Group 1 - The company Baida International (02668.HK) announced a management change effective September 1, 2025 [1] - Xiang Shuguang has been reassigned from Executive Director to Non-Executive Director and will no longer serve as the company's authorized representative or a member of the Strategy Committee and Investment and Financing Committee [1] - Lu Zhengjun has been appointed as the new authorized representative and a member of both the Strategy Committee and Investment and Financing Committee [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。 1. 幸先生已由執行董事調任為非執行董事； 董事調任； 董事委員會組成變更； 及 授權代表及法律程序文件代理人變動 董事會謹此宣佈，自二零二五年九月一日起： 於本公告日期，幸先生於本公司股份、相關股份或債權證中並無視為擁有且並無擁有香港法 例第571章《證券及期貨條例》第XV部界定的任何權益。 除本文所披露外，董事會並不知悉任何有關幸先生的調任而須根據上市規則第13.51(2)(h) 至(v)條的任何規定予以披露的事項，或任何其他須提請股東垂注的事項。 2. 幸先生已不再擔任本公司之授權代表、策略委員會及投資及融資委員會各自之成員; 及 3. 呂先生已獲委任為授權代表、策略委員會及投資及融資委員會各自之成員。 Pak Tak International Limited（百德國際有限公司）*（「本公司」）董事（「董事」）會 （「董事會」）謹此宣佈，因幸曙光先生（「幸先生」）有意投入更多時間於其他業務， 故 ...

Group 1 - The company reported a revenue of HKD 445 million for the six months ending June 30, 2025, representing a year-on-year increase of 17.4% [1] - The company's loss attributable to equity shareholders was HKD 114 million, compared to a loss of HKD 36.8 million in the same period last year [1] - The basic loss per share was HKD 0.0202 [1]

Group 1 - The company reported revenue of HKD 445 million for the six months ending June 30, 2025, representing a year-on-year increase of 17.44% [1] - The loss attributable to equity shareholders was HKD 114 million, which is a significant increase of 209.14% compared to the previous year [1] - The basic loss per share was HKD 0.0202 [1]

Group 1 - The company reported revenue of HKD 445 million for the six months ending June 30, 2025, representing a year-on-year increase of 17.44% [1] - The loss attributable to equity shareholders was HKD 114 million, which expanded by 209.14% year-on-year [1] - The basic loss per share was HKD 0.0202 [1]

[Interim Results Announcement](index=1&type=section&id=%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%85%AC%E5%91%8A) [Unaudited Interim Results](index=1&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE) Paktak International Holdings Limited announced its unaudited consolidated interim results for the six months ended June 30, 2025, with comparative figures for the same period in 2024 - This announcement presents the unaudited consolidated interim results of Paktak International Holdings Limited and its subsidiaries for the six months ended June 30, 2025[2](index=2&type=chunk) [Condensed Consolidated Financial Statements](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) [Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the Group's revenue grew by 17.4% to HK$444,541 thousand, but operating and period losses significantly widened due to fair value losses on investment properties, impairment provisions, and increased finance costs Key Figures from Condensed Consolidated Statement of Profit or Loss (For the six months ended June 30) | Metric | 2025 (HK$'000) | 2024 (HK$'000) | Change (HK$'000) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Revenue | 444,541 | 378,542 | 65,999 | +17.4% | | Other income | 1,215 | 315 | 900 | +285.7% | | Other net loss | (619) | (5,130) | 4,511 | -87.9% | | Fair value loss on investment properties | (30,612) | (11,364) | (19,248) | +169.4% | | Impairment loss (provision) / reversal under expected credit loss model | (4,773) | 3,163 | (7,936) | -250.9% | | Direct costs and operating expenses | (421,628) | (361,464) | (60,164) | +16.6% | | Administrative expenses | (70,979) | (23,980) | (46,999) | +196.0% | | Operating loss | (82,855) | (19,918) | (62,937) | +316.0% | | Finance costs | (33,046) | (16,758) | (16,288) | +97.2% | | Loss before tax | (115,901) | (36,676) | (79,225) | +216.0% | | Income tax credit / (expense) | 392 | (132) | 524 | -397.0% | | Loss for the period | (115,509) | (36,808) | (78,701) | +213.8% | | Basic and diluted loss per share (HK cents) | (2.02) | (0.79) | (1.23) | +155.7% | [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) The Group's total comprehensive loss for the six months ended June 30, 2025, significantly widened to HK$88,441 thousand, primarily due to increased loss for the period, despite a positive impact from exchange differences on translating foreign operations Key Figures from Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Metric | 2025 (HK$'000) | 2024 (HK$'000) | Change (HK$'000) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Loss for the period | (115,509) | (36,808) | (78,701) | +213.8% | | Exchange differences arising from translation of financial statements of foreign operations | 29,381 | (10,911) | 40,292 | -369.3% | | Fair value loss / (gain) on financial assets at fair value through other comprehensive income | (2,313) | 71 | (2,384) | -3357.7% | | Total comprehensive loss for the period | (88,441) | (47,648) | (40,793) | +85.6% | | Total comprehensive loss attributable to equity holders of the Company | (87,371) | (47,648) | (39,723) | +83.4% | | Total comprehensive loss attributable to non-controlling interests | (1,070) | — | (1,070) | N/A | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, the Group's net current liabilities significantly increased to HK$561,157 thousand, and net assets decreased by 14.7% to HK$515,762 thousand, primarily due to a substantial rise in current borrowings and reduced reserves from the loss for the period Key Figures from Condensed Consolidated Statement of Financial Position (As of June 30) | Metric | 2025 (HK$'000) | 2024 (HK$'000) | Change (HK$'000) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Non-current assets | 1,204,479 | 1,183,466 | 21,013 | +1.8% | | Current assets | 620,604 | 632,011 | (11,407) | -1.8% | | Current liabilities | 1,181,761 | 848,058 | 333,703 | +39.4% | | Net current liabilities | (561,157) | (216,047) | (345,110) | +159.7% | | Total assets less current liabilities | 643,322 | 967,419 | (324,097) | -33.5% | | Non-current liabilities | 127,560 | 363,216 | (235,656) | -64.9% | | Net assets | 515,762 | 604,203 | (88,441) | -14.7% | | Share capital | 112,600 | 112,600 | 0 | 0.0% | | Reserves | 393,806 | 481,177 | (87,371) | -18.2% | | Total equity attributable to equity holders of the Company | 506,406 | 593,777 | (87,371) | -14.7% | | Non-controlling interests | 9,356 | 10,426 | (1,070) | -10.3% | | Total equity | 515,762 | 604,203 | (88,441) | -14.7% | [Notes to the Interim Financial Information](index=6&type=section&id=%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E9%99%84%E8%A8%BB) [1. Basis of Presentation](index=6&type=section&id=1.%20%E5%91%88%E5%88%97%E5%9F%BA%E6%BA%96) This interim financial information is prepared in accordance with the HKEX Listing Rules and HKAS 34, adopting the same accounting policies as the 2024 annual consolidated financial statements, but with significant going concern uncertainties - The interim financial information is prepared in accordance with the HKEX Listing Rules and Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the HKICPA[7](index=7&type=chunk) - The interim financial information is unaudited but has been reviewed by the Company's audit committee[8](index=8&type=chunk) [Going Concern Assumption](index=6&type=section&id=%E6%8C%81%E7%BA%8C%E7%B6%93%E7%87%9F%E5%81%87%E8%A8%AD) The Group faces severe going concern uncertainties, including a net loss of HK$115,509 thousand for the period, net current liabilities exceeding current assets by HK$561,157 thousand, and approximately HK$737,390 thousand in borrowings due within one year or repayable on demand, including a lawsuit from Huaxia Bank for HK$337,954 thousand. Management has developed mitigation plans, including bank negotiations, shareholder funding, accelerated collections, seeking additional financing, and improving new business profitability - The Group recorded a net loss of approximately **HK$115,509 thousand** for the interim period, with current liabilities exceeding current assets by approximately **HK$561,157 thousand**[9](index=9&type=chunk) - Total borrowings of approximately **HK$737,390 thousand** in principal, along with compound and default interest totaling **HK$59,254 thousand**, are due within one year or repayable on demand, exceeding cash and cash equivalents of approximately **HK$20,674 thousand**[9](index=9&type=chunk) - Huaxia Bank filed a lawsuit for an outstanding amount of approximately RMB318,794 thousand (approximately **HK$337,954 thousand**), with the court ruling for immediate repayment; the Group has appealed the loan interest amount[9](index=9&type=chunk)[10](index=10&type=chunk) - To mitigate liquidity pressure, the Group has developed several plans, including negotiating with Huaxia Bank, securing funding from major shareholders, accelerating collections, pledging commercial properties for additional bank financing, improving profitability of the iron ore mining business, and consulting with independent financial advisors on fundraising activities[11](index=11&type=chunk) [2. Changes in Accounting Policies](index=8&type=section&id=2.%20%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96%E4%B9%8B%E8%AE%8A%E5%8B%95) The Group applied HKAS 21 (Revised) "Lack of Exchangeability" during this accounting period, but this change had no significant impact on the Group's results or financial position - The Group has applied Hong Kong Accounting Standard 21 (Revised), Lack of Exchangeability[14](index=14&type=chunk) - This change in accounting policy did not have a significant impact on the preparation or presentation of the results and financial position for the current or prior periods[14](index=14&type=chunk) [3. Revenue and Segment Reporting](index=8&type=section&id=3.%20%E6%94%B6%E7%9B%8A%E5%8F%8A%E5%88%86%E9%83%A8%E5%A0%B1%E5%91%8A) The Group re-evaluated its internal reporting structure, reclassifying the "Others" segment to "Unallocated" items, and categorizing its operations into four reportable segments: supply chain business, property investment, hotel management and catering services, and iron ore mining and beneficiation. All revenue is derived from China - The Group re-evaluated its internal reporting structure, reclassifying the "Others" segment to "Unallocated" items[15](index=15&type=chunk) - The Group's reportable segments include supply chain business, property investment, hotel management and catering services, and iron ore mining and beneficiation[17](index=17&type=chunk) - During both interim periods, all the Group's revenue was derived from operations in the People's Republic of China[18](index=18&type=chunk) [Revenue by Major Product or Service Line](index=9&type=section&id=%E6%8C%89%E4%B8%BB%E8%A6%81%E7%94%A2%E5%93%81%E6%88%96%E6%9C%8D%E5%8B%99%E7%B7%9A%E5%8A%83%E5%88%86%E6%94%B6%E7%9B%8A) For the six months ended June 30, 2025, the Group's total revenue was HK$440,060 thousand, with the supply chain business remaining the largest contributor, and the iron ore mining and beneficiation business contributing new revenue of HK$110,580 thousand Revenue by Major Product or Service Line (For the six months ended June 30) | Product or Service Line | 2025 (HK$'000) | 2024 (HK$'000) | Change (HK$'000) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Sales of goods from supply chain business | 289,842 | 326,800 | (36,958) | -11.3% | | Sales of goods from iron ore mining and beneficiation | 110,580 | – | 110,580 | N/A | | Sales of catering products from hotel management and catering services | 36,189 | 42,963 | (6,774) | -15.8% | | Management fee income from hotel management services | 3,449 | 3,074 | 375 | +12.2% | | Handling fee income from supply chain financing arrangements | – | 219 | (219) | -100.0% | | **Total Revenue from Contracts with Customers** | **440,060** | **373,056** | **67,004** | **+18.0%** | | Interest income from supply chain financing arrangements | 562 | 968 | (406) | -41.9% | | Gross rental income from investment properties | 3,919 | 4,518 | (599) | -13.3% | | **Total Revenue from Other Sources** | **4,481** | **5,486** | **(1,005)** | **-18.3%** | | **Total Revenue** | **444,541** | **378,542** | **65,999** | **+17.4%** | [Revenue by Timing of Revenue Recognition](index=10&type=section&id=%E6%8C%89%E7%A2%BA%E8%AA%8D%E6%94%B6%E7%9B%8A%E6%99%82%E9%96%93%E5%8A%83%E5%88%86%E6%94%B6%E7%9B%8A) For the six months ended June 30, 2025, most of the Group's revenue (HK$436,611 thousand) was recognized at a point in time, primarily from the supply chain business and the newly included iron ore mining and beneficiation business Revenue by Timing of Revenue Recognition and Segment Results (For the six months ended June 30) | Segment | 2025 Revenue (HK$'000) | 2024 Revenue (HK$'000) | 2025 Segment Results (HK$'000) | 2024 Segment Results (HK$'000) | | :--- | :--- | :--- | :--- | :--- | | Supply chain business | 290,404 | 327,987 | (13,995) | 473 | | Property investment | 1,261 | 1,336 | (21,201) | (3,191) | | Hotel management and catering services | 42,296 | 49,219 | (4,190) | (10,491) | | Iron ore mining and beneficiation | 110,580 | – | (37,660) | – | | **Total** | **444,541** | **378,542** | **(77,046)** | **(13,209)** | - In the first half of 2025, the iron ore mining and beneficiation segment contributed **HK$110,580 thousand** in revenue but recorded a loss of **HK$37,660 thousand**[20](index=20&type=chunk) - The supply chain business shifted from a profit of **HK$473 thousand** in the same period of 2024 to a loss of **HK$13,995 thousand** in the first half of 2025[20](index=20&type=chunk)[21](index=21&type=chunk) [Information on Assets and Liabilities](index=12&type=section&id=%E6%9C%89%E9%97%9C%E8%B3%87%E7%94%A2%E5%8F%8A%E8%B2%A0%E5%82%B5%E4%B9%8B%E8%B3%87%E6%96%99) As of June 30, 2025, the Group's total assets were HK$1,825,083 thousand, and total liabilities were HK$1,309,321 thousand. The iron ore mining and beneficiation segment accounted for the largest proportion of assets and liabilities, reflecting its business scale Segment Assets and Liabilities (As of June 30) | Segment | 2025 Segment Assets (HK$'000) | 2024 Segment Assets (HK$'000) | 2025 Segment Liabilities (HK$'000) | 2024 Segment Liabilities (HK$'000) | | :--- | :--- | :--- | :--- | :--- | | Supply chain business | 460,201 | 489,857 | 453,593 | 430,122 | | Property investment | 146,494 | 162,487 | 17,552 | 19,975 | | Hotel management and catering services | 168,076 | 175,523 | 50,217 | 49,154 | | Iron ore mining and beneficiation | 1,004,255 | 968,286 | 677,483 | 606,878 | | **Total Segments** | **1,779,026** | **1,796,153** | **1,198,845** | **1,106,129** | | Deferred tax assets/liabilities and corporate unallocated | 46,057 | 19,324 | 110,476 | 105,145 | | **Total** | **1,825,083** | **1,815,477** | **1,309,321** | **1,211,274** | - The iron ore mining and beneficiation segment's assets reached **HK$1,004,255 thousand** as of June 30, 2025, accounting for **56.4%** of total segment assets[22](index=22&type=chunk) [4. Other Income and Other Net Loss / (Gain)](index=13&type=section&id=4.%20%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E6%B7%A8%EF%BC%88%E虧%E6%90%8D%EF%BC%89%E2%88%95%E6%94%B6%E7%9B%8A) For the six months ended June 30, 2025, the Group's other income significantly increased to HK$1,215 thousand, primarily from early lease termination gains and reversal of payables. Other net losses substantially decreased due to reduced losses from write-offs/disposals of property, plant, and equipment Other Income and Other Net Loss / (Gain) (For the six months ended June 30) | Item | 2025 (HK$'000) | 2024 (HK$'000) | Change (HK$'000) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Interest income | 2 | 154 | (152) | -98.7% | | Gain on early lease termination | 180 | — | 180 | N/A | | Reversal of payables | 691 | — | 691 | N/A | | Miscellaneous income | 342 | 161 | 181 | +112.4% | | **Total Other Income** | **1,215** | **315** | **900** | **+285.7%** | | Fair value loss on financial assets at fair value through profit or loss | — | (96) | 96 | -100.0% | | Loss on write-off / disposal of property, plant and equipment | (619) | (5,034) | 4,415 | -87.7% | | **Total Other Net Loss** | **(619)** | **(5,130)** | **4,511** | **-87.9%** | [5. Operating Loss](index=13&type=section&id=5.%20%E7%B6%93%E7%87%9F%E虧%E6%90%8D) For the six months ended June 30, 2025, the depreciation and amortization expenses deducted from the Group's operating loss significantly increased, with property, plant, and equipment depreciation growing by nearly 5.5 times and intangible asset amortization by almost 28 times Items Deducted from Operating Loss (For the six months ended June 30) | Item | 2025 (HK$'000) | 2024 (HK$'000) | Change (HK$'000) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 33,931 | 5,233 | 28,698 | +548.4% | | Depreciation of right-of-use assets | 2,943 | 2,130 | 813 | +38.2% | | Amortization of intangible assets | 4,409 | 154 | 4,255 | +2762.9% | [6. Finance Costs](index=13&type=section&id=6.%20%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) The Group's finance costs primarily refer to interest on bank loans, other loans, and lease liabilities - Finance costs refer to interest on bank loans, other loans, and lease liabilities[24](index=24&type=chunk) [7. Income Tax Expense](index=14&type=section&id=7.%20%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) For the six months ended June 30, 2025, the Group recorded an income tax credit of HK$392 thousand, compared to an expense of HK$132 thousand in the prior period, mainly due to changes in deferred tax in China. No provision for profits tax was made for Hong Kong operations due to the absence of taxable profits Income Tax Expense (For the six months ended June 30) | Item | 2025 (HK$'000) | 2024 (HK$'000) | Change (HK$'000) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Current tax - PRC enterprise income tax | — | (2) | 2 | -100.0% | | Deferred tax - PRC | (392) | 134 | (526) | -392.5% | | **Income tax (credit) / expense** | **(392)** | **132** | **(524)** | **-397.0%** | - Hong Kong profits tax is calculated at **16.5%**, but no provision was made as the Company and its subsidiaries had no taxable profits or consistently recorded tax losses in Hong Kong[26](index=26&type=chunk) - Subsidiaries located in the PRC are subject to enterprise income tax at **25%**[27](index=27&type=chunk) [8. Loss Per Share](index=15&type=section&id=8.%20%E6%AF%8F%E8%82%A1%E虧%E6%90%8D) For the six months ended June 30, 2025, the loss attributable to equity holders of the Company was HK$113,790 thousand, resulting in a basic and diluted loss per share of 2.02 HK cents, a significant increase from the prior period Loss Per Share (For the six months ended June 30) | Metric | 2025 (HK$'000) | 2024 (HK$'000) | Change (HK$'000) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Loss attributable to equity holders of the Company | (113,790) | (36,808) | (76,982) | +209.1% | | Basic and diluted loss per share (HK cents) | (2.02) | (0.79) | (1.23) | +155.7% | - Basic loss per share is the same as diluted loss per share as the Company has no potentially dilutive shares[30](index=30&type=chunk) [9. Dividends](index=15&type=section&id=9.%20%E8%82%A1%E6%81%AF) The Directors do not recommend the payment of any interim dividend for the six months ended June 30, 2025 - The Directors do not recommend the payment of any interim dividend for the six months ended June 30, 2025 (2024: nil)[31](index=31&type=chunk) [10. Property, Plant and Equipment](index=15&type=section&id=10.%20%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%A8%AD%E5%82%99) For the six months ended June 30, 2025, the Group's cost of purchases of property, plant and equipment significantly increased to HK$28,256 thousand, and a loss on write-off/disposal of HK$619 thousand was recorded Changes in Property, Plant and Equipment (For the six months ended June 30) | Item | 2025 (HK$'000) | 2024 (HK$'000) | Change (HK$'000) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Cost of purchases | 28,256 | 2,650 | 25,606 | +966.3% | | Net book value of write-offs / disposals | 2,756 | 5,000 | (2,244) | -44.9% | | Loss on write-off / disposal | 619 | 5,000 | (4,381) | -87.6% | [11. Right-of-Use Assets](index=15&type=section&id=11.%20%E4%BD%BF%E7%94%A8%E6%AC%8A%E8%B3%87%E7%94%A2) For the six months ended June 30, 2025, the Group added right-of-use assets of approximately HK$2,672 thousand, primarily related to Hong Kong office leases, including leased land, office, and restaurant leases Additions to Right-of-Use Assets (For the six months ended June 30) | Item | 2025 (HK$'000) | 2024 (HK$'000) | Change (HK$'000) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Additions to right-of-use assets | 2,672 | 3,820 | (1,148) | -30.1% | - Additions to right-of-use assets primarily relate to Hong Kong office leases, which include leased land, office, and restaurant leases[33](index=33&type=chunk) [12. Investment Properties](index=16&type=section&id=12.%20%E6%8A%95%E8%B3%87%E7%89%A9%E6%A5%AD) The Group's investment properties are located in China, measured at fair value, and their valuations were updated as of June 30, 2025. Some investment properties are pledged as collateral for bank loans - All of the Group's property interests held under operating leases to earn rental income or for capital appreciation are measured at fair value and classified and accounted for as investment properties[36](index=36&type=chunk) - Investment properties are located in China and their valuations were updated by independent valuers as of June 30, 2025[37](index=37&type=chunk) - Certain investment properties are pledged as collateral for bank loans granted to the Group[37](index=37&type=chunk) [13. Intangible Assets](index=16&type=section&id=13.%20%E7%84%A1%E5%BD%A2%E8%B3%87%E7%94%A2) For the six months ended June 30, 2025, the Group made no additions to intangible assets, and amortization expenses for the period were included in administrative expenses. All mining rights are pledged to banks for loans - No additions to intangible assets were made for the six months ended June 30, 2025[38](index=38&type=chunk) - Amortization expenses for the period are included in "Administrative expenses" in the consolidated statement of profit or loss[38](index=38&type=chunk) - All mining rights are pledged to banks for loans granted to the Group[38](index=38&type=chunk) [14. Trade and Other Receivables](index=16&type=section&id=14.%20%E6%87%89%E6%94%B6%E8%B2%BF%E6%98%93%E6%AC%BE%E9%A0%85%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of June 30, 2025, total trade and other receivables amounted to HK$558,798 thousand, a slight decrease from December 31, 2024. Trade receivables overdue for more than twelve months significantly increased to HK$350,398 thousand, indicating higher collection risk Trade and Other Receivables (As of June 30) | Item | 2025 (HK$'000) | 2024 (HK$'000) | Change (HK$'000) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Trade receivables, net of provision for expected credit losses | 397,280 | 415,631 | (18,351) | -4.4% | | Other receivables, net of provision for expected credit losses | 85,983 | 97,970 | (11,987) | -12.2% | | Deposits and prepayments | 75,535 | 54,761 | 20,774 | +37.9% | | **Total** | **558,798** | **568,362** | **(9,564)** | **-1.7%** | Ageing Analysis of Trade Receivables (As of June 30) | Ageing | 2025 (HK$'000) | 2024 (HK$'000) | Change (HK$'000) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Within 1 month | 4,099 | 2,429 | 1,670 | +68.7% | | 1 to 3 months | 1,633 | 3,025 | (1,392) | -46.0% | | 3 to 12 months | 41,150 | 341,717 | (300,567) | -88.0% | | Over 12 months | 350,398 | 68,460 | 281,940 | +411.9% | | **Total** | **397,280** | **415,631** | **(18,351)** | **-4.4%** | - Trade receivables overdue for more than twelve months significantly increased from **HK$68,460 thousand** as of December 31, 2024, to **HK$350,398 thousand** as of June 30, 2025[40](index=40&type=chunk) [15. Finance Lease Receivables](index=17&type=section&id=15.%20%E6%87%89%E6%94%B6%E8%9E%8D%E8%B3%87%E7%A7%9F%E8%B3%83%E6%AC%BE%E9%A0%85) As of June 30, 2025, the Group's finance lease receivables were fully impaired, with a carrying amount of zero. All balances were fully impaired due to adverse events Finance Lease Receivables (As of June 30) | Item | 2025 (HK$'000) | 2024 (HK$'000) | Change (HK$'000) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Finance lease receivables | 29,798 | 29,871 | (73) | -0.2% | | Less: Provision for expected credit losses | (29,798) | (29,871) | 73 | -0.2% | | **Net** | **—** | **—** | **—** | **0.0%** | - All balances of finance lease receivables were fully impaired due to adverse events[42](index=42&type=chunk) [16. Impairment Assessment of Financial Assets under ECL Model](index=18&type=section&id=16.%20%E9%A0%90%E6%9C%9F%E4%BF%A1%E8%B2%B8%E虧%E6%90%8D%E6%A8%A1%E5%BC%8F%E4%B8%8B%E9%87%91%E8%9E%8D%E8%B3%87%E7%94%A2%E6%B8%9B%E5%80%BC%E8%A9%95%E4%BC%B0) For the six months ended June 30, 2025, the Group recognized an impairment loss of HK$4,773 thousand, compared to a reversal of HK$3,163 thousand in the prior period, primarily due to increased impairment losses on trade receivables Impairment Loss on Financial Assets (For the six months ended June 30) | Item | 2025 (HK$'000) | 2024 (HK$'000) | Change (HK$'000) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Trade receivables | 4,924 | (3,196) | 8,120 | -254.1% | | Other receivables | 932 | 33 | 899 | +2724.2% | | Finance lease receivables | (1,083) | — | (1,083) | N/A | | **Total** | **4,773** | **(3,163)** | **7,936** | -250.9% | [17. Trade Payables](index=19&type=section&id=17.%20%E6%87%89%E4%BB%98%E8%B2%BF%E6%98%93%E6%AC%BE%E9%A0%85) As of June 30, 2025, the Group's total trade payables increased by 23.9% to HK$240,919 thousand from December 31, 2024, primarily due to an increase in trade payables aged three to twelve months and over twelve months Ageing Analysis of Trade Payables (As of June 30) | Ageing | 2025 (HK$'000) | 2024 (HK$'000) | Change (HK$'000) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Within 1 month | 45,563 | 38,023 | 7,540 | +19.8% | | 1 to 3 months | 9,408 | 31,766 | (22,358) | -70.4% | | 3 to 12 months | 95,423 | 58,514 | 36,909 | +63.1% | | Over 12 months | 90,525 | 66,147 | 24,378 | +36.9% | | **Total** | **240,919** | **194,450** | **46,469** | **+23.9%** | [18. Borrowings](index=19&type=section&id=18.%20%E5%80%9F%E8%B2%B8) As of June 30, 2025, the Group's total borrowings amounted to HK$747,034 thousand, with HK$737,390 thousand due within one year or repayable on demand, indicating significant liquidity pressure. Several bank loans are in default or repayable on demand, some secured by investment properties, mining rights, or corporate guarantees Total Borrowings and Maturity Analysis (As of June 30) | Item | 2025 (HK$'000) | 2024 (HK$'000) | Change (HK$'000) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Bank loans, secured | 737,034 | 719,763 | 17,271 | +2.4% | | Other loans, secured | — | 23,924 | (23,924) | -100.0% | | Other loans, unsecured | 10,000 | 1,000 | 9,000 | +900.0% | | **Total Borrowings** | **747,034** | **744,687** | **2,347** | **+0.3%** | | Due within one year or repayable on demand | 737,390 | 490,321 | 247,069 | +50.4% | | Amounts due after one year | 9,644 | 254,366 | (244,722) | -96.2% | - Bank loan two (principal amount of approximately **HK$306,007 thousand**) is in default and repayable on demand; the Group is actively negotiating with the lender for renewal and extension of repayment[46](index=46&type=chunk) - Bank loan five (principal amount of approximately **HK$267,619 thousand**) is secured by the Group's mining rights, repayable in installments until 2026[48](index=48&type=chunk) - Other loan one (principal amount of approximately **HK$23,924 thousand**) was fully settled during the interim period through the disposal of collateral[51](index=51&type=chunk) [19. Significant Related Party Transactions and Balances](index=21&type=section&id=19.%20%E9%87%8D%E5%A4%A7%E9%97%9C%E8%81%AF%E4%BA%BA%E5%A3%AB%E4%BA%A4%E6%98%93%E5%8F%8A%E7%B5%90%E9%A4%98) For the six months ended June 30, 2025, the Group's key management personnel compensation was HK$2,286 thousand, a slight increase from the prior period. Other than financial arrangements disclosed in Note 18, the Group had no other significant related party transactions or balances Key Management Personnel Compensation (For the six months ended June 30) | Item | 2025 (HK$'000) | 2024 (HK$'000) | Change (HK$'000) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Salaries, allowances and other benefits | 2,208 | 2,108 | 100 | +4.7% | | Contributions to defined contribution retirement plans | 78 | 83 | (5) | -6.0% | | **Total** | **2,286** | **2,191** | **95** | **+4.3%** | - Other than the financial arrangements entered into with certain related parties as disclosed in Note 18, the Group did not enter into any other significant related party transactions during both interim periods[52](index=52&type=chunk) - As of June 30, 2025, and December 31, 2024, the Group had no significant balances with related parties[53](index=53&type=chunk) [20. Litigation and Claims](index=22&type=section&id=20.%20%E8%A8%B4%E8%A8%9F%E5%8F%8A%E7%B4%A2%E5%84%9F) The Group's subsidiary, Shenzhen Jinsheng Supply Chain Co., Ltd., faces legal action for failing to repay bank borrowings of approximately RMB318,794 thousand (approximately HK$337,954 thousand) from Huaxia Bank, with the court ruling for immediate repayment. The Group has appealed the loan interest amount, and the related bank borrowings are classified as current liabilities - The Group's subsidiary, Shenzhen Jinsheng Supply Chain Co., Ltd., failed to repay interest-bearing bank borrowings of approximately RMB294,300 thousand (approximately **HK$322,612 thousand**) from Huaxia Bank[54](index=54&type=chunk) - Huaxia Bank filed a legal claim, and the court ruled that the Group must immediately repay principal, interest, and compound interest totaling approximately RMB318,794 thousand (approximately **HK$337,954 thousand**), and bear legal costs[54](index=54&type=chunk)[56](index=56&type=chunk) - The Group has appealed the amount of loan interest payable under the relevant loan agreement of the civil judgment, and the appeal has been accepted by the Guangdong Provincial High People's Court[54](index=54&type=chunk) - The related bank borrowings are classified as current liabilities, and the Group is still negotiating with Huaxia Bank to extend the repayment date[55](index=55&type=chunk) [Business Review](index=23&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) [Supply Chain Business](index=23&type=section&id=%E4%BE%9B%E6%87%89%E9%8F%88%E6%A5%AD%E5%8B%99) For the six months ended June 30, 2025, the Group's supply chain business faced significant challenges, with revenue slowing or decreasing. The newly acquired iron ore mining and beneficiation business recorded losses due to unreleased capacity, unfavorable iron ore price movements, and high fixed costs. The Group is strengthening credit control, releasing capacity, and seeking new clients to diversify revenue streams - The performance of the supply chain business faced significant challenges, with revenue slowing or even decreasing compared to the same period last year[58](index=58&type=chunk) - The iron ore mining and beneficiation business faced downward pressure, with losses primarily due to unreleased capacity, unfavorable iron ore price movements, and high fixed costs[58](index=58&type=chunk) - The Group is strengthening credit control, releasing capacity in its iron ore mining and beneficiation business, and seeking new potential clients to diversify revenue streams[58](index=58&type=chunk) [Hotel Management and Catering Services](index=23&type=section&id=%E9%85%92%E5%BA%97%E7%AE%A1%E7%90%86%E5%8F%8A%E9%A4%90%E9%A3%B2%E6%9C%8D%E5%8B%99) For the six months ended June 30, 2025, revenue from the hotel management and catering services segment decreased by approximately 14%, primarily due to a slowdown in consumption recovery as the market normalized and competition intensified. The segment continued to record losses, but the Group maintained stable performance by optimizing operational management and enhancing brand promotion, planning to improve product services and launch special events to attract customers - Revenue from the hotel management and catering services segment decreased by approximately **14%** compared to the same period in 2024, mainly due to continued market normalization and intensified competition[59](index=59&type=chunk) - The segment continued to record losses, primarily impacted by fair value losses on investment properties[59](index=59&type=chunk) - The Group has implemented cautious and flexible strategies aimed at enhancing cost-effectiveness and optimizing operational management, with plans to improve product and service quality, launch new menus, and organize special events[60](index=60&type=chunk) [Property Investment](index=24&type=section&id=%E7%89%A9%E6%A5%AD%E6%8A%95%E8%B3%87) For the six months ended June 30, 2025, the Group's investment properties in Yunfu, China, generated rental income, but continued to face revaluation losses due to a weak real estate market. The Group will continue to lease out properties and consider timely spin-off sales to improve working capital - The Group's investment properties located in Yunfu, China, generated rental income[61](index=61&type=chunk) - Due to the overall weak performance of the real estate market, the Group continues to face challenges from revaluation losses on investment properties[61](index=61&type=chunk) - The Group will continue to lease out these investment properties to generate rental income and will consider spin-off sales at appropriate times to improve working capital[61](index=61&type=chunk) [Financial Review](index=24&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) [Revenue](index=24&type=section&id=%E6%94%B6%E7%9B%8A) For the six months ended June 30, 2025, the Group's total revenue increased by 17.4% year-on-year to HK$444,500 thousand, primarily driven by HK$110,600 thousand from the new mining business, partially offsetting reduced revenue from supply chain and hotel management and catering services Revenue Overview (For the six months ended June 30) | Item | 2025 (HK$'000) | 2024 (HK$'000) | Change (HK$'000) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | 444,500 | 378,500 | 66,000 | +17.4% | | Mining business revenue | 110,600 | – | 110,600 | N/A | | Supply chain business revenue | 290,400 | 328,000 | (37,600) | -11.5% | | Hotel management and catering services revenue | 42,300 | 49,200 | (6,900) | -14.0% | | Total property investment revenue | 1,300 | 1,300 | 0 | 0.0% | [Expenses](index=25&type=section&id=%E9%96%8B%E6%94%AF) For the six months ended June 30, 2025, the Group's direct costs and operating expenses, administrative expenses, and finance costs all significantly increased, primarily due to the operations of the new iron ore mining and beneficiation business. Impairment losses under the expected credit loss model also shifted from reversal to provision, reflecting delayed payments from supply chain business customers Expenses Overview (For the six months ended June 30) | Item | 2025 (HK$'000) | 2024 (HK$'000) | Change (HK$'000) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Direct costs and operating expenses | 421,600 | 361,500 | 60,100 | +16.6% | | Administrative expenses | 71,000 | 24,000 | 47,000 | +195.8% | | Impairment loss (provision) / reversal under expected credit loss model | 4,700 | (3,200) | 7,900 | -246.9% | | Finance costs | 33,000 | 16,800 | 16,200 | +96.4% | - The increase in direct costs and operating expenses, as well as administrative expenses, was primarily due to the new iron ore mining and beneficiation business[65](index=65&type=chunk) - The increase in impairment losses under the expected credit loss model was mainly due to delayed payments of outstanding invoice amounts by certain customers in the supply chain business[65](index=65&type=chunk) [Loss for the Period](index=25&type=section&id=%E6%9C%9F%E5%85%A7%E虧%E6%90%8D) For the six months ended June 30, 2025, the Group's net loss expanded to HK$115,500 thousand, primarily due to a substantial increase in overall costs from the mining business acquisition and increased fair value losses on investment properties Loss for the Period (For the six months ended June 30) | Metric | 2025 (HK$'000) | 2024 (HK$'000) | Change (HK$'000) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Net loss | 115,500 | 36,800 | 78,700 | +213.9% | - The increased loss was primarily due to the completion of the mining business acquisition, leading to a substantial increase in overall costs (including direct costs, operating and administrative expenses, and finance costs), and increased fair value losses on investment properties[66](index=66&type=chunk) [Investment Properties](index=25&type=section&id=%E6%8A%95%E8%B3%87%E7%89%A9%E6%A5%AD) The Group's investment properties include leased retail shops in Yunfu, China, and leased commercial buildings in Beihai, Guangxi Province. Due to challenging business conditions in China, the Group recognized a fair value loss on investment properties of HK$30,600 thousand, a significant increase from the prior period Fair Value Loss on Investment Properties (For the six months ended June 30) | Item | 2025 (HK$'000) | 2024 (HK$'000) | Change (HK$'000) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Fair value loss on investment properties | 30,600 | 11,400 | 19,200 | +168.4% | - Investment properties include leased retail shops in Yunfu, China, valued at **HK$141,400 thousand**, and leased commercial buildings in Beihai, Guangxi Province, China, valued at **HK$92,100 thousand**[67](index=67&type=chunk) [Intangible Assets](index=26&type=section&id=%E7%84%A1%E5%BD%A2%E8%B3%87%E7%94%A2) As of June 30, 2025, the Group's intangible assets increased to HK$209,000 thousand, primarily comprising mining rights of HK$208,600 thousand, valid until 2049 Intangible Assets (As of June 30) | Item | 2025 (HK$'000) | 2024 (HK$'000) | Change (HK$'000) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Total intangible assets | 209,000 | 206,400 | 2,600 | +1.3% | | Mining rights | 208,600 | 205,800 | 2,800 | +1.4% | - Mining rights represent underground mining permits, valid from **2024 to 2049**[68](index=68&type=chunk) [Financial Assets at Fair Value Through Other Comprehensive Income](index=26&type=section&id=%E6%8C%89%E5%85%AC%E5%B9%B3%E5%83%B9%E5%80%BC%E8%A8%88%E5%85%A5%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E7%9A%84%E9%87%91%E8%9E%8D%E8%B3%87%E7%94%A2) As of June 30, 2025, the Group's financial assets at fair value through other comprehensive income significantly increased to approximately HK$30,300 thousand, primarily due to investments in unlisted equity securities during the period Financial Assets at Fair Value Through Other Comprehensive Income (As of June 30) | Item | 2025 (HK$'000) | 2024 (HK$'000) | Change (HK$'000) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Financial assets | 30,300 | 200 | 30,100 | +15050.0% | - This change was primarily due to investments in unlisted equity securities during the period, which are held for long-term investment purposes[69](index=69&type=chunk) [Trade and Other Receivables](index=26&type=section&id=%E6%87%89%E6%94%B6%E8%B2%BF%E6%98%93%E6%AC%BE%E9%A0%85%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of June 30, 2025, total trade and other receivables amounted to HK$558,800 thousand, primarily from the supply chain business. Trade receivables overdue within 12 months significantly increased, and management is actively monitoring to mitigate credit risk Trade and Other Receivables (As of June 30) | Item | 2025 (HK$'000) | 2024 (HK$'000) | Change (HK$'000) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Total trade and other receivables | 558,800 | 568,400 | (9,600) | -1.7% | | Trade receivables overdue within 12 months | 300,200 | 175,600 | 124,600 | +71.0% | | Trade receivables overdue over 12 months | 57,400 | 66,100 | (8,700) | -13.2% | - Trade and other receivables primarily arise from the supply chain business and supply chain financing arrangements[70](index=70&type=chunk) - Management is committed to strict control over outstanding receivables, regularly reviewing overdue balances and assessing recoverability on a case-by-case basis[70](index=70&type=chunk) [Restricted Cash](index=26&type=section&id=%E5%8F%97%E9%99%90%E5%88%B6%E7%8F%BE%E9%87%91) As of June 30, 2025, the Group held restricted cash of HK$7,200 thousand, primarily related to reclamation obligation deposits for its mining operations in China Restricted Cash (As of June 30) | Item | 2025 (HK$'000) | 2024 (HK$'000) | Change (HK$'000) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Restricted cash | 7,200 | 7,000 | 200 | +2.9% | - Restricted cash primarily relates to reclamation obligation deposits for the mining business in China[71](index=71&type=chunk) [Trade Payables](index=26&type=section&id=%E6%87%89%E4%BB%98%E8%B2%BF%E6%98%93%E6%AC%BE%E9%A0%85) As of June 30, 2025, the Group's trade payables significantly increased by HK$46,400 thousand to HK$240,900 thousand, primarily due to increased mining business activities Trade Payables (As of June 30) | Item | 2025 (HK$'000) | 2024 (HK$'000) | Change (HK$'000) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Trade payables | 240,900 | 194,500 | 46,400 | +23.9% | - The increase in trade payables was due to increased mining business activities for the six months ended June 30, 2025[72](index=72&type=chunk) [Liquidity and Financial Resources](index=27&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) As of June 30, 2025, the Group's cash and cash equivalents were HK$20,700 thousand, while interest-bearing borrowings amounted to HK$760,700 thousand. The gearing ratio rose to 150.2%, and the current ratio decreased to 0.53, reflecting a significant increase in liquidity pressure, mainly due to a substantial rise in borrowings due within one year Liquidity and Financial Resources Overview (As of June 30) | Metric | 2025 (HK$'000) | 2024 (HK$'000) | Change (HK$'000) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Cash and cash equivalents | 20,700 | 21,700 | (1,000) | -4.6% | | Interest-bearing borrowings (including borrowings and lease liabilities) | 760,700 | 759,400 | 1,300 | +0.2% | | Gearing ratio | 150.2% | 127.9% | +22.3% | +17.4% | | Current ratio | 0.53 | 0.75 | (0.22) | -29.3% | | Borrowings due within one year or repayable on demand | 737,400 | 490,300 | 247,100 | +50.4% | - The increase in the gearing ratio was primarily due to a significant loss recorded during the period, leading to a reduction in the amount of equity attributable to equity holders of the Company[73](index=73&type=chunk) - The decrease in the current ratio was mainly due to a substantial increase in borrowings due within one year or repayable on demand[73](index=73&type=chunk) [Foreign Exchange and Interest Rate Risk Management](index=28&type=section&id=%E5%A4%96%E5%8C%AF%E5%8F%8A%E5%88%A9%E7%8E%87%E9%A2%A8%E9%9A%AA%E7%AE%A1%E7%90%86) The Group adopts strict policies to manage foreign exchange and interest rate risks, with primary foreign currency exchange risk arising from HKD and RMB exchange rate fluctuations. Borrowings are issued at floating and fixed rates, creating cash flow and fair value interest rate risks, which management will closely monitor and consider hedging - The Group adopts strict and prudent policies to manage foreign exchange risk and interest rate risk[74](index=74&type=chunk) - The primary foreign currency exchange risk arises from fluctuations in the exchange rates between Hong Kong Dollars (pegged to the US Dollar) and Renminbi[74](index=74&type=chunk) - Borrowings are issued at floating and fixed interest rates, giving rise to cash flow interest rate risk and fair value interest rate risk, which management will closely monitor and consider hedging when necessary[74](index=74&type=chunk) [Pledge of Group Assets](index=28&type=section&id=%E9%9B%86%E5%9C%98%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, approximately HK$162,200 thousand of the Group's investment properties and approximately HK$208,600 thousand of mining rights were pledged to banks for bank loans Pledge of Group Assets (As of June 30) | Item | 2025 (HK$'000) | 2024 (HK$'000) | Change (HK$'000) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Total carrying amount of investment properties | 162,200 | 178,500 | (16,300) | -9.1% | | Carrying amount of mining rights | 208,600 | 205,800 | 2,800 | +1.4% | - The aforementioned assets are pledged to banks for loans granted to the Group[75](index=75&type=chunk) [Financial Guarantees Provided](index=28&type=section&id=%E5%B7%B2%E6%8F%90%E4%BE%9B%E4%B9%8B%E8%B2%A1%E5%8B%99%E6%93%94%E4%BF%9D) As of June 30, 2025, the Company provided corporate guarantees for financing granted to certain subsidiaries, with a guaranteed amount of HK$306,000 thousand Financial Guarantees Provided (As of June 30) | Item | 2025 (HK$'000) | 2024 (HK$'000) | Change (HK$'000) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Amount of corporate guarantees | 306,000 | 296,000 | 10,000 | +3.4% | - The Company has provided corporate guarantees for financing granted to certain subsidiaries of the Group, with the beneficiaries being certain banks[76](index=76&type=chunk) [Capital Expenditure and Commitments](index=28&type=section&id=%E8%B3%87%E6%9C%AC%E6%94%AF%E5%87%BA%E5%8F%8A%E6%89%BF%E6%93%94) For the six months ended June 30, 2025, the Group invested approximately HK$28,200 thousand in property, plant and equipment, primarily for leasehold improvements, furniture, fixtures and equipment, and motor vehicles. There were no capital commitments at the end of the reporting period Capital Expenditure (For the six months ended June 30) | Item | 2025 (HK$'000) | 2024 (HK$'000) | Change (HK$'000) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Investment in property, plant and equipment | 28,200 | 2,700 | 25,500 | +944.4% | - Investments were made in leasehold improvements, furniture, fixtures and equipment, and motor vehicles[77](index=77&type=chunk) - As of June 30, 2025, and December 31, 2024, the Group had no capital commitments[78](index=78&type=chunk) [Significant Investments Held](index=28&type=section&id=%E6%8C%81%E6%9C%89%E4%B9%8B%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87) For the six months ended June 30, 2025, the Group held no significant investments - For the six months ended June 30, 2025, the Group held no significant investments[79](index=79&type=chunk) [Significant Acquisitions and Disposals of Subsidiaries and Associates](index=29&type=section&id=%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8%E5%8F%8A%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E4%BA%8B%E9%A0%85) For the six months ended June 30, 2025, the Group did not undertake any significant acquisitions or disposals of subsidiaries and associates - For the six months ended June 30, 2025, the Group did not undertake any significant acquisitions or disposals of subsidiaries and associates[80](index=80&type=chunk) [Other Information](index=29&type=section&id=%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) [Employees and Remuneration Policy](index=29&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June 30, 2025, the Group's total number of employees was approximately 520, a significant increase from the prior period. Employee remuneration and bonuses are determined based on responsibilities, performance, experience, and industry practices, and are regularly reviewed Number of Employees (As of June 30) | Item | 2025 (Number) | 2024 (Number) | Change (Number) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Total number of employees | 520 | 280 | 240 | +85.7% | - Employee remuneration and bonuses are determined based on their responsibilities, performance, experience, and prevailing industry practices, and are regularly reviewed by management[81](index=81&type=chunk) [Interim Dividend](index=29&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Directors do 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 (June 30, 2024: nil HKD)[83](index=83&type=chunk) [Events After Reporting Period](index=29&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E4%BB%B6) There were no significant events concerning the Company after the reporting period - There were no significant events concerning the Company after the reporting period[84](index=84&type=chunk) [Future Prospects](index=29&type=section&id=%E6%9C%AA%E4%BE%86%E5%89%8D%E6%99%AF) Looking ahead to the second half of 2025, the Group anticipates a complex and volatile macroeconomic environment, maintaining cautious optimism. The Group will continue to strengthen its market position in the supply chain business, fully utilize iron ore mining capacity, enhance efficiency in hotel management and catering services, and actively negotiate with Huaxia Bank to ensure financial stability - Looking ahead to the second half of 2025, the macroeconomic environment is expected to remain complex, volatile, challenging, and uncertain[85](index=85&type=chunk) - The Group will focus on fully utilizing the capacity of its iron ore mining and beneficiation business to effectively dilute high fixed costs and seek new potential clients[85](index=85&type=chunk) - The Group will continue to focus on improving operational efficiency in hotel management and catering services, enhancing customer satisfaction, and exploring innovative ways to attract a broader customer base[86](index=86&type=chunk) - The Group is actively negotiating with Huaxia Bank regarding the renewal and extension of overdue bank borrowings and loan agreements to ensure financial stability[86](index=86&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=30&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) 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 - 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[87](index=87&type=chunk) [Compliance with Corporate Governance Code](index=30&type=section&id=%E9%81%B5%E5%AE%88%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) For the six months ended June 30, 2025, the Company complied with the Corporate Governance Code in Appendix C1 of the Listing Rules, with two deviations: the roles of Chairman and Chief Executive Officer are held by the same person, and Chairman Mr. Wu Zongchuan was unable to attend the Annual General Meeting - The Company has complied with the principles and applicable code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules[88](index=88&type=chunk) - Deviation one: The roles of Chairman and Chief Executive Officer are held concurrently by Mr. Wu Zongchuan, a structure the Board believes is conducive to maintaining strong and stable leadership[88](index=88&type=chunk) - Deviation two: Chairman Mr. Wu Zongchuan was unable to attend the Annual General Meeting on June 20, 2025, due to other business arrangements and had delegated an executive director to answer questions on his behalf[88](index=88&type=chunk) [Directors' Securities Transactions in Compliance with Model Code](index=31&type=section&id=%E8%91%A3%E4%BA%8B%E9%81%B5%E5%AE%88%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87%E9%80%B2%E8%A1%8C%E4%B9%8B%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93) The Company has adopted a strict code of conduct for directors' securities transactions and confirmed that all directors complied with this model code for the six months ended June 30, 2025 - The Company has adopted a code of conduct for directors' securities transactions, with terms no less exacting than the standard set out in Appendix C3 of the Listing Rules[89](index=89&type=chunk) - Following specific enquiries with all Directors, the Company confirmed that all Directors complied with the model code for the six months ended June 30, 2025[89](index=89&type=chunk) [Audit Committee](index=31&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Audit Committee has reviewed the Group's unaudited interim results for the six months ended June 30, 2025, deeming them compliant with applicable accounting standards and Listing Rules, with appropriate disclosures. The external auditor performed agreed-upon procedures but did not express an assurance opinion - The Group's external auditor performed certain agreed-upon procedures on the unaudited interim condensed consolidated financial statements in accordance with Hong Kong Standard on Related Services 4400 (Revised), "Engagements to Perform Agreed-Upon Procedures"[90](index=90&type=chunk) - The auditor did not express any assurance on the Company's interim results for the six months ended June 30, 2025[90](index=90&type=chunk) - The Audit Committee believes that the Group's unaudited financial statements for the six months ended June 30, 2025, comply with applicable accounting standards and Listing Rules, and appropriate disclosures have been made[90](index=90&type=chunk) [Publication of Interim Report on HKEX and Company Website](index=31&type=section&id=%E6%96%BC%E8%81%AF%E4%BA%A4%E6%89%80%E5%8F%8A%E6%9C%AC%E5%85%AC%E5%8F%B8%E7%B6%B2%E7%AB%99%E5%88%8A%E7%99%BB%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) The Company will dispatch the interim report, containing all information required by the Listing Rules, to shareholders at the appropriate time, and publish it on the HKEX website and the Company's website - The Company will dispatch the interim report, containing all information required by the Listing Rules, to its shareholders at the appropriate time[91](index=91&type=chunk) - The interim report will be published on the HKEX website (www.hkexnews.hk) and the Company's website (www.paktakintl.com)[91](index=91&type=chunk)

Core Viewpoint - Baide International (02668) is expected to report a significant increase in losses for the first half of the year, projecting a loss of approximately HKD 110 million to HKD 130 million, compared to a loss of HKD 36.8 million in the same period last year [1]. Group 1: Financial Performance - The company anticipates a loss of around HKD 110 million to HKD 130 million for the first half of the year [1]. - Last year's loss for the same period was HKD 36.8 million, indicating a substantial deterioration in financial performance [1]. Group 2: Reasons for Loss - The primary reasons for the expected losses include increased operational costs following the acquisition of iron ore mining and processing operations completed at the end of last year [1]. - The mining operations have led to a significant rise in overall costs, including direct costs, operational expenses, and administrative expenses [1]. - The company maintains approximately HKD 405 million in bank loans related to its mining business, contributing to increased financial costs [1]. - There has also been an increase in fair value losses related to investment properties [1]. Group 3: Business Segments - Baide International is primarily engaged in the trading of non-ferrous metals and construction materials [1]. - The company operates five main business segments: - Supply chain services for non-ferrous metals and construction materials - Hotel management and catering services - Equipment leasing - Property investment focusing on retail shop leasing - Securities investment in equity [1].

Core Viewpoint - Baide International (02668) is expected to report a significant increase in losses for the first half of the year, projecting a loss attributable to shareholders of approximately HKD 110 million to HKD 130 million, compared to a loss of HKD 36.8 million in the same period last year [1] Financial Performance - The company anticipates a loss of HKD 110 million to HKD 130 million for the first half of the year, a substantial increase from the previous year's loss of HKD 36.8 million [1] - The increase in losses is attributed to several factors, including significant operational cost increases following the acquisition of iron ore mining and processing operations [1] Operational Challenges - The operational costs have risen due to direct costs, operational expenses, and administrative expenses associated with the new mining business [1] - The mining operations are maintaining approximately HKD 405 million in bank loans, which has led to increased financial costs for the group [1] - There has also been an increase in the fair value loss of investment properties [1] Business Segments - Baide International primarily engages in the trading of non-ferrous metals and construction materials, with five main business segments: 1. Supply chain services for non-ferrous metals and construction materials 2. Hotel management and catering services 3. Equipment leasing 4. Property investment, focusing on retail shop leasing 5. Securities investment in equity [1]

Core Viewpoint - Baide International (02668) is expected to report a significant increase in losses for the first half of the year, projecting a loss of approximately HKD 110 million to HKD 130 million, compared to a loss of HKD 36.8 million in the same period last year [1] Financial Performance - The company anticipates a loss of around HKD 110 million to HKD 130 million for the first half of the year [1] - Last year's loss for the same period was HKD 36.8 million [1] Reasons for Loss - The primary reasons for the increased losses include: - Significant increase in overall costs due to the acquisition of iron ore mining and processing operations completed at the end of last year, which has led to higher direct costs, operational expenses, and administrative expenses [1] - Maintenance of approximately HKD 405 million in bank loans related to mining operations, resulting in increased financial costs for the group [1] - Increased fair value losses on investment properties [1] Business Segments - Baide International is primarily engaged in the trading of non-ferrous metals and construction materials, with five main business segments: - Supply chain services for non-ferrous metals and construction materials [1] - Hotel management and catering services [1] - Equipment leasing [1] - Retail shop leasing [1] - Securities investment [1]

Core Viewpoint - Baida International (02668) experienced a decline of 5.63% in stock price, trading at HKD 0.335 per share with a transaction volume of HKD 7.0655 million as of 10:48 AM on August 19 [1] Group 1: Company Overview - Baida International Limited (2668.HK) is primarily engaged in supply chain management, hotel and catering services, property investment, and diversified businesses including leasing, lending, and securities investment [1] - Since its listing on the Hong Kong Stock Exchange in 2001, the company has expanded its revenue sources and enhanced its overall competitiveness through a diversified business model [1] Group 2: Financial Performance - As of the 2024 annual report, Baida International reported total revenue of HKD 625 million and a net loss of HKD 212 million [2]