[Company Information](index=3&type=section&id=Company%20Information) This section provides essential corporate details, including board composition, company registration, auditor information, and shareholder dividend schedule [Board of Directors and Committees](index=3&type=section&id=Board%20of%20Directors%20and%20Committees) The company's board comprises executive, non-executive, and independent non-executive directors, supported by audit, remuneration, and nomination committees to ensure robust corporate governance - Board members include Executive Directors Ms. Bai Tao (Chairperson) and Mr. Kuang Hu (Managing Director), as well as Non-executive Directors Mr. Wang Min and Ms. Wang Surong[7](index=7&type=chunk) - The Audit, Remuneration, and Nomination Committees are all chaired by independent non-executive directors, strengthening independent oversight[7](index=7&type=chunk) [Company Basic Information](index=3&type=section&id=Company%20Basic%20Information) The company's registered office is in Hong Kong, with KPMG as its auditor, and lists key bankers, stock code 00270, and a fiscal year-end of December 31 - The company's registered office is at Yuehai Investment Building, 148 Connaught Road Central, Hong Kong, with KPMG as its auditor[7](index=7&type=chunk)[8](index=8&type=chunk) Share and Fiscal Year Information | Metric | Details | | :--- | :--- | | Stock Code | 00270 | | Trading Lot | 2,000 shares | | Fiscal Year End | December 31 | | Listing Place | Main Board of The Stock Exchange of Hong Kong Limited | [Shareholder Timetable and Dividends](index=3&type=section&id=Shareholder%20Timetable%20and%20Dividends) The company declared an interim dividend of HKD 26.66 cents per ordinary share, expected around October 23, 2025, with a book close date of October 10, 2025 2025 Interim Dividend Information | Metric | Details | | :--- | :--- | | Book Close Date | October 10, 2025 | | Interim Dividend | HKD 26.66 cents per ordinary share | | Payment Date | Around October 23, 2025 | [Review Report](index=4&type=section&id=Review%20Report) This section presents the independent auditor's review report on the interim financial information [Scope of Review and Conclusion](index=4&type=section&id=Scope%20of%20Review%20and%20Conclusion) KPMG reviewed the interim financial report under Hong Kong Standard on Review Engagements 2410, finding no material matters indicating non-compliance with HKAS 34 - The scope of review is substantially less than an audit, thus no audit opinion was expressed[11](index=11&type=chunk) - The conclusion states that the interim financial report is prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting"[12](index=12&type=chunk) [Unaudited Interim Financial Report](index=4&type=section&id=Unaudited%20Interim%20Financial%20Report) This section contains the unaudited condensed consolidated interim financial statements, including income, comprehensive income, financial position, equity changes, and cash flows [Condensed Consolidated Income Statement](index=5&type=section&id=Condensed%20Consolidated%20Income%20Statement) For the six months ended June 30, 2025, profit from continuing operations increased by 7.5% year-on-year, and profit for the period grew by 11.5%, with a significant reduction in loss from discontinued operations Key Data from Condensed Consolidated Income Statement (for the six months ended June 30) | Metric | 2025 (HKD '000) | 2024 (HKD '000) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 9,428,291 | 9,486,866 | -0.6 | | Gross Profit | 5,246,448 | 5,307,492 | -1.1 | | Profit Before Tax | 4,105,084 | 3,848,913 | +6.7 | | Profit for the period from continuing operations | 2,993,281 | 2,783,807 | +7.5 | | Loss for the period from discontinued operations | (21,267) | (118,025) | -82.0 | | Profit for the period | 2,972,014 | 2,665,782 | +11.5 | | Attributable to owners of the Company | 2,681,733 | 2,410,985 | +11.2 | | Basic and diluted earnings per share | HKD 41.02 cents | HKD 36.88 cents | +11.2 | - Finance costs significantly decreased by **30.7%** from HKD **492,799 thousand** in 2024 to HKD **341,461 thousand** in 2025[14](index=14&type=chunk) [Condensed Consolidated Statement of Comprehensive Income](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, total comprehensive income significantly increased to HKD 3,826,110 thousand, primarily due to a swing from loss to gain in foreign currency translation differences Key Data from Condensed Consolidated Statement of Comprehensive Income (for the six months ended June 30) | Metric | 2025 (HKD '000) | 2024 (HKD '000) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Profit for the period | 2,972,014 | 2,665,782 | +11.5 | | Exchange differences on translation of foreign operations | 810,643 | (412,588) | Swing from loss to gain | | Total comprehensive income for the period | 3,826,110 | 2,259,527 | +69.3 | | Attributable to owners of the Company | 3,324,696 | 2,121,850 | +56.7 | - The aggregate exchange differences on translation of foreign operations for subsidiaries and associates swung from a loss of HKD **412,588 thousand** in 2024 to a gain of HKD **810,643 thousand** in 2025, driving the increase in total comprehensive income[16](index=16&type=chunk) [Condensed Consolidated Statement of Financial Position](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets significantly decreased due to the distribution of Yuehai Land, but equity attributable to owners of the Company increased, and net current liabilities decreased Key Data from Condensed Consolidated Statement of Financial Position (as of June 30) | Metric | 2025 (HKD '000) | December 31, 2024 (HKD '000) | Change (%) | | :--- | :--- | :--- | :--- | | Total non-current assets | 75,799,887 | 74,846,936 | +1.3 | | Total current assets | 21,297,597 | 60,748,467 | -65.0 (primarily due to Yuehai Land distribution) | | Total current liabilities | (17,992,857) | (55,737,907) | -67.7 (primarily due to Yuehai Land distribution) | | Net current assets | 3,304,740 | 5,010,560 | -34.1 | | Net assets | 55,849,970 | 56,675,473 | -1.4 | | Equity attributable to owners of the Company | 42,177,713 | 41,658,024 | +1.2 | - Total assets decreased from HKD **135,595,403 thousand** as of December 31, 2024, to HKD **97,097,484 thousand** as of June 30, 2025, primarily due to the distribution of Yuehai Land Holdings Limited[18](index=18&type=chunk)[87](index=87&type=chunk) - Trade and other receivables, prepayments, and other receivables increased by **20.9%** from HKD **5,578,979 thousand** as of December 31, 2024, to HKD **6,749,709 thousand** as of June 30, 2025[17](index=17&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=10&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, total equity increased due to profit for the period and foreign currency translation gains, but was reduced by the in-specie distribution of Yuehai Land shares Key Data from Condensed Consolidated Statement of Changes in Equity (for the six months ended June 30) | Metric | 2025 (HKD '000) | 2024 (HKD '000) | | :--- | :--- | :--- | | Total equity at beginning of period | 56,675,473 | 58,029,625 | | Profit for the period | 2,972,014 | 2,665,782 | | Total other comprehensive income for the period | 854,096 | (406,255) | | In-specie distribution of shares of a subsidiary | (4,155,844) | – | | Final dividend for 2024 | (475,300) | (806,113) | | Total equity at end of period | 55,849,970 | 59,267,963 | - Equity attributable to owners of the Company increased from HKD **41,658,024 thousand** at the beginning of the period to HKD **42,177,713 thousand** at the end of the period, primarily driven by profit for the period of HKD **2,681,733 thousand** and an increase in foreign exchange fluctuation reserve of HKD **599,915 thousand**, partially offset by the in-specie distribution of Yuehai Land shares of HKD **2,335,074 thousand** and a final dividend of HKD **475,300 thousand**[19](index=19&type=chunk)[87](index=87&type=chunk) [Condensed Consolidated Cash Flow Statement](index=12&type=section&id=Condensed%20Consolidated%20Cash%20Flow%20Statement) For the six months ended June 30, 2025, net cash inflow from operating activities decreased, net cash outflow from investing activities decreased, and net cash outflow from financing activities significantly increased, resulting in a net decrease in cash and cash equivalents Key Data from Condensed Consolidated Cash Flow Statement (for the six months ended June 30) | Metric | 2025 (HKD '000) | 2024 (HKD '000) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Net cash inflow from operating activities | 3,339,443 | 4,875,738 | -31.5 | | Net cash outflow from investing activities | (846,116) | (2,302,676) | -63.3 | | Net cash outflow from financing activities | (4,306,501) | (1,528,835) | +181.7 | | Net (decrease)/increase in cash and cash equivalents | (1,813,174) | 1,044,227 | Swing from increase to decrease | | Cash and cash equivalents at end of period | 11,583,087 | 12,361,739 | -6.3 | - Net cash outflow from financing activities significantly increased, primarily due to repayment of bank and other borrowings of HKD **3,857,090 thousand** and net cash outflow from in-specie distribution of HKD **2,176,240 thousand**[22](index=22&type=chunk) - Net cash inflow from operating activities decreased, partly due to reduced cash inflow from discontinued operations of Yuehai Land[111](index=111&type=chunk) [Notes to the Interim Financial Report](index=14&type=section&id=Notes%20to%20the%20Interim%20Financial%20Report) This section details the basis of preparation, changes in accounting policies, operating segment information, revenue, expenses, taxation, dividends, earnings per share, financial instruments, commitments, discontinued operations, contingent liabilities, and related party transactions [General Information and Accounting Policies](index=14&type=section&id=General%20Information%20and%20Accounting%20Policies) This interim financial report is prepared in accordance with HKAS 34, disclosing the reclassification of Yuehai Land's business as discontinued operations due to an in-specie share distribution, with comparative figures restated - On January 21, 2025, the Company distributed approximately **99.9%** of Yuehai Land shares to its shareholders, resulting in Yuehai Land's business being classified as a discontinued operation[24](index=24&type=chunk) - The interim financial report is prepared in compliance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the HKICPA and the disclosure requirements of Appendix D2 to the Listing Rules[25](index=25&type=chunk) [Changes in Accounting Policies and Disclosures](index=15&type=section&id=Changes%20in%20Accounting%20Policies%20and%20Disclosures) Revised Hong Kong Financial Reporting Standards were applied this period, but they did not materially impact the Group's financial position or performance - Revised Hong Kong Financial Reporting Standards adopted for the first time this period include amendments to HKAS 21 "The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability"[27](index=27&type=chunk) - The application of new standards had no material impact on the Group's financial position and performance for the current and prior periods[27](index=27&type=chunk) [Operating Segment Information](index=16&type=section&id=Operating%20Segment%20Information) The Group is divided into seven reportable operating segments: water resources, property investment, department store operations, power generation, hotel operation and management, roads and bridges, and "others," with varying revenue and performance, and water resources remaining the primary contributor - The Group's principal operating segments include water resources, property investment, department store operations, power generation, hotel operation and management, and roads and bridges[31](index=31&type=chunk) Revenue and Results from Continuing Operations by Segment (for the six months ended June 30) | Segment | 2025 Revenue (HKD '000) | 2024 Revenue (HKD '000) | 2025 Results (HKD '000) | 2024 Results (HKD '000) | | :--- | :--- | :--- | :--- | :--- | | Water Resources | 7,153,052 | 7,051,438 | 3,402,202 | 3,421,332 | | Property Investment | 810,718 | 778,698 | 479,589 | 425,405 | | Department Store Operations | 216,529 | 389,592 | 23,891 | (9,387) | | Power Generation | 610,859 | 629,462 | 84,580 | 77,302 | | Hotel Operation and Management | 336,393 | 315,188 | 51,438 | 60,216 | | Roads and Bridges | 300,740 | 322,488 | 221,187 | 225,158 | | Consolidated Total | 9,428,291 | 9,486,866 | 4,235,330 | 4,138,917 | - The Department Store Operations segment swung from a loss of HKD **9,387 thousand** in 2024 to a profit of HKD **23,891 thousand** in 2025, despite a significant decline in revenue[32](index=32&type=chunk) [Revenue from Continuing Operations](index=21&type=section&id=Revenue%20from%20Continuing%20Operations) The Group's total revenue from continuing operations was HKD 9,428,291 thousand, slightly lower than the prior period, primarily from water resources, followed by property investment and power generation, with a significant decrease in department store operations revenue Revenue Breakdown from Continuing Operations (for the six months ended June 30) | Type of Goods or Services | 2025 (HKD '000) | 2024 (HKD '000) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Water Resources Segment | 7,153,052 | 7,051,438 | +1.4 | | Property Investment Segment | 123,854 | 111,788 | +10.8 | | Department Store Operations Segment | 201,602 | 370,567 | -45.6 | | Power Generation Segment | 610,859 | 629,462 | -3.0 | | Hotel Operation and Management Segment | 315,621 | 292,751 | +7.8 | | Roads and Bridges Segment | 300,740 | 322,488 | -6.8 | | Finance income from service concession arrangements | 388,461 | 397,460 | -2.3 | | Rental income | 718,259 | 703,047 | +2.2 | | Total Revenue | 9,428,291 | 9,486,866 | -0.6 | - Mainland China contributed the vast majority of revenue, with HKD **8,220,783 thousand** in 2025, while the Hong Kong Hotel Operation and Management segment generated HKD **100,788 thousand** in revenue[39](index=39&type=chunk) [Finance Costs from Continuing Operations](index=24&type=section&id=Finance%20Costs%20from%20Continuing%20Operations) For the six months ended June 30, 2025, finance costs from continuing operations significantly decreased by 30.7%, primarily due to reduced interest on bank and other borrowings Finance Costs from Continuing Operations (for the six months ended June 30) | Item | 2025 (HKD '000) | 2024 (HKD '000) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Interest on bank and other borrowings | 301,503 | 411,783 | -26.8 | | Interest on loans from fellow subsidiaries | 31,726 | 50,220 | -36.8 | | Interest on loans from an associate | 3,064 | 15,319 | -80.0 | | Interest on lease liabilities | 7,426 | 14,212 | -47.8 | | Finance costs incurred | 344,353 | 492,799 | -30.1 | | Finance costs expensed for the period | 341,461 | 492,799 | -30.7 | - Interest of HKD **2,892 thousand** was capitalized during the period, compared to no capitalized interest in the prior period[40](index=40&type=chunk) [Profit Before Tax from Continuing Operations](index=25&type=section&id=Profit%20Before%20Tax%20from%20Continuing%20Operations) Profit before tax from continuing operations this period was influenced by various income and expense items, including a decrease in interest income and changes in costs of sales and services provided Items Affecting Profit Before Tax from Continuing Operations (for the six months ended June 30) | Item | 2025 (HKD '000) | 2024 (HKD '000) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Bank interest income | (43,827) | (78,996) | -44.5 | | Interest income from other financial assets measured at amortized cost | (40,587) | (6,399) | +534.2 | | Cost of sales of inventories | 642,123 | 840,182 | -23.6 | | Cost of services provided | 2,768,671 | 2,571,916 | +7.6 | | Depreciation of property, plant and equipment | 365,054 | 412,498 | -11.5 | | Amortisation of operating concessions | 771,049 | 767,276 | +0.5 | | Government grants | (40,241) | (27,807) | +44.7 | - Government grants significantly increased by **44.7%** to HKD **40,241 thousand**[41](index=41&type=chunk) [Income Tax Expense from Continuing Operations](index=26&type=section&id=Income%20Tax%20Expense%20from%20Continuing%20Operations) Income tax expense from continuing operations increased by 4.4% year-on-year this period, primarily due to charges from Mainland China and deferred tax Income Tax Expense from Continuing Operations (for the six months ended June 30) | Item | 2025 (HKD '000) | 2024 (HKD '000) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Current period – Mainland China charge | 941,866 | 944,269 | -0.3 | | Underprovision/(overprovision) in prior years | 17,003 | (7,283) | Swing from overprovision to underprovision | | Current period – Hong Kong charge | 5,216 | 7,203 | -27.6 | | Deferred tax | 147,718 | 120,917 | +22.2 | | Total tax expense for the period | 1,111,803 | 1,065,106 | +4.4 | - The corporate income tax rate in Mainland China is **25%**, and the Hong Kong profits tax rate is **16.5%**[42](index=42&type=chunk)[43](index=43&type=chunk) [Dividends](index=27&type=section&id=Dividends) The Board declared an interim dividend of HKD 26.66 cents per share for 2025, and completed an in-specie distribution of Yuehai Land shares as a special dividend this period Dividend Distribution (for the six months ended June 30) | Dividend Type | 2025 (HKD '000) | 2024 (HKD '000) | Dividend per share (2025) | | :--- | :--- | :--- | :--- | | Interim dividend | 1,742,983 | 1,567,116 | HKD 26.66 cents | | Final dividend for previous financial year | 475,300 | 806,113 | HKD 7.27 cents | - On January 21, 2025, the Company distributed **1,261,799,423** shares of Yuehai Land as a special dividend to its shareholders, representing approximately **99.9%** of the Company's holdings in Yuehai Land[46](index=46&type=chunk) [Earnings/(Loss) Per Share Attributable to Owners of the Company](index=28&type=section&id=Earnings%2F%28Loss%29%20Per%20Share%20Attributable%20to%20Owners%20of%20the%20Company) For the six months ended June 30, 2025, basic and diluted earnings per share were HKD 41.02 cents, an increase from the prior period, with no potential dilutive ordinary shares Earnings Per Share Calculation (for the six months ended June 30) | Metric | 2025 (HKD '000)/Number of shares | 2024 (HKD '000)/Number of shares | | :--- | :--- | :--- | | Profit from continuing operations | 2,698,784 | 2,473,445 | | Loss from discontinued operations | (17,051) | (62,460) | | Profit attributable to owners of ordinary equity | 2,681,733 | 2,410,985 | | Weighted average number of ordinary shares in issue | 6,537,821,440 | 6,537,821,440 | | Basic and diluted earnings per share | HKD 41.02 cents | HKD 36.88 cents | - As there were no potential dilutive ordinary shares in the current and prior periods, diluted earnings per share are the same as basic earnings per share[48](index=48&type=chunk) [Service Concession Arrangements](index=29&type=section&id=Service%20Concession%20Arrangements) Receivables from service concession arrangements primarily stem from water supply and sewage treatment businesses with Mainland Chinese government entities, with some revenue rights pledged for bank borrowings Receivables from Service Concession Arrangements (as of June 30) | Item | 2025 (HKD '000) | December 31, 2024 (HKD '000) | | :--- | :--- | :--- | | Receivables from service concession arrangements | 17,652,940 | 17,581,443 | | Non-current portion | 17,042,274 | 16,966,044 | | Current portion | 610,666 | 615,399 | - As of June 30, 2025, revenue rights from certain water supply, sewage treatment, and toll road concession arrangements were pledged to secure bank and other borrowings of HKD **12,448,775 thousand**[49](index=49&type=chunk) [Other Financial Assets Measured at Amortized Cost](index=30&type=section&id=Other%20Financial%20Assets%20Measured%20at%20Amortized%20Cost) The Group's other financial assets measured at amortized cost are deposits with various licensed banks in China, denominated in RMB, maturing within three years, and principal-protected - The principal of these financial assets is denominated in RMB, matures within three years, and is principal-protected at maturity[51](index=51&type=chunk) [Trade and Other Receivables, Prepayments and Other Receivables](index=30&type=section&id=Trade%20and%20Other%20Receivables,%20Prepayments%20and%20Other%20Receivables) Total trade and bills receivables significantly increased, with a rise in amounts overdue for over one year, exposing the company to concentrated credit risk Trade and Other Receivables, Prepayments and Other Receivables (as of June 30) | Item | 2025 (HKD '000) | December 31, 2024 (HKD '000) | Change (%) | | :--- | :--- | :--- | :--- | | Trade and bills receivables | 4,811,634 | 3,837,959 | +25.4 | | Other receivables | 1,135,558 | 987,217 | +15.0 | | Prepayments and deposits | 187,473 | 224,467 | -16.5 | | Contract assets | 816,141 | 768,414 | +6.2 | | Amounts due from fellow subsidiaries | 193,599 | 107,447 | +80.2 | | Amounts due from associates | 132,390 | 172,709 | -23.3 | | Loan to a fellow subsidiary | 548,300 | – | New | | Current portion | 6,749,709 | 5,578,979 | +20.9 | Ageing Analysis of Trade and Bills Receivables (as of June 30) | Ageing | 2025 (HKD '000) | December 31, 2024 (HKD '000) | | :--- | :--- | :--- | | Current or less than 3 months overdue | 2,967,878 | 2,282,981 | | 3 to 6 months overdue | 260,396 | 303,668 | | 6 months to 1 year overdue | 575,230 | 661,312 | | Over 1 year overdue | 1,046,110 | 627,659 | | Total (net of loss allowance) | 4,811,634 | 3,837,959 | - **10%** of the total trade and bills receivables are due from one customer, indicating concentrated credit risk[52](index=52&type=chunk) [Trade and Other Payables, Accruals and Other Liabilities and Contract Liabilities](index=31&type=section&id=Trade%20and%20Other%20Payables,%20Accruals%20and%20Other%20Liabilities%20and%20Contract%20Liabilities) Total trade and bills payables decreased, but amounts due to fellow subsidiaries significantly increased. Most payables are non-interest bearing and settled within 60 days Trade and Other Payables, Accruals and Other Liabilities and Contract Liabilities (as of June 30) | Item | 2025 (HKD '000) | December 31, 2024 (HKD '000) | Change (%) | | :--- | :--- | :--- | :--- | | Trade and bills payables | 5,299,129 | 5,611,573 | -5.6 | | Accruals, other payables and other liabilities | 5,481,053 | 5,685,071 | -3.6 | | Contract liabilities | 1,123,595 | 1,339,525 | -16.1 | | Amounts due to fellow subsidiaries | 507,903 | 295,415 | +72.0 | | Current portion | 11,390,251 | 12,094,358 | -5.8 | - Of the trade and bills payables, **99.9%** (HKD **5,297,002 thousand**) are due for settlement within three months[55](index=55&type=chunk) [Bank and Other Borrowings](index=32&type=section&id=Bank%20and%20Other%20Borrowings) Total bank and other borrowings decreased, with a notable reduction in current borrowings. Most borrowings are RMB-denominated and some are secured Total Bank and Other Borrowings (as of June 30) | Item | 2025 (HKD '000) | December 31, 2024 (HKD '000) | Change (%) | | :--- | :--- | :--- | :--- | | Current borrowings | 4,923,655 | 7,330,175 | -32.8 | | Non-current borrowings | 16,253,676 | 16,531,830 | -1.7 | | Total bank and other borrowings | 21,177,331 | 23,862,005 | -11.3 | - Approximately **83.0%** of bank and other borrowings are denominated in RMB, with the remainder in HKD[59](index=59&type=chunk) - **79%** equity interest in a subsidiary has been pledged to secure bank loans amounting to HKD **657,960 thousand**[59](index=59&type=chunk) [Share Capital and Reserves](index=33&type=section&id=Share%20Capital%20and%20Reserves) The company's issued and fully paid share capital remained unchanged, with details of reserve movements presented in the condensed consolidated statement of changes in equity Share Capital Information (as of June 30) | Item | 2025 (HKD '000) | December 31, 2024 (HKD '000) | | :--- | :--- | :--- | | Number of issued and fully paid ordinary shares | 6,537,821,440 | 6,537,821,440 | | Amount of share capital | 8,966,177 | 8,966,177 | - The Group's reserves and their movements are presented in the condensed consolidated statement of changes in equity[58](index=58&type=chunk) [Financial Instruments by Category](index=34&type=section&id=Financial%20Instruments%20by%20Category) The Group's financial assets and liabilities are measured at fair value through other comprehensive income or amortized cost, with total amounts increasing, but assets and liabilities classified as held for distribution have been removed Total Financial Assets (as of June 30) | Item | 2025 (HKD '000) | December 31, 2024 (HKD '000) | | :--- | :--- | :--- | | Equity investments at fair value through other comprehensive income | 16,997 | 16,738 | | Financial assets measured at amortized cost | 41,139,910 | 39,171,047 | | Total financial assets | 41,156,907 | 39,187,785 | Total Financial Liabilities (as of June 30) | Item | 2025 (HKD '000) | December 31, 2024 (HKD '000) | | :--- | :--- | :--- | | Financial liabilities included in trade and other payables, accruals and other liabilities | 9,628,300 | 9,888,517 | | Bank and other borrowings | 21,177,331 | 23,862,005 | | Lease liabilities | 340,133 | 379,134 | | Dividends payable | 475,300 | – | | Total financial liabilities | 32,029,132 | 34,552,271 | - Assets and liabilities classified as held for distribution as of December 31, 2024, were removed this period, impacting comparative figures[61](index=61&type=chunk)[62](index=62&type=chunk) [Fair Value Hierarchy of Financial Instruments](index=37&type=section&id=Fair%20Value%20Hierarchy%20of%20Financial%20Instruments) Management assesses that the fair value of most financial instruments does not materially differ from their carrying amounts, while fair value of unlisted equity investments is estimated using market-based valuation methods - The fair value of most financial instruments does not materially differ from their carrying amounts due to their immediate or short-term maturities[63](index=63&type=chunk) - The fair value of unlisted equity investments is estimated using market-based valuation methods, based on the assumption of no observable market prices or market rental values[64](index=64&type=chunk) [Commitments](index=38&type=section&id=Commitments) The Group has capital commitments for property, plant and equipment, investment properties, intangible assets, and properties under development, and is involved in the Xinghua and Yinping PPP projects Capital Commitments (as of June 30) | Type of Commitment | 2025 (HKD '000) | December 31, 2024 (HKD '000) | | :--- | :--- | :--- | | Relating to property, plant and equipment, investment properties, intangible assets and properties under development | 2,592,600 | 8,861,296 | | Relating to contributions payable to an associate and an unlisted equity investment | 31,607 | 41,817 | | Relating to project financing payable to an associate | 1,725,790 | 1,699,508 | - The Yinping PPP project's cumulative construction costs are approximately RMB **2.09 billion** (approximately HKD **2.291 billion**)[65](index=65&type=chunk) [Discontinued Operations](index=39&type=section&id=Discontinued%20Operations) Yuehai Land was classified as a discontinued operation on January 21, 2025, due to an in-specie distribution. It recorded a loss but positive cash flow for the period from January 1 to January 21, 2025 - Yuehai Land, primarily engaged in property development and investment, ceased to be a subsidiary of the Company after the distribution was completed on January 21, 2025[68](index=68&type=chunk) Results from Discontinued Operations (for the period ended January 21, 2025) | Metric | January 1 to January 21, 2025 (HKD '000) | Six months ended June 30, 2024 (HKD '000) | | :--- | :--- | :--- | | Revenue | 251,831 | 2,803,824 | | Gross Profit | 27,057 | 161,550 | | Loss before tax | (12,063) | (184,735) | | Loss for the period | (21,267) | (118,025) | Cash Flows from Discontinued Operations (for the period ended January 21, 2025) | Item | January 1 to January 21, 2025 (HKD '000) | Six months ended June 30, 2024 (HKD '000) | | :--- | :--- | :--- | | Cash flows from operating activities | 267,758 | 1,291,772 | | Cash flows from/(used in) investing activities | 260 | (3,189) | | Cash flows from/(used in) financing activities | 537,478 | (1,086,346) | | Net cash flows | 805,496 | 202,237 | [Contingent Liabilities](index=42&type=section&id=Contingent%20Liabilities) The Group provides guarantees to certain banks for mortgage loans of buyers of sold properties, with the guaranteed amount significantly reduced - As of June 30, 2025, the Group's outstanding guarantees amounted to HKD **1,007 thousand**, a significant decrease from HKD **4,714,446 thousand** as of December 31, 2024[73](index=73&type=chunk) - The guarantee period extends from the date of mortgage loan grant until the issuance of the property ownership certificate[73](index=73&type=chunk) [Related Party Transactions](index=42&type=section&id=Related%20Party%20Transactions) The Group engages in various related party transactions, including rental income, water resources-related income, dividend distributions, interest expenses and income, electricity sales, consulting fees, property management fees, and hotel management fees, with outstanding balances Major Related Party Transactions (for the six months ended June 30) | Type of Transaction | 2025 (HKD '000) | 2024 (HKD '000) | | :--- | :--- | :--- | | Rental income from certain subsidiaries of Guangdong Holdings and Hong Kong (Holdings) | 21,356 | 16,511 | | Water resources related income from fellow subsidiaries and associates | 98,708 | 66,900 | | Special dividend of Yuehai Land shares distributed in-specie to Hong Kong (Holdings) and certain of its subsidiaries | 1,360,522 | – | | Dividends paid and payable by the Company to Hong Kong (Holdings) and certain of its subsidiaries | 276,932 | 465,425 | | Interest expense to Guangdong Holdings | 8,314 | 55,597 | | Loans from fellow subsidiaries | 2,353,088 | 2,570,889 | | Loans from an associate | – | 917,915 | - Total key management personnel remuneration decreased from HKD **5,844 thousand** in 2024 to HKD **3,140 thousand** in 2025[81](index=81&type=chunk) [Capital Expenditure](index=47&type=section&id=Capital%20Expenditure) For the six months ended June 30, 2025, the Group's total capital expenditure was approximately HKD 557,092 thousand, primarily for additions to property, plant and equipment, right-of-use assets, and operating concessions Total Capital Expenditure (for the six months ended June 30) | Item | 2025 (HKD '000) | 2024 (HKD '000) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Total capital expenditure | 557,092 | 351,969 | +58.3 | - Capital expenditure primarily relates to additions to property, plant and equipment, right-of-use assets, and operating concessions[82](index=82&type=chunk) [Management Discussion and Analysis](index=48&type=section&id=Management%20Discussion%20and%20Analysis) This section provides management's perspective on the Group's financial performance, business operations, and future outlook [Results and Interim Dividend](index=48&type=section&id=Results%20and%20Interim%20Dividend) Consolidated profit attributable to owners of the Company increased by 11.2% year-on-year to HKD 2.682 billion, with basic earnings per share at HKD 41.02 cents. The Board declared an interim dividend of HKD 26.66 cents per share Performance and Dividend Overview (for the six months ended June 30) | Metric | 2025 | 2024 | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Consolidated profit attributable to owners of the Company | HKD 2.682 billion | HKD 2.411 billion | +11.2 | | Basic earnings per share | HKD 41.02 cents | HKD 36.88 cents | +11.2 | | Interim dividend | HKD 26.66 cents per share | HKD 23.97 cents per share | +11.2 | [Financial Review](index=48&type=section&id=Financial%20Review) Consolidated revenue from continuing operations slightly decreased this period, but profit before tax grew due to finance cost savings. Total assets declined due to the disposal of Yuehai Land, while equity attributable to owners of the Company increased Key Financial Review Data (as of June 30) | Metric | 2025 (HKD billion) | 2024 (HKD billion) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Consolidated revenue from continuing operations | 94.28 | 94.87 | -0.6 | | Consolidated profit before tax from continuing operations | 41.05 | 38.49 | +6.7 | | Net finance costs from continuing operations | 1.88 | 3.89 | -51.7 | | Total assets | 970.97 | 1,355.95 | -28.3 (primarily due to Yuehai Land disposal) | | Equity attributable to owners of the Company | 421.78 | 416.58 | +1.2 | - Net loss from fair value adjustments on investment properties from continuing operations decreased from HKD **61 million** in 2024 to HKD **3 million** in 2025[86](index=86&type=chunk) - The **1.4%** depreciation of RMB against HKD impacted financial performance[86](index=86&type=chunk) [Business Review](index=48&type=section&id=Business%20Review) The Group's major business segments showed mixed performance, with stable contributions from water resources, increased property investment income, decreased department store revenue but a swing to profit before tax, increased hotel revenue but decreased profit before tax, increased power sales from energy projects, and decreased revenue from roads and bridges [Water Resources](index=48&type=section&id=Water%20Resources) The Dongjiang-Shenzhen Water Supply project remains the primary profit contributor, with increased revenue from Hong Kong supply but decreased revenue from Shenzhen and Dongguan supply. Other water resources projects saw increased revenue and successful new bids Key Data for Dongjiang-Shenzhen Water Supply Project (for the six months ended June 30) | Metric | 2025 | 2024 | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Total water supply volume | 1.147 billion tonnes | 1.159 billion tonnes | -1.0 | | Total revenue | HKD 3.506 billion | HKD 3.485 billion | +0.6 | | Revenue from water supply to Hong Kong | HKD 2.869 billion | HKD 2.802 billion | +2.4 | | Revenue from water supply to Shenzhen and Dongguan | HKD 0.637 billion | HKD 0.683 billion | -6.7 | | Profit before tax (excluding exchange differences and net finance costs) | HKD 2.396 billion | HKD 2.325 billion | +3.1 | - Under the 2024-2026 Hong Kong water supply agreement signed on December 27, 2023, the basic water price for 2025 is HKD **5,259,000,000**[89](index=89&type=chunk) - During the period, the Group successfully bid for a new water resources project in Maoming City, Guangdong Province, with a total designed sewage treatment capacity of **194,000 tonnes per day** and an estimated total investment of approximately RMB **400 million**[91](index=91&type=chunk) [Property Investment](index=53&type=section&id=Property%20Investment) Yuehai Teemall's property investment business in Mainland China saw increased revenue and profit before tax, driven by higher average rental rates and occupancy. Hong Kong Yuehai Investment Tower's revenue slightly decreased Yuehai Teemall Property Investment Business Revenue (for the six months ended June 30) | Property | 2025 Revenue (HKD '000) | 2024 Revenue (HKD '000) | Change (%) | Average Occupancy Rate (2025) | | :--- | :--- | :--- | :--- | :--- | | Teemall Plaza - Teemall Shopping Centre | 352,146 | 349,486 | +0.8 | 99.5% | | Panyu Teemall Shopping Centre | 139,411 | 120,017 | +16.2 | 95.5% | | Tianjin Teemall Shopping Centre | 144,924 | 140,127 | +3.4 | 95.8% | | Shenzhen Teemall | 47,457 | 32,088 | +47.9 | 93.4% | | Total | 821,509 | 793,223 | +3.6 | | - Profit before tax from Yuehai Teemall's property investment business (excluding fair value changes of investment properties and net interest income) increased by **9.7%** to HKD **491,600 thousand**[95](index=95&type=chunk) - Hong Kong Yuehai Investment Tower's average occupancy rate was **93.3%**, with total revenue decreasing by **3.0%** to HKD **23,852 thousand**[97](index=97&type=chunk) [Department Store Operations](index=54&type=section&id=Department%20Store%20Operations) Total department store operations revenue significantly decreased by 44.4%, but profit before tax grew, primarily due to cost control and the closure of the Huadu store Department Store Operations Revenue (for the six months ended June 30) | Department Store | 2025 Revenue (HKD '000) | 2024 Revenue (HKD '000) | Change (%) | | :--- | :--- | :--- | :--- | | Teemall Department Store | 156,746 | 309,523 | -49.4 | | Wanbo Department Store | 19,687 | 23,134 | -14.9 | | Dongpu Department Store | 20,320 | 25,045 | -18.9 | | Aoti Department Store | 19,654 | 20,892 | -5.9 | | Huadu Store (ceased operations in November 2024) | – | 10,956 | -100.0 | | Total Revenue | 216,529 | 389,592 | -44.4 | - Profit before tax from department store operations (excluding fair value changes of investment properties) increased by **18.5%** to HKD **45,828 thousand**[98](index=98&type=chunk) [Hotel Holding, Operation and Management](index=55&type=section&id=Hotel%20Holding,%20Operation%20and%20Management) Hotel holding, operation, and management business revenue grew by 6.8%, but profit before tax decreased by 19.8%, despite improvements in average room rates and occupancy Key Hotel Business Data (for the six months ended June 30) | Metric | 2025 | 2024 | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Total revenue | HKD 336,542 thousand | HKD 315,188 thousand | +6.8 | | Profit before tax (excluding fair value changes of investment properties and net exchange differences) | HKD 51,058 thousand | HKD 63,655 thousand | -19.8 | | Average room rate of Guangdong Hotel Sheraton | HKD 1,257 | HKD 1,291 | -2.6 | | Average room rate of other six hotels | HKD 725 | HKD 698 | +3.9 | | Average occupancy rate of Guangdong Hotel Sheraton | 93.8% | 93.4% | +0.4pp | | Average occupancy rate of other six hotels | 72.8% | 68.3% | +4.5pp | - The Group manages **17** hotels, of which **7** are self-operated, and leased the property at 181 Connaught Road West, Hong Kong, in Q4 2024 to operate Guangdong Hotel 181[100](index=100&type=chunk) [Energy Projects](index=55&type=section&id=Energy%20Projects) Guangdong Energy project saw increased electricity sales and profit before tax. Guangdong Electric Jinghai Power Generation experienced decreased electricity sales and revenue, leading to a reduced share of profit for the Group Key Energy Project Data (for the six months ended June 30) | Project | Metric | 2025 | 2024 | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | :--- | | Guangdong Energy | Electricity sales volume | 1.679 billion kWh | 1.362 billion kWh | +23.3 | | | Revenue from electricity sales and related businesses | HKD 769,657 thousand | HKD 804,563 thousand | -4.3 | | | Profit before tax (excluding net finance costs) | HKD 91,177 thousand | HKD 74,338 thousand | +22.7 | | Guangdong Electric Jinghai Power Generation | Electricity sales volume | 6.216 billion kWh | 6.867 billion kWh | -9.5 | | | Revenue | HKD 2,402,480 thousand | HKD 3,255,091 thousand | -26.2 | | | Share of profit of the Group | HKD 18,264 thousand | HKD 54,800 thousand | -66.7 | - The decrease in Guangdong Energy project revenue was a combined effect of increased electricity sales volume, lower electricity prices, and the depreciation of RMB against HKD[102](index=102&type=chunk) [Roads and Bridges](index=56&type=section&id=Roads%20and%20Bridges) Xingliu Expressway experienced decreased average daily toll traffic and toll revenue, leading to reduced profit before tax. Yinping project's combined interest, management, and maintenance fees increased, resulting in higher profit before tax Key Roads and Bridges Business Data (for the six months ended June 30) | Project | Metric | 2025 | 2024 | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | :--- | | Xingliu Expressway | Average daily toll traffic volume | 24,457 vehicles | 26,954 vehicles | -9.3 | | | Toll revenue | HKD 289,948 thousand | HKD 312,881 thousand | -7.3 | | | Profit before tax (excluding net finance costs) | HKD 147,110 thousand | HKD 161,899 thousand | -9.1 | | Yinping Project | Total interest, management and maintenance fees | HKD 80,750 thousand | HKD 77,486 thousand | +4.2 | | | Profit before tax | HKD 68,984 thousand | HKD 65,726 thousand | +5.0 | - The Yinping project's cumulative construction costs are approximately RMB **2.09 billion** (approximately HKD **2.291 billion**), with four project roads completed and one under construction[105](index=105&type=chunk) [Discontinued Operations](index=57&type=section&id=Discontinued%20Operations) Yuehai Land ceased to be a subsidiary after its in-specie distribution on January 21, 2025. Its revenue significantly decreased during January 1-21, 2025, but its loss before tax narrowed considerably Key Data for Yuehai Land Discontinued Operations (for the period ended January 21, 2025) | Metric | January 1 to January 21, 2025 | Six months ended June 30, 2024 | | :--- | :--- | :--- | | Revenue | HKD 251,831 thousand | HKD 2,803,824 thousand | | Revenue from property sales | HKD 247,894 thousand | HKD 2,778,718 thousand | | Loss before tax | HKD 9,516 thousand | HKD 282,564 thousand | | Profit/(loss) before tax excluding fair value changes of investment properties and net finance costs | HKD 13,454 thousand | HKD (105,005) thousand | - Yuehai Land's loss before tax for the period ended January 21, 2025, was HKD **9,516 thousand**, a significant reduction from the prior period[108](index=108&type=chunk) [Other Financial Assets Measured at Amortized Cost](index=57&type=section&id=Other%20Financial%20Assets%20Measured%20at%20Amortized%20Cost) The Group's other financial assets measured at amortized cost amount to HKD 3.478 billion, primarily RMB deposits with licensed banks in China maturing within three years Other Financial Assets Measured at Amortized Cost (as of June 30) | Metric | 2025 (HKD billion) | December 31, 2024 (HKD billion) | | :--- | :--- | :--- | | Other financial assets | 34.78 | 33.85 | - These assets are denominated in RMB, will mature within three years, and are principal-protected[109](index=109&type=chunk) [Liquidity, Gearing Ratio and Financial Resources](index=57&type=section&id=Liquidity,%20Gearing%20Ratio%20and%20Financial%20Resources) The Group's cash and bank balances from continuing operations slightly decreased, total financial borrowings declined, gearing ratio and debt service coverage remained robust, and operating cash flow was sufficient Key Liquidity and Financial Resources Data (as of June 30) | Metric | 2025 (HKD billion) | December 31, 2024 (HKD billion) | Change (%) | | :--- | :--- | :--- | :--- | | Cash and bank balances | 120.36 | 121.54 | -1.0 | | Total financial borrowings | 211.77 | 238.62 | -11.3 | | Credit facilities | 94.73 | 93.49 | +1.3 | | Gearing ratio | 24.7% | 30.9% | -6.2pp | | EBITDA/finance costs incurred ratio | 16.2 times | 10.5 times | +5.7 times | | Net cash inflow from operating activities | 33.39 | 48.76 | -31.5 | - Of the financial borrowings from continuing operations, **83.0%** are RMB-denominated and **17.0%** are HKD-denominated[110](index=110&type=chunk) - The interest rate structure of financial borrowings comprises **95.4%** floating-rate borrowings, **3.7%** fixed-rate borrowings, and **0.9%** non-interest-bearing borrowings[110](index=110&type=chunk) [Pledge of Assets and Contingent Liabilities](index=58&type=section&id=Pledge%20of%20Assets%20and%20Contingent%20Liabilities) Portions of the Group's service concession arrangement revenue rights and subsidiary equity have been pledged, and contingent liabilities primarily consist of mortgage loan guarantees for sold properties, with a significantly reduced amount - Revenue rights from certain water supply, sewage treatment, and toll road service concession arrangements were pledged to secure bank and other borrowings of HKD **12.449 billion**[112](index=112&type=chunk) - The Group provided guarantees to certain banks for mortgage loans of sold properties, amounting to HKD **1 million**, a significant decrease from HKD **4.714 billion** at the end of last year[112](index=112&type=chunk) [Capital Expenditure](index=58&type=section&id=Capital%20Expenditure) Total capital expenditure for the period was HKD 566 million, primarily for additions to property, plant and equipment, leased land, and the construction of water supply and sewage treatment plants Capital Expenditure (for the six months ended June 30) | Metric | 2025 (HKD billion) | 2024 (HKD billion) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Total capital expenditure | 5.66 | 4.45 | +27.2 | - Capital expenditure was primarily for additions to property, plant and equipment, leased land, and construction costs of water supply and sewage treatment plants[113](index=113&type=chunk) [Exchange Rate and Interest Rate Fluctuation Risks and Related Hedging](index=59&type=section&id=Exchange%20Rate%20and%20Interest%20Rate%20Fluctuation%20Risks%20and%20Related%20Hedging) The Group faces RMB exchange rate fluctuations and interest rate risks from floating-rate borrowings, but currently manages these through natural hedging mechanisms and dynamic monitoring rather than derivative financial instruments - RMB-denominated borrowings from continuing operations totaled HKD **17.571 billion**, posing exchange rate risk[114](index=114&type=chunk) - The Group employs natural hedging mechanisms and dynamically monitors foreign exchange exposure, but does not use derivative financial instruments for hedging[114](index=114&type=chunk) - Floating-rate borrowings from continuing operations totaled HKD **20.193 billion**, exposing the Group to interest rate risk, but no interest rate hedging instruments are used[114](index=114&type=chunk) [Principal Risks and Uncertainties](index=59&type=section&id=Principal%20Risks%20and%20Uncertainties) The Group faces multiple risks, including macroeconomic, foreign exchange, market competition, and project safety management, with corresponding control strategies in place [Macroeconomic Risks](index=59&type=section&id=Macroeconomic%20Risks) International trade barriers and geopolitical conflicts increase economic recovery uncertainty, while the domestic economy remains stable, prompting the company to closely monitor macroeconomic conditions and adjust development strategies - Internationally, factors such as US tariff policies and escalating geopolitical conflicts increase uncertainty regarding the economic recovery outlook[115](index=115&type=chunk) - Domestically, the macroeconomic environment generally maintains a long-term trend of stable and progressive development[115](index=115&type=chunk) [Foreign Exchange Risk](index=59&type=section&id=Foreign%20Exchange%20Risk) With primary operations in China, the company faces exchange rate fluctuation risks, including translation gains/losses and net asset value translation risk, managed by optimizing fund arrangements and adjusting financing methods - The Company faces risks of exchange gains and losses due to exchange rate fluctuations and foreign currency translation risk for net asset values of projects invested in Mainland China[116](index=116&type=chunk) - The Company manages foreign exchange risk through multiple channels, including optimizing existing fund arrangements and adjusting project financing methods[116](index=116&type=chunk) [Market Competition Risk](index=59&type=section&id=Market%20Competition%20Risk) Intensified market competition may reduce expansion capabilities and project investment returns, which the company addresses by optimizing products, enhancing efficiency, strengthening management, and cutting costs to boost profitability - The Company actively explores new revenue streams and saves operating costs by optimizing products, enhancing efficiency, strengthening project management teams, and implementing refined management measures[117](index=117&type=chunk) [Project Safety Management Risk](index=60&type=section&id=Project%20Safety%20Management%20Risk) Project safety management encompasses product and operational personnel safety risks, which the company effectively controls through standardized management, quality control, regular inspections, a safety responsibility system, and employee training - The Company standardizes, streamlines, and institutionalizes relevant risk management and control efforts, strengthens quality management at the source, and conducts regular inspections of production and operation sites[118](index=118&type=chunk) - All investment projects under the Company have established a comprehensive safety responsibility system covering all employees, clarifying responsibilities and divisions of labor, and conducting regular safety training for employees[118](index=118&type=chunk) [Number of Employees and Remuneration Policy](index=60&type=section&id=Number%20of%20Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had 10,180 employees, with a remuneration policy designed to ensure market competitiveness and performance linkage, while emphasizing employee training to enhance overall quality and professional capabilities Number of Employees and Total Remuneration (as of June 30) | Metric | 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total number of employees | 10,180 people | 10,759 people | | Total remuneration for continuing operations | HKD 752,598 thousand | HKD 828,537 thousand | - The remuneration policy includes fixed salaries, discretionary incentives, insurance, and benefits, determined based on employee qualifications, experience, job responsibilities, performance, and market conditions[119](index=119&type=chunk) - The Group aims to build a learning organization, providing multi-dimensional professional training to enhance employees' overall quality, compliance awareness, and professional capabilities[120](index=120&type=chunk) [Review and Outlook](index=61&type=section&id=Review%20and%20Outlook) In H1 2025, the global economy faced challenges, while China's economy showed resilience. Looking ahead to H2, with increased global economic downside risks, the Group will adhere to a "seek progress while maintaining stability, improve quality and efficiency" strategy, consolidating core businesses, expanding into high-value-added areas, and seizing Greater Bay Area development opportunities - Since 2025, persistent geopolitical tensions, rising tariffs, and trade policy uncertainties have pressured global economic recovery[121](index=121&type=chunk) - The Group will continue to focus resources on extending the water resources segment into high-value-added areas, promoting business structure transformation and upgrading[122](index=122&type=chunk) - The Group will proactively seize potential development opportunities arising from the "Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area" and actively explore relevant market investment and M&A opportunities[122](index=122&type=chunk) [Directors' Securities Interests and Short Positions](index=62&type=section&id=Directors'%20Securities%20Interests%20and%20Short%20Positions) This section details the interests and short positions of the company's directors in the securities of the company and its associated corporations [Directors' Interests in the Company and Associated Corporations](index=62&type=section&id=Directors'%20Interests%20in%20the%20Company%20and%20Associated%20Corporations) As of June 30, 2025, certain directors held long positions in ordinary shares of the Company, Yuehai Land Holdings Limited, and Guangdong Guangnan (Holdings) Limited Directors' Interests in Ordinary Shares of the Company (as of June 30) | Name of Director | Capacity/Nature of Interest | Number of Ordinary Shares Held | Long/Short Position | Approximate Percentage of Interest | | :--- | :--- | :--- | :--- | :--- | | Chan Cho Chak | Personal | 5,450,000 | Long Position | 0.083% | | Cheng Mo Chi | Personal | 2,268,000 | Long Position | 0.035% | Directors' Interests in Ordinary Shares of Yuehai Land Holdings Limited (as of June 30) | Name of Director | Capacity/Nature of Interest | Number of Ordinary Shares Held | Long/Short Position | Approximate Percentage of Interest | | :--- | :--- | :--- | :--- | :--- | | Chan Cho Chak | Personal | 1,051,850 | Long Position | 0.061% | | Cheng Mo Chi | Personal | 1,037,724 | Long Position | 0.061% | Directors' Interests in Ordinary Shares of Guangdong Guangnan (Holdings) Limited (as of June 30) | Name of Director | Capacity/Nature of Interest | Number of Ordinary Shares Held | Long/Short Position | Approximate Percentage of Interest | | :--- | :--- | :--- | :--- | :--- | | Tsang Hon Nam | Personal | 300,000 | Long Position | 0.033% | [Major Shareholders' and Other Persons' Interests](index=63&type=section&id=Major%20Shareholders'%20and%20Other%20Persons'%20Interests) This section outlines the interests of major shareholders and other relevant parties in the company's shares [Major Shareholders' Interests in Shares of the Company](index=63&type=section&id=Major%20Shareholders'%20Interests%20in%20Shares%20of%20the%20Company) As of June 30, 2025, Guangdong Holdings Limited and its wholly-owned subsidiary, Hong Kong (Holdings), were major shareholders of the Company, holding 58.26% of the shares Major Shareholders' Interests in Ordinary Shares of the Company (as of June 30) | Name of Shareholder | Capacity/Nature of Interest | Number of Ordinary Shares Held | Long/Short Position | Approximate Percentage of Interest | | :--- | :--- | :--- | :--- | :--- | | Guangdong Holdings Limited | Interest of controlled corporation | 3,809,237,546 | Long Position | 58.26% | | Guangdong Holdings Limited (Hong Kong (Holdings)) | Beneficial owner | 3,809,237,546 | Long Position | 58.26% | - Guangdong Holdings Limited holds its attributable interest in the Company through its direct wholly-owned subsidiary, Hong Kong (Holdings)[127](index=127&type=chunk) [Corporate Governance and Other Information](index=64&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section covers the company's adherence to corporate governance codes, changes in director information, review of interim results, securities transactions, loan financing disclosures, and interim dividend announcements [Corporate Governance Code and Directors' Securities Transactions](index=64&type=section&id=Corporate%20Governance%20Code%20and%20Directors'%20Securities%20Transactions) The Company consistently complied with the Corporate Governance Code's provisions during the reporting period and required directors to adhere to the Model Code for Securities Transactions by Directors of Listed Issuers - The Company has complied with the code provisions of the Corporate Governance Code throughout the six months ended June 30, 2025[128](index=128&type=chunk) - All Directors confirmed their compliance with the required standards of dealing as set out in the Model Code for Securities Transactions by Directors of Listed Issuers during the period[129](index=129&type=chunk) [Changes in Directors' Information and Interim Results Review](index=64&type=section&id=Changes%20in%20Directors'%20Information%20and%20Interim%20Results%20Review) Dr. Cheng Mo Chi was appointed Chairman of the Hong Kong Maritime and Port Board. The Audit Committee reviewed the interim financial report, which was also reviewed by KPMG - Dr. Cheng Mo Chi was appointed Chairman of the Hong Kong Maritime and Port Board by the Government of the Hong Kong Special Administrative Region[130](index=130&type=chunk) - The Audit Committee has reviewed the Group's unaudited interim financial report for the six months ended June 30, 2025, which was also reviewed by KPMG[131](index=131&type=chunk) [Listed Securities Transactions and Loan Financing Disclosure](index=64&type=section&id=Listed%20Securities%20Transactions%20and%20Loan%20Financing%20Disclosure) Neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities during the period. The company disclosed two loan facilities, both with covenants regarding the Guangdong Provincial Government's ultimate control over Hong Kong (Holdings) and Hong Kong (Holdings)'s equity interest in the Company - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities on The Stock Exchange of Hong Kong Limited during the six months ended June 30, 2025[132](index=132&type=chunk) - The Company accepted term loan facilities of HKD **3 billion** and HKD **2 billion** on September 4 and October 8, 2024, respectively, with covenants that Hong Kong (Holdings) will not cease to be ultimately controlled by and majority-owned by the Guangdong Provincial Government, and Hong Kong (Holdings) will not cease to directly and/or indirectly beneficially own at least **51%** of the Company's equity interest[133](index=133&type=chunk)[136](index=136&type=chunk) Outstanding Principal of Loan Facilities (as of June 30) | Loan Facility | Outstanding Principal (HKD billion) | | :--- | :--- | | September 2024 Loan Facility | 16.70 | | October 2024 Loan Facility | 19.30 | [Interim Dividend and Share Transfer Registration](index=65&type=section&id=Interim%20Dividend%20and%20Share%20Transfer%20Registration) The Board declared an interim dividend of HKD 26.66 cents per ordinary share for the six months ended June 30, 2025, and share transfer registration will be suspended on October 10, 2025 - The Board resolved to declare an interim dividend of HKD **26.66 cents** per ordinary share for the six months ended June 30, 2025[138](index=138&type=chunk) - The interim dividend is expected to be paid around October 23, 2025, and share transfer registration will be suspended on October 10, 2025[138](index=138&type=chunk)[139](index=139&type=chunk)

Group 1 - Southbound funds reduced their holdings in Yuehai Investment (00270.HK) by 5.502 million shares on September 19, 2025, marking a decrease of 1.08% [1][2] - Over the past five trading days, southbound funds have reduced their holdings for five consecutive days, with a total net reduction of 14.162 million shares [1][2] - In the last 20 trading days, there have been 16 days of reductions, totaling a net decrease of 47.276 million shares [1][2] Group 2 - As of now, southbound funds hold 504 million shares of Yuehai Investment, which represents 7.7% of the company's total issued ordinary shares [1][2] - Yuehai Investment Co., Ltd. primarily engages in water supply and wastewater treatment as an investment holding company, operating through seven divisions [2] - The company's divisions include water resources, property investment and development, department store operations, power generation, hotel management, and toll road operations [2]

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 II. 已發行股份及/或庫存股份變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 00270 | 說明 | 不適用 | | | | | | | | 已發行股份（不包括庫存股份）數目 | | 庫存股份數目 | | 已發行股份總數 | | | 上月底結存 | | | 6,537,821,440 | | 0 | | 6,537,821,440 | | 增加 / 減少 (-) | | | | | | | | | 本月底結存 | | | 6,537,821,440 | | 0 | | 6,537,821,440 | 第 2 頁 共 10 頁 v 1.1.1 FF301 | 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: | 粤海投資有 ...

Core Viewpoint - The company reported a net profit of 2.682 billion HKD for H1 2025, representing an 11% year-on-year increase, primarily due to reduced financial expenses and a decrease in net losses from fair value adjustments of investment properties [1]. Financial Performance - The company achieved revenue of 9.428 billion HKD in H1 2025, a 1% decline year-on-year; however, net profit increased by 11% to 2.682 billion HKD [1]. - Financial expenses were significantly reduced by 201 million HKD to 188 million HKD, contributing to the profit increase [1]. - The fair value adjustment losses of investment properties decreased by 58 million HKD to 3 million HKD [1]. Dividend and Cash Flow - The company maintained a dividend payout ratio of 65%, with an interim dividend of 0.266 HKD per share [2]. - Net cash inflow from operating activities was 3.339 billion HKD, down from 4.876 billion HKD in the same period of 2024 [2]. - Capital expenditure increased to 566 million HKD from 445 million HKD in 2024 [2]. Business Segment Performance - Water supply projects generated revenue of 3.506 billion HKD, a 1% increase year-on-year, with a tax profit increase of 3% to 2.396 billion HKD [2]. - Other water resource businesses saw a 2% revenue increase to 3.680 billion HKD, but tax profit decreased by 6% to 1.079 billion HKD [2]. - Property management revenue rose by 4% to 822 million HKD, with a tax profit increase of 10% to 492 million HKD [2]. - Department store operations experienced a 44% revenue decline to 217 million HKD, while tax profit increased by 19% to 45.83 million HKD [3]. - Hotel management revenue grew by 7% to 337 million HKD, but tax profit fell by 20% to 51.06 million HKD [3]. - Energy business revenue decreased by 4% to 770 million HKD, while tax profit increased by 23% to 91.18 million HKD [3]. - Toll road business revenue declined by 7% to 290 million HKD, with tax profit down by 9% to 147 million HKD [3].

Investment Rating - The report maintains a rating of "Accumulate" for the company [7][11]. Core Insights - The company's net profit attributable to shareholders for H1 2025 was HKD 2.682 billion, representing a year-on-year increase of 11%. This profit growth was primarily driven by a reduction in financial expenses and a decrease in net losses from fair value adjustments of investment properties [2][11]. - The report forecasts net profits for 2025, 2026, and 2027 to be HKD 4.415 billion, HKD 4.533 billion, and HKD 4.663 billion, respectively, with corresponding EPS of HKD 0.68, HKD 0.69, and HKD 0.71 [11][12]. - The company achieved a revenue of HKD 9.428 billion in H1 2025, a slight decline of 1% year-on-year, while the net financial expenses decreased by HKD 201 million to HKD 188 million [11]. Financial Summary - Total revenue for 2023 was HKD 24.355 billion, with a projected decline to HKD 18.505 billion in 2024, followed by a slight decrease to HKD 18.080 billion in 2025. The revenue is expected to grow gradually to HKD 18.924 billion by 2027 [5][12]. - The gross profit for 2023 was HKD 10.075 billion, with projections of HKD 9.822 billion in 2024 and HKD 9.601 billion in 2025, indicating a steady gross margin [5][12]. - The company’s PE ratio is projected to be 10.5 in 2025, decreasing to 10.0 by 2027, while the PB ratio is expected to remain stable around 1.07 to 1.00 during the same period [5][12]. Business Performance - The water supply segment, particularly the Dongshen project, generated revenue of HKD 3.506 billion, a 1% increase year-on-year, while the water supply volume decreased by 1% [11]. - The property management segment saw a revenue increase of 4% to HKD 822 million, attributed to improved rental levels and occupancy rates [11]. - The retail operations experienced a significant decline, with revenue dropping 44% to HKD 217 million, although the pre-tax profit increased by 19% to HKD 45.83 million [11].

Core Viewpoint - The article highlights that Yuehai Investment (00270.HK) has demonstrated strong growth and resilience in its mid-2025 financial report, focusing on its core business and enhancing its competitive moat despite a complex macroeconomic environment [1][15]. Financial Performance - In the first half of 2025, Yuehai Investment achieved an unaudited net profit attributable to shareholders of HKD 26.82 billion, representing a year-on-year growth of 11.2% [4]. - The company's diversified business model, including water resources, property investment, energy, and transportation, contributed to its stable performance [4][12]. Core Business Segments - **Water Resources**: The East Shenzhen Water Supply Project generated a pre-tax profit of HKD 23.96 billion, up 3.1% year-on-year. Other water projects also saw a revenue increase of 2.3% to HKD 36.80 billion, with a pre-tax profit of HKD 10.79 billion [6]. - **Property Investment**: The property investment segment, including Yuehai Tianhe City, reported a revenue increase of 3.6% to HKD 8.22 billion, with a pre-tax profit of HKD 4.92 billion, up 9.7% [8]. - **Energy Projects**: The energy segment maintained stable revenue, with a pre-tax profit of HKD 91.18 million, reflecting a growth of 22.7% [9]. - **Road Operations**: Yuehai Expressway generated toll revenue of HKD 290 million, with a pre-tax profit of HKD 147 million [10]. - **Hotel Business**: The hotel segment achieved revenue of HKD 337 million, a year-on-year increase of 6.8% [10]. - **Department Store Business**: Revenue reached HKD 217 million, with a pre-tax profit growth of 18.5% to HKD 45.83 million [11]. Strategic Moves - The strategic divestment of Yuehai Land on January 21, 2025, significantly improved the company's financial fundamentals, reducing the capital debt ratio to 24.70%, down 6.2 percentage points from the end of 2024 [13]. - The company's financial borrowings decreased from HKD 238.62 billion at the end of 2024 to HKD 211.77 billion by mid-2025, indicating a healthier financial position [13][14]. Market Position and Outlook - Yuehai Investment is positioned as a defensive asset with a high dividend strategy, offering a dividend of HKD 0.2666 per share, a year-on-year increase of 11.2%, resulting in a dividend yield close to 5% [18]. - The company benefits from a monopoly advantage in the water resources and public utilities sector, supported by favorable policies, enhancing its market position [20]. - The market's perception of the company's "de-real estate" strategy is strengthening, with improved financial fundamentals likely to catalyze valuation reassessment [20]. Conclusion - Overall, Yuehai Investment's mid-2025 financial report reflects its focus on core business, solid performance across key segments, and strategic asset optimization, establishing a robust foundation for future growth [25].

Core Viewpoint - The mid-2025 financial report of Yuehai Investment (00270.HK) demonstrates strong growth momentum amid a complex macroeconomic environment, highlighting the company's unique value and long-term growth potential through key financial indicators and optimized business layout [1][3][25]. Financial Performance - Yuehai Investment achieved an unaudited net profit attributable to shareholders of HKD 2.682 billion, representing a year-on-year increase of 11.2%, driven by the collaborative performance of its core business segments [3][25]. - The company reported a significant improvement in its financial fundamentals following the spin-off of Yuehai Land, with a capital debt ratio of 24.7%, down 6.2 percentage points from the end of 2024 [14][15]. Core Business Segments - The water resources segment, a core business, generated stable revenue, with the Dongshen water supply project contributing a pre-tax profit of HKD 2.396 billion, up 3.1% year-on-year [5][6]. - The property investment segment saw a revenue increase of 3.6% to HKD 822 million, with a pre-tax profit of HKD 492 million, up 9.7% [7][13]. - The energy projects segment maintained stable revenue, achieving a pre-tax profit of HKD 91.177 million, a year-on-year increase of 22.7% [10][13]. - The highway operations generated toll revenue of HKD 290 million, with a pre-tax profit of HKD 147 million [11][13]. Strategic Developments - The strategic spin-off of Yuehai Land marks a significant adjustment in the company's business layout, allowing for a focused approach on core areas such as water resources [14][15]. - The optimization of the asset structure post-spin-off has led to a healthier financial status, enabling the company to better respond to market fluctuations and uncertainties [15]. Market Position and Outlook - Yuehai Investment is positioned as a defensive asset with a high dividend strategy, offering a dividend of HKD 0.2666 per share, a year-on-year increase of 11.2%, with a dividend yield close to 5% [18][26]. - The company benefits from a monopoly advantage in the water resources and public utilities sector, supported by favorable policies, enhancing its bargaining power and industry position [20][21]. - The market's perception of the company's "de-real estate" strategy is strengthening, with improved financial fundamentals likely to catalyze valuation reassessment [21][26].

August 2025 2025 FIRST HALF RESULTS REVIEW O U R B U S I N E S S 2025 First Half Results Review ~ Stock Code: 0270 F I N A N C I A L H I G H L I G H T S 1 The unaudited consolidated profit attributable to owners of the Company for 1H25 increased by 11.2% to HK$2,682 million and interim dividend per share increased by 11.2% to HK$26.66 cents. 2 The net finance costs from continuing operations was decreased by HK$201 million to HK$188 million and net loss arising from fair value adjustments for investment pro ...

Core Viewpoint - The company reported a slight decline in main business revenue but an increase in net profit, driven by growth in water resources and hotel businesses, alongside cost savings and currency exchange gains [1][4]. Revenue and Profit Summary - In H1 2025, the company achieved main business revenue of HKD 9.428 billion, a year-on-year decrease of 0.6%, while net profit attributable to shareholders was HKD 2.682 billion, an increase of 11.2% [1]. - The increase in net profit was primarily due to savings in financial expenses and exchange gains from the appreciation of the Renminbi [1]. Business Segment Performance - Water Resources Division: Contributed HKD 7.184 billion in revenue (up 0.6%), with mainland China water supply revenue at HKD 2.284 billion (up 3.7%) and Hong Kong water supply revenue at HKD 2.869 billion (up 2.4%) [1][2]. - Property Investment: Contributed HKD 124 million in revenue (up 10.6%) and segment profit of HKD 480 million (up 12.7%) [1]. - Department Store Operations: Revenue decreased by 45.5% to HKD 202 million, primarily due to a 49.4% drop in Tianhe City department store revenue [2]. - Hotel Division: Revenue increased by 7.4% to HKD 320 million, but segment profit decreased by 14.6% [2]. - Roads and Bridges Division: Revenue decreased by 6.9% to HKD 301 million, with segment profit down by 1.8% [2]. - Power Generation Division: Revenue decreased by 2.9% to HKD 611 million, while segment profit increased by 9.4% [2]. Water Resources Project Insights - The Dongshen Water Supply Project achieved revenue of HKD 3.506 billion (up 0.6%) and contributed a pre-tax profit of HKD 2.396 billion (up 3.1%) [2][3]. - Despite a slight decline in total water supply volume by 1.0% to 1.147 billion tons, the project demonstrated strong profitability due to effective market pricing mechanisms [3]. Financial Metrics and Dividends - The company maintained a dividend payout ratio of 65%, with an interim dividend of HKD 0.2666 per share, an increase of 11.22% [3]. - Operating cash flow decreased by 31.52% to HKD 3.339 billion, while capital expenditure increased by 27.19% to HKD 566 million [3]. - After the divestment of Yuehai Land, the capital debt ratio improved to 24.70%, with financial expenses reduced by HKD 201 million [4]. Profit Forecast and Investment Rating - The company maintains stable performance in the water sector and improved debt metrics post-divestment, with a forecasted net profit attributable to shareholders of HKD 4.274 billion, HKD 4.357 billion, and HKD 4.453 billion for 2025-2027, corresponding to PE ratios of 10.5, 10.3, and 10.1 times [4].

Core Viewpoint - The company operates in water supply and sewage treatment, with multiple business segments contributing to its revenue, including water resources, property investment, retail, power generation, hotel management, and toll road operations [9]. Revenue and Profit Growth - The company has shown fluctuations in revenue and net profit growth rates over the years, with a notable increase in revenue in 2023 compared to previous years [11][14]. - The revenue composition for the first half of 2025 indicates that water resources remain the largest segment, contributing 71.531 billion HKD, followed by property investment and power generation [15]. Financial Ratios - As of the first half of 2025, the company's average return on equity was 6.4%, an increase of 0.72 percentage points from the previous year [19]. - The company’s asset turnover ratio has shown variations, with a notable increase in 2025 compared to previous years [21]. Asset and Liability Changes - Significant changes in assets include a 100% decrease in assets classified as held for sale, while intangible assets decreased by 0.71% [25]. - On the liabilities side, long-term borrowings decreased by 1.68%, while deferred tax liabilities increased by 4.67% [28]. Liquidity Ratios - The company reported a current ratio of 1.18 and a quick ratio of 1.15 in the first half of 2025, indicating a stable liquidity position [31].