of approximately **RMB300 million** from its principal bankers to support its going concern[33](index=33&type=chunk)[35](index=35&type=chunk) [3. PRINCIPAL ACCOUNTING POLICIES](index=15&type=section&id=3.%20PRINCIPAL%20ACCOUNTING%20POLICIES) This note states that the financial statements are prepared on a historical cost basis, confirming the Group's adoption of all new and revised HKFRSs, but not yet applying unissued standards - The financial statements are prepared on a historical cost basis, and the accounting policies adopted are consistent with those in the 2024 annual financial statements[36](index=36&type=chunk)[37](index=37&type=chunk)[40](index=40&type=chunk) - The adoption of new and revised HKFRSs did not result in significant changes to accounting policies, financial statement presentation, or reported amounts[38](index=38&type=chunk)[41](index=41&type=chunk) [4. REVENUE AND SEGMENT INFORMATION](index=16&type=section&id=4.%20REVENUE%20AND%20SEGMENT%20INFORMATION) This note discloses the Group's revenue and segment results, categorizing business into containerboard and corrugated packaging, with revenue primarily from corrugated packaging as of June 30, 2025 - The Group's manufacturing operations are located in the PRC, with operating segments including containerboard (corrugating medium and kraftliner) and corrugated packaging (corrugated paperboards and cartons)[42](index=42&type=chunk)[44](index=44&type=chunk)[45](index=45&type=chunk) Segment Revenue and Results (For the six months ended June 30) | Segment | 2025 Revenue (HK$'000) | 2025 Segment Loss (HK$'000) | 2024 Revenue (HK$'000) | 2024 Segment Loss (HK$'000) | | :--- | :--- | :--- | :--- | :--- | | Containerboard | – | (30,058) | – | (31,336) | | Corrugated packaging | 69,134 | (4,424) | 107,821 | (3,341) | | **Consolidated total** | **69,134** | **(34,482)** | **107,821** | **(34,677)** | - The containerboard business has generated no external revenue since 2022, primarily due to the temporary suspension of upstream operations[47](index=47&type=chunk)[129](index=129&type=chunk) [5. OTHER EXPENSES](index=18&type=section&id=5.%20OTHER%20EXPENSES) This note details the Group's other expenses, primarily comprising depreciation, other PRC taxes, and legal and professional fees Other Expenses (For the six months ended June 30) | Indicator | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Other PRC taxes | 1,693 | 1,771 | | Depreciation | 24,329 | 24,864 | | Legal and professional fees | 958 | 2,210 | | Others | 509 | 701 | | **Total** | **27,489** | **29,546** | - Total other expenses decreased from **HK$29,546 thousand** in 2024 to **HK$27,489 thousand** in 2025, mainly due to reduced legal and professional fees[50](index=50&type=chunk)[136](index=136&type=chunk) [6. FINANCE COSTS](index=18&type=section&id=6.%20FINANCE%20COSTS) This note discloses the Group's finance costs, primarily consisting of interest on bank borrowings, which decreased due to bank loan repayments Finance Costs (For the six months ended June 30) | Indicator | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Interest on bank borrowings | 1,660 | 1,826 | | Interest on lease liabilities | 2 | 5 | | **Total** | **1,662** | **1,831** | - Finance costs decreased from **HK$1,831 thousand** in 2024 to **HK$1,662 thousand** in 2025, primarily due to bank loan repayments[52](index=52&type=chunk)[139](index=139&type=chunk) [7. INCOME TAX CREDIT](index=19&type=section&id=7.%20INCOME%20TAX%20CREDIT) This note details the Group's income tax credit, including Hong Kong profits tax, PRC corporate income tax, and deferred tax credit, also mentioning preferential tax rates for high-tech PRC subsidiaries Income Tax Credit (For the six months ended June 30) | Indicator | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Current tax: | | | | Hong Kong profits tax | 331 | 390 | | PRC corporate income tax | 3 | – | | **Subtotal** | **334** | **390** | | Deferred tax credit | (3,739) | (1,410) | | **Total** | **(3,405)** | **(1,020)** | - Hong Kong profits tax applies a two-tiered tax rate, with the first **HK$2 million** of assessable profits taxed at **8.25%** and the remainder at **16.5%**[54](index=54&type=chunk)[55](index=55&type=chunk) - PRC subsidiaries are subject to a **25%** tax rate, with one high-tech enterprise enjoying a preferential rate of **15%**[57](index=57&type=chunk)[60](index=60&type=chunk) [8. LOSS FOR THE PERIOD](index=20&type=section&id=8.%20LOSS%20FOR%20THE%20PERIOD) This note lists the key items included in or deducted from the loss for the period, such as depreciation, staff costs, and cost of inventories recognized as expense Items (credited)/charged to loss for the period (For the six months ended June 30) | Indicator | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 25,105 | 25,652 | | Depreciation of right-of-use assets | 340 | 342 | | Staff costs (including directors' emoluments) | 17,394 | 19,574 | | Cost of inventories recognised as expense | 64,094 | 98,586 | | Exchange gains, net | (29) | (81) | - Staff costs (including directors' emoluments) decreased from **HK$19,574 thousand** in 2024 to **HK$17,394 thousand** in 2025[62](index=62&type=chunk) - Cost of inventories recognized as expense decreased from **HK$98,586 thousand** in 2024 to **HK$64,094 thousand** in 2025[62](index=62&type=chunk) [9. LOSS PER SHARE](index=21&type=section&id=9.%20LOSS%20PER%20SHARE) This note provides the calculation for basic and diluted loss per share, indicating a narrowing of the loss per share Loss Per Share (For the six months ended June 30) | Indicator | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Loss for the purpose of calculating basic and diluted loss per share | (38,406) | (43,677) | | Weighted average number of ordinary shares | 817,644,000 | 817,644,000 | | **Basic and diluted loss per share (HK cents)** | **(4.70)** | **(5.34)** | - No assumption of share option exercise was made for diluted loss per share calculation, as the exercise price was higher than the average market price of shares[64](index=64&type=chunk)[66](index=66&type=chunk) [10. DIVIDENDS](index=21&type=section&id=10.%20DIVIDENDS) This note states that no dividends were declared or proposed by the Board for the six months ended June 30, 2025 - No dividends were declared or proposed for the six months ended June 30, 2025, and 2024[65](index=65&type=chunk)[67](index=67&type=chunk) [11. PROPERTY, PLANT AND EQUIPMENT](index=22&type=section&id=11.%20PROPERTY,%20PLANT%20AND%20EQUIPMENT) This note discloses the Group's capital expenditure on property, plant, and equipment - For the six months ended June 30, 2025, the Group acquired property, plant and equipment of approximately **HK$0.2 million**, a significant decrease from HK$1.06 million in the same period of 2024[68](index=68&type=chunk)[69](index=69&type=chunk)[142](index=142&type=chunk) [12. RIGHT-OF-USE ASSETS](index=22&type=section&id=12.%20RIGHT-OF-USE%20ASSETS) This note provides the carrying amount and depreciation expense of right-of-use assets, also mentioning the early termination of a Macau office lease agreement Right-of-Use Assets Carrying Amount and Depreciation Expense | Indicator | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | Carrying amount | 17,449 | 17,493 | | Depreciation expense (For the six months ended June 30) | 340 | 342 | - The Group early terminated a Macau office lease agreement, derecognizing the related right-of-use assets and lease liabilities, and recognizing a gain on lease termination[72](index=72&type=chunk) [13. INVENTORIES](index=23&type=section&id=13.%20INVENTORIES) This note details the composition of the Group's inventories, primarily consisting of raw materials and finished goods Inventories Composition (As at June 30) | Indicator | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | Raw materials | 11,834 | 12,965 | | Finished goods | 224 | 133 | | **Total** | **12,058** | **13,098** | - Total inventories decreased from **HK$13,098 thousand** as at December 31, 2024, to **HK$12,058 thousand** as at June 30, 2025[74](index=74&type=chunk) [14. TRADE AND OTHER RECEIVABLES](index=23&type=section&id=14.%20TRADE%20AND%20OTHER%20RECEIVABLES) This note provides a detailed analysis of trade and other receivables, including aging distribution and advances to Batangas Paper Corporation Trade and Other Receivables (As at June 30) | Indicator | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | Trade receivables (net of allowance) | 21,548 | 30,422 | | Other receivables | 9,239 | 9,127 | | **Total** | **30,787** | **39,549** | Aging Analysis of Trade Receivables (As at June 30) | Aging | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | Within 30 days | 14,169 | 20,504 | | 31-60 days | 6,474 | 9,488 | | 61-90 days | 413 | 341 | | Over 90 days | 492 | 89 | - Total trade and other receivables as at June 30, 2025, amounted to **HK$30,787 thousand**, a decrease from HK$39,549 thousand as at December 31, 2024[76](index=76&type=chunk) - Other receivables include advances of approximately **HK$7,695 thousand** to independent third party Batangas Paper Corporation, which are unsecured, interest-free, and repayable on demand[77](index=77&type=chunk) - Trade receivables overdue for 90 days or more increased from **HK$243 thousand** as at December 31, 2024, to **HK$506 thousand** as at June 30, 2025[80](index=80&type=chunk)[81](index=81&type=chunk) [15. TRADE AND OTHER PAYABLES](index=25&type=section&id=15.%20TRADE%20AND%20OTHER%20PAYABLES) This note presents the composition and aging analysis of the Group's trade and other payables, indicating a decrease in total payables Trade and Other Payables (As at June 30) | Indicator | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | Trade payables | 16,236 | 22,703 | | Payables for acquisition of property, plant and equipment | 3,200 | 2,492 | | Other PRC taxes payable | 13,010 | 11,794 | | Accrued expenses | 25,692 | 37,811 | | Other payables | 3,674 | 2,781 | | **Total** | **61,812** | **77,581** | - Total trade and other payables decreased from **HK$77,581 thousand** as at December 31, 2024, to **HK$61,812 thousand** as at June 30, 2025[84](index=84&type=chunk) - Accrued expenses, including accrued salaries and wages, were a major component of payables, decreasing from **HK$37,811 thousand** to **HK$25,692 thousand**[84](index=84&type=chunk)[85](index=85&type=chunk) [16. LEASE LIABILITIES](index=26&type=section&id=16.%20LEASE%20LIABILITIES) This note discloses the Group's lease liabilities, primarily consisting of amounts repayable within one year Lease Liabilities (As at June 30) | Indicator | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | Lease liabilities repayable within one year | 64 | 141 | | **Total** | **64** | **141** | - Total lease liabilities decreased from **HK$141 thousand** as at December 31, 2024, to **HK$64 thousand** as at June 30, 2025[88](index=88&type=chunk) [17. BANK BORROWINGS](index=27&type=section&id=17.%20BANK%20BORROWINGS) This note provides detailed information on the Group's bank borrowings, including their composition and repayment term distribution Bank Borrowings (As at June 30) | Indicator | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | Total bank loans | 91,912 | 92,367 | | Repayable within one year | 4,317 | 4,239 | | Repayable after one year but within two years | 87,595 | 42,335 | | Repayable after two years but within five years | – | 45,793 | | **Amount shown under non-current liabilities** | **87,595** | **88,128** | - Total bank borrowings slightly decreased from **HK$92,367 thousand** as at December 31, 2024, to **HK$91,912 thousand** as at June 30, 2025[90](index=90&type=chunk)[145](index=145&type=chunk) - Bank borrowings repayable after one year but within two years significantly increased, while those repayable after two years but within five years were eliminated[90](index=90&type=chunk) [18. SHARE CAPITAL](index=28&type=section&id=18.%20SHARE%20CAPITAL) This note discloses the Group's authorized and issued and fully paid share capital, indicating a stable capital structure Share Capital (As at June 30) | Indicator | Number of shares | Amount (HK$'000) | | :--- | :--- | :--- | | Authorised share capital (HK$0.10 par value per share) | 1,000,000,000 | 100,000 | | Issued and fully paid share capital (HK$0.10 par value per share) | 817,644,000 | 81,764 | - As at June 30, 2025, issued and fully paid share capital was **HK$81,764 thousand**, consistent with December 31, 2024[94](index=94&type=chunk) [19. CAPITAL COMMITMENTS](index=28&type=section&id=19.%20CAPITAL%20COMMITMENTS) This note discloses the Group's capital commitments for the acquisition of plant and equipment Capital Commitments (As at June 30) | Indicator | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | Capital expenditure for acquisition of plant and equipment – contracted but not provided for | 45,089 | 44,682 | - As at June 30, 2025, capital expenditure for acquisition of plant and equipment contracted but not provided for was **HK$45,089 thousand**, slightly higher than December 31, 2024[97](index=97&type=chunk) [20. LITIGATION AND CONTINGENT LIABILITIES](index=29&type=section&id=20.%20LITIGATION%20AND%20CONTINGENT%20LIABILITIES) This note details significant tax issues and related litigation faced by the Group's PRC subsidiary, involving VAT invoice irregularities and substantial tax arrears and administrative penalties - The Group's indirect wholly-owned subsidiary, Senye Paper, received tax assessment and administrative penalty decisions from Qingyuan Tax Bureau, demanding approximately **RMB109 million** in unpaid taxes and **RMB44.07 million** in administrative penalties[98](index=98&type=chunk)[99](index=99&type=chunk)[100](index=100&type=chunk)[102](index=102&type=chunk) - Senye Paper's application for review of the tax assessment decision was rejected by the Guangdong High People's Court, and it has now applied for administrative supervision from the Qingyuan People's Procuratorate of Guangdong Province[105](index=105&type=chunk)[106](index=106&type=chunk)[108](index=108&type=chunk)[109](index=109&type=chunk)[113](index=113&type=chunk) - Senye Paper filed an administrative reconsideration and then an administrative lawsuit against the tax penalty decision, with the Guangzhou Railway Transportation Intermediate Court's second-instance judgment revoking the first-instance administrative judgment and dismissing Senye Paper's claims[111](index=111&type=chunk)[115](index=115&type=chunk)[117](index=117&type=chunk)[119](index=119&type=chunk)[120](index=120&type=chunk)[123](index=123&type=chunk) - The Board believes no provision for the related tax amounts is required as at June 30, 2025, as the Group is still seeking PRC legal advice[121](index=121&type=chunk)[124](index=124&type=chunk) [21. RELATED PARTY TRANSACTIONS](index=35&type=section&id=21.%20RELATED%20PARTY%20TRANSACTIONS) This note discloses the Group's related party transactions, primarily involving directors' emoluments and a warehouse lease agreement with an independent non-executive director Directors' Emoluments (For the six months ended June 30) | Indicator | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Short-term benefits | 4,493 | 5,663 | | Pension scheme contributions | 31 | 82 | | **Total** | **4,524** | **5,745** | - The Group entered into a warehouse lease agreement with independent non-executive director Mr. Wong Chu Leung, with rental expenses of **HK$78 thousand** for the six months ended June 30, 2025, conducted on an arm's length basis[126](index=126&type=chunk)[127](index=127&type=chunk) [MANAGEMENT DISCUSSION AND ANALYSIS](index=36&type=section&id=MANAGEMENT%20DISCUSSION%20AND%20ANALYSIS) [BUSINESS REVIEW](index=36&type=section&id=BUSINESS%20REVIEW) In H1 2025, Group revenue declined by 35.9% due to reduced customer orders and increased market competition; the upstream containerboard business remains suspended, awaiting boiler conversion to resume production, while the Group focuses on cost control and operational efficiency - In H1 2025, Group revenue decreased by **35.9%**, primarily due to reduced customer orders, global economic downturn, and intense market competition[128](index=128&type=chunk)[131](index=131&type=chunk) - The upstream containerboard business has been suspended since October 2021, with ongoing coordination with local government for a coal-to-gas boiler conversion project, expected to resume production upon completion[129](index=129&type=chunk)[131](index=131&type=chunk) - The Group addresses challenges of soaring manufacturing costs and weak market demand by strengthening cost control management and enhancing operational efficiency[130](index=130&type=chunk)[132](index=132&type=chunk) [FINANCIAL REVIEW](index=37&type=section&id=FINANCIAL%20REVIEW) This section reviews the Group's H1 2025 financial performance, covering revenue, gross profit, expenses, EBITDA, period loss, liquidity, and capital resources - Revenue decreased by **35.9%** from **HK$107.8 million** in H1 2024 to **HK$69.1 million** in H1 2025[133](index=133&type=chunk)[137](index=137&type=chunk) - Gross profit decreased from **HK$9.2 million** to **HK$5.0 million**, with gross profit margin declining from **8.6%** to **7.3%**[133](index=133&type=chunk)[137](index=137&type=chunk) - Other gains and losses increased from a net gain of **HK$0.1 million** in H1 2024 to a net gain of **HK$1.8 million** in H1 2025, primarily due to the write-off of accrued expenses and other payables[134](index=134&type=chunk)[138](index=138&type=chunk) - Administrative expenses decreased to **HK$16.1 million**, reflecting the Group's proactive streamlining of its cost structure[135](index=135&type=chunk)[138](index=138&type=chunk) - EBITDA decreased by **HK$2.2 million** from **-HK$16.9 million** to **-HK$14.7 million**[140](index=140&type=chunk)[143](index=143&type=chunk) - Loss for the period narrowed to **HK$38.4 million** from HK$43.7 million in H1 2024[140](index=140&type=chunk)[143](index=143&type=chunk) - As at June 30, 2025, total cash and cash equivalents were **HK$20.1 million**, net current assets were **HK$0.1 million**, and the current ratio was **1.0**[141](index=141&type=chunk)[144](index=144&type=chunk) - The gearing ratio increased from **12.7%** as at December 31, 2024, to **13.0%** as at June 30, 2025; the net gearing ratio increased from **8.0%** to **10.0%**[145](index=145&type=chunk)[147](index=147&type=chunk) [OUTLOOK](index=39&type=section&id=OUTLOOK) The Group anticipates continued challenges in the corrugated packaging industry but sees opportunities from stricter plastic packaging regulations and e-commerce growth in China, focusing on strategic initiatives and the resumption of upstream operations for vertical integration advantages - The operating environment for the corrugated packaging industry is expected to remain challenging, impacted by soaring manufacturing costs and weak market demand[146](index=146&type=chunk)[148](index=148&type=chunk) - Stricter PRC government controls on plastic packaging and the growth of the e-commerce market are expected to stimulate demand for paper packaging, benefiting the Group's business[149](index=149&type=chunk)[151](index=151&type=chunk) - The Group will focus on key strategies including pricing power, increasing sales volume, enhancing production efficiency, and reducing energy consumption and raw material waste[150](index=150&type=chunk)[151](index=151&type=chunk) - The resumption of upstream operations, following coordination for the coal-to-gas boiler conversion project, will provide the Group with a competitive advantage through vertical integration[146](index=146&type=chunk)[148](index=148&type=chunk) [DISCLOSURE OF INTERESTS](index=41&type=section&id=DISCLOSURE%20OF%20INTERESTS) [DIRECTORS' INTERESTS IN SHARES, UNDERLYING SHARES AND DEBENTURES](index=41&type=section&id=DIRECTORS'%20INTERESTS%20IN%20SHARES,%20UNDERLYING%20SHARES%20AND%20DEBENTURES) This section discloses the interests and short positions of directors and their associates in the shares, underlying shares, and debentures of the Company and its associated corporations as at June 30, 2025 Directors' Interests in Shares of the Company (As at June 30) | Name of Director | Capacity | Number and class of securities | Approximate % of issued share capital | | :--- | :--- | :--- | :--- | | Mr. Hui Sum Ping | Beneficial owner | 132,400,681 shares | 16.19% | | | Interest in controlled corporation | 107,755,400 shares | 13.17% | | | Interest of spouse | 27,256,000 shares | 3.33% | | Mr. Hui Sum Tai | Beneficial owner | 150,556,430 shares | 18.41% | | | Interest of spouse | 5,110,000 shares | 0.62% | | Ms. Hui Yuk Ling | Beneficial owner | 1,200,000 shares | 0.14% | | | Interest of spouse | 500,000 shares | 0.06% | | Mr. Chow Suk Ming | Beneficial owner | 180,000 shares | 0.02% | | | Interest of spouse | 1,553,007 shares | 0.18% | - Mr. Hui Sum Ping and Mr. Hui Sum Tai are each deemed to have interests and short positions in **3,000,000** non-voting deferred shares of Hop Fung Gong Ming[157](index=157&type=chunk)[158](index=158&type=chunk)[160](index=160&type=chunk)[161](index=161&type=chunk) [SUBSTANTIAL SHAREHOLDERS' INTERESTS IN SHARES, UNDERLYING SHARES AND DEBENTURES](index=44&type=section&id=SUBSTANTIAL%20SHAREHOLDERS'%20INTERESTS%20IN%20SHARES,%20UNDERLYING%20SHARES%20AND%20DEBENTURES) This section lists the interests or short positions of substantial shareholders in the Company's shares or underlying shares as at June 30, 2025 Substantial Shareholders' Interests in Shares of the Company (As at June 30) | Name of Shareholder | Capacity | Number of issued shares held | Number of share options held | Approximate % of issued share capital | | :--- | :--- | :--- | :--- | :--- | | Mr. Hui Sum Ping | Beneficial owner/Interest in controlled corporation/Interest of spouse | 267,412,081 | 3,984,000 | 33.19% | | Goldspeed | Beneficial owner | 107,755,400 | – | 13.17% | | Mr. Hui Sum Tai | Beneficial owner/Interest of spouse | 155,666,430 | 3,984,000 | 19.52% | | Mr. Hui Sum Kwok | Beneficial owner/Interest of spouse | 171,227,882 | – | 20.94% | - Mr. Hui Sum Ping and his spouse, Ms. Kan Kin Yee, collectively hold **33.19%** of the Company's share interests and **3,984,000** share options[169](index=169&type=chunk)[173](index=173&type=chunk) - Goldspeed Holdings Limited, wholly-owned by Mr. Hui Sum Ping, holds **13.17%** of the share interests[169](index=169&type=chunk)[173](index=173&type=chunk) [SHARE OPTIONS](index=46&type=section&id=SHARE%20OPTIONS) This section details the terms, grants, and changes of the Company's 2013 and 2023 share option schemes, designed to incentivize employees and directors - The 2013 Share Option Scheme expired on June 2, 2023, but options granted thereunder remain valid and exercisable according to their terms[175](index=175&type=chunk)[178](index=178&type=chunk) Movements of Share Options (As at June 30) | Category | Date of Grant | Exercise Price per Share (HK$) | Outstanding at beginning of period | Outstanding at end of period | | :--- | :--- | :--- | :--- | :--- | | Director (Mr. Hui Sum Ping) | 2018.10.15 | 0.435 | 3,984,000 | 3,984,000 | | Director (Mr. Hui Sum Tai) | 2018.10.15 | 0.435 | 3,984,000 | 3,984,000 | | Director (Mr. Wong Chu Leung) | 2018.10.15 | 0.435 | 1,000,000 | 1,000,000 | | Associate of Director (Mr. Tsui Yung Wai) | 2018.10.15 | 0.435 | 3,484,000 | 3,484,000 | | **Total for all categories** | | | **12,452,000** | **12,452,000** | - As at June 30, 2025, a total of **12,452,000** share options granted under the 2013 Scheme remained outstanding, representing approximately **1.52%** of the issued shares[188](index=188&type=chunk)[190](index=190&type=chunk) - The 2023 New Share Option Scheme was approved by shareholders with a ten-year validity; as at June 30, 2025, no options were granted under this scheme, with **81,764,000** options available for grant[189](index=189&type=chunk)[190](index=190&type=chunk)[193](index=193&type=chunk)[195](index=195&type=chunk)[206](index=206&type=chunk)[207](index=207&type=chunk) - The exercise price of share options must not be less than the highest of the closing price on the grant date, the average closing price for the five business days immediately preceding the grant date, and the nominal value of the shares[182](index=182&type=chunk)[183](index=183&type=chunk)[208](index=208&type=chunk) [OTHER INFORMATION](index=54&type=section&id=OTHER%20INFORMATION) [Interim Dividend](index=54&type=section&id=Interim%20Dividend) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Directors do not recommend the payment of an interim dividend for the six months ended June 30, 2025[209](index=209&type=chunk)[213](index=213&type=chunk) [Human Resources](index=54&type=section&id=Human%20Resources) As at June 30, 2025, the Group employed approximately 206 full-time staff, offering competitive remuneration packages that may include share options and discretionary bonuses based on performance - As at June 30, 2025, the Group employed approximately **206** full-time staff, a decrease from 229 as at December 31, 2024[210](index=210&type=chunk)[214](index=214&type=chunk) - The Group offers competitive remuneration packages, potentially including share options and discretionary bonuses based on Group and individual performance[210](index=210&type=chunk)[214](index=214&type=chunk) [Corporate Governance](index=54&type=section&id=Corporate%20Governance) The Group is committed to high corporate governance standards, complying with Appendix C1 of the Listing Rules, though some deviations exist regarding the Chairman and CEO's responsibilities, audit committee meetings, and remuneration committee scope - The Group complies with the Corporate Governance Code, though the division of responsibilities between the Chairman and CEO is not formally documented, but directors believe responsibilities are clearly defined[215](index=215&type=chunk)[216](index=216&type=chunk) - The Audit Committee meets with the auditor once a year, deviating from the Code's requirement of at least twice annually, but communication occurs electronically[221](index=221&type=chunk)[222](index=222&type=chunk) - The Remuneration Committee reviews and recommends remuneration packages only for directors, not senior management, whose remuneration is handled by the Chairman and/or Chief Executive Officer[221](index=221&type=chunk)[222](index=222&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=56&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) For the six months ended June 30, 2025, neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities, and no treasury shares were held - For the six months ended June 30, 2025, neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities[223](index=223&type=chunk)[227](index=227&type=chunk) - As at June 30, 2025, the Company held no treasury shares as defined by the Listing Rules[224](index=224&type=chunk)[228](index=228&type=chunk) [Model Code for Securities Transactions](index=56&type=section&id=Model%20Code%20for%20Securities%20Transactions) The Company has adopted its own code of conduct for directors' securities transactions, with terms no less exacting than the Model Code in Appendix C3 of the Listing Rules - The Company has adopted a code of conduct for directors' securities transactions, with terms no less exacting than the Model Code set out in Appendix C3 of the Listing Rules[225](index=225&type=chunk)[229](index=229&type=chunk) [Review of Accounts](index=56&type=section&id=Review%20of%20Accounts) The Audit Committee has reviewed the interim financial results and report with management, discussing risk management, internal controls, and financial reporting matters - The Audit Committee has reviewed the interim financial results and report, discussing risk management, internal controls, and financial reporting matters[226](index=226&type=chunk)[230](index=230&type=chunk) [Appreciation](index=57&type=section&id=Appreciation) The Board extends its sincere gratitude to shareholders, business partners, and all staff - The Board expresses gratitude to shareholders, business partners, and staff for their support, commitment, and diligence[231](index=231&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 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: 合豐集團控股有限公司 呈交日期: 2025年9月1日 FF301 第 1 頁 共 10 頁 v 1.1.1 FF301 II. 已發行股份及/或庫存股份變動 | 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) | 02320 | 說明 | | 普通股 | | | | | | | | 已發行股份（不包括庫存股份）數目 | | | 庫存股份數目 | | 已發行股份總數 | | | 上月底結存 | | | | 817,644,000 | | 0 | | 817,644,000 | | 增加 / 減少 (-) | | | | 0 | | 0 | | | | 本月底結存 | | | | 817,644,000 | | 0 | | 817,644,000 ...

Core Viewpoint - 合丰集团 reported a significant decline in revenue and a narrowed loss for the six months ending June 30, 2025, indicating ongoing challenges in its financial performance [1] Financial Performance - Revenue for the period was HKD 69.134 million, representing a year-on-year decrease of 35.88% [1] - The loss attributable to shareholders was HKD 38.406 million, which is a 12.07% reduction compared to the previous year [1] - Basic loss per share was HKD 0.047 [1]

Group 1 - The company reported a revenue of HKD 69.134 million for the six months ending June 30, 2025, representing a year-on-year decrease of 35.88% [1] - The loss attributable to shareholders was HKD 38.406 million, which narrowed by 12.07% compared to the previous year [1] - The basic loss per share was HKD 0.047 [1]

Group 1 - The core viewpoint of the article highlights that Hefeng Group (02320.HK) reported a significant decline in revenue for the first half of 2025, with earnings of HKD 69.1 million, representing a year-on-year decrease of 35.9% due to reduced customer orders and intense competition [1] - The company recorded a loss of HKD 38.4 million for the first half of 2025, compared to a loss of HKD 43.7 million in the same period of 2024, indicating a slight improvement in financial performance despite ongoing challenges [1] - The board of directors has decided not to recommend the payment of an interim dividend for the six months ending June 30, 2025, consistent with the previous year where no dividend was paid [1] Group 2 - The corrugated packaging industry is facing significant pressure due to the global economic downturn and fierce market competition, which has contributed to the decline in revenue for the company [1] - Since October 2021, the company's upstream corrugated paper business has been temporarily suspended, impacting overall operations [1] - The company is currently coordinating with local government authorities to handle the annual inspection of coal-fired boiler permits and is working on transitioning to gas-fired boilers in compliance with environmental policies, with plans to resume production after completing the necessary coordination [1] - To ensure stable supply for its downstream corrugated packaging business, the company has been sourcing corrugated paper from third-party suppliers since 2022, following the cessation of its upstream business revenue [1]

[Financial Summary](index=1&type=section&id=Financial%20Summary) This section provides a concise overview of the company's financial performance and position for the six months ended June 30, 2025 As at June 30, 2025 Financial Summary | Indicator | 2025 (HK$ Million) | 2024 (HK$ Million) | Change | | :--- | :--- | :--- | :--- | | Revenue | 69.1 | 107.8 | -35.9% | | EBITDA* | (14.7) | (16.9) | -13.0% | | Loss for the Period | (38.4) | (43.7) | -12.1% | | **As at** | **June 30, 2025** | **December 31, 2024** | **Change** | | Gearing Ratio | 13.0% | 12.7% | 0.3 percentage points | | Net Gearing Ratio** | 10.0% | 8.0% | 2.0 percentage points | * EBITDA refers to earnings before finance costs, tax, depreciation and amortisation ** Refers to the ratio of net balance of total bank borrowings less bank balances and cash and restricted bank deposits to equity [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This statement presents the company's financial performance, including revenue, expenses, and total comprehensive income for the period Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Revenue | 69,134 | 107,821 | | Cost of Sales | (64,094) | (98,586) | | Gross Profit | 5,040 | 9,235 | | Other Income | 1,079 | 1,120 | | Other Gains and Losses | 1,782 | 175 | | Selling and Distribution Costs | (4,449) | (5,867) | | Administrative Expenses | (16,112) | (17,983) | | Other Expenses | (27,489) | (29,546) | | Finance Costs | (1,662) | (1,831) | | Loss Before Tax | (41,811) | (44,697) | | Income Tax Credit | 3,405 | 1,020 | | Loss for the Period Attributable to Owners of the Company | (38,406) | (43,677) | | Exchange Differences on Translation of Overseas Operations | 19,849 | (22,724) | | Total Comprehensive Expense for the Period Attributable to Owners of the Company | (18,557) | (66,401) | | Basic and Diluted Loss Per Share (HK Cents) | (4.70) | (5.34) | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This statement details the company's assets, liabilities, and equity as of June 30, 2025, and December 31, 2024 Condensed Consolidated Statement of Financial Position (As at June 30, 2025) | Indicator | As at June 30, 2025 (HK$ Thousand) | As at December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Property, Plant and Equipment | 659,510 | 665,812 | | Right-of-use Assets | 17,449 | 17,493 | | Deposits and Prepayments | 125,252 | 131,821 | | **Current Assets** | | | | Inventories | 12,058 | 13,098 | | Trade and Other Receivables | 30,787 | 39,549 | | Deposits and Prepayments | 4,453 | 6,465 | | Restricted Bank Deposits | 596 | 586 | | Bank Balances and Cash | 20,125 | 33,558 | | **Current Liabilities** | | | | Trade and Other Payables | 61,812 | 77,581 | | Tax Payable | 1,689 | 1,361 | | Lease Liabilities | 64 | 141 | | Bank Borrowings | 4,317 | 4,239 | | **Non-current Liabilities** | | | | Bank Borrowings | 87,595 | 88,128 | | Deferred Tax | 5,347 | 8,969 | | **Net Assets** | 709,406 | 727,963 | | **Total Equity Attributable to Owners of the Company** | 709,406 | 727,963 | [Notes](index=4&type=section&id=Notes) This section provides detailed explanations and disclosures supporting the condensed consolidated financial statements [1. Basis of Preparation](index=4&type=section&id=1.%20Basis%20of%20Preparation) The unaudited condensed consolidated financial statements are prepared in accordance with HKAS 34 Interim Financial Reporting and Appendix D2 of the Listing Rules - The financial statements are prepared in accordance with Hong Kong Accounting Standard (HKAS) 34 and Appendix D2 of the Listing Rules[5](index=5&type=chunk) [Going Concern Basis](index=4&type=section&id=Going%20Concern%20Basis) The Group faces significant going concern uncertainties due to continuous losses and potential large tax liabilities, despite management's plans - The Group recorded continuous losses for the six months ended June 30, 2025, and 2024, amounting to **HK$38,406,000** and **HK$43,677,000** respectively[6](index=6&type=chunk) - There is a significant contingent liability related to the PRC tax authorities, which if realized, could lead to insufficient cash to meet obligations[6](index=6&type=chunk) - The Directors have prepared cash flow forecasts and obtained a letter of intent for a **RMB300 million** loan facility to support going concern[7](index=7&type=chunk) [2. Significant Accounting Policies](index=5&type=section&id=2.%20Significant%20Accounting%20Policies) The unaudited condensed consolidated financial statements are prepared on a historical cost basis, with consistent accounting policies - The financial statements are prepared on a historical cost basis, with accounting policies consistent with the prior year[8](index=8&type=chunk) - The adoption of new and revised Hong Kong Financial Reporting Standards has not resulted in significant changes to the Group's accounting policies, financial statement presentation, or reported amounts[9](index=9&type=chunk) [3. Revenue and Segment Information](index=5&type=section&id=3.%20Revenue%20and%20Segment%20Information) The Group's manufacturing operations in China are segmented into containerboard and corrugated packaging, with the latter being the sole source of external revenue [Segment Revenue and Results](index=6&type=section&id=Segment%20Revenue%20and%20Results) All Group revenue is derived from corrugated packaging, with both segments reporting losses, particularly the containerboard segment Analysis of Revenue and Results by Operating and Reportable Segment | Segment | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | **Revenue** | | | | Containerboard | – | – | | Corrugated Packaging | 69,134 | 107,821 | | **Segment Loss** | | | | Containerboard | (30,058) | (31,336) | | Corrugated Packaging | (4,424) | (3,341) | | Central Administrative Expenses | (5,667) | (8,189) | | Finance Costs | (1,662) | (1,831) | | Loss Before Tax | (41,811) | (44,697) | [4. Finance Costs](index=7&type=section&id=4.%20Finance%20Costs) The Group's finance costs primarily consist of interest on bank borrowings, showing a decrease compared to the prior period Details of Finance Costs (For the six months ended June 30) | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Interest on Bank Borrowings | 1,660 | 1,826 | | Interest on Lease Liabilities | 2 | 5 | | **Total** | **1,662** | **1,831** | [5. Income Tax Credit](index=7&type=section&id=5.%20Income%20Tax%20Credit) The Group recorded an income tax credit, mainly from deferred tax, benefiting from Hong Kong's two-tiered tax rate and China's preferential rates for high-tech enterprises Details of Income Tax Credit (For the six months ended June 30) | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Current Tax: Hong Kong Profits Tax | 331 | 390 | | Current Tax: PRC Enterprise Income Tax | 3 | – | | Deferred Tax Credit | (3,739) | (1,410) | | **Total** | **(3,405)** | **(1,020)** | - Hong Kong Profits Tax applies a two-tiered tax rate, with the first **HK$2,000,000** of assessable profits taxed at **8.25%** and the remainder at **16.5%**[14](index=14&type=chunk) - PRC subsidiaries are subject to a **25%** Enterprise Income Tax rate, with one high-tech enterprise enjoying a preferential rate of **15%**[15](index=15&type=chunk) [6. Loss for the Period](index=8&type=section&id=6.%20Loss%20for%20the%20Period) This section details key expenses and income items, such as depreciation, staff costs, and inventory costs, included in or deducted from the loss for the period Loss for the Period has been (Credited)/Charged with the following (For the six months ended June 30) | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Depreciation of Property, Plant and Equipment | 25,105 | 25,652 | | Depreciation of Right-of-use Assets | 340 | 342 | | Gain on Termination of Lease Contracts | – | (7) | | Staff Costs (including Directors' Emoluments) | 17,394 | 19,574 | | Cost of Inventories Recognised as Expense | 64,094 | 98,586 | | Exchange Gain, Net | (29) | (81) | [7. Dividends](index=8&type=section&id=7.%20Dividends) The Group neither declared nor proposed any dividends during or at the end of the reporting period - For the six months ended June 30, 2025, and 2024, the Group did not declare or propose any dividends[17](index=17&type=chunk) [8. Loss Per Share](index=8&type=section&id=8.%20Loss%20Per%20Share) Basic and diluted loss per share attributable to owners was 4.70 HK cents, showing an improvement, with no dilutive effect from share options Loss Per Share Calculation (For the six months ended June 30) | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Loss for the Purpose of Calculating Basic and Diluted Loss Per Share | (38,406) | (43,677) | | Weighted Average Number of Ordinary Shares for Basic and Diluted Loss Per Share | 817,644,000 | 817,644,000 | | Basic and Diluted Loss Per Share (HK Cents) | (4.70) | (5.34) | - The exercise price of share options was higher than the average market price of shares, thus no dilutive effect was included in the calculation of diluted loss per share[18](index=18&type=chunk) [9. Trade and Other Receivables](index=9&type=section&id=9.%20Trade%20and%20Other%20Receivables) The Group's total trade and other receivables decreased, primarily due to a reduction in trade receivables, with credit terms ranging from 5 to 120 days Total Trade and Other Receivables (As at June 30, 2025) | Item | As at June 30, 2025 (HK$ Thousand) | As at December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Trade Receivables | 21,796 | 30,665 | | Less: Provision for Credit Losses | (248) | (243) | | Other Receivables | 9,239 | 9,127 | | **Total Trade and Other Receivables** | **30,787** | **39,549** | Ageing Analysis of Trade Receivables (As at June 30, 2025) | Ageing | As at June 30, 2025 (HK$ Thousand) | As at December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Within 30 Days | 14,169 | 20,504 | | 31-60 Days | 6,474 | 9,488 | | 61-90 Days | 413 | 341 | | Over 90 Days | 492 | 89 | | **Total** | **21,548** | **30,422** | - The Group grants trade customers credit terms ranging from **5 to 120 days**, with an average ageing of approximately **56 days** (December 31, 2024: approximately **53 days**)[19](index=19&type=chunk) [10. Trade and Other Payables](index=10&type=section&id=10.%20Trade%20and%20Other%20Payables) The Group's total trade and other payables decreased, with supplier credit terms between 30 and 90 days, and overdue trade payables remaining stable Total Trade and Other Payables (As at June 30, 2025) | Item | As at June 30, 2025 (HK$ Thousand) | As at December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Trade Payables | 16,236 | 22,703 | | Payables for Acquisition of Property, Plant and Equipment | 3,200 | 2,492 | | Other PRC Taxes Payable | 13,010 | 11,794 | | Accrued Expenses | 25,692 | 37,811 | | Other Payables | 3,674 | 2,781 | | **Total** | **61,812** | **77,581** | Ageing Analysis of Trade Payables (As at June 30, 2025) | Ageing | As at June 30, 2025 (HK$ Thousand) | As at December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Current | 4,629 | 11,311 | | Overdue 1 to 30 Days | 23 | 8 | | Overdue 31 to 60 Days | – | – | | Overdue Over 60 Days | 11,584 | 11,384 | | **Trade Payables** | **16,236** | **22,703** | [11. Litigation and Contingent Liabilities](index=11&type=section&id=11.%20Litigation%20and%20Contingent%20Liabilities) The Group faces a significant tax issue related to its PRC subsidiary, Senye Paper, involving VAT invoice irregularities, unpaid taxes of approximately RMB 109 million, and administrative penalties of RMB 44.07 million, which the Group is contesting [Tax Treatment Decision](index=11&type=section&id=Tax%20Treatment%20Decision) Senye Paper appealed the Qingyuan Tax Bureau's tax treatment decision, including a rejected tax guarantee application and a review application to the Guangdong High People's Court, which was dismissed, now seeking administrative supervision - Senye Paper was required to pay approximately **RMB109 million** in outstanding taxes and surcharges due to VAT invoice issues[22](index=22&type=chunk) - Senye Paper's application for a tax guarantee was rejected, leading to appeals to various mainland authorities[23](index=23&type=chunk) - The application for review to the Guangdong High People's Court was dismissed, and an application for administrative supervision has been filed with the Qingyuan People's Procuratorate of Guangdong Province[24](index=24&type=chunk)[25](index=25&type=chunk) [Tax Penalty Decision](index=12&type=section&id=Tax%20Penalty%20Decision) Senye Paper sought administrative reconsideration and then initiated administrative litigation regarding the tax penalty decision; the second instance judgment overturned the first instance and dismissed Senye Paper's claims, prompting the Group to seek legal advice - Senye Paper was subject to an administrative penalty of approximately **RMB44.07 million**[22](index=22&type=chunk) - Senye Paper applied for administrative reconsideration with the Guangdong Provincial Tax Service regarding the tax penalty decision, followed by administrative litigation[26](index=26&type=chunk) - The second instance judgment overturned the first instance administrative judgment and dismissed Senye Paper's claims, and the Group is seeking PRC legal advice on this matter[27](index=27&type=chunk)[28](index=28&type=chunk) [Interim Dividend](index=14&type=section&id=Interim%20Dividend) The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Directors do not recommend the payment of an interim dividend for the six months ended June 30, 2025[29](index=29&type=chunk) [Business Review](index=14&type=section&id=Business%20Review) The Group's revenue declined significantly in the first half of 2025 due to reduced orders and intense market competition, while its upstream business aims to resume production after a boiler conversion project - In the first half of 2025, the Group's revenue decreased by **35.9%**, primarily due to reduced customer orders and intense market competition[30](index=30&type=chunk) - The upstream containerboard business has been temporarily suspended since October 2021 and is currently coordinating a coal-to-gas boiler conversion project to resume production[30](index=30&type=chunk) - The corrugated packaging industry faces a challenging operating environment, and the Group is committed to strengthening cost control management and improving efficiency to reduce losses[30](index=30&type=chunk) [Financial Review](index=14&type=section&id=Financial%20Review) This section provides a comprehensive analysis of the Group's financial performance, liquidity, and capital resources for the reporting period [Operating Results](index=14&type=section&id=Operating%20Results) The Group's revenue significantly decreased by 35.9% to HK$69.1 million, leading to lower gross profit and margin, though the loss for the period narrowed despite negative EBITDA Key Operating Results Changes (For the six months ended June 30) | Indicator | 2025 (HK$ Million) | 2024 (HK$ Million) | Change | | :--- | :--- | :--- | :--- | | Revenue | 69.1 | 107.8 | -35.9% | | Gross Profit | 5.0 | 9.2 | -45.7% | | Gross Profit Margin | 7.3% | 8.6% | -1.3 percentage points | | Other Income | 1.08 | 1.1 | -1.8% | | Other Gains and Losses (Net Gain) | 1.8 | 0.174 | +934.5% | | Selling and Distribution Costs | 4.4 | 5.9 | -25.5% | | Administrative Expenses | 16.1 | 17.9 | -10.1% | | Other Expenses | 27.5 | 29.5 | -6.8% | | Finance Costs | 1.7 | 1.8 | -5.6% | | EBITDA | (14.7) | (16.9) | +13.0% | | Loss for the Period | (38.4) | (43.7) | +12.1% | - The decrease in revenue was primarily due to reduced customer orders and intense competition[31](index=31&type=chunk) - The significant increase in net other gains and losses was mainly due to the write-off of accrued expenses and other payables[31](index=31&type=chunk) [Liquidity, Financial and Capital Resources](index=15&type=section&id=Liquidity%2C%20Financial%20and%20Capital%20Resources) The Group experienced reduced cash and cash equivalents, net current assets, and liquidity ratio, indicating increased liquidity pressure, alongside extended turnover days and higher leverage ratios Liquidity and Financial Indicators (As at June 30, 2025) | Indicator | As at June 30, 2025 | As at December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Total Cash and Cash Equivalents | HK$20.1 Million | HK$33.6 Million | -40.2% | | Net Current Assets | HK$0.1 Million | HK$9.9 Million | -99.0% | | Current Ratio | 1.0 | 1.12 | -0.12 | | Trade Receivables Turnover Days | Approx. 56 Days | Approx. 53 Days | +3 Days | | Trade Payables Turnover Days | Approx. 46 Days | Approx. 43 Days | +3 Days | | Inventory Turnover Days | Approx. 46 Days | Approx. 33 Days | +13 Days | | Total Bank Borrowings | HK$91.9 Million | HK$92.4 Million | -0.5% | | Gearing Ratio | 13.0% | 12.7% | +0.3 percentage points | | Net Borrowings | HK$71.2 Million | HK$58.2 Million | +22.3% | | Net Gearing Ratio | 10.0% | 8.0% | +2.0 percentage points | - The Group's capital expenditure in China was **HK$0.2 million**, primarily for property, plant, and equipment, a significant decrease from the prior period[34](index=34&type=chunk) [Outlook](index=16&type=section&id=Outlook) The corrugated packaging industry is expected to remain challenging, but the Group anticipates resuming upstream operations and benefiting from increasing demand for eco-friendly paper packaging - The operating environment for the corrugated packaging industry is expected to remain challenging, facing soaring manufacturing costs and weak market demand[36](index=36&type=chunk) - The Group anticipates its upstream business will resume operations after completing the coal-to-gas boiler conversion project to achieve vertical integration advantages[36](index=36&type=chunk) - Stricter controls on plastic packaging in China and market focus on sustainability will drive demand for environmentally friendly paper packaging, benefiting the Group's business[36](index=36&type=chunk) - The Group will focus on strategies such as pricing power, increasing sales volume, improving production efficiency, and reducing energy use and raw material waste[36](index=36&type=chunk) [Human Resources](index=16&type=section&id=Human%20Resources) The Group employed approximately 206 full-time staff as of June 30, 2025, a decrease from the prior period, offering competitive remuneration and performance-based incentives - As of June 30, 2025, the Group employed approximately **206** full-time staff, a decrease from **229** as of December 31, 2024[37](index=37&type=chunk) - The Group offers competitive remuneration packages to employees and may grant share options and discretionary bonuses based on performance[37](index=37&type=chunk) [Audit Committee](index=16&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors, reviewed the interim results, financial statements, risk management, internal controls, and financial reporting - The Audit Committee, consisting of three independent non-executive directors, has reviewed the Group's interim results announcement and financial statements, and discussed risk management, internal controls, and financial reporting matters[38](index=38&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=16&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the six months ended June 30, 2025 - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[39](index=39&type=chunk) [Model Code for Securities Transactions](index=17&type=section&id=Model%20Code%20for%20Securities%20Transactions) The Company has adopted a code of conduct for directors' securities transactions, which is no less stringent than the Model Code in Appendix C3 of the Listing Rules - The Company has adopted a code of conduct for directors' securities transactions, with terms no less stringent than the Model Code set out in Appendix C3 of the Listing Rules[40](index=40&type=chunk) [Corporate Governance](index=17&type=section&id=Corporate%20Governance) The Company's corporate governance practices include deviations from certain code provisions regarding the roles of Chairman and CEO, audit committee meetings, and remuneration committee responsibilities [Code Provision C.2.1](index=17&type=section&id=Code%20Provision%20C.2.1) The Company deviates from the code provision requiring written delineation of Chairman and CEO responsibilities, as their roles are considered clearly defined - The Company has not formally separated the roles of Chairman and Chief Executive Officer in writing, but the Board believes their respective responsibilities are clearly defined[42](index=42&type=chunk)[43](index=43&type=chunk) [Code Provision D.3.3](index=17&type=section&id=Code%20Provision%20D.3.3) The Company deviates from the code provision for the Audit Committee to meet with auditors at least twice annually, as no auditors were engaged for the interim review - The Audit Committee meets with the auditors once a year, instead of the minimum two times required by the code, as no auditors were engaged to review the interim report[42](index=42&type=chunk)[43](index=43&type=chunk) [Code Provision E.1.2](index=18&type=section&id=Code%20Provision%20E.1.2) The Company deviates from the code provision for the Remuneration Committee to review senior management remuneration, which is currently handled by the Chairman and/or CEO - The Remuneration Committee only reviews the remuneration of Directors, while senior management remuneration is handled by the Chairman and/or Chief Executive Officer[44](index=44&type=chunk)[48](index=48&type=chunk) [Public Float](index=18&type=section&id=Public%20Float) As of the announcement date, at least 25% of the Company's total issued shares are held by the public - As of the date of this announcement, at least **25%** of the Company's total issued shares are held by the public[45](index=45&type=chunk) [Publication of Results Announcement and Interim Report](index=18&type=section&id=Publication%20of%20Results%20Announcement%20and%20Interim%20Report) The results announcement has been published on the Company's and HKEX websites, with the interim report to be dispatched to shareholders and published in September 2025 - This results announcement has been published on the Company's website and the website of Hong Kong Exchanges and Clearing Limited[46](index=46&type=chunk) - The interim report for the six months ended June 30, 2025, will be dispatched to shareholders and published on the Company's and HKEX websites in September 2025[46](index=46&type=chunk) [Acknowledgement](index=18&type=section&id=Acknowledgement) The Board of Directors extends its sincere gratitude to shareholders, business partners, and company employees - The Board of Directors extends its sincere gratitude to shareholders, business partners, and company employees[47](index=47&type=chunk)

[Supplemental Announcement to the 2024 Annual Report](index=1&type=section&id=%E4%BA%8C%E9%9B%B6%E4%BA%8C%E5%9B%9B%E5%B9%B4%E5%B9%B4%E5%A0%B1%E4%B9%8B%E8%A3%9C%E5%85%85%E5%85%AC%E5%91%8A) [Details of the 2023 Share Option Scheme](index=1&type=section&id=%E4%BA%8C%E9%9B%B6%E4%BA%8C%E4%B8%89%E5%B9%B4%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%A8%88%E5%8A%83%E8%A9%B3%E6%83%85) This supplemental announcement provides additional information on the 2023 Share Option Scheme disclosed in Hop Fung Group Holdings Limited's 2024 Annual Report, detailing authorization limits, vesting periods, exercise periods, acceptance terms, and share subscription price determination criteria [Maximum Entitlement for Each Eligible Participant](index=1&type=section&id=%E5%90%84%E5%90%88%E8%B3%87%E6%A0%BC%E5%8F%83%E8%88%87%E8%80%85%E5%8F%AF%E7%8D%B2%E6%8E%88%E6%AC%8A%E6%AC%8A%E7%9B%8A%E4%B8%8A%E9%99%90) This section clarifies the maximum total number of shares that various eligible participants may be granted and exercise within a 12-month period under the 2023 Share Option Scheme and other related plans, and specifies conditions requiring shareholder approval - The total number of shares issued upon exercise of share options and awards to any grantee within any 12-month period (including the grant date) shall not exceed **1% of the company's then-issued share capital**[4](index=4&type=chunk) - Granting share options to directors (excluding independent non-executive directors), chief executives, or their associates, if resulting in the aggregate of shares granted and to be granted within 12 months exceeding **0.1% of the issued shares**, requires shareholder approval, with relevant parties abstaining from voting[4](index=4&type=chunk) - Granting share options to independent non-executive directors, substantial shareholders, or their associates, if resulting in the aggregate of shares granted and to be granted within 12 months exceeding **0.1% of the issued shares**, requires shareholder approval, with relevant parties abstaining from voting[5](index=5&type=chunk) [Vesting Period](index=2&type=section&id=%E6%AD%B8%E5%B1%AC%E6%9C%9F) This section outlines the minimum holding period before share options can be exercised and notes the Board's discretion to determine shorter vesting periods and set performance targets - Grantees must hold share options for a minimum of **12 months** before exercise[6](index=6&type=chunk) - The Board (or Remuneration Committee) may, at its discretion, grant shorter vesting periods to employee participants[6](index=6&type=chunk) - The Board may determine and set performance targets that must be achieved before the exercise of share options[6](index=6&type=chunk) [Exercise Period](index=2&type=section&id=%E8%A1%8C%E4%BD%BF%E6%9C%9F) This section stipulates the maximum period during which share options can be exercised - Share options may be exercised at any time within the period determined and notified by the directors to the grantee, but not exceeding **ten (10) years** from the date of the share option offer[7](index=7&type=chunk) [Time for Acceptance and Vesting of Share Options](index=2&type=section&id=%E6%8E%A5%E7%B4%8D%E8%B3%BC%E8%82%A1%E6%AC%8A%E5%8F%8A%E6%AD%B8%E5%B1%AC%E4%B9%8B%E6%99%82%E9%96%93) This section clarifies the acceptance deadline for share option offers and the nominal consideration required - Offers may be accepted within a maximum of **21 days** from the date the offer is made (which must be a business day)[8](index=8&type=chunk) - A consideration of **HK$1.00** must be paid upon acceptance[8](index=8&type=chunk) [Basis for Determining Share Subscription Price](index=2&type=section&id=%E8%82%A1%E4%BB%BD%E8%AA%8D%E8%B3%BC%E5%83%B9%E7%9A%84%E9%8E%9A%E5%AE%9A%E5%9F%BA%E6%BA%96) This section details the three criteria for determining the share option subscription price, stipulating that the subscription price must not be lower than the highest of these - The subscription price for any share option shall not be less than the highest of the following three items[9](index=9&type=chunk) - 1. The closing price of the shares as stated in the daily quotation sheet of the Stock Exchange on the date of grant[9](index=9&type=chunk) - 2. The average closing price of the shares as stated in the daily quotation sheets of the Stock Exchange for the **five business days** immediately preceding the date of grant[9](index=9&type=chunk) - 3. The nominal value of the shares[10](index=10&type=chunk) [Board Members](index=3&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83%E6%88%90%E5%93%A1) This section lists the current executive and independent non-executive directors of Hop Fung Group Holdings Limited as of the announcement date - Executive Directors include: Mr. Hui Sum Ping, Mr. Hui Sum Tai, and Ms. Hui Yuk Ling[11](index=11&type=chunk) - Independent Non-Executive Directors include: Mr. Cho Sze Wai, Mr. Wong Chu Leung, and Mr. Chow Suk Ming[11](index=11&type=chunk)

Group 1 - The company, Hefeng Group (02320.HK), has announced a board meeting scheduled for August 22, 2025 [1] - The meeting will consider and approve the unaudited interim results report for the six months ending June 30, 2025, and the distribution of an interim dividend, if any [1] - Other matters will also be addressed during the board meeting [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。 董事會召開日期 合豐集團控股有限公司（「本公司」及其附屬公司「本集團」）董事會（「董事會」）茲 通告謹定於二零二五年八月二十二日舉行董事會會議，以考慮及通過本集團截至 二零二五年六月三十日止六個月未經審核之中期業績報告及派發中期股息（如有）， 以及處理其他事項。 承董事會命 合豐集團控股有限公司 公司秘書 陳偉民 香港，二零二五年八月八日 許玉玲 獨立非執行董事： （於開曼群島註冊成立的有限公司） 股份代號：2320 於本公告日期，本公司董事為： 執行董事： 許森平 許森泰 曹思維 黃珠亮 周淑明 ...