Management Discussion and Analysis [Financial Overview](index=4&type=section&id=FINANCIAL%20OVERVIEW) The Group's revenue increased by 30.9% to HKD 62.2 million, but operating expenses surged by 107.6% (driven by arbitration costs and bad debt provisions), leading to a 115.2% expansion in loss for the period to HKD 22.6 million, with a slight decrease in gross margin and significant growth in other income and gains or losses 2025 First Half Financial Overview (HKD million) | Indicator | 2025 First Half | 2024 First Half | Change Amount | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Revenue | 62.2 | 47.5 | 14.7 | ↑30.9% | | Gross Profit | 9.6 | 7.9 | 1.7 | ↑21.5% | | Gross Margin | 15.4% | 16.6% | - | ↓1.2% | | Operating Expenses | (41.1) | (19.8) | (21.3) | ↑107.6% | | Operating Loss | (31.5) | (11.9) | (19.6) | ↑164.7% | | Other Income and Gains or Losses | 8.9 | 1.4 | 7.5 | ↑535.7% | | Loss for the Period | (22.6) | (10.5) | (12.1) | ↑115.2% | | Basic and Diluted Loss Per Share (HK cents) | (4.1) | (2.0) | (2.1) | ↑105.0% | - Gross margin decreased by **1.2 percentage points to 15.4%**, primarily due to intensified market competition compressing profit levels[9](index=9&type=chunk)[11](index=11&type=chunk) - Operating expenses significantly increased by **107.6% to HKD 41.1 million**, mainly due to substantial fees from arbitration cases and legal proceedings for completed projects, as well as large provisions for bad debts and expected credit losses due to deteriorating business conditions in Hong Kong[9](index=9&type=chunk)[11](index=11&type=chunk) - Other income and gains or losses grew by **535.7% to HKD 8.9 million**, primarily driven by interest income from restricted cash pledged for performance bonds and fair value gains on financial assets[9](index=9&type=chunk)[11](index=11&type=chunk) [Business Review and Prospects](index=6&type=section&id=BUSINESS%20REVIEW%20AND%20PROSPECTS) The Group's main businesses are Interior Decoration and Special Projects Business (ISP Business) and Property and Facilities Management Business in China (PFM China Business); ISP Business revenue grew significantly but loss expanded due to litigation costs and bad debt provisions, while PFM China Business revenue declined and turned to loss due to contract expiry, with the Group planning cost control, client cooperation, service diversification, and prudent bidding to address market challenges - The Group's two main business segments are Interior Decoration and Special Projects Business (ISP Business) and Property and Facilities Management Business in China (PFM China Business)[13](index=13&type=chunk)[14](index=14&type=chunk) [Business Overview](index=6&type=section&id=Business%20Overview) The Group primarily operates two major business segments: Interior Decoration and Special Projects Business (ISP Business) and Property and Facilities Management Business in China (PFM China Business) - ISP Business and PFM China Business are the Group's two major business segments[13](index=13&type=chunk)[14](index=14&type=chunk) [Business Results](index=6&type=section&id=Business%20Results) ISP Business revenue increased by 36.7% to HKD 60.0 million, but operating loss expanded by 201.1% to HKD 28.0 million; PFM China Business revenue decreased by 40.5% to HKD 2.2 million and shifted from profit to loss 2025 First Half Segment Results (HKD million) | Indicator | ISP Business (2025) | ISP Business (2024) | Change % | PFM China Business (2025) | PFM China Business (2024) | Change % | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 60.0 | 43.9 | ↑36.7% | 2.2 | 3.7 | ↓40.5% | | Gross Profit | 7.8 | 5.4 | ↑44.4% | 1.8 | 2.5 | ↓28.0% | | Operating Expenses | (35.8) | (14.7) | ↑143.5% | (2.1) | (2.3) | ↓8.7% | | Operating (Loss) / Profit | (28.0) | (9.3) | ↑201.1% | (0.3) | 0.2 | ↓250.0% | | (Loss) / Profit for the Period | (27.9) | (9.0) | ↑210.0% | (0.3) | 0.3 | ↓200.0% | [Interior Decoration and Special Projects Business](index=6&type=section&id=ISP%20Business) As the Group's primary revenue source, ISP Business revenue grew by 36.7% to HKD 60.0 million and gross profit by 44.4% to HKD 7.8 million, but operating expenses surged by 143.5% due to arbitration and bad debt provisions, resulting in a net loss of HKD 27.9 million, with future plans to focus on luxury and high-end renovation projects and hotel sector expansion - ISP Business is the Group's primary revenue source, contributing over **90% of revenue** in recent years, having completed over **266 projects** with a cumulative contract value exceeding **HKD 9.3 billion** as of June 30, 2025[17](index=17&type=chunk)[18](index=18&type=chunk) - During the reporting period, ISP Business revenue increased by **36.7% to HKD 60.0 million**, and gross profit grew by **44.4% to HKD 7.8 million**, reflecting improved operational efficiency[22](index=22&type=chunk)[24](index=24&type=chunk) - Operating expenses surged by **143.5% to HKD 35.8 million**, primarily due to arbitration hearing fees for completed projects, preparation fees for ongoing litigation, and provisions for bad debts and expected credit losses arising from increased credit risk due to deteriorating business conditions in Hong Kong[23](index=23&type=chunk)[25](index=25&type=chunk) - In the reporting period, ISP Business secured new contracts totaling over **HKD 85.0 million**, including a residential development project in Chung Ha Road, commercial and residential unit renovation projects, and hoarding, demolition, addition, and alteration works for a school in Causeway Bay[20](index=20&type=chunk)[21](index=21&type=chunk) - As of the reporting date, ISP Business has submitted tenders for projects with a total contract value of approximately **HKD 600.0 million** awaiting approval; as of June 30, 2025, the total outstanding contract value was approximately **HKD 173.3 million**, expected to be recognized as revenue within the next two years[20](index=20&type=chunk)[21](index=21&type=chunk) - In the future, ISP Business will focus on luxury residential development and high-end renovation projects, seek expansion projects from existing clients, and diversify into hotel renovation opportunities[27](index=27&type=chunk)[29](index=29&type=chunk) [Property and Facilities Management Business in China](index=10&type=section&id=PFM%20China%20Business) PFM China Business faced economic uncertainty and intensified market competition in the first half of 2025, with revenue declining by 40.5% to HKD 2.2 million and shifting to a net loss of HKD 0.3 million due to the expiry of a large commercial property management contract in Shanghai, prompting the Group to maintain a conservative organizational structure, diversify services, and actively seek new business for sustainable growth - PFM China Business revenue decreased by **40.5% to HKD 2.2 million**, and gross profit decreased by **28.0% to HKD 1.8 million**, primarily due to the expiry of a large commercial property management contract in Shanghai[31](index=31&type=chunk)[33](index=33&type=chunk) - PFM China Business shifted from a net profit of **HKD 0.3 million** in the same period last year to a net loss of **HKD 0.3 million**[31](index=31&type=chunk)[33](index=33&type=chunk) - A new residential property management contract was secured after the reporting period, indicating an improving trend in client acquisition[32](index=32&type=chunk)[34](index=34&type=chunk) - The Group will maintain a conservative organizational structure, enhance business resilience and competitiveness through service diversification, and actively seek new alternative businesses to expand revenue streams[32](index=32&type=chunk)[34](index=34&type=chunk) [Outlook of the Group](index=11&type=section&id=Outlook%20of%20the%20Group) The Group anticipates continued economic challenges in the local market, including suppressed investment sentiment and declining market demand, which will negatively impact the ISP business, but remains optimistic about long-term prospects, aiming for sustainable growth and shareholder value creation through project diversification, robust liquidity, and leveraging its track record and professional team - The Group anticipates the local market will continue to face economic challenges, including cautious sentiment from potential business partners and property owners, escalating global inflationary pressures, and financial constraints on major developers[36](index=36&type=chunk)[37](index=37&type=chunk) - The Group will diversify its project portfolio, focusing on luxury residential development and renovation, commercial properties, and local residential projects, while maintaining robust liquidity to support potential large-scale projects[36](index=36&type=chunk)[37](index=37&type=chunk) - The Group remains optimistic about its long-term prospects, expecting to maintain solid financial performance, achieve sustainable growth, and continue creating value for shareholders in the coming years[38](index=38&type=chunk) [Financial Position and Financial Risk Management](index=12&type=section&id=Financial%20Position%20and%20Financial%20Risk%20Management) As of June 30, 2025, the Group had no outstanding bank loans, with funding primarily from retained earnings and internal cash flow, and plans to use existing cash and cash equivalents to strengthen its competitive advantage, purchase performance bonds, and cover upfront project costs for bidding on larger projects, while adopting a prudent financial risk management approach with minimal foreign exchange risk and no significant investments, capital commitments, or contingent liabilities (except for disclosed litigation cases) - As of June 30, 2025, the Group had no outstanding bank loans, with funding primarily supported by retained earnings from operating activities and internal cash flow[40](index=40&type=chunk)[42](index=42&type=chunk) - The Group plans to utilize existing cash and cash equivalents to purchase performance bonds and cover upfront project costs, aiming to bid for more large-scale projects, increase winning rates, and facilitate ISP business expansion[41](index=41&type=chunk)[42](index=42&type=chunk) 2025 First Half Financial Position (HKD thousand) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | 285,217 | 297,556 | | Current Assets | 283,052 | 295,659 | | Current Liabilities | 146,683 | 146,813 | | Net Assets | 138,061 | 150,306 | | Net Assets Per Share (HK cents) | 19.2 | 29.8 | | Current Ratio | 1.9 | 2.0 | - The Group's foreign exchange risk is minimal, and as of June 30, 2025, and the reporting date, there were no significant investments, capital commitments, or contingent liabilities, except for a writ of summons related to the Yuen Long factory development project[45](index=45&type=chunk)[46](index=46&type=chunk)[51](index=51&type=chunk) [Cash Management](index=13&type=section&id=Cash%20Management) The Group employs a centralized cash management system, primarily placing cash balances exceeding immediate operational needs into short-term deposits with licensed banks in Hong Kong - The Group employs a centralized cash management system, with surplus cash primarily placed in short-term deposits with licensed banks in Hong Kong[47](index=47&type=chunk)[52](index=52&type=chunk) [Human Resources](index=13&type=section&id=Human%20Resources) As of June 30, 2025, the Group employed 240 staff (including directors), a decrease from 316 as of December 31, 2024, and continues to prioritize strategic workforce management, maintaining a lean and flexible staff structure, launching wellness programs to support employee well-being and work-life balance, and investing in competitive compensation and benefits and employee development to retain top talent and enhance service quality - As of June 30, 2025, the Group employed **240 staff**, a decrease from **316** as of December 31, 2024[48](index=48&type=chunk)[53](index=53&type=chunk) - The Group prioritizes strategic workforce management, maintaining a lean and flexible staff structure, and has launched wellness programs to support employee well-being and work-life balance[49](index=49&type=chunk)[54](index=54&type=chunk) - The Group continuously invests in competitive compensation and benefits and employee development to attract and retain high-caliber professionals and enhance service quality[49](index=49&type=chunk)[54](index=54&type=chunk) [Interim Dividend](index=13&type=section&id=INTERIM%20DIVIDEND) The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2025 - The Board of Directors resolved not to declare an interim dividend for the first half of 2025 (2024: nil)[50](index=50&type=chunk)[55](index=55&type=chunk) Report on Review of Interim Condensed Consolidated Financial Statements [Introduction](index=14&type=section&id=INTRODUCTION) This section presents the independent auditor's review report on the unaudited interim condensed consolidated financial statements of ISP Holdings Limited and its subsidiaries for the six months ended June 30, 2025, clarifying the basis of preparation (HKAS 34) and the responsibilities of directors and auditors - The report is a review of the unaudited interim condensed consolidated financial statements of ISP Holdings Limited and its subsidiaries for the six months ended June 30, 2025[56](index=56&type=chunk)[57](index=57&type=chunk) - The financial statements are prepared in accordance with HKAS 34, with directors responsible for preparation and presentation, and the auditor responsible for expressing a review conclusion[56](index=56&type=chunk)[57](index=57&type=chunk) [Scope of Review](index=15&type=section&id=SCOPE%20OF%20REVIEW) The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410, primarily through inquiries and analytical procedures, with a scope significantly narrower than an audit, thus no audit opinion is expressed - The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410, primarily involving inquiries and analytical procedures[58](index=58&type=chunk)[60](index=60&type=chunk) - The scope of the review is narrower than an audit, therefore no audit opinion is expressed[58](index=58&type=chunk)[60](index=60&type=chunk) [Conclusion](index=15&type=section&id=CONCLUSION) Based on the review, the auditor found no matters that cause them to believe the interim condensed consolidated financial statements are not prepared, in all material respects, in accordance with HKAS 34 - The auditor found no matters indicating that the interim condensed consolidated financial statements are not prepared in all material respects in accordance with HKAS 34[59](index=59&type=chunk)[61](index=61&type=chunk) Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income This statement presents the Group's unaudited consolidated profit or loss and other comprehensive income for the six months ended June 30, 2025, showing a loss for the period of HKD 22.6 million, a significant increase from the HKD 10.5 million loss in the prior year Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (HKD thousand) | Indicator | 2025 First Half | 2024 First Half | | :--- | :--- | :--- | | Revenue | 62,243 | 47,547 | | Cost of Sales and Services | (52,682) | (39,658) | | Gross Profit | 9,561 | 7,889 | | Other Income and Gains or Losses | 8,887 | 1,380 | | General and Administrative Expenses | (37,118) | (20,839) | | Interest Expenses | (27) | (34) | | Impairment Loss (Provision) / Reversal, Net on Receivables and Contract Assets | (3,936) | 1,112 | | Loss Before Taxation | (22,633) | (10,492) | | Taxation | (2) | 3 | | Loss for the Period | (22,635) | (10,489) | | Total Comprehensive Loss for the Period Attributable to Equity Holders of the Company | (22,210) | (10,691) | | Basic and Diluted Loss Per Share (HK cents) | (4.1) | (2.0) | Condensed Consolidated Statement of Financial Position This statement presents the Group's unaudited condensed consolidated financial position as of June 30, 2025, showing total assets of HKD 285.2 million, net current assets of HKD 136.4 million, and net assets of HKD 138.1 million, a decrease from the end of 2024 Condensed Consolidated Statement of Financial Position (HKD thousand) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Non-Current Assets | 2,165 | 1,897 | | Total Current Assets | 283,052 | 295,659 | | Total Current Liabilities | 146,683 | 146,813 | | Total Non-Current Liabilities | 473 | 437 | | Net Assets | 138,061 | 150,306 | | Share Capital | 7,173 | 50,486 | | Reserves | 130,888 | 99,820 | | Total Equity | 138,061 | 150,306 | - As of June 30, 2025, net assets were **HKD 138.1 million**, a decrease from **HKD 150.3 million** as of December 31, 2024[65](index=65&type=chunk) Condensed Consolidated Statement of Changes in Equity This statement presents the Group's unaudited condensed consolidated statement of changes in equity for the six months ended June 30, 2025, showing total equity of HKD 138.1 million at period-end, a reduction from HKD 150.3 million at the beginning of the period, primarily due to loss for the period and share capital reorganization, though a rights issue increased share capital Condensed Consolidated Statement of Changes in Equity (HKD thousand) | Indicator | January 1, 2025 (Audited) | Loss for the Period | Other Comprehensive Income | Capital Reduction | New Shares Issued from Rights Issue (Net of Transaction Costs) | June 30, 2025 (Unaudited) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Share Capital | 50,486 | – | – | (45,437) | 2,124 | 7,173 | | Share Premium | – | – | – | – | 7,841 | 7,841 | | Capital Reduction Reserve | – | – | – | 45,437 | – | 45,437 | | Merger Reserve | 1,513 | – | – | – | – | 1,513 | | Exchange Reserve | (3,566) | – | 425 | – | – | (3,141) | | Retained Profits | 101,873 | (22,635) | – | – | – | 79,238 | | **Total Equity** | **150,306** | **(22,635)** | **425** | **–** | **9,965** | **138,061** | - As of June 30, 2025, total equity was **HKD 138.1 million**, a decrease from **HKD 150.3 million** as of January 1, 2025[66](index=66&type=chunk) - Share capital reorganization (including capital reduction and share split) and the rights issue of new shares impacted the share capital structure[66](index=66&type=chunk)[130](index=130&type=chunk)[138](index=138&type=chunk) Condensed Consolidated Statement of Cash Flows This statement presents the Group's unaudited condensed consolidated cash flows for the six months ended June 30, 2025, showing net cash used in operating activities of HKD 22.6 million, net cash generated from investing activities of HKD 12.3 million, and net cash generated from financing activities of HKD 9.0 million, resulting in a net decrease in cash and cash equivalents of HKD 1.3 million Condensed Consolidated Statement of Cash Flows (HKD thousand) | Indicator | 2025 First Half | 2024 First Half | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (22,624) | (21,947) | | Net Cash Generated From / (Used In) Investing Activities | 12,300 | (3,407) | | Net Cash Generated From / (Used In) Financing Activities | 9,035 | (936) | | Net Decrease in Cash and Cash Equivalents | (1,289) | (26,290) | | Cash and Cash Equivalents at End of Period | 20,620 | 41,488 | - Net cash used in operating activities was **HKD 22.6 million**, primarily due to operating losses[68](index=68&type=chunk) - Net cash generated from investing activities was **HKD 12.3 million**, mainly from proceeds of **HKD 11.87 million** from the disposal of financial assets at fair value through profit or loss[68](index=68&type=chunk) - Net cash generated from financing activities was **HKD 9.0 million**, primarily from proceeds of **HKD 10.83 million** from the rights issue of new shares[68](index=68&type=chunk) Notes to the Interim Condensed Consolidated Financial Statements [General Information](index=20&type=section&id=GENERAL%20INFORMATION) ISP Holdings Limited was incorporated in Bermuda on August 4, 2003, and listed on the Hong Kong Stock Exchange on October 9, 2003, with its principal businesses being interior decoration and special projects in Hong Kong (ISP Business) and property and facilities management in China (PFM China Business) - ISP Holdings Limited was incorporated in Bermuda on **August 4, 2003**, and listed on the Hong Kong Stock Exchange on **October 9, 2003**[69](index=69&type=chunk)[73](index=73&type=chunk) - The Group's principal businesses are interior decoration and special projects in Hong Kong and property and facilities management in China[70](index=70&type=chunk)[73](index=73&type=chunk) [Basis of Preparation](index=20&type=section&id=BASIS%20OF%20PREPARATION) The interim condensed consolidated financial statements are prepared in accordance with HKAS 34 and have adopted the revised HKAS 21 (Lack of Exchangeability) for the first time, which is not expected to have a material impact on the Group's financial statements, with the Group maintaining prudent liquidity risk management and regularly monitoring its financial position - The financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" and relevant disclosure requirements of the Listing Rules of the Stock Exchange[71](index=71&type=chunk)[74](index=74&type=chunk) - The revised Hong Kong Accounting Standard 21 "Lack of Exchangeability" was adopted for the first time and is not expected to have a material impact on the Group's condensed consolidated financial statements[72](index=72&type=chunk)[74](index=74&type=chunk)[75](index=75&type=chunk)[76](index=76&type=chunk) - The Group adopts prudent liquidity risk management, including maintaining adequate bank balances and cash, and regularly monitors its financial position, capital structure, and working capital levels[78](index=78&type=chunk)[80](index=80&type=chunk) [Critical Accounting Estimates and Judgements](index=22&type=section&id=CRITICAL%20ACCOUNTING%20ESTIMATES%20AND%20JUDGEMENTS) The preparation of the interim condensed consolidated financial statements requires management to make judgments, estimates, and assumptions, which are consistent with those applied in the consolidated financial statements for the year ended December 31, 2024 - The preparation of financial statements involves management making judgments, estimates, and assumptions, with the primary sources consistent with those applied in the 2024 annual report[81](index=81&type=chunk)[82](index=82&type=chunk)[84](index=84&type=chunk) [Segment Information](index=22&type=section&id=SEGMENT%20INFORMATION) The Group's reportable operating segments include Interior Decoration and Special Projects Business (ISP Business) and Property and Facilities Management Business in China (PFM China Business), whose results are regularly reported to the Executive Committee - The Group's reportable operating segments are ISP Business and PFM China Business, whose results are regularly reported to the Executive Committee[83](index=83&type=chunk)[85](index=85&type=chunk)[86](index=86&type=chunk) 2025 First Half Segment Results (HKD thousand) | Indicator | ISP Business | PFM China Business | Subtotal | Administrative Expenses | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 60,065 | 2,178 | 62,243 | – | 62,243 | | Gross Profit | 7,804 | 1,757 | 9,561 | – | 9,561 | | Operating Expenses | (35,788) | (2,045) | (37,833) | (3,221) | (41,054) | | (Loss) / Profit Before Taxation | (27,878) | (361) | (28,239) | 5,606 | (22,633) | [Other Income and Gains or Losses](index=24&type=section&id=OTHER%20INCOME%20AND%20GAIN%20OR%20LOSS) During the reporting period, the Group's other income and gains or losses significantly increased to HKD 8.9 million (from HKD 1.4 million in the same period of 2024), primarily driven by bank interest income and fair value changes of financial assets at fair value through profit or loss Other Income and Gains or Losses (HKD thousand) | Indicator | 2025 First Half | 2024 First Half | | :--- | :--- | :--- | | Other Income | 74 | 245 | | Bank Interest Income | 4,920 | 952 | | Dividend Income | 465 | 358 | | Fair Value Changes of Financial Assets at Fair Value Through Profit or Loss | 3,543 | (229) | | Exchange (Loss) / Gain | (115) | 54 | | **Total** | **8,887** | **1,380** | - Bank interest income increased from **HKD 952 thousand to HKD 4,920 thousand**, and fair value changes of financial assets at fair value through profit or loss shifted from a loss of **HKD 229 thousand to a gain of HKD 3,543 thousand**[91](index=91&type=chunk) [Interest Expenses](index=24&type=section&id=INTEREST%20EXPENSES) During the reporting period, the Group's interest expenses primarily consisted of interest expenses on lease liabilities, amounting to HKD 27 thousand, a slight decrease from HKD 34 thousand in the prior year Interest Expenses (HKD thousand) | Indicator | 2025 First Half | 2024 First Half | | :--- | :--- | :--- | | Interest Expenses on Lease Liabilities | 27 | 34 | [Loss Before Taxation](index=25&type=section&id=LOSS%20BEFORE%20TAXATION) During the reporting period, the Group's loss before taxation was HKD 22.6 million, primarily impacted by staff costs, depreciation, and a significant increase in professional and legal fees (HKD 22.4 million, compared to HKD 7.6 million in the prior year) Loss Before Taxation Components (HKD thousand) | Indicator | 2025 First Half | 2024 First Half | | :--- | :--- | :--- | | Staff Costs (including Directors' Emoluments) | 21,140 | 22,428 | | Depreciation of Property, Plant and Equipment | 1,081 | 1,095 | | Professional and Legal Fees Included in General and Administrative Expenses | 22,398 | 7,570 | - Professional and legal fees significantly increased from **HKD 7.6 million to HKD 22.4 million**, being one of the main factors contributing to the expanded loss before taxation[94](index=94&type=chunk) [Taxation](index=25&type=section&id=TAXATION) Hong Kong profits tax is provided at a rate of 16.5%, and overseas profits are calculated at local tax rates, with taxation for the reporting period being HKD 2 thousand in deferred tax, compared to a deferred tax reversal of HKD 3 thousand in the prior year - Hong Kong profits tax is provided at a rate of **16.5%**, and overseas profits are calculated at local tax rates[95](index=95&type=chunk)[96](index=96&type=chunk) Taxation (HKD thousand) | Indicator | 2025 First Half | 2024 First Half | | :--- | :--- | :--- | | Deferred Tax | 2 | (3) | [Loss Per Share](index=26&type=section&id=LOSS%20PER%20SHARE) For the six months ended June 30, 2025, basic and diluted loss per share was 4.1 HK cents, an increase from 2.0 HK cents in the prior year, with diluted loss per share being the same as basic loss per share due to the anti-dilutive effect of convertible preference shares Loss Per Share (HK cents) | Indicator | 2025 First Half | 2024 First Half (Restated) | | :--- | :--- | :--- | | Loss for the Period Attributable to Ordinary Equity Holders (HKD thousand) | (22,635) | (10,489) | | Weighted Average Number of Ordinary Shares in Issue (thousand shares) | 557,020 | 532,770 | | Basic Loss Per Share (HK cents) | (4.1) | (2.0) | - Diluted loss per share is the same as basic loss per share because the conversion of convertible preference shares has an anti-dilutive effect[101](index=101&type=chunk) [Dividend](index=26&type=section&id=DIVIDEND) The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2025 - The Board of Directors resolved not to declare an interim dividend for the first half of 2025 (2024: nil)[102](index=102&type=chunk)[103](index=103&type=chunk) [Property, Plant and Equipment](index=27&type=section&id=PROPERTY%2C%20PLANT%20AND%20EQUIPMENT) For the six months ended June 30, 2025, the Group recognized approximately HKD 1.343 million in property, plant and equipment (including right-of-use assets) due to new lease agreements - The Group recognized approximately **HKD 1.343 million** in property, plant and equipment (including right-of-use assets) due to new lease agreements[104](index=104&type=chunk)[105](index=105&type=chunk) [Restricted Cash Deposits](index=27&type=section&id=RESTRICTED%20CASH%20DEPOSITS) As of June 30, 2025, restricted cash deposits amounted to HKD 67.3 million, an increase from HKD 62.6 million at the end of 2024, with these deposits used to settle potential future court case claims related to a custodian and generating HKD 4.687 million in interest income during the reporting period Restricted Cash Deposits (HKD thousand) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Restricted Cash Deposits | 67,307 | 62,620 | - Restricted cash deposits are used to settle potential future court case claims related to a custodian and generated **HKD 4.687 million** in interest income during the reporting period[107](index=107&type=chunk)[109](index=109&type=chunk) [Accounts and Other Receivables and Retention Receivables](index=28&type=section&id=ACCOUNT%20AND%20OTHER%20RECEIVABLES%20AND%20RETENTION%20RECEIVABLES) As of June 30, 2025, total accounts and other receivables and retention receivables amounted to HKD 86.8 million, a slight decrease from HKD 89.0 million at the end of 2024, with accounts receivable aged over 90 days totaling HKD 24.2 million, and the Group having made impairment provisions for accounts and retention receivables Accounts and Other Receivables and Retention Receivables (HKD thousand) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Accounts Receivable (0-30 days) | 14,073 | 14,000 | | Accounts Receivable (Over 90 days) | 24,183 | 27,058 | | Total Accounts Receivable | 38,437 | 41,663 | | Other Receivables | 10,836 | 10,828 | | Impairment of Accounts and Other Receivables | (4,249) | (4,086) | | Retention Receivables | 42,373 | 40,786 | | Impairment of Retention Receivables | (598) | (146) | | **Total** | **86,799** | **89,045** | - The Group's credit period for accounts receivable is generally **30 to 60 days**, with most denominated in HKD[111](index=111&type=chunk) - Approximately **HKD 4.869 million** of retention receivables as of June 30, 2025, are expected to be recovered more than 12 months after the reporting period[113](index=113&type=chunk) [Financial Assets at Fair Value Through Profit or Loss](index=29&type=section&id=FINANCIAL%20ASSETS%20AT%20FVTPL) As of June 30, 2025, financial assets at fair value through profit or loss amounted to HKD 17.7 million, a decrease from HKD 26.0 million at the end of 2024, primarily consisting of Hong Kong-listed equity securities measured at active market quotes (Level 1) Financial Assets at Fair Value Through Profit or Loss (HKD thousand) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Hong Kong Listed Equity Securities | 17,690 | 26,017 | - Listed equity securities are classified as current assets because management expects them to be realized within twelve months after the reporting period[117](index=117&type=chunk) - The fair value of financial assets is measured using Level 1 (quoted prices in active markets)[120](index=120&type=chunk)[123](index=123&type=chunk) [Payables and Accruals](index=31&type=section&id=PAYABLES%20AND%20ACCRUALS) As of June 30, 2025, total payables and accruals amounted to HKD 143.1 million, largely consistent with HKD 142.4 million at the end of 2024, with accounts payable aged over 90 days totaling HKD 31.7 million Payables and Accruals (HKD thousand) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Accounts Payable (0-30 days) | 32,754 | 43,022 | | Accounts Payable (Over 90 days) | 31,680 | 21,000 | | Total Accounts Payable | 79,448 | 75,825 | | Retention Payables, Other Payables and Accruals | 63,606 | 66,619 | | **Total** | **143,054** | **142,444** | - The Group's credit period for accounts payable is generally **30 to 60 days**[125](index=125&type=chunk) [Share Capital](index=32&type=section&id=SHARE%20CAPITAL) As of June 30, 2025, the Group's issued share capital was HKD 7.173 million, a significant decrease from HKD 50.486 million as of January 1, 2025, primarily due to a share capital reorganization (including capital reduction and share split) completed on April 9, 2025, and a rights issue of new shares completed on May 20, 2025, after which the conversion price of convertible preference shares was adjusted from HKD 0.75 to HKD 0.57 per ordinary share Issued and Fully Paid Share Capital (HKD thousand) | Indicator | June 30, 2025 | January 1, 2025 | | :--- | :--- | :--- | | Ordinary Shares | 6,373 | 42,486 | | Convertible Preference Shares | 800 | 8,000 | | **Total** | **7,173** | **50,486** | - A share capital reorganization was completed on **April 9, 2025**, including the cancellation of paid-up share capital at **HKD 0.09 per share**, reducing the par value of ordinary and preference shares from **HKD 0.1 to HKD 0.01**, and a share split[130](index=130&type=chunk)[132](index=132&type=chunk)[133](index=133&type=chunk)[135](index=135&type=chunk)[136](index=136&type=chunk)[137](index=137&type=chunk) - A rights issue was completed on **May 20, 2025**, issuing **212,425,000 new ordinary shares** at a subscription price of **HKD 0.051 per share**[138](index=138&type=chunk) - Following the rights issue, the conversion price of convertible preference shares was adjusted from **HKD 0.75 to HKD 0.57 per ordinary share**[139](index=139&type=chunk) - The Group maintained the public float of at least **25%** as required by the Listing Rules of the Stock Exchange during the reporting period[139](index=139&type=chunk)[142](index=142&type=chunk) [Litigation](index=34&type=section&id=LITIGATION) The Group is involved in two major litigations: an arbitration case where the employer of the Yuen Long factory development project claims approximately HKD 54.4 million from ISP Construction (Engineering) Limited, with hearings completed in the first half of 2025; and a lawsuit where ISPCE claims approximately HKD 98.5 million from ATAL Engineering Limited, with hearings scheduled to commence in the third quarter of 2025, and directors believe it is too early to predict the outcome and the possibility of resource outflow is remote, thus no provision has been recognized - The Group is involved in an arbitration case where the employer of the Yuen Long factory development project claims approximately **HKD 54.4 million**, with hearings completed in the first half of 2025[141](index=141&type=chunk)[143](index=143&type=chunk) - The Group's subsidiary, ISPCE, is suing ATAL Engineering Limited for approximately **HKD 98.5 million**, with hearings scheduled to commence in the third quarter of 2025[144](index=144&type=chunk)[146](index=146&type=chunk) - Directors believe it is too early to predict the outcome of the litigation, and the possibility of resource outflow is remote, thus no provision has been recognized or contingent liability disclosed[145](index=145&type=chunk)[146](index=146&type=chunk) [Related Party Transactions](index=35&type=section&id=RELATED%20PARTY%20TRANSACTIONS) During the reporting period, the Group's key management personnel compensation totaled HKD 3.52 million, and it engaged in related party transactions, including service fee payments and contract work income, with companies controlled by common controlling shareholders and a director Key Management Personnel Compensation (HKD thousand) | Indicator | 2025 First Half | 2024 First Half | | :--- | :--- | :--- | | Salaries, Allowances and Benefits in Kind | 3,441 | 2,235 | | Pension - Defined Contribution Plans | 79 | 68 | | **Total** | **3,520** | **2,303** | Related Party Transactions (HKD thousand) | Transaction Type | Related Party | 2025 First Half | 2024 First Half | | :--- | :--- | :--- | :--- | | Payment for Services | Company of Common Controlling Shareholder | (528) | (2) | | Payment for Services | Company Controlled by a Director | (283) | (143) | | Contract Work Income | Company of Common Controlling Shareholder | 867 | 870 | [Events After the Reporting Period](index=36&type=section&id=EVENTS%20AFTER%20THE%20REPORTING%20PERIOD) No events with significant impact on the company's financial position occurred after the reporting period - No events with significant impact on the company's financial position occurred after the reporting period[151](index=151&type=chunk) Other Information [Directors' and Chief Executive's Interests and Short Positions in the Shares, Underlying Shares and Debentures of the Company and Its Associated Corporations](index=37&type=section&id=DIRECTORS%27%20AND%20CHIEF%20EXECUTIVE%27S%20INTERESTS%20AND%20SHORT%20POSITIONS%20IN%20THE%20SHARES%2C%20UNDERLYING%20SHARES%20AND%20DEBENTURES%20OF%20THE%20COMPANY%20AND%20ITS%20ASSOCIATED%20CORPORATIONS) As of June 30, 2025, Director Leung Yuet Ngor held 298,651 ordinary shares of the Company, representing 0.05% of the total issued ordinary shares, with no other directors or chief executive holding disclosable share interests or short positions Directors' Long Positions in Company Shares (Ordinary Shares) | Director Name | Capacity | Number of Ordinary Shares Held | Approximate Percentage of Total Issued Ordinary Shares | | :--- | :--- | :--- | :--- | | Leung Yuet Ngor | Beneficial Owner | 298,651 | 0.05% | - As of June 30, 2025, no other directors or chief executive, apart from Leung Yuet Ngor, held disclosable share interests or short positions[155](index=155&type=chunk)[156](index=156&type=chunk) [Substantial Shareholders' Interests and Short Positions in the Shares and Underlying Shares of the Company](index=38&type=section&id=SUBSTANTIAL%20SHAREHOLDERS%27%20INTERESTS%20AND%20SHORT%20POSITIONS%20IN%20THE%20SHARES%20AND%20UNDERLYING%20SHARES%20OF%20THE%20COMPANY) As of June 30, 2025, substantial shareholder Li Yuet Wah (through her wholly-owned Champ Key Holdings Limited) held 338,277,949 ordinary shares, representing 53.08% of the total issued ordinary shares, and 80,000,000 convertible preference shares, representing 100% of the total issued convertible preference shares Substantial Shareholders' Long Positions in Company Shares (Ordinary Shares) | Shareholder Name | Capacity | Number of Ordinary Shares Held | Approximate Percentage of Total Issued Ordinary Shares | | :--- | :--- | :--- | :--- | | Li Yuet Wah | Interest in Controlled Corporation | 338,277,949 | 53.08% | | Champ Key Holdings Limited | Beneficial Owner | 338,277,949 | 53.08% | Substantial Shareholders' Long Positions in Company Shares (Convertible Preference Shares) | Shareholder Name | Capacity | Number of Convertible Preference Shares Held | Percentage of Total Issued Convertible Preference Shares | | :--- | :--- | :--- | :--- | | Li Yuet Wah | Interest in Controlled Corporation | 80,000,000 | 100% | | Champ Key Holdings Limited | Beneficial Owner | 80,000,000 | 100% | - Champ Key Holdings Limited is wholly owned by Li Yuet Wah and is deemed to be a controlled corporation of Li Yuet Wah under the Securities and Futures Ordinance[160](index=160&type=chunk)[161](index=161&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=40&type=section&id=PURCHASE%2C%20SALE%20OR%20REDEMPTION%20OF%20THE%20COMPANY%27S%20LISTED%20SECURITIES) During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, and as of June 30, 2025, the Company held no treasury shares - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[164](index=164&type=chunk)[168](index=168&type=chunk) - As of June 30, 2025, the Company held no treasury shares[164](index=164&type=chunk)[168](index=168&type=chunk) [Subsequent Event After the Reporting Period](index=40&type=section&id=SUBSEQUENT%20EVENT%20AFTER%20THE%20REPORTING%20PERIOD) No events with significant impact on the company's financial position occurred after the reporting period - No events with significant impact on the company's financial position occurred after the reporting period[165](index=165&type=chunk)[169](index=169&type=chunk) [Review of Interim Results](index=40&type=section&id=REVIEW%20OF%20INTERIM%20RESULTS) The Group's unaudited interim results have been reviewed by the Company's Audit Committee and external auditor BDO Limited in accordance with Hong Kong Standard on Review Engagements 2410 - The Group's interim results have been reviewed by the Company's Audit Committee and external auditor BDO Limited[166](index=166&type=chunk)[170](index=170&type=chunk) - The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410[166](index=166&type=chunk)[170](index=170&type=chunk) [Compliance with the Model Code for Securities Transactions by Directors](index=40&type=section&id=COMPLIANCE%20WITH%20THE%20MODEL%20CODE%20FOR%20SECURITIES%20TRANSACTIONS%20BY%20DIRECTORS) The Board has adopted the Model Code as the standard for directors' securities transactions, and all directors confirmed compliance with the code during the reporting period - The Board has adopted the Model Code as the standard for directors' securities transactions[167](index=167&type=chunk)[171](index=171&type=chunk) - All directors confirmed compliance with the Model Code during the reporting period[167](index=167&type=chunk)[171](index=171&type=chunk) [Changes in Directors' Information](index=41&type=section&id=CHANGES%20IN%20DIRECTORS%27%20INFORMATION) Since the publication date of the 2024 Annual Report, Mr. Lam Chun Kit was appointed as an Executive Director of New Mining Resources Limited on July 1, 2025, and Mr. To Chun Wai resigned as an Independent Non-Executive Director of Nova Group Holdings Limited on August 8, 2025 - Mr. Lam Chun Kit was appointed as an Executive Director of New Mining Resources Limited on **July 1, 2025**[172](index=172&type=chunk)[175](index=175&type=chunk) - Mr. To Chun Wai resigned as an Independent Non-Executive Director of Nova Group Holdings Limited on **August 8, 2025**[173](index=173&type=chunk)[176](index=176&type=chunk) [Compliance with Corporate Governance Code](index=41&type=section&id=COMPLIANCE%20WITH%20CORPORATE%20GOVERNANCE%20CODE) During the reporting period, the Company complied with all code provisions set out in Appendix C1 of the Listing Rules, the Corporate Governance Code - The Company complied with all code provisions of Appendix C1 of the Listing Rules, the Corporate Governance Code, during the reporting period[174](index=174&type=chunk)[177](index=177&type=chunk) Corporate Information This section provides the company's basic corporate information, including board members, company secretary, auditor, principal bankers, registered office, principal place of business in Hong Kong, share registrar, stock code, board lot size, website, and email address - The Board of Directors includes Executive Directors Chu Chun Ho (Chairman) and Leung Yuet Ngor, Non-Executive Director Lam Chun Kit, and Independent Non-Executive Directors Lau Man Tak, Li Hon Man, and To Chun Wai[178](index=178&type=chunk) - The Company Secretary is Chan Kwong Leung, and the auditor is BDO Limited, Hong Kong[178](index=178&type=chunk) - The Company's stock code is **02340**, and the board lot size is **4,000 shares**[178](index=178&type=chunk)

FF301 | 90,000,000,000 HKD | 0.0 | | --- | --- | | 90,000,000,000 HKD | 0.0 | | 2. 股份分類 | 優先股 | 股份類別 | 其他類別 (請註明) | | 於香港聯交所上市 (註1) | | 否 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | N/A | 說明 | 可轉換優先股 | | | | | | | | | 法定/註冊股份數目 | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 10,000,000,000 HKD | | 0.01 | HKD | | 100,000,000 | | 增加 / 減少 (-) | | | 0 | | | HKD | | 0 | | 本月底結存 | | | 10,000,000,000 HKD | | 0.01 | HKD | | 100,000,000 | 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 ...

Core Viewpoint - The company reported a revenue of HKD 62.2 million for the six months ending June 30, 2025, representing a year-on-year increase of 30.9%, but also recorded a loss of HKD 22.6 million, which is a significant increase of 115.2% compared to the previous year [1] Financial Performance - Revenue for the period was HKD 62.2 million, up 30.9% year-on-year [1] - The company incurred a loss of HKD 22.6 million, which is an increase of 115.2% year-on-year [1] - Loss per share was HKD 0.041 [1] Profitability Metrics - Gross profit increased from approximately HKD 7.9 million to about HKD 9.6 million during the reporting period [1] - Gross margin slightly decreased by 1.2 percentage points from 16.6% to 15.4% [1] Operational Challenges - The main factors affecting performance included significant expenses related to arbitration cases and legal proceedings in the interior decoration and special projects business [1] - The hearings for arbitration cases and legal proceedings are scheduled for 2025, leading to substantial preparatory and court-related costs [1] - The business environment in Hong Kong continues to deteriorate, contributing to increased credit risk due to financial constraints faced by several large developers [1] Provisions and Risk Management - The company made substantial provisions for bad debts and expected credit losses during the reporting period to mitigate rising risks [1]

Core Viewpoint - The company reported a consolidated revenue of approximately HKD 62.2 million for the six months ending June 30, 2025, representing a year-on-year increase of 30.9% [1] Financial Performance - The gross profit margin slightly decreased by 1.2 percentage points from 16.6% in the same period last year to 15.4% due to intensified market competition, although gross profit increased from approximately HKD 7.9 million to about HKD 9.6 million [1] - The company recorded a loss attributable to equity holders of approximately HKD 22.6 million, compared to a loss of about HKD 10.5 million in the same period last year [1] - The basic and diluted loss per share for the reporting period was HKD 0.041 [1]

Core Viewpoint - The company reported a revenue of HKD 62.2 million for the six months ending June 30, 2025, representing a year-on-year increase of 30.9%, but incurred a loss of HKD 22.6 million, which is a 115.2% increase compared to the previous year [1] Financial Performance - Revenue for the period was HKD 62.2 million, up 30.9% year-on-year [1] - The company recorded a loss of HKD 22.6 million, which is an increase of 115.2% year-on-year [1] - Loss per share was HKD 0.041 [1] Profitability Metrics - Gross profit increased from approximately HKD 7.9 million to about HKD 9.6 million during the reporting period [1] - Gross margin slightly decreased by 1.2 percentage points from 16.6% to 15.4% [1] Operational Challenges - The main factor affecting performance was significant expenses related to arbitration cases and legal proceedings in the interior decoration and special projects business [1] - The hearings for the arbitration cases and legal proceedings are scheduled for 2025, leading to substantial preparatory and court-related expenses [1] - The business environment in Hong Kong continues to deteriorate, contributing to increased credit risk due to financial constraints faced by several large developers [1] Provisions and Risk Management - The company made substantial provisions for bad debts and expected credit losses during the reporting period to mitigate rising risks [1]

[Financial Overview](index=1&type=section&id=Financial%20Overview) [Overall Performance and Key Drivers](index=1&type=section&id=Overall%20Performance%20and%20Key%20Drivers) Sunpac Holdings Limited recorded revenue growth during the reporting period, but a significant increase in operating expenses due to arbitration and legal costs, bad debt provisions, and intensified market competition led to a decline in gross margin and a substantial widening of loss for the period, partially offset by an increase in other income Financial Overview for the Six Months Ended June 30, 2025 | Metric | 2025 (HK$ million) | 2024 (HK$ million) | Change Amount (HK$ million) | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Revenue | 62.2 | 47.5 | 14.7 | ↑30.9% | | Gross Profit | 9.6 | 7.9 | 1.7 | ↑21.5% | | Gross Margin | 15.4% | 16.6% | - | ↓1.2% | | Operating Expenses | (41.1) | (19.8) | (21.3) | ↑107.6% | | Operating Loss | (31.5) | (11.9) | (19.6) | ↑164.7% | | Other Income and Gains/Losses | 8.9 | 1.4 | 7.5 | ↑535.7% | | Loss for the Period | (22.6) | (10.5) | (12.1) | ↑115.2% | | Loss Before Interest, Tax, Depreciation, and Amortization (EBITDA) | (21.5) | (9.4) | (12.1) | ↑128.7% | | Basic and Diluted Loss Per Share (HK cents) | (4.1) | (2.0) | (2.1) | ↑105.0% | - Revenue grew by **30.9%** to **HK$62.2 million**, primarily benefiting from increased project volume in the interior decoration and special projects business[4](index=4&type=chunk)[5](index=5&type=chunk) - Gross margin slightly decreased by **1.2 percentage points** to **15.4%**, mainly due to intensified market competition[4](index=4&type=chunk)[5](index=5&type=chunk) - Operating expenses surged by **107.6%** to **HK$41.1 million**, primarily due to arbitration and legal costs for the interior decoration and special projects business, and significant bad debt and expected credit loss provisions resulting from a deteriorating business environment in Hong Kong[4](index=4&type=chunk)[5](index=5&type=chunk) - Other income and gains/losses increased from **HK$1.4 million** to **HK$8.9 million**, mainly from interest income on restricted cash pledged for performance bonds and fair value gains on financial assets[4](index=4&type=chunk)[5](index=5&type=chunk) - Loss attributable to owners of the Company was approximately **HK$22.6 million**, a significant increase of **115.2%** from **HK$10.5 million** in the prior year[4](index=4&type=chunk)[6](index=6&type=chunk) [Business Review and Outlook](index=3&type=section&id=Business%20Review%20and%20Outlook) [Business Overview](index=3&type=section&id=Business%20Overview) The Group primarily operates two business segments: interior decoration and special projects, and China property and facilities management - The Group primarily operates two major business segments: interior decoration and special projects business, and China property and facilities management business[7](index=7&type=chunk) [Segment Business Performance](index=3&type=section&id=Segment%20Business%20Performance) The interior decoration and special projects business saw significant growth in revenue and gross profit, but increased operating expenses led to a wider loss; the China property and facilities management business experienced declines in revenue and gross profit, turning from profit to loss due to contract expiry Segment Business Performance (Six Months Ended June 30, HK$ million) | Metric | Interior Decoration and Special Projects Business (2025) | Interior Decoration and Special Projects Business (2024) | Change % | China Property and Facilities Management Business (2025) | China Property and Facilities Management Business (2024) | Change % | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 60.0 | 43.9 | ↑36.7% | 2.2 | 3.7 | ↓40.5% | | Gross Profit | 7.8 | 5.4 | ↑44.4% | 1.8 | 2.5 | ↓28.0% | | Operating Expenses | (35.8) | (14.7) | ↑143.5% | (2.1) | (2.3) | ↓8.7% | | Operating (Loss)/Profit | (28.0) | (9.3) | ↑201.1% | (0.3) | 0.2 | ↓250.0% | | Loss/(Profit) for the Period | (27.9) | (9.0) | ↑210.0% | (0.3) | 0.3 | ↓200.0% | [Interior Decoration and Special Projects Business](index=3&type=section&id=Interior%20Decoration%20and%20Special%20Projects%20Business) As the Group's primary revenue source, this business achieved revenue and gross profit growth by securing new contracts through strong client relationships and excellent performance, despite macroeconomic instability and intense competition; however, arbitration and legal fees, along with bad debt provisions, led to a surge in operating expenses and a net loss - This business is the Group's primary revenue source, contributing over **90%** of revenue, having completed over **266 projects** with a total contract value exceeding **HK$9.3 billion** since its acquisition in late 2012[9](index=9&type=chunk) [Market Environment and Operational Performance](index=4&type=section&id=Market%20Environment%20and%20Operational%20Performance) In H1 2025, the construction industry faced macroeconomic instability, geopolitical uncertainties, inflation, and subdued market sentiment, leading to suppressed investment and increased competition; despite this, the business demonstrated resilience, securing new contracts totaling over HK$85 million, including residential, commercial, school, and yacht renovation projects - The construction industry faces multiple challenges including macroeconomic instability, geopolitical uncertainties, trade protectionism, inflationary pressures, rising vacancy rates, and declining consumer spending, leading to suppressed investment appetite, fewer tenders, and intensified market competition[10](index=10&type=chunk) - Successfully secured several new contracts, including a residential development project on Middle Gap Road, commercial and residential unit renovation projects, hoarding/demolition/addition and alteration works for a school in Causeway Bay, and a custom yacht refurbishment project[10](index=10&type=chunk) - A total of over **HK$85 million** in new contracts were awarded during the reporting period, maintaining stable performance compared to the same period[10](index=10&type=chunk) - Revenue was approximately **HK$60 million**, a **36.7%** increase from the prior period; gross profit was approximately **HK$7.8 million**, a **44.4%** increase, reflecting improved operational efficiency[11](index=11&type=chunk) - Operating expenses surged by **143.5%** to approximately **HK$35.8 million**, primarily due to arbitration hearing and litigation preparation costs, and substantial bad debt and expected credit loss provisions arising from the deteriorating business environment in Hong Kong and financial instability of developers[12](index=12&type=chunk) - Recorded an operating loss of approximately **HK$28 million**, with a net loss for the period of approximately **HK$27.9 million**[12](index=12&type=chunk) [Strategy and Outlook](index=5&type=section&id=Strategy%20and%20Outlook) Facing ongoing challenges, this business will adopt a proactive multi-pronged strategy, including timely project completion, cautious bidding for new projects to balance volume and profit margins, focusing on luxury residential and high-end renovations, pursuing existing client expansion, capitalizing on hotel renovation opportunities, and benefiting from government housing initiatives - Will adopt a proactive, multi-pronged strategy to ensure timely completion of existing projects and maintain high client satisfaction[13](index=13&type=chunk) - Will adopt a cautious bidding approach for new projects, balancing project volume with profit margins, and employ an industry-focused strategy, concentrating on luxury residential development and high-end renovation projects[13](index=13&type=chunk) - Actively pursuing expansion projects from existing clients, seizing hotel renovation opportunities, and benefiting from the recovery in construction and interior decoration demand driven by the government's plan to complete **60,000 housing units**[13](index=13&type=chunk) - As of the announcement date, tenders for new construction, renovation, addition, and alteration works totaling approximately **HK$600 million** have been submitted for approval; as of June 30, 2025, the total value of outstanding contracts on hand was approximately **HK$173.3 million**, expected to be recognized as revenue over the next two years[10](index=10&type=chunk) [China Property and Facilities Management Business](index=6&type=section&id=China%20Property%20and%20Facilities%20Management%20Business) Operating in a challenging market, the China property and facilities management business experienced significant declines in revenue and gross profit, turning to a net loss, primarily due to the expiry of a major Shanghai commercial property management contract, despite signs of market recovery; the Group will maintain a conservative organizational structure and seek service diversification and alternative businesses to support sustainable growth amidst a complex and unstable external environment - Performance declined due to economic uncertainty, subdued consumer sentiment in both mainland China and Hong Kong, and intense competition, exacerbated by the expiry of a major commercial property management contract in Shanghai[15](index=15&type=chunk) - Revenue significantly decreased by **40.5%** to approximately **HK$2.2 million** compared to the prior year, and gross profit decreased by **28.0%** to approximately **HK$1.8 million**[15](index=15&type=chunk) - Recorded a net loss of approximately **HK$0.3 million**, compared to a net profit of approximately **HK$0.3 million** in the prior period[15](index=15&type=chunk) - Observed a gradual recovery in the China market supported by government policy relaxation and economic stimulus plans, and was awarded a new residential property management contract after the reporting period[16](index=16&type=chunk) - Will maintain a conservative organizational structure, enhance business resilience and competitiveness through service diversification, and actively seek new alternative businesses to expand revenue streams[16](index=16&type=chunk) [Group Outlook](index=6&type=section&id=Group%20Outlook) The Group anticipates continued economic challenges in the local market but will actively implement strategies including diversifying its project portfolio, focusing on stable market segments, maintaining robust liquidity, and remains optimistic about long-term sustainable growth and shareholder value creation - The local market is expected to continue facing economic challenges, including cautious sentiment from potential business partners and property owners, escalating global inflationary pressures, and financial constraints on major developers[17](index=17&type=chunk) - Actively implementing response strategies, diversifying the project portfolio, and focusing on expanding into relatively stable market segments such as luxury residential development and renovation, commercial properties, and local residential projects[17](index=17&type=chunk) - Maintaining robust liquidity to support potential large-scale projects, and with a strong track record, extensive industry experience, and professional team, is capable of undertaking major projects and delivering high-quality results[17](index=17&type=chunk) - Remains optimistic about the long-term outlook, expecting to maintain solid financial performance, achieve sustainable growth, and continue creating value for shareholders in the coming years[18](index=18&type=chunk) - Core operations are built on customer-centricity, integrity, teamwork, innovative thinking, and the pursuit of excellence, committed to enhancing customer satisfaction[18](index=18&type=chunk) [Financial Position and Financial Risk Management](index=7&type=section&id=Financial%20Position%20and%20Financial%20Risk%20Management) [Sources of Funding and Liquidity](index=7&type=section&id=Sources%20of%20Funding%20and%20Liquidity) The Group currently has no bank loans, with funding primarily from retained earnings and internally generated cash flow from operations; future financial needs will be met through shareholders' equity and bank credit, while planning to utilize cash to strengthen competitive advantages, purchase performance bonds, and cover upfront costs to expand business - As of June 30, 2025, the Group had no outstanding bank loans[19](index=19&type=chunk) - Funding sources are primarily supported by retained earnings from operating activities and internally generated cash flow[19](index=19&type=chunk) - Management expects to meet foreseeable future financial needs through shareholders' equity and bank credit facilities[19](index=19&type=chunk) - Existing cash and cash equivalents balances are intended to consolidate competitive advantages, purchase performance bonds, and cover upfront costs to bid for more large-scale projects and improve success rates[19](index=19&type=chunk) - Management will continue to actively and regularly monitor the financial position and capital structure to maintain sufficient working capital and liquidity[19](index=19&type=chunk) [Financial Position Overview](index=7&type=section&id=Financial%20Position%20Overview) As of June 30, 2025, the Group's total assets and net assets decreased, while the current ratio remained healthy, though net asset value per share declined Financial Position (HK$ thousand) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | 285,217 | 297,556 | | Trade and Other Receivables, Retention Monies, and Other Assets | 180,313 | 191,978 | | Restricted Cash Deposits, Pledged Bank Deposits/Deposits with Original Maturity Over Three Months, and Cash and Cash Equivalents | 102,739 | 103,681 | | Current Assets | 283,052 | 295,659 | | Current Liabilities | 146,683 | 146,813 | | Non-current Liabilities | 473 | 437 | | Net Assets | 138,061 | 150,306 | | Net Asset Value Per Share (HK cents) | 19.2 | 29.8 | | Current Ratio | 1.9 | 2.0 | [Risk Management](index=7&type=section&id=Risk%20Management) The Group prudently manages financial risks and resources, with minimal foreign exchange exposure and no significant investments, capital commitments, or contingent liabilities (except for one lawsuit), maintaining sufficient liquidity through a centralized cash management system - The Group adopts a prudent approach to managing its financial risks and resources[20](index=20&type=chunk) - Foreign exchange risk is minimal as most assets and liabilities are denominated in HKD, and no foreign exchange hedging is deemed necessary[21](index=21&type=chunk) - There are no significant investments, capital commitments, or contingent liabilities, except for a writ of summons concerning the Yuen Long factory development[21](index=21&type=chunk) - A centralized cash management system is in place, with surplus cash balances primarily held as short-term bank deposits with various licensed banks in Hong Kong[22](index=22&type=chunk) [Human Resources](index=8&type=section&id=Human%20Resources) [Human Resources Management](index=8&type=section&id=Human%20Resources%20Management) As of June 30, 2025, the Group employed 240 staff, a reduction from year-end, prioritizing strategic workforce management, maintaining a lean and flexible structure, and investing in wellness programs, operational efficiency, competitive compensation, and employee development to retain top talent and support sustainable growth - As of June 30, 2025, the Group employed a total of **240 staff** in Hong Kong and China (December 31, 2024: **316 staff**)[23](index=23&type=chunk) - Continues to prioritize strategic workforce management, particularly in the interior decoration and special projects business, to maintain a lean and flexible staff structure in response to economic headwinds[24](index=24&type=chunk) - Launched various wellness programs to promote employees' physical and mental health, support employee well-being, and work-life balance[24](index=24&type=chunk) - Enhanced operational efficiency through the adoption of flexible policies, remote work, and digital work models[24](index=24&type=chunk) - Continuously invests in competitive compensation and benefits packages, and actively invests in employee development, providing resources that support personal and professional growth[24](index=24&type=chunk) [Interim Dividend](index=8&type=section&id=Interim%20Dividend) [Interim Dividend Resolution](index=8&type=section&id=Interim%20Dividend%20Resolution) The Board of Directors resolved not to declare an interim dividend for the reporting period - The Board of Directors resolved not to declare an interim dividend for the reporting period (six months ended June 30, 2025) (2024: nil)[25](index=25&type=chunk) [Condensed Consolidated Financial Statements](index=9&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=9&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group recorded a loss for the period of HK$22,635 thousand, a significant increase from a loss of HK$10,489 thousand in the prior year, primarily due to higher cost of sales, surging operating expenses, and impairment loss provisions, despite an increase in other income and gains/losses Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Six Months Ended June 30, HK$ thousand) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | 62,243 | 47,547 | | Cost of Sales and Services | (52,682) | (39,658) | | Gross Profit | 9,561 | 7,889 | | Other Income and Gains/Losses | 8,887 | 1,380 | | General and Administrative Expenses | (37,118) | (20,839) | | Interest Expense | (27) | (34) | | Impairment Loss (Provision)/Reversal of Trade Receivables and Contract Assets, Net | (3,936) | 1,112 | | Loss Before Tax | (22,633) | (10,492) | | Taxation | (2) | 3 | | Loss for the Period | (22,635) | (10,489) | | Other Comprehensive Income/(Loss): Exchange Differences Arising from Translation of Foreign Operations | 425 | (202) | | Total Comprehensive Loss for the Period Attributable to Owners of the Company | (22,210) | (10,691) | | Basic and Diluted Loss Per Share (HK cents) | (4.1) | (2.0) | [Condensed Consolidated Statement of Financial Position](index=10&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets and net assets decreased compared to December 31, 2024, with net current assets and total equity also reducing, mainly influenced by capital reorganization activities such as capital reduction and rights issue Condensed Consolidated Statement of Financial Position (HK$ thousand) | Metric | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Property, Plant and Equipment | 1,948 | 1,678 | | Deferred Tax Assets | 217 | 219 | | **Total Non-current Assets** | **2,165** | **1,897** | | **Current Assets** | | | | Contract Assets | 73,895 | 74,874 | | Trade and Other Receivables and Retention Monies | 86,799 | 89,045 | | Deposits and Prepayments | 1,929 | 2,042 | | Financial Assets at Fair Value Through Profit or Loss | 17,690 | 26,017 | | Restricted Cash Deposits | 67,307 | 62,620 | | Pledged Bank Deposits/Deposits with Original Maturity Over Three Months | 14,812 | 19,471 | | Cash and Cash Equivalents | 20,620 | 21,590 | | **Total Current Assets** | **283,052** | **295,659** | | **Current Liabilities** | | | | Trade and Other Payables and Accruals | 143,054 | 142,444 | | Lease Liabilities | 2,368 | 3,480 | | Tax Payable | 1,261 | 889 | | **Total Current Liabilities** | **146,683** | **146,813** | | **Net Current Assets** | **136,369** | **148,846** | | **Total Assets Less Current Liabilities** | **138,534** | **150,743** | | **Non-current Liabilities** | | | | Long Service Payment Liabilities | 279 | 279 | | Lease Liabilities | 194 | 158 | | **Total Non-current Liabilities** | **473** | **437** | | **Net Assets** | **138,061** | **150,306** | | **Equity Attributable to Owners of the Company** | | | | Share Capital | 7,173 | 50,486 | | Reserves | 130,888 | 99,820 | | **Total Equity** | **138,061** | **150,306** | [Notes to the Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) [Basis of Preparation](index=12&type=section&id=Basis%20of%20Preparation) These condensed consolidated interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 and the Listing Rules, with accounting policies consistent with the prior year's annual report, and the initial adoption of revised Hong Kong Financial Reporting Standards is not expected to have a significant impact on the Group's financial statements - These unaudited condensed consolidated interim financial statements have been prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' issued by the Hong Kong Institute of Certified Public Accountants and the relevant disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[29](index=29&type=chunk) - The initial adoption of revised Hong Kong Financial Reporting Standards, including HKAS 21 (Amendment) 'Lack of Exchangeability', is not expected to have any significant impact on the Group's condensed consolidated financial statements[29](index=29&type=chunk)[30](index=30&type=chunk) [Significant Accounting Estimates and Judgements](index=13&type=section&id=Significant%20Accounting%20Estimates%20and%20Judgements) The significant judgments, estimates, and assumptions made in preparing these condensed consolidated interim financial statements are consistent with those applied in the consolidated financial statements for the year ended December 31, 2024 - In preparing these condensed consolidated interim financial statements, the significant judgments made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those applied to the consolidated financial statements for the year ended December 31, 2024[32](index=32&type=chunk) [Segment Information](index=13&type=section&id=Segment%20Information) The Group's reportable operating segments are interior decoration and special projects business and China property and facilities management business, with the former showing revenue and gross profit growth but expanded operating loss, and the latter experiencing revenue and gross profit decline, turning from profit to loss - The Group's reportable operating segments are the interior decoration and special projects business and the China property and facilities management business[33](index=33&type=chunk) Segment Results (Six Months Ended June 30, HK$ thousand) | Metric | Interior Decoration and Special Projects Business (2025) | China Property and Facilities Management Business (2025) | Subtotal (2025) | Administrative Expenses (2025) | Total (2025) | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 60,065 | 2,178 | 62,243 | - | 62,243 | | Gross Profit | 7,804 | 1,757 | 9,561 | - | 9,561 | | Gross Margin | 13.0% | 80.7% | 15.4% | - | 15.4% | | Operating Expenses | (35,788) | (2,045) | (37,833) | (3,221) | (41,054) | | Operating Loss | (27,984) | (288) | (28,272) | (3,221) | (31,493) | | Loss/(Profit) for the Period | (27,880) | (361) | (28,241) | 5,606 | (22,635) | | Metric | Interior Decoration and Special Projects Business (2024) | China Property and Facilities Management Business (2024) | Subtotal (2024) | Administrative Expenses (2024) | Total (2024) | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 43,887 | 3,660 | 47,547 | - | 47,547 | | Gross Profit | 5,381 | 2,508 | 7,889 | - | 7,889 | | Gross Margin | 12.3% | 68.5% | 16.6% | - | 16.6% | | Operating Expenses | (14,701) | (2,300) | (17,001) | (2,726) | (19,727) | | Operating (Loss)/Profit | (9,320) | 208 | (9,112) | (2,726) | (11,838) | | Loss/(Profit) for the Period | (9,024) | 288 | (8,736) | (1,753) | (10,489) | [Other Income and Gains/Losses](index=15&type=section&id=Other%20Income%20and%20Gains%2FLosses) Other income and gains/losses significantly increased to HK$8,887 thousand this period, primarily driven by bank interest income and fair value changes of financial assets at fair value through profit or loss Other Income and Gains/Losses (Six Months Ended June 30, HK$ thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Other income | 74 | 245 | | Bank interest income | 4,920 | 952 | | Dividends from financial assets at fair value through profit or loss | 465 | 358 | | Fair value changes of financial assets at fair value through profit or loss | 3,543 | (229) | | Exchange (loss)/gain | (115) | 54 | | **Total** | **8,887** | **1,380** | [Loss Before Tax](index=15&type=section&id=Loss%20Before%20Tax) The loss before tax for the period was HK$22,633 thousand, mainly impacted by staff costs, depreciation, and a substantial increase in professional and legal fees Loss Before Tax Has Been Arrived At After Charging/(Crediting) the Following (Six Months Ended June 30, HK$ thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Staff costs (including directors' emoluments) | 21,140 | 22,428 | | Depreciation of property, plant and equipment | 1,081 | 1,095 | | Professional and legal fees included in general and administrative expenses | 22,398 | 7,570 | [Taxation](index=15&type=section&id=Taxation) The Group's Hong Kong profits tax is calculated at a 16.5% rate, while overseas profits tax is based on prevailing rates in the operating countries, with the current period's tax of HK$(2) thousand primarily representing deferred tax - Hong Kong profits tax is provided at a rate of **16.5%** on the estimated assessable profit for the period, after deducting available tax losses carried forward[37](index=37&type=chunk) - The Group's overseas profits tax is calculated at the prevailing tax rates in the countries where it operates[37](index=37&type=chunk) Taxation Amount Charged to Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Six Months Ended June 30, HK$ thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Deferred tax | (3) | 2 | [Loss Per Share](index=16&type=section&id=Loss%20Per%20Share) Basic and diluted loss per share for the period increased to HK4.1 cents from HK2.0 cents in the prior year, primarily due to the expanded loss for the period - Basic loss per share is calculated by dividing the unaudited loss attributable to owners of the Group by the weighted average number of ordinary shares in issue during the period, adjusted for the bonus element of the rights issue on May 8, 2025[39](index=39&type=chunk) Loss Per Share Calculation (Six Months Ended June 30, HK$ thousand) | Item | 2025 | 2024 (Restated) | | :--- | :--- | :--- | | Loss attributable to owners of the Company for the period | (22,635) | (10,489) | | Weighted average number of ordinary shares in issue (thousands) | 557,020 | 532,770 | | Basic loss per share (HK cents) | (4.1) | (2.0) | | Diluted loss per share is the same as basic loss per share as the assumed conversion of convertible preference shares would have an anti-dilutive effect. | | | [Dividends](index=16&type=section&id=Dividends) The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2025 - At the Board meeting held on August 22, 2025, the Directors resolved not to declare an interim dividend for the six months ended June 30, 2025 (2024: nil)[41](index=41&type=chunk) [Trade and Other Receivables and Retention Monies](index=17&type=section&id=Trade%20and%20Other%20Receivables%20and%20Retention%20Monies) The Group's trade receivables generally have credit terms of 30 to 60 days; as of June 30, 2025, total trade and other receivables amounted to HK$49,273 thousand, retention monies to HK$42,373 thousand, with corresponding impairment provisions, and the maximum credit risk is the carrying amount of these balances - The credit period for the Group's trade receivables generally ranges from **30 to 60 days**[42](index=42&type=chunk) Ageing Analysis of Trade Receivables (HK$ thousand) | Ageing | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | 0 to 30 days | 14,073 | 14,000 | | 31 to 60 days | 115 | 306 | | 61 to 90 days | 66 | 299 | | Over 90 days | 24,183 | 27,058 | | **Total trade receivables** | **38,437** | **41,663** | | Other receivables | 10,836 | 10,828 | | **Total trade and other receivables** | **49,273** | **52,491** | | Impairment of trade and other receivables | (4,249) | (4,086) | | Retention monies | 42,373 | 40,786 | | Impairment of retention monies | (598) | (146) | | **Total trade and other receivables and retention monies** | **86,799** | **89,045** | - Retention monies are contract assets under HKFRS 15, expected to be realized within the normal operating cycle[43](index=43&type=chunk) - The maximum credit risk exposure at the reporting date is the carrying amount of the aforementioned trade and other receivables and retention monies[43](index=43&type=chunk) [Financial Assets at Fair Value Through Profit or Loss](index=18&type=section&id=Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) The Group's financial assets at fair value through profit or loss primarily consist of Hong Kong-listed equity securities, totaling HK$17,690 thousand as of June 30, 2025, a decrease from year-end 2024, classified as current assets and measured at Level 1 fair value using quoted closing prices in active markets Financial Assets at Fair Value Through Profit or Loss (HK$ thousand) | Item | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Hong Kong-listed equity securities | 17,690 | 26,017 | - Listed equity securities are classified as current assets as management expects to realize these financial assets within twelve months after the reporting period[44](index=44&type=chunk) - Financial assets are measured at fair value, categorized as Level 1 fair value hierarchy, with valuation based on quoted closing prices in active markets[46](index=46&type=chunk)[47](index=47&type=chunk) [Restricted Cash Deposits](index=19&type=section&id=Restricted%20Cash%20Deposits) As of June 30, 2025, the Group's restricted cash deposits increased to HK$67,307 thousand, designated to settle potential claims related to a court case with a custodian, for which interest income was recognized Restricted Cash Deposits (HK$ thousand) | Item | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Restricted Cash Deposits | 67,307 | 62,620 | - These cash deposits have been placed in designated interest-bearing bank accounts in Hong Kong as arranged by the custodian, and can only be used to settle potential claims related to the court case with the custodian in the future[48](index=48&type=chunk) - For the six months ended June 30, 2025, the Group recognized interest income of approximately **HK$4,687 thousand** from restricted cash deposits, which is included in other income and gains/losses[48](index=48&type=chunk) - As of June 30, 2025, the restricted cash deposits had not yet been released[49](index=49&type=chunk) [Trade and Other Payables and Accruals](index=19&type=section&id=Trade%20and%20Other%20Payables%20and%20Accruals) The Group's trade payables generally have credit terms of 30 to 60 days; as of June 30, 2025, total trade payables were HK$79,448 thousand, with an increase in balances over 90 days, and retention monies, other payables, and accruals totaled HK$63,606 thousand - The credit period for the Group's trade payables generally ranges from **30 to 60 days**[50](index=50&type=chunk) Ageing Analysis of Trade Payables (HK$ thousand) | Ageing | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | 0 to 30 days | 32,754 | 43,022 | | 31 to 60 days | 8,015 | 6,457 | | 61 to 90 days | 6,999 | 5,346 | | Over 90 days | 31,680 | 21,000 | | **Total trade payables** | **79,448** | **75,825** | | Retention monies payable, other payables and accruals | 63,606 | 66,619 | | **Total** | **143,054** | **142,444** | [Share Capital](index=20&type=section&id=Share%20Capital) The Group underwent a capital reorganization during the reporting period, including capital reduction and share subdivision, and announced a rights issue on May 8, 2025, issuing 212,425,000 new ordinary shares, which altered the issued share capital structure and adjusted the conversion price of convertible preference shares Overview of Share Capital Changes (HK$ thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Authorised Share Capital** | | | | Ordinary shares (par value HK$0.01) | 900,000 | 900,000 | | Convertible preference shares (par value HK$0.01) | 100,000 | 100,000 | | **Issued and fully paid share capital** | | | | Ordinary shares | 6,373 | 42,486 | | Convertible preference shares | 800 | 8,000 | | **Total Equity** | **7,173** | **50,486** | - The Company completed a capital reorganization on April 9, 2025, involving a capital reduction (par value per share reduced from **HK$0.1** to **HK$0.01**) and a share subdivision (each share with a par value of **HK$0.1** subdivided into **ten shares** with a par value of **HK$0.01**)[51](index=51&type=chunk)[53](index=53&type=chunk) - A rights issue was announced on May 8, 2025, on the basis of **one rights share** for every **two existing ordinary shares** held, at a subscription price of **HK$0.051**. The rights issue was completed on May 20, 2025, with a total of **212,425,000 new ordinary shares** issued[52](index=52&type=chunk) - Due to the rights issue, the conversion price of the convertible preference shares was adjusted from **HK$0.75 per ordinary share** to **HK$0.57 per ordinary share**[52](index=52&type=chunk) - The Group has continuously maintained sufficient public float as required by the Listing Rules of the Stock Exchange[52](index=52&type=chunk) [Other Information](index=22&type=section&id=Other%20Information) [Purchase, Sale or Redemption of the Company's Listed Securities](index=22&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 reporting period, and no treasury shares were held as of June 30, 2025 - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the reporting period[54](index=54&type=chunk) - As of June 30, 2025, the Company did not hold any treasury shares[54](index=54&type=chunk) [Events After the Reporting Period](index=22&type=section&id=Events%20After%20the%20Reporting%20Period) No events with significant financial impact on the Company occurred after the reporting period - No events with significant financial impact on the Company occurred after the reporting period[55](index=55&type=chunk) [Review of Interim Results](index=22&type=section&id=Review%20of%20Interim%20Results) The Group's unaudited interim results have been reviewed by the Company's Audit Committee and its external auditor, BDO Limited - The Group's unaudited interim results for the reporting period have been reviewed by the Company's Audit Committee and the Company's external auditor, BDO Limited, in accordance with Hong Kong Standard on Review Engagements 2410[56](index=56&type=chunk) [Compliance with the Model Code for Securities Transactions by Directors](index=22&type=section&id=Compliance%20with%20the%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors) All directors of the Company confirmed their compliance with the Model Code for Securities Transactions by Directors of Listed Issuers, as set out in Appendix C3 of the Listing Rules, throughout the reporting period - Following specific enquiries made to all Directors, all Directors confirmed that they have complied with the required standards set out in the Model Code throughout the reporting period[57](index=57&type=chunk) [Compliance with the Corporate Governance Code](index=22&type=section&id=Compliance%20with%20the%20Corporate%20Governance%20Code) During the reporting period, the Company complied with all code provisions of the Corporate Governance Code as set out in Appendix C1 of the Listing Rules - During the reporting period, the Company complied with all code provisions of the Corporate Governance Code as set out in Appendix C1 of the Listing Rules[58](index=58&type=chunk)

Core Viewpoint - The company expects a revenue increase of approximately 30% to 35% for the six-month period ending June 30, 2025, compared to the previous period, but anticipates a larger loss for equity holders [1][2]. Financial Performance - Revenue is projected to rise due to new contracts awarded last year and during the current period, which have provided a satisfactory level of workload [1]. - The expected loss for equity holders is estimated to be between HKD 21 million and HKD 26 million, compared to a loss of approximately HKD 10.5 million in the previous period [1]. Factors Contributing to Loss - The increase in loss is attributed to a challenging and uncertain business environment in Hong Kong, with significant credit risk, particularly in the construction industry, due to financial constraints faced by major developers [2]. - The company has made substantial provisions for bad debts and expected credit losses related to receivables and contract assets to address potential default risks [2]. - The period also incurred significant costs related to litigation and arbitration cases, with hearings for arbitration expected to conclude in the first half of 2025 and litigation hearings anticipated to finish by the end of August 2025 [2]. - Some offsetting factors include considerable interest income from restricted cash provided as performance guarantees by Fok Hing Insurance (Hong Kong) Limited and fair value gains on financial assets [2].

Group 1 - The company, Shengbo Holdings (02340.HK), announced that its board meeting will be held on August 22, 2025, to approve the unaudited interim results for the six months ending June 30, 2025 [1] - The board will also consider the distribution of an interim dividend, if any [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 之 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之任何損失承擔任何責任。 ISP HOLDINGS LIMITED 昇 柏 控 股 有 限 公 司 （於百慕達註冊成立之有限公司） （股份代號：02340） 盈利警告 本公告乃由昇柏控股有限公司（「本公司」，連同其附屬公司統稱「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條及香港法例第571章 證券及期貨條例第XIVA部項下之內幕消息條文（ 定義見上市規則 ）而刊發。 本公司董事會（「董事會」）謹此知會本公司股東（「股東」）及潛在投資者，根據對本 集團截至2025 年6月 30 日止六個月期間（「本 期間」）之未經審核綜合 管理賬目的初 步審閱及董事會目前可得資料，本集團預期於本期間錄得以下財務業績： 本期間收益增加乃由於去年及本期間獲授的新合約令工作量得到令人尚算滿意的 補充所致。 而本期間虧損增加主要是由於以下因素綜合影響所致 ...

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 之 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之任何損失承擔任何責任。 昇柏控股有限公司 主席 朱俊浩 香港，2025年8月11日 於本公告日期，董事會成員包括執行董事朱俊浩先生（ 主席 ）及梁月娥女士；非執 行 董 事 林 俊 傑 先 生 ； 以 及 獨 立 非 執 行 董 事 劉 文 德 先 生 、 李 翰 文 先 生 及 杜 振 偉 先 生。 ISP HOLDINGS LIMITED 昇 柏 控 股 有 限 公 司 （於百慕達註冊成立之有限公司） （股份代號：02340） 董事會會議日期 昇柏控股有限公司（「本公司」）董事會（「董事會」）謹此宣佈，董事會會議將於2025 年8月22日（ 星期四 ）舉行，藉以（ 其中包括 ）批准本公司及其附屬公司截至2025年6 月30日止六個月之未經審核中期業績公告，以及考慮派發中期股息（ 如有 ）。 承董事會命 ...