股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年9月30日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 高科橋光導科技股份有限公司 呈交日期: 2025年10月2日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 09963 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 1,000,000,000 | HKD | | 0.01 | HKD | | 10,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 1,000,000,000 | HKD | | 0.01 | HKD | | 10,000,000 | 本月底法定/ ...

Core Viewpoint - Gaoke Bridge (09963) experienced a significant stock price increase of over 40%, reaching a rise of 48.57% to HKD 0.52, with a trading volume of HKD 1.4497 million [1] Financial Performance - For the first half of 2025, Gaoke Bridge reported a revenue of HKD 38.746 million, representing a year-on-year decrease of 46.82% [1] - The decline in revenue was primarily attributed to a reduction in sales of optical cables, which decreased by approximately 46.0% to around HKD 37.4 million, and a significant drop in fiber sales, which fell by about 63.9% to around HKD 1.3 million [1] Industry Insights - Minsheng Securities highlighted a surge in capital expenditures for AI data centers, indicating a rapid increase in the demand for low-loss fibers such as multimode fibers and hollow fibers [1] - The investment focus of operators has shifted towards cloud computing and data centers, leading to sustained growth in the demand for multimode fibers in data centers and G.654.E optical cables in long-haul trunk applications [1] - Low-loss fiber connections are identified as a critical infrastructure for AI data centers, effectively supporting large-scale data transmission and high-speed computing tasks [1]

Group 1 - The core viewpoint of the article highlights that Gaokeqiao (09963) experienced a significant stock price increase of over 40%, reaching a rise of 48.57% to HKD 0.52, with a trading volume of HKD 1.4497 million [1] - Gaokeqiao reported a mid-year revenue of HKD 38.746 million for 2025, reflecting a year-on-year decrease of 46.82% [1] - The revenue decline was primarily attributed to a reduction in sales of optical cables, which decreased by approximately 46.0% to about HKD 37.4 million, and a 63.9% drop in fiber sales to around HKD 1.3 million [1] Group 2 - Minsheng Securities noted a surge in capital expenditure for AI data centers, indicating a rapid increase in the demand for low-loss fibers such as multimode and hollow fibers [1] - The article mentions that operators are focusing on increasing investments in cloud computing and data centers, leading to sustained growth in the demand for multimode fibers in data centers and G.654.E optical cables in long-haul applications [1] - Low-loss fiber connections are identified as a critical infrastructure for AI data centers, effectively supporting large-scale data transmission and high-speed computing tasks [1]

截至月份: 2025年8月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 高科橋光導科技股份有限公司 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 呈交日期: 2025年9月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 09963 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 1,000,000,000 | HKD | | 0.01 | HKD | | 10,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 1,000,000,000 | HKD | | 0.01 | HKD | | 10,000,000 | 本月底法定/註 ...

Core Viewpoint - The financial performance of Gaoke Bridge (09963.HK) for the six months ending June 30, 2025, was disappointing, with significant revenue decline and continued losses [1] Financial Performance - Total revenue recorded was approximately HKD 38.7 million, representing a year-on-year decrease of about 46.9% [1] - Loss attributable to shareholders for the reporting period was approximately HKD 12.6 million, which is an 8.0% reduction compared to the previous period [1] - Basic loss per share was approximately HKD 0.049, compared to HKD 0.053 for the six months ending June 30, 2024 [1] Industry Context - The Chinese telecommunications industry is facing dual pressures of demand contraction and intensified competition due to global geopolitical fluctuations and a slowdown in domestic economic growth [1] - The challenges and uncertainties faced by fiber optic and cable companies in the current market environment remain significant [1] - The company is vigilant regarding these developments and is continuously assessing their impact while taking necessary measures to mitigate effects on its business [1]

Core Viewpoint - The company reported a significant decline in revenue and a net loss for the first half of 2025, primarily due to decreased sales in optical cables and fibers [1] Financial Performance - Revenue for the first half of 2025 was HKD 38.746 million, a decrease of 46.82% year-on-year [1] - The net loss amounted to HKD 12.644 million, which is a reduction of 7.57% compared to the previous year [1] - Earnings per share reflected a loss of HKD 0.049 [1] Revenue Breakdown - Sales of optical cables decreased by approximately 46.0% to around HKD 37.4 million [1] - Sales of optical fibers saw a significant decline of about 63.9%, totaling around HKD 1.3 million [1] Loss Mitigation Factors - The reduction in net loss was influenced by several factors: - Increase in foreign exchange gains [1] - Increase in gross loss [1] - Decrease in financial costs [1] - Reversal of provisions for expected credit losses on accounts receivable [1] - Increase in inventory provisions [1]

Core Insights - The company, 高科桥 (09963), reported a significant decline in revenue for the first half of 2025, amounting to HKD 38.746 million, which represents a year-on-year decrease of 46.82% [1] - The net loss for the company was HKD 12.644 million, showing a smaller decline of 7.57% compared to the previous year, with a loss per share of HKD 0.049 [1] Revenue Breakdown - The decrease in revenue was primarily attributed to a 46.0% drop in sales of optical cables, totaling approximately HKD 37.4 million [1] - Sales of optical fibers experienced a more severe decline of 63.9%, amounting to around HKD 1.3 million [1] Loss Reduction Factors - The reduction in net loss was influenced by several factors, including: - An increase in foreign exchange gains [1] - A rise in gross loss [1] - A decrease in financial costs [1] - A reversal of provisions for expected credit losses on accounts receivable [1] - An increase in inventory provisions [1]

[Company Information](index=3&type=section&id=Company%20Information) This section provides essential company details, including board composition, key committees, registration information, and primary business activities [Board of Directors and Committees](index=3&type=section&id=Board%20of%20Directors%20and%20Committees) This section lists the composition of the company's Board of Directors, including executive and independent non-executive directors, and the members and chairpersons of the Audit, Remuneration, and Nomination Committees - The Board of Directors comprises **4 executive directors** (including Chairman and CEO Mr. He Xingfu) and **3 independent non-executive directors**[5](index=5&type=chunk) - The company has an Audit Committee (chaired by Mr. Leung Chiu Kwan), a Remuneration Committee (chaired by Mr. Lau Siu Hang), and a Nomination Committee (chaired by Mr. He Xingfu)[5](index=5&type=chunk) [Company General Information](index=3&type=section&id=Company%20General%20Information) This section provides the company's registered office, Hong Kong headquarters, share registrar, auditor, principal bankers, stock code, and website, noting its main business is manufacturing and selling optical fiber and cables in Hong Kong and Thailand - The company's stock code is **9963**, and its website is www.transtechoptel.com[7](index=7&type=chunk) - The Group's principal business involves manufacturing and selling optical fiber and optical cables in **Hong Kong and Thailand** respectively[19](index=19&type=chunk) [Financial Highlights](index=5&type=section&id=Financial%20Highlights) This section presents a concise overview of the group's interim financial performance, including revenue, loss, and dividend recommendations [Interim Results Overview](index=5&type=section&id=Interim%20Results%20Overview) For the six months ended June 30, 2025, the Group's revenue significantly decreased, gross loss margin substantially increased, and while loss attributable to owners narrowed slightly, the net loss margin expanded, with no interim dividend recommended | Metric | H1 2025 (HK$ million) | H1 2024 (HK$ million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 38.7 | 72.9 | -46.9% | | Gross Loss Margin | 14.8% | 3.8% | +11.0% (increase) | | Loss Attributable to Owners of the Company | 12.6 | 13.7 | -8.0% (narrowed) | | Net Loss Margin | 32.6% | 18.8% | +13.8% (increase) | | Basic Loss Per Share (HK cents) | 4.9 | 5.3 | -7.5% (narrowed) | | Interim Dividend | Nil | Nil | - | [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This section details the group's revenue, costs, and overall profit or loss, highlighting the impact of foreign exchange gains on comprehensive income [Key Profit or Loss Statement Data](index=6&type=section&id=Key%20Profit%20or%20Loss%20Statement%20Data) The Group experienced a significant revenue decline and expanded gross loss in H1 2025, but net loss narrowed due to positive foreign exchange gains, leading to a shift from total comprehensive expense to income | Metric | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Revenue | 38,746 | 72,852 | | Cost of Sales | (44,476) | (75,610) | | Gross Loss | (5,730) | (2,758) | | Other Income and Losses | 1,999 | (1,862) | | Loss Before Tax | (13,070) | (14,168) | | Loss for the Period | (12,644) | (13,680) | | Total Comprehensive Income/(Expense) for the Period | 640 | (31,208) | | Basic Loss Per Share (HK cents) | (4.9) | (5.3) | - Total comprehensive income for the period shifted from an expense of **HK$31,208 thousand** in H1 2024 to an income of **HK$640 thousand** in H1 2025, primarily due to exchange differences on translation of foreign operations[11](index=11&type=chunk) [Condensed Consolidated Statement of Financial Position](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This section presents the group's assets, liabilities, and equity at the reporting date, showing changes in non-current assets, current assets, and cash balances [Key Balance Sheet Data](index=7&type=section&id=Key%20Balance%20Sheet%20Data) As of June 30, 2025, the Group's non-current assets increased, current assets and liabilities changed, resulting in a decrease in net current assets, but total assets less current liabilities and total equity remained relatively stable | Metric | June 30, 2025 (HK$ thousand) | Dec 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Non-current Assets | 259,155 | 244,671 | | Current Assets | 142,494 | 150,360 | | Current Liabilities | 45,744 | 39,439 | | Net Current Assets | 96,750 | 110,921 | | Total Assets Less Current Liabilities | 355,905 | 355,592 | | Net Assets | 355,399 | 354,759 | | Total Equity | 355,399 | 354,759 | - Property, plant and equipment increased from **HK$225,965 thousand** as of December 31, 2024, to **HK$239,387 thousand** as of June 30, 2025[13](index=13&type=chunk) - Bank balances and cash decreased from **HK$17,763 thousand** as of December 31, 2024, to **HK$11,565 thousand** as of June 30, 2025[13](index=13&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This section outlines the changes in the group's total equity, primarily driven by the period's loss and foreign exchange differences from overseas operations [Analysis of Changes in Equity](index=8&type=section&id=Analysis%20of%20Changes%20in%20Equity) The Group's total equity slightly increased in H1 2025, primarily due to other comprehensive income from exchange differences on translation of foreign operations, offsetting the loss for the period | Metric | June 30, 2025 (HK$ thousand) | Jan 1, 2025 (HK$ thousand) | | :--- | :--- | :--- | | Total Equity | 355,399 | 354,759 | | Loss for the Period | (12,644) | (11,400) (beginning of accumulated profits) | | Other Comprehensive Income (Exchange Differences) | 13,284 | - | | Total Comprehensive Income/(Expense) for the Period | 640 | - | - Exchange reserve improved from **(HK$21,006 thousand)** as of January 1, 2025, to **(HK$7,722 thousand)** as of June 30, 2025, reflecting a positive impact from exchange rate movements[15](index=15&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This section details the group's cash flows from operating, investing, and financing activities, indicating a net decrease in cash and cash equivalents [Key Cash Flow Data](index=9&type=section&id=Key%20Cash%20Flow%20Data) In H1 2025, the Group's net cash used in operating activities significantly increased, and despite net cash inflow from financing activities, cash and cash equivalents experienced a net decrease overall | Metric | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (11,064) | (1,973) | | Net Cash Used in Investing Activities | (274) | (122) | | Net Cash From/(Used in) Financing Activities | 3,510 | (5,733) | | Net Decrease in Cash and Cash Equivalents | (7,828) | (7,828) | | Cash and Cash Equivalents at End of Period | 11,565 | 7,593 | - Net cash used in operating activities increased from **HK$1,973 thousand** in H1 2024 to **HK$11,064 thousand** in H1 2025[17](index=17&type=chunk) - Financing activities shifted from a net cash outflow of **HK$5,733 thousand** in H1 2024 to a net cash inflow of **HK$3,510 thousand** in H1 2025, primarily due to new bank borrowings exceeding repayments[17](index=17&type=chunk) [Notes to the Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and breakdowns for various line items in the financial statements, covering accounting policies, revenue, expenses, and balance sheet components [1. General Information and Basis of Preparation](index=9&type=section&id=1.%20General%20Information%20and%20Basis%20of%20Preparation) This section outlines the company's registration, listing history, ultimate holding company, and principal business, stating that the interim financial statements are prepared in Hong Kong Dollars under HKFRS - The Company was incorporated in the Cayman Islands on **September 6, 2016**, and successfully transferred its listing from GEM to the Main Board on **November 5, 2020**[19](index=19&type=chunk) - The ultimate holding company is Hangzhou Futong Investment Co., Ltd., and the Group's principal business is manufacturing and selling optical fiber and optical cables in **Hong Kong and Thailand**[19](index=19&type=chunk) - The consolidated financial results are prepared in accordance with **Hong Kong Financial Reporting Standards (HKFRS)** issued by the Hong Kong Institute of Certified Public Accountants[19](index=19&type=chunk) [2. Significant Accounting Policies](index=10&type=section&id=2.%20Significant%20Accounting%20Policies) The condensed consolidated financial statements adopt the same accounting policies as the previous year's financial statements, and the adoption of new and revised HKFRS has not led to significant changes in accounting policies or reported amounts - The condensed consolidated financial statements have been prepared on a historical cost basis and follow the same accounting policies applied in the preparation of the Group's financial statements for the year ended **December 31, 2024**[20](index=20&type=chunk) - The adoption of new and revised HKFRS has not resulted in significant changes to the Group's accounting policies or the amounts reported for the current and prior periods[20](index=20&type=chunk) [3. Revenue and Segment Information](index=11&type=section&id=3.%20Revenue%20and%20Segment%20Information) This section details revenue by type of goods and operating segment, showing a significant decline in both optical cable and optical fiber sales, with the Group's operating segments including optical cables in Thailand and optical fiber in Hong Kong | Type of Goods | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Sales of Optical Cables | 37,441 | 69,562 | | Sales of Optical Fibers | 1,305 | 3,290 | | Total | 38,746 | 72,852 | - The Group's operating and reportable segments are (i) optical cables, optical cable cores, and other related products located in **Thailand**; and (ii) optical fibers located in **Hong Kong**[29](index=29&type=chunk) | Segment | H1 2025 Segment Loss (HK$ thousand) | H1 2024 Segment Profit/(Loss) (HK$ thousand) | | :--- | :--- | :--- | | Optical Cables, Optical Cable Cores and Other Related Products | (3,887) | 2,036 | | Optical Fibers | (6,204) | (14,345) | [4. Other Income, Gains and Losses](index=16&type=section&id=4.%20Other%20Income%2C%20Gains%20and%20Losses) This section lists income from scrap sales, bank interest, and other sources, highlighting a net foreign exchange gain in H1 2025, contrasting with a net foreign exchange loss in the prior year | Metric | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Other Income | 232 | 216 | | Net Foreign Exchange Gain/(Loss) | 1,897 | (1,862) | | Gain on Disposal of Property, Plant and Equipment | 102 | – | - A net foreign exchange gain of **HK$1,897 thousand** was recorded in H1 2025, compared to a net foreign exchange loss of **HK$1,862 thousand** in H1 2024[33](index=33&type=chunk) [5. Finance Costs](index=16&type=section&id=5.%20Finance%20Costs) This section discloses the Group's finance costs, primarily bank borrowing interest, showing a decrease compared to the prior year | Metric | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Interest on Bank Borrowings | 445 | 810 | [6. Loss Before Tax](index=17&type=section&id=6.%20Loss%20Before%20Tax) This section itemizes expenses deducted in calculating loss before tax, including auditor's remuneration, depreciation, directors' emoluments, staff costs, and inventory costs and provisions | Metric | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Auditor's Remuneration | 596 | 615 | | Depreciation of Property, Plant and Equipment (net) | 474 | 428 | | Total Staff Costs (net) | 6,204 | 6,256 | | Cost of Inventories Recognized as Expense | 33,937 | 75,610 | | Provision for Inventories | 3,010 | 1,917 | | Reversal of Impairment Loss on Trade Receivables | (2,448) | (2,233) | - Cost of inventories recognized as an expense significantly decreased from **HK$75,610 thousand** in H1 2024 to **HK$33,937 thousand** in H1 2025[35](index=35&type=chunk) [7. Income Tax Credit](index=18&type=section&id=7.%20Income%20Tax%20Credit) This section explains the composition of income tax credit, including Hong Kong profits tax and Thai corporate income tax, noting that Futong Thailand enjoys tax incentives, leading to an overall decrease in income tax credit | Metric | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Thai Corporate Income Tax (Current Tax) | 441 | (935) | | Deferred Tax | (921) | 392 | | Total Income Tax Credit | (426) | (488) | - Futong Thailand enjoys tax incentives under the Investment Promotion Act of Thailand, including a **50% reduction** in corporate income tax payable from March 26, 2021, to March 25, 2026[37](index=37&type=chunk) [8. Dividends](index=19&type=section&id=8.%20Dividends) The Board of Directors decided not to recommend an interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Company neither paid, declared, nor proposed any dividends during the interim period (six months ended June 30, 2024: nil)[38](index=38&type=chunk) [9. Loss Per Share](index=19&type=section&id=9.%20Loss%20Per%20Share) This section calculates basic loss per share and notes that diluted loss per share is not presented due to the absence of potential ordinary shares | Metric | H1 2025 (HK cents) | H1 2024 (HK cents) | | :--- | :--- | :--- | | Basic Loss Per Share | (4.9) | (5.3) | - Basic loss per share is calculated based on the loss for the period attributable to owners of the Company and the weighted average of **260,000,000 issued ordinary shares**[39](index=39&type=chunk) - Diluted loss per share is not presented as no potential ordinary shares were issued during both periods[40](index=40&type=chunk) [10. Changes in Property, Plant and Equipment](index=19&type=section&id=10.%20Changes%20in%20Property%2C%20Plant%20and%20Equipment) The Group made purchases of property, plant and equipment in H1 2025, primarily investing in machinery, motor vehicles, and construction in progress | Item | H1 2025 Purchases (HK$ thousand) | H1 2024 Purchases (HK$ thousand) | | :--- | :--- | :--- | | Machinery | 229 | 0 | | Motor Vehicles | 155 | 0 | | Construction in Progress | 2,193 | 1,201 | [11. Deposits, Prepayments and Other Receivables](index=20&type=section&id=11.%20Deposits%2C%20Prepayments%20and%20Other%20Receivables) This section provides a detailed breakdown of non-current and current deposits, prepayments, and other receivables, disclosing significant advances to a supplier for raw material purchases and related loss provisions | Metric | June 30, 2025 (HK$ thousand) | Dec 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Non-current Portion (less loss allowance) | 4,027 | 3,911 | | Current Portion (less loss allowance) | 62,358 | 62,480 | | Deposits for Raw Material Purchases (current) | 172,743 | 143,333 | | Loss Allowance (current) | (129,676) | (94,635) | - As of June 30, 2025, approximately **HK$48,507 thousand** in prepayments (net of impairment loss of HK$124,236 thousand) included advances made to a supplier for raw material purchases[42](index=42&type=chunk) [12. Inventories](index=21&type=section&id=12.%20Inventories) This section lists the components of inventories, including raw materials and consumables, work in progress, finished goods, and goods in transit, along with inventory provisions | Item | June 30, 2025 (HK$ thousand) | Dec 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Raw Materials and Consumables | 21,491 | 23,741 | | Work in Progress | 6,408 | 7,564 | | Finished Goods | 9,997 | 10,262 | | Total Inventories (before provision) | 38,705 | 43,241 | | Provision for Inventories | (3,980) | (8,172) | | Net Inventories | 34,725 | 35,069 | [13. Trade Receivables](index=21&type=section&id=13.%20Trade%20Receivables) This section provides the total amount of trade receivables, loss allowance, aging analysis, and denominated currencies, demonstrating the Group's strict control over credit risk | Metric | June 30, 2025 (HK$ thousand) | Dec 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Total Trade Receivables | 172,742 | 171,857 | | Loss Allowance | (138,896) | (136,809) | | Net Trade Receivables | 33,846 | 35,048 | | Aging | June 30, 2025 (HK$ thousand) | Dec 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | 0 to 180 days | 27,106 | 34,607 | | 181 to 270 days | 1,952 | – | | 271 to 365 days | 4,788 | – | | Over 365 days | – | 441 | - Trade receivables are primarily denominated in **Thai Baht (HK$21,338 thousand)** and **US Dollars (HK$12,314 thousand)**[46](index=46&type=chunk) [14. Trade Payables](index=22&type=section&id=14.%20Trade%20Payables) This section provides the total amount of trade payables, aging analysis, and denominated currencies, illustrating the Group's supplier credit terms and the currency composition of its payables | Metric | June 30, 2025 (HK$ thousand) | Dec 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade Payables | 10,474 | 10,253 | | Aging | June 30, 2025 (HK$ thousand) | Dec 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | 0 to 30 days | 7,882 | 4,942 | | 31 to 60 days | 777 | 2,049 | | 61 to 90 days | 23 | 1,853 | | 91 to 180 days | 1,345 | 1,243 | | Over 180 days | 447 | 166 | - Trade payables are primarily denominated in **Renminbi (HK$5,290 thousand)** and **Thai Baht (HK$2,554 thousand)**[49](index=49&type=chunk) [15. Other Payables and Accrued Charges](index=24&type=section&id=15.%20Other%20Payables%20and%20Accrued%20Charges) This section lists the Group's other payables and accrued charges, showing a slight increase in their total amount | Metric | June 30, 2025 (HK$ thousand) | Dec 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Accrued Charges | 2,920 | 3,187 | | Other Payables | 918 | 238 | | Total | 3,838 | 3,425 | [16. Contract Liabilities](index=24&type=section&id=16.%20Contract%20Liabilities) This section explains the source of contract liabilities (primarily customer advances) and their changes, indicating a significant increase in contract liabilities | Metric | June 30, 2025 (HK$ thousand) | Dec 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Contract Liabilities | 486 | 14 | - Contract liabilities primarily arise from short-term customer advances for optical cable sales, increasing from **HK$14 thousand** as of December 31, 2024, to **HK$486 thousand** as of June 30, 2025[51](index=51&type=chunk) - The increase in contract liabilities is mainly due to **HK$461 thousand** in advances received from customers[52](index=52&type=chunk) [17. Bank and Other Borrowings](index=25&type=section&id=17.%20Bank%20and%20Other%20Borrowings) This section provides detailed information on bank borrowings, including effective interest rates, amounts, and maturity dates, showing an increase in total borrowings, all denominated in Thai Baht | Metric | June 30, 2025 (HK$ thousand) | Dec 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Bank Borrowings – Unsecured | 30,875 | 25,300 | | Effective Interest Rate | 4% | 5% | - All bank borrowings are floating-rate and repayable within **one year or on demand**[53](index=53&type=chunk) - The carrying amount of bank borrowings is entirely denominated in **Thai Baht**[53](index=53&type=chunk) [18. Deferred Tax](index=26&type=section&id=18.%20Deferred%20Tax) This section analyzes deferred tax assets and their changes, primarily related to tax losses, provisions for expected credit losses, and accelerated tax depreciation | Metric | June 30, 2025 (HK$ thousand) | Dec 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Deferred Tax Assets | 15,741 | 14,795 | - Deferred tax assets primarily consist of provisions for expected credit losses (**HK$14,615 thousand**) and tax losses (**HK$2,030 thousand**)[54](index=54&type=chunk) [19. Provisions](index=27&type=section&id=19.%20Provisions) This section discloses changes in the long service payment provision, which is made for employees in accordance with Thai employment regulations | Metric | June 30, 2025 (HK$ thousand) | Dec 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Long Service Payment Provision | 506 | 833 | - The long service payment provision was reversed by **HK$364 thousand** during the period, leading to a decrease in the period-end balance[55](index=55&type=chunk) [20. Share Capital](index=27&type=section&id=20.%20Share%20Capital) This section describes the company's authorized and issued share capital, both of which remained unchanged during the reporting period | Metric | Number of Shares | HK$ thousand | | :--- | :--- | :--- | | Authorized Share Capital (par value HK$0.01 per share) | 1,000,000,000 | 10,000 | | Issued and Fully Paid Share Capital (par value HK$0.01 per share) | 260,000,000 | 2,600 | [21. Related Party Transactions](index=28&type=section&id=21.%20Related%20Party%20Transactions) This section discloses transactions between the Group and related parties, including rental expenses paid to Futong Group International Limited and key management personnel remuneration | Transaction Type | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Rental Expenses to Related Company | 3,900 | 4,500 | | Other Payables to Related Company (period-end) | 650 | – | | Key Management Personnel Remuneration | 1,844 | 1,786 | - Short-term lease rental expenses for plant and office premises paid to Futong Group International Limited decreased[58](index=58&type=chunk) [22. Contingent Liabilities](index=29&type=section&id=22.%20Contingent%20Liabilities) The Group had no significant contingent liabilities at the end of the reporting period - As of June 30, 2025, and December 31, 2024, the Group had **no significant contingent liabilities**[63](index=63&type=chunk) [23. Approval of Financial Statements](index=29&type=section&id=23.%20Approval%20of%20Financial%20Statements) The interim financial statements were approved and authorized for issue by the Company's Board of Directors on August 27, 2025 - The interim financial statements were approved and authorized for issue by the Company's Board of Directors on **August 27, 2025**[64](index=64&type=chunk) [Management Discussion and Analysis](index=29&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an in-depth review of the group's operational and financial performance, market outlook, and risk management strategies [Business Review](index=30&type=section&id=Business%20Review) The Group's financial performance in H1 2025 was unsatisfactory, with a significant revenue decrease and increased gross loss, primarily due to reduced optical cable and optical fiber sales | Metric | H1 2025 (HK$ million) | H1 2024 (HK$ million) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 38.7 | 72.9 | -46.9% | | Gross Loss | 5.7 | 2.8 | +103.6% | | Loss Attributable to Owners of the Company | 12.6 | 13.7 | -8.0% | | Optical Cable Sales | 37.4 | 69.2 | -46.0% | | Optical Fiber Sales | 1.3 | 3.6 | -63.9% | [Review](index=30&type=section&id=Review) The Chinese telecommunications industry faces severe challenges from demand contraction and intensified competition amid global geopolitical volatility and domestic economic slowdown, leading to uncertainties for optical fiber and cable companies - The Chinese telecommunications industry faces dual pressures of **demand contraction and intensified competition**, with challenges and uncertainties persisting for optical fiber and cable companies[67](index=67&type=chunk) [Futong Thailand](index=30&type=section&id=Futong%20Thailand) Futong Thailand's performance was generally poor due to a weak Thai and ASEAN market, with optical cable sales revenue significantly decreasing due to lower sales volume and prices, leading to a reduced gross profit margin | Metric | H1 2025 (HK$ million) | H1 2024 (HK$ million) | | :--- | :--- | :--- | | Thai Optical Cable Sales Revenue | 37.4 | 69.2 | | Sales to Other Countries | 6.8 | 29.3 | | Sales to Germany | 5.6 | 23.1 | | Gross Profit Margin | 3.0% | 9.2% | - The decrease in gross profit margin was mainly due to lower optical cable sales volume and prices in the Thai local market, reduced demand for optical cables and fibers, and the net effect of increased optical cable sales volume but decreased unit prices in ASEAN countries[70](index=70&type=chunk) [High-Tech Bridge](index=31&type=section&id=High-Tech%20Bridge) High-Tech Bridge was severely impacted by low optical fiber prices and oversupply, leading to frequent production line shutdowns and significant decreases in both revenue and net loss | Metric | H1 2025 (HK$ million) | H1 2024 (HK$ million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 2.3 | 9.9 | -76.8% | | Net Loss | 6.5 | 14.2 | -54.2% | - Oversupply and weak demand for optical fiber led to **frequent production line shutdowns**, with all products sold internally to Futong Thailand[71](index=71&type=chunk) [Prospects](index=31&type=section&id=Prospects) Looking ahead to H2 2025, the Chinese telecommunications industry is expected to benefit from 5G network popularization and digital economy development, with global optical cable demand also projected to grow; however, High-Tech Bridge anticipates continued optical fiber price declines and plans to suspend optical fiber drawing production to focus on new products like butterfly optical cables - Multiple factors, including the rapid popularization of **5G networks**, broadband network coverage, and increased demand from the power industry, are expected to bring significant growth opportunities for the Chinese telecommunications industry[72](index=72&type=chunk) - Global demand for optical fiber and cables is expected to **increase significantly**, creating numerous export opportunities for domestic optical cable manufacturers[74](index=74&type=chunk) - High-Tech Bridge estimates that optical fiber prices will continue to decline due to industry overcapacity and plans to **suspend its optical fiber drawing production** in H2 2025[74](index=74&type=chunk) - All six of High-Tech Bridge's butterfly optical cable production facilities have been installed and are expected to commence production in the **last quarter of 2025**, with active pursuit of OEM collaborations[74](index=74&type=chunk) [Financial Review](index=33&type=section&id=Financial%20Review) This section provides a detailed review of the Group's financial performance, including revenue, cost of sales, gross profit, other income, selling and distribution expenses, administrative expenses, finance costs, taxation, and loss for the period, explaining the reasons for each change - Total revenue decreased by **46.9% to HK$38.7 million** compared to the prior year, primarily due to decreased market demand for optical cables and optical fibers[76](index=76&type=chunk)[77](index=77&type=chunk) - Cost of sales decreased by **41.1% to HK$44.5 million**, but gross loss increased from **HK$2.8 million to HK$5.7 million**, with the gross loss margin rising from **3.8% to 14.8%**, mainly due to a **10.5% decrease in optical fiber gross margin** and a **5.6% decrease in optical cable gross margin**[78](index=78&type=chunk) - A foreign exchange gain of approximately **HK$1.9 million** was recognized, compared to a loss of approximately HK$1.9 million in the prior year, mainly due to exchange rate fluctuations among Renminbi, Hong Kong Dollar, Thai Baht, and US Dollar[81](index=81&type=chunk) - Finance costs decreased to **HK$0.4 million**, primarily due to a reduction in bank borrowings[84](index=84&type=chunk) - Loss attributable to owners of the Company decreased to **HK$12.6 million**, mainly due to the net effect of increased foreign exchange gains, reduced finance costs, and increased reversal of impairment provision for trade receivables, partially offset by increased gross loss and inventory provisions[86](index=86&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=36&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital%20Structure) The Group's primary funding sources are operating cash and bank borrowings; as of June 30, 2025, cash and cash equivalents decreased, bank borrowings increased, leading to a higher gearing ratio, while the capital structure remained unchanged since listing | Metric | June 30, 2025 (HK$ million) | Dec 31, 2024 (HK$ million) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 11.6 | 17.8 | | Total Bank and Other Borrowings | 30.9 | 25.3 | | Gearing Ratio | 8.7% | 7.1% | - The increase in gearing ratio is mainly due to the net effect of repayment of bank borrowings and an increase in total equity primarily from the loss for the period[88](index=88&type=chunk) - The Company's capital structure has remained unchanged since its listing date to the date of this report, comprising only **ordinary shares**[90](index=90&type=chunk) [Treasury Policy](index=36&type=section&id=Treasury%20Policy) The Group adopts a prudent financial management approach, controlling liquidity risk by closely monitoring its liquidity position and maintaining sufficient cash and credit facilities - The Group has adopted a **prudent financial management approach** for its treasury policy and maintains a sound liquidity position[91](index=91&type=chunk) - Management closely monitors the Group's liquidity position and maintains sufficient cash and committed credit facilities to manage liquidity risk[91](index=91&type=chunk) [Contingent Liabilities and Litigation](index=36&type=section&id=Contingent%20Liabilities%20and%20Litigation) As of the end of the reporting period, the Group had no significant contingent liabilities or litigation - As of June 30, 2025, the Group had **no significant contingent liabilities or litigation**[92](index=92&type=chunk) [Environmental Policies and Performance](index=37&type=section&id=Environmental%20Policies%20and%20Performance) The Group is committed to reducing its environmental impact through pollution reduction and efficient resource utilization, striving to comply with relevant environmental laws and regulations - The Group is committed to reducing the environmental impact of its factories and offices through **pollution reduction and efficient resource utilization**[93](index=93&type=chunk) - The Group strives to comply with relevant environmental laws and regulations and continuously improves its performance[93](index=93&type=chunk) [Key Relationships with Employees, Customers and Suppliers](index=37&type=section&id=Key%20Relationships%20with%20Employees%2C%20Customers%20and%20Suppliers) The Group endeavors to maintain good relationships with employees, customers, and suppliers to foster a positive workplace, meet customer requirements, and build long-term supplier relationships - The Group strives to maintain **good relationships with its employees, customers, and suppliers**[94](index=94&type=chunk) [Pledge of Assets](index=37&type=section&id=Pledge%20of%20Assets) Futong Thailand has pledged land and buildings in Rayong, Thailand, as collateral for a credit facility of THB 300 million (approximately HK$68,190,000) - Futong Thailand has pledged a piece of land measuring **58,149 square meters** and buildings thereon located in Rayong, Thailand, as collateral for a credit facility of **THB 300 million (approximately HK$68,190,000)**[95](index=95&type=chunk) [Foreign Exchange Risk](index=37&type=section&id=Foreign%20Exchange%20Risk) The Group faces foreign exchange risk from fluctuations in USD and RMB against THB, and RMB against HKD, and has established a foreign exchange risk management policy - The Group's foreign exchange risk primarily arises from fluctuations in the exchange rates of **US Dollar and Renminbi against Thai Baht**, and **Renminbi against Hong Kong Dollar**[96](index=96&type=chunk) - The Group has established a foreign exchange risk management policy to manage foreign exchange risk[96](index=96&type=chunk) [Interest Rate Risk](index=38&type=section&id=Interest%20Rate%20Risk) The Group faces fair value interest rate risk and cash flow interest rate risk but currently does not use derivatives for hedging, with management maintaining a balanced portfolio of fixed and floating-rate borrowings - The Group's fair value interest rate risk primarily relates to its **fixed-rate bank deposits, lease liabilities, and bank borrowings**[98](index=98&type=chunk) - The Group currently does not use any derivative contracts to hedge its interest rate risk, and management maintains a **balanced portfolio of fixed-rate and floating-rate borrowings**[98](index=98&type=chunk) [Credit Risk](index=38&type=section&id=Credit%20Risk) The Group's credit risk primarily stems from trade and other receivables, which is mitigated through credit limits, monitoring procedures and impairment assessments - The Group's credit risk primarily arises from **trade receivables and other receivables** from customer contracts[99](index=99&type=chunk) - Senior management is responsible for setting credit limits and monitoring procedures, and conducting impairment assessments to estimate expected credit loss amounts[99](index=99&type=chunk) [Liquidity Risk](index=38&type=section&id=Liquidity%20Risk) The Group's management regularly monitors cash flow to maintain funding flexibility by ensuring committed credit facilities are available - The Group's management regularly monitors the Group's cash flow position to ensure **strict control over its cash flows**[100](index=100&type=chunk) - The Group aims to maintain funding flexibility by keeping **committed credit facilities available**[100](index=100&type=chunk) [Capital Commitments](index=38&type=section&id=Capital%20Commitments) As of the end of the reporting period, the Group had no capital commitments - As of June 30, 2025, and December 31, 2024, the Group had **no capital commitments**[101](index=101&type=chunk) [Material Investments Held](index=39&type=section&id=Material%20Investments%20Held) The Group held no material equity investments in any other companies during the reporting period - During the reporting period, the Group held **no material equity investments** in any other companies[102](index=102&type=chunk) [Employees and Remuneration Policy](index=39&type=section&id=Employees%20and%20Remuneration%20Policy) The Group's employee count decreased, and total staff costs slightly declined; the company offers competitive remuneration and internal training, with director and senior management remuneration reviewed by the Board | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Number of Employees (including directors) | 157 employees | 173 employees | | Metric | H1 2025 (HK$ million) | H1 2024 (HK$ million) | | :--- | :--- | :--- | | Total Staff Costs (including directors' emoluments) | 11.1 | 11.7 | - The Group offers **competitive remuneration packages** and various internal training courses, with directors' and senior management's remuneration reviewed and approved by the Board[103](index=103&type=chunk) [Other Information](index=39&type=section&id=Other%20Information) This section covers additional disclosures including future plans, significant transactions, director and shareholder interests, and corporate governance practices [Future Plans for Material Investments and Capital Assets](index=40&type=section&id=Future%20Plans%20for%20Material%20Investments%20and%20Capital%20Assets) The Group currently has no future plans for material investments and capital assets - The Group has **no plans for any material investments and capital assets**[105](index=105&type=chunk) [Material Acquisitions and Disposals of Subsidiaries or Affiliated Companies](index=40&type=section&id=Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%20or%20Affiliated%20Companies) For the six months ended June 30, 2025, the Group had no material acquisitions or disposals of subsidiaries or affiliated companies, nor did it hold any material investments - For the six months ended June 30, 2025, the Group had **no material acquisitions or disposals of subsidiaries or affiliated companies**[106](index=106&type=chunk) - For the six months ended June 30, 2025, the Group held **no material investments**[106](index=106&type=chunk) [Disclosure of Interests of Directors and Major Shareholders](index=40&type=section&id=Disclosure%20of%20Interests%20of%20Directors%20and%20Major%20Shareholders) This section discloses the interests of directors and major shareholders in the Company's shares, confirming no disclosable interests for directors and chief executives, listing major shareholders and their shareholding percentages, and confirming no pledged shares by major shareholders - During the six months ended June 30, 2025, and up to the date of this report, none of the Company's directors or chief executives had any interests or short positions required to be disclosed under the **Securities and Futures Ordinance**[107](index=107&type=chunk) | Shareholder Name | Nature of Interest | Number of Shares Held | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Wang Jianyi | Interest in controlled corporation | 195,000,000 (L) | 75% | | Futong Investment | Interest in controlled corporation | 195,000,000 (L) | 75% | | Futong China | Interest in controlled corporation | 195,000,000 (L) | 75% | | Hangzhou Futong Optical Communication Investment Co., Ltd. | Interest in controlled corporation | 195,000,000 (L) | 75% | | Futong Hong Kong | Beneficial interest | 195,000,000 (L) | 75% | - For the six months ended June 30, 2025, **no major shareholders pledged all or part of their interests** in the Company's shares[113](index=113&type=chunk) [Dividends](index=42&type=section&id=Dividends) The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board of Directors does not recommend the payment of an interim dividend for the six months ended **June 30, 2025**[114](index=114&type=chunk) [Share Option Scheme](index=42&type=section&id=Share%20Option%20Scheme) The Company does not have a share option scheme - The Company has **no share option scheme**[115](index=115&type=chunk) [Directors' Rights to Acquire Shares](index=42&type=section&id=Directors'%20Rights%20to%20Acquire%20Shares) During the reporting period, no rights to acquire shares or debentures of the Company were granted to or exercised by any director or their respective spouses or children under 18 - During the reporting period, **no rights to acquire benefits by way of shares or debentures** of the Company were granted to or exercised by any director or their respective spouses or children under the age of eighteen[116](index=116&type=chunk) [Public Float](index=43&type=section&id=Public%20Float) The Company has maintained the minimum public float as stipulated by the Listing Rules - The Company has maintained the minimum **25% public float** of its issued shares as stipulated by the Listing Rules[118](index=118&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=43&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) 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 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 securities**[119](index=119&type=chunk) [Compliance with Model Code for Securities Transactions by Directors](index=43&type=section&id=Compliance%20with%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company has adopted a model code for securities transactions by directors, and all directors have confirmed compliance during the reporting period - The Group has adopted a model code for securities transactions by directors, and all directors have confirmed compliance with the model code during the reporting period[120](index=120&type=chunk) [Competing Interests](index=43&type=section&id=Competing%20Interests) As of June 30, 2025, no directors, controlling shareholders, or their close associates had any interests in businesses that compete or conflict with the Group's business - As of June 30, 2025, no directors, controlling shareholders of the Company, or their respective close associates had any interests in businesses that directly or indirectly compete or may compete with, or have any other conflict of interest with, the Group's business[121](index=121&type=chunk) [Audit Committee](index=43&type=section&id=Audit%20Committee) The Audit Committee, composed of three independent non-executive directors, has reviewed the Group's interim results and confirmed their compliance with applicable accounting standards and proper disclosure - The Audit Committee is composed of **three independent non-executive directors**, with Mr. Leung Chiu Kwan serving as Chairman[122](index=122&type=chunk) - The Audit Committee has reviewed the Group's unaudited condensed consolidated interim results for the six months ended June 30, 2025, and believes that the statements were prepared in compliance with applicable accounting standards and that appropriate disclosures have been made[124](index=124&type=chunk) [Corporate Governance Practices and Other Information](index=44&type=section&id=Corporate%20Governance%20Practices%20and%20Other%20Information) The Company has adopted and complied with the Corporate Governance Code, committed to maintaining high standards of corporate governance to enhance management effectiveness, transparency, risk management, and protect shareholder interests - The Company has adopted the Corporate Governance Code as its own code of corporate governance practices and has complied with it throughout the reporting period[125](index=125&type=chunk) - The Company is committed to maintaining a high level of corporate governance, believing that good corporate governance enhances management effectiveness and efficiency, increases transparency, improves risk management and internal controls, and protects the interests of shareholders and the Company as a whole[125](index=125&type=chunk) [Events After Reporting Period](index=44&type=section&id=Events%20After%20Reporting%20Period) After the reporting period, High-Tech Bridge renewed its property lease agreement with Futong Group International Limited, which constitutes a continuing connected transaction for the Group - High-Tech Bridge renewed its property lease agreement with Futong Group International Limited for a period of **one year starting from July 1, 2025**, which constitutes a continuing connected transaction for the Group[126](index=126&type=chunk) [Compliance with Laws and Regulations](index=45&type=section&id=Compliance%20with%20Laws%20and%20Regulations) For the six months ended June 30, 2025, the Group was not aware of any non-compliance with relevant laws and regulations that would have a material impact on it - For the six months ended June 30, 2025, the Group was **not aware of any non-compliance with relevant laws and regulations** that would have a material impact on it[127](index=127&type=chunk) [Publication of Interim Report](index=45&type=section&id=Publication%20of%20Interim%20Report) This interim report has been published on the websites of Hong Kong Exchanges and Clearing Limited and the Company - This interim report is published on the websites of **Hong Kong Exchanges and Clearing Limited (www.hkexnews.com.hk)** and the **Company (www.transtechoptel.com)**[128](index=128&type=chunk)

[Company Information](index=3&type=section&id=Company%20Information) This section provides essential details about the company's governance structure, key personnel, and registration information. [Board of Directors and Committees](index=3&type=section&id=Board%20of%20Directors%20and%20Committees) The company's board comprises executive and independent non-executive directors, supported by audit, remuneration, and nomination committees. - Executive Directors include Mr. He Xingfu (Chairman and CEO), Mr. Ren Guodong, Mr. Xu Jinjie, and Ms. Sheng Lingfei[4](index=4&type=chunk) - Independent Non-Executive Directors include Mr. Liang Zhaokun, Mr. Liu Shaoheng, and Mr. Li Wei[4](index=4&type=chunk) - The Audit Committee is chaired by Mr. Liang Zhaokun, the Remuneration Committee by Mr. Liu Shaoheng, and the Nomination Committee by Mr. He Xingfu[4](index=4&type=chunk) [Company Contact and Registration Information](index=3&type=section&id=Company%20Contact%20and%20Registration%20Information) This section details the company's authorized representatives, registered office, Hong Kong headquarters, share registrars, auditor, and principal bankers. - Authorized representatives are Mr. He Xingfu and Mr. He Zhuowei, with Mr. He Zhuowei also serving as Company Secretary[5](index=5&type=chunk) - The registered office is in the Cayman Islands, and the Hong Kong headquarters is located at 3 Tai Kwai Street, Tai Po Industrial Estate, Tai Po, New Territories, Hong Kong[5](index=5&type=chunk) - RSM Hong Kong is the auditor, and principal bankers include Industrial and Commercial Bank of China (Asia) Limited and Bank of China (Hong Kong) Limited[6](index=6&type=chunk) [Financial Highlights](index=5&type=section&id=Financial%20Highlights) This section presents a concise overview of the company's key financial performance indicators for the interim period. [Interim Results Overview](index=5&type=section&id=Interim%20Results%20Overview) For the six months ended June 30, 2025, revenue significantly decreased by 46.9% to HK$38.7 million, while gross loss margin increased to 14.8%. 2025 H1 Financial Highlights Comparison | Indicator | 2025 H1 (HK$ thousand) | 2024 H1 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 38,700 | 72,900 | -46.9% | | Gross Loss Margin | 14.8% | 3.8% | +11.0% | | Loss Attributable to Owners | (12,600) | (13,700) | -8.0% | | Net Loss Margin | 32.6% | 18.8% | +13.8% | | Basic Loss Per Share (HK cents) | (4.9) | (5.3) | -7.5% | | Interim Dividend | Nil | Nil | - | - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[9](index=9&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This section details the company's revenue, costs, and comprehensive income for the interim period, showing a reduced loss compared to the prior year. [Profit or Loss and Comprehensive Income Overview](index=6&type=section&id=Profit%20or%20Loss%20and%20Comprehensive%20Income%20Overview) For the six months ended June 30, 2025, the company reported HK$38.746 million in revenue, a gross loss of HK$5.730 million, and a total comprehensive income of HK$0.640 million. Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Revenue | 38,746 | 72,852 | | Cost of Sales | (44,476) | (75,610) | | Gross Loss | (5,730) | (2,758) | | Other Income | 232 | 216 | | Other Gains and Losses | 1,999 | (1,862) | | Loss Before Tax | (13,070) | (14,168) | | Income Tax Credit | 426 | 488 | | Loss for the Period | (12,644) | (13,680) | | Exchange Differences on Translation of Foreign Operations | 13,284 | (17,528) | | Total Comprehensive Income/(Expense) for the Period | 640 | (31,208) | | Basic Loss Per Share (HK cents) | (4.9) | (5.3) | [Condensed Consolidated Statement of Financial Position](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This section presents the company's assets, liabilities, and equity as of June 30, 2025, indicating changes in non-current assets and net current assets. [Financial Position Overview](index=7&type=section&id=Financial%20Position%20Overview) As of June 30, 2025, non-current assets increased to HK$259.155 million, while net current assets decreased due to higher current liabilities. Condensed Consolidated Statement of Financial Position (As of June 30) | Indicator | 2025 June 30 (HK$ thousand) | 2024 Dec 31 (HK$ thousand) | | :--- | :--- | :--- | | Non-Current Assets | 259,155 | 244,671 | | Current Assets | 142,494 | 150,360 | | Current Liabilities | 45,744 | 39,439 | | Net Current Assets | 96,750 | 110,921 | | Total Assets Less Current Liabilities | 355,905 | 355,592 | | Non-Current Liabilities | 506 | 833 | | Net Assets | 355,399 | 354,759 | | Total Equity | 355,399 | 354,759 | [Condensed Consolidated Statement of Changes in Equity](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This section outlines the movements in the company's equity attributable to owners, primarily influenced by the period's loss and exchange differences. [Equity Changes Overview](index=8&type=section&id=Equity%20Changes%20Overview) Equity attributable to owners increased to HK$355.399 million as of June 30, 2025, with a period loss offset by other comprehensive income from exchange differences. Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30) | Indicator | 2025 June 30 (HK$ thousand) | 2025 Jan 1 (HK$ thousand) | | :--- | :--- | :--- | | Share Capital | 2,600 | 2,600 | | Share Premium | 95,534 | 95,534 | | Other Reserves | 289,031 | 289,031 | | Exchange Fluctuation Reserve | (7,722) | (21,006) | | Accumulated Losses | (24,044) | (11,400) | | Total Equity Attributable to Owners | 355,399 | 354,759 | | Loss for the Period | (12,644) | - | | Other Comprehensive Income | 13,284 | - | | Total Comprehensive Income/(Expense) for the Period | 640 | - | - Other reserves include capital contributions from Futong Group Limited, the carrying amount of net assets of High-Tech Bridge Optic-Communication Limited after changes in ownership interests, and the share capital and share premium of High-Tech Bridge and Futong Group (Thailand) Communication Technology Co., Ltd[14](index=14&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This section summarizes the cash flows from operating, investing, and financing activities, showing a net decrease in cash and cash equivalents. [Cash Flow Overview](index=9&type=section&id=Cash%20Flow%20Overview) For the six months ended June 30, 2025, net cash used in operating activities was HK$11.064 million, resulting in a decrease in cash and cash equivalents. Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Cash Flow Activity | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (11,064) | (1,973) | | Net Cash Used in Investing Activities | (274) | (122) | | Net Cash From/(Used in) Financing Activities | 3,510 | (5,733) | | Net Decrease in Cash and Cash Equivalents | (7,828) | (7,828) | | Cash and Cash Equivalents at Beginning of Period | 17,763 | 14,489 | | Effect of Exchange Rate Changes | 1,630 | 932 | | Cash and Cash Equivalents at End of Period | 11,565 | 7,593 | [Notes to the Unaudited Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the condensed consolidated financial statements. [1. General Information and Basis of Preparation](index=10&type=section&id=1.%20General%20Information%20and%20Basis%20of%20Preparation) The company, incorporated in Cayman Islands and listed in Hong Kong, primarily manufactures and sells optical fiber and cables in Hong Kong and Thailand. - The company was incorporated in the Cayman Islands on September 6, 2016, and successfully transferred its listing from GEM to the Main Board on November 5, 2020[18](index=18&type=chunk) - The Group's principal activities are the manufacture and sale of optical fiber and optical cables in Hong Kong and Thailand, respectively[18](index=18&type=chunk) - The consolidated financial results are presented in Hong Kong dollars and prepared in accordance with Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of the Listing Rules of the Stock Exchange[18](index=18&type=chunk) [2. Significant Accounting Policies](index=10&type=section&id=2.%20Significant%20Accounting%20Policies) The condensed consolidated financial statements are prepared under the historical cost convention, with no significant changes from prior year policies. - The condensed consolidated financial statements have been prepared under the historical cost convention[19](index=19&type=chunk) - The adoption of new and revised Hong Kong Financial Reporting Standards has not resulted in significant changes to the Group's accounting policies or the amounts reported for the current and prior periods[19](index=19&type=chunk) [3. Revenue and Segment Information](index=11&type=section&id=3.%20Revenue%20and%20Segment%20Information) Revenue is primarily from optical cable and fiber sales, with optical cable sales contributing HK$37.441 million and Thailand being the largest segment. Disaggregation of Revenue from Contracts with Customers (For the six months ended June 30, 2025) | Type of Goods | HK$ thousand | | :--- | :--- | | Optical Cables | 37,441 | | Optical Fibers | 1,305 | | **Total** | **38,746** | - Revenue is recognized when control of the goods is transferred to the customer, which is typically upon delivery of the goods to the customer's designated location[28](index=28&type=chunk) Segment Revenue and Results (For the six months ended June 30) | Segment | External Sales (HK$ thousand) | Inter-segment Sales (HK$ thousand) | Segment Revenue (HK$ thousand) | Segment Loss (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | | Optical Cables, Optical Cable Cores and Other Related Products (Thailand) | 37,441 | – | 37,441 | (3,887) | | Optical Fibers (Hong Kong) | 1,305 | 2,330 | 3,635 | (6,204) | | **Total** | **38,746** | **2,330** | **41,076** | **(10,091)** | [4. Other Income, Gains and Losses](index=16&type=section&id=4.%20Other%20Income%2C%20Gains%20and%20Losses) Other income for the period was HK$0.232 million, while other gains and losses amounted to HK$1.999 million, mainly from net foreign exchange gains. Other Income, Gains and Losses (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | **Other Income:** | | | | Scrap Sales Income | 55 | 105 | | Bank Interest Income | 11 | 15 | | Others | 166 | 96 | | **Subtotal** | **232** | **216** | | **Other Gains and Losses:** | | | | Net Foreign Exchange Gains/(Losses) | 1,897 | (1,862) | | Gain on Disposal of Property, Plant and Equipment | 102 | – | | **Subtotal** | **1,999** | **(1,862)** | [5. Finance Costs](index=16&type=section&id=5.%20Finance%20Costs) Finance costs for the period were HK$0.445 million, primarily bank loan interest, showing a decrease from the previous year. Finance Costs (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Interest on Bank Borrowings | 445 | 810 | [6. Loss Before Tax](index=17&type=section&id=6.%20Loss%20Before%20Tax) Loss before tax for the period was HK$13.070 million, with major expenses including staff costs, inventory costs, and depreciation. Loss Before Tax Items (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Auditor's Remuneration | 596 | 615 | | Depreciation of Property, Plant and Equipment (Net) | 474 | 428 | | Directors' Remuneration | 1,844 | 1,786 | | Other Staff Costs (Net) | 6,204 | 6,256 | | Cost of Inventories Recognized as Expense | 33,937 | 75,610 | | Provision for Inventories | 3,010 | 1,917 | | Write-off of Inventories | 400 | – | | Expenses Related to Short-Term Leases | 4,074 | 4,833 | | Reversal of Impairment Loss on Trade Receivables | (2,448) | (2,233) | | Write-off of Bad Debts | 102 | – | | Gain on Disposal of Property, Plant and Equipment | (102) | – | [7. Income Tax Credit](index=18&type=section&id=7.%20Income%20Tax%20Credit) Income tax credit for the period was HK$0.426 million, influenced by Thailand corporate income tax and deferred tax, with Futong Thailand enjoying tax incentives. Income Tax Credit (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Hong Kong Profits Tax (Current Tax) | – | – | | Thailand Corporate Income Tax (Current Tax) | 441 | (935) | | Thailand Withholding Tax | 54 | 55 | | Deferred Tax | (921) | 392 | | **Total** | **(426)** | **(488)** | - Futong Thailand has been granted tax incentives by the Thailand Board of Investment, including an eight-year corporate income tax exemption period (up to March 25, 2021) and a 50% reduction period (from March 26, 2021, to March 25, 2026)[36](index=36&type=chunk) [8. Dividends](index=19&type=section&id=8.%20Dividends) No dividends were paid, declared, or proposed by the company during the interim period. - The company did not pay, declare, or propose any dividends during the interim period[37](index=37&type=chunk) [9. Loss Per Share](index=19&type=section&id=9.%20Loss%20Per%20Share) Basic loss per share was 4.9 HK cents, calculated based on a loss of HK$12.644 million and 260 million weighted average ordinary shares. Loss Per Share (For the six months ended June 30) | Indicator | 2025 (HK$ thousand/thousand shares) | 2024 (HK$ thousand/thousand shares) | | :--- | :--- | :--- | | Loss Attributable to Owners | (12,644) | (13,680) | | Weighted Average Number of Ordinary Shares | 260,000 | 260,000 | | Basic Loss Per Share (HK cents) | (4.9) | (5.3) | - Diluted loss per share is not presented as no potential ordinary shares were issued during these two periods[39](index=39&type=chunk) [10. Movements in Property, Plant and Equipment](index=19&type=section&id=10.%20Movements%20in%20Property%2C%20Plant%20and%20Equipment) The group purchased machinery, furniture, motor vehicles, and construction in progress totaling HK$2.58 million during the period. Property, Plant and Equipment Purchases (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Machinery | 229 | 0 | | Furniture and Fixtures | 3 | 3 | | Motor Vehicles | 155 | 0 | | Construction in Progress | 2,193 | 1,201 | [11. Deposits, Prepayments and Other Receivables](index=20&type=section&id=11.%20Deposits%2C%20Prepayments%20and%20Other%20Receivables) Non-current deposits, prepayments, and other receivables were HK$4.027 million, while current portion was HK$62.358 million, mainly for raw material purchases. Deposits, Prepayments and Other Receivables (HK$ thousand) | Item | 2025 June 30 | 2024 Dec 31 | | :--- | :--- | :--- | | **Non-Current Portion** | | | | Prepayments | – | 30,392 | | Deposits for Purchase of Property, Plant and Equipment | 10,010 | 9,702 | | Other Deposits | 23 | 30 | | Less: Loss Allowance | (6,006) | (36,213) | | **Subtotal** | **4,027** | **3,911** | | **Current Portion** | | | | Electricity Deposits | 783 | 783 | | Other Deposits | 65 | 65 | | Deposits for Purchase of Raw Materials | 172,743 | 143,333 | | Prepayments | 10,966 | 8,696 | | Other Receivables | 6,336 | 3,530 | | Other Tax Receivables | 1,141 | 708 | | Less: Loss Allowance | (129,676) | (94,635) | | **Subtotal** | **62,358** | **62,480** | - As of June 30, 2025, prepayments of approximately HK$48.507 million (net of impairment loss of HK$124.236 million) included advances made to a supplier for the purchase of raw materials[41](index=41&type=chunk) [12. Inventories](index=21&type=section&id=12.%20Inventories) Total inventories were HK$38.705 million, with a net value of HK$34.725 million after a provision for inventory write-down, primarily raw materials. Inventories (HK$ thousand) | Item | 2025 June 30 | 2024 Dec 31 | | :--- | :--- | :--- | | Raw Materials and Consumables | 21,491 | 23,741 | | Work in Progress | 6,408 | 7,564 | | Finished Goods | 9,997 | 10,262 | | Goods in Transit | 809 | 1,674 | | **Total** | **38,705** | **43,241** | | Less: Provision for Inventories | (3,980) | (8,172) | | **Net Value** | **34,725** | **35,069** | [13. Trade Receivables](index=21&type=section&id=13.%20Trade%20Receivables) Net trade receivables were HK$33.846 million after a loss allowance of HK$138.896 million, with credit terms generally ranging from 14 to 360 days. Trade Receivables (HK$ thousand) | Item | 2025 June 30 | 2024 Dec 31 | | :--- | :--- | :--- | | Trade Receivables | 172,742 | 171,857 | | Less: Loss Allowance | (138,896) | (136,809) | | **Net Value** | **33,846** | **35,048** | - Credit terms generally range from 14 to 360 days from the invoice date[43](index=43&type=chunk) Aging Analysis of Trade Receivables (HK$ thousand) | Aging | 2025 June 30 | 2024 Dec 31 | | :--- | :--- | :--- | | 0 to 180 days | 27,106 | 34,607 | | 181 to 270 days | 1,952 | – | | 271 to 365 days | 4,788 | – | | Over 365 days | – | 441 | | **Total** | **33,846** | **35,048** | [14. Trade Payables](index=22&type=section&id=14.%20Trade%20Payables) Trade payables increased slightly to HK$10.474 million, with supplier credit terms typically between 30 and 180 days, primarily denominated in RMB, THB, and USD. Trade Payables (HK$ thousand) | Item | 2025 June 30 | 2024 Dec 31 | | :--- | :--- | :--- | | Trade Payables | 10,474 | 10,253 | - The credit period granted by suppliers to the Group generally ranges from 30 to 180 days[47](index=47&type=chunk) Aging Analysis of Trade Payables (HK$ thousand) | Aging | 2025 June 30 | 2024 Dec 31 | | :--- | :--- | :--- | | 0 to 30 days | 7,882 | 4,942 | | 31 to 60 days | 777 | 2,049 | | 61 to 90 days | 23 | 1,853 | | 91 to 180 days | 1,345 | 1,243 | | Over 180 days | 447 | 166 | | **Total** | **10,474** | **10,253** | [15. Other Payables and Accruals](index=24&type=section&id=15.%20Other%20Payables%20and%20Accruals) Total other payables and accruals were HK$3.838 million, comprising HK$2.920 million in accruals and HK$0.918 million in other payables. Other Payables and Accruals (HK$ thousand) | Item | 2025 June 30 | 2024 Dec 31 | | :--- | :--- | :--- | | Accruals | 2,920 | 3,187 | | Other Payables | 918 | 238 | | **Total** | **3,838** | **3,425** | [16. Contract Liabilities](index=24&type=section&id=16.%20Contract%20Liabilities) Contract liabilities significantly increased to HK$0.486 million, mainly due to short-term advances received from customers for optical cable sales. Contract Liabilities (HK$ thousand) | Item | 2025 June 30 | 2024 Dec 31 | | :--- | :--- | :--- | | Short-term Advances Received from Customers - Sales of Optical Cables | 486 | 14 | Movement in Contract Liabilities (HK$ thousand) | Item | 2025 June 30 | 2024 Dec 31 | | :--- | :--- | :--- | | Balance at January 1 | 14 | 542 | | Decrease in Contract Liabilities due to Revenue Recognized in the Year that was Included in the Contract Liabilities at the Beginning of the Year | (5) | (520) | | Increase in Contract Liabilities due to Advances Received from Customers | 461 | 4 | | Exchange Adjustments | 16 | (12) | | **Balance at June 30/December 31** | **486** | **14** | [17. Bank and Other Borrowings](index=25&type=section&id=17.%20Bank%20and%20Other%20Borrowings) Total bank borrowings were HK$30.875 million, all unsecured, floating-rate, repayable within one year, and denominated in Thai Baht. Bank and Other Borrowings (HK$ thousand) | Item | 2025 June 30 | 2024 Dec 31 | | :--- | :--- | :--- | | Bank Borrowings - Unsecured | 30,875 | 25,300 | | Effective Interest Rate | 4% | 5% | | By Maturity: Within One Year or on Demand | 30,875 | 25,300 | | Denominated in Thai Baht | 30,875 | 25,300 | [18. Deferred Taxation](index=26&type=section&id=18.%20Deferred%20Taxation) Total deferred tax assets were HK$15.741 million, primarily from expected credit loss provisions and tax losses, partially offset by accelerated tax depreciation. Movement in Deferred Tax Assets and (Liabilities) (HK$ thousand) | Item | 2025 June 30 | 2025 Jan 1 | | :--- | :--- | :--- | | Tax Losses | 2,030 | 1,076 | | Long Service Payments | 50 | 83 | | Expected Credit Loss Provision | 14,615 | 13,765 | | Accelerated Tax Depreciation | (954) | (129) | | Impairment of Long-Term Prepayments | – | – | | **Total** | **15,741** | **14,795** | [19. Provisions](index=27&type=section&id=19.%20Provisions) Long service payment provision decreased to HK$0.506 million due to a reversal of HK$0.364 million during the period. Long Service Payment Provision (HK$ thousand) | Item | Amount | | :--- | :--- | | At December 31, 2024 and January 1, 2025 | 833 | | Amount Reversed During the Period | (364) | | Exchange Adjustments | 37 | | **At June 30, 2025** | **506** | - The Group makes provisions for expected future long service payments to employees in accordance with the Thailand Employment Act[54](index=54&type=chunk) [20. Share Capital](index=27&type=section&id=20.%20Share%20Capital) The company's authorized share capital is HK$10 million (1 billion ordinary shares), with issued and fully paid share capital of HK$2.6 million (260 million ordinary shares). Share Capital (HK$ thousand) | Item | Number of Shares | HK$ thousand | | :--- | :--- | :--- | | Authorized Share Capital (Ordinary Shares of HK$0.01 each) | 1,000,000,000 | 10,000 | | Issued and Fully Paid Share Capital (Ordinary Shares of HK$0.01 each) | 260,000,000 | 2,600 | [21. Related Party Transactions](index=28&type=section&id=21.%20Related%20Party%20Transactions) Related party transactions include short-term lease expenses of HK$3.9 million with Futong Group International Limited and key management personnel compensation of HK$1.844 million. Related Party Transactions (For the six months ended June 30) | Related Party | Type of Transaction | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | :--- | | Futong Group International Limited | Rental expenses for short-term leases of plant and office premises | 3,900 | 4,500 | Balances with Related Parties (As of June 30) | Related Party | Type of Balance | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | :--- | | Futong Group International Limited | Other Payables | 650 | – | Key Management Personnel Compensation (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Short-term Benefits | 1,825 | 1,767 | | Post-employment Benefits | 19 | 19 | | **Total** | **1,844** | **1,786** | [22. Contingent Liabilities](index=29&type=section&id=22.%20Contingent%20Liabilities) The group had no significant contingent liabilities as of June 30, 2025. - As of June 30, 2025, the Group had no significant contingent liabilities[62](index=62&type=chunk) [23. Approval of Financial Statements](index=29&type=section&id=23.%20Approval%20of%20Financial%20Statements) The interim financial statements were approved and authorized for issue by the Board of Directors on August 27, 2025. - The interim financial statements were approved and authorized for issue by the Board of Directors on August 27, 2025[63](index=63&type=chunk) [Management Discussion and Analysis](index=30&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the company's operational and financial performance, market outlook, and risk management strategies. [Business Review](index=30&type=section&id=Business%20Review) In H1 2025, the group faced severe geopolitical volatility and economic slowdown, leading to a 46.9% revenue decrease to HK$38.7 million, but a reduced loss attributable to owners. Business Review Key Financial Data (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 38,700 | 72,900 | -46.9% | | Gross Loss | (5,700) | (2,800) | +103.6% | | Loss Attributable to Owners | (12,600) | (13,700) | -8.0% | | Optical Cable Sales | 37,400 | 69,200 | -46.0% | | Optical Fiber Sales | 1,300 | 3,600 | -63.9% | - The Chinese communication industry faces dual pressures of shrinking demand and intensifying competition, with operational challenges and uncertainties persisting for optical fiber and cable companies[66](index=66&type=chunk) [Futong Thailand](index=30&type=section&id=Futong%20Thailand) Futong Thailand's performance was weak due to soft Thai and ASEAN markets, with optical cable sales revenue dropping 46.0% and gross margin falling to 3.0%. - The current markets in Thailand and other ASEAN countries remain weak, leading to an overall poorer performance by Futong Thailand[67](index=67&type=chunk) Futong Thailand Sales Revenue (For the six months ended June 30) | Region | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Thailand Optical Cable Sales Revenue | 37,400 | 69,200 | -46.0% | | Sales to Other Countries | 6,800 | 29,300 | -76.8% | | Of which, Sales to Germany | 5,600 | 23,100 | -75.7% | Futong Thailand Gross Margin (For the six months ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Gross Margin | 3.0% | 9.2% | [High-Tech Bridge](index=31&type=section&id=High-Tech%20Bridge) High-Tech Bridge's performance was severely impacted by low optical fiber prices and oversupply, leading to frequent production line shutdowns and significant declines in revenue and net loss. - High-Tech Bridge's performance was severely affected by lower optical fiber selling prices for the first six months ended June 30, 2025[70](index=70&type=chunk) - Production lines were frequently shut down during the reporting period, and all products were sold internally to Futong Thailand[70](index=70&type=chunk) High-Tech Bridge Revenue and Net Loss (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 2,300 | 9,900 | -76.8% | | Net Loss | (6,500) | (14,200) | -54.2% | [Prospects](index=31&type=section&id=Prospects) The group anticipates growth opportunities in China's communication sector and global digitalization, while High-Tech Bridge plans to suspend fiber drawing production and start butterfly optical cable production. - Driven by factors such as 5G infrastructure construction, broadband network coverage, and increased demand from the power industry, the upward trend of the digital economy is expected to lead to a steady increase in market demand for China's optical fiber and cable industry[71](index=71&type=chunk) - With the acceleration of global digitalization, countries are continuously strengthening investment in communication network infrastructure, and the global market demand for optical fiber and cable is expected to grow significantly by the end of 2025[73](index=73&type=chunk) - High-Tech Bridge management estimates that optical fiber prices will continue to decline due to industry overcapacity and plans to suspend its optical fiber drawing production in the second half of 2025[73](index=73&type=chunk) - All six butterfly optical cable production lines at High-Tech Bridge have been installed and are expected to commence production in the last quarter of 2025[73](index=73&type=chunk) [Financial Review](index=33&type=section&id=Financial%20Review) This section provides a detailed analysis of the company's financial performance, including revenue, costs, and profit/loss drivers. [Revenue](index=33&type=section&id=Revenue) Total revenue decreased by 46.9% to HK$38.7 million, primarily due to reduced demand for optical cables and fibers. Total Revenue (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 38,700 | 72,900 | -46.9% | - The decrease in revenue was primarily due to a decline in market demand for optical cables and optical fibers[76](index=76&type=chunk) [Cost of Sales and Gross Profit](index=33&type=section&id=Cost%20of%20Sales%20and%20Gross%20Profit) Cost of sales decreased by 41.1% to HK$44.5 million, but gross loss increased by 103.6% to HK$5.7 million, with gross loss margin rising to 14.8%. Cost of Sales and Gross Profit (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Cost of Sales | 44,500 | 75,600 | -41.1% | | Gross Loss | (5,700) | (2,800) | +103.6% | | Gross Loss Margin | 14.8% | 3.8% | +11.0% | - The decrease in cost of sales was primarily due to a decrease in the production volume and unit cost of optical cables for the six months ended June 30, 2025[77](index=77&type=chunk) - The increase in gross loss margin was mainly due to a decrease of approximately **10.5%** in optical fiber gross loss margin and a decrease of approximately **5.6%** in optical cable gross margin compared to the corresponding period in 2024[77](index=77&type=chunk) [Trade Receivables Loss Allowance](index=33&type=section&id=Trade%20Receivables%20Loss%20Allowance) Trade receivables loss allowance decreased by 1.1% to HK$138.9 million in H1 2025. Trade Receivables Loss Allowance (HK$ thousand) | Indicator | 2025 H1 | 2024 H1 | Change (%) | | :--- | :--- | :--- | :--- | | Loss Allowance | 138,900 | 140,400 | -1.1% | [Other Income, Gains and Losses](index=34&type=section&id=Other%20Income%2C%20Gains%20and%20Losses) The group recorded a net foreign exchange gain of HK$1.9 million in H1 2025, a reversal from a loss in H1 2024, due to currency fluctuations. Net Foreign Exchange Gains/(Losses) (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Net Foreign Exchange Gains/(Losses) | 1,900 | (1,900) | - This was primarily due to fluctuations in exchange rates between RMB, HKD, THB, and USD during the period[80](index=80&type=chunk) [Selling and Distribution Expenses](index=34&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and distribution expenses increased by 5.3% to HK$2.0 million, mainly due to higher sales commission expenses. Selling and Distribution Expenses (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Selling and Distribution Expenses | 2,000 | 1,900 | +5.3% | - The increase was mainly due to the net effect of increased sales commission expenses and decreased export costs resulting from reduced sales of optical fibers and cables to overseas countries[81](index=81&type=chunk) [Administrative Expenses](index=34&type=section&id=Administrative%20Expenses) Administrative expenses increased by 2.2% to HK$9.5 million, driven by higher depreciation and other expenses, partially offset by lower staff costs. Administrative Expenses (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Administrative Expenses | 9,500 | 9,300 | +2.2% | - The increase in administrative expenses was mainly due to the net effect of decreased staff costs, increased depreciation expenses for property, plant and equipment, and increased other expenses[82](index=82&type=chunk) [Finance Costs](index=35&type=section&id=Finance%20Costs) Finance costs decreased by 50.0% to HK$0.4 million, primarily due to a reduction in bank borrowings. Finance Costs (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Finance Costs | 400 | 800 | -50.0% | - This was primarily due to a decrease in bank borrowings for the six months ended June 30, 2025[83](index=83&type=chunk) [Taxation](index=35&type=section&id=Taxation) Income tax credit decreased by 20.0% to HK$0.4 million, mainly due to lower tax credit from Futong Thailand, which benefits from tax incentives. Income Tax Credit (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Income Tax Credit | 400 | 500 | -20.0% | - The decrease in income tax credit was primarily due to a decrease in Futong Thailand's tax credit recorded during the reporting period[84](index=84&type=chunk) - Futong Thailand has been granted tax incentives by the Thailand Board of Investment for the production of cables, including corporate income tax exemption and a 50% reduction[84](index=84&type=chunk) [Loss for the Period](index=35&type=section&id=Loss%20for%20the%20Period) Loss attributable to owners decreased by 8.0% to HK$12.6 million, driven by increased foreign exchange gains and reduced finance costs, partially offset by higher gross loss and inventory provisions. Loss Attributable to Owners (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Loss | (12,600) | (13,700) | -8.0% | - The decrease in loss was primarily due to the net effect of increased foreign exchange gains, decreased finance costs, and increased reversal of impairment loss on trade receivables, partially offset by increased gross loss and increased provision for inventories[85](index=85&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=36&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital%20Structure) The group's liquidity is managed through operating cash and bank borrowings, with cash and equivalents at HK$11.6 million and a debt ratio of 8.7%. Liquidity and Borrowings (HK$ thousand) | Indicator | 2025 June 30 | 2024 Dec 31 | | :--- | :--- | :--- | | Cash and Cash Equivalents | 11,600 | 17,800 | | Total Bank and Other Borrowings | 30,900 | 25,300 | Debt Ratio | Indicator | 2025 June 30 | 2024 Dec 31 | | :--- | :--- | :--- | | Debt Ratio | 8.7% | 7.1% | - The Group's capital structure has remained unchanged from the date of its listing to the date of this report, with capital comprising only ordinary shares[89](index=89&type=chunk) - The Group has adopted a prudent financial management approach for its treasury policy to manage liquidity risk[90](index=90&type=chunk) [Contingent Liabilities and Litigation](index=36&type=section&id=Contingent%20Liabilities%20and%20Litigation) The group had no significant contingent liabilities or litigation as of June 30, 2025. - As of June 30, 2025, the Group had no significant contingent liabilities or litigation[91](index=91&type=chunk) [Environmental Policies and Performance](index=37&type=section&id=Environmental%20Policies%20and%20Performance) The group is committed to reducing environmental impact and complying with regulations through pollution reduction and efficient resource utilization. - The Group is committed to reducing the environmental impact of its factories and offices through minimizing pollution and efficient resource utilization[92](index=92&type=chunk) - The Group strives to comply with relevant environmental laws and regulations and continuously improve its performance[92](index=92&type=chunk) [Key Relationships with Employees, Customers and Suppliers](index=37&type=section&id=Key%20Relationships%20with%20Employees%2C%20Customers%20and%20Suppliers) The group strives to maintain good relationships with employees, customers, and suppliers by fostering a positive workplace, delivering quality products, and building long-term partnerships. - The Group strives to maintain good relationships with its employees, customers, and suppliers[93](index=93&type=chunk) [Pledge of Assets](index=37&type=section&id=Pledge%20of%20Assets) Futong Thailand pledged land and buildings in Rayong, Thailand, as collateral for a HK$68.19 million bank credit facility, with no other significant asset pledges. - Futong Thailand has pledged a piece of land measuring 58,149 square meters and buildings thereon located in Rayong, Thailand, as collateral for bank borrowings with a credit limit of 300 million Thai Baht (approximately HK$68.19 million)[94](index=94&type=chunk) - Save as disclosed above, the Group has not pledged any of its other land, buildings, and machinery[94](index=94&type=chunk) [Foreign Exchange Risk](index=37&type=section&id=Foreign%20Exchange%20Risk) The group faces foreign exchange risk from USD, RMB against THB, and RMB against HKD fluctuations, with a depreciation of THB or RMB potentially impacting operating results. - The Group's foreign exchange risk primarily arises from fluctuations in exchange rates between USD and RMB against THB, and RMB against HKD[95](index=95&type=chunk) - If the Thai Baht depreciates, the Group's revenue generated in Thailand, when translated into the reporting currency, would decrease, adversely affecting operating results[95](index=95&type=chunk) - The Group has established a foreign exchange risk management policy to monitor foreign exchange risk[95](index=95&type=chunk) [Interest Rate Risk](index=38&type=section&id=Interest%20Rate%20Risk) The group is exposed to fair value interest rate risk from fixed-rate instruments and cash flow interest rate risk from floating-rate financial assets, managing it without derivatives. - The Group's fair value interest rate risk primarily relates to its fixed-rate bank deposits, lease liabilities, and bank borrowings[97](index=97&type=chunk) - The Group is also exposed to cash flow interest rate risk due to the impact of interest rate changes on its floating-rate financial assets[97](index=97&type=chunk) - The Group currently does not use any derivative contracts to hedge its interest rate risk and maintains a balanced portfolio of fixed-rate and floating-rate borrowings[97](index=97&type=chunk) [Credit Risk](index=38&type=section&id=Credit%20Risk) Credit risk primarily arises from trade and other receivables, managed through credit limits, monitoring overdue balances, and impairment assessments. - The Group's credit risk primarily arises from trade receivables from customer contracts and other receivables[98](index=98&type=chunk) - To mitigate credit risk, senior management is responsible for setting credit limits and monitoring procedures, and regularly reviewing and following up on overdue balances[98](index=98&type=chunk) - The Group's management assesses the credit risk of bank deposits and bank balances as low, as they are placed with reputable banks with high internal credit ratings[98](index=98&type=chunk) [Liquidity Risk](index=38&type=section&id=Liquidity%20Risk) The group manages liquidity risk by regularly monitoring cash flow and maintaining available committed credit facilities. - The Group's management regularly monitors the Group's cash flow position to ensure strict control over its cash flows[99](index=99&type=chunk) - The Group aims to maintain funding flexibility by keeping committed credit facilities available[99](index=99&type=chunk) [Capital Commitments](index=38&type=section&id=Capital%20Commitments) The group had no capital commitments as of June 30, 2025. - As of June 30, 2025, the Group had no capital commitments[100](index=100&type=chunk) [Material Investments Held](index=39&type=section&id=Material%20Investments%20Held) The group held no material equity investments in any other companies during the reporting period. - During the reporting period, the Group held no material equity investments in any other companies[101](index=101&type=chunk) [Employees and Remuneration Policy](index=39&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the group had 157 employees with total staff costs of HK$11.1 million, offering competitive remuneration and training based on performance. Employee and Remuneration Data | Indicator | 2025 June 30 | 2024 Dec 31 | | :--- | :--- | :--- | | Number of Employees (including Directors) | 157 | 173 | | Total Staff Costs (For the six months ended June 30) | HK$11.1 million | HK$11.7 million | - The Group recruits and promotes individuals based on their performance and development potential in their respective positions[102](index=102&type=chunk) [Other Information](index=40&type=section&id=Other%20Information) This section provides additional disclosures on future plans, significant transactions, director and shareholder interests, and corporate governance. [Future Plans for Material Investments and Capital Assets](index=40&type=section&id=Future%20Plans%20for%20Material%20Investments%20and%20Capital%20Assets) The group has no plans for any material investments or capital assets. - The Group has no plans for any material investments or capital assets[104](index=104&type=chunk) [Material Acquisitions and Disposals of Subsidiaries or Affiliated Companies](index=40&type=section&id=Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%20or%20Affiliated%20Companies) The group had no material acquisitions or disposals of subsidiaries or affiliates, nor held any material investments during the six months ended June 30, 2025. - For the six months ended June 30, 2025, the Group had no material acquisitions or disposals of subsidiaries or affiliated companies[105](index=105&type=chunk) - For the six months ended June 30, 2025, the Group held no material investments[105](index=105&type=chunk) [Disclosure of Interests of Directors and Substantial Shareholders](index=40&type=section&id=Disclosure%20of%20Interests%20of%20Directors%20and%20Substantial%20Shareholders) This section details the interests and short positions of directors and substantial shareholders in the company's shares and related corporations. [Interests and Short Positions of Directors and Chief Executive in Shares, Underlying Shares and Debentures of the Company or any Associated Corporation](index=40&type=section&id=Interests%20and%20Short%20Positions%20of%20Directors%20and%20Chief%20Executive%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20or%20any%20Associated%20Corporation) As of June 30, 2025, no directors or chief executives held any disclosable interests or short positions in the company's shares or related corporations. - No directors or chief executives of the company held any interests or short positions in the shares, underlying shares, or debentures of the company or any associated corporation that are required to be notified to the company and the Stock Exchange under Divisions 7 and 8 of Part XV of the Securities and Futures Ordinance[106](index=106&type=chunk) [Interests of Substantial Shareholders in Shares or Underlying Shares of the Company](index=41&type=section&id=Interests%20of%20Substantial%20Shareholders%20in%20Shares%20or%20Underlying%20Shares%20of%20the%20Company) As of June 30, 2025, Mr. Wang Jianyi and related entities were deemed to have a 75% long position in 195 million shares of the company. Interests of Substantial Shareholders in Shares or Underlying Shares of the Company | Shareholder Name/Name | Nature of Interest | Number of Shares Held (L) | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Wang Jianyi | Interest in controlled corporation | 195,000,000 | 75% | | Futong Investment | Interest in controlled corporation | 195,000,000 | 75% | | Futong China | Interest in controlled corporation | 195,000,000 | 75% | | Hangzhou Futong Optic-Communication Investment Co., Ltd. | Interest in controlled corporation | 195,000,000 | 75% | | Futong Hong Kong | Beneficial interest | 195,000,000 | 75% | - The company is directly 75% owned by Futong Hong Kong, which is wholly owned by Futong Optic-Communication, which is wholly owned by Futong China, of which Futong Investment holds 80% equity interest, and Futong Investment is wholly owned by Mr. Wang[110](index=110&type=chunk)[116](index=116&type=chunk) [Dividends](index=42&type=section&id=Dividends) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025. - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[113](index=113&type=chunk) [Share Option Scheme](index=42&type=section&id=Share%20Option%20Scheme) The company does not have a share option scheme. - The company does not have a share option scheme[114](index=114&type=chunk) [Directors' Rights to Acquire Shares](index=42&type=section&id=Directors'%20Rights%20to%20Acquire%20Shares) No rights to acquire shares or debentures of the company were granted to any director or their associates during the period. - No rights to acquire shares or debentures of the company were granted to any director or their respective spouses or children under 18 years of age[115](index=115&type=chunk) [Public Float](index=43&type=section&id=Public%20Float) The company maintained the minimum 25% public float as required by the Listing Rules throughout the period. - The company has maintained the minimum 25% of its issued shares held by public shareholders as stipulated by the Listing Rules[117](index=117&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=43&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) Neither the company nor its subsidiaries purchased, sold, or redeemed any of its listed securities during the six months ended June 30, 2025. - For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's securities[118](index=118&type=chunk) [Compliance with Model Code for Securities Transactions by Directors](index=43&type=section&id=Compliance%20with%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors) All directors confirmed compliance with the Model Code for Securities Transactions by Directors throughout the period. - The company has confirmed that all directors have complied with the Model Code for Securities Transactions by Directors for the six months ended June 30, 2025, and up to the date of this report[119](index=119&type=chunk) [Competing Interests](index=43&type=section&id=Competing%20Interests) As of June 30, 2025, no directors, controlling shareholders, or their associates had any competing interests with the group's business. - As of June 30, 2025, no directors, controlling shareholders of the company, or their respective close associates had any interests in businesses that directly or indirectly compete or may compete with the Group's business[120](index=120&type=chunk) [Audit Committee](index=43&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors, reviewed the interim financial results and oversees financial reporting, risk management, and internal controls. - The Audit Committee comprises three independent non-executive directors: Mr. Liang Zhaokun (Chairman), Mr. Liu Shaoheng, and Mr. Li Wei[121](index=121&type=chunk) - The primary responsibilities of the Audit Committee are to assist the Board in reviewing financial information, overseeing the financial reporting system, risk management, internal control systems, and the relationship with external auditors[123](index=123&type=chunk) - The Audit Committee has reviewed the unaudited condensed consolidated interim results of the Group for the six months ended June 30, 2025[123](index=123&type=chunk) [Corporate Governance Practices and Other Information](index=44&type=section&id=Corporate%20Governance%20Practices%20and%20Other%20Information) The company adopted and complied with the Corporate Governance Code, aiming to maintain high standards for effective management, transparency, and shareholder protection. - The company has adopted the Corporate Governance Code as its own code of corporate governance practices and has complied with it for the six months ended June 30, 2025[124](index=124&type=chunk) - The company is committed to maintaining a high level of corporate governance, believing that good corporate governance enhances management effectiveness and efficiency, increases the company's transparency, improves its risk management and internal control, and protects the interests of the company's shareholders and the company as a whole[124](index=124&type=chunk) [Events After Reporting Period](index=44&type=section&id=Events%20After%20Reporting%20Period) High-Tech Bridge renewed its property lease agreement with Futong Group International Limited for one year, effective July 1, 2025, with no other significant post-period events. - High-Tech Bridge renewed its property lease agreement with Futong Group International Limited for a period of one year, effective from July 1, 2025[125](index=125&type=chunk) - Save as disclosed above, no other significant events requiring disclosure occurred after June 30, 2025, and up to the date of approval of this report[125](index=125&type=chunk) [Compliance with Laws and Regulations](index=45&type=section&id=Compliance%20with%20Laws%20and%20Regulations) The group was not aware of any material non-compliance with relevant laws and regulations during the six months ended June 30, 2025. - For the six months ended June 30, 2025, the Group was not aware of any material non-compliance with any relevant laws and regulations that would have a significant impact on it[126](index=126&type=chunk) [Publication of Interim Report](index=45&type=section&id=Publication%20of%20Interim%20Report) The interim report is published on the websites of HKEX and the company. - This interim report is published on the website of Hong Kong Exchanges and Clearing Limited (www.hkexnews.com.hk) and the company's website (www.transtechoptel.com)[127](index=127&type=chunk)

Core Viewpoint - The company, Gaoke Bridge (09963), anticipates a consolidated net loss ranging from approximately HKD 12 million to HKD 13 million for the six-month period ending June 30, 2025, compared to a consolidated net loss of about HKD 13.7 million for the six-month period ending June 30, 2024 [1] Group 1 - The expected consolidated net loss is primarily attributed to a decrease in sales revenue [1] - The company also notes an increase in exchange gains due to fluctuations in the exchange rates of the Renminbi, Thai Baht, US Dollar, and Hong Kong Dollar [1]